GRAND RAPIDS, Mich., July 23, 2026 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ: IBCP) reported second quarter 2026 net income of $18.8 million, or $0.90 per diluted share, versus net income of $16.9 million, or $0.81 per diluted share, in the prior-year period.
Highlights for the second quarter of 2026 include:
- A net interest margin of 3.71% (six basis point increase from the linked quarter);
- Increase in net interest income of $1.0 million (or 2.2% ) over the first quarter of 2026;
- Increase in tangible common equity per share of common stock of $0.86 (or 14.8% annualized) from March 31, 2026;
- A return on average assets and a return on average equity of 1.37% and 14.52%, respectively, for the quarter ended June 30, 2026;
- Net growth in total deposits, less brokered time deposits, of $38.2 million (or 3.2% annualized) from March 31, 2026;
- Net loan growth of $105.8 million (or 9.8% annualized) from March 31, 2026;
- An increase in the tangible common equity ratio to 8.9% at June 30, 2026; and
- The payment of a $0.28 per share quarterly dividend on common stock on May 14, 2026.
William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “Our second quarter performance demonstrates the strength of Independent Bank’s community banking model and the continued benefits of disciplined balance sheet management, relationship-based lending, and a stable, locally-focused deposit franchise. We saw broad-based momentum across the business, with core customer activity supporting loan growth, core deposit growth, improved earning-asset yields, and continued capital generation. Just as important, we achieved these results while maintaining strong asset quality, prudent liquidity, and capital levels that position us well for the current operating environment.
“The quarter also reinforced the value of our strategy: serving attractive Michigan markets through local decision-making, deep customer relationships, and consistent credit discipline. We believe that approach continues to differentiate Independent Bank and supports durable performance through changing rate and economic cycles. We were pleased to complete our acquisition of HCB Financial Corp. on July 1, 2026. Integration work is underway, and we believe the combination strengthens our presence in complementary markets and enhances our ability to serve customers, employees, communities, and shareholders over the long term.”
Significant items impacting comparable second quarter 2026 and 2025 results include the following:
- Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of $1.8 million ($0.07 per diluted share, after tax) for the three-month period ended June 30, 2026, as compared to ($0.2) million (($0.01) per diluted share, after tax) for the three-month period ended June 30, 2025.
- Gain on equity securities at fair value of $1.6 million ($0.06 per diluted share, after tax) in the second quarter ended June 30, 2026, attributable to the exchange of our Visa Class B-2 common stock. No gain or loss on equity securities at fair value was recorded for the second quarter of 2025.
Operating Results
The Company’s net interest income totaled $47.9 million during the second quarter of 2026, an increase of $3.3 million, or 7.4% from the year-ago period, and an increase of $1.0 million, or 2.2%, from the first quarter of 2026 which had one less day of earnings. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.71% during the second quarter of 2026, compared to 3.58% in the year-ago period, and 3.65% in the first quarter of 2026. The linked quarter increase in the net interest margin was supported by a five basis point increase on earning asset yield and a one basis point decrease in the cost of interest bearing liabilities. The year-over-year quarter and linked quarter increases in net interest income were due to both an increase in average interest-earning assets and the higher net interest margin. Average interest-earning assets were $5.22 billion in the second quarter of 2026, compared to $5.04 billion in the year-ago quarter and $5.21 billion in the first quarter of 2026.
Non-interest income totaled $15.3 million for the second quarter of 2026, compared to $11.3 million in the comparable prior year period and $12.0 million in the preceding quarter. This change was primarily due to variances in mortgage banking related revenues and gain on equity securities at fair value.
Gain on equity securities totaled $1.6 million during the second quarter of 2026. This gain resulted from the exchange of our shares of Visa Class B-2 common stock on May 8, 2026 into a combination of Visa Class C common stock and Visa Class B-3 common stock. With the completion of this exchange, the fair value of the Visa Class C common stock was recognized through income (as it is convertible into publicly traded Visa Class A common stock) while the Visa Class B-3 common stock continues to be carried at zero.
Net gains on mortgage loans in the second quarters of 2026 and 2025 were approximately $1.7 million and $1.6 million, respectively.
Mortgage loan servicing, net, generated income of $2.5 million and $0.5 million in the second quarters of 2026 and 2025, respectively. The significant variance in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in interest rates and the associated expected future prepayment levels and expected float rates. Capitalized mortgage loan servicing rights totaled $33.9 million and $31.5 million at June 30, 2026 and December 31, 2025, respectively.
