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: January 22, 2026
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 January 22, 2026, Independent Bank Corporation issued a press release announcing its financial results for the quarter ended December 31, 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 January 22, 2026. |
|---|---|
| 99.2 | Supplemental data to the Registrant’s press release dated January 22, 2026. |
| 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 | January 22, 2026 | 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 FOURTH QUARTER EARNINGS OF $0.89 PER DILUTED SHARE; BOARD AUTHORIZES 5% STOCK REPURCHASE PLAN
GRAND RAPIDS, Mich., January 22, 2026 - Independent Bank Corporation (NASDAQ: IBCP) reported fourth quarter 2025 net income of $18.6 million, or $0.89 per diluted share, versus net income of $18.5 million, or $0.87 per diluted share, in the prior-year period. For the year ended December 31, 2025, the Company reported net income of $68.5 million, or $3.27 per diluted share, compared to net income of $66.8 million, or $3.16 per diluted share, in 2024.
Highlights for the fourth quarter of 2025 include:
•An increase in net interest income of $1.0 million (2.2%) over the third quarter of 2025;
•A net interest margin of 3.62% (eight basis point increase from the linked quarter);
•A return on average assets and a return on average equity of 1.35% and 14.75%, respectively;
•Net growth in loans of $78.0 million (or 7.4% annualized) from September 30, 2025;
•Net growth in total deposits, less brokered deposits of $57.1 million (or 4.8% annualized) from September 30, 2025;
•An increase in the tangible common equity ratio to 8.65%; and
•The payment of a 26 cent per share dividend on common stock on November 14, 2025.
“Our fourth-quarter performance marked the culmination of another remarkable year, with our organization excelling on all fundamentals,” said William B. (“Brad”) Kessel, the President and Chief Executive Officer. “Over the past year, we increased tangible book value by 13.3% and delivered near record earnings. Meanwhile, our dividend payout ratio was 32% for the year as we continue to recognize the value of returns to our shareholders. During the fourth quarter, we realized continued net interest margin expansion, strong loan growth and increased non-interest income despite the third quarter reflecting elevated revenue from an annual incentive payment related to our debit card program. In addition, our credit quality metrics remain positive, with watch credits and non-performing assets below historic averages. In anticipation of continued strong earnings, we repurchased shares and executed a tax credit transfer agreement during the fourth quarter which is expected to reduce tax obligations and enhance earnings per share. Looking ahead to 2026, our confidence is bolstered by a robust commercial loan pipeline and our on going strategic initiative to attract and integrate talented bankers into our organization.”
Significant items impacting comparable 2025 and 2024 results include the following:
•Net interest margin improved to 3.56% for the year ended December 31, 2025 from 3.38% the previous year.
•Income tax expense included a $1.8 million benefit ($0.09 per share) resulting from the execution of a tax credit transfer agreement (TCTA) related to the purchase of $22.9 million of energy tax credits during the three-month and full year ended December 31, 2025, compared to no such benefit in the prior year.
•Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of $0.2 million ($0.01 per diluted share, after taxes) and $(2.2) million ($(0.08) per diluted share, after taxes) for the three-month and full-year ended December 31, 2025, respectively, as compared to $6.5 million ($0.24 per diluted share, after taxes) and $4.5 million ($0.17 per diluted share, after taxes) for the three-months and full-year ended December 31, 2024, respectively.
•The provision for credit losses was $6.1 million ($0.23 per diluted share, after tax) for the full year ended December 31, 2025, compared to $4.5 million ($0.17 per diluted share, after tax) for the full year ended December 31, 2024.
Operating Results
The Company’s net interest income totaled $46.4 million during the fourth quarter of 2025, an increase of $3.5 million, or 8.2% from the year-ago period, and up $1.0 million, or 2.2%, from the third quarter of 2025. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.62% during the fourth quarter of 2025, compared to 3.45% in the year-ago period, and 3.54% in the third quarter of 2025. The year-over-year quarterly increase in net interest income was due to an increase in the net interest margin and an increase in average earnings assets. Average interest-earning assets were $5.16 billion in the fourth quarter of 2025, compared to $5.01 billion in the year ago quarter and $5.16 billion in the third quarter of 2025.
For the year ended December 31, 2025, net interest income totaled $180.0 million, an increase of $13.8 million, or 8.3% from the prior year ended December 31, 2024. The Company’s net interest margin for the year ended December 31, 2025 was 3.56% compared to 3.38% in 2024. The increase in net interest income for the year ended December 31, 2025 compared to 2024 reflects an increase in average interest- earning assets as well as an increase in the net interest margin.
Non-interest income totaled $12.0 million and $45.6 million, respectively, for the fourth quarter and full year of 2025, compared to $19.1 million and $56.4 million in the respective, comparable year ago periods. These changes were primarily due to variances in mortgage banking related revenues. The full year period of 2025 also included a decrease in gains on equity securities at fair value.
Net gains on mortgage loans in the fourth quarters of 2025 and 2024, were approximately $1.4 million and $1.7 million, respectively. The decrease in net gains on mortgage loans was due primarily to a decrease in the volume of mortgage loans sold. For the full year of 2025, net gains on mortgage loans totaled $6.8 million compared to $6.6 million in 2024. The increase in net gains on mortgage loans was due to a higher loan sale margin on mortgage loan sales that was partially offset by a decrease in the volume of mortgage loans sold.
Mortgage loan servicing, net, generated gains of $0.9 million and $7.8 million in the fourth quarters of 2025 and 2024, respectively. For the full year of 2025 and 2024, mortgage loan servicing, net, generated income of $0.8 million and $9.4 million, 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 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 December 31, 2025 and 2024, respectively.
Mortgage loan servicing, net activity is summarized in the following table:
| Three months ended | Twelve months ended | |||||||
|---|---|---|---|---|---|---|---|---|
| 12/31/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 | |||||
| (In thousands) | ||||||||
| Mortgage loan servicing, net: | ||||||||
| Revenue, net | $ | 1,656 | $ | 2,233 | $ | 6,801 | $ | 8,914 |
| Fair value change due to price | 160 | 6,519 | (2,168) | 4,540 | ||||
| Fair value change due to pay-downs | (917) | (991) | (3,573) | (4,007) | ||||
| Loss on sale of originated servicing rights | — | — | (233) | — | ||||
| Total | $ | 899 | $ | 7,761 | $ | 827 | $ | 9,447 |
Non-interest expenses totaled $36.1 million in the fourth quarter of 2025, compared to $37.0 million in the year-ago period. For the full year of 2025, non-interest expenses totaled $138.2 million versus $135.1 million in 2024. The decrease during the quarterly period is primarily due to lower incentive based compensation attributed to lower expected payout levels, lower data processing expenses and lower advertising expense.
The Company recorded an income tax expense of $1.7 million and $12.8 million in the fourth quarter and full year of 2025, respectively. This compares to an income tax expense of $4.3 million and $16.3 million in the fourth quarter and full year of 2024, respectively. As discussed previously, the 2025 fourth quarter and full year income tax expense includes a $1.8 million benefit resulting from the execution of the TCTA, compared to no such benefit in the prior year.
Asset Quality
A breakdown of non-performing loans by loan type is as follows:
| 12/31/2025 | 12/31/2024 | 12/31/2023 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Loan Type | (Dollars in thousands) | ||||||||
| Commercial | $ | 23,531 | $ | 54 | $ | 28 | |||
| Mortgage | 8,683 | 7,005 | 6,425 | ||||||
| Installment | 860 | 733 | 970 | ||||||
| Sub total | 33,074 | 7,792 | 7,423 | ||||||
| Less - government guaranteed loans | 9,947 | 1,790 | 2,191 | ||||||
| Total non-performing loans | $ | 23,127 | $ | 6,002 | $ | 5,232 | |||
| Ratio of non-performing loans to total portfolio loans | 0.54 | % | 0.15 | % | 0.14 | % | |||
| Ratio of non-performing assets to total assets | 0.44 | % | 0.13 | % | 0.11 | % | |||
| Ratio of allowance for credit losses to total non-performing loans | 274.33 | % | 989.32 | % | 1044.69 | % |
The provision for credit losses was $1.9 million and $2.2 million in the fourth quarters of 2025 and 2024, respectively. The provision for credit losses was $6.1 million and $4.5 million in the full year of 2025 and 2024, respectively. The provision for credit losses in 2025 was primarily impacted by the growth in commercial loans, a decrease in prepayment speeds on retail loans and increases in unfunded lending commitments. The Company recorded loan net charge-offs of $0.4 million and $0.3 million in the fourth quarters of 2025 and 2024, respectively. At December 31, 2025, the allowance for credit losses totaled $63.4 million, or 1.48% of total portfolio loans compared to $59.4 million, or 1.47% of total portfolio loans at December 31, 2024.
The increase in non-performing commercial loans year-over-year is primarily due to one commercial relationship where the borrower is experiencing financial difficulties.
Balance Sheet, Liquidity and Capital
Total assets were $5.51 billion at December 31, 2025, an increase of $167.6 million from December 31, 2024. Loans, excluding loans held for sale, were $4.28 billion at December 31, 2025, compared to $4.04 billion at December 31, 2024.
This increase is primarily due to growth in commercial loans. Deposits totaled $4.76 billion at December 31, 2025, an increase of $107.6 million from December 31, 2024. This increase is primarily due to growth in savings and interest-bearing checking, reciprocal, and time deposit account balances that were partially offset by decreases in non-interest bearing and brokered time deposits.
