Independent Bank Corporation · NASDAQ:IBCP
Independent Bank — July 2025 Investor Conference
48 slides from Independent Bank's conference presentation, Jul 28, 2025
Slide 1: July 2025 Investor Conference
(NASDAQ: IBCP) July 2025 Investor Conference
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: Independent Bank Corporation
Independent Bank Corporation 3 years of excellence. Founded in the year 1864 $5.4 B in total assets Over 160 Over 58 offices throughout Michigan’s lower peninsula IBCP is a Fed Member, State Chartered Financial Institution Regulatory Structure 62% of Grand Rapids Companies report increased sales in
Slide 4: IBC Board of Directors
4IBC Board of Directors • Director Since: 2013 • President & CEO of IBC and Independent Bank • Director Since: 2019 • Founder & CEO of OpTech, LLC and OpTech Solutions • Member of the Audit Committee • Director Since: 2016 • CEO and Chair of the Board of Directors of Cascade Engineering Family of Co
Slide 5: IBC Executive Management Team
5IBC Executive Management Team • CEO of IBC and Independent Bank since 2013 • Joined Independent Bank in 1994 • Began career with Crowe William B. Kessel President, CEO & Director • Joined Independent Bank in 2020 as EVP and Chief Financial Officer • Previously SVP, Chief Financial Officer of STAR F
Slide 6: CEO quote on being independent
6 “"When I think of Independent Bank, I'm reminded of our dedication to inspiring financial independence and being Michigan's most people-focused bank, driven by teamwork, courage, and drive. Our future priorities include digital advancements and team investment for sustained growth. I am proud to B
Slide 7: Mission and Values
Mission Inspiring financial independence today, with tomorrow in mind. A future where people approach their finances with confidence, clarity, and the determination to succeed. Values Courage Drive Integrity People-Focus Teamwork Be Independent”
Slide 8: Franchise Overview and Growth Strategies
Franchise Overview and Growth Strategies
Slide 9: Our Wingspan
9 Our Wingspan 57 Branches Over 800 Employees Over 200K Customers Top 10 Market share in 20 of 25 Counties of operation #1 deposit market share amongst banks headquartered in MI Over
Slide 10: Franchise Highlights
10Franchise Highlights • Highly profitable franchise built upon the foundation of a low-cost deposit base and exceptional credit quality • Proven track record of strong performance has resulted in 12 consecutive years of dividend increases • Diverse revenue mix with non-interest income accounting fo
Slide 11: A Diverse Portfolio
11 A Diverse Portfolio $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2019 2020 2021 2022 2023 2024 6.30.25 Commercial Mortgage Consumer COMMERCIAL • Driving organic growth, capitalizing on market disruption, executing a highly successful multi-year talent a
Slide 12: Presence by Region
Data as of June 30, 2025. Note: Loan and deposit balances exclude the loans and deposits (such as brokered deposits) that are not clearly allocable to a certain market region. Loans specifically exclude: $216 million of Ohio mortgage loans, $24 million of resort loans and $5 million of purchased mor
Slide 13: Proven Track Record
13Proven Track Record EPS 5-year compounded growth rate 9.6% ROA 5-year average 1.32% ROE 5-year average 15.93 % DIVIDEND 5.9% 5-year compounded growth rate 8.4% 5-year compounded growth rate of pre- tax/pre-provision 12 Consecutive years of increased dividend 87.0$ returned to shareholders since 20
