8-K
INDEPENDENT BANK CORP /MI/ (IBCP)
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: October 28, 2025
INDEPENDENT BANK CORPORATION
(Exact name of registrant as specified in its charter)
| Michigan | 0-7818 | 38-2032782 | |||
|---|---|---|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | 4200 East Beltline<br><br>Grand Rapids, Michigan | 49525 | |
| --- | --- | ||||
| (Address of principal executive office) | (Zip Code) |
Registrant’s telephone number,
including area code:
(616) 527-5820
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, no par value | IBCP | NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition
On October 28, 2025, Independent Bank Corporation issued a press release announcing its financial results for the quarter ended September 30, 2025. A copy of the press release is attached as Exhibit 99.1. Attached Exhibit 99.2 contains supplemental data to that press release and attached Exhibit 99.3 contains a slide presentation for our earnings conference call.
The information in this Form 8-K and the attached Exhibits shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
Exhibits.
| 99.1 | Press release dated October 28, 2025. |
|---|---|
| 99.2 | Supplemental data to the Registrant’s press release dated October 28, 2025. |
| 99.3 | Earnings conference call presentation. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| INDEPENDENT BANK CORPORATION | |||
|---|---|---|---|
| (Registrant) | |||
| Date | 10/28/2025 | By | s/Gavin A. Mohr |
| Gavin A. Mohr, Principal Financial Officer |
3
Document
Exhibit 99.1
NEWS RELEASE
Independent Bank Corporation
4200 East Beltline
Grand Rapids, MI 49525
616.527.5820
| For Release: | Immediately |
|---|---|
| Contact: | William B. Kessel, President and CEO, 616.447.3933<br><br>Gavin A. Mohr, Chief Financial Officer, 616.447.3929 |
INDEPENDENT BANK CORPORATION REPORTS 2025 THIRD QUARTER RESULTS
Third Quarter Highlights
Highlights for the third quarter of 2025 include:
•Increase in net interest income of $0.7 million (or 1.7% ) over the second quarter of 2025;
•Increase in tangible common equity per share of common stock of $1.06 (or 20.0% annualized) from June 30, 2025;
•Net growth in total deposits, less brokered time deposits of $148.2 million (or 13.0% annualized) from June 30, 2025;
•Net growth in loans of $33.9 million (or 3.2% annualized) from June 30, 2025; and
•The payment of a 26 cent per share dividend on common stock on August 15, 2025.
GRAND RAPIDS, Mich., October 28, 2025 - Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2025 net income of $17.5 million, or $0.84 per diluted share, versus net income of $13.8 million, or $0.65 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’s performance and pleased to report continued positive momentum in our third quarter 2025 results. Loan balances grew at an annualized rate of 3.2%, and total deposits, less brokered time deposits increased by 13.0% (annualized). We achieved growth in net interest income both sequentially and year-over-year. Our net interest margin displayed a small decline on a linked quarter basis primarily due to the acceleration of unamortized issuance costs on subordinated debt we redeemed in the third quarter. I would characterize the NIM as stable when adjusting for this event. Expense management remains a strength, as reflected in our third-quarter efficiency ratio of 58.86%, which demonstrates the effectiveness of our recent strategic investments. These solid fundamentals supported a 10.2% year-over-year increase in tangible common equity per share and strong returns, including a return on average assets of 1.27% and a return on average equity of 14.57%. Despite market uncertainty, our credit quality remains strong, with watch credits at low levels. Non-performing assets increased from 0.16% of total assets to 0.38% of total assets on a quarter-over-quarter basis primarily as the result of one commercial relationship where the borrower is experiencing financial difficulties. Our
annualized net charge-offs continue at historically low levels, four basis points through the first three quarters of 2025. The allowance for credit losses stands at 1.49% of total loans. I am optimistic we will finish 2025 strong and remain excited about our prospects to grow our customer base and earnings in 2026.”
Significant items impacting comparable third quarter 2025 and 2024 results include the following:
•Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of $(0.6) million ($(0.02) per diluted share, after taxes) for the three-month period ended September 30, 2025, as compared to $(4.2) million ($(0.16) per diluted share, after taxes) for the three-month period ended September 30, 2024.
Operating Results
The Company’s net interest income totaled $45.4 million during the third quarter of 2025, an increase of $3.5 million, or 8.4% from the year-ago period, and an increase of $0.7 million, or 1.7%, from the second quarter of 2025. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.54% during the third quarter of 2025, compared to 3.37% in the year-ago period, and 3.58% in the second quarter of 2025. The year-over-year quarterly increase in net interest income was due to both an increase in average interest-earning assets and the higher net interest margin. The linked quarter increase in net interest income was due to an increase in average interest-earning assets that was partially offset by a modest decrease in net interest margin. Average interest-earning assets were $5.16 billion in the third quarter of 2025, compared to $4.99 billion in the year-ago quarter and $5.04 billion in the second quarter of 2025.
Non-interest income totaled $11.9 million for the third quarter of 2025, compared to $9.5 million in the comparable prior year period. This change was primarily due to variances in mortgage banking related revenues.
Net gains on mortgage loans in the third quarters of 2025 and 2024 were approximately $1.5 million and $2.2 million, respectively. The comparative quarterly decrease in net gains on mortgage loans was due to a 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 (expense) of $0.1 million and $(3.1) million in the third quarters of 2025 and 2024, 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 as well as a decline in servicing revenue. The decline in servicing revenue is attributed to the sale of approximately $931 million of mortgage servicing rights on January 31, 2025. Capitalized mortgage loan servicing rights totaled $31.5 million and $46.8 million at September 30, 2025 and December 31, 2024, respectively. The decline during the first nine months of 2025 was primarily attributable to the aforementioned mortgage servicing right sale. This transaction was executed in part to reduce the amount of exposure the Company had to rate variances that may impact the mortgage servicing right asset valuation in future periods. While the magnitude of fair value adjustments would also be expected to decrease, those adjustments are dependent upon factors that are harder to predict.
Mortgage loan servicing, net activity is summarized in the following table:
| Three months ended | Nine months ended | |||||||
|---|---|---|---|---|---|---|---|---|
| 9/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 | |||||
| (In thousands) | ||||||||
| Mortgage loan servicing, net: | ||||||||
| Revenue, net | $ | 1,614 | $ | 2,248 | $ | 5,145 | $ | 6,681 |
| Fair value change due to price | (576) | (4,155) | (2,328) | (1,979) | ||||
| Fair value change due to pay-downs | (903) | (1,223) | (2,656) | (3,016) | ||||
| Loss on sale of originated servicing rights | $ | (61) | $ | — | (233) | — | ||
| Total | $ | 74 | $ | (3,130) | $ | (72) | $ | 1,686 |
Non-interest expenses totaled $34.1 million in the third quarter of 2025, compared to $32.6 million in the year-ago period.
The Company recorded income tax expense of $3.7 million in the third quarter of 2025. This compares to an income tax expense of $3.5 million in the third quarter of 2024. The change in income tax expense principally reflects changes in pre-tax earnings in 2025 relative to 2024.
Asset Quality
A breakdown of non-performing loans by loan type is as follows (1):
| 9/30/2025 | 12/31/2024 | 9/30/2024 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Loan Type | (Dollars in thousands) | ||||||||
| Commercial | $ | 13,825 | $ | 54 | $ | 59 | |||
| Mortgage | 7,873 | 7,005 | 6,525 | ||||||
| Installment | 900 | 733 | 666 | ||||||
| Sub total | 22,598 | 7,792 | 7,250 | ||||||
| Less - government guaranteed loans | 2,243 | 1,790 | 2,102 | ||||||
| Total non-performing loans | $ | 20,355 | $ | 6,002 | $ | 5,148 | |||
| Ratio of non-performing loans to total portfolio loans | 0.48 | % | 0.15 | % | 0.13 | % | |||
| Ratio of non-performing assets to total assets | 0.38 | % | 0.13 | % | 0.11 | % | |||
| Ratio of allowance for credit losses to total non-performing loans | 306.85 | % | 989.32 | % | 1115.85 | % |
(1) Non performing loans include non-accrual loans and loans 90 days or more past due and still accruing interest.
The provision for credit losses was an expense of $1.99 million and $1.49 million in the third quarters of 2025 and 2024, respectively. We recorded loan net charge offs of $0.73 million and $0.31 million in the third quarters of 2025 and 2024, respectively. At September 30, 2025, the allowance for credit losses for loans totaled $62.5 million, or 1.49% of total portfolio loans compared to $59.4 million, or 1.47% of total portfolio loans at December 31, 2024.
Balance Sheet, Capital and Liquidity
Total assets were $5.49 billion at September 30, 2025, an increase of $155.0 million from December 31, 2024. Loans, excluding loans held for sale, were $4.20 billion at September 30, 2025, compared to $4.04 billion at December 31, 2024. Deposits totaled $4.86 billion at September 30, 2025, an increase of $205.1 million from December 31, 2024. This increase is primarily due to increases in savings and interest-bearing checking, reciprocal, time and brokered time deposits that were partially offset by decreases in non-interest bearing deposits.
Cash and cash equivalents totaled $208.7 million at September 30, 2025, versus $119.9 million at December 31, 2024. Securities available for sale (“AFS”) totaled $502.6 million at September 30, 2025, versus $559.2 million at December 31, 2024.
On August 31, 2025 we redeemed our $40 million floating subordinated notes. This redemption did not affect our status as well-capitalized for regulatory purposes or have a material impact on our liquidity resources.
Total shareholders’ equity was $490.7 million at September 30, 2025, or 8.93% of total assets compared to $454.7 million or 8.52% at December 31, 2024. Tangible common equity totaled $461.3 million at September 30, 2025, or $22.29 per share compared to $424.9 million or $20.33 per share at December 31, 2024. The increases in shareholders’ equity as well as tangible common equity are primarily the result of earnings retention and a reduction in the accumulated other comprehensive loss.
