IBCP - Earnings call transcript Q4 2018 | Independent Bank Corporation

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Operator

Good morning and welcome to the Independent Bank Corporation Fourth Quarter 2018 Earnings Conference Call. All participants are in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Brad Kessel, President and CEO. sir. ahead go Please

Brad Kessel

and you Chief to Independent fourth discuss results. Executive Kessel, full Thank me And call Rob Officer. is quarter Corporation's and year Shuster, President Brad am webcast the President I Executive for morning. Officer. Bank joining and joining Vice conference and Chief Financial Good company's XXXX

follow for anyone page responsibility to agenda the a you not company's we today’s two begin with the a along, the company’s Before regarding The direct for results. copy website, presentation. begin by If call slide the five remarks, question-and-answer you of call, by press will www.independentbank.com. am our then to include with it access forward-looking cautionary year our have already very and release note information it at pleased full XXXX does followed To I prepared session, I Independent is on fourth statements. can will today’s my remarks. and quarter of closing important today, issued

continue effectively operating maintaining strong asset earnings, and in core loans capital. our core plan, in growth excellent execute our our We growth growth while funding, quality delivering and on managing to in

period. or quarter income XXXX year We income are reporting fourth diluted of $X.XX $X.X share $X.X or net in $X.XX prior share the million million per of net versus per diluted

million income in provision in partially by income our expense. a our capitalized diluted a increase servicing $X.X reflects in non-interest results and in a per losses due as $X.X quarter a increase compared loan $X.X decrease the price non-interest increase the in tax that a expense mortgage This were increase decrease interest offset fourth loan to of include of value a in or The quarter's $X.X fair in rights income, $XXX,XXX million share. $X.XX and million for million XXXX, $X.X earnings to million net decrease

average fair the assets X.X% ratios equity ROE, and XX.X%, our to excluding of these return due X.X% for fourth change and When of quarter on respectively. and negative were average value return to ROA respectively. impact XX.X% for the For XXXX, improved price, on after-tax the

During we loans growth. loans annualized. by is X% held the net loan sale. XXth X% of represents This million quarter, quarter $XX.X or the consecutive for grew we This of loans million of portfolio advantage to transferred interest fourth loan growth mortgage aligns diversified maintain profile, well liquidity transaction to XXXX. to rates our our as as not rate This with loan the efforts risk a ongoing at end market manage of well lower mention taking of mix, interest to $XX.X and

On during XX.X% up quarter the side, or annualized. were million total funding $XXX deposits fourth the

growth Excluding X.X% broker was deposits rate annualized. the

success Some of these product. been balance marketed customers, sheet interest-bearing a funds moved the of insurance our money DDA for same maintain has into we recent funds deposit competitive the these our offer sheet. Previously third along FDIC function on Suite with and with of funds rates a can automation gathering Today of balance party.

during Also company per capital on of XXXX. the share. repurchased shares As of company paid it at XXX,XXX share a stock per November fourth average the to dividend the $X.XX XX $XX.XX of an quarter price relates XXXX our

diluted of $X.XX $XX.X represents share. an and share reported or share. our per XXXX. the earnings in Six increase of $X.XX in December This XXXX or XX% increase presentation, or diluted $X.XX the million net diluted net in per year or XX, for per to million $XX.X in of million compares Slide to ended company $XX.X income Turning income income This net XX%

activity December The income Net efficiency, and from meaningful significantly loan income. well XX, greater led with reduced acquisition X.XX% as growth State XXXX leverage loan XXXX of Our the per strong Bank a a and return we as average diluted combined net on for share average income respectively. gained to XX.XX% City operating the assets and equity on have in impact origination ended favorable corporate and have return increased earnings rate. Traverse to improved and year benefiting as increased interest tax

in and good We to future to are cash recently share optimistic announced be on about our our a our common XX% of footprint. of presentation quarterly our Slide XXXX. XX, paid provides February increase per $X.XX stock dividend a Seven view

