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Independent Bank Corporation Reports 2024 Second Quarter Results
ソース: Nasdaq GlobeNewswire / 25 7 2024 07:59:11 America/New_York
Second Quarter Highlights
Highlights for the second quarter of 2024 include:
- Increases in net income and diluted earnings per share of 25.3% and 25.7%, respectively, over second quarter of 2023;
- An increase in tangible book value per share of $2.71 (16.5%) over the second quarter of 2023;
- Net growth in core deposits of $53.3 million (or 4.8% annualized) from March 31, 2024;
- Net growth in loans of $11.9 million (or 1.2% annualized) from March 31, 2024; and
- The payment of a 24 cent per share dividend on common stock on May 13, 2024.
GRAND RAPIDS, Mich., July 25, 2024 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ: IBCP) reported second quarter 2024 net income of $18.5 million, or $0.88 per diluted share, versus net income of $14.8 million, or $0.70 per diluted share, in the prior-year period.
William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “I am proud of our team and very pleased with our second quarter 2024 results, driving organic growth on both sides of the balance sheet. Overall loans increased 1.2% (annualized), despite a higher-than-normal level of commercial payoffs and paydowns, while core deposits are up 4.8% (annualized). We were able to generate net interest margin expansion, increasing to 3.40% from 3.30% on a linked quarter basis and net interest income growth on both a linked quarter basis and on a year over year quarterly basis. We believe that our expenses continue to be well managed, and we continue to see improved operational scale from strategic investments we have made in recent years. Our credit metrics continue to be excellent, with watch credits and non-performing assets near historic lows. These fundamentals drove good growth in both our earnings per share (26%) and tangible book value per share (16%) compared to the prior year quarter. Based on a robust commercial loan pipeline, the past record of our core group of professionals and the on-going strategic initiative to add talented bankers to our team, we are optimistic about continuing these growth trends for the second half of the year and into 2025.”
Significant items impacting comparable second quarter 2024 and 2023 results include the following:
- Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of $0.9 million ($0.03 per diluted share, after taxes) for the three-month period ended June 30, 2024, as compared to $2.4 million ($0.09 per diluted share, after taxes) for the three-months ended June 30, 2023.
- The provision for credit losses was an expense of $0.02 million ($0.00 per diluted share, after taxes) in the second quarter ended June 30, 2024, as compared to an expense of $3.3 million ($0.12 per diluted share, after taxes) in the second quarter ended June 30, 2023.
- Gain on equity securities at fair value of $2.7 million ($0.10 per diluted share, after tax) in the second quarter ended June 30, 2024, attributable to the exchange of our Visa Class B-1 common stock. No gain or loss on equity securities at fair value was recorded for the second quarter of 2023.
Operating Results
The Company’s net interest income totaled $41.3 million during the second quarter of 2024, an increase of $3.0 million, or 7.8% from the year-ago period, and an increase of $1.1 million, or 2.9%, from the first quarter of 2024. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.40% during the second quarter of 2024, compared to 3.24% in the year-ago period, and 3.30% in the first quarter of 2024. The year-over-year quarterly increase in net interest income was due to an increase in average interest-earning assets and the net interest margin. The increase in net interest income compared to the linked quarter was due to an increase in the net interest margin that was partially offset by a decrease in average interest earning assets. Average interest-earning assets were $4.89 billion in the second quarter of 2024, compared to $4.76 billion in the year ago quarter and $4.91 billion in the first quarter of 2024.
Non-interest income totaled $15.2 million for the second quarter of 2024, compared to $15.4 million in the comparable prior year period. This change was primarily due to variances in mortgage banking related revenues and gain on equity securities at fair value.
Gain on equity securities at fair value totaled $2.7 million during the second quarter of 2024. This gain is the consequence of the exchange of our shares of Visa Class B-1 common stock on May 6, 2024 into a combination of Visa Class C common stock and Visa Class B-2 common stock. With the completion of this exchange, we were able to record the fair value of the Visa Class C common stock through income (as it is convertible into publicly traded Visa Class A common stock) while the Visa Class B-2 common stock continues to be carried at zero.
Net gains on mortgage loans in the second quarters of 2024 and 2023, were approximately $1.3 million and $2.1 million, respectively. The comparative quarterly decrease in net gains on mortgage loans was primarily due to an decrease in both gain on sale margin on mortgage loans sold and a decrease in the volume of mortgage loans sold.
