Independent Bank Corporation · NASDAQ:IBCP
Independent Bank — Q2 2026 Earnings Presentation
27 slides from Independent Bank's earnings presentation, Jul 23, 2026
Slide 1: Earnings Call: Second Quarter 2026
Earnings Call: Second Quarter 2026 July 23, 2026 (NASDAQ: IBCP)
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation 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 “be
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: 2Q'26 Overview
2Q'26 Overview • Total loans increased 9.8% annualized with commercial loan growth of $92.6 million or 16.4% annualized • 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 0.59% and N
Slide 5: Low-Cost Deposit Franchise Focused on Core Deposit Growth
$ 4 .6 $ 4 .6 $ 4 .6 $ 4 .7 $ 4 .6 $ 4 .7 $ 4 .9 $ 4 .8 $ 4 .9 $ 4 .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 % 1 .5 4 % 1 .5 4 % Q 1 '2 4 Q 2 '2 4 Q 3 '2 4 Q 4 '2 4 Q 1 '2 5 Q 2 '2 5 Q 3 '2 5 Q 4 '2 5 Q 1 '2 6 Q 2 '2 6 Total Deposits Cost Of Deposits Low-Cost Deposit F
Slide 6: Historic IBC Cost of Funds vs. the Federal Funds Rate
Historic IBC Cost of Funds (excluding sub debt) vs. the Federal Funds Rate (with Deposit Balances) D e p o s it B a la n c e s ( $ i n t h o u s a n d s ) 6 F e d e ra l F u n d s R a te Account Type Cycle Beta Sav & Int-bearing chking 23.3% Reciprocal 67.9% Time 59.3% Total int-bearing Dep (excl br
Slide 7: Diversified Loan Portfolio Focused on High Quality Growth
Commercial 53% Mortgage 35% Installment 12% Held for Sale 0% Diversified Loan Portfolio Focused on High Quality Growth • Portfolio loan changes in 2Q'26: − Commercial – increased $92.6 million. …Average new origination yield of 6.41% vs a 6.06% portfolio yield. − Mortgage – increased $12.9 million.
Slide 8: Concentrations within $2.4B Commercial Loan Portfolio
Concentrations within $2.4B Commercial Loan Portfolio C&I or Owner Occupied Loans by Industry as a % of Total Commercial Loans ($ in millions) Investor RE by Collateral Type as a % of Total Commercial Loans ($ in millions) Note: $1.570 billion, or 66.5% of the commercial loan portfolio is C&I or own
Slide 9: Credit Quality Summary
$6.0 $7.1 $8.2 $20.4 $23.1 $27.6 $32.8 $0.9 $0.4 $0.4 $0.6 $0.9 $0.8 $0.7 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 2024 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 Non-performing Loans 90+ Days PD ORE/ORA $7.0 $3.9 $6.6 $5.1 $7.8 $8.2 $5.6 0.2% 0.1% 0.2% 0.1% 0.2% 0.2% 0.1% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0%
Slide 10: Strong Capital Position
14.5 14.2 13.7 13.6 13.8 13.8 Q1'25 Q2'25 Q3'25 Q4'25 Q1`26 Q2`26 11.4 11.4 11.6 11.5 11.7 11.7 Q1'25 Q2'25 Q3'25 Q4'25 Q1`26 Q2`26 9.9 10.1 10.1 10.2 10.3 10.5 Q1'25 Q2'25 Q3'25 Q4'25 Q1`26 Q2`26 8.3 8.2 8.4 8.7 8.7 8.9 Q1'25 Q2'25 Q3'25 Q4'25 Q1`26 Q2`26 • Long-term capital priorities: Capital ret
Slide 11: Net Interest Margin/Income
$ 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 $ 4 6 .9 $ 4 7 .9 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 Q1'26 Q2'26 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 3.62
Slide 12: Average Balances, Interest and Yields 2Q26 vs 1Q26
2Q26 1Q26 Change Avg Bal Inc/Exp Yield Avg Bal Inc/Exp Yield Avg Bal Inc/Exp Yield Cash $57,067 $531 3.73% $79,636 $748 3.81% ($22,568) ($218) -0.08% Investments 793,997 6,540 3.29% 814,353 6,594 3.24% (20,356) (54) 0.06% Commercial loans 2,312,336 35,307 6.12% 2,252,105 33,965 6.12% 60,232 1,343 0.