Cash and cash equivalents totaled $138.4 million at December 31, 2025, versus $119.9 million at December 31, 2024. Securities available for sale (“AFS”) totaled $495.9 million at December 31, 2025, versus $559.2 million at December 31, 2024.
Total shareholders’ equity was $503.0 million at December 31, 2025, or 9.14% of total assets compared to $454.7 million or 8.52% at December 31, 2024. Tangible common equity totaled $473.7 million at December 31, 2025, or $23.05 per share compared to $424.9 million or $20.33 per share at December 31, 2024. The increase in shareholder 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 | 12/31/2025 | 12/31/2024 | Well<br>Capitalized<br>Minimum | |||
|---|---|---|---|---|---|---|
| Tier 1 capital to average total assets | 9.36 | % | 9.58 | % | 5.00 | % |
| Tier 1 common equity to risk-weighted assets | 11.24 | % | 11.74 | % | 6.50 | % |
| Tier 1 capital to risk-weighted assets | 11.24 | % | 11.74 | % | 8.00 | % |
| Total capital to risk-weighted assets | 12.49 | % | 12.99 | % | 10.00 | % |
At December 31, 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 $774.2 million and $1.24 billion, respectively. We also had approximately $456.3 million in fair value of unpledged securities AFS and HTM at December 31, 2025 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $428.3 million.
Share Repurchase Plan
On December 16, 2025, the Board of Directors of the Company authorized the 2026 share repurchase plan. Under the terms of the 2026 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, 2026. For the full year of 2025, the Company repurchased 407,113 shares of its common stock at an aggregate cost of $12.4 million.
Earnings Conference Call
Brad Kessel, President and CEO, Gavin A. 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, January 22, 2026.
To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: https://register-conf.media-server.com/register/BIda5dc0f6055c4175bbaa1e1fddbc12fa
In order to view the webcast and presentation slides, please go to https://edge.media-server.com/mmc/p/f4iidb88 during the time of the call. A replay of the webcast will be available until January 22, 2027.
About Independent Bank Corporation
Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of $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, 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; the outcome of litigation proceedings to which we are or may become subject; 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
| December 31, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| (unaudited) | ||||
| (In thousands, except share<br>amounts) | ||||
| Assets | ||||
| Cash and due from banks | $ | 52,235 | $ | 56,984 |
| Interest bearing deposits | 86,152 | 62,898 | ||
| Cash and Cash Equivalents | 138,387 | 119,882 | ||
| Securities available for sale | 495,909 | 559,182 | ||
| Securities held to maturity (fair value of $282,830 at December 31, 2025 and $301,860 at December 31, 2024) | 309,523 | 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 | 9,031 | 7,643 | ||
| Loans | ||||
| Commercial | 2,213,557 | 1,937,364 | ||
| Mortgage | 1,524,821 | 1,516,726 | ||
| Installment | 537,907 | 584,735 | ||
| Total Loans | 4,276,285 | 4,038,825 | ||
| Allowance for credit losses | (63,445) | (59,379) | ||
| Net Loans | 4,212,840 | 3,979,446 | ||
| Other real estate and repossessed assets, net | 896 | 938 | ||
| Property and equipment, net | 38,972 | 37,492 | ||
| Bank-owned life insurance | 53,750 | 53,855 | ||
| Capitalized mortgage loan servicing rights, carried at fair value | 31,493 | 46,796 | ||
| Other intangibles, net | 1,001 | 1,488 | ||
| Goodwill | 28,300 | 28,300 | ||
| Accrued income and other assets | 167,516 | 147,547 | ||
| Total Assets | $ | 5,505,720 | $ | 5,338,104 |
| Liabilities and Shareholders’ Equity | ||||
| Deposits | ||||
| Non-interest bearing | $ | 991,984 | $ | 1,013,647 |
| Savings and interest-bearing checking | 2,113,260 | 1,995,314 | ||
| Reciprocal | 974,921 | 907,031 | ||
| Time | 662,858 | 628,285 | ||
| Brokered time | 18,659 | 109,811 | ||
| Total Deposits | 4,761,682 | 4,654,088 | ||
| Other borrowings | 77,003 | 45,009 | ||
| Subordinated debt | — | 39,586 | ||
| Subordinated debentures | 39,864 | 39,796 | ||
| Accrued expenses and other liabilities | 124,220 | 104,939 | ||
| Total Liabilities | 5,002,769 | 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: 20,548,893 shares at December 31, 2025 and 20,895,714 shares at December 31, 2024 | 307,845 | 318,777 | ||
| Retained earnings | 252,794 | 205,853 | ||
| Accumulated other comprehensive loss | (57,688) | (69,944) | ||
| Total Shareholders’ Equity | 502,951 | 454,686 | ||
| Total Liabilities and Shareholders’ Equity | $ | 5,505,720 | $ | 5,338,104 |
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
| Three Months Ended | Twelve Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31,<br>2025 | September 30, 2025 | December 31,<br>2024 | December 31, | ||||||||||||
| 2025 | 2024 | ||||||||||||||
| (unaudited) | |||||||||||||||
| INTEREST INCOME | (In thousands, except per share amounts) | ||||||||||||||
| Interest and fees on loans | $ | 60,205 | $ | 61,325 | $ | 58,346 | $ | 238,833 | $ | 228,585 | |||||
| Interest on securities | |||||||||||||||
| Taxable | 3,513 | 3,660 | 4,417 | 15,005 | 18,883 | ||||||||||
| Tax-exempt | 2,633 | 2,767 | 2,905 | 10,943 | 13,100 | ||||||||||
| Other investments | 1,074 | 1,538 | 1,310 | 4,956 | 6,208 | ||||||||||
| Total Interest Income | 67,425 | 69,290 | 66,978 | 269,737 | 266,776 | ||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Deposits | 20,109 | 21,972 | 22,546 | 83,498 | 92,694 | ||||||||||
| Other borrowings and subordinated debt and debentures | 962 | 1,957 | 1,581 | 6,224 | 7,834 | ||||||||||
| Total Interest Expense | 21,071 | 23,929 | 24,127 | 89,722 | 100,528 | ||||||||||
| Net Interest Income | 46,354 | 45,361 | 42,851 | 180,015 | 166,248 | ||||||||||
| Provision for credit losses | 1,923 | 1,991 | 2,217 | 6,135 | 4,468 | ||||||||||
| Net Interest Income After Provision for Credit Losses | 44,431 | 43,370 | 40,634 | 173,880 | 161,780 | ||||||||||
| NON-INTEREST INCOME | |||||||||||||||
| Interchange income | 3,186 | 4,157 | 3,294 | 13,860 | 13,992 | ||||||||||
| Service charges on deposit accounts | 3,096 | 3,131 | 2,976 | 12,022 | 11,870 | ||||||||||
| Net gains (losses) on assets | |||||||||||||||
| Mortgage loans | 1,372 | 1,474 | 1,705 | 6,780 | 6,579 | ||||||||||
| Equity securities at fair value | — | — | — | — | 2,685 | ||||||||||
| Securities available for sale | (15) | (36) | (14) | (370) | (428) | ||||||||||
| Mortgage loan servicing, net | 899 | 74 | 7,761 | 827 | 9,447 | ||||||||||
| Other | 3,420 | 3,137 | 3,399 | 12,525 | 12,217 | ||||||||||
| Total Non-interest Income | 11,958 | 11,937 | 19,121 | 45,644 | 56,362 | ||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||
| Compensation and employee benefits | 22,563 | 21,125 | 22,886 | 85,194 | 84,955 | ||||||||||
| Data processing | 3,428 | 3,784 | 3,688 | 14,788 | 13,579 | ||||||||||
| Occupancy, net | 2,171 | 2,127 | 1,953 | 8,567 | 7,806 | ||||||||||
| Interchange expense | 1,165 | 1,180 | 1,131 | 4,641 | 4,504 | ||||||||||
| Furniture, fixtures and equipment | 897 | 892 | 928 | 3,467 | 3,762 | ||||||||||
| Advertising | 991 | 526 | 1,198 | 3,211 | 3,058 | ||||||||||
| FDIC deposit insurance | 861 | 615 | 729 | 2,824 | 2,870 | ||||||||||
| Loan and collection | 589 | 618 | 606 | 2,737 | 2,474 | ||||||||||
| Legal and professional | 787 | 682 | 849 | 2,448 | 2,566 | ||||||||||
| Communications | 471 | 465 | 462 | 1,997 | 2,095 | ||||||||||
| Other | 2,155 | 2,117 | 2,557 | 8,359 | 7,427 | ||||||||||
| Total Non-interest Expense | 36,078 | 34,131 | 36,987 | 138,233 | 135,096 | ||||||||||
| Income Before Income Tax | 20,311 | 21,176 | 22,768 | 81,291 | 83,046 | ||||||||||
| Income tax expense | 1,739 | 3,674 | 4,307 | 12,750 | 16,256 | ||||||||||
