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Core Insights - Independent Bank Corporation reported a net income of $18.6 million or $0.89 per diluted share for Q4 2025, a slight increase from $18.5 million or $0.87 per diluted share in the same period last year [2] - The company achieved a net growth in loans of $78 million or 7.4% annualized and a net growth in total deposits of $57.5 million or 4.8% annualized [1][5] - The tangible common equity ratio increased to 8.65%, and a dividend of $0.26 per share was declared [1] Financial Performance - For the full year 2025, net income reached $68.5 million or $3.27 per diluted share, compared to $66.8 million or $3.16 per diluted share in 2024 [2] - Net interest income increased by $1 million or 2.2% over 2025, with a net interest margin of 3.62%, up eight basis points from the previous quarter [2][13] - The company reported a return on average assets of 1.35% and a return on average equity of 14.75% [2] Loan and Deposit Growth - Total loans grew by $237 million or 5.9% for the year, with the commercial portfolio leading at $276 million or 14.2% growth [8] - Deposits totaled $4.8 billion at year-end 2025, an increase of $107.6 million from December 31, 2024, driven by growth in savings and interest-bearing checking accounts [5][6] - The deposit base composition was 47% retail, 37% commercial, and 16% municipal, all showing year-over-year growth [6] Credit Quality - Total nonperforming loans were $23.1 million or 54 basis points of total loans, slightly up from 48 basis points at the end of the previous quarter [11] - Past due loans totaled $7.8 million or 18 basis points, also up from 12 basis points [11] - The company reported net charge-offs of $1.6 million or four basis points of average loans for the year, compared to $900,000 or two basis points in 2024 [11] Strategic Outlook - The company anticipates loan growth in the mid-single-digit range for 2026, targeting a full-year growth rate of 4.5% to 5.5% [21] - Net interest income is forecasted to grow by 7% to 8% over 2025, with net interest margin expansion expected in the first quarter of 2026 [21] - Noninterest income is estimated to increase by 3% to 4% compared to 2025, with mortgage loan origination volumes expected to decrease by 6% to 7% [22] Capital Management - The tangible common equity ratio has returned to the targeted range of 8.5% to 9.5%, and the company repurchased 407,113 shares of common stock for $12.4 million in 2025 [13] - The board authorized share repurchases of approximately 5% in 2026, although no repurchases are currently modeled for that year [23] - The company remains open to M&A opportunities, particularly in the Michigan market, while emphasizing organic growth strategies [36][37]

Financial Data and Key Metrics Changes - Independent Bank Corporation reported fourth quarter 2025 net income of $18.6 million or $0.89 per diluted share, compared to $18.5 million or $0.87 per diluted share in the prior year period [3] - For the year ended December 31, 2025, net income was $68.5 million or $3.27 per diluted share, up from $66.8 million or $3.16 per diluted share in 2024 [3] - Net interest income increased by $1 million or 2.2% over the third quarter of 2025, with a net interest margin of 3.62%, up eight basis points from the previous quarter [4] - Return on average assets and return on average equity were 1.35% and 14.75% respectively [4] - The tangible common equity ratio increased to 8.65% [4] Business Line Data and Key Metrics Changes - Total loans grew by $78 million or 7.4% annualized in the fourth quarter, with a total loan portfolio increase of $237 million or 5.9% for the year [9] - The commercial portfolio saw significant growth of $276 million or 14.2%, with quarterly growth of $88 million or 16% annualized [9] - The residential mortgage portfolio grew by $7.2 million, while the installment loan portfolio decreased by $17 million for the quarter [9] Market Data and Key Metrics Changes - Deposits totaled $4.8 billion at December 31, 2025, an increase of $107.6 million from December 31, 2024 [6] - The deposit base comprised 47% retail, 37% commercial, and 16% municipal, with all three portfolios up year-over-year [7] - Business deposits increased by $20.4 million, while retail deposits increased by $64.1 million, offset by a $28.6 million decrease in municipal deposits [7] Company Strategy and Development Direction - The company aims to continue investing in talent acquisition and technology to enhance its community banking franchise [23] - There is a focus on maintaining a strong commercial loan pipeline and integrating talented bankers into the organization [6] - The company anticipates loan growth in the mid-single-digit range for 2026, with a target of 4.5%-5.5% [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic challenges and continue delivering strong results [23] - The outlook for net interest income growth is projected at 7%-8% for 2026, with net interest margin expansion expected [20] - Management