Financial Performance - Net income for the first quarter of 2021 was $22.0 million, a significant increase from $4.8 million in the same period of 2020[220] - Net interest income totaled $30.3 million in Q1 2021, reflecting a slight increase of $0.1 million or 0.3% from the previous year[223] - Non-interest income surged to $26.4 million in Q1 2021, compared to $11.0 million in Q1 2020, driven by net gains on mortgage loan sales[233] - The provision for credit losses was a credit of $0.5 million in Q1 2021, a substantial improvement from an expense of $6.7 million in Q1 2020[232] - Non-interest expense rose to $30.0 million in Q1 2021, up by $1.3 million compared to Q1 2020[247] - Income tax expense was $5.1 million in Q1 2021, compared to $1.0 million in Q1 2020[262] Asset and Loan Growth - Average interest-earning assets increased by $697.0 million, primarily due to a substantial rise in deposits[224] - Total assets increased by $222.4 million during Q1 2021, with loans (excluding loans held for sale) reaching $2.78 billion[266] - Total loans increased from $2,733,678 thousand on December 31, 2020, to $2,784,224 thousand on March 31, 2021, representing a growth of approximately 1.9%[281] - Mortgage loans originated increased to $509,003 thousand in Q1 2021 from $311,078 thousand in Q1 2020, reflecting a growth of 63.7%[237] - Mortgage loans sold rose to $377,418 thousand in Q1 2021 compared to $262,260 thousand in Q1 2020, marking a 43.9% increase[237] Credit Quality and Risk Management - Non-accrual loans averaged $7.6 million in Q1 2021, a decrease from $11.1 million in Q1 2020[226] - Non-performing loans decreased from $7,873 thousand on December 31, 2020, to $7,089 thousand on March 31, 2021, a reduction of about 10%[283] - The allowance for credit losses (ACL) as a percentage of non-performing loans increased from 450.01% on December 31, 2020, to 659.54% on March 31, 2021, indicating a more conservative approach to credit risk management[283] - The company may need to increase its allowance for credit losses due to potential increases in loan delinquencies and defaults related to COVID-19[347] - The ongoing COVID-19 pandemic has resulted in significant disruptions and increased economic uncertainty, potentially leading to increases in loan delinquencies and credit losses[345] Deposits and Funding - Deposits totaled $3.86 billion at March 31, 2021, an increase of $221.2 million from December 31, 2020[266] - Total deposits increased to $3.86 billion at March 31, 2021, up from $3.64 billion at December 31, 2020, primarily due to growth in non-interest bearing deposits and savings[300] - Reciprocal deposits rose to $608.7 million at March 31, 2021, compared to $556.2 million at December 31, 2020, driven by an automated sweep product introduced in mid-2018[300] - The use of wholesale funding sources amounted to approximately $641.6 million, or 16.5% of total funding, as of March 31, 2021[303] Shareholder Equity and Dividends - Common shareholders' equity decreased to $387.3 million at March 31, 2021, from $389.5 million at December 31, 2020, mainly due to a $10.3 million reduction related to CECL adoption[317] - The quarterly cash dividend on common stock was $0.21 per share in Q1 2021, compared to $0.20 per share in Q1 2020, with a target payout ratio between 30% and 50% of net income[320] - The company repurchased 180,667 shares at a weighted average price of $19.93 per share during the first three months of 2021, as part of a plan to buy back up to 1,100,000 shares[319] Interest Rate Risk - A 200 basis point rise in interest rates would result in a market value of portfolio equity increase to $526,600 thousand, representing a 1.37% change, and a net interest income increase to $134,700 thousand, representing a 4.66% change[326] - A 100 basis point decline in interest rates would lead to a market value of portfolio equity decrease to $460,200 thousand, representing an 11.41% change, and a net interest income decrease to $122,800 thousand, representing a 4.58% change[326] - The company has established parameters for interest-rate risk and regularly monitors this risk, reporting at least quarterly to the board of directors[323] COVID-19 Impact and Response - The ongoing COVID-19 pandemic has resulted in significant disruptions and increased economic uncertainty, potentially affecting the company's financial condition[345] - The company has modified business practices due to COVID-19, with approximately 38% of employees working remotely[349] - The company initiated forbearance programs for retail and commercial customers, with a total of 143 loans amounting to $15,800 thousand under COVID-19 accommodations as of March 31, 2021[280] - The company is participating in the PPP, which has undergone multiple funding rounds totaling $349 billion initially and an additional $594 billion in subsequent legislation[351] Share Issuance and Repurchase - During the first quarter of 2021, the company issued 374 shares of common stock to non-employee directors and 4,692 shares to a trust for deferred distribution, representing aggregate fees of $0.09 million[357] - The company repurchased a total of 263,087 shares of common stock at an average price of $20.02 per share during the three months ended March 31, 2021[358] - The company has authorized 1,100,000 shares for repurchase under its publicly announced plan, with 919,333 shares remaining as of March 31, 2021[358]