The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:
| Regulatory Capital Ratios | 9/30/2025 | 12/31/2024 | Well<br>Capitalized<br>Minimum | |||
|---|---|---|---|---|---|---|
| Tier 1 capital to average total assets | 9.19 | % | 9.58 | % | 5.00 | % |
| Common equity tier 1 capital to risk-weighted assets | 11.33 | % | 11.74 | % | 6.50 | % |
| Tier 1 capital to risk-weighted assets | 11.33 | % | 11.74 | % | 8.00 | % |
| Total capital to risk-weighted assets | 12.58 | % | 12.99 | % | 10.00 | % |
At September 30, 2025, 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 $1.15 billion and $468.8 million, respectively. We also had approximately $465.9 million in fair value of unpledged securities AFS and HTM at September 30, 2025 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $437.3 million.
Share Repurchase Plan
On December 17, 2024, the Board of Directors of the Company authorized the 2025 share repurchase plan. Under the terms of the 2025 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, 2025. During the nine month period ended September 30, 2025, there were 266,008 shares of common stock repurchased, for an aggregate purchase price of $7.77 million.
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 Tuesday, October 28, 2025.
To participate in the live conference call, please dial 1-833-470-1428 (Access Code # 362565). 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/579402272.
A playback of the call can be accessed by dialing 1-866-813-9403 (Access Code # 783472). The replay will be available through November 4, 2025.
About Independent Bank Corporation
Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $5.5 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, 2024 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.
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition
| September 30, 2025 | December 31, 2024 | |||
|---|---|---|---|---|
| (Unaudited) | ||||
| (In thousands, except share<br>amounts) | ||||
| Assets | ||||
| Cash and due from banks | $ | 56,378 | $ | 56,984 |
| Interest bearing deposits | 152,308 | 62,898 | ||
| Cash and Cash Equivalents | 208,686 | 119,882 | ||
| Securities available for sale | 502,583 | 559,182 | ||
| Securities held to maturity (fair value of $293,242 at September 30, 2025 and $301,860 at December 31, 2024) | 321,450 | 339,436 | ||
| Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 18,102 | 16,099 | ||
| Loans held for sale, carried at fair value | 11,654 | 7,643 | ||
| Loans | ||||
| Commercial | 2,125,053 | 1,937,364 | ||
| Mortgage | 1,517,656 | 1,516,726 | ||
| Installment | 555,574 | 584,735 | ||
| Total Loans | 4,198,283 | 4,038,825 | ||
| Allowance for credit losses | (62,459) | (59,379) | ||
| Net Loans | 4,135,824 | 3,979,446 | ||
| Other real estate and repossessed assets, net | 589 | 938 | ||
| Property and equipment, net | 38,805 | 37,492 | ||
| Bank-owned life insurance | 53,875 | 53,855 | ||
| Capitalized mortgage loan servicing rights, carried at fair value | 31,522 | 46,796 | ||
| Other intangibles, net | 1,123 | 1,488 | ||
| Goodwill | 28,300 | 28,300 | ||
| Accrued income and other assets | 140,600 | 147,547 | ||
| Total Assets | $ | 5,493,113 | $ | 5,338,104 |
| Liabilities and Shareholders' Equity | ||||
| Deposits | ||||
| Non-interest bearing | $ | 1,003,521 | $ | 1,013,647 |
| Savings and interest-bearing checking | 2,040,462 | 1,995,314 | ||
| Reciprocal | 981,115 | 907,031 | ||
| Time | 660,815 | 628,285 | ||
| Brokered time | 173,242 | 109,811 | ||
| Total Deposits | 4,859,155 | 4,654,088 | ||
| Other borrowings | 2,006 | 45,009 | ||
| Subordinated debt | — | 39,586 | ||
| Subordinated debentures | 39,847 | 39,796 | ||
| Accrued expenses and other liabilities | 101,363 | 104,939 | ||
| Total Liabilities | 5,002,371 | 4,883,418 | ||
| 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: 20,691,604 shares at September 30, 2025 and 20,895,714 shares at December 31, 2024 | 311,770 | 318,777 | ||
| Retained earnings | 239,602 | 205,853 | ||
| Accumulated other comprehensive loss | (60,630) | (69,944) | ||
| Total Shareholders’ Equity | 490,742 | 454,686 | ||
| Total Liabilities and Shareholders’ Equity | $ | 5,493,113 | $ | 5,338,104 |
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
| Three Months Ended | Nine Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30,<br>2025 | June 30, 2025 | September 30,<br>2024 | September 30, | ||||||||
| 2025 | 2024 | ||||||||||
| (Unaudited) | |||||||||||
| Interest Income | (In thousands, except per share amounts) | ||||||||||
| Interest and fees on loans | $ | 61,325 | $ | 59,535 | $ | 58,410 | $ | 178,628 | $ | 170,239 | |
| Interest on securities | |||||||||||
| Taxable | 3,660 | 3,796 | 4,502 | 11,492 | 14,466 | ||||||
| Tax-exempt | 2,767 | 2,773 | 3,404 | 8,310 | 10,195 | ||||||
| Other investments | 1,538 | 774 | 2,018 | 3,882 | 4,898 | ||||||
| Total Interest Income | 69,290 | 66,878 | 68,334 | 202,312 | 199,798 | ||||||
| Interest Expense | |||||||||||
| Deposits | 21,972 | 20,462 | 24,462 | 63,389 | 70,148 | ||||||
| Other borrowings and subordinated debt and debentures | 1,957 | 1,801 | 2,018 | 5,262 | 6,253 | ||||||
| Total Interest Expense | 23,929 | 22,263 | 26,480 | 68,651 | 76,401 | ||||||
| Net Interest Income | 45,361 | 44,615 | 41,854 | 133,661 | 123,397 | ||||||
| Provision for credit losses | 1,991 | 1,500 | 1,488 | 4,212 | 2,251 | ||||||
| Net Interest Income After Provision for Credit Losses | 43,370 | 43,115 | 40,366 | 129,449 | 121,146 | ||||||
| Non-interest Income | |||||||||||
| Interchange income | 4,157 | 3,390 | 4,146 | 10,674 | 10,698 | ||||||
| Service charges on deposit accounts | 3,131 | 2,981 | 3,085 | 8,926 | 8,894 | ||||||
| Net gains (losses) on assets | |||||||||||
| Mortgage loans | 1,474 | 1,631 | 2,177 | 5,408 | 4,874 | ||||||
| Equity securities at fair value | — | — | (8) | — | 2,685 | ||||||
| Securities available for sale | (36) | 11 | (145) | (355) | (414) | ||||||
| Mortgage loan servicing, net | 74 | 490 | (3,130) | (72) | 1,686 | ||||||
| Other | 3,137 | 2,822 | 3,383 | 9,105 | 8,818 | ||||||
| Total Non-interest Income | 11,937 | 11,325 | 9,508 | 33,686 | 37,241 | ||||||
| Non-interest Expense | |||||||||||
| Compensation and employee benefits | 21,125 | 21,123 | 20,048 | 62,631 | 62,069 | ||||||
| Data processing | 3,784 | 3,847 | 3,379 | 11,360 | 9,891 | ||||||
| Occupancy, net | 2,127 | 2,046 | 1,893 | 6,396 | 5,853 | ||||||
| Interchange expense | 1,180 | 1,177 | 1,149 | 3,476 | 3,373 | ||||||
| Furniture, fixtures and equipment | 892 | 793 | 932 | 2,570 | 2,834 | ||||||
| Advertising | 526 | 833 | 581 | 2,220 | 1,860 | ||||||
| Loan and collection | 618 | 744 | 657 | 2,148 | 1,868 | ||||||
| FDIC deposit insurance | 615 | 637 | 664 | 1,963 | 2,141 | ||||||
| Legal and professional | 682 | 500 | 687 | 1,661 | 1,717 | ||||||
| Communications | 465 | 470 | 519 | 1,526 | 1,633 | ||||||
| Other | 2,117 | 1,592 | 2,074 | 6,204 | 4,870 | ||||||
| Total Non-interest Expense | 34,131 | 33,762 | 32,583 | 102,155 | 98,109 | ||||||
| Income Before Income Tax | 21,176 | 20,678 | 17,291 | 60,980 | 60,278 | ||||||
| Income tax expense | 3,674 | 3,801 | 3,481 | 11,011 | 11,949 | ||||||
| Net Income | $ | 17,502 | $ | 16,877 | $ | 13,810 | $ | 49,969 | $ | 48,329 | |
| Net Income Per Common Share | |||||||||||
| Basic | $ | 0.85 | $ | 0.81 | $ | 0.66 | $ | 2.40 | $ | 2.31 | |
| Diluted | $ | 0.84 | $ | 0.81 | $ | 0.65 | $ | 2.38 | $ | 2.29 |
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data
| September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | September 30,<br>2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (unaudited) | |||||||||||||||