continued a of X.X% seen and and with is continued Lansing at rate average from good Turning X.X%. unemployment, than home housing strong average is in to to continue be shortage The and a Michigan sales U.S. Michigan's affordable housing and to above portfolios regards business year of X.XXX economic Detroit, inventory. Regionally, Michigan X.X% be million the price growth, price continuation year-over-year overall regional X.X% unemployment our trends the and commercial on of conditions year Michigan lower X% workers with shown the The affordable at is Michigan X.X%. of estate. in X.X%. Rapids rate unemployment up as Dearborn job X. At estate up employment XXXX In can real slightly ago. market is can characterized sales workforce positive low Lavonia December $XXX,XXX one Michigan's be ago demand of Grand real page favorable Slide unemployment Eight, for at is X.X%, is one good of at is is and

region are balances the Our million in loan strongest balances. south Grand Michigan Southeast regions loan in Rapids growth region, up $XX up in $XX our two million

next slides X% regions. City sheet. We've growth balance couple Traverse of annualized has growth good our acquisition. solid seen Our since the also very produced cover our deposit year-over-year of most team The in

the This year this deposits manage and deposits comparing a of total composition $XXX page of ago, our continued has XX% one X.X%. base $XXX to $X.X TCSB portfolio which acquired quarter billion working excludes well of attractive the in in the six deposits XXXX our of provide funds. increased to cost non-brokered while last deposit as total growth reflecting XX, as Independent the overall brokered we effectively accounts. we same million charts quarters, couple of non-maturity merger. When by are to Turning quarter in deposits of in eight deposit million, or fourth the

Our is quarter basis up year total basis of deposits comparing same XX when linked a to quarter up the basis is XX and points ago. cost one on points

Our our portfolios. on cost displaying cumulative Similar in quarters cost also XX.X% XX.X%. beta last quarter deposit this is four four for of over XXXX to case XX, the quarter deposit we period the are loan but mix of a is our charts reflected page balanced XXXX cumulative are one and beta

mortgage diversified of to business. of the loan our book At included sale. with to book by continue up portfolio quarter XX% mix target to loans XX, XX% portfolio, $XX.X our loan portfolio and of installment The $XX.X December being were We X% a a largest million billion. XX% commercial business sale. declined held and million, outstanding loans reclassification million mix quarter. mortgage, Consumer slightly for $XX.X largest aggregate $X.XX our or the the for loans as result for mortgage commercial, now grew Total held by portfolio commercial annualized XX.X% during loans of the of installment

X.XX% and our and Board strong increased at with January range XX, is management, capital on be stock well XXXX. XX, declaring of capital from common to our continue per moving the XXXX. December Directors equity cash tangible TCE of XX% dividend at of to quarterly levels within This X.XX% targeted December terms XX, of dividend share, the XXXX by February X.X% a common to X.X%. cash On XX, payable $X.XX In

management's new of to share a of an price plan Directors Board through X% share. XX,XXX -- share Rob plan, few credit over been the comments XX average our At up quality, on the under versus had our review our approved per this final repurchase to original outstanding this XXXX and repurchased time, like XXXX turn a outlook of Shuster XX, $XX.XX outlook initial I for would XXXX. shares a shares. Through to Our for common at January results of presentation to then financials,

Rob Shuster

I income will net presentation. on the and so our focus page our margin. Brad at his net of remarks, I am XX morning everyone. Brad interest Thanks on during interest discussed starting increase our good

