GRAND RAPIDS, Mich., Oct. 27, 2026 (GLOBE NEWSWIRE) — Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2026 net income of $17.9 million, or $0.80 per diluted share, versus net income of $17.5 million, or $0.84 per diluted share, in the prior-year period.
Highlights for the third quarter of 2026 include:
- Net growth in loans of $116.6 million or 10.5% annualized from June 30, 2026, exclusive of $366.7 million of Highpoint Community Bank loans, acquired on July 1, 2026. Total loan growth of $483.3 million, or 10.95% (not annualized), during the third quarter;
- Net growth in total deposits of $115.8 million or 9.4% annualized from June 30, 2026, excluding $543.5 million Highpoint Community Bank deposits, acquired on July 1, 2026. Total deposit growth of $659.3 million, or 13.56% (not annualized), during the third quarter;
- Net interest margin increased to 3.79% for the third quarter of 2026, a 12 basis point increase from the prior quarter, and a 28 basis point increase from the third quarter of 2025. On a fully tax-equivalent basis(1), net interest margin was 3.82%, an 11 basis point increase from the prior quarter. Excluding Highpoint Community Bank acquisition-related purchase accounting accretion(1), net interest margin was 3.76%, a 5 basis point increase from the prior quarter;
- Net interest income increased $7.4 million from the prior quarter ended June 30, 2026;
- A return on average assets and a return on average equity of 1.14% and 12.17%, respectively, for the quarter ended September 30, 2026;
- Income before income tax of $21.5 million for the quarter ended September 30, 2026, compared to $22.7 million in the prior quarter and $21.2 million for the quarter ended September 30, 2025. Pre-tax, pre-provision net revenue(1) increased to $26.3 million for the quarter ended September 30, 2026, from $25.4 million during the prior quarter and $23.2 million for the quarter ended September 30, 2025;
- The payment of a $0.28 per share quarterly dividend on common stock on August 14, 2026; and
- Completed the acquisition of HCB Financial Corp. on July 1, 2026.
(1) Non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below.
William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “Our third quarter results reflect strong organic growth, continued margin expansion, and the first full quarter of contributions from Highpoint Community Bank (“Highpoint”). Net income was $17.9 million, or $0.80 per diluted share. Excluding after tax merger-related expenses of $2.8 million, adjusted net income(1) was $20.6 million or $0.92 per diluted share. Net interest income increased 15.4% from the second quarter to $55.3 million, and net interest margin expanded 12 basis points to 3.79% (11 basis points to 3.82% on a tax-equivalent basis(1)).”
“We delivered outstanding annualized linked-quarter commercial loan growth of 20.9% and total deposit growth of 9.4%, each excluding Highpoint, underscoring the strength of our relationship banking strategy and momentum in our core franchise. Credit loss provisioning increased due to new loans added to the portfolio, including acquired Highpoint loans unfunded lending commitments and an increase in the specific reserve for one commercial relationship, while net loan charge-offs remained low at $0.2 million.”
“As we prepare for Highpoint’s system conversion in November, our teams remain focused on a seamless customer transition and on realizing the long-term benefits of the combined banks. We thank our colleagues for their continued commitment to our customers and their efforts to bring our two organizations together.”
(1) Non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below.
Significant items impacting comparable third quarter 2026 and 2025 results include the following (per share after-tax amounts are calculated using an assumed 21% tax rate):
- The provision for credit losses was an expense of $4.8 million ($0.17 per diluted share, after taxes) for the three-month period ended September 30, 2026, as compared to an expense of $2.0 million ($0.08 per diluted share, after taxes) for the three-month period ended September 30, 2025.
- Merger-related expenses were $3.5 million ($0.12 per diluted share, after taxes) for the three-month period ended September 30, 2026, as compared to zero for the three-month period ended September 30, 2025.
- Increases (decreases) in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of $3.4 million ($0.12 per diluted share, after taxes) for the three-month period ended September 30, 2026, as compared to $(0.6) million ($(0.02) per diluted share, after taxes) for the three-month period ended September 30, 2025.
Operating Results
The Company’s net interest income totaled $55.3 million during the third quarter of 2026, an increase of $9.9 million, or 21.8% from the year-ago period, and an increase of $7.4 million, or 15.4%, from the second quarter of 2026. The Company’s net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.79% during the third quarter of 2026, compared to 3.51% in the year-ago period and 3.67% in the second quarter of 2026. The Company’s tax equivalent net interest margin (Non-GAAP) was 3.82% during the third quarter of 2026, compared to 3.54% in the year-ago period, and 3.71% in the second quarter of 2026. The linked quarter increase in the net interest margin was supported by a 13 basis point increase on earning asset yield.
The year-over-year quarter and linked quarter increases in net interest income were due to an increase in average interest-earning assets, higher net interest margin, and a six basis point benefit from the accretion of purchase accounting adjustments. Average interest-earning assets were $5.82 billion in the third quarter of 2026, compared to $5.16 billion in the year-ago quarter and $5.22 billion in the second quarter of 2026.
Non-interest income totaled $15.8 million for the third quarter of 2026, compared to $15.3 million in the second quarter of 2026 and $11.9 million in the comparable prior year period. This change was primarily due to variances in mortgage loan servicing related revenues.
Net gains on mortgage loans were $1.0 million in the third quarter of 2026, $1.7 million in the second quarter of 2026 and $1.5 million in the third quarter of 2025. The decreases in net gains on mortgage loans in the current quarter were due to unfavorable fair value adjustments on loans originated for sale.
