Independent Bank Corporation Reports 2026 Third Quarter Earnings of $0.80 Per Diluted Share

The first full quarter with Highpoint brought higher net interest income alongside increased expenses and credit-loss provisions.

Rhea-AI Summary

Independent Bank Corporation (NASDAQ: IBCP) reported third-quarter 2026 net income of $17.9 million, above the prior-year quarter. Diluted earnings fell to $0.80 from $0.84, while net income rose from $17.5 million. Net interest income increased 21.8% year over year to $55.3 million, and net interest margin reached 3.79%, versus 3.51%.

The company completed its HCB Financial acquisition on July 1, 2026. Third-quarter loan and deposit growth excluding acquired balances totaled $116.6 million and $115.8 million, respectively. Non-interest expenses rose to $44.8 million from $34.1 million a year earlier, including $3.5 million in merger-related expenses. Credit-loss provision expense increased to $4.81 million from $1.99 million. Non-performing loans reached $39.2 million, versus $20.4 million a year earlier. Tangible common equity per share, a non-GAAP measure excluding intangible assets, fell to $23.10 from $24.24 at June 30.

17 points · 0 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointNet interest income reached $55.3 million, up 21.8% year over year and 15.4% sequentially.
• Moderate pointNet interest margin reached 3.79%, up 28 basis points year over year and 12 sequentially.
• Moderate pointHCB Financial acquisition closed July 1, 2026, adding $366.7 million in loans and $543.5 million in deposits.
• Moderate pointLoans excluding acquired balances grew $116.6 million, or 10.5% annualized, from June 30, 2026.
• Moderate pointDeposits excluding acquired balances grew $115.8 million, or 9.4% annualized, from June 30, 2026.
• Moderate pointNon-interest income reached $15.8 million, versus $15.3 million sequentially and $11.9 million a year earlier.
• Moderate pointPre-tax, pre-provision net revenue, a non-GAAP measure, reached $26.3 million, versus $25.4 million sequentially and $23.2 million a year earlier.
• Moderate pointOther borrowings declined to $4.009 million from $127.005 million at June 30, 2026.

9 minor points

• Minor pointNet income rose to $17.9 million in third-quarter 2026 from $17.5 million a year earlier.
• Minor pointCommercial loan growth excluding Highpoint reached 20.9% annualized from the prior quarter.
• Minor pointMortgage servicing income reached $4.1 million, versus $2.5 million sequentially and $0.1 million a year earlier.
• Minor pointNet loan charge-offs fell to $0.21 million, versus $0.37 million sequentially and $0.73 million a year earlier.
• Minor pointCash and cash equivalents increased to $181.8 million from $165.5 million at June 30, 2026.
• Minor pointUnused credit lines totaled approximately $858.9 million with FHLB and $1.13 billion with FRB at September 30.
• Minor pointUnpledged securities offered estimated additional borrowing capacity of approximately $437.9 million at September 30, 2026.
• Minor pointIndependent Bank and Highpoint exceeded regulatory well-capitalized thresholds at September 30, 2026, based on preliminary ratios.
• Minor point. Forward-looking: it has not happened yet and may not happen.Highpoint system integration is expected to be completed November 9, 2026.

Negative

• Moderate pointNon-interest expenses rose to $44.8 million from $34.1 million a year earlier, including $3.5 million merger-related expenses.
• Moderate pointCredit-loss provision expense increased to $4.81 million from $2.72 million sequentially and $1.99 million a year earlier.
• Moderate pointNon-performing loans reached $39.2 million, or 0.80% of loans, versus $20.4 million, or 0.48%, a year earlier.
• Moderate pointShares issued for the HCB Financial acquisition expanded the company's share base.
• Minor pointDiluted earnings per share fell to $0.80 in third-quarter 2026 from $0.84 a year earlier.

6 minor points

• Minor pointFour commercial relationships entering non-accrual status primarily drove commercial non-performing loans to $37.6 million from $13.8 million year-over-year.
• Minor pointLoan-loss allowance coverage fell to 188.26% of non-performing loans from 306.85% a year earlier.
• Minor pointMortgage loan gains declined to $1.0 million from $1.7 million sequentially and $1.5 million a year earlier.
• Minor pointPre-tax income of $21.5 million fell from $22.7 million sequentially but exceeded $21.2 million a year earlier.
• Minor pointTangible common equity per share, non-GAAP, fell to $23.10 from $24.24 at June 30, reflecting acquisition-related intangibles.
• Minor pointEquity-to-assets ratio declined to 9.22% from 9.33% at June 30, 2026.

News Explained

Shares issued for HCB reduce existing holders’ percentage ownership absent offsets; full system integration is still ahead.

The company says shares issued in connection with the completed HCB acquisition contributed to higher shareholders’ equity. Those additional shares increase the total share count and reduce existing holders’ percentage ownership absent offsetting changes.

Full system integration remains pending: the company expects to complete Highpoint’s conversion on November 9, 2026. Until conversion, Highpoint customers should continue using their existing banking services.

