Independent Bank Corp Michigan (NASDAQ:IBCP) Q4 2019 Earnings Conference Call - Final Transcript

Jan 23, 2020 • 11:00 am ET

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Independent Bank Corp Michigan (NASDAQ:IBCP) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Executive
William B. Kessel

in net recoveries. So it'd be nice to [Speech Overlap].

Executive
Stephen A. Erickson

Understand that. Yeah, that would be good.

Analyst
Brendan Jeffrey Nosal

All right. Fantastic. Well thank you for taking the questions. And Rob, congratulations and best of luck.

Executive
Robert N. Shuster

Thank you.

Operator
Operator

Our next question comes from Russell Gunther with D.A. Davidson.

Executive
Russell Gunther

Hey. Good morning, guys.

Executive
William B. Kessel

Good morning.

Executive
Stephen A. Erickson

Good morning, Russell.

Executive
Russell Gunther

Thanks so much for all the detail on the loan growth outlook like [Phonetic] 7% to 8%. I hear that the expectation is for contribution across your lending verticals. I would just be curious if there is -- I thought that that would be pretty evenly spread if one particular vertical might have better strength than another. And then from a geographic perspective submarkets within the Michigan footprint that might be or continue to be bigger drivers of growth.

Executive
William B. Kessel

Right. Right. Yeah. So, Russell, that's a good question. Again, I think we believe that we are positioned to get the balanced growth in all three. One of the intentions of our Company in committing resources to the multiple categories is you just don't know. Well, one may be stronger at one time. Then another portfolio may be hitting a little stronger. And we saw evidence of that here in Q4 with the mortgage originations being very, very strong. But I hope that it would be coming out of all three.

I think on the commercial front, when I look at the number of origination staff that we have starting the year versus where we started the year a year ago, we are up. We've been I think solidly moved forward in terms of adding talent to our team. And then there obviously continues to be disruption in our marketplace. So I think it's the addition of staff and the disruption in the marketplace that creates the opportunity for us on the commercial side.

On the mortgage side, I am pleased to report and knock on wood here, we had a very little turnover in this team now for an extended period of time. And actually while we're down a little bit in the pipeline here at year-end versus the third quarter, we are better than or higher than we were a year ago at this time. And so I think we're approaching 2020 -- even though the Mortgage Bankers Association believes that overall mortgage volumes should be down principally because of lower refinances, I'm still very optimistic on the mortgage side.

And then as we move over to the consumer side that really comes out of our branch network and I'm so pleased with the development of that team, the stability of that team and they continue to, I think, grow in their efforts to originate consumer installment loans and then of course the indirect, which has been the horse for us for multiple years. It's the same small group of team that are out knocking on our dealers and getting sort of first look at the best paper. And I applauded them this morning