| Net Income | $ | 18,572 | $ | 17,502 | $ | 18,461 | $ | 68,541 | $ | 66,790 | |||||
| Net income per common share | |||||||||||||||
| Basic | $ | 0.90 | $ | 0.85 | $ | 0.88 | $ | 3.30 | $ | 3.20 | |||||
| Diluted | $ | 0.89 | $ | 0.84 | $ | 0.87 | $ | 3.27 | $ | 3.16 |
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data
| December 31,<br>2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (unaudited) | |||||||||||||||
| (Dollars in thousands except per share data) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| Net interest income | $ | 46,354 | $ | 45,361 | $ | 44,615 | $ | 43,685 | $ | 42,851 | |||||
| Provision for credit losses | 1,923 | 1,991 | 1,500 | 721 | 2,217 | ||||||||||
| Non-interest income | 11,958 | 11,937 | 11,325 | 10,424 | 19,121 | ||||||||||
| Non-interest expense | 36,078 | 34,131 | 33,762 | 34,262 | 36,987 | ||||||||||
| Income before income tax | 20,311 | 21,176 | 20,678 | 19,126 | 22,768 | ||||||||||
| Income tax expense | 1,739 | 3,674 | 3,801 | 3,536 | 4,307 | ||||||||||
| Net income | $ | 18,572 | $ | 17,502 | $ | 16,877 | $ | 15,590 | $ | 18,461 | |||||
| Basic earnings per share | $ | 0.90 | $ | 0.85 | $ | 0.81 | $ | 0.74 | $ | 0.88 | |||||
| Diluted earnings per share | 0.89 | 0.84 | 0.81 | 0.74 | 0.87 | ||||||||||
| Cash dividend per share | 0.26 | 0.26 | 0.26 | 0.26 | 0.24 | ||||||||||
| Average shares outstanding | 20,639,758 | 20,702,235 | 20,749,925 | 20,943,094 | 20,893,820 | ||||||||||
| Average diluted shares outstanding | 20,848,634 | 20,904,857 | 20,945,522 | 21,150,550 | 21,122,096 | ||||||||||
| Performance Ratios | |||||||||||||||
| Return on average assets | 1.35 | % | 1.27 | % | 1.27 | % | 1.18 | % | 1.39 | % | |||||
| Return on average equity | 14.75 | 14.57 | 14.66 | 13.71 | 16.31 | ||||||||||
| Efficiency ratio (1) | 61.18 | 58.86 | 59.67 | 62.20 | 59.09 | ||||||||||
| As a Percent of Average Interest-Earning Assets (1) | |||||||||||||||
| Interest income | 5.24 | % | 5.38 | % | 5.35 | % | 5.28 | % | 5.37 | % | |||||
| Interest expense | 1.62 | 1.84 | 1.77 | 1.79 | 1.92 | ||||||||||
| Net interest income | 3.62 | 3.54 | 3.58 | 3.49 | 3.45 | ||||||||||
| Average Balances | |||||||||||||||
| Loans | $ | 4,249,389 | $ | 4,201,557 | $ | 4,128,771 | $ | 4,060,941 | $ | 3,994,661 | |||||
| Securities | 815,269 | 826,362 | 846,052 | 883,676 | 912,073 | ||||||||||
| Total earning assets | 5,162,381 | 5,159,681 | 5,036,090 | 5,078,596 | 5,007,566 | ||||||||||
| Total assets | 5,449,518 | 5,451,922 | 5,324,959 | 5,378,022 | 5,300,368 | ||||||||||
| Deposits | 4,774,179 | 4,786,408 | 4,646,639 | 4,715,331 | 4,655,091 | ||||||||||
| Interest bearing liabilities | 3,846,367 | 3,862,024 | 3,763,477 | 3,799,852 | 3,717,483 | ||||||||||
| Shareholders' equity | 499,445 | 476,422 | 461,720 | 461,291 | 450,214 |
(1)Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data (continued)
| December 31,<br>2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (unaudited) | |||||||||||||||
| (Dollars in thousands except per share data) | |||||||||||||||
| End of Period | |||||||||||||||
| Capital | |||||||||||||||
| Tangible common equity ratio | 8.65 | % | 8.44 | % | 8.16 | % | 8.26 | % | 8.00 | % | |||||
| Tangible common equity ratio excluding accumulated other comprehensive loss | 9.51 | 9.35 | 9.24 | 9.31 | 9.10 | ||||||||||
| Average equity to average assets | 9.16 | 8.74 | 8.67 | 8.58 | 8.49 | ||||||||||
| Total capital to risk-weighted assets (2) | 13.60 | 13.67 | 14.20 | 14.51 | 14.22 | ||||||||||
| Tier 1 capital to risk-weighted assets (2) | 12.35 | 12.42 | 12.23 | 12.34 | 12.06 | ||||||||||
| Common equity tier 1 capital to risk-weighted assets (2) | 11.50 | 11.55 | 11.36 | 11.45 | 11.17 | ||||||||||
| Tier 1 capital to average assets (2) | 10.27 | 10.07 | 10.07 | 9.89 | 9.85 | ||||||||||
| Common shareholders' equity per share of common stock | $ | 24.48 | $ | 23.72 | $ | 22.65 | $ | 22.28 | $ | 21.76 | |||||
| Tangible common equity per share of common stock | 23.05 | 22.29 | 21.23 | 20.87 | 20.33 | ||||||||||
| Total shares outstanding | 20,548,893 | 20,691,604 | 20,715,650 | 20,970,115 | 20,895,714 | ||||||||||
| Selected Balances | |||||||||||||||
| Loans | $ | 4,276,285 | $ | 4,198,283 | $ | 4,164,367 | $ | 4,072,691 | $ | 4,038,825 | |||||
| Securities | 805,432 | 824,033 | 838,813 | 866,604 | 898,618 | ||||||||||
| Total earning assets | 5,195,002 | 5,204,380 | 5,105,579 | 5,031,975 | 5,024,083 | ||||||||||
| Total assets | 5,505,720 | 5,493,113 | 5,418,519 | 5,328,428 | 5,338,104 | ||||||||||
| Deposits | 4,761,682 | 4,859,155 | 4,659,359 | 4,633,931 | 4,654,088 | ||||||||||
| Interest bearing liabilities | 3,886,565 | 3,897,487 | 3,832,845 | 3,768,435 | 3,764,832 | ||||||||||
| Shareholders' equity | 502,951 | 490,742 | 469,250 | 467,277 | 454,686 |
(2)December 31, 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 December 31, | Twelve Months Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||||||
| (Dollars in thousands) | ||||||||||||
| Net Interest Margin, Fully Taxable Equivalent ("FTE") | ||||||||||||
| Net interest income | $ | 46,354 | $ | 42,851 | $ | 180,015 | $ | 166,248 | ||||
| Add: taxable equivalent adjustment | 446 | 389 | 1,785 | 902 | ||||||||
| Net interest income - taxable equivalent | $ | 46,800 | $ | 43,240 | $ | 181,800 | $ | 167,150 | ||||
| Net interest margin (GAAP) (1) | 3.58 | % | 3.42 | % | 3.52 | % | 3.36 | % | ||||
| Net interest margin (FTE) (1) | 3.62 | % | 3.45 | % | 3.56 | % | 3.38 | % |
(1)Quarter to date are Annualized.
Tangible Common Equity Ratio
| December 31,<br>2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | |||||||||||||||
| Common shareholders' equity | $ | 502,951 | $ | 490,742 | $ | 469,250 | $ | 467,277 | $ | 454,686 | |||||
| Less: | |||||||||||||||
| Goodwill | 28,300 | 28,300 | 28,300 | 28,300 | 28,300 | ||||||||||
| Other intangibles, net | 1,001 | 1,123 | 1,244 | 1,366 | 1,488 | ||||||||||
| Tangible common equity | 473,650 | 461,319 | 439,706 | 437,611 | 424,898 | ||||||||||
| Addition: | |||||||||||||||
| Accumulated other comprehensive loss for regulatory purposes | 51,891 | 54,833 | 64,089 | 61,285 | 64,146 | ||||||||||
| Tangible common equity excluding accumulated other comprehensive loss adjustments | $ | 525,541 | $ | 516,152 | $ | 503,795 | $ | 498,896 | $ | 489,044 | |||||
| Total assets | $ | 5,505,720 | $ | 5,493,113 | $ | 5,418,519 | $ | 5,328,428 | $ | 5,338,104 | |||||
| Less: | |||||||||||||||
| Goodwill | 28,300 | 28,300 | 28,300 | 28,300 | 28,300 | ||||||||||
| Other intangibles, net | 1,001 | 1,123 | 1,244 | 1,366 | 1,488 | ||||||||||
| Tangible assets | 5,476,419 | 5,463,690 | 5,388,975 | 5,298,762 | 5,308,316 | ||||||||||
| Addition: | |||||||||||||||
| Net unrealized losses on available for sale securities and derivatives, net of tax | 51,891 | 54,833 | 64,089 | 61,285 | 64,146 | ||||||||||
| Tangible assets excluding accumulated other comprehensive loss adjustments | $ | 5,528,310 | $ | 5,518,523 | $ | 5,453,064 | $ | 5,360,047 | $ | 5,372,462 | |||||
| Common equity ratio | 9.14 | % | 8.93 | % | 8.66 | % | 8.77 | % | 8.52 | % | |||||
| Tangible common equity ratio | 8.65 | % | 8.44 | % | 8.16 | % | 8.26 | % | 8.00 | % | |||||
| Tangible common equity ratio excluding accumulated other comprehensive loss | 9.51 | % | 9.35 | % | 9.24 | % | 9.31 | % | 9.10 | % | |||||
| Tangible Common Equity per Share of Common Stock: | |||||||||||||||
| Common shareholders' equity | $ | 502,951 | $ | 490,742 | $ | 469,250 | $ | 467,277 | $ | 454,686 | |||||
| Tangible common equity | $ | 473,650 | $ | 461,319 | $ | 439,706 | $ | 437,611 | $ | 424,898 | |||||
| Shares of common stock outstanding (in thousands) | 20,549 | 20,692 | 20,716 | 20,970 | 20,896 | ||||||||||
| Common shareholders' equity per share of common stock | $ | 24.48 | $ | 23.72 | $ | 22.65 | $ | 22.28 | $ | 21.76 | |||||
| Tangible common equity per share of common stock | $ | 23.05 | $ | 22.29 | $ | 21.23 | $ | 20.87 | $ | 20.33 |
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.
