Independent Bank Corporation Reports 2025 Third Quarter Results

Rhea-AI Summary

Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2025 net income of $17.5 million ($0.84 diluted EPS) versus $13.8 million ($0.65) year-ago. Net interest income was $45.4 million (NIM 3.54%), up 8.4% YoY and 1.7% linked-quarter. Loans grew to $4.20 billion (+3.2% annualized linked-quarter) and deposits (less brokered time) rose $148.2 million (+13.0% annualized). Tangible common equity per share was $22.29. Non-performing assets rose to 0.38% of assets, driven by one commercial relationship; allowance for credit losses was 1.49% of loans. The company redeemed $40 million subordinated notes Aug 31, 2025, and repurchased 266,008 shares YTD under a 2025 plan.

Positive

• Net income $17.5M in Q3 2025 (+26.8% YoY)
• Net interest income $45.4M (+8.4% YoY)
• Deposits +$205.1M since Dec 31, 2024
• Tangible common equity per share $22.29

Negative

• Non-performing assets rose to 0.38% of assets
• Non-performing loans increased to $20.4M at 9/30/2025
• Net gains on mortgage loans declined from $2.2M to $1.5M

Insights

Banking Financial Analyst

Solid quarterly profit growth, stronger capital and deposit inflows, with credit metrics showing a single notable commercial stress.

Independent Bank delivered higher net income of $17.5 million and diluted EPS of $0.84, up from $13.8 million and $0.65 year‑over‑year, driven by a higher net interest income of $45.4 million and deposit growth of 13.0% (annualized) since June 30, 2025. Net interest margin remained near prior levels at 3.54%, while non‑interest income rose mainly from mortgage banking variances.

Capital and liquidity remain strong: tangible common equity rose to $461.3 million or $22.29 per share, and regulatory capital ratios sit well above minimums. Credit quality weakened quarter‑to‑quarter as non‑performing assets moved to 0.38% of assets, primarily from one commercial relationship, but the allowance equals 1.49% of loans and annualized net charge‑offs remained low at four basis points year‑to‑date.

Watch the commercial relationship resolution, the trend in non‑performing loans in the next one to two quarters, and mortgage servicing fair value swings following the January 31, 2025 MSR sale; these items will influence near‑term earnings and NIM volatility.

Third Quarter Highlights

Highlights for the third quarter of 2025 include:

• Increase in net interest income of $0.7 million (or 1.7%) over the second quarter of 2025;
• Increase in tangible common equity per share of common stock of $1.06 (or 20.0% annualized) from June 30, 2025;
• Net growth in total deposits, less brokered time deposits of $148.2 million (or 13.0% annualized) from June 30, 2025;
• Net growth in loans of $33.9 million (or 3.2% annualized) from June 30, 2025; and
• The payment of a 26 cent per share dividend on common stock on August 15, 2025.
  

GRAND RAPIDS, Mich., Oct. 28, 2025 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2025 net income of $17.5 million, or $0.84 per diluted share, versus net income of $13.8 million, or $0.65 per diluted share, in the prior-year period.

William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “I am proud of our team’s performance and pleased to report continued positive momentum in our third quarter 2025 results. Loan balances grew at an annualized rate of 3.2%, and total deposits, less brokered time deposits increased by 13.0% (annualized). We achieved growth in net interest income both sequentially and year-over-year. Our net interest margin displayed a small decline on a linked quarter basis primarily due to the acceleration of unamortized issuance costs on subordinated debt we redeemed in the third quarter. I would characterize the NIM as stable when adjusting for this event. Expense management remains a strength, as reflected in our third-quarter efficiency ratio of 58.86%, which demonstrates the effectiveness of our recent strategic investments. These solid fundamentals supported a 10.2% year-over-year increase in tangible common equity per share and strong returns, including a return on average assets of 1.27% and a return on average equity of 14.57%. Despite market uncertainty, our credit quality remains strong, with watch credits at low levels. Non-performing assets increased from 0.16% of total assets to 0.38% of total assets on a quarter-over-quarter basis primarily as the result of one commercial relationship where the borrower is experiencing financial difficulties. Our annualized net charge-offs continue at historically low levels, four basis points through the first three quarters of 2025. The allowance for credit losses stands at 1.49% of total loans. I am optimistic we will finish 2025 strong and remain excited about our prospects to grow our customer base and earnings in 2026.”