Mortgage loan servicing, net, generated income of $4.1 million, $2.5 million and $0.1 million in the quarters ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. The significant variance in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in interest rates and the associated expected future prepayment levels and expected float rates. Capitalized mortgage loan servicing rights totaled $37.8 million and $31.5 million at September 30, 2026 and September 30, 2025, respectively.
Non-interest expenses totaled $44.8 million in the third quarter of 2026, compared to $37.8 million in the prior quarter and $34.1 million in the year-ago period. The increase in non-interest expense is primarily due to increases related to the merger with Highpoint Community Bank in compensation and employee benefits, merger-related expenses, data processing and amortization of other intangibles.
The Company recorded income tax expense of $3.6 million in the third quarter of 2026. This compares to an income tax expense of $3.9 million in the second quarter of 2026 and $3.7 million in the third quarter of 2025.
Asset Quality
The provision for credit losses was an expense of $4.81 million, $2.72 million and $1.99 million in the third quarter of 2026, second quarter of 2026 and third quarter of 2025, respectively. The increase in the current period provision is primarily attributable to an increase in specific reserves associated with one commercial lending relationship, as well as loan growth and an increase in unfunded commitments. The Company recorded loan net charge offs of $0.21 million, $0.37 million and $0.73 million in the quarters ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. At September 30, 2026, the allowance for credit losses for loans totaled $73.7 million, or 1.51% of total portfolio loans compared to $62.5 million, or 1.49% of total portfolio loans at September 30, 2025.
Non-performing loans totaled $39.2 million, or 0.80% of total portfolio loans, at September 30, 2026, compared to $32.8 million, or 0.74%, at June 30, 2026 and $20.4 million, or 0.48%, at September 30, 2025. The increase was primarily in commercial loans, where non-performing loans rose to $37.6 million from $13.8 million in the year ago period, primarily driven by four commercial loan relationships being placed on non-accrual status. Government-guaranteed loans of $11.1 million are excluded from these totals. The allowance for credit losses represented 188.26% of non-performing loans at September 30, 2026, compared to 306.85% at September 30, 2025.
Balance Sheet, Capital and Liquidity
Total assets were $6.26 billion at September 30, 2026, an increase of $599.8 million from June 30, 2026. Loans, excluding loans held for sale, were $4.90 billion at September 30, 2026, compared to $4.41 billion at June 30, 2026. Deposits totaled $5.52 billion at September 30, 2026, an increase of $659.3 million from June 30, 2026. In addition to the deposits acquired from the acquisition of Highpoint Community Bank, this increase is related to an inflow of deposits from business and municipal customers.
Cash and cash equivalents totaled $181.8 million at September 30, 2026, versus $165.5 million at June 30, 2026. Securities available for sale (“AFS”) totaled $519.6 million at September 30, 2026, versus $494.0 million at June 30, 2026.
Total shareholders’ equity was $577.3 million at September 30, 2026, or 9.22% of total assets compared to $528.4 million or 9.33% at June 30, 2026. The increase in shareholders’ equity is primarily the result of shares issued in connection with the acquisition of HCB Financial Corp. and earnings retention that was partially offset by dividend payments and an increase in the accumulated other comprehensive loss. Tangible common equity (non-GAAP) totaled $510.0 million at September 30, 2026, or $23.10 per share compared to $499.3 million or $24.24 per share at June 30, 2026. The decrease in tangible common equity per share primarily reflects $39.1 million of goodwill and other intangible assets recorded in the HCB Financial Corp. acquisition.
The Company’s wholly owned subsidiaries, Independent Bank and Highpoint Community Bank, exceeded the “well capitalized” thresholds for regulatory purposes at September 30, 2026, based on preliminary ratios.
At September 30, 2026, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $858.9 million and $1.13 billion, respectively. We also had approximately $463.8 million in fair value of unpledged securities AFS and HTM at September 30, 2026 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $437.9 million.
Share Repurchase Plan
On December 16, 2025, the Board of Directors of the Company authorized the 2026 share repurchase plan. Under the terms of the 2026 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2026. During the nine-month period ended September 30, 2026, the Company repurchased 119,425 shares of common stock, for an aggregate purchase price of $4.2 million.
Earnings Conference Call
Brad Kessel, President and CEO, Gavin Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Tuesday, October 27, 2026.
To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: https://register-conf.media-server.com/register/BI8251941b98524fec94bd98aeea90727e.
In order to view the webcast and presentation slides, please go to https://edge.media-server.com/mmc/p/oko972r9 during the time of the call. A replay of the webcast will be available until October 27, 2027.
About Independent Bank Corporation
Independent Bank Corporation (NASDAQ: IBCP) is a Grand Rapids, Michigan-based bank holding company and the parent company of Independent Bank and, as of July 1, 2026, Highpoint Community Bank. Independent Bank Corporation has total assets of approximately $6.3 billion and operates from 66 locations across Michigan’s Lower Peninsula. Founded in 1864 as First National Bank of Ionia, Independent Bank provides a full range of financial services, including commercial banking, consumer banking, mortgage lending, and investment services. Independent Bank expects to complete the full system integration of Highpoint Community Bank’s operations on November 9, 2026. Until conversion, customers of Highpoint Community Bank should continue using their existing Highpoint Community Bank branches, checks, bank cards, online and mobile banking, and other banking services as usual.
For more information, please visit our Web site at: IndependentBank.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and are often identified by words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “target,” “may,” “will,” “should,” “could,” “would,” “outlook,” and similar expressions. These statements include, without limitation, statements regarding our anticipated future financial performance and components of that performance, acquisition integration activities, expected benefits of the completed acquisition, and future plans, prospects and performance.