Financial Data and Key Metrics Changes - Independent Bank Corporation reported a net income of $22 million or $1 per diluted share for Q1 2021, a significant increase from $4.8 million or $0.21 per diluted share in the prior year period, representing increases of 358% and 376% respectively [8][9] - Return on average assets and return on average equity were reported at 2.10% and 23.51% respectively [9] - Non-interest income totaled $26.4 million in Q1 2021, compared to $11 million in the year-ago quarter, driven by strong mortgage banking revenues [27][38] Business Line Data and Key Metrics Changes - The mortgage banking team generated net gains of $12.8 million, up 45.1% over 2020, with a record mortgage loan origination volume of $509 million for the quarter [10][27] - Non-interest expense totaled $30 million in Q1 2021, an increase from $28.7 million in the year-ago quarter, but a decrease from $32.7 million in the previous quarter [30] Market Data and Key Metrics Changes - The unemployment rate in Michigan improved to 5.2%, although still over 279,000 employed workers below pre-COVID levels [12] - Regional average home sale prices continued to climb, with inventory levels at record lows negatively impacting overall home sales volume [12] Company Strategy and Development Direction - The company is focused on diversified and balanced growth, process improvement, cost controls, talent management, and an enterprise-wide risk management framework [6] - A significant digital transformation initiative is underway, including a new core data processing agreement with Fiserv, aimed at enhancing customer experience and operational efficiency [41][44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to normalcy despite challenges posed by the COVID-19 pandemic, highlighting strong financial performance and effective business continuity plans [7][14] - The company anticipates loan growth in the low single-digits, with expectations for contributions from commercial, mortgage, and consumer sectors [61] Other Important Information - The company adopted CECL on January 1, 2021, resulting in an $11.7 million increase in the allowance for credit losses [11][34] - A quarterly cash dividend of $0.21 per share was declared, marking a 5% increase over 2020 [11][21] Q&A Session Summary Question: Thoughts on recent M&A activity in the market - Management noted that M&A activity creates opportunities to add customers and talent, and the company has historically taken advantage of market disruptions [51] Question: Impact of margin changes and one-time benefits - Management clarified that the 16 basis points benefit from accelerated amortization of loss on derivatives is a one-time adjustment and will not recur [52][55] Question: Expectations for loan growth contributions - Management indicated that loan growth is expected to be evenly distributed across commercial, mortgage, and consumer sectors, with a focus on commercial demand as the economy stabilizes [61][64] Question: Anticipated P&L impact from system conversion - Management discussed potential cost savings from new technology and improved operational efficiency, but noted it is difficult to quantify the exact impact on revenue and expenses at this time [68][70]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2020 or ☐ 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 other jurisdiction ...

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, 2020 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 ...

Q3 EARNINGS Independent Bank Corporation (IBCP) Conference Call – October 27, 2020 Be Independent 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 statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward- ...

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, 2020 Commission file number 0-7818 INDEPENDENT BANK CORPORATION (Exact name of registrant as specified in its charter) (State or jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number) Michigan 38-2032782 4200 East Beltline, Grand Rapids, Michigan 49525 (Address of principal executive ...

Q2 EARNINGS Independent Bank Corporation Conference Call – July 28, 2020 Be Independent Cautionary note regarding forward-looking statements 2 This presentation contains forward-looking statements about Independent Bank Corporation. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking ...

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 March 31, 2020 Commission file number 0-7818 INDEPENDENT BANK CORPORATION (Exact name of registrant as specified in its charter) (State or jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number) Michigan 38-2032782 4200 East Beltline, Grand Rapids, Michigan 49525 (Address of principal executiv ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K Commission file number 0-7818 INDEPENDENT BANK CORPORATION Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant w ...