10
Document
Exhibit 99.2
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data
Non-performing assets
| December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | |||||||||||||||
| Non-accrual loans | $ | 33,074 | $ | 22,598 | $ | 10,453 | $ | 9,026 | $ | 7,792 | |||||
| Loans 90 days or more past due and still accruing interest | — | — | — | — | — | ||||||||||
| Subtotal | 33,074 | 22,598 | 10,453 | 9,026 | 7,792 | ||||||||||
| Less: Government guaranteed loans | 9,947 | 2,243 | 2,249 | 1,940 | 1,790 | ||||||||||
| Total non-performing loans | 23,127 | 20,355 | 8,204 | 7,086 | 6,002 | ||||||||||
| Other real estate and repossessed assets | 896 | 589 | 426 | 413 | 938 | ||||||||||
| Total non-performing assets | $ | 24,023 | $ | 20,944 | $ | 8,630 | $ | 7,499 | $ | 6,940 | |||||
| As a percent of Portfolio Loans | |||||||||||||||
| Non-performing loans | 0.54 | % | 0.48 | % | 0.20 | % | 0.17 | % | 0.15 | % | |||||
| Allowance for credit losses | 1.48 | 1.49 | 1.47 | 1.47 | 1.47 | ||||||||||
| Non-performing assets to total assets | 0.44 | 0.38 | 0.16 | 0.14 | 0.13 | ||||||||||
| Allowance for credit losses as a percent of non-performing loans | 274.33 | 306.85 | 745.45 | 847.23 | 989.32 |
Allowance for credit losses
| Twelve months ended December 31, | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | ||||||||||||||||
| Loans | Securities | Unfunded<br>Commitments(1) | 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 | 5,676 | (40) | 499 | 5,618 | (1,150) | — | |||||||||||
| Recoveries credited to allowance | 2,262 | — | 2,711 | 1,125 | — | ||||||||||||
| Charges against the allowance | (3,872) | — | — | (3,608) | — | — | |||||||||||
| Costs included in non-interest expense | — | — | (190) | — | — | (373) | |||||||||||
| Balance at end of period | $ | 63,445 | $ | 92 | $ | 5,440 | $ | 59,379 | $ | 132 | $ | 5,131 | |||||
| Net loans charged (recovered) against the allowance to average Portfolio Loans | 0.04 | % | 0.02 | % | (1) | Beginning in the fourth quarter of 2025, we classified the provision for unfunded lending commitments in the provision for credit losses in the Consolidated Statements of Operations. | |||||||||||
| --- | --- | ||||||||||||||||
| 1 | |||||||||||||||||
| --- |
Capitalization
| December 31, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| (In thousands) | ||||
| Subordinated debt | $ | — | $ | 39,586 |
| Subordinated debentures | 39,864 | 39,796 | ||
| Amount not qualifying as regulatory capital | (1,224) | (810) | ||
| Amount qualifying as regulatory capital | 38,640 | 78,572 | ||
| Shareholders’ equity | ||||
| Common stock | 307,845 | 318,777 | ||
| Retained earnings | 252,794 | 205,853 | ||
| Accumulated other comprehensive income | (57,688) | (69,944) | ||
| Total shareholders’ equity | 502,951 | 454,686 | ||
| Total capitalization | $ | 541,591 | $ | 533,258 |
Non-Interest Income
| Three months ended | Twelve months ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, | ||||||||
| 2025 | 2024 | ||||||||||
| (In thousands) | |||||||||||
| Interchange income | $ | 3,186 | $ | 4,157 | $ | 3,294 | $ | 13,860 | $ | 13,992 | |
| Service charges on deposit accounts | 3,096 | 3,131 | 2,976 | 12,022 | 11,870 | ||||||
| Net gains (losses) on assets | |||||||||||
| Mortgage loans | 1,372 | 1,474 | 1,705 | 6,780 | 6,579 | ||||||
| Equity securities at fair value | — | — | — | — | 2,685 | ||||||
| Securities | (15) | (36) | (14) | (370) | (428) | ||||||
| Mortgage loan servicing, net | 899 | 74 | 7,761 | 827 | 9,447 | ||||||
| Investment and insurance commissions | 1,006 | 940 | 744 | 3,510 | 3,268 | ||||||
| Bank owned life insurance | 306 | 288 | 268 | 1,187 | 834 | ||||||
| Other | 2,108 | 1,909 | 2,387 | 7,828 | 8,115 | ||||||
| Total non-interest income | $ | 11,958 | $ | 11,937 | $ | 19,121 | $ | 45,644 | $ | 56,362 |
Capitalized Mortgage Loan Servicing Rights
| Three months ended December 31, | Twelve months ended December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||||
| (In thousands) | ||||||||||
| Balance at beginning of period | $ | 31,522 | $ | 40,204 | $ | 46,796 | $ | 42,243 | ||
| Originated servicing rights capitalized | 728 | 1,064 | 3,494 | 4,020 | ||||||
| Change in fair value | (757) | 5,528 | (5,741) | 533 | ||||||
| Sale of originated servicing rights (1) | — | — | (12,823) | — | ||||||
| Loss on sale of originated servicing rights (1) | — | — | (233) | — | ||||||
| Balance at end of period | $ | 31,493 | $ | 46,796 | $ | 31,493 | $ | 46,796 | 2 | |
| --- |
Mortgage Loan Activity
| Three months ended | Twelve months ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, | |||||||||||||
| 2025 | 2024 | |||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Mortgage loans originated | $ | 134,258 | $ | 145,561 | $ | 134,144 | $ | 535,442 | $ | 518,256 | ||||||
| Mortgage loans sold | 86,150 | 101,615 | 106,222 | 365,743 | 395,617 | |||||||||||
| Net gains on mortgage loans | 1,372 | 1,474 | 1,705 | 6,780 | 6,579 | |||||||||||
| Net gains as a percent of mortgage loans sold ("Loan Sales Margin") | 1.59 | % | 1.45 | % | 1.61 | % | 1.85 | % | 1.66 | % | ||||||
| Fair value adjustments included in the Loan Sales Margin | 0.05 | % | 0.03 | % | (0.32) | % | 0.25 | % | 0.13 | % |
Non-Interest Expense
| Three months ended | Twelve months ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, | ||||||||
| 2025 | 2024 | ||||||||||
| (In thousands) | |||||||||||
| Compensation | $ | 13,884 | $ | 13,916 | $ | 13,458 | $ | 54,607 | $ | 53,389 | |
| Performance-based compensation | 4,820 | 2,900 | 5,351 | 14,799 | 16,138 | ||||||
| Payroll taxes and employee benefits | 3,859 | 4,309 | 4,077 | 15,788 | 15,428 | ||||||
| Compensation and employee benefits | 22,563 | 21,125 | 22,886 | 85,194 | 84,955 | ||||||
| Data processing | 3,428 | 3,784 | 3,688 | 14,788 | 13,579 | ||||||
| Occupancy, net | 2,171 | 2,127 | 1,953 | 8,567 | 7,806 | ||||||
| Interchange expense | 1,165 | 1,180 | 1,131 | 4,641 | 4,504 | ||||||
| Furniture, fixtures and equipment | 897 | 892 | 928 | 3,467 | 3,762 | ||||||
| Advertising | 991 | 526 | 1,198 | 3,211 | 3,058 | ||||||
| FDIC deposit insurance | 861 | 615 | 729 | 2,824 | 2,870 | ||||||
| Loan and collection | 589 | 618 | 606 | 2,737 | 2,474 | ||||||
| Legal and professional | 787 | 682 | 849 | 2,448 | 2,566 | ||||||
| Communications | 471 | 465 | 462 | 1,997 | 2,095 | ||||||
| Taxes, licenses and fees | 315 | 335 | 311 | 1,266 | 1,202 | ||||||
| Director Fees | 255 | 265 | 240 | 1,028 | 949 | ||||||
| Amortization of intangible assets | 122 | 121 | 129 | 487 | 516 | ||||||
| Provision for loss reimbursement on sold loans | (13) | (5) | 2 | (35) | 28 | ||||||
| Net losses (gains) on other real estate and repossessed assets | 31 | 39 | — | (46) | (170) | ||||||
| Other | 1,445 | 1,362 | 1,875 | 5,659 | 4,902 | ||||||
| Total non-interest expense | $ | 36,078 | $ | 34,131 | $ | 36,987 | $ | 138,233 | $ | 135,096 | |
| 3 | |||||||||||
| --- |
Average Balances and Tax Equivalent Rates
| Three Months Ended December 31, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||||||
| Average<br>Balance | Interest | Rate (2) | Average<br>Balance | Interest | Rate (2) | |||||||
| (Dollars in thousands) | ||||||||||||
| Assets | ||||||||||||
| Taxable loans | $ | 4,240,936 | $ | 60,117 | 5.64 | % | $ | 3,986,254 | $ | 58,255 | 5.83 | % |
| Tax-exempt loans (1) | 8,453 | 111 | 5.21 | 8,407 | 116 | 5.49 | ||||||
| Taxable securities | 553,154 | 3,513 | 2.54 | 644,931 | 4,417 | 2.74 | ||||||
| Tax-exempt securities (1) | 262,115 | 3,056 | 4.66 | 267,142 | 3,269 | 4.89 | ||||||
| Interest bearing cash | 79,621 | 780 | 3.89 | 84,733 | 1,019 | 4.78 | ||||||