Forward-looking statements involve inherent risks and uncertainties, and actual results may differ materially from those expressed or implied by such statements. Factors that could cause actual results to differ materially include deterioration in general business and economic conditions or turbulence in domestic or global financial markets; changes in interest rates; changes in unemployment rates; deterioration in the credit quality of our loan portfolio or in the value of collateral securing loans; deterioration in the value of our investment securities; changes in funding availability or costs; legal and regulatory developments; the timing, cost and outcome of pending or threatened litigation and regulatory matters; changes in customer behavior and preferences; cybersecurity incidents or other data-security breaches; risks relating to the integration of Highpoint Community Bank, including customer and employee retention, systems conversion, unexpected costs, disruption to business relationships, and the risk that anticipated benefits may not be realized when expected or at all; and management’s ability to effectively manage the risks facing our business. Additional risk factors are described in our Annual Report on Form 10-K for the year ended December 31, 2025 and other reports filed with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of future results. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we undertake no obligation to update or revise any forward-looking statement.
| INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Financial Condition |
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| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (In thousands, except share amounts) | |||||||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 68,275 | $ | 64,089 | $ | 48,475 | $ | 52,235 | $ | 56,378 | |||||||||
| Interest bearing deposits | 113,540 | 101,361 | 126,440 | 86,152 | 152,308 | ||||||||||||||
| Cash and Cash Equivalents | 181,815 | 165,450 | 174,915 | 138,387 | 208,686 | ||||||||||||||
| Interest bearing deposits – time | 746 | — | — | — | — | ||||||||||||||
| Equity securities at fair value | — | 1,088 | — | — | — | ||||||||||||||
| Securities available for sale at fair value | 519,616 | 493,952 | 482,295 | 495,909 | 502,583 | ||||||||||||||
| Securities held to maturity at cost | 292,884 | 287,574 | 301,007 | 309,523 | 321,450 | ||||||||||||||
| Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 20,452 | 18,940 | 18,102 | 18,102 | 18,102 | ||||||||||||||
| Loans held for sale, carried at fair value | 12,836 | 16,824 | 19,714 | 9,031 | 11,654 | ||||||||||||||
| Loans | |||||||||||||||||||
| Commercial | 2,763,222 | 2,359,988 | 2,267,369 | 2,213,557 | 2,125,053 | ||||||||||||||
| Mortgage | 1,612,243 | 1,533,268 | 1,520,358 | 1,524,821 | 1,517,656 | ||||||||||||||
| Installment | 521,684 | 520,608 | 520,372 | 537,907 | 555,574 | ||||||||||||||
| Total Loans | 4,897,149 | 4,413,864 | 4,308,099 | 4,276,285 | 4,198,283 | ||||||||||||||
| Allowance for credit losses | (73,724 | ) | (65,673 | ) | (63,719 | ) | (63,445 | ) | (62,459 | ) | |||||||||
| Net Loans | 4,823,425 | 4,348,191 | 4,244,380 | 4,212,840 | 4,135,824 | ||||||||||||||
| Other real estate and repossessed assets, net | 759 | 710 | 767 | 896 | 589 | ||||||||||||||
| Property and equipment, net | 57,235 | 44,549 | 42,319 | 38,972 | 38,805 | ||||||||||||||
| Bank-owned life insurance | 63,424 | 53,567 | 54,072 | 53,750 | 53,875 | ||||||||||||||
| Capitalized mortgage loan servicing rights, carried at fair value | 37,839 | 33,949 | 32,233 | 31,493 | 31,522 | ||||||||||||||
| Other intangibles, net | 17,045 | 771 | 886 | 1,001 | 1,123 | ||||||||||||||
| Goodwill | 50,219 | 28,300 | 28,300 | 28,300 | 28,300 | ||||||||||||||
| Accrued income and other assets | 185,337 | 169,976 | 158,519 | 167,516 | 140,600 | ||||||||||||||
| Total Assets | $ | 6,263,632 | $ | 5,663,841 | $ | 5,557,509 | $ | 5,505,720 | $ | 5,493,113 | |||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||||
| Deposits | |||||||||||||||||||
| Non-interest bearing | $ | 1,126,676 | $ | 1,030,460 | $ | 991,140 | $ | 991,984 | $ | 1,003,521 | |||||||||
| Savings and interest-bearing checking | 2,591,601 | 2,143,895 | 2,146,403 | 2,113,260 | 2,040,462 | ||||||||||||||
| Reciprocal | 1,052,489 | 1,025,016 | 1,028,874 | 974,921 | 981,115 | ||||||||||||||
| Time | 750,112 | 662,248 | 657,043 | 662,858 | 660,815 | ||||||||||||||
| Brokered time | 514 | 514 | 57,220 | 18,659 | 173,242 | ||||||||||||||