| (Dollars in thousands except per share data) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| Net interest income | $ | 45,361 | $ | 44,615 | $ | 43,685 | $ | 42,851 | $ | 41,854 | |||||
| Provision for credit losses | 1,991 | 1,500 | 721 | 2,217 | 1,488 | ||||||||||
| Non-interest income | 11,937 | 11,325 | 10,424 | 19,121 | 9,508 | ||||||||||
| Non-interest expense | 34,131 | 33,762 | 34,262 | 36,987 | 32,583 | ||||||||||
| Income before income tax | 21,176 | 20,678 | 19,126 | 22,768 | 17,291 | ||||||||||
| Income tax expense | 3,674 | 3,801 | 3,536 | 4,307 | 3,481 | ||||||||||
| Net income | $ | 17,502 | $ | 16,877 | $ | 15,590 | $ | 18,461 | $ | 13,810 | |||||
| Basic earnings per share | $ | 0.85 | $ | 0.81 | $ | 0.74 | $ | 0.88 | $ | 0.66 | |||||
| Diluted earnings per share | 0.84 | 0.81 | 0.74 | 0.87 | 0.65 | ||||||||||
| Cash dividend per share | 0.26 | 0.26 | 0.26 | 0.24 | 0.24 | ||||||||||
| Average shares outstanding | 20,702,235 | 20,749,925 | 20,943,094 | 20,893,820 | 20,896,019 | ||||||||||
| Average diluted shares outstanding | 20,904,857 | 20,945,522 | 21,150,550 | 21,122,096 | 21,115,273 | ||||||||||
| Performance Ratios | |||||||||||||||
| Return on average assets | 1.27 | % | 1.27 | % | 1.18 | % | 1.39 | % | 1.04 | % | |||||
| Return on average equity | 14.57 | 14.66 | 13.71 | 16.31 | 12.54 | ||||||||||
| Efficiency ratio (1) | 58.86 | 59.67 | 62.20 | 59.09 | 62.82 | ||||||||||
| As a Percent of Average Interest-Earning Assets (1) | |||||||||||||||
| Interest income | 5.38 | % | 5.35 | % | 5.28 | % | 5.37 | % | 5.48 | % | |||||
| Interest expense | 1.84 | 1.77 | 1.79 | 1.92 | 2.11 | ||||||||||
| Net interest income | 3.54 | 3.58 | 3.49 | 3.45 | 3.37 | ||||||||||
| Average Balances | |||||||||||||||
| Loans | $ | 4,201,557 | $ | 4,128,771 | $ | 4,060,941 | $ | 3,994,661 | $ | 3,909,954 | |||||
| Securities | 826,362 | 846,052 | 883,676 | 912,073 | 933,750 | ||||||||||
| Total earning assets | 5,159,681 | 5,036,090 | 5,078,596 | 5,007,566 | 4,985,842 | ||||||||||
| Total assets | 5,451,922 | 5,324,959 | 5,378,022 | 5,300,368 | 5,275,623 | ||||||||||
| Deposits | 4,786,408 | 4,646,639 | 4,715,331 | 4,655,091 | 4,616,119 | ||||||||||
| Interest bearing liabilities | 3,862,024 | 3,763,477 | 3,799,852 | 3,717,483 | 3,689,684 | ||||||||||
| Shareholders' equity | 476,422 | 461,720 | 461,291 | 450,214 | 438,077 |
(1)Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data (continued)
| September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | September 30,<br>2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (unaudited) | |||||||||||||||
| (Dollars in thousands except per share data) | |||||||||||||||
| End of Period | |||||||||||||||
| Capital | |||||||||||||||
| Tangible common equity ratio | 8.44 | % | 8.16 | % | 8.26 | % | 8.00 | % | 8.08 | % | |||||
| Tangible common equity ratio excluding accumulated other comprehensive loss | 9.35 | 9.24 | 9.31 | 9.10 | 8.99 | ||||||||||
| Average equity to average assets | 8.74 | 8.67 | 8.58 | 8.49 | 8.30 | ||||||||||
| Total capital to risk-weighted assets (2) | 13.67 | 14.20 | 14.51 | 14.22 | 14.25 | ||||||||||
| Tier 1 capital to risk-weighted assets (2) | 12.42 | 12.23 | 12.34 | 12.06 | 12.06 | ||||||||||
| Common equity tier 1 capital to risk-weighted assets (2) | 11.55 | 11.36 | 11.45 | 11.17 | 11.16 | ||||||||||
| Tier 1 capital to average assets (2) | 10.07 | 10.07 | 9.89 | 9.85 | 9.63 | ||||||||||
| Common shareholders' equity per share of common stock | $ | 23.72 | $ | 22.65 | $ | 22.28 | $ | 21.76 | $ | 21.65 | |||||
| Tangible common equity per share of common stock | 22.29 | 21.23 | 20.87 | 20.33 | 20.22 | ||||||||||
| Total shares outstanding | 20,691,604 | 20,715,650 | 20,970,115 | 20,895,714 | 20,893,800 | ||||||||||
| Selected Balances | |||||||||||||||
| Loans | $ | 4,198,283 | $ | 4,164,367 | $ | 4,072,691 | $ | 4,038,825 | $ | 3,942,287 | |||||
| Securities | 824,033 | 838,813 | 866,604 | 898,618 | 932,312 | ||||||||||
| Total earning assets | 5,204,380 | 5,105,579 | 5,031,975 | 5,024,083 | 4,964,784 | ||||||||||
| Total assets | 5,493,113 | 5,418,519 | 5,328,428 | 5,338,104 | 5,259,268 | ||||||||||
| Deposits | 4,859,155 | 4,659,359 | 4,633,931 | 4,654,088 | 4,626,875 | ||||||||||
| Interest bearing liabilities | 3,897,487 | 3,832,845 | 3,768,435 | 3,764,832 | 3,682,482 | ||||||||||
| Shareholders' equity | 490,742 | 469,250 | 467,277 | 454,686 | 452,369 |
(2)September 30, 2025 are Preliminary.
Reconciliation of Non-GAAP Financial Measures
Independent Bank Corporation
Independent 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 September 30, | Nine Months Ended September 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||||||
| (Dollars in thousands) | ||||||||||||
| Net Interest Margin, Fully Taxable Equivalent ("FTE") | ||||||||||||
| Net interest income | $ | 45,361 | $ | 41,854 | $ | 133,661 | $ | 123,397 | ||||
| Add: taxable equivalent adjustment | 443 | 158 | 1,339 | 513 | ||||||||
| Net interest income - taxable equivalent | $ | 45,804 | $ | 42,012 | $ | 135,000 | $ | 123,910 | ||||
| Net interest margin (GAAP) (1) | 3.51 | % | 3.35 | % | 3.50 | % | 3.34 | % | ||||
| Net interest margin (FTE) (1) | 3.54 | % | 3.37 | % | 3.54 | % | 3.35 | % |
(1)Annualized.
Tangible Common Equity Ratio
| September 30,<br>2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | |||||||||||||||
| Common shareholders' equity | $ | 490,742 | $ | 469,250 | $ | 467,277 | $ | 454,686 | $ | 452,369 | |||||
| Less: | |||||||||||||||
| Goodwill | 28,300 | 28,300 | 28,300 | 28,300 | 28,300 | ||||||||||
| Other intangibles, net | 1,123 | 1,244 | 1,366 | 1,488 | 1,617 | ||||||||||
| Tangible common equity | 461,319 | 439,706 | 437,611 | 424,898 | 422,452 | ||||||||||
| Addition: | |||||||||||||||
| Accumulated other comprehensive loss for regulatory purposes | 54,833 | 64,089 | 61,285 | 64,146 | 52,454 | ||||||||||
| Tangible common equity excluding accumulated other comprehensive loss adjustments | $ | 516,152 | $ | 503,795 | $ | 498,896 | $ | 489,044 | $ | 474,906 | |||||
| Total assets | $ | 5,493,113 | $ | 5,418,519 | $ | 5,328,428 | $ | 5,338,104 | $ | 5,259,268 | |||||
| Less: | |||||||||||||||
| Goodwill | 28,300 | 28,300 | 28,300 | 28,300 | 28,300 | ||||||||||
| Other intangibles, net | 1,123 | 1,244 | 1,366 | 1,488 | 1,617 | ||||||||||
| Tangible assets | 5,463,690 | 5,388,975 | 5,298,762 | 5,308,316 | 5,229,351 | ||||||||||
| Addition: | |||||||||||||||
| Net unrealized losses on available for sale securities and derivatives, net of tax | 54,833 | 64,089 | 61,285 | 64,146 | 52,454 | ||||||||||
| Tangible assets excluding accumulated other comprehensive loss adjustments | $ | 5,518,523 | $ | 5,453,064 | $ | 5,360,047 | $ | 5,372,462 | $ | 5,281,805 | |||||
| Common equity ratio | 8.93 | % | 8.66 | % | 8.77 | % | 8.52 | % | 8.60 | % | |||||
| Tangible common equity ratio | 8.44 | % | 8.16 | % | 8.26 | % | 8.00 | % | 8.08 | % | |||||
| Tangible common equity ratio excluding accumulated other comprehensive loss | 9.35 | % | 9.24 | % | 9.31 | % | 9.10 | % | 8.99 | % | |||||
| Tangible Common Equity per Share of Common Stock: | |||||||||||||||
| Common shareholders' equity | $ | 490,742 | $ | 469,250 | $ | 467,277 | $ | 454,686 | $ | 452,369 | |||||
| Tangible common equity | $ | 461,319 | $ | 439,706 | $ | 437,611 | $ | 424,898 | $ | 422,452 | |||||
| Shares of common stock outstanding (in thousands) | 20,692 | 20,716 | 20,970 | 20,896 | 20,894 | ||||||||||
| Common shareholders' equity per share of common stock | $ | 23.72 | $ | 22.65 | $ | 22.28 | $ | 21.76 | $ | 21.65 | |||||
| Tangible common equity per share of common stock | $ | 22.29 | $ | 21.23 | $ | 20.87 | $ | 20.33 | $ | 20.22 |
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.