[PART I - Financial Information](index=4&type=section&id=PART%20I%20-%20Financial%20Information) [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Independent Bank Corporation, including the statements of financial condition, operations, comprehensive income, cash flows, and shareholders' equity, along with the accompanying notes [Condensed Consolidated Statements of Financial Condition](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Presents the company's financial position as of September 30, 2019, compared to December 31, 2018, detailing assets, liabilities, and shareholders' equity, showing growth in total assets, loans, and deposits Condensed Consolidated Statements of Financial Condition (in thousands) | | September 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$3,550,837** | **$3,353,281** | | Net Loans | $2,696,298 | $2,557,632 | | Total Deposits | $3,052,312 | $2,913,428 | | **Total Liabilities** | **$3,210,592** | **$3,014,287** | | **Total Shareholders' Equity** | **$340,245** | **$338,994** | - Total assets increased by **$197.6 million**, or **5.9%**, from December 31, 2018 to September 30, 2019[13](index=13&type=chunk) - Total loans grew by **$139.9 million** (**5.4%**) to **$2.72 billion**, while total deposits increased by **$138.9 million** (**4.8%**) to **$3.05 billion** during the first nine months of 2019[13](index=13&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's revenues and expenses for the three and nine-month periods ended September 30, 2019 and 2018, showing increased net income in Q3 2019 driven by higher net interest income and non-interest income Key Operating Results (in thousands, except per share data) | Metric | Q3 2019 | Q3 2018 | 9 Months 2019 | 9 Months 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $30,872 | $29,697 | $91,871 | $82,613 | | Total Non-interest Income | $12,275 | $11,836 | $32,139 | $35,864 | | **Net Income** | **$12,445** | **$11,925** | **$32,556** | **$29,903** | | **Diluted EPS** | **$0.55** | **$0.49** | **$1.40** | **$1.27** | - Net income for the third quarter of 2019 was **$12.4 million**, or **$0.55 per diluted share**, compared to **$11.9 million**, or **$0.49 per diluted share**, for the same period in 2018[15](index=15&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Reconciles net income to comprehensive income, including unrealized gains and losses on securities and derivative instruments, with comprehensive income for Q3 2019 significantly higher than Q3 2018 due to unrealized gains on securities Comprehensive Income (in thousands) | Metric | Q3 2019 | Q3 2018 | 9 Months 2019 | 9 Months 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $12,445 | $11,925 | $32,556 | $29,903 | | Other comprehensive income (loss) | $1,058 | $(675) | $6,735 | $(3,890) | | **Comprehensive Income** | **$13,503** | **$11,250** | **$39,291** | **$26,013** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities for the nine-month periods ended September 30, 2019 and 2018, showing a net increase in cash and cash equivalents in 2019 Cash Flow Summary for Nine Months Ended Sept 30 (in thousands) | Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash From Operating Activities | $6,060 | $20,628 | | Net Cash Used in Investing Activities | $(131,595) | $(131,731) | | Net Cash From Financing Activities | $137,708 | $109,535 | | **Net Increase (Decrease) in Cash** | **$12,173** | **$(1,568)** | [Condensed Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Provides a detailed reconciliation of changes in shareholders' equity accounts for the three and nine-month periods, highlighting net income, dividend payments, and significant share repurchases - For the nine months ended September 30, 2019, the company repurchased **1,204,688 shares** of common stock for an aggregate price of **$26.3 million**[20](index=20&type=chunk) - Cash dividends declared for the nine months ended September 30, 2019, totaled **$0.54 per share**, amounting to **$12.5 million**[20](index=20&type=chunk) [Notes to Interim Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed disclosures supporting the primary financial statements, including information on accounting policies, new accounting standards, securities, loans, derivatives, regulatory capital, and fair value measurements - The company adopted ASU 2016-02 (Leases) on January 1, 2019, resulting in the recognition of right-of-use assets and lease liabilities of approximately **$7.7 million**[29](index=29&type=chunk) - The company expects to adopt ASU 2016-13 (CECL) on January 1, 2020, and anticipates the allowance for loan losses will increase by **$9.0 million to $11.0 million** upon adoption[25](index=25&type=chunk) - The company completed the acquisition of TCSB Bancorp, Inc. on April 1, 2018, accounted for under the acquisition method, adding goodwill of **$28.3 million**[204](index=204&type=chunk)[205](index=205&type=chunk)[209](index=209&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=71&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on the company's financial condition and results of operations, covering key performance drivers, including net interest income, non-interest income and expense, asset quality, and capital resources, highlighting increased profitability in Q3 2019 - Net income for Q3 2019 was **$12.4 million**, an increase from **$11.9 million** in Q3 2018, driven by higher net interest income and non-interest income, partially offset by increased non-interest expense[220](index=220&type=chunk) - Total assets grew by **$197.6 million** in the first nine months of 2019, primarily due to a **$139.9 million** increase in portfolio loans and a **$138.9 million** increase in deposits[274](index=274&type=chunk) - The company repurchased **1.2 million shares** for **$26.3 million** in the first nine months of 2019 under its share repurchase plan[96](index=96&type=chunk)[323](index=323&type=chunk) [Results of Operations](index=71&type=section&id=Results%20of%20Operations) Analyzes the components of the income