| Total Deposits | 5,521,392 | 4,862,133 | 4,880,680 | 4,761,682 | 4,859,155 | ||||||||||||||
| Other borrowings | 4,009 | 127,005 | 27,010 | 77,003 | 2,006 | ||||||||||||||
| Subordinated debentures, net | 39,915 | 39,898 | 39,881 | 39,864 | 39,847 | ||||||||||||||
| Accrued expenses and other liabilities | 121,020 | 106,392 | 99,385 | 124,220 | 101,363 | ||||||||||||||
| Total Liabilities | 5,686,336 | 5,135,428 | 5,046,956 | 5,002,769 | 5,002,371 | ||||||||||||||
| Shareholders’ Equity | |||||||||||||||||||
| Preferred stock | — | — | — | — | — | ||||||||||||||
| Common stock | 361,741 | 307,820 | 307,679 | 307,845 | 311,770 | ||||||||||||||
| Retained earnings | 288,569 | 276,934 | 263,898 | 252,794 | 239,602 | ||||||||||||||
| Accumulated other comprehensive loss | (73,014 | ) | (56,341 | ) | (61,024 | ) | (57,688 | ) | (60,630 | ) | |||||||||
| Total Shareholders’ Equity | 577,296 | 528,413 | 510,553 | 502,951 | 490,742 | ||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 6,263,632 | $ | 5,663,841 | $ | 5,557,509 | $ | 5,505,720 | $ | 5,493,113 | |||||||||
| INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations |
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| Three Months Ended | |||||||||||||||||||
| September 30, 2026 |
June 30, 2026 | March 31, 2026 |
December 31, 2025 |
September 30, 2025 |
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| (Unaudited) | |||||||||||||||||||
| Interest Income | (In thousands, except per share amounts) | ||||||||||||||||||
| Interest and fees on loans | $ | 68,998 | $ | 60,643 | $ | 59,249 | $ | 60,205 | $ | 61,325 | |||||||||
| Interest on securities | |||||||||||||||||||
| Taxable | 3,902 | 3,300 | 3,354 | 3,513 | 3,660 | ||||||||||||||
| Tax-exempt | 2,755 | 2,525 | 2,522 | 2,633 | 2,767 | ||||||||||||||
| Other investments | 1,660 | 826 | 1,044 | 1,074 | 1,538 | ||||||||||||||
| Total Interest Income | 77,315 | 67,294 | 66,169 | 67,425 | 69,290 | ||||||||||||||
| Interest Expense | |||||||||||||||||||
| Deposits | 21,289 | 18,322 | 18,397 | 20,109 | 21,972 | ||||||||||||||
| Other borrowings and subordinated debt and debentures | 769 | 1,070 | 917 | 962 | 1,957 | ||||||||||||||
| Total Interest Expense | 22,058 | 19,392 | 19,314 | 21,071 | 23,929 | ||||||||||||||
| Net Interest Income | 55,257 | 47,902 | 46,855 | 46,354 | 45,361 | ||||||||||||||
| Provision for credit losses | 4,807 | 2,717 | 362 | 1,923 | 1,991 | ||||||||||||||
| Net Interest Income After Provision for Credit Losses | 50,450 | 45,185 | 46,493 | 44,431 | 43,370 | ||||||||||||||
| Non-interest Income | |||||||||||||||||||
| Interchange income | 4,638 | 3,576 | 3,234 | 3,186 | 4,157 | ||||||||||||||
| Service charges on deposit accounts | 3,353 | 3,100 | 2,935 | 3,096 | 3,131 | ||||||||||||||
| Net gains (losses) on assets | |||||||||||||||||||
| Mortgage loans | 1,011 | 1,651 | 1,308 | 1,372 | 1,474 | ||||||||||||||
| Equity securities at fair value | 65 | 1,600 | — | — | — | ||||||||||||||
| Securities available for sale | (17 | ) | (90 | ) | (26 | ) | (15 | ) | (36 | ) | |||||||||
| Mortgage loan servicing, net | 4,074 | 2,460 | 1,646 | 899 | 74 | ||||||||||||||
| Other | 2,684 | 3,037 | 2,951 | 3,420 | 3,137 | ||||||||||||||
| Total Non-interest Income | 15,808 | 15,334 | 12,048 | 11,958 | 11,937 | ||||||||||||||
| Non-interest Expense | |||||||||||||||||||
| Compensation and employee benefits | 24,487 | 22,560 | 21,829 | 22,563 | 21,125 | ||||||||||||||
| Data processing | 4,761 | 4,152 | 3,952 | 3,428 | 3,784 | ||||||||||||||
| Occupancy, net | 2,419 | 2,073 | 2,413 | 2,171 | 2,127 | ||||||||||||||
| Merger related expense | 3,457 | 369 | 300 | — | — | ||||||||||||||
| Interchange expense | 1,446 | 1,224 | 1,191 | 1,165 | 1,180 | ||||||||||||||
| Advertising | 738 | 1,180 | 1,210 | 991 | 526 | ||||||||||||||
| Furniture, fixtures and equipment | 1,124 | 927 | 894 | 897 | 892 | ||||||||||||||
| Loan and collection | 1,023 | 1,038 | 752 | 589 | 618 | ||||||||||||||
| FDIC deposit insurance | 819 | 738 | 799 | 861 | 615 | ||||||||||||||
| Legal and professional | 774 | 613 | 591 | 787 | 682 | ||||||||||||||
| Litigation expense | — | 350 | 1,500 | — | — | ||||||||||||||
| Communications | 537 | 464 | 593 | 471 | 465 | ||||||||||||||
| Amortization of other intangibles | 917 | 115 | 115 | 122 | 121 | ||||||||||||||
| Other | 2,257 | 2,006 | 2,172 | 2,033 | 1,996 | ||||||||||||||
| Total Non-interest Expense | 44,759 | 37,809 | 38,311 | 36,078 | 34,131 | ||||||||||||||
| Income Before Income Tax | 21,499 | 22,710 | 20,230 | 20,311 | 21,176 | ||||||||||||||