9
Document
Exhibit 99.2
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data
Non-performing assets
| September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | |||||||||||||||
| Non-accrual loans | $ | 22,598 | $ | 10,453 | $ | 9,026 | $ | 7,792 | $ | 7,250 | |||||
| Loans 90 days or more past due and still accruing interest | — | — | — | — | — | ||||||||||
| Subtotal | 22,598 | 10,453 | 9,026 | 7,792 | 7,250 | ||||||||||
| Less: Government guaranteed loans | 2,243 | 2,249 | 1,940 | 1,790 | 2,102 | ||||||||||
| Total non-performing loans | 20,355 | 8,204 | 7,086 | 6,002 | 5,148 | ||||||||||
| Other real estate and repossessed assets | 589 | 426 | 413 | 938 | 781 | ||||||||||
| Total non-performing assets | $ | 20,944 | $ | 8,630 | $ | 7,499 | $ | 6,940 | $ | 5,929 | |||||
| As a percent of Portfolio Loans | |||||||||||||||
| Non-performing loans | 0.48 | % | 0.20 | % | 0.17 | % | 0.15 | % | 0.13 | % | |||||
| Allowance for credit losses | 1.49 | 1.47 | 1.47 | 1.47 | 1.46 | ||||||||||
| Non-performing assets to total assets | 0.38 | 0.16 | 0.14 | 0.13 | 0.11 | ||||||||||
| Allowance for credit losses as a percent of non-performing loans | 306.85 | 745.45 | 847.23 | 989.32 | 1,115.85 |
Allowance for credit losses
| Nine months ended September 30, | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||||||||
| Loans | Securities | Unfunded<br>Commitments | Loans | Securities | Unfunded<br>Commitments | |||||||||
| (Dollars in thousands) | ||||||||||||||
| Balance at beginning of period | $ | 59,379 | $ | 132 | $ | 5,131 | $ | 54,658 | $ | 157 | $ | 5,504 | ||
| Additions (deductions) | ||||||||||||||
| Provision for credit losses | 4,252 | (40) | — | 3,400 | (1,149) | — | ||||||||
| Recoveries credited to allowance | 1,604 | — | — | 2,106 | 1,125 | — | ||||||||
| Assets charged against the allowance | (2,776) | — | — | (2,720) | — | — | ||||||||
| Recoveries included in non-interest expense | — | — | (190) | — | — | (676) | ||||||||
| Balance at end of period | $ | 62,459 | $ | 92 | $ | 4,941 | $ | 57,444 | $ | 133 | $ | 4,828 | ||
| Net loans charged against the allowance to average Portfolio Loans | 0.04 | % | 0.02 | % | ||||||||||
| 1 | ||||||||||||||
| --- |
Capitalization
| September 30, 2025 | December 31, 2024 | |||
|---|---|---|---|---|
| (In thousands) | ||||
| Subordinated debt | $ | — | $ | 39,586 |
| Subordinated debentures | 39,847 | 39,796 | ||
| Amount not qualifying as regulatory capital | (1,224) | (810) | ||
| Amount qualifying as regulatory capital | 38,623 | 78,572 | ||
| Shareholders’ equity | ||||
| Common stock | 311,770 | 318,777 | ||
| Retained earnings | 239,602 | 205,853 | ||
| Accumulated other comprehensive loss | (60,630) | (69,944) | ||
| Total shareholders’ equity | 490,742 | 454,686 | ||
| Total capitalization | $ | 529,365 | $ | 533,258 |
Non-Interest Income
| Three months ended | Nine months ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2025 | June 30, 2025 | September 30, 2024 | September 30, | ||||||||
| 2025 | 2024 | ||||||||||
| (In thousands) | |||||||||||
| Interchange income | $ | 4,157 | $ | 3,390 | $ | 4,146 | $ | 10,674 | $ | 10,698 | |
| Service charges on deposit accounts | 3,131 | 2,981 | 3,085 | 8,926 | 8,894 | ||||||
| Net gains (losses) on assets | |||||||||||
| Mortgage loans | 1,474 | 1,631 | 2,177 | 5,408 | 4,874 | ||||||
| Equity securities at fair value | — | — | (8) | — | 2,685 | ||||||
| Securities | (36) | 11 | (145) | (355) | (414) | ||||||
| Mortgage loan servicing, net | 74 | 490 | (3,130) | (72) | 1,686 | ||||||
| Investment and insurance commissions | 940 | 810 | 882 | 2,504 | 2,524 | ||||||
| Bank owned life insurance | 288 | 296 | 197 | 881 | 566 | ||||||
| Other | 1,909 | 1,716 | 2,304 | 5,720 | 5,728 | ||||||
| Total non-interest income | $ | 11,937 | $ | 11,325 | $ | 9,508 | $ | 33,686 | $ | 37,241 |
Capitalized Mortgage Loan Servicing Rights
| Three months ended September 30, | Nine months ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| (In thousands) | ||||||||
| Balance at beginning of period | $ | 32,053 | $ | 44,406 | $ | 46,796 | $ | 42,243 |
| Originated servicing rights capitalized | 948 | 1,176 | 2,766 | 2,956 | ||||
| Change in fair value | (1,479) | (5,378) | (4,984) | (4,995) | ||||
| Sale of originated servicing rights (1) | 61 | — | (12,823) | — | ||||
| Loss on sale of originated servicing rights (1) | (61) | — | (233) | — | ||||
| Balance at end of period | $ | 31,522 | $ | 40,204 | $ | 31,522 | $ | 40,204 |
(1) On January 31, 2025 we sold $931.6 million of mortgage loan servicing rights (26.3% of total servicing portfolio) and transferred the servicing on March 3, 2025. This sale represented approximately $13.1 million (27.9%) of the total capitalized mortgage loan servicing right asset.
| 2 |
|---|
Mortgage Loan Activity
| Three months ended | Nine months ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2025 | June 30, 2025 | September 30, 2024 | September 30, | |||||||||||||
| 2025 | 2024 | |||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Mortgage loans originated | $ | 145,561 | $ | 147,844 | $ | 147,516 | $ | 401,184 | $ | 384,112 | ||||||
| Mortgage loans sold | 101,615 | 95,360 | 117,037 | 279,593 | 289,395 | |||||||||||
| Net gains on mortgage loans | 1,474 | 1,631 | 2,177 | 5,408 | 4,874 | |||||||||||
| Net gains as a percent of mortgage loans sold ("Loan Sales Margin") | 1.45 | % | 1.71 | % | 1.86 | % | 1.93 | % | 1.68 | % | ||||||
| Fair value adjustments included in the Loan Sales Margin | 0.03 | % | 0.12 | % | 0.46 | % | 0.32 | % | 0.30 | % |
Non-Interest Expense
| Three months ended | Nine months ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2025 | June 30, 2025 | September 30, 2024 | September 30, | ||||||||
| 2025 | 2024 | ||||||||||
| (In thousands) | |||||||||||
| Compensation | $ | 13,916 | $ | 13,610 | $ | 13,264 | $ | 40,723 | $ | 39,931 | |
| Performance-based compensation | 2,900 | 3,638 | 3,426 | 9,979 | 10,787 | ||||||
| Payroll taxes and employee benefits | 4,309 | 3,875 | 3,358 | 11,929 | 11,351 | ||||||
| Compensation and employee benefits | 21,125 | 21,123 | 20,048 | 62,631 | 62,069 | ||||||
| Data processing | 3,784 | 3,847 | 3,379 | 11,360 | 9,891 | ||||||
| Occupancy, net | 2,127 | 2,046 | 1,893 | 6,396 | 5,853 | ||||||
| Interchange expense | 1,180 | 1,177 | 1,149 | 3,476 | 3,373 | ||||||
| Furniture, fixtures and equipment | 892 | 793 | 932 | 2,570 | 2,834 | ||||||
| Advertising | 526 | 833 | 581 | 2,220 | 1,860 | ||||||
| Loan and collection | 618 | 744 | 657 | 2,148 | 1,868 | ||||||
| FDIC deposit insurance | 615 | 637 | 664 | 1,963 | 2,141 | ||||||
| Legal and professional | 682 | 500 | 687 | 1,661 | 1,717 | ||||||
| Communications | 465 | 470 | 519 | 1,526 | 1,633 | ||||||
| Taxes, licenses and fees | 335 | 290 | 347 | 951 | 891 | ||||||
| Director fees | 265 | 276 | 235 | 773 | 709 | ||||||
| Amortization of intangible assets | 121 | 122 | 129 | 365 | 387 | ||||||
| Provision (recovery) for loss reimbursement on sold loans | (5) | (6) | 24 | (22) | 26 | ||||||
| Net (gains) losses on other real estate and repossessed assets | 39 | (50) | 14 | (77) | (170) | ||||||
| Other | 1,362 | 960 | 1,325 | 4,214 | 3,027 | ||||||
| Total non-interest expense | $ | 34,131 | $ | 33,762 | $ | 32,583 | $ | 102,155 | $ | 98,109 | |
| 3 | |||||||||||
| --- |
Average Balances and Tax Equivalent Rates
| Three Months Ended September 30, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||||||
| Average<br>Balance | Interest | Rate (2) | Average<br>Balance | Interest | Rate (2) | |||||||
| (Dollars in thousands) | ||||||||||||
| Assets | ||||||||||||
| Taxable loans | $ | 4,193,925 | $ | 61,250 | 5.81 | % | $ | 3,901,370 | $ | 58,322 | 5.96 | % |
| Tax-exempt loans (1) | 7,632 | 95 | 4.95 | 8,584 | 111 | 5.14 | ||||||
| Taxable securities | 573,333 | 3,660 | 2.55 | 665,974 | 4,502 | 2.70 | ||||||
| Tax-exempt securities (1) | 253,029 | 3,190 | 5.04 | 267,776 | 3,539 | 5.29 | ||||||
| Interest bearing cash | 113,660 | 1,261 | 4.40 | 126,039 | 1,717 | 5.42 | ||||||
| Other investments | 18,102 | 277 | 6.12 | 16,099 | 301 | 7.48 | ||||||
| Interest Earning Assets | 5,159,681 | 69,733 | 5.38 | 4,985,842 | 68,492 | 5.48 | ||||||
| Cash and due from banks | 58,099 | 57,211 | ||||||||||
| Other assets, net | 234,143 | 232,570 | ||||||||||
| Total Assets | $ | 5,451,923 | $ | 5,275,623 | ||||||||
| Liabilities | ||||||||||||
| Savings and interest-bearing checking | 2,850,176 | 13,282 | 1.85 | 2,763,558 | 15,621 | 2.25 | ||||||
| Time deposits | 930,358 | 8,690 | 3.71 | 804,944 | 8,841 | 4.37 | ||||||