| Other investments | 18,102 | 294 | 6.50 | 16,099 | 291 | 7.23 | ||||||
| Interest Earning Assets | 5,162,381 | 67,871 | 5.24 | 5,007,566 | 67,367 | 5.37 | ||||||
| Cash and due from banks | 55,226 | 57,775 | ||||||||||
| Other assets, net | 231,911 | 235,027 | ||||||||||
| Total Assets | $ | 5,449,518 | $ | 5,300,368 | ||||||||
| Liabilities | ||||||||||||
| Savings and interest-bearing checking | 2,932,767 | 12,743 | 1.72 | 2,835,507 | 14,393 | 2.02 | ||||||
| Time deposits | 847,824 | 7,366 | 3.45 | 789,241 | 8,153 | 4.11 | ||||||
| Other borrowings | 65,776 | 962 | 5.80 | 92,735 | 1,581 | 6.80 | ||||||
| Interest Bearing Liabilities | 3,846,367 | 21,071 | 2.17 | % | 3,717,483 | 24,127 | 2.58 | |||||
| Non-interest bearing deposits | 993,588 | 1,030,343 | ||||||||||
| Other liabilities | 110,118 | 102,328 | ||||||||||
| Shareholders’ equity | $ | 499,445 | $ | 450,214 | ||||||||
| Total liabilities and shareholders’ equity | $ | 5,449,518 | $ | 5,300,368 | ||||||||
| Net Interest Income | $ | 46,800 | $ | 43,240 | ||||||||
| Net Interest Income as a Percent of Average Interest Earning Assets | 3.62 | % | 3.45 | % | ||||||||
| (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
| Twelve Months Ended December 31, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||||||
| Average<br>Balance | Interest | Rate | Average<br>Balance | Interest | Rate (2) | |||||||
| (Dollars in thousands) | ||||||||||||
| Assets | ||||||||||||
| Taxable loans | $ | 4,153,322 | $ | 238,524 | 5.74 | % | $ | 3,882,822 | $ | 228,229 | 5.88 | % |
| Tax-exempt loans (1) | 7,472 | 391 | 5.23 | 8,597 | 451 | 5.25 | ||||||
| Taxable securities | 584,279 | 15,005 | 2.57 | 652,772 | 18,883 | 2.89 | ||||||
| Tax-exempt securities (1) | 258,328 | 12,646 | 4.90 | 294,443 | 13,907 | 4.72 | ||||||
| Interest bearing cash | 89,077 | 3,837 | 4.31 | 94,621 | 5,013 | 5.30 | ||||||
| Other investments | 17,077 | 1,119 | 6.55 | 16,363 | 1,195 | 7.30 | ||||||
| Interest Earning Assets | 5,109,555 | 271,522 | 5.32 | 4,949,618 | 267,678 | 5.41 | ||||||
| Cash and due from banks | 55,859 | 55,309 | ||||||||||
| Other assets, net | 236,027 | 235,025 | ||||||||||
| Total Assets | $ | 5,401,441 | $ | 5,239,952 | ||||||||
| Liabilities | ||||||||||||
| Savings and interest-bearing checking | 2,854,237 | 51,474 | 1.80 | 2,727,778 | 57,571 | 2.11 | ||||||
| Time deposits | 877,414 | 32,024 | 3.65 | 815,815 | 35,123 | 4.31 | ||||||
| Other borrowings | 86,527 | 6,224 | 7.19 | 118,282 | 7,834 | 6.62 | ||||||
| Interest Bearing Liabilities | 3,818,178 | 89,722 | 1.76 | % | 3,661,875 | 100,528 | 2.75 | |||||
| Non-interest bearing deposits | 999,302 | 1,047,843 | ||||||||||
| Other liabilities | 109,133 | 103,622 | ||||||||||
| Shareholders’ equity | $ | 474,828 | $ | 426,612 | ||||||||
| Total liabilities and shareholders’ equity | $ | 5,401,441 | $ | 5,239,952 | ||||||||
| Net Interest Income | $ | 181,800 | $ | 167,150 | ||||||||
| Net Interest Income as a Percent of Average Interest Earning Assets | 3.56 | % | 3.38 | % | ||||||||
| (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 December 31, 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 | $ | 10,293 | $ | 15 | $ | — | $ | 15 | 0.1 | % |
| Land Development | 22,808 | — | — | — | — | |||||
| Construction | 158,235 | — | 14,269 | 14,269 | 9.0 | |||||
| Income Producing | 784,506 | 30,309 | 9,262 | 39,571 | 5.0 | |||||
| Owner Occupied | 648,338 | 11,498 | — | 11,498 | 1.8 | |||||
| Total Commercial Real Estate Loans | $ | 1,624,180 | $ | 41,822 | $ | 23,531 | $ | 65,353 | 4.0 | |
| Other Commercial Loans | $ | 589,377 | $ | 27,929 | — | $ | 27,929 | 4.7 | ||
| Total non-performing commercial loans | $ | 23531 |
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 | |||||||||
| --- |
ibcp20254qearningsdeck_1
Earnings Call: Fourth Quarter 2025 January 22, 2026 (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
4Q'25 Overview • Total loans increased 7.4% 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 sound with NPAs/Total Assets at 0.44% and NCO of 0.04% of average loans in the quarter • Generated a ROAA and ROAE of 1.35% and 14.75%, respectively • Net interest margin of 3.62% compared to 3.45% in the prior year quarter • Commercial loan growth of 16.5% annualized • Net growth in total deposits, net of brokered deposits of $57.1 or 4.8% annualized • Tangible book value per share increased 13.3% annualized from end of prior quarter • An increase in tangible common equity ratio to 8.65% • Paid off $154.6 million of brokered time deposits • Net income of $18.6 million, or $0.89 per diluted share • Increase in net interest income of $3.5 million over the prior year quarter and $1.0 million over the third quarter of 2025 • Strong profitability and prudent balance sheet management results 13.4% 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 4Q'25 Earnings 4 4
Non-interest Bearing 21% Savings and Interest- bearing Checking 44% Reciprocal 20% Time 14% Brokered 0% $ 4 .6 $ 4 .6 $ 4 .6 $ 4 .6 $ 4 .6 $ 4 .7 $ 4 .6 $ 4 .7 $ 4 .9 $ 4 .8 1 .8 0 % 1 .9 9 % 2 .0 1 % 2 .0 3 % 2 .1 1 % 1 .9 3 % 1 .8 0 % 1 .7 7 % 1 .8 2 % 1 .6 7 % 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 Q 4 '2 5 Total Deposits Cost Of Deposits Low-Cost Deposit Franchise Focused on Core Deposit Growth • Substantial core funding – $4.08 billion of non-maturity deposit accounts (85.7% of total deposits). • Core deposit increase of $57.1 million (4.8% annualized) in 4Q'25. • Time deposit increase of $2.0 million (1.2% annualized) in 4Q'25. • Total deposits increased $107.6 million (2.3%) since 12/31/24 with non-interest bearing down $21.7 million, savings and interest- bearing checking up $117.9 million, reciprocal up $67.9 million, time up $34.6 million and brokered time down $91.2 million. • Deposits by Customer Type: − Retail – 47% − Commercial – 37% − Municipal – 16% Deposit Composition 12/31/25 Cost of Deposits (%)/Total Deposits ($B) 5 Core Deposits: 85.7% $4.8B
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 .1 1 % 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 % 1 .6 7 % 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% D e c -1 6 M a r- 1 7 J u n -1 7 S e p -1 7 D e c -1 7 M a r- 1 8 J u n -1 8 S e p -1 8 D e c -1 8 M a r- 1 9 J u n -1 9 S e p -1 9 D e c -1 9 M a r- 2 0 J u n -2 0 S e p -2 0 D e c -2 0 M a r- 2 1 J u n -2 1 S e p -2 1 D e c -2 1 M a r- 2 2 J u n -2 2 S e p -2 2 D e c -2 2 M a r- 2 3 J u n -2 3 S e p -2 3 D e c -2 3 M a r- 2 4 J u n -2 4 S e p -2 4 D e c -2 4 M a r- 2 5 J u n -2 5 S e p -2 5 D e c -2 5 Historic IBC Cost of Funds (excluding sub debt) vs. the Federal Funds Rate (with Deposit Balances) D e p o s it B a la n c e s ( $ i n t h o u s a n d s ) 6 F e d e ra l F u n d s R a te Account Type Cycle Beta Sav & Int-bearing chking 21.9% Reciprocal 68.5% Time 54.0% Total int-bearing Dep (excl brokered) 41.8% Total COF IBC (excl Sub Debt) 32.2% IBC COF Fed Funds Spot Fed Effective Total Deposits
Commercial 52% Mortgage 36% Installment 13% Held for Sale 1% $ 3 .7 $ 3 .8 $ 3 .8 $ 3 .9 $ 3 .9 $ 4 .0 $ 4 .1 $ 4 .2 $ 4 .2 $ 4 .3 5 .5 3 % 5 .7 3 % 5 .8 0 % 5 .9 3 % 5 .9 6 % 5 .8 3 % 5 .7 4 % 5 .7 6 % 5 .8 1 % 5 .6 4 % 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 4 Q '2 5 Total Portfolio Loans Yield on Loans Diversified Loan Portfolio Focused on High Quality Growth • Portfolio loan changes in 4Q'25: − Commercial – increased $88.5 million. …Average new origination yield of 6.37% vs a 6.10% portfolio yield. − Mortgage – increased $7.2 million. …Average new origination yield of 6.29% vs a 4.86% portfolio yield. − Installment – decreased $17.7 million. …Average new origination yield of 7.12% vs a 5.20% portfolio yield. • Mortgage loan portfolio weighted average FICO of 752 and average balance of $187,373. • Installment weighted average FICO of 755 and average balance of $25,631. • Commercial loan rate mix: − 38% fixed / 62% variable. − Indices – 36% tied to Prime and 64% tied to SOFR. • Mortgage loan (including HELOC) rate mix: − 60% fixed / 40% adjustable or variable. − 7% tied to a US Treasury rate and 93% tied to SOFR.Note: Portfolio loans exclude loans HFS. Loan Composition 12/31/25 Yield on Loans (%)/ Total Portfolio Loans ($B) 7 $4.3B
