Financial Performance - Net income for Q3 2025 was $17.5 million, up from $13.8 million in Q3 2024, reflecting a 27% increase[204]. - Year-to-date net income for the first nine months of 2025 was $50.0 million, compared to $48.3 million in the same period of 2024, representing a 3.5% increase[205]. - Basic net income per common share for Q3 2025 was $0.85, compared to $0.66 in Q3 2024, a 28.8% increase[206]. - Non-interest income totaled $11.9 million in Q3 2025, up from $9.5 million in Q3 2024, while year-to-date non-interest income decreased to $33.7 million from $37.2 million[224]. - The company recorded a net loss of $0.36 million on the sale of securities AFS for the first nine months of 2025, compared to a loss of $0.41 million in 2024[233]. Interest Income and Margin - Net interest income for Q3 2025 totaled $45.4 million, an increase of $3.5 million or 8.4% from Q3 2024[208]. - For the first nine months of 2025, net interest income was $133.7 million, up $10.3 million or 8.3% from the same period in 2024[209]. - The net interest margin for Q3 2025 was 3.54%, compared to 3.37% in Q3 2024, indicating improved efficiency[214]. - The net interest margin (Non-GAAP FTE) for the nine months ended September 30, 2025, was 3.54%, compared to 3.35% in 2024[218]. Asset and Equity Growth - Total assets increased to $5,385,238 thousand in 2025 from $5,219,668 thousand in 2024, reflecting growth in the company's balance sheet[216]. - Shareholders' equity rose to $466,533 thousand in 2025, up from $418,688 thousand in 2024, indicating improved financial stability[216]. - Total shareholders' equity grew to $490.7 million at September 30, 2025, from $454.7 million at December 31, 2024, primarily due to earnings retention[293]. Loan and Credit Quality - Non-accrual loans averaged $10.8 million in Q3 2025, up from $4.5 million in Q3 2024[212]. - The provision for credit losses increased by $2.0 million in the first nine months of 2025 compared to the same period in 2024[205]. - The total loans increased to $4,198,283,000 as of September 30, 2025, compared to $4,038,825,000 at December 31, 2024, reflecting a growth of approximately 3.95%[265]. - Non-performing loans rose to $20,355,000, representing 0.48% of total portfolio loans, up from 0.15% at December 31, 2024[267]. - The allowance for credit losses (ACL) on loans increased to $62,459,000 at September 30, 2025, from $59,379,000 at December 31, 2024, equating to 1.49% of total portfolio loans[272]. Deposits and Funding - Deposits totaled $4.86 billion at September 30, 2025, an increase of $205.1 million from December 31, 2024[254]. - Core deposits increased to $4.86 billion as of September 30, 2025, from $4.65 billion at December 31, 2024, driven by growth in savings and interest-bearing checking accounts[275]. - Uninsured deposits rose to $1,139,186 thousand, representing 24.3% of total deposits as of September 30, 2025, compared to 23.3% at December 31, 2024[277]. Expenses and Cost Management - Total non-interest expense increased by $1.5 million to $34.1 million in Q3 2025 and by $4.0 million to $102.2 million for the first nine months of 2025 compared to the same periods in 2024[240]. - Compensation and employee benefits expenses increased by $1.1 million in Q3 2025 and by $0.6 million for the first nine months of 2025 compared to the same periods in 2024[242]. Securities and Investments - Securities available for sale had a fair value of $502.6 million as of September 30, 2025, down from $559.2 million at December 31, 2024[257]. - As of September 30, 2025, the carrying value of securities held to maturity is $321,450,000, with unrealized losses of $13,766,000[258]. - The company recorded net losses of $36,000 on sales of securities available for sale during the three months ended September 30, 2025[261]. Risk Management and Controls - The maximum estimated additional losses from litigation matters are considered insignificant, although outcomes remain uncertain[306]. - The company has not experienced material changes in its critical accounting policies since the last annual report[313]. - There were no changes in internal controls over financial reporting that materially affected the company's reporting during the quarter ended September 30, 2025[319]. - The company’s disclosure controls and procedures were evaluated as effective as of September 30, 2025[318].