Significant items impacting comparable third quarter 2025 and 2024 results include the following:

• Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of  $(0.6) million ($(0.02) per diluted share, after taxes) for the three-month period ended September 30, 2025, as compared to $(4.2) million ($(0.16) per diluted share, after taxes) for the three-month period ended September 30, 2024.
  

Operating Results

The Company’s net interest income totaled $45.4 million during the third quarter of 2025, an increase of $3.5 million, or 8.4% from the year-ago period, and an increase of $0.7 million, or 1.7%, from the second quarter of 2025. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.54% during the third quarter of 2025, compared to 3.37% in the year-ago period, and 3.58% in the second quarter of 2025. The year-over-year quarterly increase in net interest income was due to both an increase in average interest-earning assets and the higher net interest margin. The linked quarter increase in net interest income was due to an increase in average interest-earning assets that was partially offset by a modest decrease in net interest margin. Average interest-earning assets were $5.16 billion in the third quarter of 2025, compared to $4.99 billion in the year-ago quarter and $5.04 billion in the second quarter of 2025.

Non-interest income totaled $11.9 million for the third quarter of 2025, compared to $9.5 million in the comparable prior year period. This change was primarily due to variances in mortgage banking related revenues.

Net gains on mortgage loans in the third quarters of 2025 and 2024 were approximately $1.5 million and $2.2 million, respectively. The comparative quarterly decrease in net gains on mortgage loans was due to a decrease in both gain on sale margin on mortgage loans sold and a decrease in the volume of mortgage loans sold.

Mortgage loan servicing, net, generated income (expense) of $0.1 million and $(3.1) million in the third quarters of 2025 and 2024, respectively. The significant variance in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in interest rates and the associated expected future prepayment levels and expected float rates as well as a decline in servicing revenue. The decline in servicing revenue is attributed to the sale of approximately $931 million of mortgage servicing rights on January 31, 2025. Capitalized mortgage loan servicing rights totaled $31.5 million and $46.8 million at September 30, 2025 and December 31, 2024, respectively. The decline during the first nine months of 2025 was primarily attributable to the aforementioned mortgage servicing right sale. This transaction was executed in part to reduce the amount of exposure the Company had to rate variances that may impact the mortgage servicing right asset valuation in future periods. While the magnitude of fair value adjustments would also be expected to decrease, those adjustments are dependent upon factors that are harder to predict.

Mortgage loan servicing, net activity is summarized in the following table:

	Three months ended								Nine months ended
	9/30/2025				9/30/2024				9/30/2025				9/30/2024
	(In thousands)
Mortgage loan servicing, net:
Revenue, net	$	1,614			$	2,248			$	5,145			$	6,681
Fair value change due to price		(576	)			(4,155	)			(2,328	)			(1,979	)
Fair value change due to pay-downs		(903	)			(1,223	)			(2,656	)			(3,016	)
Loss on sale of originated servicing rights	$	(61	)		$	—				(233	)			—
Total	$	74			$	(3,130	)		$	(72	)		$	1,686

Non-interest expenses totaled $34.1 million in the third quarter of 2025, compared to $32.6 million in the year-ago period.

The Company recorded income tax expense of $3.7 million in the third quarter of 2025. This compares to an income tax expense of $3.5 million in the third quarter of 2024. The change in income tax expense principally reflects changes in pre-tax earnings in 2025 relative to 2024.

Asset Quality

A breakdown of non-performing loans by loan type is as follows (1):

	9/30/2025				12/31/2024				9/30/2024
Loan Type	(Dollars in thousands)
Commercial	$	13,825			$	54			$	59
Mortgage		7,873				7,005				6,525
Installment		900				733				666
Sub total		22,598				7,792				7,250
Less - government guaranteed loans		2,243				1,790				2,102
Total non-performing loans	$	20,355			$	6,002			$	5,148
Ratio of non-performing loans to total portfolio loans		0.48	%			0.15	%			0.13	%
Ratio of non-performing assets to total assets		0.38	%			0.13	%			0.11	%
Ratio of allowance for credit losses to total non-performing loans		306.85	%			989.32	%			1115.85	%

(1) Non performing loans include non-accrual loans and loans 90 days or more past due and still accruing interest.