| Income tax expense | 3,649 | 3,905 | 3,355 | 1,739 | 3,674 | ||||||||||||||
| Net Income | $ | 17,850 | $ | 18,805 | $ | 16,875 | $ | 18,572 | $ | 17,502 | |||||||||
| Net Income Per Common Share | |||||||||||||||||||
| Basic | $ | 0.81 | $ | 0.91 | $ | 0.82 | $ | 0.90 | $ | 0.85 | |||||||||
| Diluted | $ | 0.80 | $ | 0.90 | $ | 0.81 | $ | 0.89 | $ | 0.84 | |||||||||
| INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (continued) |
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| Nine Months Ended | |||||||
| September 30, 2026 | September 30, 2025 | ||||||
| (Unaudited) | |||||||
| Interest Income | (In thousands, except per share amounts) | ||||||
| Interest and fees on loans | $ | 188,890 | $ | 178,628 | |||
| Interest on securities | |||||||
| Taxable | 10,556 | 11,492 | |||||
| Tax-exempt | 7,802 | 8,310 | |||||
| Other investments | 3,530 | 3,882 | |||||
| Total Interest Income | 210,778 | 202,312 | |||||
| Interest Expense | |||||||
| Deposits | 58,008 | 63,389 | |||||
| Other borrowings and subordinated debt and debentures | 2,756 | 5,262 | |||||
| Total Interest Expense | 60,764 | 68,651 | |||||
| Net Interest Income | 150,014 | 133,661 | |||||
| Provision for credit losses | 7,886 | 4,212 | |||||
| Net Interest Income After Provision for Credit Losses | 142,128 | 129,449 | |||||
| Non-interest Income | |||||||
| Interchange income | 11,448 | 10,674 | |||||
| Service charges on deposit accounts | 9,388 | 8,926 | |||||
| Net gains (losses) on assets | |||||||
| Mortgage loans | 3,970 | 5,408 | |||||
| Equity securities at fair value | 1,665 | — | |||||
| Securities available for sale | (133 | ) | (355 | ) | |||
| Mortgage loan servicing, net | 8,180 | (72 | ) | ||||
| Other | 8,672 | 9,105 | |||||
| Total Non-interest Income | 43,190 | 33,686 | |||||
| Non-interest Expense | |||||||
| Compensation and employee benefits | 68,876 | 62,631 | |||||
| Data processing | 12,865 | 11,360 | |||||
| Occupancy, net | 6,905 | 6,396 | |||||
| Merger related expense | 4,126 | — | |||||
| Interchange expense | 3,861 | 3,476 | |||||
| Advertising | 3,128 | 2,220 | |||||
| Furniture, fixtures and equipment | 2,945 | 2,570 | |||||
| Loan and collection | 2,813 | 2,148 | |||||
| FDIC deposit insurance | 2,356 | 1,963 | |||||
| Legal and professional | 1,978 | 1,661 | |||||
| Litigation expense | 1,850 | — | |||||
| Communications | 1,594 | 1,526 | |||||
| Amortization of other intangibles | 1,147 | 365 | |||||
| Other | 6,435 | 5,839 | |||||
| Total Non-interest Expense | 120,879 | 102,155 | |||||
| Income Before Income Tax | 64,439 | 60,980 | |||||
| Income tax expense | 10,909 | 11,011 | |||||
| Net Income | $ | 53,530 | $ | 49,969 | |||
| Net Income Per Common Share | |||||||
| Basic | $ | 2.54 | $ | 2.40 | |||
| Diluted | $ | 2.51 | $ | 2.38 | |||
| INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data |
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| September 30, 2026 |
June 30, 2026 |
March 31, 2026 |
December 31, 2025 |
September 30, 2025 |
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| (unaudited) | |||||||||||||||||||
| (Dollars in thousands except per share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Basic net income per common share | $ | 0.81 | $ | 0.91 | $ | 0.82 | $ | 0.90 | $ | 0.85 | |||||||||
| Diluted net income per common share | 0.80 | 0.90 | 0.81 | 0.89 | 0.84 | ||||||||||||||
| Cash dividend per share | 0.28 | 0.28 | 0.28 | 0.26 | 0.26 | ||||||||||||||
| Average shares outstanding | 22,136,532 | 20,603,937 | 20,574,506 | 20,639,758 | 20,702,235 | ||||||||||||||
| Average diluted shares outstanding | 22,347,223 | 20,807,061 | 20,780,188 | 20,848,634 | 20,904,857 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Return on average assets | 1.14 | % | 1.37 | % | 1.24 | % | 1.35 | % | 1.27 | % | |||||||||
| Return on average equity | 12.17 | 14.52 | 13.43 | 14.75 | 14.57 | ||||||||||||||
| Return on average tangible equity (2) | 14.48 | 15.38 | 14.25 | 15.67 | 15.54 | ||||||||||||||
| Efficiency ratio (1) | 61.25 | 60.64 | 64.33 | 61.18 | 58.86 | ||||||||||||||
| As a Percent of Average Interest-Earning Assets (1) (2) | |||||||||||||||||||
| Interest income | 5.33 | % | 5.20 | % | 5.15 | % | 5.24 | % | 5.38 | % | |||||||||
| Interest expense | 1.51 | 1.49 | 1.50 | 1.62 | 1.84 | ||||||||||||||
| Net interest margin | 3.82 | 3.71 | 3.65 | 3.62 | 3.54 | ||||||||||||||
| Average Balances | |||||||||||||||||||
| Loans | $ | 4,839,412 | $ | 4,368,577 | $ | 4,315,371 | $ | 4,249,389 | $ | 4,201,557 | |||||||||
| Securities | 812,965 | 777,422 | 796,251 | 815,269 | 826,362 | ||||||||||||||