Slide 14: Track Record of Consistent Growth & Profitability
14Track Record of Consistent Growth & Profitability BALANCE SHEET 2019 2020 2021 2022 2023 2024 5-Year CAGR Total Assets $3,565 $4,204 $4,705 $5,000 $5,264 $5,338 8.4% Portfolio Loans $2,725 $2,734 $2,905 $3,465 $3,791 $4,039 8.2% Deposits $3,037 $3,637 $4,117 $4,379 $4,623 $4,654 8.9% Tangible Comm
Slide 15: Total Shareholder Return
15Total Shareholder Return Group # 1-Yr 3-Yr 5-Yr 10-Yr Proxy Peers 20 20.6% 25.3% 77.0% 148.0% KBW Regional Index 50 20.9% 19.2% 87.5% 75.4% $3.0B - $6.0B Nationally 61 23.5% 26.4% 75.9% 121.2% S&P 500 503 15.2% 71.5% 115.9% 259.4% IBCP 23.7% 89.0% 167.3% 234.1% 15 Total Return
Slide 16: Over 160 Years of Financial Independence
16 Over 160 Years of Financial Independence
Slide 17: Formula for Success
17Formula for Success Financial Key Strategies, that will create value Drivers of Bank Stock Value (TSR): • Proactive investor relations program 1. EPS Growth • Stable, reoccurring, and growing revenue stream 2. TBV Growth • Above peer average 3. Dividend Growth • Consistent and reliable Drivers of
Slide 18: Formula for Success (continued)
18Formula for Success Financial Key Strategies, that will create value Secondary (Our Foundation): 7. Credit Quality • Proactive credit quality and problem resolution • Maintain strong reserve levels 8. Capital • Effective capital and IRR management 9. Liquidity • Remixing of asset base, running off
Slide 19: Recognized For Our Efforts
19Recognized For Our Efforts SM-All Star for 2024 Community Bankers Cup - 2024 - Forbes Best in-State Bank 2018, 2019, 2023, 2024, 2025 Great Place to Work 2023, 2024, 2025 Raymond James Community Bankers Cup 2024 Piper Sandler SM-All Star 2024 MSHDA Top 10 Lender Award 2017 MasterCard Community Ins
Slide 20: What They're Saying
WHAT THEY’RE SAYING ( SY NET PROMOTER SCORE OF 68.5 | 100TH PERCENTILE IN THE BANKING INDUSTRY =z (@) N= _— ej 32.0 68.5 700 Wwe) | | et Industry Average Independent Bank Banking App j Star Rated SING «= FALL. «SPRING «FALL SPRING «FALL. SPRING se ae sk * sc 2021 2022 2022 2023 2023 2024 2024 2025 @
Slide 21: Michigan at a Glance
21 Michigan at a Glance 10.1 Million Population Top 10 Research & Development ~5.4% Unemployment Over 890k Businesses in MI $706.6 Billion 2024 GDP Source: USAFacts $99.2 Billion Manufacturing share of GDP, 2024 Source: U.S. Bureau of Economic Analysis Source: Bureau of Labor Statistics Source: Will
Slide 22: Why Do Business In Michigan
22 #1 Ranking in Automotive Investment Business Facilities #1 State for fastest foreign direct investment job growth Global Business Alliance #1 State for energy-sector job growth U.S. Energy & Employment Jobs Report #8 Best state to start a career BestColleges Top 10 State for Business CNBC Top 10
Slide 23: Michigan deposit market share
23 JPMorgan Chase & Co. NY 154 56,827,097 Comerica Inc. TX 137 37,633,212 Flagstar Financial Inc. NY 75 32,017,223 Huntington Bancshares Inc. OH 206 29,919,295 Bank of America Corp. NC 72 28,424,014 PNC Financial Services Group Inc. PA 96 18,078,812 Fifth Third Bancorp OH 126 16,524,410 Citizens Fin
Slide 24: Second Quarter 2025 Results
Second Quarter 2025 Results (NASDAQ: IBCP)
Slide 25: 2Q'25 Overview
2Q'25 Overview • Total loans increased 9.0% 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 0.16%
Slide 26: Low-Cost Deposit Franchise Focused on Core Deposit Growth
