Core Viewpoint - Independent Bank Corporation has promoted Mike Stodolak to Executive Vice President of Retail Banking, succeeding Russ Daniel, who will retire after 27 years of service [1][3][4]. Group 1: Leadership Changes - Mike Stodolak has over 38 years of experience in the financial services industry, with 25 years at Independent Bank, where he has led the retail network and Consumer Lending program [2]. - Russ Daniel has held various leadership roles at Independent Bank, providing strategic direction across multiple areas including Mortgage, Bank Operations, and Wealth Management [3]. Group 2: Company Overview - Independent Bank Corporation, a Michigan-based bank holding company, has total assets of approximately $5.5 billion and operates through one state-chartered bank subsidiary [5]. - The bank offers a full range of financial services, including commercial banking, mortgage lending, investments, and title services, and is committed to exceptional personal service [5].

Core Viewpoint - Independent Bank Corporation is set to release its fourth quarter results for 2025 on January 22, 2026, 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]. Group 1: Company Overview - Independent Bank Corporation is a Michigan-based bank holding company with total assets of approximately $5.5 billion [3]. - The company operates a branch network across Michigan's Lower Peninsula through its state-chartered bank subsidiary, Independent Bank, which offers a full range of financial services including commercial banking, mortgage lending, investments, insurance, and title services [3]. - Founded in 1864 as First National Bank of Ionia, the company is committed to providing exceptional personal service and value to its customers, stockholders, and the communities it serves [3]. Group 2: Upcoming Events - The fourth quarter results will be available on the company's website in the "News" section of the "Investor Relations" area [1]. - Investors and analysts can access the conference call by registering through a provided link, which will give them a phone number and access code [2]. - A replay of the conference call webcast will be available until January 22, 2027 [2].

Core Viewpoint - Independent Bank Corporation has appointed Michael G. Wooldridge to its Board of Directors, bringing extensive experience in corporate governance, securities, and mergers & acquisitions to the organization [1][3]. Group 1: Appointment Details - Michael G. Wooldridge was previously a partner at the Varnum law firm, focusing on corporate governance, securities, and mergers & acquisitions [1]. - Wooldridge has led numerous public equity and debt offerings for financial services and manufacturing companies, and he regularly advises on executive compensation and corporate structure [1]. - His educational background includes a J.D. from Cornell University Law School and a B.A. from Alma College [3]. Group 2: Company Overview - Independent Bank Corporation is a Michigan-based bank holding company with total assets of approximately $5.5 billion [4]. - The company operates a branch network across Michigan's Lower Peninsula through its state-chartered bank subsidiary, Independent Bank, which offers a full range of financial services [4]. - Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders, and the communities it serves [4]. Group 3: Leadership Comments - William B. Kessel, President and CEO of Independent Bank Corporation, expressed excitement about Wooldridge's appointment, highlighting his governance and M&A experience [3]. - Wooldridge acknowledged the bank's long history of providing value to shareholders and supporting local communities [3]. Group 4: Honors and Recognition - Wooldridge has received several honors, including being listed in Best Lawyers in America for Corporate Law since 2005 and Mergers & Acquisitions Law since 2024 [2]. - He was recognized as a BTI Client Service All Star in 2012 and has been included in Grand Rapids Magazine's Top Lawyers for Corporate Law since 2019 [2]. - Wooldridge was inducted into the West Michigan Dealmaker Hall of Fame in 2024 [2].

Core Viewpoint - Independent Bank Corporation has authorized a share repurchase plan for 2026, allowing the buyback of up to 1,100,000 shares, which is approximately 5% of its common stock [1]. Group 1: Share Repurchase Plan - The 2026 share repurchase plan is set to last through December 31, 2026, and will primarily be executed through open market transactions, although other methods may be considered [2]. - The timing and amount of share repurchases will depend on various factors, including securities law restrictions, trading price, regulatory requirements, alternative capital uses, and the company's financial performance [2]. - The company has no obligation to repurchase a specific amount of stock, and the plan can be modified or suspended at its discretion [2]. Group 2: Previous Share Repurchase Activity - The 2025 share repurchase plan will expire on December 31, 2025, with 407,113 shares repurchased at an aggregate cost of $12.4 million as of December 16, 2025 [3]. Group 3: Company Overview - Independent Bank Corporation, a Michigan-based bank holding company, has total assets of approximately $5.5 billion and operates a branch network across Michigan's Lower Peninsula [4]. - The company provides a full range of financial services, including commercial banking, mortgage lending, investments, insurance, and title services [4].

Core Viewpoint - Independent Bank is positioned as a more favorable investment compared to Peoples Bancorp based on various financial metrics and analyst recommendations [11] Profitability - Independent Bank has a net margin of 21.25%, return on equity of 14.76%, and return on assets of 1.28% - Peoples Bancorp has a net margin of 16.57%, return on equity of 9.45%, and return on assets of 1.15% [2] Institutional and Insider Ownership - 79.4% of Independent Bank shares are owned by institutional investors, while 60.7% of Peoples Bancorp shares are owned by institutional investors - Company insiders own 5.7% of Independent Bank shares compared to 3.4% for Peoples Bancorp [3] Valuation and Earnings - Independent Bank's gross revenue is $222.04 million with a price/sales ratio of 2.93, net income of $66.79 million, earnings per share (EPS) of $3.26, and a price/earnings (P/E) ratio of 9.65 - Peoples Bancorp has gross revenue of $447.86 million with a price/sales ratio of 2.34, net income of $117.21 million, EPS of $2.86, and a P/E ratio of 10.28 - Independent Bank is trading at a lower P/E ratio, indicating it is more affordable [5][6] Analyst Recommendations - Independent Bank has a consensus target price of $36.00, suggesting a potential upside of 14.43%, while Peoples Bancorp has a target price of $33.13 with a potential upside of 12.63% - Analysts rate Independent Bank more favorably due to its higher potential upside [8] Dividends - Independent Bank pays an annual dividend of $1.04 per share with a dividend yield of 3.3%, distributing 31.9% of its earnings as dividends - Peoples Bancorp pays an annual dividend of $1.64 per share with a dividend yield of 5.6%, distributing 57.3% of its earnings as dividends - Both companies have a history of increasing dividends, with Independent Bank increasing for 11 consecutive years and Peoples Bancorp for 10 consecutive years [9] Volatility & Risk - Independent Bank has a beta of 0.86, indicating it is 14% less volatile than the S&P 500 - Peoples Bancorp has a beta of 0.7, indicating it is 30% less volatile than the S&P 500 [10]

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 ...