Mortgage loan servicing, net activity is summarized in the following table:
Three months ended Six months ended 6/30/2026 6/30/2025 6/30/2026 6/30/2025 (In thousands)Mortgage loan servicing, net: Revenue, net$1,625 $1,649 $3,261 $3,531 Fair value change due to price 1,838 (219) 2,771 (1,752)Fair value change due to pay-downs (1,003) (862) (1,926) (1,753)Loss on sale of originated servicing rights$— $(78) — (172)Total$2,460 $490 $4,106 $(146)
Non-interest expenses totaled $37.8 million in the second quarter of 2026, compared to $33.8 million in the year-ago period. The increase in non-interest expense is primarily due to increases in compensation and employee benefits, advertising, merger related expenses and data processing as well as a $0.4 million litigation expense recorded during the quarter.
The Company recorded income tax expense of $3.9 million in the second quarter of 2026. This compares to an income tax expense of $3.8 million in the second quarter of 2025. The 2026 second quarter income tax expense includes a $0.2 million benefit from transferable energy tax credits.
Asset Quality
A breakdown of non-performing loans by loan type is as follows (1):
(1) Non-performing loans include non-accrual loans and loans 90 days or more past due and still accruing interest.
The provision for credit losses was an expense of $2.72 million and $1.50 million in the second quarters of 2026 and 2025, respectively. The Company recorded loan net charge offs of $0.37 million in both of the second quarters of 2026 and 2025. At June 30, 2026, the allowance for credit losses for loans totaled $65.7 million, or 1.49% of total portfolio loans compared to $63.4 million, or 1.48% of total portfolio loans at December 31, 2025.
Commercial loans in the table above are primarily made up of one commercial development exposure totaling $28.18 million.
Balance Sheet, Capital and Liquidity
Total assets were $5.66 billion at June 30, 2026, an increase of $158.1 million from December 31, 2025. Loans, excluding loans held for sale, were $4.41 billion at June 30, 2026, compared to $4.28 billion at December 31, 2025. Deposits totaled $4.86 billion at June 30, 2026, an increase of $100.5 million from December 31, 2025. This increase is primarily due to increases in non-interest bearing, savings and interest-bearing checking and reciprocal that were partially offset by a decrease in brokered time deposits.
Cash and cash equivalents totaled $165.5 million at June 30, 2026, versus $138.4 million at December 31, 2025. Securities available for sale (“AFS”) totaled $494.0 million at June 30, 2026, versus $495.9 million at December 31, 2025.
Total shareholders’ equity was $528.4 million at June 30, 2026, or 9.33% of total assets compared to $503.0 million or 9.14% at December 31, 2025. Tangible common equity totaled $499.3 million at June 30, 2026, or $24.24 per share compared to $473.7 million or $23.05 per share at December 31, 2025. The increases in shareholders’ equity as well as tangible common equity are primarily the result of earnings retention.
The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:
Regulatory Capital Ratios6/30/2026 12/31/2025 WellCapitalized
Minimum Tier 1 capital to average total assets9.67% 9.36% 5.00%Common equity tier 1 capital to risk-weighted assets11.45% 11.24% 6.50%Tier 1 capital to risk-weighted assets11.45% 11.24% 8.00%Total capital to risk-weighted assets12.70% 12.49% 10.00%
At June 30, 2026, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $688.9 million and $1.18 billion, respectively. We also had approximately $450.5 million in fair value of unpledged securities AFS and HTM at June 30, 2026 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $424.1 million.
Share Repurchase Plan
On December 16, 2025, the Board of Directors of the Company authorized the 2026 share repurchase plan. Under the terms of the 2026 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2026. During the six month period ended June 30, 2026, there were no shares of common stock repurchased.
Earnings Conference Call
Brad Kessel, President and CEO, Gavin Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, July 23, 2026.
To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: https://register-conf.media-server.com/register/BI645bccc138044d5c9b0f8bf44d8ecd96.
In order to view the webcast and presentation slides, please go to https://edge.media-server.com/mmc/p/znkibk4a during the time of the call. A replay of the webcast will be available until July 23, 2027.
About Independent Bank Corporation
Independent Bank Corporation (NASDAQ: IBCP) is a Grand Rapids, Michigan-based bank holding company and the parent company of Independent Bank and, as of July 1, 2026, Highpoint Community Bank. Independent Bank Corporation has total assets of approximately $6.3 billion and operates from 66 locations across Michigan’s Lower Peninsula. Founded in 1864 as First National Bank of Ionia, Independent Bank provides a full range of financial services, including commercial banking, consumer banking, mortgage lending, and investment services. Independent Bank expects to complete the full system integration of Highpoint Community Bank’s operations on November 9, 2026. Until conversion, customers of Highpoint Community Bank should continue using their existing Highpoint Community Bank branches, checks, bank cards, online and mobile banking, and other banking services as usual.