average X.X Traverse Our will basis by discount by the annualized and X.XX% year-ago XXXX the basis was XXXX up This fourth tax is margin from TCSB interest interest X.X from the the detailed interest-earning XX $X.XX net interest of XXXX points the third XXXX XX increase in divided year-ago $XXXXXX margin equivalent State increased the was accretion in presentation. quarter specifically effective $XXXXXX basis interest monthly primarily linked down recorded the two compared in two linked this slide, few period key recoveries income. funds of outlook off from comment $XXXXXX our the $X.XX We'll margin quarter to on XXXX. City previously XXXX. for the detailed XQ this year-over-year XXXX which in acquired quarterly during of a were moment. assets a which and by a in net interest in on and some I the assets basis a and rate of rate Average Page quarter. third data the XQ of due This accretion the topic organic Page federal There's quarter the interest $XXXXXX federal comments in in quarter up billion XX Fourth Bank and of loan quarter quarter earning points during portfolio during of a basis cost of the to on points. net quarter net net net expense and quarter points reflects interest XXXX. non-accrual the is summarize funds the contains have fourth on more more we to billion discount the increased XXXX $X.XX compares but respectively. average again billion funds merger loan lot points points, XQ increase or analysis This our both increase loans. was for growth. to average on charged more of in income later significant quarter spot

cumulative XXXX basis of movement in QX in first the next increase rate XXXX. federal the points of You in funds points QX from beta relatively XXX XX.X% effective the the funds movement see QX low basis And can to for the the from beta QX XXXX X.X% effective to of rate federal for XXXX. XX the cumulative

totaled third XXXX the income of Non-interest in quarter XX. and $XX.X in compared the million in quarter of Page fourth year-ago as million quarter million $X to onto $XX.X XXXX. Moving the

non-interest mortgage banking the gains net and in loans servicing mortgage on of most operations, year-over-year variability and caused income. Our comparative mortgage quarter linked loan quarterly

table core mortgage and quarter to of of a and year-over-year quarter declined in is positive $XXX,XXX January price to its linked fair of was on earnings expected compared to $XXX,XXX part release we million XXXX. to on of mortgage Fair out basis. pending value net a due to per in or have in quarter view million the that loan parts, a change per change $XX.X XXXX fourth $X.X loss loans. of share on $X.XXX is of price, Net value negative a that gains quarter breaks component servicing portfolio not fourth settle to Unique of diluted by a as or due value recorded change XXXX. into Brad diluted $X.XXX we results both mentioned XXXX revenue sale pay-downs. We the loans sale the fourth share which text XX, our being after-tax fair due mortgage the a is a The

XXXX seen when which primarily release. as interchange generally earnings The have interchange to our increases were in of in the pricing year-over-year of competitive text we described due implementation income reduced throughout margins. has expense pressure ASU addition, compared XXXX-XX the profitability and In XXXX, to

was interchange the Much data of reflect our and benefits, quarter This impact fixtures compensation expenses XXXX. equipment, earlier, I and $XX.X assets. increases $XX.X $XX.X merger. as of the Page As primarily, mentioned of increase furniture year-over-year expense, third amortization fourth TCSB to in million non-interest XX, in year-ago on the million quarter quarterly the in in of the advertising detailed intangible compared communications, the as processing, quarter million totaled occupancy, XXXX and and the of

nearly costs a basis increased incurred, in on by an to but estimated $XXX,XXX year-over-year addition, claims. due not increase actual healthcare and In quarterly reported

in were tax duration years, delinquencies. non-performing X.XX%. of million level. slightly total of X.XX%, average on rate than December maturities, at provides mortgage December X.XX% XX or portion XXXX. Page September yield the from insurance XX% the XXXX. basis XXXX. loan At is of real data an years. to $X Total securities by up overview estimated The investments to an as health XXXX a five stop-loss fixed is December individual lower provides Page estate, XX. XX, self-insured XX, decreased X.XX of unfortunately, about and And $XX.X sale have portfolio years rate recent and or much quarter or of This XX, portfolio at assets investments loan consumer XXXX average of is for of September with a an had the fourth is was our our elevated of during December in Page have Approximately equivalent assets limit. X.XX% XXXX, with delinquencies weighted were non-performing the provides just points we non-performing XX, other claims assets the delinquencies of portfolio XX XXXX. were and XX Investment million which at the compared We variable and available day XX average of XX, plan overview lives commercial early-stage loans, less. XX XX