Financial Data and Key Metrics Changes - The company reported a net income of $17.5 million or $0.84 per diluted share for Q3 2025, compared to $13.8 million or $0.65 per diluted share in the prior year period, reflecting a significant year-over-year increase [3] - Loan balances grew at an annualized rate of 3.2%, while total deposits, excluding brokered time deposits, increased by 13% annualized [3] - The efficiency ratio for Q3 2025 was 58.86%, indicating effective expense management [4] - The return on average assets was 1.27% and return on average equity was 14.57% for the quarter [4] Business Line Data and Key Metrics Changes - The commercial loan portfolio increased by $57 million during the quarter, contributing to a year-to-date growth of $188 million or 12.9% annualized [8] - The mortgage and consumer loan portfolios contracted during the quarter due to seasonality and disciplined underwriting [8] - Non-interest income totaled $11.9 million in Q3 2025, up from $9.5 million in the year-ago quarter [14] Market Data and Key Metrics Changes - Total deposits as of September 30, 2025, were $4.9 billion, with core deposits increasing by $148.2 million during the third quarter [5][6] - The deposit base comprised 46% retail, 37% commercial, and 17% municipal, all showing year-over-year growth [7] Company Strategy and Development Direction - The company aims to continue investing in its team and technology while striving to be Michigan's most people-focused bank [19] - The focus remains on growing commercial banking relationships and leveraging market dislocation opportunities [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about finishing 2025 strong and growing the customer base and earnings in 2026 [5] - The credit quality remains strong, with low levels of watch credits and historically low net charge-offs [4][5] - The Michigan economy is characterized as stable, with no systemic issues observed in the customer base [46][48] Other Important Information - The company repurchased 13,732 shares of common stock for an aggregate purchase price of $0.4 million in Q3 2025 [18] - The effective income tax rate for the quarter was 17.3% [18] Q&A Session Summary Question: Can you offer details on the new commercial banking hires? - The three new hires have a minimum of 15 years of experience, with two having over 20 years, and they were added in Southeast Michigan [25] Question: What opportunities exist from market dislocation? - The company sees ongoing opportunities to attract talent and commercial banking relationships as the industry consolidates [26] Question: How competitive is the environment for core funding? - The funding environment is competitive, with a focus on comprehensive relationships to grow both sides of the balance sheet [30] Question: Can you comment on the margin outlook? - The margin is expected to remain stable despite potential Fed cuts, with benefits from asset remixing and repricing effects [37] Question: Are there signs of credit weakness in commercial borrowers? - Performance at the individual business level remains solid, with no systemic issues observed, and the watchlist percentage is low [46]

Financial Data and Key Metrics Changes - The company reported a net income of $17.5 million or $0.84 per diluted share for Q3 2025, compared to $13.8 million or $0.65 per diluted share in the prior year period, reflecting a significant year-over-year increase [3] - Loan balances grew at an annualized rate of 3.2%, while total deposits, excluding brokered time deposits, increased by 13% annualized [3] - The efficiency ratio for Q3 2025 was 58.86%, indicating effective expense management [4] - The return on average assets was 1.27% and return on average equity was 14.57% for the quarter [4] Business Line Data and Key Metrics Changes - The commercial loan portfolio increased by $57 million during the quarter, contributing to a year-to-date growth of $188 million or 12.9% annualized [8] - The mortgage and consumer loan portfolios contracted during the quarter due to seasonality and disciplined underwriting [8] - Non-interest income totaled $11.9 million in Q3 2025, up from $9.5 million in the year-ago quarter [15] Market Data and Key Metrics Changes - Total deposits as of September 30, 2025, were $4.9 billion, with core deposits increasing by $148.2 million during the third quarter [5] - The deposit base comprised 46% retail, 37% commercial, and 17% municipal, all showing