noted that credit quality metrics remain positive, with non-performing loans at 54 basis points of total loans [11] Other Important Information - The company repurchased 407,113 shares of common stock for an aggregate purchase price of $12.4 million in 2025 [13] - A tax credit transfer agreement was executed, expected to reduce tax obligations and enhance earnings per share [19] Q&A Session Summary Question: Market outlook in Michigan and banker additions - Management expects to add a net of four to five bankers in 2026, with opportunities in Southeast Michigan due to M&A dislocation [27] Question: Loan growth outlook - The company anticipates mid-single-digit loan growth due to a strategic emphasis on commercial banking, with some shrinkage in consumer loans [30] Question: Margin guidance - Management forecasts a margin expansion of five to seven basis points in Q1 2026, with three to five basis points in subsequent quarters [36] Question: Capital management and M&A interest - The company is excited about its capital position, allowing flexibility for share repurchases and potential M&A opportunities, though not a requirement for success [39][41] Question: Charge-off expectations - Management expects charge-offs to remain low, similar to recent history, with a provision for credit losses of 20-25 basis points [53]

Financial Data and Key Metrics Changes - Independent Bank Corporation reported fourth quarter 2025 net income of $18.6 million or $0.89 per diluted share, compared to $18.5 million or $0.87 per diluted share in the prior year period [3] - For the year ended December 31, 2025, net income was $68.5 million or $3.27 per diluted share, up from $66.8 million or $3.16 per diluted share in 2024 [3] - Net interest income increased by $1 million or 2.2% over the third quarter of 2025, with a net interest margin of 3.62%, up eight basis points from the previous quarter [4] - The return on average assets and return on average equity were 1.35% and 14.75% respectively [4] Business Line Data and Key Metrics Changes - Total loans grew by $78 million or 7.4% annualized in the fourth quarter, with a total loan portfolio increase of $237 million or 5.9% for the year [9] - The commercial loan portfolio saw significant growth of $276 million or 14.2%, with quarterly growth of $88 million or 16% annualized [9] - The residential mortgage portfolio grew by $7.2 million, while the installment loan portfolio decreased by $17 million for the quarter [9] Market Data and Key Metrics Changes - Deposits totaled $4.8 billion at December 31, 2025, an increase of $107.6 million from December 31, 2024, primarily due to growth in savings and interest-bearing checking accounts [6] - The deposit base composition was 47% retail, 37% commercial, and 16% municipal, with all three portfolios showing year-over-year growth [7] - The total cost of funds decreased by 15 basis points to 1.67% [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 [23] - A robust commercial loan pipeline and strategic initiatives to attract talented bankers are key components of the company's growth strategy [6] - The company anticipates loan growth in the mid-single-digit range for 2026, with a focus on commercial loans while expecting mortgage loans to remain flat and installment loans to decline [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through various economic environments and deliver consistent results for shareholders [23] - The outlook for 2026 includes expectations for net interest income growth of 7%-8% and net interest margin expansion of 5-7 basis points in the first quarter [20] - Management noted that credit quality metrics remain positive, with non-performing loans at 54 basis points of total loans, slightly up from the previous quarter [11] Other Important Information - The company repurchased 407,113 shares of common stock for an aggregate purchase price of $12.4 million in 2025 [13] - A tax credit transfer agreement executed during the fourth quarter is expected to reduce tax obligations and enhance earnings per share [19] Q&A Session Summary Question: Market outlook in Michigan and banker additions for 2026 - Management expects to add a net of four to five bankers in 2026, with opportunities arising in Southeast Michigan due to M&A dislocation [27] Question: Loan growth outlook and factors affecting it - The company anticipates mid-single-digit loan growth due to strong commercial growth but lower levels in mortgage and consumer loans [30] Question: Margin guidance and drivers for optimism - Management forecasts margin expansion of five to seven basis points in Q1, with three to five basis points in subsequent quarters, driven by rate cuts and repricing of below-market assets [36] Question: Capital management and M&A landscape - The company is excited about its capital position, allowing flexibility for share repurchases and potential M&A opportunities, though M&A is not a requirement for continued success [39][41] Question: Charge-off expectations - Management expects charge-offs to remain low, similar to recent history, with a provision for credit losses of 20-25 basis points of average portfolio loans [53]

