Independent Bank Corporation Announces the Adoption of its 2026 Share Repurchase Plan

Rhea-AI Summary

Independent Bank Corporation (NASDAQ: IBCP) announced that its Board authorized a 2026 share repurchase plan on December 16, 2025 to buy back up to 1,100,000 shares, representing approximately 5% of common stock. The plan is authorized through December 31, 2026 and contemplates open‑market and other transactions. Repurchases will depend on securities law limits, trading price, regulatory requirements, alternative capital uses, and financial performance. The company expects to fund repurchases from cash on hand. The 2025 repurchase plan expires December 31, 2025; through December 16, 2025 the company repurchased 407,113 shares at an aggregate cost of $12.4 million. Independent Bank has total assets of approximately $5.5 billion.

Positive

• Authorization to repurchase up to 1,100,000 shares (~5% of common stock)
• Plan duration through December 31, 2026 provides 12-month execution window
• Repurchases funded from cash on hand, avoiding new debt financing
• Year-to-date repurchases: 407,113 shares at an aggregate cost of $12.4M

Negative

• Repurchases use cash on hand, potentially reducing funds for other investments
• Plan does not obligate any purchases, leaving repurchase timing and size uncertain

Key Figures

2026 buyback authorization 1,100,000 shares Maximum shares under 2026 repurchase plan, ~5% of common stock

2026 plan duration Through Dec 31, 2026 Authorized term for 2026 share repurchase plan

2025 plan expiry Dec 31, 2025 End date of existing 2025 share repurchase plan

Shares repurchased 2025 407,113 shares Repurchased through Dec 16, 2025 under 2025 plan

2025 repurchase cost $12.4 million Aggregate cost for 407,113 shares under 2025 plan

Total assets $5.5 billion Approximate consolidated assets of Independent Bank Corporation

Market Reality Check

$35.32 Last Close

Volume Volume 119,926 is below 20-day average 146,438 (relative activity 0.82x). normal

Technical Price 35.22 is trading above 200-day MA at 31.65, indicating a pre-news uptrend.

Peers on Argus

IBCP was up 1.03% pre-news while key regional bank peers were mixed, with moves between about -1% and +1.4%, suggesting a stock-specific setup rather than a unified sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Oct 28	Quarterly results	Positive	-0.8%	Q3 2025 earnings with higher net income and loan, deposit growth.
Oct 21	Dividend declaration	Positive	-0.3%	Announced $0.26 quarterly cash dividend and reiterated asset base.
Sep 29	Earnings date set	Neutral	-1.7%	Scheduled Q3 2025 earnings release and conference call details.
Aug 15	Management update	Negative	-2.5%	Announcement of passing of former long-time chairman and executive.
Jul 24	Quarterly results	Neutral	-4.0%	Q2 2025 results with mixed earnings but strong growth and credit metrics.

Pattern Detected

Recent positive corporate updates (earnings, dividends, capital actions) have often seen modest negative next-day reactions, hinting at a tendency for the stock to underreact or fade good news.

Recent Company History

Over the last six months, Independent Bank Corporation reported solid Q2 and Q3 2025 results, with rising net interest income, loan and deposit growth, and strong credit quality, yet shares often eased after these reports. The company also maintained shareholder returns through dividends and repurchases, and communicated regularly via conferences and filings. A somber leadership-related announcement in Aug 2025 drew a more pronounced negative reaction. Today’s new buyback plan follows this pattern of ongoing capital return and balance sheet strength.

Market Pulse Summary

This announcement extends Independent Bank Corporation’s capital return strategy via a 2026 share repurchase plan for up to 1,100,000 shares, roughly 5% of its common stock, funded from cash on hand. It follows meaningful buybacks in 2025 totaling 407,113 shares at a cost of $12.4 million. Investors may track actual repurchase activity, balance sheet strength around $5.5 billion in assets, and future earnings to gauge how effectively the plan supports per-share metrics.

Key Terms

share repurchase plan financial

"its Board of Directors authorized a 2026 share repurchase plan on December 16"

A share repurchase plan is when a company uses cash to buy its own stock from the market, reducing the number of shares available to investors. This matters because fewer shares can make each remaining share represent a larger piece of ownership and boost earnings-per-share—like slicing a pizza into fewer pieces so each slice is bigger—and it can signal management thinks the stock is undervalued, though it also means cash won’t be used for other purposes.

open market transactions financial

"expects to accomplish 2026 share repurchases through open market transactions"

Open market transactions are the buying and selling of a company’s shares or other securities conducted on public exchanges or through the wider market rather than through private deals or negotiated placements. They matter to investors because these trades change supply and demand in real time—like shoppers affecting a store’s inventory—and so can move prices, signal management or investor sentiment, affect liquidity, and alter ownership stakes that influence future returns and risk.

privately negotiated transactions financial

"through other means, such as privately negotiated transactions"

Privately negotiated transactions are deals made directly between parties without involving a public marketplace or open auction. They are like private sales between two individuals rather than items sold at a busy marketplace open to everyone. For investors, these transactions can offer more tailored terms and privacy, but they may also carry different risks and less transparency compared to public exchanges.

AI-generated analysis. Not financial advice.

GRAND RAPIDS, Mich., Dec. 16, 2025 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ: IBCP), the holding company of Independent Bank, a Michigan-based community bank, announced that its Board of Directors authorized a 2026 share repurchase plan on December 16, 2025. Under the terms of the 2026 share repurchase plan, the Company is authorized to buy back up to 1,100,000 shares, representing approximately 5% of its common stock. The 2026 share repurchase plan is authorized to last through December 31, 2026.

The Company intends to accomplish 2026 share repurchases through open market transactions, though the Company could accomplish repurchases through other means, such as privately negotiated transactions. The timing and amount of any share repurchases will depend on a variety of factors, including, among others, securities law restrictions, the trading price of the Company's common stock, regulatory requirements, potential alternative uses for capital, and the Company's financial performance. The 2026 share repurchase plan does not obligate the Company to acquire any particular amount of common stock, and it may be modified or suspended at any time at the Company's discretion. The Company expects to fund any repurchases from cash on hand.

The Company’s 2025 share repurchase plan will expire on December 31, 2025. Through December 16, 2025, the Company repurchased 407,113 shares of its common stock at an aggregate cost of $12.4 million.

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, investments, insurance and title services. 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.

Contact:	William B. Kessel, President and CEO, 616.447.3933
	Gavin A. Mohr, Chief Financial Officer, 616.447.3929

FAQ

What does Independent Bank (IBCP) authorized 2026 share repurchase plan mean for shareholders?

The Board authorized repurchases of up to 1,100,000 shares (~5%) through Dec 31, 2026, which may support share value if executed.

How much stock has IBCP repurchased so far in 2025 and at what cost?

Through December 16, 2025 IBCP repurchased 407,113 shares at an aggregate cost of $12.4 million.

How will Independent Bank (IBCP) fund the 2026 repurchases?

The company expects to fund any repurchases from cash on hand and not via new debt.

What is the maximum timeframe for IBCP's 2026 buyback program?

The 2026 share repurchase plan is authorized to last through December 31, 2026.

Will IBCP be obligated to buy the full 1,100,000 shares under the 2026 plan?

No; the plan does not obligate the company to acquire any specific amount and may be modified or suspended.

What methods may IBCP use to repurchase shares under the 2026 plan?

The company intends to repurchase via open market transactions but may use privately negotiated or other methods as permitted.