8.76%, Commercial Industrial, $202 4.68%, Multifamily, $141 4.47%, Retail, $101 4.17%, Office, $101 3.37%, Construction, $70 2.20%, 1-4 Family, $47 1.27%, Special Purpose, $41 1.14%, Land, Vacant Land and Development, $26 Concentrations within $2.2B Commercial Loan Portfolio C&I or Owner Occupied Loans by Industry as a % of Total Commercial Loans ($ in millions) Investor RE by Collateral Type as a % of Total Commercial Loans ($ in millions) Note: $1.486 billion, or 67.1% of the commercial loan portfolio is C&I or owner occupied, while $727 million, or 32.9% is investment real estate. The percentage concentrations are based on the entire commercial portfolio of $2.21 billion as of December 31, 2025 8 $727MM 33% 8.26% $183 8.23% $182 7.78% $172 7.08% $157 6.38% $141 5.13% $114 4.64% $103 3.59% $79 2.67% $59 $52 $51 $193 $1,486MM 67% Manufacturing Retail Health Care and Social Assistance Construction Real Estate Rental and Leasing Hotel and Accomodations Other Services (except Public Administration) Wholesale Finance and Insurance Professional, Scientific, and Technical Services 2.34% 9.35% 2.94%
$5.1 $3.7 $5.2 $6.0 $7.1 $8.2 $20.4 $23.1 $0.2 $0.5 $0.6 $0.9 $0.4 $0.4 $0.6 $0.9 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2021 2022 2023 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 Non-performing Loans 90+ Days PD ORE/ORA $2.3 $3.1 $3.3 $7.0 $3.9 $6.6 $5.1 $7.8 0.1% 0.1% 0.1% 0.2% 0.1% 0.2% 0.1% 0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% $- $2.0 $4.0 $6.0 $8.0 $10.0 2021 2022 2023 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 30-89 Days PD 30-89 Days PD / Total Loans $0.2 $0.5 $0.6 $0.9 $0.4 $0.4 $0.6 $0.9 $- $0.2 $0.4 $0.6 $0.8 $1.0 2021 2022 2023 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 $5.1 $3.7 $5.2 $6.0 $7.1 $8.2 $20.4 $23.1 0.2% 0.1% 0.1% 0.1% 0.1% 0.2% 0.5% 0.5% -0.1% 0.1% 0.3% 0.5% 0.7% 0.9% $- $5.0 $10.0 $15.0 $20.0 $25.0 2021 2022 2023 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Non-performing Loans (NPLs) NPLs / Total Loans Note 1: Non-performing loans and non-performing assets exclude troubled debt restructurings that are performing. Credit Quality Summary Non-performing Loans ($ in Millions) ORE/ORA ($ in Millions) 30 to 89 Days Delinquent ($ in Millions) Non-performing Assets ($ in Millions) 9
14.3 14.2 14.5 14.2 13.7 13.6 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 11.2 11.2 11.4 11.4 11.6 11.5 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 9.6 9.9 9.9 10.1 10.1 10.2 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 8.1 8.0 8.3 8.2 8.4 8.7 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 • 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 9.5% • The reduction in Total RBC ratio 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 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 $ 4 6 .4 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 Q4'25 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 3.62 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 3.90 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 1.73 0 1 2 3 4 5 6 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 Q 4 '2 5 Net Interest Margin (FTE) Average Effective FF Yield Cost of Funds Net Interest Margin/Income • Net interest income was $46.4 million in 4Q'25 compared to $42.9 million in the prior year quarter. The change is due to an increase in average earning assets and the net interest margin compared to the year- ago quarter. • Net interest margin was 3.62% during the Fourth Quarter of 2025, compared to 3.45% in the year-ago quarter and 3.54% in the third quarter of 2025. • 10th consecutive quarter of increasing net interest income. Yields, NIM and Cost of Funds (%) Net Interest Income ($ in Millions) 11
3Q'25 3.54% Change in Earning Asset Yield/Mix -0.13% Change in Int Bearing Liability Mix 0.09% Decrease in Funding Costs 0.13% Int Charge-off on Commercial Loan -0.01% 4Q'25 3.62% 4Q'25 NIM Changes Linked Quarter Average Balances and FTE Rates ($ in thousands) Linked Quarter Analysis 12 4Q25 3Q25 Change Avg Bal Inc/Exp Yield Avg Bal Inc/Exp Yield Avg Bal Inc/Exp Yield Cash $79,621 $780 3.89% $113,660 $1,261 4.40% ($34,039) ($481) -0.51% Investments 833,371 6,863 3.29% 844,464 7,127 3.38% (11,093) (264) -0.08% Commercial loans 2,168,947 34,106 6.24% 2,103,649 34,783 6.56% 65,298 (677) -0.32% Mortgage loans 1,532,931 18,779 4.90% 1,534,370 19,133 4.99% (1,439) (354) -0.09% Consumer loans 547,511 7,343 5.36% 563,538 7,429 5.27% (16,027) (86) 0.09% Earning assets $5,162,381 $67,871 5.24% $5,159,681 $69,733 5.38% $2,700 ($1,862) -0.15% Nonmaturity deposits $2,932,767 $12,743 1.72% $2,850,176 $13,282 1.85% $82,591 (539) -0.12% CDARS deposits 109,779 938 3.39% 108,567 989 3.61% 1,212 (51) -0.22% Retail Time deposits 667,990 5,682 3.37% 643,636 5,774 3.56% 24,354 (92) -0.18% Brokered deposits 70,055 746 4.22% 178,155 1,928 4.29% (108,100) (1,182) -0.07% Bank borrowings 25,920 243 3.72% 14,501 139 3.80% 11,419 104 -0.08% IBC debt 39,856 719 7.16% 66,989 1,817 10.81% (27,133) (1,098) -3.66% Cost of funds $3,846,367 $21,071 2.17% $3,862,024 $23,929 2.46% ($15,657) ($2,858) -0.29% Free funds $1,316,014 $1,297,657 $18,357 Net interest income $46,800 $45,804 $996 Net interest margin 3.62% 3.54% 0.08%
December 31, 2025 -200 -100 Base-rate 100 200 Net Interest Income $191,340 $194,101 $196,298 $198,944 $202,205 Change from Base -2.53% -1.12% 1.35% 3.01% September 30, 2025 -200 -100 Base-rate 100 200 Net Interest Income $188,085 $190,263 $192,535 $195,562 $198,049 Change from Base -2.31% -1.18% 1.57% 2.86% Interest Rate Risk Management • The base case modeled NII is slightly higher during the quarter due to 9 basis points of modeled margin expansion. Asset and liability yields both declined during the quarter given 50 basis points of Fed easing. The NIM benefited from mix shifts in both assets and liabilities. On the asset side, solid commercial loan growth was funded by runoff in overnight liquidity, investments and lower yielding retail loans. Funding costs benefited from growth in nonmaturity deposits and a decline in wholesale funding. The NIM further benefited from a reversal of excess liquidity in 4Q25 (lower overnight liquidity and wholesale funding). • The NII sensitivity position is largely unchanged for rate changes of +/- 200 basis points. The bank has slightly more exposure to larger rate declines (-300 and -400) and a larger benefit from larger rate increases (+300 and +400). The shift in sensitivity for larger rate moves is due to shifts in nonmaturity deposit modeling, primarily caused by 50 basis points of Fed cuts during the quarter. • Base-rate is a static balance sheet applying the spot yield curve from the valuation date. • Stable core funding base. Transaction accounts fund 38.6% of assets and other non-maturity deposits fund another 17.8% of assets. Low wholesale funding of just 2.5% of assets. • 38.3% of assets reprice in 1 month and 49.2% 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 $3,186 Service Chg Dep $3,096 Gain (Loss)- Mortgage Sale $1,372 Equity Securities at Fair Value $- Gain (Loss)- Securities $(15) Mortgage loan servicing, net $899 Investment & insurance commissions $1,006 Bank owned life insurance $306 Other income $2,108 Strong Non-interest Income • The $6.9 million comparative quarterly decrease 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: − $1.4 million in net gains on mortgage loans in 4Q'25 vs. $1.7 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. − $134.3 million in mortgage loan originations in 4Q'25 vs. $134.1 million in 4Q’24 and $145.6 million in 3Q'25. − 4Q'25 mortgage loan servicing includes a $0.2 million ($0.01) per diluted share, after tax) increase in fair value adjustment due to price compared to an increase of $6.5 million ($0.24 per diluted share, after tax) in the year ago quarter. Source: Company documents. 