Financial Data and Key Metrics Changes - Independent Bank Corporation reported Q4 2025 net income of $18.6 million or $0.89 per diluted share, compared to $18.5 million or $0.87 per diluted share in the prior year period [3] - For the full year 2025, net income was $68.5 million or $3.27 per diluted share, up from $66.8 million or $3.16 per diluted share in 2024 [3] - Net interest income increased by $1 million or 2.2% over Q3 2025, with a net interest margin of 3.62%, up eight basis points from the previous quarter [4] - Return on average assets and return on average equity were 1.35% and 14.75% respectively [4] - The tangible common equity ratio increased to 8.65% [4] Business Line Data and Key Metrics Changes - Total loans grew by $78 million or 7.4% annualized in Q4 2025, with a full-year increase of $237 million or 5.9% [8] - The commercial loan portfolio led growth with $276 million or 14.2%, while residential mortgage grew by $7.2 million and installment loans decreased by $17 million [8] - The bank added a net of five experienced bankers to its commercial banking team during the year [8] Market Data and Key Metrics Changes - Deposits totaled $4.8 billion at December 31, 2025, an increase of $107.6 million from December 31, 2024 [5] - The deposit base comprised 47% retail, 37% commercial, and 16% municipal, with all three portfolios up year-over-year [6] - Business deposits increased by $20.4 million, while retail deposits increased by $64.1 million, offset by a $28.6 million decrease in municipal deposits [6] 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 [23] - A robust commercial loan pipeline and strategic initiatives to attract talented bankers are key components of the company's growth strategy [5] - The company anticipates loan growth in the mid-single-digit range for 2026, with a focus on commercial loans [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through various economic environments and deliver strong results [23] - The outlook for 2026 includes expectations for net interest income growth of 7%-8% and net interest margin expansion of 5-7 basis points in Q1 2026 [19] - The company expects a provision expense for allowance for credit losses of approximately 20-25 basis points of average portfolio loans [19] Other Important Information - The dividend payout ratio for the year was 32%, with a $0.26 per share dividend paid in November 2025 [4] - Non-interest income totaled $12 million in Q4 2025, down from $19.1 million in the year-ago quarter [16] - The company executed a tax credit transfer agreement expected to reduce tax obligations and enhance earnings per share [5] Q&A Session Summary Question: Market outlook in Michigan and banker additions - Management expects to add a net of four to five bankers in 2026, with opportunities in Southeast Michigan due to M&A dislocation [25] Question: Loan growth outlook - The company anticipates mid-single-digit loan growth due to a focus on commercial loans, with a projected shrinkage in the consumer portfolio [26][27] Question: Margin guidance - Management forecasts a margin expansion of five to seven basis points in Q1 2026, with three to five basis points in subsequent quarters [30] Question: Capital management and M&A interest - The company is excited about its capital position, allowing flexibility for share repurchases and potential M&A opportunities, though not a requirement for success [32][35] Question: Charge-off expectations - Management expects charge-offs to remain low, similar to recent history, with a provision of 20-25 basis points [47]

Core Insights - Independent Bank (IBCP) reported a revenue of $58.31 million for the quarter ended December 2025, reflecting a year-over-year decline of 5.9% [1] - The earnings per share (EPS) for the same period was $0.89, compared to $0.87 a year ago, indicating a slight increase [1] - The reported revenue exceeded the Zacks Consensus Estimate of $57.7 million, resulting in a surprise of +1.06% [1] - The company delivered an EPS surprise of +7.23%, with the consensus EPS estimate being $0.83 [1] Financial Metrics - Net Interest Margin (GAAP) stood at 3.6%, matching the average estimate based on two analysts [4] - The Efficiency Ratio was reported at 61.2%, compared to the average estimate of 60.1% based on two analysts [4] - Total non-interest income was $11.96 million, exceeding the average estimate of $11.81 million from two analysts [4] - Net Interest Income was reported at $46.35 million, slightly below the average estimate of $46.46 million from two analysts [4] Stock Performance - Shares of Independent Bank have returned +4.5% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

INDEPENDENT | BANK Earnings Call: Fourth Quarter 2025 Agenda · Formal Remarks January 22, 2026 (NASDAQ: IBCP) Be Independent 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, a ...

