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
2 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 pl
Slide 3: Agenda
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 avai
Slide 4: 4Q'25 Overview
4 4Q'25 Overview • Net income of $18.6 million, or $0.89 per diluted share • Increase in net interest income of $3.5 million over the prior year quarter and $1.0 million over the third quarter of 2025 • Strong profitability and prudent balance sheet management results 13.4% growth in tangible book v
Slide 5: Low-Cost Deposit Franchise
5 Low-Cost Deposit Franchise • Substantial core funding – $4.08 billion of non-maturity deposit Focused on Core Deposit Growth accounts (85.7% of total deposits). • Core deposit increase of $57.1 Deposit Composition million (4.8% annualized) in 12/31/25 Cost of Deposits (%)/Total Deposits ($B) 4Q'25
Slide 6: Deposit Balances and Cost of Funds vs. Federal Funds Rate
Federal Funds Rate 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.5% 6.0% 0.0% 5.0% Dec-16 0.27% Mar-17 0.27% Time Jun-17 0.28% Reciprocal Sep-17 0.33% Dec-17 0.36% Mar-18 0.42% IBC COF Jun-18 0.51% Sav & Int-bearing chking Account Type Sep-18 0.60% Total COF IBC (excl Sub Debt) Dec-18 0.73% Mar-19
Slide 7: Diversified Loan Portfolio Focused on High Quality Growth
7 • Portfolio loan changes in 4Q'25: Diversified Loan Portfolio − Commercial – increased $88.5 million. Focused on High Quality Growth …Average new origination yield of 6.37% vs a 6.10% portfolio yield. − Mortgage – increased $7.2 million. …Average new origination yield of 6.29% vs a 4.86% portfolio
Slide 8: Concentrations within $2.2B Commercial Loan Portfolio
8 Concentrations within $2.2B Commercial Loan Portfolio C&I or Owner Occupied Loans by Industry as a % Investor RE by Collateral Type as a % of Total Commercial Loans ($ in millions) of Total Commercial Loans ($ in millions) Manufacturing Retail 1.14%, Land, Vacant 1.27%, Special Land and Purpose, $
Slide 9: Credit Quality Summary
9 Credit Quality Summary Non-performing Loans ($ in Millions) ORE/ORA ($ in Millions) $25.0 $23.1 0.9% $1.0 $0.9 $0.9 $20.4 $20.0 0.7% $0.8 $0.6 $0.6 $15.0 0.5% $0.6 $0.5 0.5% $0.4 $0.4 0.5% $10.0 $7.1 $8.2 0.3% $0.4 $5.1 $6.0 $3.7 $5.2 $0.2 $5.0 0.2% 0.1% $0.2 0.1% 0.2% 0.1% 0.1% 0.1% $- -0.1% $- 2
Slide 10: Strong Capital Position
10 Strong Capital Position • Long-term capital Priorities: Capital retention to support organic growth, acquisitions TCE / TA (%) Leverage Ratio (%) and return of capital through strong and consistent dividends and share repurchases. 9.6 9.9 9.9 10.1 10.1 10.2 8.1 8.0 8.3 8.2 8.4 8.7 • Well capitali
Slide 11: Net Interest Margin/Income
11 Net Interest Margin/Income • Net interest income was $46.4 million in 4Q'25 compared to $42.9 million in the prior year Yields, NIM and Cost of Funds (%) quarter. The change is due to 6 4.99 5.26 5.33 5.33 5.33 5.16 an increase in average earning 5 3.65 4.38 4.66 4.33 4.33 4.30 3.90 assets and th
Slide 12: Linked Quarter Analysis
12 Linked Quarter Analysis 4Q'25 NIM Changes Linked Quarter Average Balances and FTE Rates ($ in thousands) 3Q'25 3.54% 4Q25 3Q25 Change Avg Bal Inc/Exp Yield Avg Bal Inc/Exp Yield Avg Bal Inc/Exp Yield Cash $79,621 $780 3.89% $113,660 $1,261 4.40% ($34,039) ($481) -0.51% Change in Earning Asset Yie
Slide 13: Interest Rate Risk Management
13 • The base case modeled NII is slightly higher during the quarter due to 9 basis points of modeled margin expansion. Interest Rate Risk Management Asset and liability yields both declined during the quarter given 50 basis points of Fed easing. The NIM benefited from mix shifts in both assets and
Slide 14: Strong Non-interest Income
14 • The $6.9 million comparative quarterly Strong Non-interest Income decrease in mortgage loan servicing, net is primarily attributed to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in mortgage 4Q'25 Non-interest Income Non-interest Income Trends
Slide 15: Focus on Improved Efficiency