year-over-year growth [5] Company Strategy and Development Direction - The company aims to continue investing in its team and technology while striving to be Michigan's most people-focused bank [20] - The focus remains on growing the commercial banking segment and enhancing customer relationships [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about finishing 2025 strong and growing the customer base and earnings in 2026 [5] - The credit quality remains strong, with low levels of watch credits and historically low net charge-offs [4][10] Other Important Information - Non-performing assets increased from 0.16% to 0.38% of total assets quarter-over-quarter, primarily due to one commercial relationship facing financial difficulties [5] - The effective income tax rate for Q3 2025 was 17.3% [19] Q&A Session Summary Question: Can you provide details on the new commercial banking hires? - The three new hires have a minimum of 15 years of experience, with two having over 20 years, and they were added in Southeast Michigan [23] Question: What opportunities exist from market dislocation? - The company sees ongoing opportunities for talent acquisition and commercial banking relationships as the industry consolidates [24] Question: How competitive is the environment for core funding? - The funding environment is competitive, with a focus on comprehensive relationships to grow both sides of the balance sheet [27] Question: Can you comment on the margin outlook? - The margin is expected to remain stable despite potential Fed cuts, with benefits from asset repricing and a shift in asset mix [31] Question: What is the status of credit quality? - There is one primary borrower in distress, but overall credit quality remains solid, with no systemic issues observed [41]

Core Insights - Independent Bank (IBCP) reported revenue of $57.3 million for the quarter ended September 2025, reflecting an 11.6% increase year-over-year, although it was a -1.55% surprise compared to the Zacks Consensus Estimate of $58.2 million [1] - Earnings per share (EPS) for the quarter was $0.84, up from $0.65 in the same quarter last year, resulting in a +1.2% surprise over the consensus EPS estimate of $0.83 [1] Financial Performance Metrics - Net Interest Margin (GAAP) was reported at 3.5%, slightly below the two-analyst average estimate of 3.6% [4] - Efficiency Ratio stood at 58.9%, better than the average estimate of 59.6% based on two analysts [4] - Total non-interest income was $11.94 million, compared to the average estimate of $12.43 million [4] - Net Interest Income was reported at $45.36 million, below the average estimate of $45.83 million [4] Stock Performance - Shares of Independent Bank have returned +2.9% over the past month, while the Zacks S&P 500 composite has changed by +3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Agenda • Formal Remarks Earnings Call: Third Quarter 2025 October 28, 2025 (NASDAQ: IBCP) Cautionary note regarding forward-looking statements This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plans and prospects. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause ac ...

Core Insights - Independent Bank (IBCP) reported quarterly earnings of $0.84 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, and showing an increase from $0.65 per share a year ago, resulting in an earnings surprise of +1.20% [1] - The bank's revenues for the quarter ended September 2025 were $57.3 million, which fell short of the Zacks Consensus Estimate by 1.55%, compared to $51.36 million in the same quarter last year [2] - The stock has underperformed the market, losing about 8.5% year-to-date, while the S&P 500 has gained 16.9% [3] Earnings Performance - Over the last four quarters, Independent Bank has surpassed consensus EPS estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is $0.79, with expected revenues of $57.9 million, and for the current fiscal year, the estimate is $3.18 on revenues of $228.1 million [7] Market Outlook - The company's earnings outlook will be crucial for future stock performance, with a mixed trend in estimate revisions leading to a Zacks Rank 3 (Hold) [6] - The Zacks Industry Rank for Banks - Midwest is in the top 35% of over 250 Zacks industries, indicating a favorable industry outlook [8] Competitor Insights - First Interstate BancSystem (FIBK), a competitor in the same industry, is expected to report quarterly earnings of $0.59 per share, reflecting a year-over-year increase of +9.3% [9] - FIBK's anticipated revenues are $254.9 million, up 1.2% from the previous year [10]