Slide 13: Interest Rate Risk Management
June 30, 2026 -200 -100 Base-rate 100 200 Net Interest Income $200,307 $202,593 $204,221 $206,787 $209,565 Change from Base -1.92% -0.80% 1.26% 2.62% March 31, 2026 -200 -100 Base-rate 100 200 Net Interest Income $195,430 $197,693 $199,445 $201,943 $204,794 Change from Base -2.01% -0.88% 1.25% 2.68%
Slide 14: Strong Non-interest Income
Interchange income $3,576 Service Chg Dep $3,100 Gain (Loss)- Mortgage Sale $1,651 Equity Securities at Fair Value $1,600 Gain (Loss)- Securities $(90) Mortgage loan servicing, net $2,460 Investment & insurance commissions $864 Bank owned life insurance $356 Other income $1,817 Strong Non-interest I
Slide 15: Focus on Improved Efficiency
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 % 6 1 .0 % 6 1 .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 1 Q '2 6 2 Q '2 6 $ 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 2 '2 4 Q 3
Slide 16: 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 (11%-12%) with mortgage loans (0%-1%) and installment loans declining (5.0%-5.5%). • This growth forecast also assumes a stable Michigan e
Slide 17: Outlook for 2026 (continued)
Outlook for 2026 Outlook for 2026 *as of January, 2026 • Quarterly 2026 forecasted range of $11.3M to $12.3M. Full year up 3.0% to 4.0% from 2025 actual of $45.6M • Expect mortgage loan origination volumes to be down 6.0% to 7.0% and net gain on sale to be down 14.0% to 16.0% compared to full year 2
Slide 18: Strategic Initiatives
Strategic Initiatives 18 Growth • Outside Sales - Relationship banking focus through consistent calling on prospects and COI’s. • Inside Service/Sales – high retention + high cross sales, collaboration of strategic partners. • Digital Marketing - Leverage data insights, target strategically, elevate
Slide 19: Question and Answer Session, Closing Remarks
Question and Answer Session Closing Remarks NASDAQ: IBCP Thank you for attending 19
Slide 20: Appendix: Additional Financial Data and Non-GAAP Reconciliations
Appendix Additional Financial Data and Non-GAAP Reconciliations 20
Slide 21: Historical Financial Data
Historical Financial Data 21 here Year Ended December 31, Quarter Ended, ($M except per share data) 2022 2023 2024 2025 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 Balance Sheet: Total Assets $5,000 $5,264 $5,338 $5,506 $5,419 $5,493 $5,506 $5,558 $5,664 Portfolio Loans $3,465 $3,791 $4,039 $4,276 $4,1
Slide 22: Historic Financial Performance
22 Historic Financial Performance Year Ended December 31, ($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 23: Strong Liquidity Position
5 8 % 5 6 % 5 6 % 5 7 % 4 9 .0 % 5 1 .8 % 5 1 .0 % 1 9 5 % 1 9 6 % 1 9 1 .8 % 1 8 0 .7 % 2 0 7 .0 % 2 2 1 .5 % 1 9 8 .0 % 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 On-balance sheet / Uninsured Deposits Available Sources / Uninsured Deposits Sources of Liquidity 2Q 2026 Current On-balance sheet Excess reser
Slide 24: Granular Deposit Base
$ 3 ,5 9 4 $ 3 ,5 8 6 $ 3 ,6 3 7 $ 3 ,7 2 0 $ 3 ,5 8 6 $ 3 ,7 2 8 $ 3 ,7 0 6 $1,060 $1,048 $1,022 $1,139 $1,176 $1,153 $1,156 $4,654 $4,634 $4,659 $4,859 $4,762 $4,881 $4,862 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Insured Deposits Uninsured Deposits $2,042 $1,268 $395 $1 $256 $627 $273 $2,298 $1,895 $66
Slide 25: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation 25 June 30, March 31, December 31, September 30, June 30, 2025 2024 2023 2022 2026 2026 2025 2025 2025 Net interest income $180,015 $166,248 $156,329 $149,561 $47,902 $46,855 $46,354 $45,361 $44,615 Non-interest income 45,644 56,362 50,676 61,909 15,334 12,048 11,958
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 26 Reconciliation of Non-GAAP Financial Measures 2026 2025 2026 2025 Net Interest Margin, Fully Taxable Equivalent ("FTE") Net interest income 47,902$ 44,615$ 94,757$ 88,300$ Add: taxable equivalent adjustment 440 444 885 896 Net interest income - taxabl
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 June 30, March 31, December 31, Sepetmber 30, June 30, 2025 2024 2023 2022 2026 2026 2025 2025 2025 Common shareholders' eq