Mortgage loan servicing, net, generated income of $2.1 million and $3.7 million in the second quarters of 2024 and 2023, respectively. The significant variance in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in interest rates and the associated expected future prepayment levels and expected float rates. Mortgage loan servicing, net activity is summarized in the following table:
Three months ended Six months ended 6/30/2024 6/30/2023 6/30/2024 6/30/2023 (In thousands) Mortgage loan servicing, net: Revenue, net $ 2,214 $ 2,193 $ 4,433 $ 4,415 Fair value change due to price 911 2,443 2,176 1,808 Fair value change due to pay-downs (1,034 ) (962 ) (1,793 ) (1,823 ) Total $ 2,091 $ 3,674 $ 4,816 $ 4,400 Non-interest expenses totaled $33.3 million in the second quarter of 2024, compared to $32.2 million in the year-ago period.
The Company recorded income tax expense of $4.6 million in the second quarter of 2024. This compares to an income tax expense of $3.4 million in the second quarter of 2023. The changes in income tax expense principally reflect changes in pre-tax earnings in 2024 relative to 2023.
Asset Quality
A breakdown of non-performing loans by loan type is as follows:
6/30/2024 12/31/2023 6/30/2023 Loan Type (Dollars in thousands) Commercial $ 312 $ 28 $ 33 Mortgage 4,819 6,425 6,149 Installment 843 970 694 Sub total 5,974 7,423 6,876 Less - government guaranteed loans 1,489 2,191 2,882 Total non-performing loans $ 4,485 $ 5,232 $ 3,994 Ratio of non-performing loans to total portfolio loans 0.12 % 0.14 % 0.11 % Ratio of non-performing assets to total assets 0.10 % 0.11 % 0.09 % Ratio of allowance for credit losses to total non-performing loans 1253.98 % 1044.69 % 1351.13 % The provision for credit losses was an expense of $0.02 million and $3.32 million in the second quarters of 2024 and 2023, respectively. The quarterly change in the provision for credit losses in 2024 compared to 2023, is the result of a decrease in net newly allocated losses in the commercial loan portfolio primarily driven by a large specific reserve in the prior year as well as a decrease in loan growth and a decrease in the adjustment to allocations based on subjective factors. We recorded loan net charge offs (recoveries) of $0.09 million and $(0.10) million in the second quarters of 2024 and 2023, respectively. At June 30, 2024, the allowance for credit losses for loans totaled $56.2 million, or 1.46% of total portfolio loans compared to $54.7 million, or 1.44% of total portfolio loans at December 31, 2023.
Balance Sheet, Capital and Liquidity
Total assets were $5.28 billion at June 30, 2024, a increase of $13.8 million from December 31, 2023. Loans, excluding loans held for sale, were $3.85 billion at June 30, 2024, compared to $3.79 billion at December 31, 2023. Deposits totaled $4.61 billion at June 30, 2024, a decrease of $8.6 million from December 31, 2023. This decrease is primarily due to decreases in non-interest bearing and brokered time deposits that were partially offset by growth in savings and interest-bearing checking, reciprocal, and time deposits.
Cash and cash equivalents totaled $214.3 million at June 30, 2024, versus $169.8 million at December 31, 2023. Securities available for sale (“AFS”) totaled $592.0 million at June 30, 2024, versus $679.4 million at December 31, 2023.
Total shareholders’ equity was $430.5 million at June 30, 2024, or 8.16% of total assets compared to $404.4 million or 7.68% at December 31, 2023. Tangible common equity totaled $400.4 million at June 30, 2024, or $19.16 per share compared to $374.1 million or $17.96 per share at December 31, 2023. The increase in shareholder equity as well as tangible common equity are primarily the result of earnings retention.
The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:
Regulatory Capital Ratios 6/30/2024 12/31/2023 Well
Capitalized
MinimumTier 1 capital to average total assets 9.34 % 8.80 % 5.00 % Tier 1 common equity to risk-weighted assets 11.70 % 11.21 % 6.50 % Tier 1 capital to risk-weighted assets 11.70 % 11.21 % 8.00 % Total capital to risk-weighted assets 12.95 % 12.46 % 10.00 % At June 30, 2024, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $1.00 billion and $438.5 million, respectively. We also had approximately $787.4 million in fair value of unpledged securities AFS and HTM at June 30, 2024 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $732.5 million.
Share Repurchase Plan
On December 19, 2023, the Board of Directors of the Company authorized the 2024 share repurchase plan. Under the terms of the 2024 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2024. The Company did not repurchase any shares of common stock during the first six months of 2024.
Earnings Conference Call
Brad Kessel, President and CEO, Gavin Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, July 25, 2024.
