Core Viewpoint - Independent Bank (IBCP) reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, but down from $0.88 per share a year ago, indicating a mixed performance in earnings despite a positive surprise [1][2] Group 1: Earnings Performance - The quarterly earnings surprise was +3.85%, with the previous quarter also showing a positive surprise of +5.71% [1] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.82, with expected revenues of $57.8 million, and for the current fiscal year, the estimate is $3.15 on revenues of $227.8 million [7] Group 2: Revenue Performance - Independent Bank reported revenues of $55.94 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.64% and down from $56.52 million year-over-year [2] - The company has topped consensus revenue estimates only once over the last four quarters [2] Group 3: Stock Performance and Outlook - Independent Bank shares have declined approximately 1.8% since the beginning of the year, contrasting with the S&P 500's gain of 8.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] - The outlook for the industry, particularly the Banks - Midwest sector, is favorable, ranking in the top 29% of over 250 Zacks industries, suggesting potential for outperformance [8]

[Second Quarter 2025 Highlights and Executive Commentary](index=1&type=section&id=Second%20Quarter%202025%20Highlights%20and%20Executive%20Commentary) This section highlights Q2 2025 financial results, CEO commentary, and key strategic achievements [Summary of Key Financial Results](index=1&type=section&id=Summary%20of%20Key%20Financial%20Results) Independent Bank Corporation reported a decrease in net income and diluted earnings per share for the second quarter of 2025 compared to the prior-year period | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :------------------ | :------------------- | :------------------- | | Net Income | $16.9 | $18.5 | | Diluted EPS | $0.81 | $0.88 | [CEO Commentary and Strategic Overview](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Overview) The CEO highlighted positive trends including annualized loan growth of 9.0%, net interest income growth, and a nine basis point margin expansion. The company maintained strong credit metrics and improved operational scale through strategic investments, driving growth in tangible common equity per share and healthy performance returns - Overall loans increased by **9.0% (annualized)**, while core deposits were down by **1.4% (annualized)** due to seasonality[2](index=2&type=chunk) - Generated net interest income growth on both a linked quarter and year-over-year quarterly basis, producing **nine basis points of margin expansion** from the prior quarter[2](index=2&type=chunk) - Tangible common equity per share of common stock grew by **10.8%** compared to the prior year quarter[2](index=2&type=chunk) Q2 2025 Performance Returns | Metric | Value | | :------------------------- | :------ | | Return on Average Assets | 1.27% | | Return on Average Equity | 14.66% | - Credit metrics remain strong with low levels of watch credits, **16 basis points of non-performing assets to total assets**, and **0.02% net charge-offs to average loans (annualized)**[2](index=2&type=chunk) [Specific Second Quarter 2025 Achievements](index=1&type=section&id=Specific%20Second%20Quarter%202025%20Achievements) The company achieved a $0.9 million increase in net interest income over Q1 2025, a $0.36 increase in tangible common equity per share, nine basis points of net interest margin expansion, $91.7 million in net loan growth, and paid a $0.26 per share common stock dividend - Net interest income increased by **$0.9 million (2.1%)** over the first quarter of 2025[3](index=3&type=chunk) - Tangible common equity per share of common stock increased by **$0.36 (6.9% annualized)** from March 31, 2025[3](index=3&type=chunk) - Net interest margin expanded by **nine basis points** compared to March 31, 2025[3](index=3&type=chunk) - Net growth in loans of **$91.7 million (9.0% annualized)** from March 31, 2025[3](index=3&type=chunk) - A dividend of **26 cents per share** on common stock was paid on May 15, 2025[3](index=3&type=chunk) [Operating Results Analysis](index=2&type=section&id=Operating%20Results%20Analysis) This section analyzes Q2 2025 operating results, covering net interest income, non-interest income, expenses, and income tax [Net Interest Income and Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased year-over-year and linked quarter, driven by an increase in average interest-earning assets and a higher net interest margin. The net interest margin expanded to 3.58% in Q2 2025 Net Interest Income and Margin Trends | Metric | Q2 2025 ($ millions) | Q1 2025 ($ millions) | Q2 2024 ($ millions) | | :----------------------------------------- | :------------------- | :------------------- | :------------------- | | Net Interest Income | $44.6 | $43.7 | $41.3 | | YoY Change (Q2 2025 vs Q2 2024) | +$3.3 (7.9%) | | | | QoQ Change (Q2 2025 vs Q1 2025) | +$0.9 (2.1%) | | | | Net Interest Margin (tax equivalent) | 3.58% | 3.49% | 3.40% | | Average Interest-Earning Assets | $5.04 billion | $5.08 billion | $4.89 billion | [Non-Interest Income](index=2&type=section&id=Non-Interest%20Income) Total non-interest income decreased significantly in Q2 2025 compared to the prior year, primarily due to the absence of a gain on equity securities recorded in Q2 2024 and variances in mortgage banking related revenues Total Non-Interest Income | Period | Amount ($ millions) | | :------ | :------------------ | | Q2 2025 | $11.3 | | Q2 2024 | $15.2 | - The change was primarily due to a **$2.7 million gain on equity securities at fair value** in the prior year quarter, which was not present in Q2 2025[5](index=5&type=chunk)[8](index=8&type=chunk) [Net Gains on Mortgage Loans](index=2&type=section&id=Net%20Gains%20on%20Mortgage%20Loans) Net gains on mortgage loans increased in Q2 2025 compared to Q2 2024, driven by both an increase in gain on sale margin and higher volume of mortgage loans sold Net Gains on Mortgage Loans | Period | Amount ($ millions) | | :------ | :------------------ | | Q2 2025 | ~$1.6 | | Q2 2024 | ~$1.3 | [Mortgage Loan Servicing, Net](index=2&type=section&id=Mortgage%20Loan%20Servicing%2C%20Net) Mortgage loan servicing, net, saw a significant decrease in income in Q2 2025 compared to Q2 2024, primarily due to changes in the fair value of capitalized mortgage loan servicing rights (MSRs) and a decline in servicing revenue following the sale of approximately $931 million of MSRs in January 2025 Mortgage Loan Servicing, Net Income | Period | Amount ($ millions) | | :------ | :------------------ | | Q2 2025 | $0.5 | | Q2 2024 | $2.1 | - The variance is primarily due to changes in the fair value of capitalized MSRs and a decline in servicing revenue attributed to the **sale of approximately $931 million of MSRs** on January 31, 2025[7](index=7&type=chunk) Mortgage Loan Servicing, Net Activity (in thousands) | Metric | Three months ended 6/30/2025 ($ thousands) | Three months ended 6/30/2024 ($ thousands) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | | Revenue, net | $1,649 | $2,214 | | Fair value change due to price | $(219) | $911 | | Fair value change due to pay-downs | $(862) | $(1,034) | | Loss on sale of originated servicing rights | $(78) | — | | Total | $490 | $2,091 | [Non-Interest Expense](index=3&type=section&id=Non-Interest%20Expense) Total non-interest expenses remained relatively stable, with a slight increase in Q2 2025 compared to the prior-year period Total Non-Interest Expense | Period | Amount ($ millions) | | :------ | :------------------ | | Q2 2025 | $33.8 | | Q2 2024 | $33.3 | [Income Tax Expense](index=3&type=section&id=Income%20Tax%20Expense) Income tax expense decreased in Q2 2025 compared to Q2 2024, reflecting changes in pre-tax earnings Income Tax Expense | Period | Amount ($ millions) | | :------ | :------------------ | | Q2 2025 | $3.8 | | Q2 2024 | $4.6 | [Asset Quality](index=3&type=section&id=Asset%20Quality) The company's asset quality metrics show an increase in non-performing loans and a higher provision for credit losses in Q2 2025 compared to the prior year, while the allowance for credit losses remained stable as a percentage of total portfolio loans Non-Performing Loans by Type (in thousands) | Loan Type | 6/30/2025 ($ thousands) | 12/31/2024 ($ thousands) | 6/30/2024 ($ thousands) | | :------------------------ | :---------------------- | :----------------------- | :---------------------- | | Commercial | $— | $54 | $312 | | Mortgage | $9,620 | $7,005 | $4,819 | | Installment | $833 | $733 | $843 | | Total Non-Performing Loans | $8,204 | $6,002 | $4,485 | Asset Quality Ratios | Ratio | 6/30/2025 | 12/31/2024 | 6/30/2024 | | :---------------------------------------- | :-------- | :--------- | :-------- | | Non-performing loans to total portfolio loans | 0.20% | 0.15% | 0.12% | | Non-performing assets to total assets | 0.16% | 0.13% | 0.10% | | Allowance for credit losses to total non-performing loans | 745.45% | 989.32% | 1253.98% | Credit Loss Metrics | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :------------------------------ | :------------------- | :------------------- | | Provision for credit losses | $1.50 | $0.02 | | Loan net charge-offs | $0.37 | $0.09 | | Allowance for credit losses (period end) | $61.2 (1.47% of total loans) | N/A (1.47% of total loans at 12/31/2024) | [Balance Sheet, Capital and Liquidity](index=3&type=section&id=Balance%20Sheet%2C%20Capital%20and%20Liquidity) Total assets increased to $5.42 billion at June 30, 2025, driven by growth in loans. Deposits saw a slight increase, primarily from reciprocal and brokered time deposits offsetting decreases in other deposit categories. Shareholders' equity and tangible common equity also increased, mainly due to earnings retention. The bank remains significantly above 'well capitalized' regulatory minimums and maintains substantial liquidity Key Balance Sheet Items (in millions) | Metric | 6/30/2025 ($ millions) | 12/31/2024 ($ millions) | | :-------------------------- | :--------------------- | :---------------------- | | Total Assets | $5,418.5 | $5,338.1 | | Loans (excluding HFS) | $4,164.4 | $4,038.8 | | Deposits | $4,659.4 | $4,654.1 | | Cash and Cash Equivalents | $146.2 | $119.9 | | Securities Available for Sale | $509.5 | $559.2 | | Total Shareholders' Equity | $469.3 | $454.7 | | Tangible Common Equity | $439.7 | $424.9 | - The increase in deposits is primarily due to increases in reciprocal and brokered time deposits, partially offset by decreases in non-interest bearing, savings, interest-bearing checking, and time deposits[14](index=14&type=chunk) Regulatory Capital Ratios | Regulatory Capital Ratios | 6/30/2025 | 12/31/2024 | Well Capitalized Minimum | | :---------------------------------- | :-------- | :--------- | :----------------------- | | Tier 1 capital to average total assets | 9.79% | 9.58% | 5.00% | | Common equity tier 1 capital to risk-weighted assets | 11.90% | 11.74% | 6.50% | | Tier 1 capital to risk-weighted assets | 11.90% | 11.74% | 8.00% | | Total capital to risk-weighted assets | 13.15% | 12.99% | 10.00% | - The company had unused credit lines with the FHLB and FRB of approximately **$1.02 billion** and **$484.6 million**, respectively, at June 30, 2025[16](index=16&type=chunk) - Approximately **$486.0 million in fair value of unpledged securities AFS and HTM** were available, which could be pledged for an estimated additional borrowing capacity of **$455.9 million**[16](index=16&type=chunk) [Share Repurchase Plan](index=5&type=section&id=Share%20Repurchase%20Plan) The Board of Directors authorized a 2025 share repurchase plan to buy back up to 1,100,000 shares (approximately 5% of outstanding common stock) through December 31, 2025. During the first half of 2025, 252,276 shares were repurchased for an aggregate price of $7.36 million - The 2025 share repurchase plan authorizes the company to purchase up to **1,100,000 shares**, or approximately **5% of its then outstanding common stock**, through December 31, 2025[17](index=17&type=chunk) - During the six months ended June 30, 2025, **252,276 shares of common stock** were repurchased for an aggregate purchase price of **$7.36 million**[17](index=17&type=chunk) [Company Information and Forward-Looking Statements](index=5&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) This section details the earnings call, company overview, and forward-looking statements disclaimer [Earnings Conference Call Details](index=5&type=section&id=Earnings%20Conference%20Call%20Details) Independent Bank Corporation scheduled an earnings conference call for investors and analysts on Thursday, July 24, 2025, at 11:00 am ET to review quarterly results, with dial-in and webcast options available - A conference call for investors and analysts was scheduled for **Thursday, July 24, 2025, at 11:00 am ET**[18](index=18&type=chunk) - Participants can join via dial-in (1-833-470-1428, Access Code 493553) or an audio webcast (https://events.q4inc.com/attendee/394984135)[18](index=18&type=chunk) - A replay of the call is accessible by dialing 