For more information, please visit our Web site at: IndependentBank.com.
Forward-Looking Statements
This press release 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 “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “target,” “may,” “will,” “should,” “could,” “would,” “outlook,” and similar expressions. These statements include, without limitation, statements regarding our anticipated future financial performance and components of that performance, acquisition integration activities, expected benefits of the completed acquisition, and future plans, prospects and performance.
Forward-looking statements involve inherent risks and uncertainties, and actual results may differ materially from those expressed or implied by such statements. Factors that could cause actual results to differ materially include deterioration in general business and economic conditions or turbulence in domestic or global financial markets; changes in interest rates; changes in unemployment rates; deterioration in the credit quality of our loan portfolio or in the value of collateral securing loans; deterioration in the value of our investment securities; changes in funding availability or costs; legal and regulatory developments; the timing, cost and outcome of pending or threatened litigation and regulatory matters; changes in customer behavior and preferences; cybersecurity incidents or other data-security breaches; risks relating to the integration of Highpoint Community Bank, including customer and employee retention, systems conversion, unexpected costs, disruption to business relationships, and the risk that anticipated benefits may not be realized when expected or at all; and management’s ability to effectively manage the risks facing our business. Additional risk factors are described in our Annual Report on Form 10-K for the year ended December 31, 2025 and other reports filed with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of future results. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we undertake no obligation to update or revise any forward-looking statement.
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition
2026 December 31,
2025 (Unaudited) (In thousands, except share
amounts)Assets Cash and due from banks $64,089 $52,235 Interest bearing deposits 101,361 86,152 Cash and Cash Equivalents 165,450 138,387 Equity securities at fair value 1,088 — Securities available for sale 493,952 495,909 Securities held to maturity (fair value of $261,020 at June 30, 2026 and $282,830 at December 31, 2025) 287,574 309,523 Federal Home Loan Bank and Federal Reserve Bank stock, at cost 18,940 18,102 Loans held for sale, carried at fair value 16,824 9,031 Loans Commercial 2,359,988 2,213,557 Mortgage 1,533,268 1,524,821 Installment 520,608 537,907 Total Loans 4,413,864 4,276,285 Allowance for credit losses (65,673) (63,445)Net Loans 4,348,191 4,212,840 Other real estate and repossessed assets, net 710 896 Property and equipment, net 44,549 38,972 Bank-owned life insurance 53,567 53,750 Capitalized mortgage loan servicing rights, carried at fair value 33,949 31,493 Other intangibles, net 771 1,001 Goodwill 28,300 28,300 Accrued income and other assets 169,976 167,516 Total Assets $5,663,841 $5,505,720 Liabilities and Shareholders' Equity Deposits Non-interest bearing $1,030,460 $991,984 Savings and interest-bearing checking 2,143,895 2,113,260 Reciprocal 1,025,016 974,921 Time 662,248 662,858 Brokered time 514 18,659 Total Deposits 4,862,133 4,761,682 Other borrowings 127,005 77,003 Subordinated debentures 39,898 39,864 Accrued expenses and other liabilities 106,392 124,220 Total Liabilities 5,135,428 5,002,769 Shareholders’ Equity Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding — — Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 20,602,535 shares at June 30, 2026 and 20,548,893 shares at December 31, 2025 307,820 307,845 Retained earnings 276,934 252,794 Accumulated other comprehensive loss (56,341) (57,688)Total Shareholders’ Equity 528,413 502,951 Total Liabilities and Shareholders’ Equity $5,663,841 $5,505,720