4Q'25 Non-interest Income (thousands) Non-interest Income Trends ($M) 14 $12.0MM $ 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 $ 1 2 .0 2 0 .0 % 1 2 .2 % 1 6 .2 % 1 8 .6 % 1 2 .2 % 2 2 .2 % 1 3 .6 % 1 4 .5 % 1 4 .7 % 1 5 .1 % -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 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 Q 4 '2 5 Non-interest Income Non-interest Inc/Operating Rev (%)
5 9 .6 % 5 9 .9 % 6 0 .7 % 6 0 .3 % 6 0 .9 % 6 2 .2 % 6 0 .9 % 6 1 .4 % 6 0 .9 % 6 0 .0 % 6 0 .5 % 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 4 Q '2 5 $ 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 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 Q 4 '2 5 Compensation and Benefits Loan and Collection Occupancy Data Processing FDIC Insurance Other Focus on Improved Efficiency • 4Q'25 efficiency ratio of 61.2%. • Compensation and employee benefits expense of $22.6 million, a decrease of $0.3 million from the prior year quarter. • Performance-based compensation was $0.5 million lower than the prior year quarter. • Payroll taxes and employee benefits decreased $0.2 million primarily due to lower healthcare related costs. • Data processing costs decreased by $0.3 million primarily due to reimbursement from the core provider for billing overages and other credits received that was partially offset by core data processor annual asset growth and CPI related cost increases as well as price increases in other software solutions. • Opportunities exist to gain additional efficiencies as we continue to optimize our delivery channels. Non-interest Expense ($M) Efficiency Ratio (4 quarter rolling average) Source: Company documents. 15 $ 3 7 .0 $ 3 6 .1
Outlook for 2025 Outlook for 2025 *as of January, 2025 • 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. • 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. • 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. 4Q'25 Update • Total portfolio loans increased $78.0 million (7.4% annualized) in 4Q'25 which is above our forecasted range. Commercial loan growth of $88.5 million (16.5% annualized), mortgage loan increase of $7.2 million (1.9% annualized) and installment loan decrease of $17.7 million (-12.6% annualized). YTD loan growth of $237.5 million (5.9% annualized) which is within our forecasted range. • 4Q'25 net interest income was $3.5 million (8.2%) higher than the prior year quarter which is within the forecasted range. The net interest margin was 3.62% for the current quarter and 3.45% for the prior year quarter and up 0.08% from the linked quarter. YTD net interest income was $13.8 (8.3%) higher than the prior year which is within the forecasted range. YTD net interest margin increased 0.18% over the prior year, below our forecast. • The provision for credit losses was an expense of $1.9 million (0.18% annualized) for the Fourth Quarter within the forecasted range. YTD provision (expense) for credit losses of $6.1 million or 0.15% of average total portfolio loans was at bottom of our forecasted range. 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 Outlook for 2025 *as of January, 2026 • 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. • 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. • Approximately a 19% effective income tax rate in 2025 This assumes a 21% statutory federal corporate income tax rate during 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. 4Q'25 Update • Non-interest income totaled $12.0 million in 4Q'25, which is within the forecasted range. YTD non-interest income was $10.7 (-19.0%) lower than the prior year which is greater than the forecasted range of -14.0% to -14.5%. • Total non-interest expense was $36.1 million in the 4Q'25, which was higher than our forecasted quarterly range. YTD non-interest expense was $3.1 (2.3%) million higher than the prior year which was below our forecasted range. Actual effective income tax rate of 8.6% for the Fourth Quarter of 2025 and 15.7% for the full year 2025 which is below our forecast. Repurchased 407,113 shares for an aggregate purchase price of $12.4 million for full year 2025. NON-INTEREST INCOME NON-INTEREST EXPENSES INCOME TAXES SHARE REPURCHASES 17
Outlook for 2026 Outlook for 2026 *as of January, 2026 • IBCP forecast of approximately 4.5%-5.5% overall loan growth is based on an increase in commercial loans (9%-11%) with mortgage loans (0%-1%) and installment loans declining (5.0%-5.5%). • This growth forecast also assumes a stable Michigan economy. • 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 2025 levels. • IBCP forecast of high-single digit (7%-8%) 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 (0.18% - 0.23%) in 2026 compared to full-year 2025. Primary driver is a decrease in yield on interest bearing liabilities that is partially offset by a decrease in earning asset yield. • 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 1.48% at 12/31/25 • A full year 2026 provision (expense) for credit losses of approximately 0.20%-0.25% of average total portfolio loans would not be unreasonable. LENDING Continued growth NET INTEREST INCOME Growth driven primarily by higher average earning assets PROVISION FOR CREDIT LOSSES Steady asset quality metrics 18
Outlook for 2026 Outlook for 2026 *as of January, 2026 • Quarterly 2026 forecasted range of $11.0M to $13.0M. Full year up 3.0% to 4.0% from 2025 actual of $45.6M • Expect mortgage loan origination volumes to be down 6.0% to 7.0% and net gain on sale to be down 14.0% to 16.0% compared to full year 2025. Assumes mortgage loan servicing net of approximately $0.5M per quarter in 2026. • IBCP forecasts 2026 quarterly range of $36.0M to $37.0M with the total for the year up 5.0% to 6.0% from the 2025 actual of $138.2M. • The primary driver is an increase in compensation and employee benefits, data processing; loan and collections and occupancy. • Approximately a 17% effective income tax rate in 2026.This assumes a 21% statutory federal corporate income tax rate during 2026. • 2026 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 2026. NON-INTEREST INCOME NON-INTEREST EXPENSES INCOME TAXES SHARE REPURCHASES 19
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 20
Question and Answer Session Closing Remarks NASDAQ: IBCP Thank you for attending 21
Appendix Additional Financial Data and Non-GAAP Reconciliations 22