1-866-813-9403 (Access Code 372693) through **July 31, 2025**[19](index=19&type=chunk) [About Independent Bank Corporation](index=5&type=section&id=About%20Independent%20Bank%20Corporation) Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with approximately $5.4 billion in total assets. Founded in 1864, it operates a branch network across Michigan's Lower Peninsula, offering a full range of financial services including commercial, mortgage, consumer banking, investments, and insurance - Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately **$5.4 billion**[20](index=20&type=chunk) - Founded as First National Bank of Ionia in **1864**, it operates a branch network across Michigan's Lower Peninsula through its subsidiary, Independent Bank[20](index=20&type=chunk) - The subsidiary provides a full range of financial services, including commercial banking, mortgage lending, consumer banking, investments, and insurance[20](index=20&type=chunk) [Forward-Looking Statements Disclaimer](index=5&type=section&id=Forward-Looking%20Statements%20Disclaimer) The report contains forward-looking statements regarding future revenue, expenses, plans, and prospects, which are subject to inherent risks and uncertainties. Factors such as economic conditions, interest rates, credit quality, regulatory changes, and data security could cause actual results to differ materially. Investors are cautioned not to place undue reliance on these statements, and the company undertakes no obligation to update them - This presentation contains forward-looking statements about anticipated future revenue, expenses, plans, and prospects, which are not historical facts[22](index=22&type=chunk) - These statements involve inherent risks and uncertainties, and important factors such as economic conditions, interest rates, credit quality, regulatory developments, and data security could cause actual results to differ materially[23](index=23&type=chunk)[24](index=24&type=chunk) - Investors should not place undue reliance on forward-looking statements, and the company undertakes no obligation to update them[24](index=24&type=chunk)[25](index=25&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents the consolidated balance sheet and income statement for the reported periods [Consolidated Statements of Financial Condition](index=7&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) The consolidated balance sheet shows an increase in total assets and loans from December 31, 2024, to June 30, 2025. Deposits also slightly increased, while securities available for sale decreased. Shareholders' equity grew during the period Consolidated Statements of Financial Condition (in thousands) | Item | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :----------------------------------------- | :-------------------------- | :------------------------------ | | **Assets:** | | | | Cash and Cash Equivalents | $146,159 | $119,882 | | Securities available for sale | $509,511 | $559,182 | | Total Loans | $4,164,367 | $4,038,825 | | Allowance for credit losses | $(61,157) | $(59,379) | | Net Loans | $4,103,210 | $3,979,446 | | Capitalized mortgage loan servicing rights | $32,053 | $46,796 | | Total Assets | $5,418,519 | $5,338,104 | | **Liabilities:** | | | | Total Deposits | $4,659,359 | $4,654,088 | | Other borrowings | $102,008 | $45,009 | | Total Liabilities | $4,949,269 | $4,883,418 | | **Shareholders' Equity:** | | | | Total Shareholders' Equity | $469,250 | $454,686 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated income statement shows an increase in net interest income for Q2 2025 compared to Q2 2024, but a decrease in net income due to lower non-interest income (primarily from the absence of a gain on equity securities) and a higher provision for credit losses Consolidated Statements of Operations (in thousands, except per share amounts) | Item | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Total Interest Income | $66,878 | $66,338 | $133,022 | $131,464 | | Total Interest Expense | $22,263 | $24,992 | $44,722 | $49,921 | | Net Interest Income | $44,615 | $41,346 | $88,300 | $81,543 | | Provision for credit losses | $1,500 | $19 | $2,221 | $763 | | Total Non-interest Income | $11,325 | $15,172 | $21,749 | $27,733 | | Total Non-interest Expense | $33,762 | $33,333 | $68,024 | $65,526 | | Income Before Income Tax | $20,678 | $23,166 | $39,804 | $42,987 | | Income tax