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."