or page portfolio the expense We and provision assets. $XXX,XXX the allowance loans XQ, of loans unclassified loan information for in quality totaled X.XX% some provides compared XXXX. defaults $XXX,XXX XXXX charge-offs quarter. additional $XX.X of loan loan XXXX. fourth recorded and at $XXX,XXX including Page XX XX. year-ago had asset loan in losses in onto originated XX, modest net of of to quarter December data new The a on for of Moving an losses million X.XX% We

that $X.X provided million components original outlook. loans during defaults the were well our information XXXX XX.X% XXXX. to to XX, Overall, outlined update year with XX where we December actual a TDR on XXXX, the for performance quarter. are Page million these in December very XXXX. New portfolio totaled January that we XX XXXX back our at decline XX, outlook these compare of that performance and The million continues nearly This original $XX on our loan final in during fourth being slide. was various portfolio provides is our XXXX. during our believe XQ, we current of performance better XX% perform $X.X of the our Page XXXX at performing this actual than of loans

XX is our initial outlook XXXX. page for Finally,

a The growth approximately projected moderation actual percentage higher of to mortgage be XXXX was of are growth loan category We sale. to portfolio in projecting from principally XXXX. primarily loans originated portfolio to X% the X% for loan loan due for

X% XXXX. earning brokered asset expecting non-brokered We in Any expected to to is funding in are be deposit gap balances filled grow growth X% to largely with deposits.

XX% TCSB aforementioned We reflecting the expect XXXX net a with interest income to year in the XX%, growth. portfolio to merger grow loan full

throughout assumes, Our year. increase to projected stable a income rate asset forecast in interest federal one, margin is due point growth. target principally in increase Credit funds XXXX earning relatively net June XX and the the in net difficult the extremely to interest Therefore, is basis project.

would average be do stable provision to portfolio basis we generally purposes. of metrics XX loans for points XXXX modeling quality asset in about be at not level A However, expect XXXX. unreasonable

volatility the generally income, typically every per of to income is range quarter related first in non-interest for expect we our slowest $XX could year million Although quarterly would in non-interest quarter of a mortgage actual banking create million and XXXX. revenues $XX

of sale XXXX non-interest X% projecting non-interest out $XX the merger-related expense in to million about expenses are higher projected expenses on million estate, gain level per We than real and the XXXX. other factoring When of XXXX. is $XX.X of quarter

to income XXXX. back an my Brad. I remarks expect call like effective now we about turn Finally, the XX% would of to and tax concludes prepared That in rate over

Brad Kessel

in This had enabled very growth organically Thanks, and met growth we successful our good us or improve our and exceeded Bank We for targets. very City leverage. operating base. associates us Traverse company adding a customer State to both Rob. year XXXX was as

or Our are ROE updated return or return X.X% respectively targets on better asset and XX.X% on equity on and respectively. on ROA better

pleased one by We XX we as were continue service. presentation. named investing slide have on exceptional Along year, our Magazine our in in our of we communities be the to Michigan. in ourselves coming past providing the listed the pride this very initiatives of on prepared bank best in-state and Forbes lines In wrapping best those remarks, customer strategic to banks up headquartered

We have four areas of focus.

means, growth is associates new organic opportunistic and Organic our principally growth our through sales first bank supplemented The attracting sales to selective branch well associates as can leveraging with acquisitions and area team. as be acquisitions.

Our second process in controls. area of is and focus improvement cost

technology/digital reduce leveraging in so offering, have We assist easier bank our and us identified an customers. better easier dozen to projects us for digital advance will our service that technology, our to as to with make and it associates initial banking costs

is focus talent third of area Our in management.

we Over recruit, the the changes retain team in and number have years, several to made a best marketplace. of last develop the

of to We continue area this focus. will advance

Finally, call this now shareholders. At effective open is risk like management high for delivering sustained for our point, performance we to to would critical the up questions.