expense | $3,801 | $4,638 | $7,337 | $8,468 | | Net Income | $16,877 | $18,528 | $32,467 | $34,519 | | Diluted Net Income Per Common Share | $0.81 | $0.88 | $1.54 | $1.64 | [Selected Financial Data](index=9&type=section&id=Selected%20Financial%20Data) The selected financial data provides a quarterly overview of key performance indicators, including net interest income, net income, EPS, dividends, and various ratios. It also details average and end-of-period balances for loans, securities, total assets, deposits, and capital metrics, illustrating trends over the past five quarters Quarterly Income Statement Highlights (in thousands, except per share data) | Metric | June 30, 2025 ($ thousands) | March 31, 2025 ($ thousands) | December 31, 2024 ($ thousands) | September 30, 2024 ($ thousands) | June 30, 2024 ($ thousands) | | :---------------------- | :-------------------------- | :--------------------------- | :------------------------------ | :------------------------------- | :-------------------------- | | Net interest income | $44,615 | $43,685 | $42,851 | $41,854 | $41,346 | | Provision for credit losses | $1,500 | $721 | $2,217 | $1,488 | $19 | | Non-interest income | $11,325 | $10,424 | $19,121 | $9,508 | $15,172 | | Non-interest expense | $33,762 | $34,262 | $36,987 | $32,583 | $33,333 | | Net income | $16,877 | $15,590 | $18,461 | $13,810 | $18,528 | | Diluted earnings per share | $0.81 | $0.74 | $0.87 | $0.65 | $0.88 | | Cash dividend per share | $0.26 | $0.26 | $0.24 | $0.24 | $0.24 | Performance Ratios | Ratio | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Return on average assets | 1.27% | 1.18% | 1.39% | 1.04% | 1.44% | | Return on average equity | 14.66% | 13.71% | 16.31% | 12.54% | 17.98% | | Efficiency ratio | 59.67% | 62.20% | 59.09% | 62.82% | 61.49% | | Net interest income (FTE) | 3.58% | 3.49% | 3.45% | 3.37% | 3.40% | End of Period Selected Balances (in thousands) | Item | June 30, 2025 ($ thousands) | March 31, 2025 ($ thousands) | December 31, 2024 ($ thousands) | September 30, 2024 ($ thousands) | June 30, 2024 ($ thousands) | | :------------------------ | :-------------------------- | :--------------------------- | :------------------------------ | :------------------------------- | :-------------------------- | | Loans | $4,164,367 | $4,072,691 | $4,038,825 | $3,942,287 | $3,851,889 | | Total assets | $5,418,519 | $5,328,428 | $5,338,104 | $5,259,268 | $5,277,500 | | Deposits | $4,659,359 | $4,633,931 | $4,654,088 | $4,626,875 | $4,614,328 | | Shareholders' equity | $469,250 | $467,277 | $454,686 | $452,369 | $430,459 | | Tangible common equity per share of common stock | $21.23 | $20.87 | $20.33 | $20.22 | $19.16 | [Reconciliation of Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP financial measures, such as FTE net interest margin and tangible common equity [Net Interest Margin, Fully Taxable Equivalent ("FTE")](index=11&type=section&id=Net%20Interest%20Margin%2C%20Fully%20Taxable%20Equivalent%20%28%22FTE%22%29) The reconciliation adjusts GAAP net interest income to a fully taxable equivalent basis, showing an FTE net interest margin of 3.58% for Q2 2025, an increase from 3.40% in Q2 2024 Net Interest Margin, Fully Taxable Equivalent (in thousands) | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Net interest income | $44,615 | $41,346 | $88,300 | $81,543 | | Add: taxable equivalent adjustment | $444 | $175 | $896 | $355 | | Net interest income - taxable equivalent | $45,059 | $41,521 | $89,196 | $81,898 | | Net interest margin (GAAP) | 3.55% | 3.39% | 3.50% | 3.33% | | Net interest margin (FTE) | 3.58% | 3.40% | 3.54% | 3.35% | [Tangible Common Equity Ratio](index=12&type=section&id=Tangible%20Common%20Equity%20Ratio) The tangible common equity ratio, a non-GAAP measure, removes the effect of goodwill and other intangible assets from capital and total assets to provide a clearer view of capital quality. At June 30, 2025, the tangible common equity ratio was 8.16%, showing an increase from 8.00% at December 31, 2024 Tangible Common Equity Reconciliation (in thousands) | Item | June 30, 2025 ($ thousands) | March 31, 2025 ($ thousands) | December 31, 2024 ($ thousands) | September 30, 2024 ($ thousands) | June 30, 2024 ($ thousands) | | :----------------------------------------- | :-------------------------- | :--------------------------- | :------------------------------ | :------------------------------- | :-------------------------- | | Common shareholders' equity | $469,250 | $467,277 | $454,686 | $452,369 | $430,459 | | Less: Goodwill | $28,300 | $28,300 | $28,300 | $28,300 | $28,300 | | Less: Other intangibles | $1,244 | $1,366 | $1,488 | $1,617 | $1,746 | | Tangible common equity | $439,706 | $437,611 | $424,898 | $422,452 | $400,413 | | Total assets | $5,418,519 | $5,328,428 | $5,338,104 | $5,259,268 | $5,277,500 | | Less: Goodwill | $28,300 | $28,300 | $28,300 | $28,300 | $28,300 | | Less: Other intangibles | $1,244 | $1,366 | $1,488 | $1,617 | $1,746 | | Tangible assets | $5,388,975 | $5,298,762 | $5,308,316 | $5,229,351 | $5,247,454 | | Tangible common equity ratio | 8.16% | 8.26% | 8.00% | 8.08% | 7.63% | | Tangible common equity per share of common stock | $21.23 | $20.87 | $20.33 | $20.22 | $19.16 |

Core Points - Independent Bank Corporation reported a net income of $16.9 million, or $0.81 per diluted share, for the second quarter of 2025, a decrease from $18.5 million, or $0.88 per diluted share, in the same period last year [1][2][30] - The company experienced a 9.0% annualized increase in loans, while core deposits decreased by 1.4% due to seasonality [2][4] - Net interest income rose to $44.6 million, marking a 7.9% increase year-over-year and a 2.1% increase from the previous quarter [3][30] - The net interest margin improved to 3.58%, up from 3.40% in the prior year [3][32] - Non-interest income decreased to $11.3 million from $15.2 million in the prior year, primarily due to a lack of gains on equity securities [6][30] - The provision for credit losses was $1.5 million, compared to $0.02 million in the same quarter last year [13][30] - Total assets increased to $5.42 billion, with loans at $4.16 billion and deposits at $4.66 billion [14][15][30] - The company maintained strong credit metrics, with non-performing assets at 0.16% of total assets and a low net charge-off rate of 0.02% [11][13] - Shareholders' equity rose to $469.3 million, representing 8.66% of total assets, with tangible common equity at $21.23 per share [16][30] - The company authorized a share repurchase plan for up to 1,100,000 shares, with 252,276 shares repurchased for $7.36 million during the first half of 2025 [18][30] Financial Performance - Net interest income for the second quarter of 2025 was $44.6 million, an increase of $3.3 million from the previous year [3][30] - Non-interest expenses totaled $33.8 million, slightly up from $33.3 million in the prior year [9][30] - The company recorded a net income of $16.9 million for the quarter, reflecting a decrease from the previous year's $18.5 million [1][30] - The efficiency ratio improved to 59.67% from 62.20% in the previous quarter [32] Asset Quality - Total non-performing loans amounted to $8.2 million, with a ratio of non-performing loans to total portfolio loans at 0.20% [11][30] - The allowance for credit losses was 1.47% of total loans, indicating strong coverage for potential losses [13][30] Capital and Liquidity - The company reported total shareholders' equity of $469.3 million, with a tangible common equity ratio of 8.16% [16][30] - Independent Bank remains significantly above "well capitalized" standards for regulatory purposes [17][30] - The company had unused credit lines of approximately $1.02 billion with the FHLB and $484.6 million with the FRB [17][30]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Independent Bank due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Independent Bank is expected to report quarterly earnings of $0.78 per share, reflecting an 11.4% decrease year-over-year [3]. - Projected revenues are $56.3 million, down 0.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Independent Bank is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.43%, suggesting a bearish sentiment among analysts [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with positive readings being more reliable [6][8]. - A positive Earnings ESP combined with a Zacks Rank of 1, 2, or 3 has shown a nearly 70% success rate in predicting earnings beats [9]. Historical Performance - In the last reported quarter, Independent Bank exceeded the expected earnings of $0.70 per share by delivering $0.74, resulting in a surprise of +5.71% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - Independent Bank does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].