Key Figures

Net income: $17.9 million Diluted EPS: $0.80 per share Net interest margin: 3.79% +5 more

Net income

$17.9 million

Third quarter 2026; compared with $17.5 million in the prior-year period

Diluted EPS

$0.80 per share

Third quarter 2026; compared with $0.84 in the prior-year period

Net interest margin

3.79%

Third quarter 2026; compared with 3.51% in the year-ago period

Net interest income

$55.3 million

Third quarter 2026; increased 21.8% from the year-ago period

Total loan growth

$483.3 million; 10.95%

During the third quarter; growth rate was not annualized

Total deposit growth

$659.3 million; 13.56%

During the third quarter; growth rate was not annualized

Provision for credit losses

$4.81 million

Third quarter 2026; compared with $1.99 million in the third quarter of 2025

Non-performing loans

0.80% of total portfolio loans

At September 30, 2026; compared with 0.48% at September 30, 2025

Historical Context

1 past event · Latest: Jul 23

1 event

1. Jul 23

   Earnings report

   24h Move

   +1.8%

   Reported $0.90 diluted EPS and a 3.71% net interest margin for second-quarter 2026.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest margin, purchase accounting accretion, non-performing loans, non-gaap financial measures, +1 more

5 terms

net interest margin financial

"Net interest margin increased to 3.79% for the third quarter of 2026"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

purchase accounting accretion financial

"Excluding Highpoint Community Bank acquisition-related purchase accounting accretion"

Purchase accounting accretion describes how an acquisition’s required accounting adjustments change a company’s reported earnings per share after the deal. When the purchase price is reallocated to the acquired assets and liabilities, certain items (like tax effects, depreciation or amortization) are recorded differently, and those changes can make reported earnings per share rise over time — showing whether the transaction boosts or dilutes per-share results. Investors use it like checking whether two merged household budgets will increase the amount left over each month after relabeling expenses.

non-performing loans financial

"Non-performing loans totaled $39.2 million, or 0.80% of total portfolio loans"

Loans on a bank’s books where the borrower has stopped making scheduled payments for a prolonged period (commonly about 90 days), so the lender no longer expects full repayment on time. Think of them as overdue IOUs that may never be paid back; a rising level of such loans weakens a lender’s earnings and balance sheet, signals greater credit risk in the economy, and can hurt investors through lower dividends, loan losses, or declines in the lender’s stock value.

non-gaap financial measures financial

"Non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

tangible common equity financial

"Tangible common equity (non-GAAP) totaled $510.0 million"

Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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GRAND RAPIDS, Mich., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2026 net income of $17.9 million, or $0.80 per diluted share, versus net income of $17.5 million, or $0.84 per diluted share, in the prior-year period.

Highlights for the third quarter of 2026 include:

• Net growth in loans of $116.6 million or 10.5% annualized from June 30, 2026, exclusive of $366.7 million of Highpoint Community Bank loans, acquired on July 1, 2026. Total loan growth of $483.3 million, or 10.95% (not annualized), during the third quarter;
• Net growth in total deposits of $115.8 million or 9.4% annualized from June 30, 2026, excluding $543.5 million Highpoint Community Bank deposits, acquired on July 1, 2026. Total deposit growth of $659.3 million, or 13.56% (not annualized), during the third quarter;
• Net interest margin increased to 3.79% for the third quarter of 2026, a 12 basis point increase from the prior quarter, and a 28 basis point increase from the third quarter of 2025. On a fully tax-equivalent basis⁽¹⁾, net interest margin was 3.82%, an 11 basis point increase from the prior quarter. Excluding Highpoint Community Bank acquisition-related purchase accounting accretion⁽¹⁾, net interest margin was 3.76%, a 5 basis point increase from the prior quarter;
• Net interest income increased $7.4 million from the prior quarter ended June 30, 2026;
• A return on average assets and a return on average equity of 1.14% and 12.17%, respectively, for the quarter ended September 30, 2026;
• Income before income tax of $21.5 million for the quarter ended September 30, 2026, compared to $22.7 million in the prior quarter and $21.2 million for the quarter ended September 30, 2025. Pre-tax, pre-provision net revenue⁽¹⁾ increased to $26.3 million for the quarter ended September 30, 2026, from $25.4 million during the prior quarter and $23.2 million for the quarter ended September 30, 2025;
• The payment of a $0.28 per share quarterly dividend on common stock on August 14, 2026; and
• Completed the acquisition of HCB Financial Corp. on July 1, 2026.

(1) Non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below.

William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “Our third quarter results reflect strong organic growth, continued margin expansion, and the first full quarter of contributions from Highpoint Community Bank (“Highpoint”). Net income was $17.9 million, or $0.80 per diluted share. Excluding after tax merger-related expenses of $2.8 million, adjusted net income⁽¹⁾ was $20.6 million or $0.92 per diluted share. Net interest income increased 15.4% from the second quarter to $55.3 million, and net interest margin expanded 12 basis points to 3.79% (11 basis points to 3.82% on a tax-equivalent basis⁽¹⁾).”

“We delivered outstanding annualized linked-quarter commercial loan growth of 20.9% and total deposit growth of 9.4%, each excluding Highpoint, underscoring the strength of our relationship banking strategy and momentum in our core franchise. Credit loss provisioning increased due to new loans added to the portfolio, including acquired Highpoint loans unfunded lending commitments and an increase in the specific reserve for one commercial relationship, while net loan charge-offs remained low at $0.2 million.”