To participate in the live conference call, please dial 1-833-470-1428 (Access Code # 459632). Also, the conference call will be accessible through an audio webcast with user-controlled slides via the following site/URL: https://events.q4inc.com/attendee/697238975.
A playback of the call can be accessed by dialing 1-866-813-9403 (Access Code # 287261). The replay will be available through August 1, 2024.
About Independent Bank Corporation
Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $5.3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan's Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, consumer banking, investments and insurance. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.
For more information, please visit our Web site at: IndependentBank.com.
Forward-Looking Statements
This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plans and prospects.Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. For example, deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding to us, lead to a tightening of credit, and increase stock price volatility. Our results could also be adversely affected by changes in interest rates; increases in unemployment rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of our investment securities; legal and regulatory developments; changes in customer behavior and preferences; breaches in data security; and management’s ability to effectively manage the multitude of risks facing our business. Key risk factors that could affect our future results are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2023 and the other reports we file with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of our future results.
Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
Contact: William B. Kessel, President and CEO, 616.447.3933
Gavin A. Mohr, Chief Financial Officer, 616.447.3929INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial ConditionJune 30, 2024 December 31, 2023 (Unaudited) (In thousands, except share
amounts)Assets Cash and due from banks $ 54,910 $ 68,208 Interest bearing deposits 159,438 101,573 Cash and Cash Equivalents 214,348 169,781 Equity securities at fair value 872 — Securities available for sale 591,974 679,350 Securities held to maturity (fair value of $305,654 at June 30, 2024 and $318,606 at December 31, 2023) 344,220 353,988 Federal Home Loan Bank and Federal Reserve Bank stock, at cost 16,099 16,821 Loans held for sale, carried at fair value 15,935 12,063 Loans Commercial 1,732,353 1,679,731 Mortgage 1,501,377 1,485,872 Installment 618,159 625,298 Total Loans 3,851,889 3,790,901 Allowance for credit losses (56,241 ) (54,658 ) Net Loans 3,795,648 3,736,243 Other real estate and repossessed assets, net 945 569 Property and equipment, net 35,041 35,523 Bank-owned life insurance 53,821 54,341 Capitalized mortgage loan servicing rights, carried at fair value 44,406 42,243 Other intangibles 1,746 2,004 Goodwill 28,300 28,300 Accrued income and other assets 134,145 132,500 Total Assets $ 5,277,500 $ 5,263,726 Liabilities and Shareholders' Equity Deposits Non-interest bearing $ 1,049,625 $ 1,076,093 Savings and interest-bearing checking 1,926,065 1,905,701 Reciprocal 925,828 832,020 Time 585,561 524,325 Brokered time 127,249 284,740 Total Deposits 4,614,328 4,622,879 Other borrowings 50,012 50,026 Subordinated debt 39,548 39,510 Subordinated debentures 39,762 39,728 Accrued expenses and other liabilities 103,391 107,134 Total Liabilities 4,847,041 4,859,277 Shareholders’ Equity Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding — — Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 20,899,358 shares at June 30, 2024 and 20,835,633 shares at December 31, 2023 317,676 317,483 Retained earnings 183,611 159,108 Accumulated other comprehensive loss (70,828 ) (72,142 ) Total Shareholders’ Equity 430,459 404,449 Total Liabilities and Shareholders’ Equity $ 5,277,500 $ 5,263,726 INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of OperationsThree Months Ended Six Months Ended
June 30,June 30,
