# INDEPENDENT BANK CORP /MI/ (IBCP)

Informational only - not investment advice.

CIK: 0000039311
SIC: 6022 State Commercial Banks
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6022 State Commercial Banks](/industry/6022/)
Latest 10-K filed: 2026-03-06
SEC page: https://www.sec.gov/edgar/browse/?CIK=39311
Filing source: https://www.sec.gov/Archives/edgar/data/39311/000003931126000009/ibcp-20251231_d2.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-06 · accession 0000039311-26-000009 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000039311.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 269,737,000 USD | 2025 | verified |
| Net income | 68,541,000 USD | 2025 | verified |
| Assets | 5,505,720,000 USD | 2025 | verified |
| Free cash flow | 70,168,000 USD | 2025 | computed |
| Net margin | 25.41% | 2025 | computed |
| Revenue YoY | +1.11% | 2025 | computed |
| ROE | 13.63% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | IBCP | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 25.4% | 21.9% | 68 | 149 |
| Revenue growth | 1.1% | 6.0% | 22 | 148 |
| FCF margin | 26.0% | 23.8% | 58 | 133 |
| ROE | 13.6% | 9.6% | 91 | 149 |
| ROA | 1.2% | 1.1% | 70 | 149 |
| Liabilities / equity | 9.95 | 8.04 | 82 | 149 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6022 State Commercial Banks, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 269737000 | USD | 2025 | 2026-03-06 |
| Net income | 68541000 | USD | 2025 | 2026-03-06 |
| Assets | 5505720000 | USD | 2025 | 2026-03-06 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000039311.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 86,523,000 | 98,309,000 | 130,773,000 | 148,928,000 | 139,829,000 | 138,080,000 | 169,008,000 | 239,677,000 | 266,776,000 | 269,737,000 |
| Net income | 22,766,000 | 20,475,000 | 39,839,000 | 46,435,000 | 56,152,000 | 62,895,000 | 63,351,000 | 59,067,000 | 66,790,000 | 68,541,000 |
| Diluted EPS | 1.05 | 0.95 | 1.68 | 2.00 | 2.53 | 2.88 | 2.97 | 2.79 | 3.16 | 3.27 |
| Operating cash flow | 23,704,000 | 38,607,000 | 44,921,000 | 34,492,000 | 58,684,000 | 110,154,000 | 94,632,000 | 75,589,000 | 63,151,000 | 76,662,000 |
| Capital expenditures | 3,459,000 | 4,242,000 | 3,862,000 | 4,936,000 | 4,383,000 | 5,837,000 | 5,679,000 | 6,024,000 | 7,950,000 | 6,494,000 |
| Dividends paid | 7,274,000 | 8,960,000 | 14,055,000 | 16,554,000 | 17,618,000 | 18,155,000 | 18,565,000 | 19,327,000 | 20,045,000 | 21,600,000 |
| Share buybacks | 16,854,000 | 0.00 | 12,681,000 | 26,284,000 | 14,231,000 | 17,269,000 | 4,010,000 | 5,157,000 | 0.00 | 12,433,000 |
| Assets | 2,548,950,000 | 2,789,355,000 | 3,353,281,000 | 3,564,694,000 | 4,204,013,000 | 4,704,740,000 | 4,999,787,000 | 5,263,726,000 | 5,338,104,000 | 5,505,720,000 |
| Liabilities | 2,299,970,000 | 2,524,422,000 | 3,014,287,000 | 3,214,525,000 | 3,814,491,000 | 4,306,256,000 | 4,652,191,000 | 4,859,277,000 | 4,883,418,000 | 5,002,769,000 |
| Stockholders' equity | 249,332,000 | 264,933,000 | 338,994,000 | 350,169,000 | 389,522,000 | 398,484,000 | 347,596,000 | 404,449,000 | 454,686,000 | 502,951,000 |
| Cash and cash equivalents | 83,194,000 | 54,738,000 | 70,244,000 | 65,304,000 | 118,705,000 | 109,473,000 | 74,371,000 | 169,781,000 | 119,882,000 | 138,387,000 |
| Free cash flow | 20,245,000 | 34,365,000 | 41,059,000 | 29,556,000 | 54,301,000 | 104,317,000 | 88,953,000 | 69,565,000 | 55,201,000 | 70,168,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 26.31% | 20.83% | 30.46% | 31.18% | 40.16% | 45.55% | 37.48% | 24.64% | 25.04% | 25.41% |
| Return on equity | 9.13% | 7.73% | 11.75% | 13.26% | 14.42% | 15.78% | 18.23% | 14.60% | 14.69% | 13.63% |
| Return on assets | 0.89% | 0.73% | 1.19% | 1.30% | 1.34% | 1.34% | 1.27% | 1.12% | 1.25% | 1.24% |
| Liabilities / equity | 9.22 | 9.53 | 8.89 | 9.18 | 9.79 | 10.81 | 13.38 | 12.01 | 10.74 | 9.95 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000039311.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.81 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.61 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.70 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 62,432,000 | 17,543,000 | 0.83 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 65,361,000 | 13,743,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 65,126,000 | 15,991,000 | 0.76 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 66,338,000 | 18,528,000 | 0.88 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 68,334,000 | 13,810,000 | 0.65 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 66,978,000 | 18,461,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 66,144,000 | 15,590,000 | 0.74 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 66,878,000 | 16,877,000 | 0.81 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 69,290,000 | 17,502,000 | 0.84 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 67,425,000 | 18,572,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 66,169,000 | 16,875,000 | 0.81 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 67,294,000 | 18,805,000 | 0.90 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from IBCP's latest 10-K: [/company/IBCP/business/](/company/IBCP/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from IBCP's latest 10-K: [/company/IBCP/risk-factors/](/company/IBCP/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/39311/000003931126000061/ibcp-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Introduction. The following section presents additional information to assess the financial condition and results of operations of Independent Bank Corporation (“IBCP”), its wholly-owned bank, Independent Bank (the “Bank”), and their subsidiaries. This section should be read in conjunction with the interim Condensed Consolidated Financial Statements. We also encourage you to read our 2025 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”). That report includes a list of risk factors that you should consider in connection with any decision to buy or sell our securities.