“As we prepare for Highpoint’s system conversion in November, our teams remain focused on a seamless customer transition and on realizing the long-term benefits of the combined banks. We thank our colleagues for their continued commitment to our customers and their efforts to bring our two organizations together.”

(1) Non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below.

Significant items impacting comparable third quarter 2026 and 2025 results include the following (per share after-tax amounts are calculated using an assumed 21% tax rate):

• The provision for credit losses was an expense of $4.8 million ($0.17 per diluted share, after taxes) for the three-month period ended September 30, 2026, as compared to an expense of $2.0 million ($0.08 per diluted share, after taxes) for the three-month period ended September 30, 2025.

• Merger-related expenses were $3.5 million ($0.12 per diluted share, after taxes) for the three-month period ended September 30, 2026, as compared to zero for the three-month period ended September 30, 2025.

• Increases (decreases) in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of $3.4 million ($0.12 per diluted share, after taxes) for the three-month period ended September 30, 2026, as compared to $(0.6) million ($(0.02) per diluted share, after taxes) for the three-month period ended September 30, 2025.

Operating Results
The Company’s net interest income totaled $55.3 million during the third quarter of 2026, an increase of $9.9 million, or 21.8% from the year-ago period, and an increase of $7.4 million, or 15.4%, from the second quarter of 2026. The Company’s net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.79% during the third quarter of 2026, compared to 3.51% in the year-ago period and 3.67% in the second quarter of 2026. The Company’s tax equivalent net interest margin (Non-GAAP) was 3.82% during the third quarter of 2026, compared to 3.54% in the year-ago period, and 3.71% in the second quarter of 2026. The linked quarter increase in the net interest margin was supported by a 13 basis point increase on earning asset yield.

The year-over-year quarter and linked quarter increases in net interest income were due to an increase in average interest-earning assets, higher net interest margin, and a six basis point benefit from the accretion of purchase accounting adjustments. Average interest-earning assets were $5.82 billion in the third quarter of 2026, compared to $5.16 billion in the year-ago quarter and $5.22 billion in the second quarter of 2026.

Non-interest income totaled $15.8 million for the third quarter of 2026, compared to $15.3 million in the second quarter of 2026 and $11.9 million in the comparable prior year period. This change was primarily due to variances in mortgage loan servicing related revenues.

Net gains on mortgage loans were $1.0 million in the third quarter of 2026, $1.7 million in the second quarter of 2026 and $1.5 million in the third quarter of 2025. The decreases in net gains on mortgage loans in the current quarter were due to unfavorable fair value adjustments on loans originated for sale.

Mortgage loan servicing, net, generated income of $4.1 million, $2.5 million and $0.1 million in the quarters ended September 30, 2026, June 30, 2026, and September 30, 2025, 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. Capitalized mortgage loan servicing rights totaled $37.8 million and $31.5 million at September 30, 2026 and September 30, 2025, respectively.

Non-interest expenses totaled $44.8 million in the third quarter of 2026, compared to $37.8 million in the prior quarter and $34.1 million in the year-ago period. The increase in non-interest expense is primarily due to increases related to the merger with Highpoint Community Bank in compensation and employee benefits, merger-related expenses, data processing and amortization of other intangibles.

The Company recorded income tax expense of $3.6 million in the third quarter of 2026. This compares to an income tax expense of $3.9 million in the second quarter of 2026 and $3.7 million in the third quarter of 2025.

Asset Quality

The provision for credit losses was an expense of $4.81 million, $2.72 million and $1.99 million in the third quarter of 2026, second quarter of 2026 and third quarter of 2025, respectively. The increase in the current period provision is primarily attributable to an increase in specific reserves associated with one commercial lending relationship, as well as loan growth and an increase in unfunded commitments. The Company recorded loan net charge offs of $0.21 million, $0.37 million and $0.73 million in the quarters ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. At September 30, 2026, the allowance for credit losses for loans totaled $73.7 million, or 1.51% of total portfolio loans compared to $62.5 million, or 1.49% of total portfolio loans at September 30, 2025.

Non-performing loans totaled $39.2 million, or 0.80% of total portfolio loans, at September 30, 2026, compared to $32.8 million, or 0.74%, at June 30, 2026 and $20.4 million, or 0.48%, at September 30, 2025. The increase was primarily in commercial loans, where non-performing loans rose to $37.6 million from $13.8 million in the year ago period, primarily driven by four commercial loan relationships being placed on non-accrual status. Government-guaranteed loans of $11.1 million are excluded from these totals. The allowance for credit losses represented 188.26% of non-performing loans at September 30, 2026, compared to 306.85% at September 30, 2025.

Balance Sheet, Capital and Liquidity

Total assets were $6.26 billion at September 30, 2026, an increase of $599.8 million from June 30, 2026. Loans, excluding loans held for sale, were $4.90 billion at September 30, 2026, compared to $4.41 billion at June 30, 2026.  Deposits totaled $5.52 billion at September 30, 2026, an increase of $659.3 million from June 30, 2026. In addition to the deposits acquired from the acquisition of Highpoint Community Bank, this increase is related to an inflow of deposits from business and municipal customers.