The provision for credit losses was an expense of $1.99 million and $1.49 million in the third quarters of 2025 and 2024, respectively. We recorded loan net charge offs of $0.73 million and $0.31 million in the third quarters of 2025 and 2024, respectively. At September 30, 2025, the allowance for credit losses for loans totaled $62.5 million, or 1.49% of total portfolio loans compared to $59.4 million, or 1.47% of total portfolio loans at December 31, 2024.

Balance Sheet, Capital and Liquidity

Total assets were $5.49 billion at September 30, 2025, an increase of $155.0 million from December 31, 2024. Loans, excluding loans held for sale, were $4.20 billion at September 30, 2025, compared to $4.04 billion at December 31, 2024.  Deposits totaled $4.86 billion at September 30, 2025, an increase of $205.1 million from December 31, 2024. This increase is primarily due to increases in savings and interest-bearing checking, reciprocal, time and brokered time deposits that were partially offset by decreases in non-interest bearing deposits.

Cash and cash equivalents totaled $208.7 million at September 30, 2025, versus $119.9 million at December 31, 2024. Securities available for sale (“AFS”) totaled $502.6 million at September 30, 2025, versus $559.2 million at December 31, 2024.

On August 31, 2025 we redeemed our $40 million floating subordinated notes. This redemption did not affect our status as well-capitalized for regulatory purposes or have a material impact on our liquidity resources.

Total shareholders’ equity was $490.7 million at September 30, 2025, or 8.93% of total assets compared to $454.7 million or 8.52% at December 31, 2024. Tangible common equity totaled $461.3 million at September 30, 2025, or $22.29 per share compared to $424.9 million or $20.33 per share at December 31, 2024. The increases in shareholders’ equity as well as tangible common equity are primarily the result of earnings retention and a reduction in the accumulated other comprehensive loss.

The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:

Regulatory Capital Ratios	9/30/2025			12/31/2024			Well Capitalized Minimum
Tier 1 capital to average total assets	9.19	%		9.58	%		5.00	%
Common equity tier 1 capital to risk-weighted assets	11.33	%		11.74	%		6.50	%
Tier 1 capital to risk-weighted assets	11.33	%		11.74	%		8.00	%
Total capital to risk-weighted assets	12.58	%		12.99	%		10.00	%

At September 30, 2025, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $1.15 billion and $468.8 million, respectively. We also had approximately $465.9 million in fair value of unpledged securities AFS and HTM at September 30, 2025 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $437.3 million.

Share Repurchase Plan

On December 17, 2024, the Board of Directors of the Company authorized the 2025 share repurchase plan. Under the terms of the 2025 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2025. During the nine month period ended September 30, 2025, there were 266,008 shares of common stock repurchased, for an aggregate purchase price of $7.77 million.

Earnings Conference Call

Brad Kessel, President and CEO, Gavin Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Tuesday, October 28, 2025.

To participate in the live conference call, please dial 1-833-470-1428 (Access Code # 362565). Also, the conference call will be accessible through an audio webcast with user-controlled slides via the following site/URL: https://events.q4inc.com/attendee/579402272.

A playback of the call can be accessed by dialing 1-866-813-9403 (Access Code # 783472). The replay will be available through November 4, 2025.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $5.5 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan's Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, consumer banking, investments and insurance. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.

For more information, please visit our Web site at: IndependentBank.com.

Forward-Looking Statements
This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plans and prospects.

Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. For example, deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding to us, lead to a tightening of credit, and increase stock price volatility. Our results could also be adversely affected by changes in interest rates; increases in unemployment rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of our investment securities; legal and regulatory developments; changes in customer behavior and preferences; breaches in data security; and management’s ability to effectively manage the multitude of risks facing our business. Key risk factors that could affect our future results are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2024 and the other reports we file with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of our future results.

Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition
		September 30, 2025				December 31, 2024
		(Unaudited)
		(In thousands, except share amounts)
Assets
Cash and due from banks		$	56,378			$	56,984
Interest bearing deposits			152,308				62,898
Cash and Cash Equivalents			208,686				119,882
Securities available for sale			502,583				559,182
Securities held to maturity (fair value of $293,242 at September 30, 2025 and $301,860 at December 31, 2024)			321,450				339,436
Federal Home Loan Bank and Federal Reserve Bank stock, at cost			18,102				16,099
Loans held for sale, carried at fair value			11,654				7,643
Loans
Commercial			2,125,053				1,937,364
Mortgage			1,517,656				1,516,726
Installment			555,574				584,735
Total Loans			4,198,283				4,038,825
Allowance for credit losses			(62,459	)			(59,379	)
Net Loans			4,135,824				3,979,446
Other real estate and repossessed assets, net			589				938
Property and equipment, net			38,805				37,492
Bank-owned life insurance			53,875				53,855
Capitalized mortgage loan servicing rights, carried at fair value			31,522				46,796
Other intangibles, net			1,123				1,488
Goodwill			28,300				28,300
Accrued income and other assets			140,600				147,547
Total Assets		$	5,493,113			$	5,338,104
Liabilities and Shareholders' Equity
Deposits
Non-interest bearing		$	1,003,521			$	1,013,647
Savings and interest-bearing checking			2,040,462				1,995,314
Reciprocal			981,115				907,031
Time			660,815				628,285
Brokered time			173,242				109,811
Total Deposits			4,859,155				4,654,088
Other borrowings			2,006				45,009
Subordinated debt			—				39,586
Subordinated debentures			39,847				39,796
Accrued expenses and other liabilities			101,363				104,939
Total Liabilities			5,002,371				4,883,418
Shareholders’ Equity
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding			—				—
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 20,691,604 shares at September 30, 2025 and 20,895,714 shares at December 31, 2024			311,770				318,777
Retained earnings			239,602				205,853
Accumulated other comprehensive loss			(60,630	)			(69,944	)
Total Shareholders’ Equity			490,742				454,686
Total Liabilities and Shareholders’ Equity		$	5,493,113			$	5,338,104

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
		Three Months Ended											Nine Months Ended
		September 30,							September 30,				September 30,
		2025				June 30, 2025			2024				2025				2024
		(Unaudited)
		(In thousands, except per share amounts)
Interest Income
Interest and fees on loans		$	61,325			$	59,535		$	58,410			$	178,628			$	170,239
Interest on securities
Taxable			3,660				3,796			4,502				11,492				14,466
Tax-exempt			2,767				2,773			3,404				8,310				10,195
Other investments			1,538				774			2,018				3,882				4,898
Total Interest Income			69,290				66,878			68,334				202,312				199,798
Interest Expense
Deposits			21,972				20,462			24,462				63,389				70,148
Other borrowings and subordinated debt and debentures			1,957				1,801			2,018				5,262				6,253
Total Interest Expense			23,929				22,263			26,480				68,651				76,401
Net Interest Income			45,361				44,615			41,854				133,661				123,397
Provision for credit losses			1,991				1,500			1,488				4,212				2,251
Net Interest Income After Provision for Credit Losses			43,370				43,115			40,366				129,449				121,146
Non-interest Income
Interchange income			4,157				3,390			4,146				10,674				10,698
Service charges on deposit accounts			3,131				2,981			3,085				8,926				8,894
Net gains (losses) on assets
Mortgage loans			1,474				1,631			2,177				5,408				4,874
Equity securities at fair value			—				—			(8	)			—				2,685
Securities available for sale			(36	)			11			(145	)			(355	)			(414	)
Mortgage loan servicing, net			74				490			(3,130	)			(72	)			1,686
Other			3,137				2,822			3,383				9,105				8,818
Total Non-interest Income			11,937				11,325			9,508				33,686				37,241
Non-interest Expense
Compensation and employee benefits			21,125				21,123			20,048				62,631				62,069
Data processing			3,784				3,847			3,379				11,360				9,891
Occupancy, net			2,127				2,046			1,893				6,396				5,853
Interchange expense			1,180				1,177			1,149				3,476				3,373
Furniture, fixtures and equipment			892				793			932				2,570				2,834
Advertising			526				833			581				2,220				1,860
Loan and collection			618				744			657				2,148				1,868
FDIC deposit insurance			615				637			664				1,963				2,141
Legal and professional			682				500			687				1,661				1,717
Communications			465				470			519				1,526				1,633
Other			2,117				1,592			2,074				6,204				4,870
Total Non-interest Expense			34,131				33,762			32,583				102,155				98,109
Income Before Income Tax			21,176				20,678			17,291				60,980				60,278
Income tax expense			3,674				3,801			3,481				11,011				11,949
Net Income		$	17,502			$	16,877		$	13,810			$	49,969			$	48,329
Net Income Per Common Share
Basic		$	0.85			$	0.81		$	0.66			$	2.40			$	2.31
Diluted		$	0.84			$	0.81		$	0.65			$	2.38			$	2.29