Financial Performance - Fourth quarter 2025 net income was $18.6 million, or $0.89 per diluted share, compared to $18.5 million, or $0.87 per diluted share in the prior-year period[1]. - Net income for the twelve months ended December 31, 2025, was $68.54 million, up from $66.79 million in 2024, indicating a growth of about 2.6%[31]. - Basic net income per common share increased to $3.30 in 2025 from $3.20 in 2024, a rise of 3.1%[31]. - Net income for Q4 2025 was $18,572,000, up 6.1% from $17,502,000 in Q3 2025[33]. Revenue and Income Sources - Net interest income for the fourth quarter increased by $3.5 million (8.2%) year-over-year to $46.4 million, with a net interest margin of 3.62%, up from 3.45% in the prior year[4]. - Non-interest income for the fourth quarter was $12.0 million, down from $19.1 million in the prior year, primarily due to variances in mortgage banking revenues[6]. - Non-interest income totaled $45.64 million for the twelve months ended December 31, 2025, down from $56.36 million in 2024, a decrease of approximately 19.1%[31]. - Net interest income after provision for credit losses was $173.88 million for the twelve months ended December 31, 2025, compared to $161.78 million in 2024, reflecting a year-over-year increase of approximately 7.5%[31]. Asset and Loan Growth - Total assets increased to $5.51 billion at December 31, 2025, up $167.6 million from the previous year, with loans totaling $4.28 billion[14]. - Total loans grew by $78.0 million (7.4% annualized) from September 30, 2025, while total deposits increased by $57.1 million (4.8% annualized) over the same period[3]. - Net loans increased to $4.21 billion in 2025, up from $3.98 billion in 2024, representing a growth of approximately 5.8%[28]. - Loans increased to $4,249,389,000 in Q4 2025, up from $4,201,557,000 in Q3 2025, showing growth in lending activities[33]. Credit Quality and Loss Provisions - The provision for credit losses was $6.1 million for the full year 2025, compared to $4.5 million in 2024, reflecting growth in commercial loans[9]. - The allowance for credit losses was $63.45 million as of December 31, 2025, compared to $59.38 million in 2024, reflecting a 6.5% increase[28]. - Provision for credit losses decreased to $1,923,000 in Q4 2025 from $1,991,000 in Q3 2025, indicating improved credit quality[33]. - The ratio of non-performing loans to total portfolio loans was 0.54% at December 31, 2025, compared to 0.15% a year earlier[12]. Shareholder Returns and Equity - The company’s dividend payout ratio was 32% for the year, with a dividend payment of $0.26 per share on November 14, 2025[3]. - The tangible common equity ratio improved to 8.65% in Q4 2025 from 8.44% in Q3 2025, indicating stronger capital position[35]. - Tangible common equity rose to $473.7 million, or $23.05 per share, compared to $424.9 million, or $20.33 per share at December 31, 2024[17]. - Cash dividend per share remained stable at $0.26 for both Q4 2025 and Q3 2025, reflecting consistent shareholder returns[33]. Expense Management - Total non-interest expense increased to $138.23 million in 2025, compared to $135.10 million in 2024, representing a rise of about 2.4%[31]. - The company reported a provision for credit losses of $6.14 million for the twelve months ended December 31, 2025, compared to $4.47 million in 2024, indicating an increase of approximately 37.4%[31].

