Financial Performance - Net income for Q2 2023 was $148 million, or $070 per diluted share, compared to $130 million, or $061 per diluted share, in Q2 2022[11] - Pre-tax, pre-provision income was $215 million[11] - Net interest margin was stable at 326%[11] - Non-interest income totaled $154 million in 2Q'23[56] Balance Sheet & Loan Portfolio - Total loans increased 14% annualized[11] - Non-performing assets to total assets stood at 009%[11] - The loan-to-deposit ratio was 81%[11] - Total available sources of liquidity reached $22053 million[13] Deposits - Core deposits accounted for 848% of total deposits[15] - Total deposits increased by $1086 million (50% annualized) since December 31, 2022[16] - Uninsured deposits represented approximately 217% of total deposits, excluding brokered time deposits[13] Capital & Share Repurchase - The company repurchased 200,000 shares below tangible book value (TBV)[11, 56] - TCE (Tangible Common Equity) ratio increased 15 basis points from the prior quarter[11]

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2023 Commission file number 0-7818 INDEPENDENT BANK CORPORATION (Exact name of registrant as specified in its charter) Michigan 38-2032782 (State or jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number) 4200 East Beltline, Grand Rapids, Michigan 49525 (Address of principal executive ...

Financial Data and Key Metrics Changes - Independent Bank Corporation reported a net income of $14.8 million or $0.70 per diluted share for Q2 2023, an increase from $13 million or $0.61 per diluted share in the prior year period, driven by increases in net interest income and non-interest income, along with a decrease in non-interest expenses [2][54] - The annualized return on average assets and return on average equity were 1.18% and 16.29%, respectively, compared to 1.10% and 15.68% in Q2 2022 [54] - Total deposits at June 30 were $4.49 billion, down slightly from $4.54 billion at March 31, 2023, but increased by $108.6 million or 5% annualized for the first half of 2023 [23] Business Line Data and Key Metrics Changes - Total loans increased by $121 million in Q2 2023, with commercial lending growing by $66 million, reflecting a 14% annualized growth rate [5][11] - The commercial and industrial (C&I) lending segment represented 65% of the loan portfolio, with manufacturing being the largest concentration at approximately 10% or $152 million [25][57] - Non-interest income totaled $15.4 million in Q2 2023, up from $14.6 million in the year-ago quarter, driven by increased profit margins and fair value adjustments [61][64] Market Data and Key Metrics Changes - The total cost of funds increased by 32 basis points to 1.57%, with a cumulative beta of 29.4% [4] - The loan-to-deposit ratio stood at 80.9%, indicating capacity for continued loan portfolio growth [55] - The provision for credit losses was an expense of $3.3 million or 0.37% annualized, reflecting an increase in specific reserves on one commercial credit [31] Company Strategy and Development Direction - The company aims to rotate earning assets from lower yielding investments into higher yielding loans while investing in its team and leveraging technology [38] - The focus remains on growing the C&I segment and maintaining a diversified loan portfolio, with an emphasis on full banking relationships [57] - The company is positioned to manage through various economic environments and continue delivering strong results for shareholders [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic conditions, noting a healthy commercial pipeline and attractive lending opportunities [3] - The outlook for the remainder of the year includes expectations for continued growth, particularly in the C&I segment [57] - Management highlighted the importance of managing costs and maintaining a strong deposit base amid a changing interest rate environment [38] Other Important Information - The effective income tax rate for Q2 2023 was 18.8%, aligning with forecasts [32] - The company repurchased 200,000 shares at an average price of $16.35, below the tangible book value of $16.45 [32] - The company received recognition in American Banker’s 2023 Annual Ranking of Community Banks and was listed by Forbes as one of the Best-In-State Banks in America [33] Q&A Session Summary Question: Comments on mortgage income and profit margin sustainability - Management indicated that while there is some benefit in the secondary market for low-loan balance mortgages, the target margin remains stable [16] Question: Impact of potential interest rate hikes on deposit mix - Management suggested that the mix shift may level out, but some remixing is still expected [17] Question: Insights on loan pipeline mix and industry concentrations - Management confirmed a diversified loan portfolio with a focus on C&I lending, maintaining a careful watch on industry concentrations [19] Question: Average share price on buyback - The average share price for the buyback was reported as $16.35 [48]