Historical Financial Data 23 Year Ended December 31, Quarter Ended, ($M except per share data) 2022 2023 2024 2025 12/31/24 3/31/25 6/1/25 9/30/25 12/31/25 Balance Sheet: Total Assets $5,000 $5,264 $5,338 $5,506 $5,338 $5,328 $5,419 $5,493 $5,506 Portfolio Loans $3,465 $3,791 $4,039 $4,276 $4,039 $4,073 $4,164 $4,198 $4,276 Deposits $4,379 $4,622 $4,654 $4,762 $4,654 $4,634 $4,659 $4,859 $4,762 Tangible Common Equity $317 $374 $425 $474 $425 $438 $440 $461 $474 Profitability: Pre-Tax, Pre-Provision Income $83.7 $79.9 $87.5 $87.4 $25.0 $19.8 $22.2 $23.2 $22.2 Pre-Tax, Pre-Prov / Avg. Assets 1.72% 1.56% 1.77% 1.62% 1.88% 1.48% 1.67% 1.69% 1.62% Net Income(1) $63.8 $59.1 $66.8 $68.5 $18.5 $15.6 $16.9 $17.5 $18.6 Diluted EPS $2.97 $2.79 $3.16 $3.27 $0.87 $0.74 $0.81 $0.84 $0.89 Return on Average Assets(1) 1.32% 1.15% 1.27% 1.27% 1.39% 1.18% 1.27% 1.27% 1.35% Return on Average Equity(1) 18.5% 16.0% 15.7% 14.4% 16.3% 13.7% 14.7% 14.6% 14.8% Net Interest Margin (FTE) 3.32% 3.26% 3.38% 3.56% 3.45% 3.49% 3.58% 3.54% 3.62% Efficiency Ratio 59.4% 60.8% 60.8% 60.5% 59.1% 62.2% 59.7% 58.9% 61.2% Asset Quality: NPAs / Assets 0.08% 0.11% 0.13% 0.44% 0.13% 0.14% 0.16% 0.38% 0.44% NPAs / Loans + OREO 0.12% 0.15% 0.17% 0.56% 0.17% 0.18% 0.21% 0.50% 0.56% ACL / Total Portfolio Loans 1.51% 1.44% 1.47% 1.48% 1.47% 1.47% 1.47% 1.49% 1.48% NCOs / Avg. Loans 0.00% 0.01% 0.02% 0.04% 0.01% 0.01% 0.02% 0.07% 0.01% Capital Ratios: TCE Ratio 6.4% 7.2% 8.0% 8.7% 8.0% 8.3% 8.2% 8.4% 8.7% Leverage Ratio 8.8% 9.0% 9.9% 10.3% 9.9% 9.9% 10.0% 10.1% 10.3% Tier 1 Capital Ratio 11.4% 11.5% 12.1% 12.4% 12.1% 12.3% 12.2% 12.4% 12.4% Total Capital Ratio 13.7% 13.7% 14.2% 13.6% 14.2% 14.5% 14.2% 13.7% 13.6%
24 Historic Financial Performance Year Ended December 31, ($M except per share data) 2020 2021 2022 2023 2024 2025 5 Year CAGR Balance Sheet: Total Assets $4,204 $4,705 $5,000 $5,264 $5,338 $5,506 5.5% Portfolio Loans $2,734 $2,905 $3,465 $3,791 $4,039 $4,276 9.4% Deposits $3,637 $4,117 $4,379 $4,623 $4,654 $4,762 5.5% Tangible Common Equity $357 $367 $317 $374 $425 $473 5.8% Profitability: Pre-Tax, Pre-Provision Income $81.9 $75.4 $83.1 $79.9 $87.5 $87.4 1.3% Pre-Tax, Pre-Prov / Avg. Assets 2.08% 1.62% 1.68% 1.56% 1.67% 1.62% - Net Income(1) $56.2 $62.9 $63.4 $59.1 $66.8 $68.5 4.0% Diluted EPS $2.53 $2.88 $2.97 $2.79 $3.16 $3.27 5.3% Return on Average Assets(1) 1.43% 1.41% 1.31% 1.15% 1.27% 1.27% - Return on Average Equity(1) 15.68% 16.13% 18.41% 16.40% 15.66% 14.43% - Net Interest Margin (FTE) 3.34% 3.10% 3.32% 3.26% 3.38% 3.56% - Efficiency Ratio 59.24% 62.87% 59.71% 60.67% 60.83% 60.50% - Asset Quality: NPAs / Assets 0.21% 0.11% 0.08% 0.11% 0.13% 0.44% - NPAs / Loans + OREO 0.32% 0.18% 0.12% 0.15% 0.17% 0.56% - Reserves / Total Loans 1.30% 1.63% 1.51% 1.44% 1.47% 1.48% - NCOs / Avg. Loans 0.11% (0.07%) 0.00% 0.01% 0.02% 0.03% - Capital Ratios: TCE Ratio 8.6% 7.9% 6.4% 7.2% 8.0% 8.7% - Leverage Ratio 9.2% 8.8% 8.9% 9.0% 9.9% 10.3% - Tier 1 Capital Ratio 13.3% 12.1% 11.4% 11.5% 12.1% 12.4% - Total Capital Ratio 16.0% 14.5% 13.6% 13.7% 14.2% 13.6% - Shareholder Value: TBV/Share $ 16.33 $ 17.33 $ 15.04 $ 17.96 $ 20.33 $ 23.04 7.1% Dividends Paid per Share $ 0.80 $ 0.84 $ 0.88 $ 0.92 $ 0.96 $ 1.04 5.4% Value of Shares Repurchased $ 14.23 $ 17.3 $ 4.0 $ 5.2 $ - $ 12.4 -
Sources of Liquidity ($ in Millions) 4Q 2025 Current On-balance sheet Excess reserves at the Fed $ 86.2 Unpledged AFS Securities $ 489.9 Total On-balance sheet $ 576.1 On balance sheet liquidity to total deposits 11% Available Sources of Liquidity Unused FHLB & FRB (including BTFP) $ 2,005.5 Borrow capacity on unpledged bonds $ 428.3 Total Available Sources $ 2,433.8 Sources of Liquidity to total deposits 51% 76% 60% 58% 56% 56% 57% 49.0% 2 2 2 % 2 1 8 % 1 9 5 % 1 9 6 % 1 9 1 .8 % 1 8 0 .7 % 2 0 7 .0 % 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 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 (207%) estimated uninsured deposit balances. • Attractive loan to deposit ratio of 89.8%. • Uninsured deposit to total deposits of approximately 24.7%, excluding brokered time deposits. Sources of Liquidity 25
$1,996 $1,141 $430 $19 $259 $592 $325 $2,255 $1,733 $755 $19 Consumer Commercial Public Funds Brokered Insured Deposits Uninsured Deposits $ 3 ,6 3 6 $ 3 ,5 7 0 $ 3 ,5 9 4 $ 3 ,5 8 6 $ 3 ,6 3 7 $ 3 ,7 2 0 $ 3 ,5 8 6 $978 $1,057 $1,060 $1,048 $1,022 $1,139 $1,176 $4,614 $4,627 $4,654 $4,634 $4,659 $4,859 $4,762 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Insured Deposits Uninsured Deposits Granular Deposit Base • Average deposit account balance of approximately $22,512. • Average deposit balance excluding reciprocal deposit of $17,971. • Average Commercial deposit balance of $100,655. • Average retail deposit balance of $11,687. • 10 largest deposit accounts total $394.8 million or 8.29% of total deposits. − $272.7 million in ICS with FDIC coverage. • 100 largest deposit accounts total $1.16 billion or 24.28% of total deposits. − $657.3 million in ICS with FDIC coverage. Note: Uninsured deposit calculation is an approximation. Uninsured Deposit by Segment (12/31/25) Uninsured Deposit Trend ($MM) 26
Non-GAAP to GAAP Reconciliation 27 December 31, September 30, June 30, March 31, December 31, 2025 2024 2023 2022 2025 2025 2025 2025 2024 Net interest income $180,015 $166,248 $156,329 $149,561 $46,354 $45,361 $44,615 $43,685 $42,851 Non-interest income 45,644 56,362 50,676 61,909 11,958 11,937 11,325 10,424 19,121 Non-interest expense 138,233 135,096 127,119 128,341 36,078 34,131 33,762 34,262 36,987 Pre-Tax, Pre-Provision Income 87,426 87,514 79,886 83,129 $22,234 $23,167 $22,178 $19,847 $24,985 Provision for credit losses 6,135 4,468 6,210 5,341 1,923 1,991 1,500 721 2,217 Income tax expense 12,750 16,256 14,609 14,437 1,739 3,674 3,801 3,536 4,307 Net income $68,541 $66,790 $59,067 $63,351 $18,572 $17,502 $16,877 $15,590 $18,461 Average total assets $5,401,441 $5,239,952 $5,115,624 $4,825,723 $5,449,518 $5,451,922 $5,324,959 $5,378,022 $5,300,368 Performance Ratios Return on average assets 1.27% 1.27% 1.15% 1.31% 1.35% 1.27% 1.27% 1.18% 1.39% Pre-tax, Provision return on average assets 1.62% 1.67% 1.56% 1.72% 1.62% 1.69% 1.67% 1.50% 1.88% Year Ended December 31, Quarter Ended (Dollars in thousands)
Reconciliation of Non-GAAP Financial Measures 28 Reconciliation of Non-GAAP Financial Measures 2025 2024 2025 2024 Net Interest Margin, Fully Taxable Equivalent ("FTE") Net interest income 46,354$ 42,851$ 180,015$ 166,248$ Add: taxable equivalent adjustment 446 389 1,785 902 Net interest income - taxable equivalent 46,800$ 43,240$ 181,800$ 167,150$ Net interest margin (GAAP) (1) 3.58% 3.42% 3.52% 3.36% Net interest margin (FTE) (1) 3.62% 3.45% 3.56% 3.38% (1) Quarter to date are annualized. Three Months Ended Twelve Months Ended December 31, December 31, (Dollars in thousands)
Reconciliation of Non-GAAP Financial Measures (continued) 29 Reconciliation of Non-GAAP Financial Measures (continued) Independent Bank Corporation Tangible Common Equity Ratio December 31, Sepetmber 30, June 30, March 31, December 31, 2025 2024 2023 2022 2025 2025 2025 2025 2024 Common shareholders' equity 502,951$ 454,686$ 404,449$ 347,596$ 502,951$ 490,742$ 469,250$ 467,277$ 454,686$ Less: Goodwill 28,300 28,300 28,300 28,300 28,300 28,300 28,300 28,300 28,300 Other intangibles 1,001 1,488 2,004 2,551 1,001 1,123 1,244 1,366 1,488 Tangible common equity 473,650$ 424,898$ 374,145$ 316,745$ 473,650$ 461,319$ 439,706$ 437,611$ 424,898$ Total assets $ 5,505,720 $ 5,338,104 $ 5,263,726 $ 4,999,787 $ 5,505,720 $ 5,493,113 $ 5,418,519 $ 5,328,428 $ 5,338,104 Less: Goodwill 28,300 28,300 28,300 28,300 28,300 28,300 28,300 28,300 28,300 Other intangibles 1,001 1,488 2,004 2,551 1,001 1,123 1,244 1,366 1,488 Tangible assets $ 5,476,419 $ 5,308,316 $ 5,233,422 $ 4,968,936 $ 5,476,419 $ 5,463,690 $ 5,388,975 $ 5,298,762 $ 5,308,316 Common equity ratio 9.14% 8.52% 7.68% 6.95% 9.14% 8.93% 8.66% 8.77% 8.52% Tangible common equity ratio 8.65% 8.00% 7.15% 6.37% 8.65% 8.44% 8.16% 8.26% 8.00% Year Ended December 31, Quarter Ended (Dollars in thousands)