Independent Bank Corporation · NASDAQ:IBCP
Independent Bank — Q3 2025 Earnings Presentation
27 slides from Independent Bank's earnings presentation, Oct 28, 2025
Slide 1: Earnings Call: Third Quarter 2025
Earnings Call: Third Quarter 2025 October 28, 2025 (NASDAQ: IBCP)
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plan
Slide 3: Agenda
• Formal Remarks − William B. (Brad) Kessel President and Chief Executive Officer − Gavin A. Mohr Executive Vice President and Chief Financial Officer − Joel F. Rahn Executive Vice President – Commercial Banking • Question and Answer session • Closing Remarks Note: This presentation is available at
Slide 4: 3Q'25 Overview
3Q'25 Overview • Total loans increased 3.2% annualized while maintaining a disciplined approach to new loan production • New loan production continues to be largely focused on new commercial clients that bring deposits to the bank • Asset quality remained exceptional with NPAs/Total Assets at 0.38%
Slide 5: Low-Cost Deposit Franchise Focused on Core Deposit Growth
Non-interest Bearing 21% Savings and Interest- bearing Checking 42% Reciprocal 20% Time 14% Brokered 4% $4 .5 $4 .6 $4 .6 $4 .6 $4 .6 $4 .6 $4 .7 $4 .6 $4 .7 $4 .9 1. 5 7 % 1. 8 0 % 1. 9 9% 2. 0 1% 2. 0 3% 2. 11 % 1. 9 3% 1. 8 0% 1. 7 7% 1. 8 2% Q 2' 23 Q 3' 23 Q 4' 23 Q 1' 24 Q 2' 24 Q 3' 24 Q 4' 2
Slide 6: Historic IBC Cost of Funds vs. the Fed Funds Rate
0. 2 5% 0. 2 7% 0. 2 7% 0. 2 8% 0. 3 3% 0. 3 6% 0. 4 2% 0. 5 1% 0. 6 0% 0. 7 3% 0. 8 2% 0. 8 5% 0. 8 5% 0. 7 4% 0. 6 3% 0. 3 0% 0. 2 3% 0. 3 9% 0. 1 4% 0. 1 2% 0. 11 % 0. 1 0% 0. 1 0% 0. 1 2% 0. 3 3% 0. 7 9% 1. 2 5% 1. 5 7% 1. 8 0% 1. 9 9% 2. 0 1% 2. 0 2% 2. 1 0% 1. 9 2% 1. 8 0% 1. 7 6% 1. 8 2% 0 50
Slide 7: Diversified Loan Portfolio Focused on High Quality Growth
Commercial 50% Mortgage 36% Installment 13% Held for Sale 1% $3 .6 $3 .7 $3 .8 $3 .8 $3 .9 $3 .9 $4 .0 $4 .1 $4 .2 $4 .2 5. 36 % 5. 53 % 5. 73 % 5. 80 % 5. 93 % 5. 96 % 5. 83 % 5. 74 % 5. 76 % 5. 81 % 2 Q '2 3 3 Q '2 3 4 Q '2 3 1 Q '2 4 2 Q '2 4 3 Q '2 4 4 Q '2 4 1 Q '2 5 2 Q '2 5 3 Q '2 5 Total Por
Slide 8: Concentrations within $2.1B Commercial Loan Portfolio
8.76%, Commercial Industrial, $186 4.68%, Retail, $100 4.47%, Office, $95 4.17%, Constructi on, $89 3.37%, Multifamily, $72 2.20%, 1-4 Family, $47 1.27%, Land, Vacant Land and Development, $27 1.14%, Special Purpose, $24 Concentrations within $2.1B Commercial Loan Portfolio C&I or Owner Occupied Loa
Slide 9: Asset Quality
$5.1 $3.7 $5.2 $5.1 $6.0 $7.1 $8.2 $20.4 $0.2 $0.5 $0.6 $0.8 $0.9 $0.4 $0.4 $0.6 $- $5.0 $10.0 $15.0 $20.0 $25.0 2021 2022 2023 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 Non-performing Loans 90+ Days PD ORE/ORA $2.3 $3.1 $3.3 $4.8 $7.0 $3.9 $6.6 $5.1 0.1% 0.1% 0.1% 0.1% 0.2% 0.1% 0.2% 0.1% 0.0% 0.2% 0.4% 0.6% 0
Slide 10: Strong Capital Position
14.2 14.3 14.2 14.5 14.2 13.7 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 11.1 11.2 11.2 11.4 11.4 11.6 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 9.6 9.6 9.9 9.9 10.1 10.1 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 7.6 8.1 8.0 8.3 8.2 8.4 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 • Long-term capital Priorities: Capital retent
Slide 11: Net Interest Margin/Income
$3 3 .0 $3 6 .1 $3 9 .9 $4 0 .6 $3 8 .4 $3 8 .4 $3 9 .4 $4 0 .1 $4 0 .2 $4 1 .3 $4 1 .9 $4 2 .9 $4 3 .7 $4 4 .6 $4 5 .4 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 3.18 3.13 3.00 3.26 3.49 3.52 3.33 3.26 3.23 3.26 3.30 3.40 3.37 3.45 3.49 3.58 3.54 0.08
Slide 12: Net Interest Margin Change and Yield Detail
3.58%2Q'25 0.02%Change in Earning Asset Yield/Mix 0.01%Increase in Earnings Asset Yield -0.04%Increase in funding costs -0.03%Deferred Cost on Sub Debt Payoff 3.54%3Q'25 Change2Q253Q25 YieldInc/ExpAvg BalYieldInc/ExpAvg BalYieldInc/ExpAvg Bal -0.05%$756 $68,192 4.45%$505 $45,468 4.40%$1,261 $113,660
Slide 13: Interest Rate Risk Management
September 30, 2025 200100Base-rate -100-200 $198,049 $195,562 $192,535 $190,263 $188,085 Net Interest Income 2.86%1.57%-1.18%-2.31%Change from Base June 30, 2025 200100Base-rate -100-200 $192,391 $190,443 $187,528 $185,650 $184,556 Net Interest Income 2.59%1.55%-1.00%-1.58%Change from Base Interest
Slide 14: Strong Non-interest Income