Financial Performance - Net income for Q3 2025 was $17.5 million, or $0.84 per diluted share, compared to $13.8 million, or $0.65 per diluted share in Q3 2024, representing a year-over-year increase of 26.8% in net income[1] - Net income for the three months ended September 30, 2025, was $17,502 thousand, an increase of 3.7% from $16,877 thousand in the previous quarter[29] - Net income for Q3 2025 reached $17,502,000, up 26.3% from $13,810,000 in Q3 2024[31] - Basic net income per common share increased to $0.85 for the three months ended September 30, 2025, compared to $0.81 in the previous quarter, reflecting a growth of 4.9%[29] - Basic earnings per share increased to $0.85 in Q3 2025, compared to $0.66 in Q3 2024, reflecting a growth of 28.8%[31] Income and Revenue - Net interest income totaled $45.4 million, an increase of $3.5 million (or 8.4%) from the prior year, and $0.7 million (or 1.7%) from Q2 2025[5] - Non-interest income increased to $11.9 million in Q3 2025 from $9.5 million in Q3 2024, primarily due to variances in mortgage banking revenues[6] - Non-interest income totaled $11,937 thousand for the three months ended September 30, 2025, compared to $11,325 thousand in the previous quarter, indicating a rise of 5.4%[29] - Net interest income for Q3 2025 was $45,361,000, an increase of 8.6% from $41,854,000 in Q3 2024[31] - Net interest income after provision for credit losses was $129,449 thousand for the nine months ended September 30, 2025, compared to $121,146 thousand for the same period in 2024, representing a growth of 6.9%[29] Assets and Deposits - Total assets reached $5.49 billion at September 30, 2025, an increase of $155.0 million from December 31, 2024[13] - Total assets increased to $5,493,113 thousand as of September 30, 2025, compared to $5,338,104 thousand at December 31, 2024, reflecting a growth of 2.9%[27] - Total deposits were $4.86 billion at September 30, 2025, reflecting an increase of $205.1 million from December 31, 2024[13] - Total deposits reached $4,859,155 thousand, a 4.4% increase from $4,654,088 thousand at the end of 2024[27] - Deposits increased to $4,786,408,000 in Q3 2025 from $4,616,119,000 in Q3 2024, marking a rise of 3.7%[31] Credit and Losses - The allowance for credit losses stood at 1.49% of total loans, with net charge-offs of $0.73 million in Q3 2025 compared to $0.31 million in Q3 2024[12] - Provision for credit losses was $1,991 thousand for the three months ended September 30, 2025, compared to $1,500 thousand in the previous quarter, showing an increase of 32.7%[29] - Provision for credit losses increased to $1,991,000 in Q3 2025 from $721,000 in Q3 2024, indicating a rise in expected credit losses[31] Efficiency and Management - The efficiency ratio for Q3 2025 was 58.86%, indicating effective expense management and strategic investments[2] - The efficiency ratio improved to 58.86% in Q3 2025 from 62.82% in Q3 2024, indicating better cost management[31] - Total non-interest expense increased to $34,131 thousand for the three months ended September 30, 2025, compared to $33,762 thousand in the previous quarter, a rise of 1.1%[29] Shareholder Equity and Capital - The company repurchased 266,008 shares of common stock for an aggregate purchase price of $7.77 million during the nine months ended September 30, 2025[18] - The company reported an increase in retained earnings to $239,602 thousand as of September 30, 2025, up from $205,853 thousand at December 31, 2024, reflecting a growth of 16.4%[27] - Common shareholders' equity increased to $490,742 thousand as of September 30, 2025, up from $469,250 thousand in the previous quarter[38] - Tangible common equity reached $461,319 thousand, reflecting an increase from $439,706 thousand in the prior quarter[38] - The tangible common equity ratio improved to 8.44% as of September 30, 2025, compared to 8.16% in the previous quarter[38] Capital Ratios - The tangible common equity ratio increased to 8.44% in Q3 2025 from 8.08% in Q3 2024, showing enhanced capital strength[32] - Total capital to risk-weighted assets ratio was 13.67% as of September 30, 2025, down from 14.25% a year earlier, indicating a slight decrease in capital adequacy[32] - The common equity ratio was reported at 8.93%, up from 8.66% in the prior quarter[38] Other Financial Metrics - The net interest margin was 3.54% in Q3 2025, up from 3.37% in Q3 2024, but down from 3.58% in Q2 2025[5] - The net interest margin (FTE) for Q3 2025 was 3.54%, up from 3.37% in Q3 2024, reflecting improved profitability on earning assets[37] - The number of shares of common stock outstanding was 20,692 thousand, slightly down from 20,716 thousand in the previous quarter[38] - Tangible assets excluding accumulated other comprehensive loss adjustments totaled $5,518,523 thousand, up from $5,453,064 thousand in the previous quarter[38] - The accumulated other comprehensive loss for regulatory purposes was $54,833 thousand, down from $64,089 thousand in the previous quarter[38]