statement, showing net interest income growth despite margin compression, boosted non-interest income from mortgage banking, and increased non-interest expenses, with a net credit for loan losses Key Performance Ratios (Annualized) | Ratio | Q3 2019 | Q3 2018 | | :--- | :--- | :--- | | Return on Average Assets | 1.42% | 1.46% | | Return on Average Equity | 14.64% | 13.83% | - Net interest income increased **4.0% YoY** to **$30.9 million** in Q3 2019, driven by a **$246.9 million** increase in average interest-earning assets[224](index=224&type=chunk) - Net gains on mortgage loans increased to **$5.7 million** in Q3 2019 from **$2.7 million** in Q3 2018, driven by higher sales volume and a wider loan sales margin[238](index=238&type=chunk)[240](index=240&type=chunk) - Mortgage loan servicing generated a net loss of **$1.6 million** in Q3 2019, compared to income of **$1.2 million** in Q3 2018, primarily due to negative fair value changes on servicing rights as interest rates declined[245](index=245&type=chunk) [Financial Condition](index=82&type=section&id=Financial%20Condition) Discusses the balance sheet, focusing on securities, loans, asset quality, and funding, highlighting solid loan and deposit growth, improved asset quality with decreased non-performing loans, and reliance on core deposits and wholesale funding Non-performing Assets (in thousands) | Metric | Sept 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Total non-performing loans | $6,649 | $8,574 | | Total non-performing assets | $8,438 | $9,873 | | NPA / Total Assets | 0.24% | 0.29% | | ALL / Non-performing loans | 393.26% | 290.27% | - Portfolio loans increased by **$139.9 million** (**5.4%**) to **$2.72 billion** in the first nine months of 2019[274](index=274&type=chunk) - Deposits increased by **$138.9 million**, primarily due to growth in reciprocal deposits, which rose to **$416.2 million** from **$182.1 million** at year-end 2018[304](index=304&type=chunk) - The allowance for loan losses (AFLL) increased to **$26.1 million** but remained stable at **0.96%** of total portfolio loans at both September 30, 2019, and December 31, 2018[299](index=299&type=chunk) [Liquidity and Capital Resources](index=89&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's ability to meet obligations through liquidity management and capital planning, indicating adequate liquidity supported by cash, securities, and borrowing facilities, with strong capital levels meeting 'well-capitalized' regulatory standards - The parent company held approximately **$16.3 million** in cash and time deposits as of September 30, 2019, considered sufficient to meet operating expenses, interest payments, and dividends[317](index=317&type=chunk) - The ratio of tangible common equity (TCE) to tangible assets was **8.71%** at September 30, 2019, down from **9.17%** at December 31, 2018[322](index=322&type=chunk) - The company and its bank subsidiary continued to meet the requirements to be considered 'well-capitalized' under federal regulatory standards as of September 30, 2019[325](index=325&type=chunk) [Asset/liability management](index=91&type=section&id=Asset%2Fliability%20management) Details the company's management of interest-rate risk using simulation analysis to monitor the potential impact of interest rate changes on net interest income and the market value of portfolio equity, showing positioning for rising rates but some downside risk in a falling rate environment Interest Rate Sensitivity Analysis (as of Sept 30, 2019) | Change in Interest Rates | % Change in Market Value of Portfolio Equity | % Change in Net Interest Income (12-month) | | :--- | :--- | :--- | | +200 bps | +1.02% | +1.54% | | +100 bps | +3.00% | +1.13% | | Base Case | -- | -- | | -100 bps | -12.40% | -3.16% | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=92&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the market risk disclosures provided within the Management's Discussion and Analysis section of the report - The report directs the reader to the 'Asset/liability management' subsection within Item 2 for disclosures about market risk[343](index=343&type=chunk) [Item 4. Controls and Procedures](index=92&type=section&id=Item%204.%20Controls%20and%20Procedures) Contains management's conclusion on the effectiveness of the company's disclosure controls and procedures and reports any changes in internal control over financial reporting - The CEO and CFO concluded that as of September 30, 2019, the company's disclosure controls and procedures were effective[345](index=345&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended September 30, 2019, that materially affected, or are reasonably likely to materially affect, internal controls[346](index=346&type=chunk) [PART II - Other Information](index=93&type=section&id=PART%20II%20-%20Other%20Information) [Risk Factors](index=93&type=section&id=Item%201A.%20Risk%20Factors) This section states whether there have been any material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2018[348](index=348&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=93&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Provides information on the company's sales of unregistered equity securities and its repurchases of common stock during the reporting period - During Q3 2019, the company issued **2,787 shares** of common stock to non-employee directors in lieu of fees under its Deferred Compensation and Stock Purchase Plan[349](index=349&type=chunk) Common Stock Repurchases (Q3 2019) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2019 | -- | $ -- | | August 2019 | 25,919 | $20.09 | | September 2019 | -- | $ -- | | **Total** | **25,919** | **$20.09** | [Exhibits](index=94&type=section&id=Item%206.%20Exhibits) Lists the exhibits filed as part of the quarterly report, including officer certifications and XBRL data files - The exhibits filed with the report include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, as well as XBRL interactive data files[353](index=353&type=chunk)