Interchange income $4,157 Service Chg Dep $3,131 Gain (Loss)- Mortgage Sale $1,474 Equity Securities at Fair Value $- Gain (Loss)- Securities $(36) Mortgage loan servicing, net $74 Investment & insurance commissions $940 Bank owned life insurance $288 Other income $1,909 Strong Non-interest Income •
Slide 15: Focus on Improved Efficiency
60 .4 % 59 .6 % 59 .9 % 60 .7 % 60 .3 % 60 .9 % 62 .2 % 60 .9 % 61 .4 % 60 .9 % 60 .0 % 1 Q '2 3 2 Q '2 3 3 Q '2 3 4 Q '2 3 1 Q '2 4 2 Q '2 4 3 Q '2 4 4 Q '2 4 1 Q '2 5 2 Q '2 5 3 Q '2 5 $3 2. 0 $3 1. 9 $3 2. 2 $3 3. 3 $3 2. 6 $3 4. 3 $3 3. 8 $3 4. 1 $— $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 Q 3 '
Slide 16: Outlook for 2025
Outlook for 2025 • Very difficult area to forecast. Future provision levels under CECL will be particularly sensitive to loan growth and mix, projected economic conditions, watch credit levels and loan default volumes. • The allowance as a percentage of total loans was at 1.47% at 12/31/24 • A full
Slide 17: Outlook for 2025
Outlook for 2025 • 2025 share repurchase authorization at approximately 5% (1.1 million) of outstanding shares. • Share repurchases will be dependent on capital levels, capital allocation options and share price trends. We are not modeling any share repurchases in 2025. • Approximately a 19% effecti
Slide 18: Strategic Initiatives
Strategic Initiatives • Outside Sales - Relationship banking focus thru consistent calling on prospects and COI’s. • Inside Service/Sales – high retention + high cross sales, collaboration of strategic partners. • Digital Marketing - Leverage data insights, target strategically, elevate brand image,
Slide 19: Question and Answer Session, Closing Remarks
Question and Answer Session Closing Remarks NASDAQ: IBCP Thank you for attending 19
Slide 20: Appendix: Additional Financial Data and Non-GAAP Reconciliations
Appendix Additional Financial Data and Non-GAAP Reconciliations 20
Slide 21: Quarterly Financial Summary
Quarter Ended,Year Ended December 31,here 9/30/256/30/253/31/2512/31/249/30/242024202320222021($M except per share data) Balance Sheet: $5,493 $5,419 $5,328 $5,338 $5,259 $5,338 $5,264 $5,000 $4,705 Total Assets $4,198 $4,164 $4,073 $4,039 $3,942 $4,039 $3,791 $3,465 $2,905 Portfolio Loans $4,859 $4
Slide 22: Historic Financial Performance
22 Historic Financial Performance Year Ended December 31, 5 Year CAGR202420232022202120202019($M except per share data) Balance Sheet: 8.4%$5,338 $5,264 $5,000 $4,705 $4,204 $3,565 Total Assets 8.2%$4,039 $3,791 $3,465 $2,905 $2,734 $2,725 Portfolio Loans 8.9%$4,654 $4,623 $4,379 $4,117 $3,637 $3,03
Slide 23: Strong Liquidity Position
Sources of Liquidity 3Q 2025 Current On-balance sheet $ 152.3 Excess reserves at the Fed $ 496.5 Unpledged AFS Securities $ 648.8 Total On-balance sheet 13%On balance sheet liquidity to total deposits Available Sources of Liquidity $ 1,620.9 Unused FHLB & FRB (including BTFP) $ 437.3 Borrow capacity
Slide 24: Granular Deposit Base
$1,949 $1,133 $465 $173 $242 $578 $319 $2,191 $1,711 $784 $173 Consumer Commercial Public Funds Brokered Insured Deposits Uninsured Deposits $3 ,6 05 $3 ,6 36 $3 ,5 70 $3 ,5 94 $3 ,5 86 $3 ,6 37 $3 ,7 20 $977 $978 $1,057 $1,060 $1,048 $1,022 $1,139 $4,582 $4,614 $4,627 $4,654 $4,634 $4,659 $4,859 1Q
Slide 25: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation 25 September 30, June 30, March 31, December 31, September 30, 2024 2023 2022 2021 2025 2025 2025 2024 2024 Net interest income $166,248 $156,329 $149,561 $129,765 $45,361 $44,615 $43,685 $42,851 $41,854 Non-interest income 56,362 50,676 61,909 76,643 11,937 11,325 10
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 26 Reconciliation of Non-GAAP Financial Measures 2025 2024 2025 2024 Net Interest Margin, Fully Taxable Equivalent ("FTE") Net interest income 45,361$ 41,854$ 133,661$ 123,397$ Add: taxable equivalent adjustment 443 158 1,339 513 Net interest income - ta
Slide 27: Reconciliation of Non-GAAP Financial Measures (continued)
Reconciliation of Non-GAAP Financial Measures (continued) 27 Reconciliation of Non-GAAP Financial Measures (continued) Independent Bank Corporation Tangible Common Equity Ratio Sepetmber 30, June 30, March 31, December 31,September 30, 2024 2023 2022 2021 2025 2025 2025 2024 2024 Common shareholders