Group 1 - Independent Bank Corporation (NASDAQ: IBCP) will release its 2025 second quarter results on July 24, 2025, at approximately 8:00 am ET [1] - A conference call for investors and analysts will be held on the same day at 11:00 am ET, featuring President and CEO Brad Kessel, CFO Gavin Mohr, and EVP Commercial Banking Joel Rahn [2] - The conference call can be accessed via phone or an audio webcast, with a playback option available until July 31, 2025 [3] Group 2 - Independent Bank Corporation is a Michigan-based bank holding company with total assets of approximately $5.3 billion [4] - The company operates a branch network across Michigan's Lower Peninsula and offers a full range of financial services, including commercial banking, mortgage lending, investments, insurance, and title services [4] - Independent Bank Corporation emphasizes exceptional personal service and value to its customers, stockholders, and communities [4]

Core Viewpoint - Independent Bank (IBCP) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade for Independent Bank indicates a positive outlook on its earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - For the fiscal year ending December 2025, Independent Bank is expected to earn $3.14 per share, reflecting a slight decrease of -0.6% from the previous year, but the Zacks Consensus Estimate has increased by 1.2% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of Independent Bank to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Financial Performance - Net income for the first quarter of 2025 was $15.6 million, a decrease from $16.0 million in the same period of 2024, primarily due to a $2.8 million unfavorable change in the fair value of capitalized mortgage loan servicing rights[193] - Net interest income increased by $3.5 million, or 8.7%, to $43.7 million in the first quarter of 2025, driven by a $167.9 million increase in average interest-earning assets[196] - The net interest margin for the first quarter of 2025 was 3.49%, up from 3.30% in the same period of 2024, reflecting a 25 basis point decrease in the cost of funds[203] - Non-interest income totaled $10.4 million in the first quarter of 2025, down from $12.6 million in the first quarter of 2024[207] - The provision for credit losses was $0.72 million for the first quarter of 2025, a decrease from $1.87 million in the same period of 2024, reflecting improved credit quality[205] - Non-interest expense increased by $2.1 million to $34.3 million in Q1 2025 compared to Q1 2024[222] - Income tax expense was $3.5 million in Q1 2025, down from $3.8 million in Q1 2024, reflecting changes in pretax income[229] Loan and Asset Management - Mortgage loans originated increased to $107.8 million in the first quarter of 2025, compared to $94.0 million in the same period of 2024, primarily due to an increase in construction loans[210] - Average non-accrual loans increased to $6.6 million in the first quarter of 2025, compared to $3.9 million in the first quarter of 2024[199] - The total assets of the company as of March 31, 2025, were $5.38 billion, an increase from $5.20 billion as of March 31, 2024[201] - Total loans increased to $4.07 billion as of March 31, 2025, from $4.04 billion at December 31, 2024, with residential first mortgages at $1.30 billion[244] - Non-performing loans rose to $7.1 million, representing 0.17% of portfolio loans, up from 0.15% at year-end 2024[246] - The allowance for credit losses (ACL) on loans increased to $60.0 million at March 31, 2025, from $59.4 million at December 31, 2024, maintaining a ratio of 1.47% of total portfolio loans[251] - Total non-performing assets were $7.5 million as of March 31, 2025, compared to $6.9 million at December 31, 2024[246] Capital and Equity - The average shareholders' equity to average assets ratio decreased to 13.71% in the first quarter of 2025 from 15.95% in the same period of 2024[194] - Common shareholders' equity increased to $467.3 million at March 31, 2025, from $454.7 million at December 31, 2024, primarily due to earnings retention[272] - The company's tangible common equity (TCE) ratio improved to 8.26% at March 31, 2025, from 8.00% at December 31, 2024[272] Deposits and Funding - Deposits totaled $4.63 billion at March 31, 2025, a decrease of $20.2 million from December 31, 2024, due to declines in non-interest bearing and brokered time deposits[234] - Uninsured deposits totaled $1.05 billion, accounting for 23.0% of total deposits as of March 31, 2025, slightly down from 23.3% at year-end 2024[256] - The balance of the top 100 largest depositors was $1.07 billion, representing 23.5% of total deposits, excluding brokered time, as of March 31, 2025[256] - Time deposits maturing within the next 12 months totaled $776.7 million as of March 31, 2025, with a historical trend of renewal by customers[262] - As of March 31, 2025, the company utilized approximately $1.04 billion in wholesale funding, representing 22.1% of total funding[258] Securities and Investments - Securities available for sale decreased in fair value to $529.7 million at March 31, 2025, from $559.2 million at December 31, 2024[238] - Securities held to maturity reported a carrying value of $336.9 million at March 31, 2025, with an unrealized loss of $15.4 million[239] - Securities available for sale generated proceeds of $22.5 million in Q1 2025, down from $37.3 million in Q1 2024, resulting in net losses of $330,000 compared to $269,000 in the prior year[242] Risk Management and Compliance - The company has developed contingency funding plans to address potential liquidity needs arising from adverse changes in financial metrics[264] - The aggregate amount accrued for probable litigation losses is not material, with the maximum estimated additional losses considered to be insignificant[285] - There have been no material changes to critical accounting policies as disclosed in the Annual Report for the year ended December 31, 2024[292] - Disclosure controls and procedures were evaluated as effective as of March 31, 2025[298] - No changes in internal control over financial reporting that materially affected the reporting were noted during the quarter ended March 31, 2025[299] - There have been no material changes to the risk factors disclosed in the Annual Report for the year ended December 31, 2024[301] Other Financial Metrics - The company reported net recoveries of $0.11 million on unpaid interest during the first quarter of 2025, down from $0.29 million in the same period of 2024[199] - Net gains on mortgage loans increased to $2.3 million in Q1 2025 from $1.4 million in Q1 2024, primarily due to an increase in Loan Sales Margin[213] - The Loan Sales Margin, excluding fair value adjustments, rose to 1.91% in Q1 2025 from 1.21% in Q1 2024, attributed to higher primary-to-secondary market pricing spreads[214] - Mortgage loan servicing, net, reported a loss of $0.6 million in Q1 2025 compared to a profit of $2.7 million in Q1 2024, mainly due to changes in fair value of capitalized mortgage loan servicing rights[216] - The balance of capitalized mortgage loan servicing rights decreased to $32.2 million at March 31, 2025, down from $43.6 million at December 31, 2024, following the sale of $931.6 million in mortgage servicing rights[218] - The company entered into interest rate swaps with an aggregate notional amount of $67.4 million in Q1 2025, compared to $29.5 million in Q1 2024, generating fee income of $0.75 million and $0.35 million respectively[259] - The ACL related to specific loans increased by $1.4 million due to one new commercial loan and an increase in an existing reserve during Q1 2025[252]

Independent Bank Corporation (NASDAQ:IBCP) Q1 2025 Earnings Conference Call April 24, 2025 11:00 AM ET Company Participants Brad Kessel - President & Chief Executive Officer Joel Rahn - Executive President, Commercial Banking Gavin Mohr - Executive Vice President & Chief Financial Officer Conference Call Participants Brendan Nosal - Hovde Group Peter Winter - D.A. Davidson Damon DelMonte - KBW Nathan Race - Piper Sandler Operator Hello everyone and welcome to the Independent Bank Corporation Reports 2025 Fi ...

Financial Performance - Net income was $15.6 million, or $0.74 per diluted share[9] - Net interest income increased by $3.5 million year-over-year and $0.8 million compared to the previous quarter[9] - ROAA was 1.18% and ROAE was 13.71%[9] Balance Sheet & Capital - Tangible book value per share increased 13.2% year-over-year and 2.7% from the end of the prior quarter[9] - Total loans increased 3.4% annualized[9] - Total core deposits (excluding brokered time deposits) grew by $9.1 million[9] - The loan-to-deposit ratio is 88%[9] Loan Portfolio - Commercial loans increased $54.8 million in 1Q'25, with an average new origination yield of 6.97%[20] - Mortgage loans decreased $3.9 million, with an average new origination yield of 7.02%[20] - Installment loans decreased $17.0 million, with an average new origination yield of 7.52%[20] Deposits - Core deposits represent 84.6% of total deposits, amounting to $3.92 billion[11, 12] - Total deposits decreased by $20.2 million since December 31, 2024[12] Net Interest Margin - Net interest margin was 3.49% in 1Q'25, compared to 3.45% in the linked quarter[9] - Net interest income was $43.7 million in 1Q'25, compared to $42.9 million in the prior year quarter[38, 42] Non-Interest Income & Expenses - Non-interest income totaled $10.4 million in 1Q'25[51, 63] - Non-interest expense was $34.3 million in 1Q'25[63]

Core Insights - Independent Bank (IBCP) reported revenue of $54.11 million for Q1 2025, a year-over-year increase of 2.6% [1] - The earnings per share (EPS) for the same period was $0.74, down from $0.76 a year ago, but exceeded the consensus estimate of $0.70 by 5.71% [1] - The reported revenue fell short of the Zacks Consensus Estimate of $54.7 million by 1.08% [1] Financial Performance Metrics - Net Interest Margin (GAAP) stood at 3.5%, matching the average estimate from two analysts [4] - The Efficiency Ratio was reported at 62.2%, slightly better than the average estimate of 63% [4] - Total non-interest income was $10.42 million, below the average estimate of $11.36 million [4] - Net Interest Income was $43.69 million, exceeding the average estimate of $43.23 million [4] Stock Performance - Shares of Independent Bank have returned -1% over the past month, outperforming the Zacks S&P 500 composite, which declined by 5.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]