| Total earning assets | 5,818,800 | 5,219,641 | 5,209,360 | 5,162,381 | 5,159,681 | ||||||||||||||
| Total assets | 6,209,611 | 5,521,748 | 5,522,244 | 5,449,518 | 5,451,922 | ||||||||||||||
| Deposits | 5,465,721 | 4,812,586 | 4,832,089 | 4,774,179 | 4,786,408 | ||||||||||||||
| Interest bearing liabilities | 4,382,511 | 3,896,448 | 3,892,702 | 3,846,367 | 3,862,024 | ||||||||||||||
| Shareholders’ equity | 581,997 | 519,439 | 509,523 | 499,445 | 476,422 | ||||||||||||||
| End of Period | |||||||||||||||||||
| Capital | |||||||||||||||||||
| Tangible common equity ratio (2) | 8.23 | % | 8.86 | % | 8.71 | % | 8.65 | % | 8.44 | % | |||||||||
| Tangible common equity ratio excluding accumulated other comprehensive loss (2) | 9.22 | 9.67 | 9.61 | 9.51 | 9.35 | ||||||||||||||
| Average equity to average assets | 9.37 | 9.41 | 9.23 | 9.16 | 8.74 | ||||||||||||||
| Total capital to risk-weighted assets (3) | 13.17 | 13.77 | 13.79 | 13.59 | 13.66 | ||||||||||||||
| Tier 1 capital to risk-weighted assets (3) | 11.92 | 12.52 | 12.54 | 12.33 | 12.41 | ||||||||||||||
| Common equity tier 1 capital to risk-weighted assets (3) | 11.17 | 11.70 | 11.70 | 11.49 | 11.54 | ||||||||||||||
| Tier 1 capital to average assets (3) | 9.98 | 10.58 | 10.34 | 10.27 | 10.07 | ||||||||||||||
| Common shareholders’ equity per share of common stock | $ | 26.14 | $ | 25.65 | $ | 24.80 | $ | 24.48 | $ | 23.72 | |||||||||
| Tangible common equity per share of common stock (2) | 23.10 | 24.24 | 23.38 | 23.05 | 22.29 | ||||||||||||||
| Total shares outstanding | 22,081,450 | 20,602,535 | 20,585,805 | 20,548,893 | 20,691,604 | ||||||||||||||
| (1) | Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%. |
| (2) | Refer to Reconciliation of Non-GAAP Financial Measures. |
| (3) | September 30, 2026 ratios are preliminary. |
| INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data (continued) |
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| Mortgage Loan Servicing, Net Activity | |||||||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||||||
| 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 9/30/2026 | 9/30/2025 | |||||||||||||||||||||
| Mortgage loan servicing, net: | (In thousands) | ||||||||||||||||||||||||||
| Revenue, net | $ | 1,646 | $ | 1,625 | $ | 1,636 | $ | 1,656 | $ | 1,614 | $ | 4,907 | $ | 5,145 | |||||||||||||
| Fair value change due to price | 3,445 | 1,838 | 933 | 160 | (576 | ) | 6,216 | (2,328 | ) | ||||||||||||||||||
| Fair value change due to pay-downs | (1,017 | ) | (1,003 | ) | (923 | ) | (917 | ) | (903 | ) | (2,943 | ) | (2,656 | ) | |||||||||||||
| Loss on sale of originated servicing rights | — | — | — | — | (61 | ) | — | (233 | ) | ||||||||||||||||||
| Total | $ | 4,074 | $ | 2,460 | $ | 1,646 | $ | 899 | $ | 74 | $ | 8,180 | $ | (72 | ) | ||||||||||||
| Non-performing Loans by Loan Type (1): | |||||||||||||||||||
| 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | |||||||||||||||
| Loan Type | (Dollars in thousands) | ||||||||||||||||||
| Commercial | $ | 37,619 | $ | 32,274 | $ | 27,077 | $ | 23,531 | $ | 13,825 | |||||||||
| Mortgage | 12,084 | 10,432 | 9,953 | 8,683 | 7,873 | ||||||||||||||
| Installment | 574 | 981 | 745 | 860 | 900 | ||||||||||||||
| Subtotal | 50,277 | 43,687 | 37,775 | 33,074 | 22,598 | ||||||||||||||
| Less – government guaranteed loans | 11,116 | 10,890 | 10,202 | 9,947 | 2,243 | ||||||||||||||
| Total non-performing loans | $ | 39,161 | $ | 32,797 | $ | 27,573 | $ | 23,127 | $ | 20,355 | |||||||||
| Ratio of non-performing loans to total portfolio loans | 0.80 | % | 0.74 | % | 0.64 | % | 0.54 | % | 0.48 | % | |||||||||
| Ratio of non-performing assets to total assets | 0.64 | % | 0.59 | % | 0.51 | % | 0.44 | % | 0.38 | % | |||||||||
| Ratio of allowance for credit losses to total non-performing loans | 188.26 | % | 200.24 | % | 231.09 | % | 274.33 | % | 306.85 | % | |||||||||
| Ratio of allowance for credit losses to total portfolio loans | 1.51 | % | 1.49 | % | 1.48 | % | 1.48 | % | 1.49 | % | |||||||||
| (1) | Non-performing loans include non-accrual loans and loans 90 days or more past due and still accruing interest. Non-performing assets include total non-performing loans and other real estate and repossessed assets, net. |
| INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data (continued) |
|||||||||||||||||
| Independent Bank Regulatory Capital Ratios: | |||||||||||||||||
| 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | Well Capitalized Minimum |
||||||||||||