15 • 4Q'25 efficiency ratio of 61.2%. Focus on Improved Efficiency • Compensation and employee benefits expense of $22.6 million, a decrease of $0.3 million from the prior year quarter. • Performance-based compensation Non-interest Expense ($M) Efficiency Ratio (4 quarter rolling average) was $0.5 m
Slide 16: Outlook for 2025
16 Outlook for 2025 NET INTEREST INCOME PROVISION FOR LENDING Growth driven primarily by CREDIT LOSSES Continued growth higher average earning assets Steady asset quality metrics Outlook • IBCP forecast of mid-single digit • The forecast assumes 0.25% Fed rate cuts in • Very difficult area to foreca
Slide 17: Outlook for 2025
17 Outlook for 2025 NON-INTEREST NON-INTEREST INCOME SHARE INCOME EXPENSES TAXES REPURCHASES Outlook • Q1/Q2 quarterly 2025 forecasted range of • IBCP forecasts 2025 quarterly range of • Approximately a 19% • 2025 share repurchase for 2025 $11.0M to $12.0M and Q3/Q4 forecast of $34.5M to $35.5M with
Slide 18: Outlook for 2026
18 Outlook for 2026 NET INTEREST INCOME PROVISION FOR LENDING Growth driven primarily by CREDIT LOSSES Continued growth higher average earning assets Steady asset quality metrics Outlook • IBCP forecast of approximately 4.5%-5.5% • The forecast assumes 0.25% Fed rate cuts in • Very difficult area to
Slide 19: Outlook for 2026
19 Outlook for 2026 NON-INTEREST NON-INTEREST INCOME SHARE INCOME EXPENSES TAXES REPURCHASES Outlook • Quarterly 2026 forecasted range of • IBCP forecasts 2026 quarterly range of • Approximately a 17% • 2026 share repurchase for 2026 $11.3M to $12.3M. Full year up 3.0% to $36.0M to $37.0M with the t
Slide 20: Strategic Initiatives
20 Strategic Initiatives GROWTH PROCESS IMPROVEMENT & COST CONTROLS • Outside Sales - Relationship banking focus thru consistent calling on • Process Automation – leverage core investments + Fintech prospects and COI’s. partnerships: (Blend) mortgage; (Numerated) Commercial; • Inside Service/Sales –
Slide 21: Question and Answer Session Closing Remarks
21 Question and Answer Session Closing Remarks Thank you for attending NASDAQ: IBCP
Slide 22: Appendix
22 Appendix Additional Financial Data and Non-GAAP Reconciliations
Slide 23: Historical Financial Data
23 Historical Financial Data Year Ended December 31, Quarter Ended, ($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: Strong Liquidity Position
25 Strong Liquidity Position • Significant liquidity position to manage the current Sources of Liquidity 4Q 2025 environment. Current On-balance sheet Excess reserves at the Fed $ 86.2 • Total available liquidity Sources Unpledged AFS Securities $ 489.9 significantly exceeds (207%) Total On-balance
Slide 26: Granular Deposit Base
26 • Average deposit account balance Granular Deposit Base of approximately $22,512. • Average deposit balance $4,654 $4,634 $4,659 $4,859 $4,762 excluding reciprocal deposit of $4,614 $4,627 $17,971. $1,022 $1,139 $1,176 $978 $1,057 $1,060 $1,048 • Average Commercial deposit balance of $100,655. Un
Slide 27: Non-GAAP to GAAP Reconciliation
27 Non-GAAP to GAAP Reconciliation Year Ended December 31, Quarter Ended December 31, September 30, June 30, March 31, December 31, 2025 2024 2023 2022 2025 2025 2025 2025 2024 (Dollars in thousands) Net interest income $180,015 $166,248 $156,329 $149,561 $46,354 $45,361 $44,615 $43,685 $42,851 Non-
Slide 28: Reconciliation of Non-GAAP Financial Measures
28 Reconciliation of Non-GAAP Financial Measures Reconciliation of Non-GAAP Financial Measures Three Months Ended Twelve Months Ended December 31, December 31, 2025 2024 2025 2024 (Dollars in thousands) Net Interest Margin, Fully Taxable Equivalent ("FTE") Net interest income $ 46,354 $ 42,851 $ 180
Slide 29: Reconciliation of Non-GAAP Financial Measures (continued)
29 Reconciliation of Non-GAAP Financial Measures (continued) Reconciliation of Non-GAAP Financial Measures (continued) Independent Bank Corporation Tangible Common Equity Ratio Year Ended December 31, Quarter Ended December 31, Sepetmber 30, June 30, March 31, December 31, 2025 2024 2023 2022 2025 2