Related Link

Web Seminars

Despite reporting vastly improved credit quality, Independent Bank Corp. in Ionia, Mich., said Thursday that its losses in the fourth quarter doubled from the same period in 2010, to $9.8 million.

For the full year, the $2.3 billion-asset Independent lost $24.4 million, compared to a loss of $20.8 million in 2010.

Michael M. Magee, Independent's chairman and chief executive, said in a news release that the fourth-quarter results were skewed somewhat by $6 million in additional noninterest expense relating to writedowns at its Chicago-based finance company. The company also added $1 million valuation allowance on its net deferred tax assets that it expects to recover in the future as its performance improves.

"Although our fourth-quarter and full year 2011 operating results fell short of our expectations, I believe that significant progress was made in our goal to return to future profitability," Magee said.

Most notably, its total nonperforming loans fell by more than 11% year over year, to $59.9 million, which allowed it to lower its loan loss provision, by more than $18 million. Magee said that delinquencies at Dec. 31 were at their lowest levels in "many years."