Independent Bank Corporation · NASDAQ:IBCP
Independent Bank — Q4 2025 Earnings Presentation
29 slides from Independent Bank's earnings presentation, Jan 22, 2026
Slide 1: Earnings Call: Fourth Quarter 2025
Earnings Call: Fourth Quarter 2025 January 22, 2026 (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: 4Q'25 Overview
4Q'25 Overview • Total loans increased 7.4% 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 sound with NPAs/Total Assets at 0.44% and NC
Slide 5: Low-Cost Deposit Franchise Focused on Core Deposit Growth
Non-interest Bearing 21% Savings and Interest- bearing Checking 44% Reciprocal 20% Time 14% Brokered 0% $ 4 .6 $ 4 .6 $ 4 .6 $ 4 .6 $ 4 .6 $ 4 .7 $ 4 .6 $ 4 .7 $ 4 .9 $ 4 .8 1 .8 0 % 1 .9 9 % 2 .0 1 % 2 .0 3 % 2 .1 1 % 1 .9 3 % 1 .8 0 % 1 .7 7 % 1 .8 2 % 1 .6 7 % Q 3 '2 3 Q 4 '2 3 Q 1 '2 4 Q 2 '2 4
Slide 6: Historic IBC Cost of Funds
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 .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 .
Slide 7: Diversified Loan Portfolio Focused on High Quality Growth
Commercial 52% Mortgage 36% Installment 13% Held for Sale 1% $ 3 .7 $ 3 .8 $ 3 .8 $ 3 .9 $ 3 .9 $ 4 .0 $ 4 .1 $ 4 .2 $ 4 .2 $ 4 .3 5 .5 3 % 5 .7 3 % 5 .8 0 % 5 .9 3 % 5 .9 6 % 5 .8 3 % 5 .7 4 % 5 .7 6 % 5 .8 1 % 5 .6 4 % 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
Slide 8: Concentrations within $2.2B Commercial Loan Portfolio
8.76%, Commercial Industrial, $202 4.68%, Multifamily, $141 4.47%, Retail, $101 4.17%, Office, $101 3.37%, Construction, $70 2.20%, 1-4 Family, $47 1.27%, Special Purpose, $41 1.14%, Land, Vacant Land and Development, $26 Concentrations within $2.2B Commercial Loan Portfolio C&I or Owner Occupied Lo
Slide 9: Asset Quality
$5.1 $3.7 $5.2 $6.0 $7.1 $8.2 $20.4 $23.1 $0.2 $0.5 $0.6 $0.9 $0.4 $0.4 $0.6 $0.9 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2021 2022 2023 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 Non-performing Loans 90+ Days PD ORE/ORA $2.3 $3.1 $3.3 $7.0 $3.9 $6.6 $5.1 $7.8 0.1% 0.1% 0.1% 0.2% 0.1% 0.2% 0.1% 0.2% 0.0% 0.2% 0.4%
Slide 10: Strong Capital Position
14.3 14.2 14.5 14.2 13.7 13.6 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 11.2 11.2 11.4 11.4 11.6 11.5 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 9.6 9.9 9.9 10.1 10.1 10.2 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 8.1 8.0 8.3 8.2 8.4 8.7 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 • Long-term capital Priorities: Capital reten
Slide 11: Net Interest Margin/Income
$ 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 $ 4 6 .4 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 Q4'25 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
Slide 12: Linked Quarter Analysis
3Q'25 3.54% Change in Earning Asset Yield/Mix -0.13% Change in Int Bearing Liability Mix 0.09% Decrease in Funding Costs 0.13% Int Charge-off on Commercial Loan -0.01% 4Q'25 3.62% 4Q'25 NIM Changes Linked Quarter Average Balances and FTE Rates ($ in thousands) Linked Quarter Analysis 12 4Q25 3Q25 Ch
Slide 13: Interest Rate Risk Management
December 31, 2025 -200 -100 Base-rate 100 200 Net Interest Income $191,340 $194,101 $196,298 $198,944 $202,205 Change from Base -2.53% -1.12% 1.35% 3.01% September 30, 2025 -200 -100 Base-rate 100 200 Net Interest Income $188,085 $190,263 $192,535 $195,562 $198,049 Change from Base -2.31% -1.18% 1.5
Slide 14: Strong Non-interest Income
Interchange income $3,186 Service Chg Dep $3,096 Gain (Loss)- Mortgage Sale $1,372 Equity Securities at Fair Value $- Gain (Loss)- Securities $(15) Mortgage loan servicing, net $899 Investment & insurance commissions $1,006 Bank owned life insurance $306 Other income $2,108 Strong Non-interest Incom
Slide 15: Focus on Improved Efficiency
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 % 6 0 .0 % 6 0 .5 % 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 4 Q '2 5 $ 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 $