| Other borrowings | 81,490 | 1,957 | 9.57 | 121,182 | 2,018 | 6.64 | ||||||
| Interest Bearing Liabilities | 3,862,024 | 23,929 | 2.46 | % | 3,689,684 | 26,480 | 2.86 | |||||
| Non-interest bearing deposits | 1,005,875 | 1,047,617 | ||||||||||
| Other liabilities | 107,602 | 100,245 | ||||||||||
| Shareholders’ equity | 476,422 | 438,077 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 5,451,923 | $ | 5,275,623 | ||||||||
| Net Interest Income | $ | 45,804 | $ | 42,012 | ||||||||
| Net Interest Income as a Percent of Average Interest Earning Assets | 3.54 | % | 3.37 | % | ||||||||
| (1) | Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%. | |||||||||||
| --- | --- | |||||||||||
| (2) | Annualized | |||||||||||
| 4 | ||||||||||||
| --- |
Average Balances and Tax Equivalent Rates
| Nine Months Ended September 30, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||||||
| Average<br>Balance | Interest | Rate | Average<br>Balance | Interest | Rate (2) | |||||||
| (Dollars in thousands) | ||||||||||||
| Assets | ||||||||||||
| Taxable loans | $ | 4,123,797 | $ | 178,407 | 5.78 | % | $ | 3,848,092 | $ | 169,974 | 5.90 | % |
| Tax-exempt loans (1) | 7,141 | 280 | 5.25 | 8,660 | 335 | 5.17 | ||||||
| Taxable securities | 594,769 | 11,491 | 2.58 | 691,327 | 14,466 | 2.79 | ||||||
| Tax-exempt securities (1) | 257,051 | 9,590 | 4.97 | 267,689 | 10,638 | 5.30 | ||||||
| Interest bearing cash | 92,263 | 3,058 | 4.43 | 97,941 | 3,994 | 5.45 | ||||||
| Other investments | 16,731 | 825 | 6.57 | 16,452 | 904 | 7.33 | ||||||
| Interest Earning Assets | 5,091,752 | 203,651 | 5.34 | 4,930,161 | 200,311 | 5.42 | ||||||
| Cash and due from banks | 56,073 | 54,481 | ||||||||||
| Other assets, net | 237,413 | 235,026 | ||||||||||
| Total Assets | $ | 5,385,238 | $ | 5,219,668 | ||||||||
| Liabilities | ||||||||||||
| Savings and interest-bearing checking | 2,827,773 | 38,731 | 1.83 | 2,690,359 | 43,178 | 2.14 | ||||||
| Time deposits | 887,385 | 24,658 | 3.72 | 825,984 | 26,970 | 4.37 | ||||||
| Other borrowings | 93,520 | 5,262 | 7.51 | 126,861 | 6,253 | 6.58 | ||||||
| Interest Bearing Liabilities | 3,808,678 | 68,651 | 2.41 | % | 3,643,204 | 76,401 | 2.80 | |||||
| Non-interest bearing deposits | 1,001,228 | 1,053,719 | ||||||||||
| Other liabilities | 108,799 | 104,057 | ||||||||||
| Shareholders’ equity | 466,533 | 418,688 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 5,385,238 | $ | 5,219,668 | ||||||||
| Net Interest Income | $ | 135,000 | $ | 123,910 | ||||||||
| Net Interest Income as a Percent of Average Interest Earning Assets | 3.54 | % | 3.35 | % | ||||||||
| (1) | Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%. | |||||||||||
| --- | --- | |||||||||||
| 5 | ||||||||||||
| --- |
Commercial Loan Portfolio Analysis as of September 30, 2025
| Total Commercial Loans | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Watch Credits | Percent of Loan Category in Watch Credit | |||||||||
| Loan Category | All Loans | Performing | Non-accrual | Total | ||||||
| (Dollars in thousands) | ||||||||||
| Land | $ | 11,845 | $ | 16 | $ | — | $ | 16 | 0.1 | % |
| Land Development | 19,877 | — | — | — | — | |||||
| Construction | 149,259 | — | 13,825 | 13,825 | 9.3 | |||||
| Income Producing | 738,924 | 39,522 | — | 39,522 | 5.3 | |||||
| Owner Occupied | 642,277 | 8,299 | — | 8,299 | 1.3 | |||||
| Total Commercial Real Estate Loans | $ | 1,562,182 | $ | 47,837 | $ | 13,825 | $ | 61,662 | 3.9 | |
| Other Commercial Loans | $ | 562,871 | $ | 21,100 | — | $ | 21,100 | 3.7 | ||
| Total non-performing commercial loans | $ | 13825 |
Commercial Loan Portfolio Analysis as of December 31, 2024
| Total Commercial Loans | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Watch Credits | Percent of Loan Category in Watch Credit | |||||||||||
| Loan Category | All Loans | Performing | Non-accrual | Total | ||||||||
| (Dollars in thousands) | ||||||||||||
| Land | $ | 8,734 | $ | — | $ | — | $ | — | 0.0 | % | ||
| Land Development | 24,637 | — | — | — | — | |||||||
| Construction | 201,474 | 16,589 | — | 16,589 | 8.2 | |||||||
| Income Producing | 624,499 | 22,286 | — | 22,286 | 3.6 | |||||||
| Owner Occupied | 544,829 | 18,396 | 47 | 18,443 | 3.4 | |||||||
| Total Commercial Real Estate Loans | $ | 1,404,173 | $ | 57,271 | $ | 47 | $ | 57,318 | 4.1 | |||
| Other Commercial Loans | $ | 533,190 | $ | 27,334 | 7 | $ | 27,341 | 5.1 | ||||
| Total non-performing commercial loans | $ | 54 | 6 | |||||||||
| --- |
ibcp20253qearningsdeck-f
Earnings Call: Third Quarter 2025 October 28, 2025 (NASDAQ: IBCP)
Cautionary note regarding 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, 2024 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. 2 2
• Formal Remarks − William B. (Brad) Kessel President and Chief Executive Officer − Gavin A. Mohr Executive Vice President and Chief Financial Officer − Joel F. Rahn Executive Vice President – Commercial Banking • Question and Answer session • Closing Remarks Note: This presentation is available at www.IndependentBank.com in the Investor Relations area under the “Presentations” tab. Agenda 3
3Q'25 Overview • Total loans increased 3.2% annualized while maintaining a disciplined approach to new loan production • New loan production continues to be largely focused on new commercial clients that bring deposits to the bank • Asset quality remained exceptional with NPAs/Total Assets at 0.38% and NCO of 0.07% of average loans in the quarter • Generated a ROAA and ROAE of 1.27% and 14.57%, respectively • Net interest margin of 3.54% compared to 3.37% in the prior year quarter • Commercial loan growth of 10.9% annualized • Efficiency ratio of 58.86% compared to 62.82% in the prior year quarter • Tangible book value per share increased 19.8% annualized from end of prior quarter • Redemption of $40 million of subordinated debt • Balance sheet liquidity remains strong with loan-to-deposit ratio of 86% • Net income of $17.5 million, or $0.84 per diluted share • Increase in net interest income of $3.5 million over the prior year quarter and $0.7 million over the second quarter of 2025 • Strong profitability and prudent balance sheet management results 10.2% growth in tangible book value per share compared to the prior year quarter. Healthy Capital & Liquidity Positions Positive Trends in Key Metrics Solid Loan Growth and Strong Asset Quality 3Q'25 Earnings 4 4
Non-interest Bearing 21% Savings and Interest- bearing Checking 42% Reciprocal 20% Time 14% Brokered 4% $4 .5 $4 .6 $4 .6 $4 .6 $4 .6 $4 .6 $4 .7 $4 .6 $4 .7 $4 .9 1. 5 7 % 1. 8 0 % 1. 9 9% 2. 0 1% 2. 0 3% 2. 11 % 1. 9 3% 1. 8 0% 1. 7 7% 1. 8 2% Q 2' 23 Q 3' 23 Q 4' 23 Q 1' 24 Q 2' 24 Q 3' 24 Q 4' 24 Q 1' 25 Q 2' 25 Q 3' 25 Total Deposits Cost Of Deposits Low-Cost Deposit Franchise Focused on Core Deposit Growth • Substantial core funding – $4.03 billion of non-maturity deposit accounts (82.8% of total deposits). • Core deposit increase of $148.2 million (13.0% annualized) in 3Q'25. • Time deposit increase of $32.8million (20.7% annualized) in 3Q'25. • Total deposits increased $205.1 million (4.4%) since 12/31/24 with non-interest bearing down $10.1 million, savings and interest- bearing checking up $45.1 million, reciprocal up $74.1 million, time up $32.5 million and brokered time up $63.4 million. • Deposits by Customer Type: − Retail – 46% − Commercial – 37% − Municipal – 17% Deposit Composition 9/30/25 Cost of Deposits (%)/Total Deposits ($B) 5 Core Deposits: 82.8% $4.9B
- 2 5% 0. 2 7% 0. 2 7% 0. 2 8% 0. 3 3% 0. 3 6% 0. 4 2% 0. 5 1% 0. 6 0% 0. 7 3% 0. 8 2% 0. 8 5% 0. 8 5% 0. 7 4% 0. 6 3% 0. 3 0% 0. 2 3% 0. 3 9% 0. 1 4% 0. 1 2% 0. 11 % 0. 1 0% 0. 1 0% 0. 1 2% 0. 3 3% 0. 7 9% 1. 2 5% 1. 5 7% 1. 8 0% 1. 9 9% 2. 0 1% 2. 0 2% 2. 1 0% 1. 9 2% 1. 8 0% 1. 7 6% 1. 8 2% 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% S e p -1 6 D ec -1 6 M a r- 1 7 J u n -1 7 S e p -1 7 D ec -1 7 M a r- 1 8 J u n -1 8 S e p -1 8 D ec -1 8 M a r- 1 9 J u n -1 9 S e p -1 9 D ec -1 9 M a r- 2 0 J u n -2 0 S e p -2 0 D ec -2 0 M a r- 2 1 J u n -2 1 S e p -2 1 D ec -2 1 M a r- 2 2 J u n -2 2 S e p -2 2 D ec -2 2 M a r- 2 3 J u n -2 3 S e p -2 3 D ec -2 3 M a r- 2 4 J u n -2 4 S e p -2 4 D ec -2 4 M a r- 2 5 J u n -2 5 S e p -2 5 Historic IBC Cost of Funds (excluding sub debt) vs. the Federal Funds Rate (with Deposit Balances) D e po si t B a la nc es ( $ in th o us an ds ) 6 F e de ra l F un ds R at e Account Type Cycle Beta Sav & Int-bearing chking 20.1% Reciprocal 69.3% Time 53.9% Total int-bearing Dep (excl brokered) 40.5% Total COF IBC (excl Sub Debt) 28.2% IBC COF Fed Funds Spot Fed Effective Total Deposits