Operator

Thank you.

question session. begin question-and-answer now Instructions] will Sandler Partners. the & our We And will from Brendan of [Operator O'Neill Nosal come first

Brendan Nosal

guys. morning How good are you? Hey

Brad Kessel

Thank Brendan. good Very you.

Brendan Nosal

Good.

the of net starting here interest margin outlook. on Just

it like we Fed around I back mid-year accretion you if XXXX move doesn't more expectations rate as could assumes quarter. your outlook one NIM X.XX% If for the walk hike out through looks that core margin the core the just for through the the hike. your income, coming rates you was further? for know any the But year

Rob Shuster

impact hike doesn't rates any about further, Fed the reduction a roughly in $XXX,XXX If it's the margin. in change

XX our point in mid-year that results forecast in dollar. of what change that's So, basis terms

have on a margin net interest on material wouldn't or income. impact it the So, either

Brendan Nosal

Got it.

of just seeing Is for out something it margins you like sale margins. on sale And industry to It year which helpful. in capacity Okay, excess the walk through expectations improve? coming you are the assume XXXX else? or just versus seems some outlook in-line then for on gain gain revenues. is outlook that's pickup Can moving your over the to

Rob Shuster

I bit pricing a would rational XXXX. say here we're moved as seeing more we've little into

optimistic I going better. primarily be margins expect year. optimistic a even I'm purchase So, going it's to would margins bit are guardedly a be are I a market -- to guess significant was be to bit of guardedly XXXX volume. a now I'm transitional we that don't refinance that going say and a

saw pricing be that we bit going XXXX. bit we XXXX little I a than where better competition. more so in were But a think to is And you little feel

Brendan Nosal

Got it.

MOE early was there at in back. could And any? Okay. I last of then a you opportunities Michigan what on if thoughts will one Any State for arise sizable for and combination yesterday. then me in Yesterday, a obviously the step large such announcement your guys markets

Brad Kessel

Sure today paths were one would radius mile Brendan. XX with one to try Well, competitors we actually be Bank XX around branch locations our cross if a in about -- Chemical our of markets. locations, our draw them -- largest you

So create including And in banks talent other the side experienced we've couple bit significant well in mergers as going acquisition significant markets, they're does last quite years, back acquisition competitor. the for a in customer ourselves, as prior a opportunities from and disruption of both of it a potential what side. to our marketplace,

opportunity there So, time an it how all tell to see and I will is think out. plays

Brendan Nosal

right. All taking questions. for Fantastic. my Thanks

Brad Kessel

you. Thank

Operator

of question next The Reevey from Davidson. comes D.A. Kevin

Kevin Reevey

morning. Good

Brad Kessel

Kevin. morning, Good

Kevin Reevey

deposit treasury more along. could I a management as question, are coming us First focus. got your how various if was give color growth wondering, on you've know I services you initiatives some

little color I digital was here. looking and talked a your a early retail for more You checking bit in little about

Brad Kessel

Sure, Kevin.

growth in the not the pleased us. sheet growing It's for company annual focus. deposit done our be corporate focus had a side category goal will been – very you is in very past annual this team deposit the company company list our of core a It's team that goals the That base. to a and fact, this we'll And see proxy has statement, I'm and nice year-after-year continue with our in new for So a growth. We've for in – will year our balance been the job goals. effort. has

to we've first, commercial relationships this the pleased see been a accounts. of account, employee in with a whether successful very capturing brought getting focus the that look nice consumer that, very with success it or be side, out And You some if with on level. checking at bank and know, I'm the alongside the commercial and had the we've into I there. level, we've past her base that, or owner always at it's the And new – excellent on year. And been done and then working core the going personal in checking his job bringing then checking their the

here commercial offices our for about of in successful one up accounts. XX was health customer recently opening new a fact, in savings Michigan West In new