Cash and cash equivalents totaled $181.8 million at September 30, 2026, versus $165.5 million at June 30, 2026. Securities available for sale (“AFS”) totaled $519.6 million at September 30, 2026, versus $494.0 million at June 30, 2026.

Total shareholders’ equity was $577.3 million at September 30, 2026, or 9.22% of total assets compared to $528.4 million or 9.33% at June 30, 2026. The increase in shareholders’ equity is primarily the result of shares issued in connection with the acquisition of HCB Financial Corp. and earnings retention that was partially offset by dividend payments and an increase in the accumulated other comprehensive loss. Tangible common equity (non-GAAP) totaled $510.0 million at September 30, 2026, or $23.10 per share compared to $499.3 million or $24.24 per share at June 30, 2026. The decrease in tangible common equity per share primarily reflects $39.1 million of goodwill and other intangible assets recorded in the HCB Financial Corp. acquisition.

The Company’s wholly owned subsidiaries, Independent Bank and Highpoint Community Bank, exceeded the “well capitalized” thresholds for regulatory purposes at September 30, 2026, based on preliminary ratios.

At September 30, 2026, 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 $858.9 million and $1.13 billion, respectively. We also had approximately $463.8 million in fair value of unpledged securities AFS and HTM at September 30, 2026 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $437.9 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. During the nine-month period ended September 30, 2026, the Company repurchased 119,425 shares of common stock, for an aggregate purchase price of $4.2 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 27, 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/BI8251941b98524fec94bd98aeea90727e.

In order to view the webcast and presentation slides, please go to https://edge.media-server.com/mmc/p/oko972r9 during the time of the call. A replay of the webcast will be available until October 27, 2027.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Grand Rapids, Michigan-based bank holding company and the parent company of Independent Bank and, as of July 1, 2026, Highpoint Community Bank. Independent Bank Corporation has total assets of approximately $6.3 billion and operates from 66 locations across Michigan’s Lower Peninsula. Founded in 1864 as First National Bank of Ionia, Independent Bank provides a full range of financial services, including commercial banking, consumer banking, mortgage lending, and investment services. Independent Bank expects to complete the full system integration of Highpoint Community Bank’s operations on November 9, 2026. Until conversion, customers of Highpoint Community Bank should continue using their existing Highpoint Community Bank branches, checks, bank cards, online and mobile banking, and other banking services as usual.

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

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and are often identified by words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “target,” “may,” “will,” “should,” “could,” “would,” “outlook,” and similar expressions. These statements include, without limitation, statements regarding our anticipated future financial performance and components of that performance, acquisition integration activities, expected benefits of the completed acquisition, and future plans, prospects and performance.

Forward-looking statements involve inherent risks and uncertainties, and actual results may differ materially from those expressed or implied by such statements. Factors that could cause actual results to differ materially include deterioration in general business and economic conditions or turbulence in domestic or global financial markets; changes in interest rates; changes in unemployment rates; deterioration in the credit quality of our loan portfolio or in the value of collateral securing loans; deterioration in the value of our investment securities; changes in funding availability or costs; legal and regulatory developments; the timing, cost and outcome of pending or threatened litigation and regulatory matters; changes in customer behavior and preferences; cybersecurity incidents or other data-security breaches; risks relating to the integration of Highpoint Community Bank, including customer and employee retention, systems conversion, unexpected costs, disruption to business relationships, and the risk that anticipated benefits may not be realized when expected or at all; and management’s ability to effectively manage the risks facing our business. Additional risk factors are described in our Annual Report on Form 10-K for the year ended December 31, 2025 and other reports filed with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of future results. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we undertake no obligation to update or revise any forward-looking statement.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Financial Condition
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
	(Unaudited)
	(In thousands, except share amounts)
Assets
Cash and due from banks	$	68,275			$	64,089			$	48,475			$	52,235			$	56,378
Interest bearing deposits		113,540				101,361				126,440				86,152				152,308
Cash and Cash Equivalents		181,815				165,450				174,915				138,387				208,686
Interest bearing deposits - time		746				—				—				—				—
Equity securities at fair value		—				1,088				—				—				—
Securities available for sale at fair value		519,616				493,952				482,295				495,909				502,583
Securities held to maturity at cost		292,884				287,574				301,007				309,523				321,450
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		20,452				18,940				18,102				18,102				18,102
Loans held for sale, carried at fair value		12,836				16,824				19,714				9,031				11,654
Loans
Commercial		2,763,222				2,359,988				2,267,369				2,213,557				2,125,053
Mortgage		1,612,243				1,533,268				1,520,358				1,524,821				1,517,656
Installment		521,684				520,608				520,372				537,907				555,574
Total Loans		4,897,149				4,413,864				4,308,099				4,276,285				4,198,283
Allowance for credit losses		(73,724	)			(65,673	)			(63,719	)			(63,445	)			(62,459	)
Net Loans		4,823,425				4,348,191				4,244,380				4,212,840				4,135,824
Other real estate and repossessed assets, net		759				710				767				896				589
Property and equipment, net		57,235				44,549				42,319				38,972				38,805
Bank-owned life insurance		63,424				53,567				54,072				53,750				53,875
Capitalized mortgage loan servicing rights, carried at fair value		37,839				33,949				32,233				31,493				31,522
Other intangibles, net		17,045				771				886				1,001				1,123
Goodwill		50,219				28,300				28,300				28,300				28,300
Accrued income and other assets		185,337				169,976				158,519				167,516				140,600
Total Assets	$	6,263,632			$	5,663,841			$	5,557,509			$	5,505,720			$	5,493,113
Liabilities and Shareholders' Equity
Deposits
Non-interest bearing	$	1,126,676			$	1,030,460			$	991,140			$	991,984			$	1,003,521
Savings and interest-bearing checking		2,591,601				2,143,895				2,146,403				2,113,260				2,040,462
Reciprocal		1,052,489				1,025,016				1,028,874				974,921				981,115
Time		750,112				662,248				657,043				662,858				660,815
Brokered time		514				514				57,220				18,659				173,242
Total Deposits		5,521,392				4,862,133				4,880,680				4,761,682				4,859,155
Other borrowings		4,009				127,005				27,010				77,003				2,006
Subordinated debentures, net		39,915				39,898				39,881				39,864				39,847
Accrued expenses and other liabilities		121,020				106,392				99,385				124,220				101,363
Total Liabilities		5,686,336				5,135,428				5,046,956				5,002,769				5,002,371
Shareholders’ Equity
Preferred stock		—				—				—				—				—
Common stock		361,741				307,820				307,679				307,845				311,770
Retained earnings		288,569				276,934				263,898				252,794				239,602
Accumulated other comprehensive loss		(73,014	)			(56,341	)			(61,024	)			(57,688	)			(60,630	)
Total Shareholders’ Equity		577,296				528,413				510,553				502,951				490,742
Total Liabilities and Shareholders’ Equity	$	6,263,632			$	5,663,841			$	5,557,509			$	5,505,720			$	5,493,113