Commercial 50% Mortgage 36% Installment 13% Held for Sale 1% $3 .6 $3 .7 $3 .8 $3 .8 $3 .9 $3 .9 $4 .0 $4 .1 $4 .2 $4 .2 5. 36 % 5. 53 % 5. 73 % 5. 80 % 5. 93 % 5. 96 % 5. 83 % 5. 74 % 5. 76 % 5. 81 % 2 Q '2 3 3 Q '2 3 4 Q '2 3 1 Q '2 4 2 Q '2 4 3 Q '2 4 4 Q '2 4 1 Q '2 5 2 Q '2 5 3 Q '2 5 Total Portfolio Loans Yield on Loans Diversified Loan Portfolio Focused on High Quality Growth • Portfolio loan changes in 3Q'25: − Commercial – increased $57.0 million. …Average new origination yield of 6.88% vs a 6.39% portfolio yield. − Mortgage – decreased $10.7 million. …Average new origination yield of 6.65% vs a 4.89% portfolio yield. − Installment – decreased $12.4 million. …Average new origination yield of 7.22% vs a 5.18% portfolio yield. • Mortgage loan portfolio weighted average FICO of 752 and average balance of $186,217. • Installment weighted average FICO of 756 and average balance of $25,856. • Commercial loan rate mix: − 39% fixed / 61% variable. − Indices – 38% tied to Prime and 62% tied to SOFR. • Mortgage loan (including HELOC) rate mix: − 61% fixed / 39% adjustable or variable. − 8% tied to a US Treasury rate and 92% tied to SOFR.Note: Portfolio loans exclude loans HFS. Loan Composition 9/30/25 Yield on Loans (%)/ Total Portfolio Loans ($B) 7 $4.2B
8.76%, Commercial Industrial, $186 4.68%, Retail, $100 4.47%, Office, $95 4.17%, Constructi on, $89 3.37%, Multifamily, $72 2.20%, 1-4 Family, $47 1.27%, Land, Vacant Land and Development, $27 1.14%, Special Purpose, $24 Concentrations within $2.1B Commercial Loan Portfolio C&I or Owner Occupied Loans by Industry as a % of Total Commercial Loans ($ in millions) Investor RE by Collateral Type as a % of Total Commercial Loans ($ in millions) Note: $1.486 billion, or 69.9% of the commercial loan portfolio is C&I or owner occupied, while $639 million, or 30.1% is investment real estate. The percentage concentrations are based on the entire commercial portfolio of $2.1 billion as of September 30, 2025 8 $639MM 30% 8.97% 191 8.77% 186 8.36% 178 7.74% 1646.05% 128 4.97% 106 4.61% 98 3.49% 74 2.92% 62 53 49 197 $1,486MM 70% Retail Construction Manufacturing Health Care and Social Assistance Real Estate Rental and Leasing Hotel and Accomodations Other Services (except Public Administration) Wholesale Finance and Insurance Transportation Professional, Scientific, and Technical Services Misc 2.34% 9.35% 2.94%
$5.1 $3.7 $5.2 $5.1 $6.0 $7.1 $8.2 $20.4 $0.2 $0.5 $0.6 $0.8 $0.9 $0.4 $0.4 $0.6 $- $5.0 $10.0 $15.0 $20.0 $25.0 2021 2022 2023 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 Non-performing Loans 90+ Days PD ORE/ORA $2.3 $3.1 $3.3 $4.8 $7.0 $3.9 $6.6 $5.1 0.1% 0.1% 0.1% 0.1% 0.2% 0.1% 0.2% 0.1% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2021 2022 2023 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 30-89 Days PD 30-89 Days PD / Total Loans $0.2 $0.5 $0.6 $0.8 $0.9 $0.4 $0.4 $0.6 $- $0.2 $0.4 $0.6 $0.8 $1.0 2021 2022 2023 Q3'24 4Q'24 1Q'25 2Q'25 3Q'25 $5.1 $3.7 $5.2 $5.1 $6.0 $7.1 $8.2 $20.4 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% 0.5% -0.1% 0.1% 0.3% 0.5% 0.7% 0.9% $- $5.0 $10.0 $15.0 $20.0 $25.0 2021 2022 2023 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Non-performing Loans (NPLs) NPLs / Total Loans Note 1: Non-performing loans and non-performing assets exclude troubled debt restructurings that are performing. Credit Quality Summary Non-performing Loans ($ in Millions) ORE/ORA ($ in Millions) 30 to 89 Days Delinquent ($ in Millions) Non-performing Assets ($ in Millions) 9
14.2 14.3 14.2 14.5 14.2 13.7 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 11.1 11.2 11.2 11.4 11.4 11.6 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 9.6 9.6 9.9 9.9 10.1 10.1 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 7.6 8.1 8.0 8.3 8.2 8.4 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 • Long-term capital Priorities: Capital retention to support organic growth, acquisitions and return of capital through strong and consistent dividends and share repurchases. • Well capitalized in all regulatory capital measurements. • Tangible common equity ratio excluding the impact of unrealized losses on securities AFS and HTM is 9.4% • The reduction in Total RBC in 3Q’25 was due primarily to the redemption of $40 million in subordinated debt on August 31, 2025. Strong Capital Position TCE / TA (%) Leverage Ratio (%) CET1 Ratio (%) Total RBC Ratio (%) 10
$3 3 .0 $3 6 .1 $3 9 .9 $4 0 .6 $3 8 .4 $3 8 .4 $3 9 .4 $4 0 .1 $4 0 .2 $4 1 .3 $4 1 .9 $4 2 .9 $4 3 .7 $4 4 .6 $4 5 .4 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 3.18 3.13 3.00 3.26 3.49 3.52 3.33 3.26 3.23 3.26 3.30 3.40 3.37 3.45 3.49 3.58 3.54 0.08 0.08 0.12 0.77 2.18 3.65 4.38 4.99 5.26 5.33 5.33 5.33 5.16 4.66 4.33 4.33 4.30 0.11 0.10 0.10 0.12 0.45 0.92 1.39 1.72 1.93 2.11 2.14 2.16 2.22 2.02 1.86 1.86 1.95 0 1 2 3 4 5 6 Q 3 '2 1 Q 4 '2 1 Q 1 '2 2 Q 2 '2 2 Q 3 '2 2 Q 4 '2 2 Q 1 '2 3 Q 2 '2 3 Q 3 '2 3 Q 4 '2 3 Q 1 '2 4 Q 2 '2 4 Q 3 '2 4 Q 4 '2 4 Q 1 '2 5 Q 2 '2 5 Q 3 '2 5 Net Interest Margin (FTE) Average Effective FF Yield Cost of Funds Net Interest Margin/Income • Net interest income was $45.4 million in 3Q'25 compared to $41.9 million in the prior year quarter. The change is due to an increase in average earning assets and the net interest margin compared to the year- ago quarter. • Net interest margin was 3.54% during the third quarter of 2025, compared to 3.37% in the year- ago quarter and 3.58% in the second quarter of 2025. • 9th consecutive quarter of increasing net interest income. Yields, NIM and Cost of Funds (%) Net Interest Income ($ in Millions) 11
3.58%2Q'25 0.02%Change in Earning Asset Yield/Mix 0.01%Increase in Earnings Asset Yield -0.04%Increase in funding costs -0.03%Deferred Cost on Sub Debt Payoff 3.54%3Q'25 Change2Q253Q25 YieldInc/ExpAvg BalYieldInc/ExpAvg BalYieldInc/ExpAvg Bal -0.05%$756 $68,192 4.45%$505 $45,468 4.40%$1,261 $113,660 Cash 0.00%(138)(17,387)3.37%7,265 861,851 3.38%7,127 844,464 Investments -0.04%1,337 71,871 6.60%33,446 2,031,778 6.56%34,783 2,103,649 Commercial loans 0.07%324 4,089 4.92%18,809 1,530,281 4.99%19,133 1,534,370 Mortgage loans 0.12%132 (3,174)5.15%7,297 566,712 5.27%7,429 563,538 Consumer loans 0.03%$2,411 $123,591 5.35%$67,322 $5,036,090 5.38%$69,733 $5,159,681 Earning assets 0.04%673 $53,475 1.81%$12,609 $2,796,701 1.85%$13,282 $2,850,176 Nonmaturity deposits 0.12%91 5,413 3.49%898 103,154 3.61%989 108,567 CDARS deposits 0.00%177 13,726 3.56%5,597 629,910 3.56%5,774 643,636 Retail Time deposits -0.01%570 51,446 4.30%1,358 126,709 4.29%1,928 178,155 Brokered deposits -0.61%(164)(13,065)4.41%303 27,566 3.80%139 14,501 Bank borrowings 3.26%319 (12,448)7.55%1,498 79,437 10.81%1,817 66,989 IBC debt 0.09%$1,666 $98,547 2.37%$22,263 $3,763,477 2.46%$23,929 $3,862,024 Cost of funds $25,044 $1,272,613 $1,297,657 Free funds $745 $45,059 $45,804 Net interest income -0.04%3.58%3.54%Net interest margin 3Q'25 NIM Changes Linked Quarter Average Balances and FTE Rates ($ in thousands) Linked Quarter Analysis 12
September 30, 2025 200100Base-rate -100-200 $198,049 $195,562 $192,535 $190,263 $188,085 Net Interest Income 2.86%1.57%-1.18%-2.31%Change from Base June 30, 2025 200100Base-rate -100-200 $192,391 $190,443 $187,528 $185,650 $184,556 Net Interest Income 2.59%1.55%-1.00%-1.58%Change from Base Interest Rate Risk Management • The base case modeled NII is slightly higher during the quarter given earning asset growth and slight margin expansion. Asset yields were augmented by a shift in asset mix with commercial loan growth largely funded by runoff of lower yielding investments, mortgages and consumer loans. An increase in overnight liquidity offset some of this mix benefit. Funding costs benefited from the retirement of the holding company subordinated debt issue. • The NII sensitivity position shows slightly more exposure to a declining rate environment. Asset repricing increased due to growth in variable rate commercial loans HELOCs and overnight liquidity. Some of the increase in asset repricing was offset by purchased floor. • Base-rate is a static balance sheet applying the spot yield curve from the valuation date. • Stable core funding base. Transaction accounts fund 37.6% of assets and other non- maturity deposits fund another 17.8% of assets. Low wholesale funding of just 3.9% of assets. • 38.4% of assets reprice in 1 month and 49.8% reprice in the next 12 months. • Continually evaluating strategies to manage NII through hedging, funding strategies as well as product pricing and structure. Changes in Net Interest Income (Dollars in 000’s) Simulation analyses calculate the change in net interest income over the next twelve months, under immediate parallel shifts in interest rates, based upon a static statement of financial condition, which includes derivative instruments, and does not consider loan fees. 13