Slide 16: 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 17: Outlook for 2025
Outlook for 2025 Outlook for 2025 *as of January, 2026 • 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 18: Outlook for 2026
Outlook for 2026 Outlook for 2026 *as of January, 2026 • IBCP forecast of approximately 4.5%-5.5% overall loan growth is based on an increase in commercial loans (9%-11%) with mortgage loans (0%-1%) and installment loans declining (5.0%-5.5%). • This growth forecast also assumes a stable Michigan ec
Slide 19: Outlook for 2026
Outlook for 2026 Outlook for 2026 *as of January, 2026 • Quarterly 2026 forecasted range of $11.0M to $13.0M. Full year up 3.0% to 4.0% from 2025 actual of $45.6M • Expect mortgage loan origination volumes to be down 6.0% to 7.0% and net gain on sale to be down 14.0% to 16.0% compared to full year 2
Slide 20: Strategic Initiatives
Strategic Initiatives • Outside Sales - Relationship banking focus thru consistent calling on prospects and COI’s. • Inside Service/Sales – high retention + high cross sales, collaboration of strategic partners. • Digital Marketing - Leverage data insights, target strategically, elevate brand image,
Slide 21: Question and Answer Session, Closing Remarks
Question and Answer Session Closing Remarks NASDAQ: IBCP Thank you for attending 21
Slide 22: Appendix: Additional Financial Data and Non-GAAP Reconciliations
Appendix Additional Financial Data and Non-GAAP Reconciliations 22
Slide 23: Historical Financial Data
Historical Financial Data 23 Year Ended December 31, Quarter Ended, ($M except per share data) 2022 2023 2024 2025 12/31/24 3/31/25 6/1/25 9/30/25 12/31/25 Balance Sheet: Total Assets $5,000 $5,264 $5,338 $5,506 $5,338 $5,328 $5,419 $5,493 $5,506 Portfolio Loans $3,465 $3,791 $4,039 $4,276 $4,039 $4
Slide 24: Historic Financial Performance
24 Historic Financial Performance Year Ended December 31, ($M except per share data) 2020 2021 2022 2023 2024 2025 5 Year CAGR Balance Sheet: Total Assets $4,204 $4,705 $5,000 $5,264 $5,338 $5,506 5.5% Portfolio Loans $2,734 $2,905 $3,465 $3,791 $4,039 $4,276 9.4% Deposits $3,637 $4,117 $4,379 $4,62
Slide 25: Sources of Liquidity
Sources of Liquidity ($ in Millions) 4Q 2025 Current On-balance sheet Excess reserves at the Fed $ 86.2 Unpledged AFS Securities $ 489.9 Total On-balance sheet $ 576.1 On balance sheet liquidity to total deposits 11% Available Sources of Liquidity Unused FHLB & FRB (including BTFP) $ 2,005.5 Borrow
Slide 26: Granular Deposit Base
$1,996 $1,141 $430 $19 $259 $592 $325 $2,255 $1,733 $755 $19 Consumer Commercial Public Funds Brokered Insured Deposits Uninsured Deposits $ 3 ,6 3 6 $ 3 ,5 7 0 $ 3 ,5 9 4 $ 3 ,5 8 6 $ 3 ,6 3 7 $ 3 ,7 2 0 $ 3 ,5 8 6 $978 $1,057 $1,060 $1,048 $1,022 $1,139 $1,176 $4,614 $4,627 $4,654 $4,634 $4,659 $4
Slide 27: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation 27 December 31, September 30, June 30, March 31, December 31, 2025 2024 2023 2022 2025 2025 2025 2025 2024 Net interest income $180,015 $166,248 $156,329 $149,561 $46,354 $45,361 $44,615 $43,685 $42,851 Non-interest income 45,644 56,362 50,676 61,909 11,958 11,937 11,
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 28 Reconciliation of Non-GAAP Financial Measures 2025 2024 2025 2024 Net Interest Margin, Fully Taxable Equivalent ("FTE") Net interest income 46,354$ 42,851$ 180,015$ 166,248$ Add: taxable equivalent adjustment 446 389 1,785 902 Net interest income - ta
Slide 29: Reconciliation of Non-GAAP Financial Measures (continued)
Reconciliation of Non-GAAP Financial Measures (continued) 29 Reconciliation of Non-GAAP Financial Measures (continued) Independent Bank Corporation Tangible Common Equity Ratio December 31, Sepetmber 30, June 30, March 31, December 31, 2025 2024 2023 2022 2025 2025 2025 2025 2024 Common shareholders