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations
	Three Months Ended
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
	(Unaudited)
Interest Income	(In thousands, except per share amounts)
Interest and fees on loans	$	68,998			$	60,643			$	59,249			$	60,205			$	61,325
Interest on securities
Taxable		3,902				3,300				3,354				3,513				3,660
Tax-exempt		2,755				2,525				2,522				2,633				2,767
Other investments		1,660				826				1,044				1,074				1,538
Total Interest Income		77,315				67,294				66,169				67,425				69,290
Interest Expense
Deposits		21,289				18,322				18,397				20,109				21,972
Other borrowings and subordinated debt and debentures		769				1,070				917				962				1,957
Total Interest Expense		22,058				19,392				19,314				21,071				23,929
Net Interest Income		55,257				47,902				46,855				46,354				45,361
Provision for credit losses		4,807				2,717				362				1,923				1,991
Net Interest Income After Provision for Credit Losses		50,450				45,185				46,493				44,431				43,370
Non-interest Income
Interchange income		4,638				3,576				3,234				3,186				4,157
Service charges on deposit accounts		3,353				3,100				2,935				3,096				3,131
Net gains (losses) on assets
Mortgage loans		1,011				1,651				1,308				1,372				1,474
Equity securities at fair value		65				1,600				—				—				—
Securities available for sale		(17	)			(90	)			(26	)			(15	)			(36	)
Mortgage loan servicing, net		4,074				2,460				1,646				899				74
Other		2,684				3,037				2,951				3,420				3,137
Total Non-interest Income		15,808				15,334				12,048				11,958				11,937
Non-interest Expense
Compensation and employee benefits		24,487				22,560				21,829				22,563				21,125
Data processing		4,761				4,152				3,952				3,428				3,784
Occupancy, net		2,419				2,073				2,413				2,171				2,127
Merger related expense		3,457				369				300				—				—
Interchange expense		1,446				1,224				1,191				1,165				1,180
Advertising		738				1,180				1,210				991				526
Furniture, fixtures and equipment		1,124				927				894				897				892
Loan and collection		1,023				1,038				752				589				618
FDIC deposit insurance		819				738				799				861				615
Legal and professional		774				613				591				787				682
Litigation expense		—				350				1,500				—				—
Communications		537				464				593				471				465
Amortization of other intangibles		917				115				115				122				121
Other		2,257				2,006				2,172				2,033				1,996
Total Non-interest Expense		44,759				37,809				38,311				36,078				34,131
Income Before Income Tax		21,499				22,710				20,230				20,311				21,176
Income tax expense		3,649				3,905				3,355				1,739				3,674
Net Income	$	17,850			$	18,805			$	16,875			$	18,572			$	17,502
Net Income Per Common Share
Basic	$	0.81			$	0.91			$	0.82			$	0.90			$	0.85
Diluted	$	0.80			$	0.90			$	0.81			$	0.89			$	0.84