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data
	September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
	(unaudited)
	(Dollars in thousands except per share data)
Three Months Ended
Net interest income	$	45,361			$	44,615			$	43,685			$	42,851			$	41,854
Provision for credit losses		1,991				1,500				721				2,217				1,488
Non-interest income		11,937				11,325				10,424				19,121				9,508
Non-interest expense		34,131				33,762				34,262				36,987				32,583
Income before income tax		21,176				20,678				19,126				22,768				17,291
Income tax expense		3,674				3,801				3,536				4,307				3,481
Net income	$	17,502			$	16,877			$	15,590			$	18,461			$	13,810
Basic earnings per share	$	0.85			$	0.81			$	0.74			$	0.88			$	0.66
Diluted earnings per share		0.84				0.81				0.74				0.87				0.65
Cash dividend per share		0.26				0.26				0.26				0.24				0.24
Average shares outstanding		20,702,235				20,749,925				20,943,094				20,893,820				20,896,019
Average diluted shares outstanding		20,904,857				20,945,522				21,150,550				21,122,096				21,115,273
Performance Ratios
Return on average assets		1.27	%			1.27	%			1.18	%			1.39	%			1.04	%
Return on average equity		14.57				14.66				13.71				16.31				12.54
Efficiency ratio (1)		58.86				59.67				62.20				59.09				62.82
As a Percent of Average Interest-Earning Assets (1)
Interest income		5.38	%			5.35	%			5.28	%			5.37	%			5.48	%
Interest expense		1.84				1.77				1.79				1.92				2.11
Net interest income		3.54				3.58				3.49				3.45				3.37
Average Balances
Loans	$	4,201,557			$	4,128,771			$	4,060,941			$	3,994,661			$	3,909,954
Securities		826,362				846,052				883,676				912,073				933,750
Total earning assets		5,159,681				5,036,090				5,078,596				5,007,566				4,985,842
Total assets		5,451,922				5,324,959				5,378,022				5,300,368				5,275,623
Deposits		4,786,408				4,646,639				4,715,331				4,655,091				4,616,119
Interest bearing liabilities		3,862,024				3,763,477				3,799,852				3,717,483				3,689,684
Shareholders' equity		476,422				461,720				461,291				450,214				438,077

(1)   Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data (continued)
	September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
	(unaudited)
	(Dollars in thousands except per share data)
End of Period
Capital
Tangible common equity ratio		8.44	%			8.16	%			8.26	%			8.00	%			8.08	%
Tangible common equity ratio excluding accumulated other comprehensive loss		9.35				9.24				9.31				9.10				8.99
Average equity to average assets		8.74				8.67				8.58				8.49				8.30
Total capital to risk-weighted assets (2)		13.67				14.20				14.51				14.22				14.25
Tier 1 capital to risk-weighted assets (2)		12.42				12.23				12.34				12.06				12.06
Common equity tier 1 capital to risk-weighted assets (2)		11.55				11.36				11.45				11.17				11.16
Tier 1 capital to average assets (2)		10.07				10.07				9.89				9.85				9.63
Common shareholders' equity per share of common stock	$	23.72			$	22.65			$	22.28			$	21.76			$	21.65
Tangible common equity per share of common stock		22.29				21.23				20.87				20.33				20.22
Total shares outstanding		20,691,604				20,715,650				20,970,115				20,895,714				20,893,800
Selected Balances
Loans	$	4,198,283			$	4,164,367			$	4,072,691			$	4,038,825			$	3,942,287
Securities		824,033				838,813				866,604				898,618				932,312
Total earning assets		5,204,380				5,105,579				5,031,975				5,024,083				4,964,784
Total assets		5,493,113				5,418,519				5,328,428				5,338,104				5,259,268
Deposits		4,859,155				4,659,359				4,633,931				4,654,088				4,626,875
Interest bearing liabilities		3,897,487				3,832,845				3,768,435				3,764,832				3,682,482
Shareholders' equity		490,742				469,250				467,277				454,686				452,369

(2)   September 30, 2025 are Preliminary.