Core Viewpoint - Independent Bank Corporation reported strong financial performance for the fourth quarter and full year of 2025, with net income growth and improved key financial metrics, indicating a solid operational foundation and positive outlook for 2026 [1][2]. Financial Performance - Fourth quarter 2025 net income was $18.6 million, or $0.89 per diluted share, compared to $18.5 million, or $0.87 per diluted share in the same period last year [1]. - For the year ended December 31, 2025, net income reached $68.5 million, or $3.27 per diluted share, up from $66.8 million, or $3.16 per diluted share in 2024 [1]. - The company achieved a 13.3% increase in tangible book value over the past year [2]. Operating Results - Net interest income for the fourth quarter of 2025 was $46.4 million, an increase of $3.5 million, or 8.2%, from the previous year [3]. - The net interest margin improved to 3.62% in the fourth quarter of 2025, up from 3.45% in the same quarter of the previous year [3][4]. - Average interest-earning assets were $5.16 billion in the fourth quarter of 2025, compared to $5.01 billion in the year-ago quarter [3]. Loan and Deposit Growth - The company reported net loan growth of $78.0 million, or 7.4% annualized, from September 30, 2025 [4]. - Total deposits increased by $57.1 million, or 4.8% annualized, from September 30, 2025 [4]. - Loans, excluding loans held for sale, totaled $4.28 billion at December 31, 2025, compared to $4.04 billion at December 31, 2024 [15]. Non-Interest Income and Expenses - Non-interest income for the fourth quarter of 2025 was $12.0 million, down from $19.1 million in the same quarter of 2024, primarily due to variances in mortgage banking revenues [7]. - Non-interest expenses totaled $36.1 million in the fourth quarter of 2025, a decrease from $37.0 million in the year-ago period [10]. Asset Quality - Total non-performing loans were $23.1 million at December 31, 2025, with a ratio of non-performing loans to total portfolio loans at 0.54% [12]. - The provision for credit losses was $6.1 million for the full year ended December 31, 2025, compared to $4.5 million in 2024 [5][12]. Capital and Liquidity - Total assets were $5.51 billion at December 31, 2025, an increase of $167.6 million from December 31, 2024 [15]. - Total shareholders' equity was $503.0 million at December 31, 2025, representing 9.14% of total assets [17]. - The company remains significantly above "well capitalized" for regulatory purposes with strong capital ratios [18]. Share Repurchase Plan - The Board of Directors authorized a share repurchase plan for 2026, allowing the purchase of up to 1,100,000 shares, approximately 5% of outstanding common stock [20].

Core Viewpoint - Independent Bank Corporation announced a quarterly cash dividend of $0.28 per share, reflecting a 7.7% increase, marking the thirteenth consecutive annual increase in dividend payments [1][2]. Company Overview - Independent Bank Corporation is a Michigan-based bank holding company with total assets of approximately $5.5 billion [2]. - The company operates through a state-chartered bank subsidiary, providing a full range of financial services including commercial banking, mortgage lending, investments, and insurance services [2]. - Founded in 1864 as First National Bank of Ionia, the company has a branch network across Michigan's Lower Peninsula [2]. Dividend Information - The declared dividend is payable on February 13, 2026, to shareholders of record on February 3, 2026 [1]. - The increase in the dividend is attributed to the company's consistent long-term performance, robust capital position, and optimistic outlook for the future [2].