| Tier 1 capital to average total assets | 9.46 | % | 9.67 | % | 9.43 | % | 9.36 | % | 9.19 | % | 5.00 | % | |||||
| Common equity tier 1 capital to risk-weighted assets | 11.17 | % | 11.45 | % | 11.43 | % | 11.24 | % | 11.33 | % | 6.50 | % | |||||
| Tier 1 capital to risk-weighted assets | 11.17 | % | 11.45 | % | 11.43 | % | 11.24 | % | 11.33 | % | 8.00 | % | |||||
| Total capital to risk-weighted assets | 12.43 | % | 12.70 | % | 12.68 | % | 12.49 | % | 12.58 | % | 10.00 | % | |||||
| Highpoint Community Bank Regulatory Capital Ratios: | |||||||||||||||||
| 9/30/2026 (2) | 6/30/2026 (1) | 3/31/2026 (1) | 12/31/2025 (1) | 9/30/2025 (1) | Well Capitalized Minimum |
||||||||||||
| Tier 1 capital to average total assets | 7.23 | % | 8.45 | % | 8.25 | % | 8.19 | % | 7.64 | % | 5.00 | % | |||||
| Common equity tier 1 capital to risk-weighted assets | 12.14 | % | 14.68 | % | 14.59 | % | 15.19 | % | 14.94 | % | 6.50 | % | |||||
| Tier 1 capital to risk-weighted assets | 12.14 | % | 14.68 | % | 14.59 | % | 15.19 | % | 14.94 | % | 8.00 | % | |||||
| Total capital to risk-weighted assets | 13.39 | % | 15.93 | % | 15.83 | % | 16.42 | % | 16.14 | % | 10.00 | % | |||||
| (1) | Ratios for periods prior to July 1, 2026 represent Highpoint Community Bank’s historical standalone regulatory capital ratios as reported prior to the acquisition and are included for informational purposes. |
| (2) | September 30, 2026 ratios are preliminary. |
Reconciliation of Non-GAAP Financial Measures
Independent Bank Corporation
Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends. Tangible common equity is used by the Company to measure the quality of capital. Tax-equivalent net interest income and net interest margin adjust for the tax-favored status of certain loans and securities, which improves comparability between taxable and tax-exempt assets. Net interest margin excluding acquisition-related accretion, and adjusted net income and adjusted diluted earnings per share excluding merger-related expenses, help investors compare core operating performance across periods without the effects of the HCB Financial Corp. acquisition. Pre-tax, pre-provision net revenue shows earnings capacity before tax and credit costs. These non-GAAP measures supplement, and are not a substitute for, measures calculated in accordance with GAAP, and may not be comparable to similarly titled measures used by other companies.
|
Net Interest Income and Net Interest Margin (1): |
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| Three months ended | ||||||||||||||||||||||||||||||
| 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | ||||||||||||||||||||||||||
| Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | |||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||
| As reported (GAAP) | $ | 55,257 | 3.79 | % | $ | 47,902 | 3.67 | % | $ | 46,855 | 3.61 | % | $ | 46,354 | 3.58 | % | $ | 45,361 | 3.51 | % | ||||||||||
| Add: taxable equivalent | 564 | 0.03 | 440 | 0.04 | 445 | 0.04 | 446 | 0.04 | 443 | 0.03 | ||||||||||||||||||||
| Taxable equivalent (non-GAAP) | 55,821 | 3.82 | 48,342 | 3.71 | 47,300 | 3.65 | 46,800 | 3.62 | 45,804 | 3.54 | ||||||||||||||||||||
| Less: Net accretion of HCB acquired loans | (852 | ) | (0.06 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||
| Less: Net accretion of HCB acquired securities | (80 | ) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| Excluding HCB acquisition-related purchase accounting accretion | $ | 54,889 | 3.76 | % | $ | 48,342 | 3.71 | % | $ | 47,300 | 3.65 | % | $ | 46,800 | 3.62 | % | $ | 45,804 | 3.54 | % | ||||||||||
| Nine months ended | |||||||||||||
| 9/30/2026 | 9/30/2025 | ||||||||||||
| Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | ||||||||||
| (Dollars in thousands) | |||||||||||||
| As reported (GAAP) | $ | 150,014 | 3.70 | % | $ | 133,661 | 3.50 | % | |||||
| Add: taxable equivalent adjustment | 1,449 | 0.03 | 1,339 | 0.04 | |||||||||
| Taxable equivalent (non-GAAP) | 151,463 | 3.73 | 135,000 | 3.54 | |||||||||
| Less: Net accretion of HCB acquired loans | (852 | ) | (0.02 | ) | — | — | |||||||
| Less: Net accretion of HCB acquired securities | (80 | ) | — | — | — | ||||||||
| Excluding HCB acquisition-related purchase accounting accretion | $ | 150,531 | 3.71 | % | $ | 135,000 | 3.54 | % | |||||
| (1) | Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%. |
| Pre-Tax, Pre-Provision Net Revenue (PPNR): | |||||||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||||||
| 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 9/30/2026 | 9/30/2025 | |||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||