Overview. We provide banking services to customers located primarily in Michigan’s Lower Peninsula. We also have a loan production office in Fairlawn, Ohio. As a result, our success depends to a great extent upon the economic conditions in Michigan’s Lower Peninsula.

Recent Developments. Macroeconomic and market conditions, including interest-rate volatility, inflationary pressures, recessionary concerns, uncertainty regarding fiscal, trade, regulatory and monetary policy, geopolitical conflicts in the Middle East and elsewhere, volatility in energy and commodity prices, competition for deposits and funding, and conditions affecting customer confidence, continue to create economic uncertainty for our customers, the markets in which we operate and the financial services industry. The extent to which these pressures and other factors may impact our business, results of operations, asset valuations, financial condition, and customers will depend on future developments, which continue to be highly uncertain and difficult to predict. Potential adverse effects may include reduced loan demand, changes in deposit levels or costs, pressure on liquidity and net interest margin, increased borrower delinquencies or defaults, lower collateral values, increased provision for credit losses or allowance for credit losses, and changes in the valuation or recoverability of goodwill, other intangible assets, securities available for sale ("AFS"), securities held to maturity ("HTM"), capitalized mortgage loan servicing rights or deferred tax assets.

On March 18, 2026, we entered into a definitive merger agreement with HCB Financial Corp. ("HCB") (the "Merger Agreement") providing for a business combination of Independent Bank Corporation ("IBCP") and HCB. On July 1, 2026, HCB was merged with and into IBCP, with IBCP as the surviving corporation (the "Merger"). As a result of the Merger, Highpoint Community Bank became a wholly-owned subsidiary of IBCP as of July 1, 2026. IBCP intends to consolidate Highpoint Community Bank with and into Independent Bank (with Independent Bank as the surviving institution) during the fourth quarter of 2026.

We paid aggregate Merger consideration of approximately $74.9 million, consisting of 1.59 million shares of IBCP common stock and $17.5 million in cash, for all of the shares of HCB common stock issued and outstanding immediately before the effective time of the Merger.

At June 30, 2026, HCB had $591.0 million of total assets, $371.9 million of loans and loans held for sale, $539.9 million of deposits and $47.6 million of shareholders’ equity. HCB reported unaudited net income of $0.99 million in the first six months of 2026. The HCB first six months 2026 results were adversely impacted due to $1.79 million of merger expenses. We expect the Merger to have a significant impact on our third quarter 2026 results because of the inclusion of their operations for the first time that quarter and merger related expenses.