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (continued)
	Nine Months Ended
	September 30, 2026				September 30, 2025
	(Unaudited)
Interest Income	(In thousands, except per share amounts)
Interest and fees on loans	$	188,890			$	178,628
Interest on securities
Taxable		10,556				11,492
Tax-exempt		7,802				8,310
Other investments		3,530				3,882
Total Interest Income		210,778				202,312
Interest Expense
Deposits		58,008				63,389
Other borrowings and subordinated debt and debentures		2,756				5,262
Total Interest Expense		60,764				68,651
Net Interest Income		150,014				133,661
Provision for credit losses		7,886				4,212
Net Interest Income After Provision for Credit Losses		142,128				129,449
Non-interest Income
Interchange income		11,448				10,674
Service charges on deposit accounts		9,388				8,926
Net gains (losses) on assets
Mortgage loans		3,970				5,408
Equity securities at fair value		1,665				—
Securities available for sale		(133	)			(355	)
Mortgage loan servicing, net		8,180				(72	)
Other		8,672				9,105
Total Non-interest Income		43,190				33,686
Non-interest Expense
Compensation and employee benefits		68,876				62,631
Data processing		12,865				11,360
Occupancy, net		6,905				6,396
Merger related expense		4,126				—
Interchange expense		3,861				3,476
Advertising		3,128				2,220
Furniture, fixtures and equipment		2,945				2,570
Loan and collection		2,813				2,148
FDIC deposit insurance		2,356				1,963
Legal and professional		1,978				1,661
Litigation expense		1,850				—
Communications		1,594				1,526
Amortization of other intangibles		1,147				365
Other		6,435				5,839
Total Non-interest Expense		120,879				102,155
Income Before Income Tax		64,439				60,980
Income tax expense		10,909				11,011
Net Income	$	53,530			$	49,969
Net Income Per Common Share
Basic	$	2.54			$	2.40
Diluted	$	2.51			$	2.38

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
	(unaudited)
	(Dollars in thousands except per share data)
Three Months Ended
Basic net income per common share	$	0.81			$	0.91			$	0.82			$	0.90			$	0.85
Diluted net income per common share		0.80				0.90				0.81				0.89				0.84
Cash dividend per share		0.28				0.28				0.28				0.26				0.26
Average shares outstanding		22,136,532				20,603,937				20,574,506				20,639,758				20,702,235
Average diluted shares outstanding		22,347,223				20,807,061				20,780,188				20,848,634				20,904,857
Performance Ratios
Return on average assets		1.14	%			1.37	%			1.24	%			1.35	%			1.27	%
Return on average equity		12.17				14.52				13.43				14.75				14.57
Return on average tangible equity (2)		14.48				15.38				14.25				15.67				15.54
Efficiency ratio (1)		61.25				60.64				64.33				61.18				58.86
As a Percent of Average Interest-Earning Assets (1) (2)
Interest income		5.33	%			5.20	%			5.15	%			5.24	%			5.38	%
Interest expense		1.51				1.49				1.50				1.62				1.84
Net interest margin		3.82				3.71				3.65				3.62				3.54
Average Balances
Loans	$	4,839,412			$	4,368,577			$	4,315,371			$	4,249,389			$	4,201,557
Securities		812,965				777,422				796,251				815,269				826,362
Total earning assets		5,818,800				5,219,641				5,209,360				5,162,381				5,159,681
Total assets		6,209,611				5,521,748				5,522,244				5,449,518				5,451,922
Deposits		5,465,721				4,812,586				4,832,089				4,774,179				4,786,408
Interest bearing liabilities		4,382,511				3,896,448				3,892,702				3,846,367				3,862,024
Shareholders' equity		581,997				519,439				509,523				499,445				476,422
End of Period
Capital
Tangible common equity ratio (2)		8.23	%			8.86	%			8.71	%			8.65	%			8.44	%
Tangible common equity ratio excluding accumulated other comprehensive loss (2)		9.22				9.67				9.61				9.51				9.35
Average equity to average assets		9.37				9.41				9.23				9.16				8.74
Total capital to risk-weighted assets (3)		13.17				13.77				13.79				13.59				13.66
Tier 1 capital to risk-weighted assets (3)		11.92				12.52				12.54				12.33				12.41
Common equity tier 1 capital to risk-weighted assets (3)		11.17				11.70				11.70				11.49				11.54
Tier 1 capital to average assets (3)		9.98				10.58				10.34				10.27				10.07
Common shareholders' equity per share of common stock	$	26.14			$	25.65			$	24.80			$	24.48			$	23.72
Tangible common equity per share of common stock (2)		23.10				24.24				23.38				23.05				22.29
Total shares outstanding		22,081,450				20,602,535				20,585,805				20,548,893				20,691,604

(1)	Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
(2)	Refer to Reconciliation of Non-GAAP Financial Measures.
(3)	September 30, 2026 ratios are preliminary.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data (continued)
Mortgage Loan Servicing, Net Activity
	Three months ended																				Nine months ended
	9/30/2026				6/30/2026				3/31/2026				12/31/2025				9/30/2025				9/30/2026				9/30/2025
Mortgage loan servicing, net:	(In thousands)
Revenue, net	$	1,646			$	1,625			$	1,636			$	1,656			$	1,614			$	4,907			$	5,145
Fair value change due to price		3,445				1,838				933				160				(576	)			6,216				(2,328	)
Fair value change due to pay-downs		(1,017	)			(1,003	)			(923	)			(917	)			(903	)			(2,943	)			(2,656	)
Loss on sale of originated servicing rights		—				—				—				—				(61	)			—				(233	)
Total	$	4,074			$	2,460			$	1,646			$	899			$	74			$	8,180			$	(72	)