Non-interest Bearing 22% Savings and Interest- bearing Checking 43% Reciprocal 20% Time 13% Brokered 3% $ 4 .5 $ 4 .5 $ 4 .6 $ 4 .6 $ 4 .6 $ 4 .6 $ 4 .6 $ 4 .7 $ 4 .6 $ 4 .7 1 .2 6 % 1 .5 7 % 1 .8 0 % 1 .9 9 % 2 .0 1 % 2 .0 3 % 2 .1 1 % 1 .9 3 % 1 .8 0 % 1 .7 7 % Q 1 '2 3 Q 2 '2 3 Q 3 '2 3 Q 4 '2 3
Slide 27: Historic IBC Cost of Funds vs. Federal Funds Rate
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 .1 1 % 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 % 0 500,000 1,000,000 1,500,000
Slide 28: Diversified Loan Portfolio Focused on High Quality Growth
$ 3 .5 $ 3 .6 $ 3 .7 $ 3 .8 $ 3 .8 $ 3 .9 $ 3 .9 $ 4 .0 $ 4 .1 $ 4 .2 5 .0 7 % 5 .3 6 % 5 .5 3 % 5 .7 3 % 5 .8 0 % 5 .9 3 % 5 .9 6 % 5 .8 3 % 5 .7 4 % 5 .7 6 % 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 Total Portfolio Loans Yield on Loans Diversified L
Slide 29: Concentrations within Commercial Loan Portfolio
8.83%, Commercial Industrial, $183 4.44%, Construction, $92 4.89%, Retail, $101 3.98%, Office, $82 3.53%, Multifamily, $73 2.13%, 1-4 Family, $44 1.27%, Land, Vacant Land and Development, $26 1.09%, Special Purpose, $23 Concentrations within $2.1B Commercial Loan Portfolio C&I or Owner Occupied Loan
Slide 30: Asset quality
$ 7 .9 $ 5 .1 $ 3 .7 $ 5 .2 $ 4 .5 $ 5 .1 $ 6 .0 $ 7 .1 $ 8 .2 $0.8 $0.2 $0.5 $0.6 $0.9 $0.8 $0.9 $0.4 $0.4 $- $2.0 $4.0 $6.0 $8.0 $10.0 2020 2021 2022 2023 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 Non-performing Loans 90+ Days PD ORE/ORA $13.2 $2.3 $3.1 $3.3 $5.3 $4.8 $7.0 $3.9 $6.6 0.5% 0.1% 0.1% 0.1% 0.1% 0
Slide 31: Strong Capital Position
13.9 14.2 14.3 14.2 14.5 14.2 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 10.7 11.1 11.2 11.2 11.4 11.4 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 9.3 9.6 9.6 9.9 9.9 10.0 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 7.4 7.6 8.1 8.0 8.3 8.2 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 • Long-term capital Priorities: Capital retenti
Slide 32: Net Interest Margin/Income
$ 3 4 .3 $ 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 Q4'21 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 3.02 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
Slide 33: Average balances, yields and costs
2Q25 1Q25 Change Avg Bal Inc/Exp Yield Avg Bal Inc/Exp Yield Avg Bal Inc/Exp Yield Cash $45,468 $505 4.45% $117,706 $1,291 4.45% ($72,238) ($786) 0.01% Investments 861,851 7,265 3.37% 899,949 7,515 3.34% (38,098) (250) 0.03% Commercial loans 2,031,778 33,446 6.60% 1,962,046 31,710 6.55% 69,732 1,736
Slide 34: Interest Rate Risk Management
June 30, 2025 -200 -100 Base-rate 100 200 Net Interest Income $184,556 $185,650 $187,528 $190,443 $192,391 Change from Base -1.58% -1.00% 1.55% 2.59% March 31, 2025 -200 -100 Base-rate 100 200 Net Interest Income $182,199 $182,549 $183,705 $185,907 $187,279 Change from Base -0.82% -0.63% 1.20% 1.95%
Slide 35: Strong Non-interest Income
Interchange income $3,390 Service Chg Dep $2,981 Gain (Loss)- Mortgage Sale $1,631 Equity Securities at Fair Value $- Gain (Loss)- Securities $11 Mortgage loan servicing, net $490 Investment & insurance commissions $810 Bank owned life insurance $296 Other income $1,716 $ 1 0 .5 $ 1 5 .4 $ 1 5 .6 $
Slide 36: Focus on Improved Efficiency
5 9 .8 % 6 0 .4 % 5 9 .6 % 5 9 .9 % 6 0 .7 % 6 0 .3 % 6 0 .9 % 6 2 .2 % 6 0 .9 % 6 1 .4 % 6 0 .9 % 4 Q '2 2 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 2 .2 $ 3 2 .0 $ 3 1 .9 $ 3 2 .2 $ 3 3 .3 $ 3 2 .6 $ 3 4 .3 $ 3 3 .8 $— $5.0 $10.0 $15.0 $20.0 $25.