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
March 31, June 30,
June 30, 2026 2026 2025 2026 2025 (Unaudited)Interest Income (In thousands, except per share amounts)Interest and fees on loans $60,643 $59,249 $59,535 $119,892 $117,303 Interest on securities Taxable 3,300 3,354 3,796 6,654 7,832 Tax-exempt 2,525 2,522 2,773 5,047 5,543 Other investments 826 1,044 774 1,870 2,344 Total Interest Income 67,294 66,169 66,878 133,463 133,022 Interest Expense Deposits 18,322 18,397 20,462 36,719 41,417 Other borrowings and subordinated debt and debentures 1,070 917 1,801 1,987 3,305 Total Interest Expense 19,392 19,314 22,263 38,706 44,722 Net Interest Income 47,902 46,855 44,615 94,757 88,300 Provision for credit losses 2,717 362 1,500 3,079 2,221 Net Interest Income After Provision for Credit Losses 45,185 46,493 43,115 91,678 86,079 Non-interest Income Interchange income 3,576 3,234 3,390 6,810 6,517 Service charges on deposit accounts 3,100 2,935 2,981 6,035 5,795 Net gains (losses) on assets Mortgage loans 1,651 1,308 1,631 2,959 3,934 Equity securities at fair value 1,600 — — 1,600 — Securities available for sale (90) (26) 11 (116) (319)Mortgage loan servicing, net 2,460 1,646 490 4,106 (146)Other 3,037 2,951 2,822 5,988 5,968 Total Non-interest Income 15,334 12,048 11,325 27,382 21,749 Non-interest Expense Compensation and employee benefits 22,560 21,829 21,123 44,389 41,506 Data processing 4,152 3,952 3,847 8,104 7,576 Occupancy, net 2,073 2,413 2,046 4,486 4,269 Interchange expense 1,224 1,191 1,177 2,415 2,296 Advertising 1,180 1,210 833 2,390 1,694 Litigation expense 350 1,500 — 1,850 — Furniture, fixtures and equipment 927 894 793 1,821 1,678 Loan and collection 1,038 752 744 1,790 1,530 FDIC deposit insurance 738 799 637 1,537 1,348 Legal and professional 613 591 500 1,204 979 Communications 464 593 470 1,057 1,061 Merger related expense 369 300 — 669 — Other 2,121 2,287 1,592 4,408 4,087 Total Non-interest Expense 37,809 38,311 33,762 76,120 68,024 Income Before Income Tax 22,710 20,230 20,678 42,940 39,804 Income tax expense 3,905 3,355 3,801 7,260 7,337 Net Income $18,805 $16,875 $16,877 $35,680 $32,467 Net Income Per Common Share Basic $0.91 $0.82 $0.81 $1.73 $1.56 Diluted $0.90 $0.81 $0.81 $1.72 $1.54
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data
2026 March 31,
2026December 31,
2025 September 30,
2025 June 30,
2025 (unaudited) (Dollars in thousands except per share data)Three Months Ended Net interest income$47,902 $46,855 $46,354 $45,361 $44,615 Provision for credit losses 2,717 362 1,923 1,991 1,500 Non-interest income 15,334 12,048 11,958 11,937 11,325 Non-interest expense 37,809 38,311 36,078 34,131 33,762 Income before income tax 22,710 20,230 20,311 21,176 20,678 Income tax expense 3,905 3,355 1,739 3,674 3,801 Net income$18,805 $16,875 $18,572 $17,502 $16,877 Basic net income per common share$0.91 $0.82 $0.90 $0.85 $0.81 Diluted net income per common share 0.90 0.81 0.89 0.84 0.81 Cash dividend per share 0.28 0.28 0.26 0.26 0.26 Average shares outstanding 20,603,937 20,574,506 20,639,758 20,702,235 20,749,925 Average diluted shares outstanding 20,807,061 20,780,188 20,848,634 20,904,857 20,945,522 Performance Ratios Return on average assets 1.37% 1.24% 1.35% 1.27% 1.27%Return on average equity 14.52 13.43 14.75 14.57 14.66 Efficiency ratio (1) 60.64 64.33 61.18 58.86 59.67 As a Percent of Average Interest-Earning Assets (1) Interest income 5.20% 5.15% 5.24% 5.38% 5.35%Interest expense 1.49 1.50 1.62 1.84 1.77 Net interest margin 3.71 3.65 3.62 3.54 3.58 Average Balances Loans$4,368,577 $4,315,371 $4,249,389 $4,201,557 $4,128,771 Securities 777,422 796,251 815,269 826,362 846,052 Total earning assets 5,219,641 5,209,360 5,162,381 5,159,681 5,036,090 Total assets 5,521,748 5,522,244 5,449,518 5,451,922 5,324,959 Deposits 4,812,586 4,832,089 4,774,179 4,786,408 4,646,639 Interest bearing liabilities 3,896,448 3,892,702 3,846,367 3,862,024 3,763,477 Shareholders' equity 519,439 509,523 499,445 476,422 461,720