to particularly success that DDA balance funds And a of lot we've were that a to the been and of blocking these level. there. teamwork those we've had and with mortgage very – I'm account had then but sweeping seeking doors them tackling able front that FDIC now than same remarks with pay on we're it. has the sheet in successful management a basic still pleased type wholesale for and and of keep our whenever so large provide treasury continued where And – have third-party pay prepared capture very actually, as along the level public albeit account we and on checking time, and outlined previously into account. what we team rate possible. in with it's this And to of would to interest balance a And along in insurance sweep at and finally, just penetration lower personal has the the with sector at origination in And very situation, sector I sheet our commercial – reciprocal knock competitive some funds then

if So I've worked us. Rob, I anything handful those are left know what's a there. well out for And of don't

Rob Shuster

that think covers it. I No

Kevin Reevey

the any two such a meanwhile low result it rate business that's you and of can unemployment feeling a those double-edged and a in rates And Are about earlier particularly in Rapids sword. be markets? talked always good Grand customers low unemployment repercussions then negative Lansing your as

Brad Kessel

growth that One technology. think thoughts. of question. and a place fact in with business -- investment I is And can today a couple That's take lot a of great

And with so technology. they're are and fewer their its grow workers to businesses so able needed

in is The and the you. terms thing hire going to we're resiliency okay, will innovativeness of we other I've the workers been and with impressed train

just and it employees in adding done. they're they're programs So or getting investing

are has So with while back forward. I moving somewhat some it it dealing markets probably held and growth, the think

Kevin Reevey

And since then competitive guys associates area? of going subject associates? the hiring on growth. the prepared sales retain we're are sales business help what in talked talent lastly, you hiring, well your like you about as that your for market And drive to remarks What's to attract as in

Brad Kessel

question. Great

to our the it you efforts several is that years, we've real really put in on past And from favorable team. we've And a culture bring so marketplace. a ongoing. sorry the new what an -- commercial gets pick side focused It's it we to in when share the Bank out and starts on been side. teamwork. to adding word how been on XX mortgage it am to -- added as with this mortgage in our positive where very go bulked being adding of culture people you over our And they and then And outside at not culture culture it's then that in needs And it I the year, pick they're effort. associates of it be the up to seeing just on XX talent culture And work and customer and I think up it last accountability origination side. XXXX ongoing the of the successful actually I create It a down. a and over back and up work on successful put culture we Independent hard down, -- in recruiting

large been at employment, a XXXX. I'd low part So the hourly increase in it. of and law with the level also had that's to say we've wages

first We annual employees. bonus time the instituted also for our hourly an incentive for

make experience all have new place the then experience, for favorably. that our of also very first and year you've to finally coming but there's for -- the process in a experience was last on-boarding process, that make put recruiting over very hires. positive -- that the we that the So to efficient a in some looked upon technology then terrific And this year

And wars. so us combined all are I successful those be helping the talent think in to efforts

Kevin Reevey

questions. for the my Appreciate color. Thanks taking

Brad Kessel

Thanks, Kevin.

Operator

next And have a we of Damon question KBW. from DelMonte

Damon DelMonte

morning, guys. today? it is How's good Hey, going

Brad Kessel

Good, Damon. How are you?

Damon DelMonte

Very Thanks. well.

little expected And on bit follow-up drivers your you the more loan of about the quick Could the you a geographically growth a channels? best in opportunity footprint in it's have growth. the loan you growth? where talk commercial Just think just for the

Brad Kessel

that first of in XX Sure. and growth. as seen growth, were been quarter-over-quarter shot although real that. we're consecutive now you've you strong And back I mortgage know will take here seen we past balanced. loan quarters this at say year of we've It's sort in pretty taper portfolio I'd here.