Interchange income $4,157 Service Chg Dep $3,131 Gain (Loss)- Mortgage Sale $1,474 Equity Securities at Fair Value $- Gain (Loss)- Securities $(36) Mortgage loan servicing, net $74 Investment & insurance commissions $940 Bank owned life insurance $288 Other income $1,909 Strong Non-interest Income • The $3.2 million comparative quarterly increase in mortgage loan servicing, net is primarily attributed to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in mortgage loan interest rates and expected future prepayment levels. The decrease in servicing revenue is attributed to the sale of approximately $931 million of mortgage servicing rights on January 31, 2025. • Mortgage banking: − $1.5 million in net gains on mortgage loans in 3Q'25 vs. $2.2 million in the year ago quarter. The decrease is primarily due to lower profit margins on mortgage loan sales as well as lower loan sales volume. − $145.6 million in mortgage loan originations in 3Q'25 vs. $147.5 million in 3Q’24 and $147.8 million in 2Q'25. − 3Q'25 mortgage loan servicing includes a $0.6 million ($0.02) per diluted share, after tax) decrease in fair value adjustment due to price compared to a decrease of $4.2 million ($0.16 per diluted share, after tax) in the year ago quarter. Source: Company documents. 3Q'25 Non-interest Income (thousands) Non-interest Income Trends ($M) 14 $11.9MM $1 5. 4 $1 5. 6 $9 .1 $1 2. 6 $1 5. 2 $9 .5 $1 9. 1 $1 0. 4 $1 1. 3 $1 1. 9 18 .6 % 20 .0 % 12 .2 % 16 .2 % 18 .6 % 12 .2 % 22 .2 % 13 .6 % 14 .5 % 14 .7 % -5.0 5.0 15.0 25.0 35.0 45.0 55.0 $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 Q 2 '2 3 Q 3 '2 3 Q 4 '2 3 Q 1 '2 4 Q 2 '2 4 Q 3 '2 4 Q 4 '2 4 Q 1 '2 5 Q 2 '2 5 Q 3 '2 5 Non-interest Income Non-interest Inc/Operating Rev (%)
60 .4 % 59 .6 % 59 .9 % 60 .7 % 60 .3 % 60 .9 % 62 .2 % 60 .9 % 61 .4 % 60 .9 % 60 .0 % 1 Q '2 3 2 Q '2 3 3 Q '2 3 4 Q '2 3 1 Q '2 4 2 Q '2 4 3 Q '2 4 4 Q '2 4 1 Q '2 5 2 Q '2 5 3 Q '2 5 $3 2. 0 $3 1. 9 $3 2. 2 $3 3. 3 $3 2. 6 $3 4. 3 $3 3. 8 $3 4. 1 $— $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 Q 3 '2 3 Q 4 '2 3 Q 1 '2 4 Q 2 '2 4 Q 3 '2 4 Q 4 '2 4 Q 1 '2 5 Q 2 '2 5 Q 3 '2 5 Compensation and Benefits Loan and Collection Occupancy Data Processing FDIC Insurance Other Focus on Improved Efficiency • 3Q'25 efficiency ratio of 58.9%. • Compensation and employee benefits expense of $21.1 million, an increase of $1.1 million from the prior year quarter. • Performance-based compensation was $0.5 million lower than the prior year quarter. • Payroll taxes and employee benefits increased $1.0 million primarily due to higher healthcare related costs. • Data processing costs increased by $0.4 million primarily due to core data processor annual asset growth and CPI related cost increases as well as price increases in other software solutions. • Opportunities exist to gain additional efficiencies as we continue to optimize our delivery channels. Non-interest Expense ($M) Efficiency Ratio (4 quarter rolling average) Source: Company documents. 15 $3 7. 0
Outlook for 2025 • Very difficult area to forecast. Future provision levels under CECL will be particularly sensitive to loan growth and mix, projected economic conditions, watch credit levels and loan default volumes. • The allowance as a percentage of total loans was at 1.47% at 12/31/24 • A full year 2025 provision (expense) for credit losses of approximately 0.15%-0.20% of average total portfolio loans would not be unreasonable. • The forecast assumes 0.25% Fed rate cuts in March and August in the federal funds rate while long-term interest rates increase slightly over year-end 2024 levels. • IBCP forecast of high-single digit (8%-9%) growth is primarily supported by an increase in earning assets and a favorable shift in the earning asset base. Expect the net interest margin (NIM) to increase (0.20% - 0.25%) in 2025 compared to full-year 2024. Primary driver is a decrease in yield on interest bearing liabilities that is partially offset by a decrease in earning asset yield. • IBCP forecast of mid-single digit (approximately 5%-6%) overall loan growth is based on increases in commercial loans (9%-10%) and mortgage loans (2%-3%) with installment loans declining (2%-3%). • This growth forecast also assumes a stable Michigan economy. Outlook for 2025 *as of January, 2025 • The provision for credit losses was an expense of $2.0 million (0.19% annualized) for the third quarter within the forecasted range. • 3Q'25 net interest income was $3.5 million (8.4%) higher than the prior year quarter which is within the forecasted range. The net interest margin was 3.54% for the current quarter and 3.37% for the prior year quarter and down 0.04% from the linked quarter. • Total portfolio loans increased $33.9 million (3.2% annualized) in 3Q'25 which is below our forecasted range. Commercial loan growth of $57.0 million (10.9% annualized), mortgage loan decrease of $10.7 million (-2.8% annualized) and installment loan decrease of $12.4 million (-8.6% annualized). YTD loan growth of $159.5 million (5.3% annualized) which is within our forecasted range. 3Q’25 Update LENDING Continued growth NET INTEREST INCOME Growth driven primarily by higher average earning assets PROVISION FOR CREDIT LOSSES Steady asset quality metrics 16
Outlook for 2025 • 2025 share repurchase authorization at approximately 5% (1.1 million) of outstanding shares. • Share repurchases will be dependent on capital levels, capital allocation options and share price trends. We are not modeling any share repurchases in 2025. • Approximately a 19% effective income tax rate in 2025 This assumes a 21% statutory federal corporate income tax rate during 2025. • IBCP forecasts 2025 quarterly range of $34.5M to $35.5M with the total for the year up 3.0% to 4.0% from the 2024 actual of $135.1M. • The primary driver is an increase in compensation and employee benefits, data processing and occupancy. • Q1/Q2 quarterly 2025 forecasted range of $11.0M to $12.0M and Q3/Q4 forecast of $12.0M to $13M. Full year down 14.0% to 14.5% from 2024 actual of $56.4M • Expect mortgage loan origination volumes and net gain on sale to be similar to 2024. Assumes mortgage loan servicing net of approximately $0.75M per quarter in 2025. Outlook for 2025 *as of January, 2025 Repurchased 13,732 shares for an aggregate purchase price of $0.41 million in the third quarter of 2025. Actual effective income tax rate of 17.3% for the third quarter of 2025. • Total non-interest expense was $34.1 million in the 3Q'25, which was lower than our forecasted range. • Non-interest income totaled $11.9 million in 3Q'25, which is below the forecasted range. Mortgage loan servicing net, generated a gain of $0.1 million in 3Q'25. 3Q’25 Update NON-INTEREST INCOME NON-INTEREST EXPENSES INCOME TAXES SHARE REPURCHASES 17
Strategic Initiatives • Outside Sales - Relationship banking focus thru consistent calling on prospects and COI’s. • Inside Service/Sales – high retention + high cross sales, collaboration of strategic partners. • Digital Marketing - Leverage data insights, target strategically, elevate brand image, personalize the customer experience. • Leverage Referral Network – Fintech (ReferLive); • New Products – SMB deposit product, Business digital pmts. • Market Expansion – Through existing indirect dealer network. • Selective and opportunistic bank and branch acquisitions. • Process Automation – leverage core investments + Fintech partnerships: (Blend) mortgage; (Numerated) Commercial; • Branch Optimization - including assessing existing locations, new locations, service hours, staffing, & workflow and leveraging technology. • Promotion of Self-Serve Channels - (One Wallet, Treasury One, etc.) • Leverage Banker Capacity – including on-line appointment setting. • Leverage Middleware + API’s – expediate new technology implementation. • Optimize Office Space Utilization • Invest in our Team – competitive C&B offering, skill training, leadership development, etc. • High Employee Engagement – thru fostering a culture of purpose, opportunity, continuous learning, diversity, reward + recognition. • Promote Teamwork + Alignment across all business units. • Invest in technology - to enhance the employee experience + customer experience. • Client Service Model – well defined and applied. • Utilize three layers of defense (business unit, risk management and internal audit). Independent & collaborative approach. • Consistent earnings + maintain strong capital levels. • Proactive credit quality monitoring and problem resolution. • Manage Liquidity and IRR. • Manage Operational risk, emphasizing cyber security, fraud prevention, and regulatory compliance. • Effective relationships with regulators & other outside oversight parties. Proactive, transparent and good communication. PROCESS IMPROVEMENT & COST CONTROLS RISK MANAGEMENT GROWTH TALENT MANAGEMENT 18