(1) Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data (continued)
2026 March 31,
2026December 31,
2025 September 30,
2025 June 30,
2025 (unaudited) (Dollars in thousands except per share data)End of Period Capital Tangible common equity ratio (2) 8.86% 8.71% 8.65% 8.44% 8.16%Tangible common equity ratio excluding accumulated other comprehensive loss (2) 9.67 9.61 9.51 9.35 9.24 Average equity to average assets 9.41 9.23 9.16 8.74 8.67 Total capital to risk-weighted assets (3) 13.78 13.79 13.59 13.67 14.20 Tier 1 capital to risk-weighted assets (3) 12.52 12.54 12.33 12.42 12.23 Common equity tier 1 capital to risk-weighted assets (3) 11.70 11.70 11.49 11.55 11.36 Tier 1 capital to average assets (3) 10.58 10.34 10.27 10.07 10.07 Common shareholders' equity per share of common stock$25.65 $24.80 $24.48 $23.72 $22.65 Tangible common equity per share of common stock (2) 24.24 23.38 23.05 22.29 21.23 Total shares outstanding 20,602,535 20,585,805 20,548,893 20,691,604 20,715,650 Selected Balances Loans$4,413,864 $4,308,099 $4,276,285 $4,198,283 $4,164,367 Securities 781,526 783,302 805,432 824,033 838,813 Total earning assets 5,332,515 5,255,657 5,195,002 5,204,380 5,105,579 Total assets 5,663,841 5,557,509 5,505,720 5,493,113 5,418,519 Deposits 4,862,133 4,880,680 4,761,682 4,859,155 4,659,359 Interest bearing liabilities 3,998,576 3,956,431 3,886,565 3,897,487 3,832,845 Shareholders' equity 528,413 510,553 502,951 490,742 469,250
(2) Refer to Reconciliation of Non-GAAP Financial Measures.
(3) June 30, 2026 are Preliminary.
Reconciliation of Non-GAAP Financial Measures
Independent Bank Corporation
Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends. Tangible common equity is used by the Company to measure the quality of capital.
Reconciliation of Non-GAAP Financial Measures
Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in thousands)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 - taxable equivalent$48,342 $45,059 $95,642 $89,196 Net interest margin (GAAP) (1) 3.67% 3.55% 3.64% 3.50%Net interest margin (Non-GAAP FTE) (1) 3.71% 3.58% 3.68% 3.54%(1) Annualized.
Tangible Common Equity Ratio
June 30,2026 March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025 (Dollars in thousands)Common shareholders' equity$528,413 $510,553 $502,951 $490,742 $469,250 Less: Goodwill 28,300 28,300 28,300 28,300 28,300 Other intangibles, net 771 886 1,001 1,123 1,244 Tangible common equity 499,342 481,367 473,650 461,319 439,706 Addition: Accumulated other comprehensive loss for regulatory purposes 50,544 55,226 51,891 54,833 64,089 Tangible common equity excluding accumulated other comprehensive loss adjustments$549,886 $536,593 $525,541 $516,152 $503,795 Total assets$5,663,841 $5,557,509 $5,505,720 $5,493,113 $5,418,519 Less: Goodwill 28,300 28,300 28,300 28,300 28,300 Other intangibles, net 771 886 1,001 1,123 1,244 Tangible assets 5,634,770 5,528,323 5,476,419 5,463,690 5,388,975 Addition: Net unrealized losses on available for sale securities and derivatives, net of tax 50,544 55,226 51,891 54,833 64,089 Tangible assets excluding accumulated other comprehensive loss adjustments$5,685,314 $5,583,549 $5,528,310 $5,518,523 $5,453,064 Common equity ratio 9.33% 9.19% 9.14% 8.93% 8.66%Tangible common equity ratio 8.86% 8.71% 8.65% 8.44% 8.16%Tangible common equity ratio excluding accumulated other comprehensive loss 9.67% 9.61% 9.51% 9.35% 9.24% Tangible Common Equity per Share of Common Stock: Common shareholders' equity$528,413 $510,553 $502,951 $490,742 $469,250 Tangible common equity$499,342 $481,367 $473,650 $461,319 $439,706 Shares of common stock outstanding (in thousands) 20,603 20,586 20,549 20,692 20,716 Common shareholders' equity per share of common stock$25.65 $24.80 $24.48 $23.72 $22.65 Tangible common equity per share of common stock$24.24 $23.38 $23.05 $22.29 $21.23
The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets. Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.
Gavin A. Mohr, Chief Financial Officer, 616.447.3929