Non-performing Loans by Loan Type (1):
	9/30/2026				6/30/2026				3/31/2026				12/31/2025				9/30/2025
Loan Type	(Dollars in thousands)
Commercial	$	37,619			$	32,274			$	27,077			$	23,531			$	13,825
Mortgage		12,084				10,432				9,953				8,683				7,873
Installment		574				981				745				860				900
Subtotal		50,277				43,687				37,775				33,074				22,598
Less - government guaranteed loans		11,116				10,890				10,202				9,947				2,243
Total non-performing loans	$	39,161			$	32,797			$	27,573			$	23,127			$	20,355
Ratio of non-performing loans to total portfolio loans		0.80	%			0.74	%			0.64	%			0.54	%			0.48	%
Ratio of non-performing assets to total assets		0.64	%			0.59	%			0.51	%			0.44	%			0.38	%
Ratio of allowance for credit losses to total non-performing loans		188.26	%			200.24	%			231.09	%			274.33	%			306.85	%
Ratio of allowance for credit losses to total portfolio loans		1.51	%			1.49	%			1.48	%			1.48	%			1.49	%

(1)	Non-performing loans include non-accrual loans and loans 90 days or more past due and still accruing interest. Non-performing assets include total non-performing loans and other real estate and repossessed assets, net.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data (continued)
Independent Bank Regulatory Capital Ratios:
	9/30/2026			6/30/2026			3/31/2026			12/31/2025			9/30/2025			Well Capitalized Minimum
Tier 1 capital to average total assets	9.46	%		9.67	%		9.43	%		9.36	%		9.19	%		5.00	%
Common equity tier 1 capital to risk-weighted assets	11.17	%		11.45	%		11.43	%		11.24	%		11.33	%		6.50	%
Tier 1 capital to risk-weighted assets	11.17	%		11.45	%		11.43	%		11.24	%		11.33	%		8.00	%
Total capital to risk-weighted assets	12.43	%		12.70	%		12.68	%		12.49	%		12.58	%		10.00	%

Highpoint Community Bank Regulatory Capital Ratios:
	9/30/2026 (2)			6/30/2026 (1)			3/31/2026 (1)			12/31/2025 (1)			9/30/2025 (1)			Well Capitalized Minimum
Tier 1 capital to average total assets	7.23	%		8.45	%		8.25	%		8.19	%		7.64	%		5.00	%
Common equity tier 1 capital to risk-weighted assets	12.14	%		14.68	%		14.59	%		15.19	%		14.94	%		6.50	%
Tier 1 capital to risk-weighted assets	12.14	%		14.68	%		14.59	%		15.19	%		14.94	%		8.00	%
Total capital to risk-weighted assets	13.39	%		15.93	%		15.83	%		16.42	%		16.14	%		10.00	%

(1)	Ratios for periods prior to July 1, 2026 represent Highpoint Community Bank’s historical standalone regulatory capital ratios as reported prior to the acquisition and are included for informational purposes.
(2)	September 30, 2026 ratios 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. Tax-equivalent net interest income and net interest margin adjust for the tax-favored status of certain loans and securities, which improves comparability between taxable and tax-exempt assets. Net interest margin excluding acquisition-related accretion, and adjusted net income and adjusted diluted earnings per share excluding merger-related expenses, help investors compare core operating performance across periods without the effects of the HCB Financial Corp. acquisition. Pre-tax, pre-provision net revenue shows earnings capacity before tax and credit costs. These non-GAAP measures supplement, and are not a substitute for, measures calculated in accordance with GAAP, and may not be comparable to similarly titled measures used by other companies.

Net Interest Income and Net Interest Margin (1):
	Three months ended
	9/30/2026							6/30/2026						3/31/2026						12/31/2025						9/30/2025
	Net Interest Income				Net Interest Margin			Net Interest Income			Net Interest Margin			Net Interest Income			Net Interest Margin			Net Interest Income			Net Interest Margin			Net Interest Income			Net Interest Margin
	(Dollars in thousands)
As reported (GAAP)	$	55,257			3.79	%		$	47,902		3.67	%		$	46,855		3.61	%		$	46,354		3.58	%		$	45,361		3.51	%
Add:  taxable equivalent		564			0.03				440		0.04				445		0.04				446		0.04				443		0.03
Taxable equivalent (non-GAAP)		55,821			3.82				48,342		3.71				47,300		3.65				46,800		3.62				45,804		3.54
Less: Net accretion of HCB acquired loans		(852	)		(0.06	)			—		—				—		—				—		—				—		—
Less: Net accretion of HCB acquired securities		(80	)		—				—		—				—		—				—		—				—		—
Excluding HCB acquisition-related purchase accounting accretion	$	54,889			3.76	%		$	48,342		3.71	%		$	47,300		3.65	%		$	46,800		3.62	%		$	45,804		3.54	%

	Nine months ended
	9/30/2026							9/30/2025
	Net Interest Income				Net Interest Margin			Net Interest Income				Net Interest Margin
	(Dollars in thousands)
As reported (GAAP)	$	150,014			3.70	%		$	133,661			3.50	%
Add:  taxable equivalent adjustment		1,449			0.03				1,339			0.04
Taxable equivalent (non-GAAP)		151,463			3.73				135,000			3.54
Less: Net accretion of HCB acquired loans		(852	)		(0.02	)			—			—
Less: Net accretion of HCB acquired securities		(80	)		—				—			—
Excluding HCB acquisition-related purchase accounting accretion	$	150,531			3.71	%		$	135,000			3.54	%