Reconciliation of Non-GAAP Financial Measures
Independent Bank Corporation

Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends.  Tangible common equity is used by the Company to measure the quality of capital.

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
	(Dollars in thousands)
Net Interest Margin, Fully Taxable Equivalent ("FTE")
Net interest income	$	45,361			$	41,854			$	133,661			$	123,397
Add:  taxable equivalent adjustment		443				158				1,339				513
Net interest income - taxable equivalent	$	45,804			$	42,012			$	135,000			$	123,910
Net interest margin (GAAP) (1)		3.51	%			3.35	%			3.50	%			3.34	%
Net interest margin (FTE) (1)		3.54	%			3.37	%			3.54	%			3.35	%

(1)   Annualized.

Tangible Common Equity Ratio

	September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
	(Dollars in thousands)
Common shareholders' equity	$	490,742			$	469,250			$	467,277			$	454,686			$	452,369
Less:
Goodwill		28,300				28,300				28,300				28,300				28,300
Other intangibles, net		1,123				1,244				1,366				1,488				1,617
Tangible common equity		461,319				439,706				437,611				424,898				422,452
Addition:
Accumulated other comprehensive loss for regulatory purposes		54,833				64,089				61,285				64,146				52,454
Tangible common equity excluding accumulated other comprehensive loss adjustments	$	516,152			$	503,795			$	498,896			$	489,044			$	474,906
Total assets	$	5,493,113			$	5,418,519			$	5,328,428			$	5,338,104			$	5,259,268
Less:
Goodwill		28,300				28,300				28,300				28,300				28,300
Other intangibles, net		1,123				1,244				1,366				1,488				1,617
Tangible assets		5,463,690				5,388,975				5,298,762				5,308,316				5,229,351
Addition:
Net unrealized losses on available for sale securities and derivatives, net of tax		54,833				64,089				61,285				64,146				52,454
Tangible assets excluding accumulated other comprehensive loss adjustments	$	5,518,523			$	5,453,064			$	5,360,047			$	5,372,462			$	5,281,805
Common equity ratio		8.93	%			8.66	%			8.77	%			8.52	%			8.60	%
Tangible common equity ratio		8.44	%			8.16	%			8.26	%			8.00	%			8.08	%
Tangible common equity ratio excluding accumulated other comprehensive loss		9.35	%			9.24	%			9.31	%			9.10	%			8.99	%
Tangible Common Equity per Share of Common Stock:
Common shareholders' equity	$	490,742			$	469,250			$	467,277			$	454,686			$	452,369
Tangible common equity	$	461,319			$	439,706			$	437,611			$	424,898			$	422,452
Shares of common stock outstanding (in thousands)		20,692				20,716				20,970				20,896				20,894
Common shareholders' equity per share of common stock	$	23.72			$	22.65			$	22.28			$	21.76			$	21.65
Tangible common equity per share of common stock	$	22.29			$	21.23			$	20.87			$	20.33			$	20.22

The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets.  Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.

Contact:

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

FAQ

What were Independent Bank (IBCP) Q3 2025 earnings and EPS?

Independent Bank reported Q3 2025 net income of $17.5M, or $0.84 diluted EPS.

How did IBCP’s net interest margin perform in Q3 2025?

Tax-equivalent NIM was 3.54% in Q3 2025, versus 3.37% year-ago and 3.58% in Q2 2025.

What loan and deposit growth did IBCP report for Q3 2025?

Loans grew to $4.20B (3.2% annualized linked-quarter); deposits increased by $148.2M (13.0% annualized).

What caused the rise in non-performing assets at IBCP in Q3 2025?

The increase to 0.38% of assets was primarily due to one commercial borrower experiencing financial difficulties.

What is IBCP’s allowance for credit losses at September 30, 2025?

Allowance for credit losses totaled $62.5M, or 1.49% of total portfolio loans at 9/30/2025.

Did Independent Bank take any capital or liquidity actions in 2025?

Yes—IBCP redeemed $40M floating subordinated notes on Aug 31, 2025, and repurchased 266,008 shares YTD under its 2025 plan.