Slide 37: Outlook for 2025
Outlook for 2025 Outlook for 2025 *as of January, 2025 • IBCP forecast of mid-single digit (approximately 5%-6%) overall loan growth is based on increases in commercial loans (9%-10%) and mortgage loans (2%-3%) with installment loans declining (2%-3%). • This growth forecast also assumes a stable Mi
Slide 38: Outlook for 2025 (continued)
Outlook for 2025 Outlook for 2025 *as of January, 2025 • Q1/Q2 quarterly 2025 forecasted range of $11.0M to $12.0M and Q3/Q4 forecast of $12.0M to $13M. Full year down 14.0% to 14.5% from 2024 actual of $56.4M • Expect mortgage loan origination volumes and net gain on sale to be similar to 2024. Ass
Slide 39: Strategic Initiatives
Strategic Initiatives • Outside Sales - Relationship banking focus thru consistent calling on prospects and COI’s. • Inside Service/Sales – high retention + high cross sales, collaboration of strategic partners. • Digital Marketing - Leverage data insights, target strategically, elevate brand image,
Slide 40: Appendix: Additional Financial Data and Non-GAAP Reconciliations
Appendix Additional Financial Data and Non-GAAP Reconciliations 40
Slide 41: Historical Financial Data
Historical Financial Data 41 here Year Ended December 31, Quarter Ended, ($M except per share data) 2021 2022 2023 2024 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 Balance Sheet: Total Assets $4,705 $5,000 $5,264 $5,338 $5,278 $5,259 $5,338 $5,328 $5,419 Portfolio Loans $2,905 $3,465 $3,791 $4,039 $3,8
Slide 42: Historic Financial Performance
42 Historic Financial Performance Year Ended December 31, ($M except per share data) 2019 2020 2021 2022 2023 2024 5 Year CAGR Balance Sheet: Total Assets $3,565 $4,204 $4,705 $5,000 $5,264 $5,338 8.4% Portfolio Loans $2,725 $2,734 $2,905 $3,465 $3,791 $4,039 8.2% Deposits $3,037 $3,637 $4,117 $4,37
Slide 43: Sources of Liquidity
Sources of Liquidity 2Q 2025 Current On-balance sheet Excess reserves at the Fed $ 71.8 Unpledged AFS Securities $ 503.6 Total On-balance sheet $ 575.4 On balance sheet liquidity to total deposits 14% Available Sources of Liquidity Unused FHLB & FRB (including BTFP) $ 1,504.0 Borrow capacity on unpl
Slide 44: Granular Deposit Base
$1,967 $1,120 $428 $122 $231 $518 $273 $2,198 $1,638 $701 $122 Consumer Commercial Public Funds Brokered Insured Deposits Uninsured Deposits $ 3 ,6 6 1 $ 3 ,6 0 5 $ 3 ,6 3 6 $ 3 ,5 7 0 $ 3 ,5 9 4 $ 3 ,5 8 6 $ 3 ,6 3 7 $962 $977 $978 $1,057 $1,060 $1,048 $1,022 $4,623 $4,582 $4,614 $4,627 $4,654 $4,6
Slide 45: CRE – Office Metrics
CRE – Office Metrics • 18.0% of portfolio is medical office buildings. • 78% of portfolio is in suburban geographies. • 64.8% of CRE – Office mature after 2028. • Average loan size of $1.4 million. Maturing Exposure (millions) CRE - Office Fixed vs. Variable Geographic Location (millions) 45 Urban S
Slide 46: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation 46 June 30, March 31, December 31, September 30, June 30, 2024 2023 2022 2021 2025 2025 2024 2024 2024 Net interest income $166,248 $156,329 $149,561 $129,765 $44,615 $43,685 $42,851 $41,854 $41,346 Non-interest income 56,362 50,676 61,909 76,643 11,325 10,424 19,121
Slide 47: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 47 Reconciliation of Non-GAAP Financial Measures 2025 2024 2025 2024 Net Interest Margin, Fully Taxable Equivalent ("FTE") Net interest income 44,615$ 41,346$ 88,300$ 81,543$ Add: taxable equivalent adjustment 444 175 896 355 Net interest income - taxabl
Slide 48: Reconciliation of Non-GAAP Financial Measures (continued)
Reconciliation of Non-GAAP Financial Measures (continued) 48 Tangible Common Equity Ratio June 30, March 31, December 31, September 30, June 30, 2024 2023 2022 2021 2025 2025 2024 2024 2024 Common shareholders' equity 454,686$ 404,449$ 347,596$ 398,484$ 469,250$ 467,277$ 454,686$ 452,369$ 430,459$ L