Financial Performance - Net income for the first quarter of 2023 was $13.0 million, down from $18.0 million in the same period of 2022, primarily due to a decrease in non-interest income and an increase in the provision for credit losses [175]. - Net interest income increased by $5.4 million, or 16.5%, to $38.4 million in Q1 2023, driven by a $204.0 million increase in average interest-earning assets [178]. - The net interest margin for Q1 2023 was 3.33%, up from 3.00% in Q1 2022, reflecting a 151 basis point increase in interest income as a percentage of average interest-earning assets [185]. - Non-interest income decreased to $10.6 million in Q1 2023 from $18.9 million in Q1 2022, with significant declines in mortgage loan servicing and net gains on assets [188]. - The provision for credit losses on loans was a credit of $0.8 million in Q1 2023, compared to a credit of $1.6 million in Q1 2022, reflecting changes in the allowance for credit losses [186]. - The provision for credit losses on held-to-maturity securities was an expense of $2.99 million in Q1 2023 due to a loss on a $3.0 million corporate security that defaulted [187]. - Income tax expense for Q1 2023 was $2.9 million, down from $4.1 million in Q1 2022, due to a decrease in pretax income [204]. Asset Quality - Average non-accrual loans decreased to $3.7 million in Q1 2023 from $5.0 million in Q1 2022, indicating improved asset quality [181]. - Non-performing loans totaled $3.89 million at March 31, 2023, slightly up from $3.72 million at December 31, 2022, maintaining a stable non-performing loans ratio of 0.11% [222]. - The Allowance for Credit Losses (ACL) decreased by $1.9 million to $50.6 million at March 31, 2023, from $52.4 million at December 31, 2022, representing 1.44% of total Portfolio Loans [227]. Loan and Deposit Activity - Mortgage loans originated in Q1 2023 totaled $113.0 million, a decrease of 58% from $270.2 million in Q1 2022 [189]. - Mortgage loans sold in Q1 2023 were $106.8 million, down 52% from $221.7 million in Q1 2022 [189]. - Total loans increased to $3.51 billion at March 31, 2023, compared to $3.47 billion at December 31, 2022, with notable increases in residential first mortgages and other loans [220]. - Deposits rose by $165.7 million to $4.54 billion at March 31, 2023, attributed to seasonal cash management needs and increased brokered deposits [208]. - Deposits grew to $4.54 billion at March 31, 2023, from $4.38 billion at December 31, 2022, driven by increases in reciprocal deposits and time deposits [230]. - The average deposit account size increased to $19,630 at March 31, 2023, compared to $16,330 at December 31, 2022 [232]. - The company had $696.8 million of time deposits maturing in the next 12 months, with a historical trend of renewal by customers [238]. Liquidity and Capital Resources - The company maintains strong liquidity and capital resources despite recent industry disruptions, with no significant impact on its deposit base [170]. - The company utilized approximately $1.02 billion in wholesale funding sources, accounting for 22.2% of total funding as of March 31, 2023 [234]. - As of March 31, 2023, the company had unused credit lines with the FHLB and FRB of approximately $930.1 million and $502.7 million, respectively [237]. - The company had approximately $928.5 million in fair value of unpledged securities AFS and HTM, which could provide an estimated additional borrowing capacity of approximately $854.9 million [237]. - Common shareholders' equity increased to $367.7 million at March 31, 2023, from $347.6 million at December 31, 2022, primarily due to a $12.0 million decrease in accumulated other comprehensive loss [246]. - The company’s total capitalization increased to $446.2 million at March 31, 2023, from $426.0 million at December 31, 2022 [243]. Interest Rate and Market Conditions - The company experienced a 475 basis point increase in the federal funds rate since March 2022, impacting net interest income and margin [180]. - At March 31, 2023, the company’s interest rate risk profile indicated exposure to rising rates, largely unchanged from December 31, 2022 [252]. - The company entered into $19.5 million of interest rate swaps during the first three months of 2023, generating $0.4 million in fee income [235]. Regulatory and Market Risks - Recent bank failures, including Silicon Valley Bank and Signature Bank, have created liquidity risks and concerns within the financial services industry [275]. - The closures of these banks have led to decreased confidence among depositors and investors, causing volatility and disruption in capital markets [275]. - Potential liquidity pressures, reduced net interest margins, and increased credit losses may adversely impact the company's financial condition and results of operations [276]. - The market price and volatility of the company's common stock may be negatively affected by recent developments in the financial services industry [276]. - Government responses to bank failures may lead to increased deposit insurance premiums or special assessments, impacting profitability [276]. - The importance of maintaining diversified funding sources has been highlighted due to recent market conditions [275]. - Changes to laws or regulations governing banks may arise from recent bank failures, potentially affecting the company's business [276]. Operational Efficiency - Non-interest expense decreased by $0.5 million to $31.0 million in Q1 2023 compared to Q1 2022 [197]. - Compensation and employee benefits expenses decreased by $0.8 million in Q1 2023 compared to the same period in 2022 [199]. - The company has developed contingency funding plans to stress test liquidity needs arising from adverse changes in financial metrics [239]. - The company did not repurchase any shares during the first three months of 2023 under its authorized share repurchase plan [247]. - As of March 31, 2023, the company's disclosure controls and procedures were evaluated as effective by the CEO and CFO [272]. - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2023, that materially affected the reporting [273].