2024March 31,
2024June 30,
20242024 2023 (Unaudited) Interest Income (In thousands, except per share amounts) Interest and fees on loans $ 56,786 $ 55,043 $ 47,679 $ 111,829 $ 91,973 Interest on securities Taxable 4,713 5,251 5,919 9,964 11,803 Tax-exempt 3,400 3,391 3,283 6,791 6,366 Other investments 1,439 1,441 1,067 2,880 1,742 Total Interest Income 66,338 65,126 57,948 131,464 111,884 Interest Expense Deposits 22,876 22,810 17,461 45,686 31,221 Other borrowings and subordinated debt and debentures 2,116 2,119 2,137 4,235 3,872 Total Interest Expense 24,992 24,929 19,598 49,921 35,093 Net Interest Income 41,346 40,197 38,350 81,543 76,791 Provision for credit losses 19 744 3,317 763 5,477 Net Interest Income After Provision for Credit Losses 41,327 39,453 35,033 80,780 71,314 Non-interest Income Interchange income 3,401 3,151 3,355 6,552 6,560 Service charges on deposit accounts 2,937 2,872 3,134 5,809 5,991 Net gains (losses) on assets Mortgage loans 1,333 1,364 2,120 2,697 3,376 Equity securities at fair value 2,693 — — 2,693 — Securities available for sale — (269 ) — (269 ) (222 ) Mortgage loan servicing, net 2,091 2,725 3,674 4,816 4,400 Other 2,717 2,718 3,134 5,435 5,863 Total Non-interest Income 15,172 12,561 15,417 27,733 25,968 Non-interest Expense Compensation and employee benefits 21,251 20,770 20,602 42,021 39,941 Data processing 3,257 3,255 2,891 6,512 5,882 Occupancy, net 1,886 2,074 1,845 3,960 4,004 Interchange expense 1,127 1,097 1,054 2,224 2,103 Furniture, fixtures and equipment 948 954 929 1,902 1,855 FDIC deposit insurance 695 782 749 1,477 1,532 Advertising 788 491 431 1,279 926 Loan and collection 699 512 620 1,211 1,198 Communications 499 615 635 1,114 1,303 Legal and professional 544 486 473 1,030 1,080 Costs (recoveries) related to unfunded lending commitments (137 ) (652 ) 100 (789 ) (375 ) Other 1,776 1,809 1,919 3,585 3,756 Total Non-interest Expense 33,333 32,193 32,248 65,526 63,205 Income Before Income Tax 23,166 19,821 18,202 42,987 34,077 Income tax expense 4,638 3,830 3,412 8,468 6,296 Net Income $ 18,528 $ 15,991 $ 14,790 $ 34,519 $ 27,781 Net Income Per Common Share Basic $ 0.89 $ 0.77 $ 0.70 $ 1.65 $ 1.32 Diluted $ 0.88 $ 0.76 $ 0.70 $ 1.64 $ 1.31 INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial DataJune 30,
2024March 31,
2024December 31,
2023September 30,
2023June 30,
2023(unaudited) (Dollars in thousands except per share data) Three Months Ended Net interest income $ 41,346 $ 40,197 $ 40,111 $ 39,427 $ 38,350 Provision for credit losses 19 744 (617 ) 1,350 3,317 Non-interest income 15,172 12,561 9,097 15,611 15,417 Non-interest expense 33,333 32,193 31,878 32,036 32,248 Income before income tax 23,166 19,821 17,947 21,652 18,202 Income tax expense 4,638 3,830 4,204 4,109 3,412 Net income $ 18,528 $ 15,991 $ 13,743 $ 17,543 $ 14,790 Basic earnings per share $ 0.89 $ 0.77 $ 0.66 $ 0.84 $ 0.70 Diluted earnings per share 0.88 0.76 0.65 0.83 0.70 Cash dividend per share 0.24 0.24 0.23 0.23 0.23 Average shares outstanding 20,901,741 20,877,067 20,840,680 20,922,431 21,040,349 Average diluted shares outstanding 21,105,387 21,079,607 21,049,030 21,114,445 21,222,535 Performance Ratios Return on average assets 1.44 % 1.24 % 1.04 % 1.34 % 1.18 % Return on average equity 17.98 15.95 14.36 18.68 16.29 Efficiency ratio (1) 61.49 60.26 64.27 57.52 59.26 As a Percent of Average Interest-Earning Assets (1) Interest income 5.45 % 5.34 % 5.29 % 5.10 % 4.89 % Interest expense 2.05 2.04 2.03 1.87 1.65 Net interest income 3.40 3.30 3.26 3.23 3.24 Average Balances Loans $ 3,849,199 $ 3,810,526 $ 3,764,752 $ 3,694,534 $ 3,567,920 Securities 944,435 999,140 1,027,240 1,071,211 1,111,670 Total earning assets 4,893,367 4,910,669 4,928,697 4,892,208 4,763,295 Total assets 5,181,317 5,201,452 5,233,666 5,192,114 5,044,746 Deposits 4,531,917 4,561,645 4,612,797 4,577,796 4,447,843 Interest bearing liabilities 3,611,972 3,627,446 3,635,771 3,554,179 3,415,621 Shareholders' equity 414,549 403,225 379,614 372,667 364,143 (1) Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data (continued)June 30,
