Independent Bank Corporation reported fourth quarter 2024 net income of $18.5 million, or $0.87 per diluted share, an increase from $13.7 million, or $0.65 per diluted share, in the prior-year period. For the full year 2024, net income reached $66.8 million, or $3.16 per diluted share, up from $59.1 million, or $2.79 per diluted share, in 2023.
Net interest income for the fourth quarter totaled $42.9 million, a 6.8% increase year-over-year, contributing to a full-year net interest income of $166.2 million, up 6.3% from 2023. The tax equivalent net interest margin expanded to 3.45% in Q4 2024, compared to 3.26% in the year-ago period.
Total loans, excluding those held for sale, grew to $4.04 billion at December 31, 2024, representing a 10% annualized growth rate in Q4 2024, driven by a 24% annualized growth in the commercial loan portfolio. Total deposits increased by $31.2 million to $4.65 billion, with core deposits growing 5% for the full year.
Non-interest income for Q4 2024 was $19.1 million, significantly higher than $9.1 million in the prior year, primarily due to a $7.8 million gain from mortgage loan servicing, net. The company also announced a letter of intent to sell approximately $971 million, or 27.8%, of its mortgage servicing rights, a transaction expected to close in the first quarter of 2025.
Credit quality remained strong, with the allowance for credit losses at 1.47% of total portfolio loans. The company's tangible book value per share grew by 13% for the full year. The Board of Directors also approved an 8% increase in the quarterly dividend in January 2025, marking the twelfth consecutive annual increase.
CEO William B. Kessel expressed optimism for 2025, citing a robust commercial loan pipeline and strategic initiatives to add talented bankers. The company's 2025 share repurchase plan, authorizing the buyback of up to 1,100,000 shares, was also noted.
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