Independent Bank Corporation (NASDAQ:IBCP) Q1 2023 Results Conference Call April 27, 2023 11:00 AM ET Company Participants Brad Kessel - President and CEO Gavin Mohr - EVP and CFO Joel Rahn - EVP, Commercial Banking for Independent Conference Call Participants Brendan Nosal - Piper Sandler Erik Zwick - Hovde Group Matt Renck - KBW Manuel Navas - D.A. Davidson Operator Hello, everyone, and welcome to the Independent Bank Corporation Reports 2023 First Quarter Results. My name is Emily, and I'll be coordinat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2022 or o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _____________to_____________ Commission file number 0-7818 INDEPENDENT BANK CORPORATION (Exact name of Registrant as specified in its charter) Michigan 38-2032782 (State or o ...

Independent Bank Corporation (NASDAQ:IBCP) Q4 2022 Earnings Conference Call January 26, 2023 11:00 AM ET Company Participants William Kessel - President & CEO Joel Rahn - EVP & Head of Commercial Banking Gavin Mohr - EVP & CFO Conference Call Participants Erik Zwick - Hovde Group Matthew Renck - KBW Brendan Nosal - Piper Sandler Operator Welcome and thank you for joining the Independent Bank Corporation 2022 Fourth Quarter and Full Year Earnings Call. At this time, all participants are in a listen-only mode ...

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2022 Commission file number 0-7818 INDEPENDENT BANK CORPORATION (Exact name of registrant as specified in its charter) Michigan 38-2032782 (State or jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number) 4200 East Beltline, Grand Rapids, Michigan 49525 (Address of principal exec ...

Financial Data and Key Metrics Changes - The company reported Q3 2022 net income of $17.3 million, or $0.81 per diluted share, compared to $16 million, or $0.73 per diluted share in the prior year, representing increases of 8.4% in net income and 11% in diluted earnings per share [4] - For the nine months ended September 30, 2022, net income was $48.3 million, or $2.27 per diluted share, compared to $50.4 million, or $2.30 per diluted share in the prior year [7] - The annualized return on average assets and return on average equity for Q3 2022 were 1.40% and 20.48%, respectively [4] Business Line Data and Key Metrics Changes - The company experienced a $3.8 million growth in net interest income and a 23 basis point expansion in net interest margin on a linked quarter basis [5] - The total loan portfolio grew by $151 million in Q3 2022, with the commercial portfolio increasing by $79 million, reflecting a 22.7% annualized growth rate for the first nine months of the year [12] - The mortgage portfolio increased by $71 million during Q3 2022, while consumer installment lending saw a modest increase of $1.3 million [13] Market Data and Key Metrics Changes - Total deposits increased by 3.4% during Q3 2022, totaling $4.3 billion, an increase of $209.9 million from the start of the year [9] - The company noted a strong municipal segment that continues to have significant cash levels and funds coming in from the federal government, contributing to deposit growth [40] Company Strategy and Development Direction - The company aims to rotate its earning and asset mix from lower-yielding investments to higher-yielding loans while growing its deposit base and managing costs [35] - The focus remains on capitalizing on business investments in Michigan, particularly in the electric vehicle and clean energy sectors, which are driving job growth and business formation [6][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth prospects due to significant investments in Michigan's electric vehicle and clean energy industries [45] - Despite concerns about a potential economic slowdown, the company continues to see healthy economic conditions and loan demand in Michigan [36] Other Important Information - Non-interest income totaled $16.9 million in Q3 2022, down from $19.7 million in the year-ago quarter, primarily due to decreased mortgage loan sales volume [24] - The effective income tax rate for Q3 2022 was 18.6%, at the lower end of the forecast [32] Q&A Session Summary Question: Trends in deposit balances given the current rate environment - Management noted continued success in growing the deposit base but acknowledged increasing competition [39] Question: Areas of the loan book being monitored closely - Management indicated a focus on maintaining a granular portfolio and mentioned tempering back on certain segments, particularly in the RV segment [46] Question: Expectations for non-interest expenses and budget for 2023 - Management expressed confidence in staying within the targeted range for non-interest expenses while acknowledging inflation pressures [52] Question: Capital allocation and share repurchases - The focus remains on loan growth, with no share buybacks in Q3 2022 as capital is preserved for growth opportunities [53]

Be Independent | --- | --- | --- | --- | |-------|--------------------|------------------------------|-------| | | | | | | | | | | | | | Independent Bank Corporation | | | | | | | | | Earnings Call | | | | | Third Quarter 2022 | | | | | October 25, 2022 | | | | | | | | | | (NASDAQ: IBCP) | | | 2 Cautionary note regarding forward-looking statements This presentation contains forward-looking statements about Independent Bank Corporation. Statements that are not historical or current facts, including statement ...