2024March 31,
2024December 31,
2023September 30,
2023June 30,
2023(unaudited) (Dollars in thousands except per share data) End of Period Capital Tangible common equity ratio 7.63 % 7.41 % 7.15 % 6.67 % 6.75 % Tangible common equity ratio excluding accumulated other comprehensive loss 8.76 8.57 8.31 8.20 8.09 Average equity to average assets 8.00 7.75 7.25 7.18 7.22 Total capital to risk-weighted assets (2) 14.21 13.85 13.71 13.58 13.66 Tier 1 capital to risk-weighted assets (2) 12.01 11.65 11.50 11.37 11.42 Common equity tier 1 capital to risk-weighted assets (2) 11.09 10.73 10.58 10.44 10.46 Tier 1 capital to average assets (2) 9.59 9.29 9.03 8.94 8.97 Common shareholders' equity per share of common stock $ 20.60 $ 19.88 $ 19.41 $ 17.99 $ 17.91 Tangible common equity per share of common stock 19.16 18.44 17.96 16.53 16.45 Total shares outstanding 20,899,358 20,903,677 20,835,633 20,850,455 20,943,694 Selected Balances Loans $ 3,851,889 $ 3,839,965 $ 3,790,901 $ 3,741,486 $ 3,631,114 Securities 936,194 963,577 1,033,338 1,043,540 1,092,703 Total earning assets 4,979,555 4,949,496 4,954,696 4,884,720 4,830,185 Total assets 5,277,500 5,231,255 5,263,726 5,200,018 5,135,564 Deposits 4,614,328 4,582,414 4,622,879 4,585,612 4,487,636 Interest bearing liabilities 3,694,025 3,677,060 3,676,050 3,573,187 3,501,280 Shareholders' equity 430,459 415,570 404,449 374,998 375,162 (2) June 30, 2024 are Preliminary.
Reconciliation of Non-GAAP Financial Measures
Independent Bank CorporationIndependent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends. Tangible common equity is used by the Company to measure the quality of capital.
Reconciliation of Non-GAAP Financial Measures
Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Net Interest Margin, Fully Taxable Equivalent ("FTE") Net interest income $ 41,346 $ 38,350 $ 81,543 $ 76,791 Add: taxable equivalent adjustment 175 232 355 520 Net interest income - taxable equivalent $ 41,521 $ 38,582 $ 81,898 $ 77,311 Net interest margin (GAAP) (1) 3.39 % 3.23 % 3.33 % 3.26 % Net interest margin (FTE) (1) 3.40 % 3.24 % 3.35 % 3.28 % (1) Annualized.
Tangible Common Equity Ratio
June 30,
2024March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 (Dollars in thousands) Common shareholders' equity $ 430,459 $ 415,570 $ 404,449 $ 374,998 $ 375,162 Less: Goodwill 28,300 28,300 28,300 28,300 28,300 Other intangibles 1,746 1,875 2,004 2,141 2,278 Tangible common equity 400,413 385,395 374,145 344,557 344,584 Addition: Accumulated other comprehensive loss for regulatory purposes 65,030 65,831 66,344 86,507 74,712 Tangible common equity excluding other comprehensive loss adjustments $ 465,443 $ 451,226 $ 440,489 $ 431,064 $ 419,296 Total assets $ 5,277,500 $ 5,231,255 $ 5,263,726 $ 5,200,018 $ 5,135,564 Less: Goodwill 28,300 28,300 28,300 28,300 28,300 Other intangibles 1,746 1,875 2,004 2,141 2,278 Tangible assets 5,247,454 5,201,080 5,233,422 5,169,577 5,104,986 Addition: Net unrealized losses on available for sale securities and derivatives, net of tax 65,030 65,831 66,344 86,507 74,712 Tangible assets excluding other comprehensive loss adjustments $ 5,312,484 $ 5,266,911 $ 5,299,766 $ 5,256,084 $ 5,179,698 Common equity ratio 8.16 % 7.94 % 7.68 % 7.21 % 7.31 % Tangible common equity ratio 7.63 % 7.41 % 7.15 % 6.67 % 6.75 % Tangible common equity ratio excluding other comprehensive loss 8.76 % 8.57 % 8.31 % 8.20 % 8.09 % Tangible Common Equity per Share of Common Stock: Common shareholders' equity $ 430,459 $ 415,570 $ 404,449 $ 374,998 $ 375,162 Tangible common equity $ 400,413 $ 385,395 $ 374,145 $ 344,557 $ 344,584 Shares of common stock outstanding (in thousands) 20,899 20,904 20,836 20,850 20,944 Common shareholders' equity per share of common stock $ 20.60 $ 19.88 $ 19.41 $ 17.99 $ 17.91 Tangible common equity per share of common stock $ 19.16 $ 18.44 $ 17.96 $ 16.53 $ 16.45 The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets. Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.