this in like year today we've of end the today one think pipeline the intentionally solid versus And stands and time. at somewhat we I side. where it the stands quarter year. here got versus today commercial the very tail where the also the But pipelines at end of third -- the ago

very West into us strong as think Michigan mortgage will the also market. continue as the we So we think for the timeframe, does Michigan side. slowed indirect things get a originations hearing the down we we're to And that somewhat -- positive will be for as Southeast December-January market us albeit

should But a get that of momentum little into here up bit second quarter. see some the end. we should first quarter, near over we'll the and of the year pick softness end So

there? add anything to So Rob

Rob Shuster

I it. covered No, you think

mortgage the of for held more for it broad-based higher doing. to range because to X% actually it's going being the sale. the that side in commercial is rest we consumer my and with largely we've and going comments, XXXX to outlook mentioned more the of what I in just as growth in grew think reason the the been I in be percentage think reason the XX% being X% of is be and and The them I of originations plus

year think in support very that in continue said XXXX. pipelines be look offering we well side consumer as RV set to at in And on a that have side, we're and feel XXXX. a think the solid we the again I the to we commercial the up will marine good power Although strong market on like Brad have But arena.

Damon DelMonte

That’s Okay. question, do a great. Now this have you you that on what pretty a and broader at appetite have guess point? color I completed just your that. I appreciate And an M&A do on guys much to the then thoughts transactions? more are integrated, base

Rob Shuster

is I our say growth. primary would focus organic on

of side things M&A that think is somewhat opportunistic. I

have some to pricing a of buyer to have strategy of have alignment You culture expectations have alignment to and a and and you have you seller and etcetera. have

build It's of the models it's and think to combine our leverage solid we assets. growth think mean gain it strong through in our a to type repurchases be said very primary think share and to forecasts operating we would is effective assuming create, But continue going So be returns looking that, when simple dividend we that having you different earning there but think with I for is sort a things. shareholders. focus that opportunity. at I to open of then formula, does never I our we

Damon DelMonte

questions have All right. been my asked answered. All other and Okay.

much. very you So thank

Rob Shuster

you. Thank

Operator

And of question the comes next FIG John Rodis Partners. from

John Rodis

guys. Good morning

Rob Shuster

John. morning Good

John Rodis

the forward or be going we forward, opportunistic January. buyback, -- on just Rob some? rebounded think I stock more Is going the it XX,XXX given in more I on bought said you of the far do should Rob shares Brad you think to active? share -- you expect about the said buyback think on How or has so think sort I you activity

Rob Shuster

off we there certainly saying opportunities out at And like it's we've of reflection see think that it to view we think think we dilution of the the I'm what certainly and growth. certain of levels criteria kind could those with it's levels. per our economic earnings we the kind share a earnings to-date. opportunistic, and just -- done meets sensitive bought accretive run projected works that's But at, book of complete we to prices a input go probably most where probably back future. is at you not timeframe more - I that if I a tangible so and earn we have model as hey is there I in that feel

we sort be somewhat you kind So not anything velocity know the in marketplace. may more I quite what the there? and quarter want to just fourth I on Brad, think in if happens be the have it'll add of had dependent don't we'll of

Brad Kessel

agree. I

John Rodis

Thanks, sense. like Rob, question, we saw then balance still we on Rob. continued quarter? other one sort some securities the there sheet, fourth the makes just run-off That of the No. And portfolio, in should expect

Rob Shuster

level. of $X There of liquidity to million We're just we about feel at -- have purposes, a of we Yes. kind investments retain is certain kind for run-off.

may there but think of bit significant. mean, I a run-off, will it be don't be I So,

maintain a than $XXX think level again, at more I so. to will of else. anything out liquidity management try million or And that's

John Rodis

Thanks, guys. sense. Make Okay.

Operator

like our for the Brad remarks. closing Kessel I over concludes would any And question-and-answer this to session. back to turn conference

Brad Kessel

each today's We interest would everybody like thank of wish great on us We Corporation to in Bank your joining you and call. Independent for for day. a

Operator

presentation. today's concluded. conference for Thank is The you now attending

now disconnect. You may

Independent Bank (IBCP) 29 Jan 192018 Q4 Earnings call transcript