Core Insights - Independent Bank Corporation reported a net income of $17.5 million, or $0.84 per diluted share, for Q3 2025, an increase from $13.8 million, or $0.65 per diluted share, in the same period last year [1][2]. Financial Performance - Net interest income for Q3 2025 was $45.4 million, up $3.5 million, or 8.4%, year-over-year, and $0.7 million, or 1.7%, from Q2 2025 [3]. - The net interest margin (NIM) was 3.54% in Q3 2025, compared to 3.37% in Q3 2024 and 3.58% in Q2 2025 [3][29]. - Non-interest income totaled $11.9 million in Q3 2025, an increase from $9.5 million in the prior year, primarily due to variances in mortgage banking revenues [4][29]. - Non-interest expenses were $34.1 million in Q3 2025, compared to $32.6 million in the same period last year [8][29]. Asset Quality - Non-performing loans increased to $20.4 million, or 0.48% of total portfolio loans, from $6.0 million, or 0.15%, in the previous year [9]. - The allowance for credit losses stood at 1.49% of total loans, with net charge-offs at historically low levels of four basis points through the first three quarters of 2025 [10][11]. Balance Sheet and Capital - Total assets were $5.49 billion at September 30, 2025, an increase of $155 million from December 31, 2024 [12]. - Total deposits reached $4.86 billion, up $205.1 million from the end of 2024, driven by increases in savings and interest-bearing checking accounts [12]. - Shareholders' equity was $490.7 million, or 8.93% of total assets, compared to $454.7 million, or 8.52%, at the end of 2024 [14]. Shareholder Returns - The company paid a dividend of $0.26 per share on August 15, 2025 [4]. - A share repurchase plan authorized the purchase of up to 1,100,000 shares, with 266,008 shares repurchased for $7.77 million during the nine months ended September 30, 2025 [16].

Core Viewpoint - Independent Bank Corporation is set to release its third quarter results for 2025 on October 28, 2025, at 8:00 am ET, with a conference call scheduled for 11:00 am ET on the same day to discuss the results [1][2]. Company Overview - Independent Bank Corporation, listed on NASDAQ as IBCP, is a Michigan-based bank holding company with total assets of approximately $5.4 billion [4]. - The company operates through a state-chartered bank subsidiary, providing a full range of financial services including commercial banking, mortgage lending, investments, insurance, and title services [4]. - Founded in 1864 as First National Bank of Ionia, the company emphasizes exceptional personal service and value to its customers, stockholders, and communities [4]. Conference Call Details - The conference call for investors and analysts will be led by President and CEO Brad Kessel, CFO Gavin Mohr, and EVP of Commercial Banking Joel Rahn [2]. - Participants can join the live call by dialing 1-833-470-1428 with access code 362565, or through an audio webcast available at a specified URL [2]. - A playback of the call will be accessible by dialing 1-866-813-9403 with access code 783472, available until November 4, 2025 [3].

Core Points - Independent Bank Corporation announced the passing of Michael M. Magee, Jr., a significant figure in the company, who served as Chairman of the Board from 2013 to 2024 and was with the company for 38 years [1][2] - The company operates nearly 60 locations across Michigan's Lower Peninsula and has total assets of approximately $5.4 billion, providing a full range of financial services [3] Company Overview - Independent Bank Corporation is the holding company for Independent Bank, which offers services including commercial banking, mortgage lending, investments, and title services [3] - The company emphasizes exceptional personal service and value to its customers, stockholders, and the communities it serves [3]