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

Pre-Tax, Pre-Provision Net Revenue (PPNR):
	Three months ended																				Nine months ended
	9/30/2026				6/30/2026				3/31/2026				12/31/2025				9/30/2025				9/30/2026				9/30/2025
					(In thousands)
Income before income tax	$	21,499			$	22,710			$	20,230			$	20,311			$	21,176			$	64,439			$	60,980
Add back provision for credit losses		4,807				2,717				362				1,923				1,991				7,886				4,212
PPNR	$	26,306			$	25,427			$	20,592			$	22,234			$	23,167			$	72,325			$	65,192

Net Income and Diluted Earnings per Share Excluding After-Tax Merger Related Expenses
	Three months ended
	9/30/2026								6/30/2026								3/31/2026								12/31/2025								9/30/2025
	Net Income				Diluted EPS				Net Income				Diluted EPS				Net Income				Diluted EPS				Net Income				Diluted EPS				Net Income				Diluted EPS
	(In thousands, except per share amounts)
As reported (GAAP)	$	17,850			$	0.80			$	18,805			$	0.90			$	16,875			$	0.81			$	18,572			$	0.89			$	17,502			$	0.84
Add: after-tax merger related expenses		2,799				0.12				368				0.02				299				0.02				—				—				—				—
Adjusted	$	20,649			$	0.92			$	19,173			$	0.92			$	17,174			$	0.83			$	18,572			$	0.89			$	17,502			$	0.84

	Nine months ended
	9/30/2026								9/30/2025
	Net Income				Diluted EPS				Net Income				Diluted EPS
	(In thousands, except per share amounts)
As reported (GAAP)	$	53,530			$	2.51			$	49,969			$	2.38
Add: after-tax merger related expenses		3,466				0.16				—				—
Adjusted	$	56,996			$	2.67			$	49,969			$	2.38

Tangible Common Equity Ratio
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
	(Dollars in thousands)
Common shareholders' equity	$	577,296			$	528,413			$	510,553			$	502,951			$	490,742
Less:
Goodwill		50,219				28,300				28,300				28,300				28,300
Other intangibles, net		17,045				771				886				1,001				1,123
Tangible common equity		510,032				499,342				481,367				473,650				461,319
Addition:
Accumulated other comprehensive loss for regulatory purposes		67,216				50,544				55,226				51,891				54,833
Tangible common equity excluding accumulated other comprehensive loss adjustments	$	577,248			$	549,886			$	536,593			$	525,541			$	516,152
Total assets	$	6,263,632			$	5,663,841			$	5,557,509			$	5,505,720			$	5,493,113
Less:
Goodwill		50,219				28,300				28,300				28,300				28,300
Other intangibles, net		17,045				771				886				1,001				1,123
Tangible assets		6,196,368				5,634,770				5,528,323				5,476,419				5,463,690
Addition:
Net unrealized losses on available for sale securities and derivatives, net of tax		67,216				50,544				55,226				51,891				54,833
Tangible assets excluding accumulated other comprehensive loss adjustments	$	6,263,584			$	5,685,314			$	5,583,549			$	5,528,310			$	5,518,523
Common equity ratio		9.22	%			9.33	%			9.19	%			9.14	%			8.93	%
Tangible common equity ratio		8.23	%			8.86	%			8.71	%			8.65	%			8.44	%
Tangible common equity ratio excluding accumulated other comprehensive loss		9.22	%			9.67	%			9.61	%			9.51	%			9.35	%
Tangible Common Equity per Share of Common Stock:
Common shareholders' equity	$	577,296			$	528,413			$	510,553			$	502,951			$	490,742
Tangible common equity	$	510,032			$	499,342			$	481,367			$	473,650			$	461,319
Shares of common stock outstanding (in thousands)		22,081				20,603				20,586				20,549				20,692
Common shareholders' equity per share of common stock	$	26.14			$	25.65			$	24.80			$	24.48			$	23.72
Tangible common equity per share of common stock	$	23.10			$	24.24			$	23.38			$	23.05			$	22.29

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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Independent Bank Corporation's third-quarter 2026 earnings?

Independent Bank Corporation earned $17.9 million, or $0.80 per diluted share, in third-quarter 2026. In the prior-year quarter, net income was $17.5 million, or $0.84 per diluted share.

How much did Independent Bank Corporation's net interest margin improve in third-quarter 2026?

Net interest margin reached 3.79%, increasing 12 basis points from the prior quarter and 28 basis points from third-quarter 2025. Excluding Highpoint acquisition-related purchase accounting accretion, the non-GAAP margin was 3.76%, up 5 basis points sequentially.

When does Independent Bank Corporation expect to complete Highpoint's system integration?

Independent Bank Corporation expects to complete Highpoint Community Bank's full system integration on November 9, 2026.

Why did Independent Bank Corporation's credit-loss provision rise in third-quarter 2026?

The company attributed the higher provision primarily to increased specific reserves for one commercial lending relationship, loan growth and increased unfunded commitments. Provision expense was $4.81 million, compared with $2.72 million in the preceding quarter and $1.99 million a year earlier.