| Income before income tax | $ | 21,499 | $ | 22,710 | $ | 20,230 | $ | 20,311 | $ | 21,176 | $ | 64,439 | $ | 60,980 | |||||||||||||
| Add back provision for credit losses | 4,807 | 2,717 | 362 | 1,923 | 1,991 | 7,886 | 4,212 | ||||||||||||||||||||
| PPNR | $ | 26,306 | $ | 25,427 | $ | 20,592 | $ | 22,234 | $ | 23,167 | $ | 72,325 | $ | 65,192 | |||||||||||||
|
Net Income and Diluted Earnings per Share Excluding After-Tax Merger Related Expenses |
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| Three months ended | |||||||||||||||||||||||||||||||||||||||
| 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | |||||||||||||||||||||||||||||||||||
| Net Income | Diluted EPS | Net Income | Diluted EPS | Net Income | Diluted EPS | Net Income | Diluted EPS | Net Income | Diluted EPS | ||||||||||||||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||||
| As reported (GAAP) | $ | 17,850 | $ | 0.80 | $ | 18,805 | $ | 0.90 | $ | 16,875 | $ | 0.81 | $ | 18,572 | $ | 0.89 | $ | 17,502 | $ | 0.84 | |||||||||||||||||||
| Add: after-tax merger related expenses | 2,799 | 0.12 | 368 | 0.02 | 299 | 0.02 | — | — | — | — | |||||||||||||||||||||||||||||
| Adjusted | $ | 20,649 | $ | 0.92 | $ | 19,173 | $ | 0.92 | $ | 17,174 | $ | 0.83 | $ | 18,572 | $ | 0.89 | $ | 17,502 | $ | 0.84 | |||||||||||||||||||
| Nine months ended | |||||||||||||||
| 9/30/2026 | 9/30/2025 | ||||||||||||||
| Net Income | Diluted EPS | Net Income | Diluted EPS | ||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||
| As reported (GAAP) | $ | 53,530 | $ | 2.51 | $ | 49,969 | $ | 2.38 | |||||||
| Add: after-tax merger related expenses | 3,466 | 0.16 | — | — | |||||||||||
| Adjusted | $ | 56,996 | $ | 2.67 | $ | 49,969 | $ | 2.38 | |||||||
| Tangible Common Equity Ratio | |||||||||||||||||||
| September 30, 2026 |
June 30, 2026 |
March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Common shareholders’ equity | $ | 577,296 | $ | 528,413 | $ | 510,553 | $ | 502,951 | $ | 490,742 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 50,219 | 28,300 | 28,300 | 28,300 | 28,300 | ||||||||||||||
| Other intangibles, net | 17,045 | 771 | 886 | 1,001 | 1,123 | ||||||||||||||
| Tangible common equity | 510,032 | 499,342 | 481,367 | 473,650 | 461,319 | ||||||||||||||
| Addition: | |||||||||||||||||||
| Accumulated other comprehensive loss for regulatory purposes | 67,216 | 50,544 | 55,226 | 51,891 | 54,833 | ||||||||||||||
| Tangible common equity excluding accumulated other comprehensive loss adjustments | $ | 577,248 | $ | 549,886 | $ | 536,593 | $ | 525,541 | $ | 516,152 | |||||||||
| Total assets | $ | 6,263,632 | $ | 5,663,841 | $ | 5,557,509 | $ | 5,505,720 | $ | 5,493,113 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 50,219 | 28,300 | 28,300 | 28,300 | 28,300 | ||||||||||||||
| Other intangibles, net | 17,045 | 771 | 886 | 1,001 | 1,123 | ||||||||||||||
| Tangible assets | 6,196,368 | 5,634,770 | 5,528,323 | 5,476,419 | 5,463,690 | ||||||||||||||
| Addition: | |||||||||||||||||||
| Net unrealized losses on available for sale securities and derivatives, net of tax | 67,216 | 50,544 | 55,226 | 51,891 | 54,833 | ||||||||||||||
| Tangible assets excluding accumulated other comprehensive loss adjustments | $ | 6,263,584 | $ | 5,685,314 | $ | 5,583,549 | $ | 5,528,310 | $ | 5,518,523 | |||||||||
| Common equity ratio | 9.22 | % | 9.33 | % | 9.19 | % | 9.14 | % | 8.93 | % | |||||||||
| Tangible common equity ratio | 8.23 | % | 8.86 | % | 8.71 | % | 8.65 | % | 8.44 | % | |||||||||
| Tangible common equity ratio excluding accumulated other comprehensive loss | 9.22 | % | 9.67 | % | 9.61 | % | 9.51 | % | 9.35 | % | |||||||||
| Tangible Common Equity per Share of Common Stock: | |||||||||||||||||||
| Common shareholders’ equity | $ | 577,296 | $ | 528,413 | $ | 510,553 | $ | 502,951 | $ | 490,742 | |||||||||
| Tangible common equity | $ | 510,032 | $ | 499,342 | $ | 481,367 | $ | 473,650 | $ | 461,319 | |||||||||
| Shares of common stock outstanding (in thousands) | 22,081 | 20,603 | 20,586 | 20,549 | 20,692 | ||||||||||||||
| Common shareholders’ equity per share of common stock | $ | 26.14 | $ | 25.65 | $ | 24.80 | $ | 24.48 | $ | 23.72 | |||||||||
| Tangible common equity per share of common stock | $ | 23.10 | $ | 24.24 | $ | 23.38 | $ | 23.05 | $ | 22.29 | |||||||||
The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets. Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.
| Contact: | William B. Kessel, President and CEO, 616.447.3933 Gavin A. Mohr, Chief Financial Officer, 616.447.3929 |