Question and Answer Session Closing Remarks NASDAQ: IBCP Thank you for attending 19
Appendix Additional Financial Data and Non-GAAP Reconciliations 20
Quarter Ended,Year Ended December 31,here 9/30/256/30/253/31/2512/31/249/30/242024202320222021($M except per share data) Balance Sheet: $5,493 $5,419 $5,328 $5,338 $5,259 $5,338 $5,264 $5,000 $4,705 Total Assets $4,198 $4,164 $4,073 $4,039 $3,942 $4,039 $3,791 $3,465 $2,905 Portfolio Loans $4,859 $4,659 $4,634 $4,654 $4,627 $4,654 $4,622 $4,379 $4,117 Deposits $461 $440 $438 $425 $422 $425 $374 $317 $367 Tangible Common Equity Profitability: $23.2 $22.2 $19.8 $25.0 $18.8 $87.5 $79.9 $83.7 $75.4 Pre-Tax, Pre-Provision Income 1.69%1.67%1.48%1.88%1.43%1.77%1.56%1.72%1.69%Pre-Tax, Pre-Prov / Avg. Assets $17.5 $16.9 $15.6 $18.5 $13.8 $66.8 $59.1 $63.8 $62.9 Net Income(1) $0.84 $0.81 $0.74 $0.87 $0.65 $3.16 $2.79 $2.97 $2.88 Diluted EPS 1.27%1.27%1.18%1.39%1.04%1.27%1.15%1.32%1.41%Return on Average Assets(1) 14.6%14.7%13.7%16.3%12.5%15.7%16.0%18.5%16.1%Return on Average Equity(1) 3.54%3.58%3.49%3.45%3.37%3.38%3.26%3.32%3.10%Net Interest Margin (FTE) 58.9%59.7%62.2%59.1%62.8%60.8%60.8%59.4%62.9%Efficiency Ratio Asset Quality: 0.38%0.16%0.14%0.13%0.11%0.13%0.11%0.08%0.11%NPAs / Assets 0.50%0.21%0.18%0.17%0.15%0.17%0.15%0.12%0.18%NPAs / Loans + OREO 1.49%1.47%1.47%1.47%1.46%1.47%1.44%1.51%1.63%ACL / Total Portfolio Loans 0.07%0.02%0.01%0.01%0.00%0.02%0.01%0.00%(0.07%)NCOs / Avg. Loans Capital Ratios: 8.4%8.2%8.3%8.0%8.1%8.0%7.2%6.4%7.9%TCE Ratio 10.1%10.0%9.9%9.9%9.6%9.9%9.0%8.8%8.8%Leverage Ratio 12.4%12.2%12.3%12.1%12.1%12.1%11.5%11.4%12.1%Tier 1 Capital Ratio 13.7%14.2%14.5%14.2%14.2%14.2%13.7%13.7%14.5%Total Capital Ratio Historical Financial Data 21
22 Historic Financial Performance Year Ended December 31, 5 Year CAGR202420232022202120202019($M except per share data) Balance Sheet: 8.4%$5,338 $5,264 $5,000 $4,705 $4,204 $3,565 Total Assets 8.2%$4,039 $3,791 $3,465 $2,905 $2,734 $2,725 Portfolio Loans 8.9%$4,654 $4,623 $4,379 $4,117 $3,637 $3,037 Deposits 6.1%$425 $374 $317 $367 $357 $317 Tangible Common Equity Profitability: 8.4%$87.5 $79.9 $83.1 $75.4 $81.9 $58.6 Pre-Tax, Pre-Provision Income -1.77%1.56%1.68%1.62%2.08%1.70%Pre-Tax, Pre-Prov / Avg. Assets 7.5%$66.8 $59.1 $63.4 $62.9 $56.2 $46.4 Net Income(1) 9.6%$3.16 $2.79 $2.97 $2.88 $2.53 $2.00 Diluted EPS -1.27%1.15%1.31%1.41%1.43%1.35%Return on Average Assets(1) -15.70%16.04%18.41%16.13%15.68%13.63%Return on Average Equity(1) -3.38%3.26%3.32%3.10%3.34%3.80%Net Interest Margin (FTE) -60.80%60.76%59.71%62.87%59.24%64.90%Efficiency Ratio Asset Quality: -0.13%0.11%0.08%0.11%0.21%0.32%NPAs / Assets -0.17%0.15%0.12%0.18%0.32%0.42%NPAs / Loans + OREO -1.47%1.44%1.51%1.63%1.30%0.96%Reserves / Total Loans -0.02%0.01%0.00%(0.07%)0.11%(0.02%)NCOs / Avg. Loans Capital Ratios: -8.0%7.2%6.4%7.9%8.6%9.0%TCE Ratio -9.9%9.1%8.8%8.8%9.2%10.1%Leverage Ratio -12.1%11.6%11.4%12.2%13.3%12.7%Tier 1 Capital Ratio -14.2%13.7%13.7%14.5%16.0%13.7%Total Capital Ratio Shareholder Value: 7.6%$ 20.33 $ 17.96 $ 15.04 $ 17.33 $ 16.33 $ 14.08 TBV/Share 5.9%$ 0.96 $ 0.92 $ 0.88 $ 0.84 $ 0.80 $ 0.72 Dividends Paid per Share -$ -$ 5.2 $ 4.0 $ 17.3 $ 14.2 $ 26.3 Value of Shares Repurchased
Sources of Liquidity 3Q 2025 Current On-balance sheet $ 152.3 Excess reserves at the Fed $ 496.5 Unpledged AFS Securities $ 648.8 Total On-balance sheet 13%On balance sheet liquidity to total deposits Available Sources of Liquidity $ 1,620.9 Unused FHLB & FRB (including BTFP) $ 437.3 Borrow capacity on unpledged bonds $ 2,058.2 Total Available Sources 42%Sources of Liquidity to total deposits 74% 76% 60% 58% 56% 56% 57% 23 8% 22 2% 21 8% 19 5% 19 6% 19 1. 8% 18 0. 7% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 On-balance sheet / Uninsured Deposits Available Sources / Uninsured Deposits Note: Portfolio loans exclude loans HFS. Liquidity / Uninsured Deposits Strong Liquidity Position • Significant liquidity position to manage the current environment. • Total available liquidity significantly exceeds (192%) estimated uninsured deposit balances. • Attractive loan to deposit ratio of 86.4%. • Uninsured deposit to total deposits of approximately 24.3%, excluding brokered time deposits. Sources of Liquidity 23
$1,949 $1,133 $465 $173 $242 $578 $319 $2,191 $1,711 $784 $173 Consumer Commercial Public Funds Brokered Insured Deposits Uninsured Deposits $3 ,6 05 $3 ,6 36 $3 ,5 70 $3 ,5 94 $3 ,5 86 $3 ,6 37 $3 ,7 20 $977 $978 $1,057 $1,060 $1,048 $1,022 $1,139 $4,582 $4,614 $4,627 $4,654 $4,634 $4,659 $4,859 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Insured Deposits Uninsured Deposits Granular Deposit Base • Average deposit account balance of approximately $22,202. • Average deposit balance excluding reciprocal deposit of $17,632. • Average Commercial deposit balance of $101,322. • Average retail deposit balance of $11,357. • 10 largest deposit accounts total $388.8 million or 8.00% of total deposits. − $234.9 million in ICS with FDIC coverage. • 100 largest deposit accounts total $1.15 billion or 23.66% of total deposits. − $695.4 million in ICS with FDIC coverage. Note: Uninsured deposit calculation is an approximation. Uninsured Deposit by Segment (9/30/25) Uninsured Deposit Trend ($MM) 24
Non-GAAP to GAAP Reconciliation 25 September 30, June 30, March 31, December 31, September 30, 2024 2023 2022 2021 2025 2025 2025 2024 2024 Net interest income $166,248 $156,329 $149,561 $129,765 $45,361 $44,615 $43,685 $42,851 $41,854 Non-interest income 56,362 50,676 61,909 76,643 11,937 11,325 10,424 19,121 9,508 Non-interest expense 135,096 127,119 128,341 131,023 34,131 33,762 34,262 36,987 32,583 Pre-Tax, Pre-Provision Income 87,514 79,886 83,129 75,385 $23,167 $22,178 $19,847 $24,985 $18,779 Provision for credit losses 4,468 6,210 5,341 (1,928) 1,991 1,500 721 2,217 1,488 Income tax expense 16,256 14,609 14,437 14,418 3,674 3,801 3,536 4,307 3,481 Net income $66,790 $59,067 $63,351 $62,895 $17,502 $16,877 $15,590 $18,461 $13,810 Average total assets $5,239,952 $5,115,624 $4,825,723 $4,465,577 $5,451,922 $5,324,959 $5,378,022 $5,300,368 $5,275,623 Performance Ratios Return on average assets 1.27% 1.15% 1.31% 1.41% 1.27% 1.27% 1.18% 1.39% 1.04% Pre-tax, Provision return on average assets 1.67% 1.56% 1.72% 1.69% 1.70% 1.67% 1.50% 1.88% 1.42% Year Ended December 31, Quarter Ended (Dollars in thousands)
Reconciliation of Non-GAAP Financial Measures 26 Reconciliation of Non-GAAP Financial Measures 2025 2024 2025 2024 Net Interest Margin, Fully Taxable Equivalent ("FTE") Net interest income 45,361$ 41,854$ 133,661$ 123,397$ Add: taxable equivalent adjustment 443 158 1,339 513 Net interest income - taxable equivalent 45,804$ 42,012$ 135,000$ 123,910$ Net interest margin (GAAP) (1) 3.51% 3.35% 3.50% 3.34% Net interest margin (FTE) (1) 3.54% 3.37% 3.54% 3.35% (1) Annualized. Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands)
Reconciliation of Non-GAAP Financial Measures (continued) 27 Reconciliation of Non-GAAP Financial Measures (continued) Independent Bank Corporation Tangible Common Equity Ratio Sepetmber 30, June 30, March 31, December 31,September 30, 2024 2023 2022 2021 2025 2025 2025 2024 2024 Common shareholders' equity 454,686$ 404,449$ 347,596$ 398,484$ 490,742$ 469,250$ 467,277$ 454,686$ 452,369$ Less: Goodwill 28,300 28,300 28,300 28,300 28,300 28,300 28,300 28,300 28,300 Other intangibles 1,488 2,004 2,551 3,336 1,123 1,244 1,366 1,488 1,617 Tangible common equity 424,898$ 374,145$ 316,745$ 366,848$ 461,319$ 439,706$ 437,611$ 424,898$ 422,452$ Total assets $ 5,338,104 $ 5,263,726 $ 4,999,787 $ 4,704,740 $ 5,493,113 $ 5,418,519 $ 5,328,428 $ 5,338,104 $ 5,259,268 Less: Goodwill 28,300 28,300 28,300 28,300 28,300 28,300 28,300 28,300 28,300 Other intangibles 1,488 2,004 2,551 3,336 1,123 1,244 1,366 1,488 1,617 Tangible assets $ 5,308,316 $ 5,233,422 $ 4,968,936 $ 4,673,104 $ 5,463,690 $ 5,388,975 $ 5,298,762 $ 5,308,316 $ 5,229,351 Common equity ratio 8.52% 7.68% 6.95% 8.47% 8.93% 8.66% 8.77% 8.52% 8.60% Tangible common equity ratio 8.00% 7.15% 6.37% 7.85% 8.44% 8.16% 8.26% 8.00% 8.08% Year Ended December 31, Quarter Ended (Dollars in thousands)