It is against this backdrop that we discuss our results of operations and financial condition for the second quarter of 2026 as compared to earlier periods.

RESULTS OF OPERATIONS

Summary. We recorded net income of $18.8 million and $16.9 million during the three months ended June 30, 2026 and 2025, respectively. The increase in 2026 second quarter results as compared to 2025 is due primarily to a $3.3 million increase in net interest income, a $1.8 million favorable change in the fair value due to price of capitalized mortgage loan servicing rights and a $1.6 million gain on equity securities at fair value that were partially offset by a $4.0 million increase in non-interest expense and a $1.2 million increase in the provision for credit losses.

We recorded net income of $35.7 million and $32.5 million during the six months ended June 30, 2026 and 2025, respectively. The increase in 2026 year-to-date results as compared to 2025 is primarily due to a $6.5 million increase in net interest income, a $2.8 million favorable change in the fair value due to price of capitalized mortgage loan servicing rights and a $1.6 million gain on equity securities at fair value that was partially offset by an $8.1 million increase in non-interest expense.

72

Index

Key performance ratios

[[GREPCENT_TABLE]]
[["","Three months ended June 30,","","Six months ended June 30,"],["","2026","","2025","","2026","","2025"],["Net income (annualized) to"],["Average assets","1.37","%","","1.27","%","","1.30","%","","1.22","%"],["Average shareholders\u2019 equity","14.52","%","","14.66","%","","13.98","%","","14.19","%"],["Net income per common share"],["Basic","$","0.91","","","$","0.81","","","$","1.73","","","$","1.56"],["Diluted","0.90","","","0.81","","","1.72","","","1.54"]]
[[/GREPCENT_TABLE]]

Net interest income. Net interest income is the most important source of our earnings and thus is critical in evaluating our results of operations. Changes in our net interest income are primarily influenced by our level of interest-earning assets and the income or yield that we earn on those assets and the manner and cost of funding our interest-earning assets. Certain macro-economic factors can also influence our net interest income such as the level and direction of interest rates, the difference between short-term and long-term interest rates (the steepness of the yield curve) and the general strength of the economies in which we are doing business. Finally, risk management plays an important role in our level of net interest income. The ineffective management of credit risk and interest-rate risk in particular can adversely impact our net interest income.

Our 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. This increase primarily reflects a $183.6 million increase in average interest-earning assets and a 13 basis point increase in our tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”).

For the first six months of 2026, net interest income totaled $94.8 million, an increase of $6.5 million, or 7.3% from 2025. This increase primarily reflects a $157.3 million increase in average interest-earning assets and a 14 basis point increase in our net interest margin.

The increase in average interest-earning assets in both the three and six month periods of 2026 as compared to the same period in 2025 primarily reflects growth in commercial loans funded from decreases in interest bearing cash deposits, installment loans and securities available for sale and held to maturity as well as an increase in deposits.

The increase in our net interest margin during the three and six month period in 2026 is attributed to 28 basis point decreases in interest expense as a percent of average interest-earning assets ("Cost of Funds") that were only partially offset by 15 and 14 basis point decreases, respectively in interest income as a percent of average interest-earning assets ("Asset Yield"). These decreases are primarily attributed to the decreases in the federal funds rate since January of 2025 as the average federal funds rate was 75 basis points lower during the first quarter of 2026 as compared to the first quarter of 2025. Our Cost of Funds has been positively impacted by deposit pricing sensitivity to the decreases in interest rates discussed above as well as a favorable shift in mix with growth in lower cost non-maturity deposits and runoff in wholesale funding and subordinated debt. Our Asset Yield has been negatively impacted by lower rates on variable rate earning assets. However, this impact has been partially offset by the origination of new fixed rate loans at rates higher than those in our current portfolio, as well as a shift in earning asset mix from generally lower rate investment securities, consumer loans and overnight liquidity to higher rate loans. See Asset/liability management.

Our net interest income is also impacted by our level of non-accrual loans. In the second quarter and first six months of 2026, non-accrual loans averaged $39.4 million and $37.7 million, respectively. In the second quarter and first six months of 2025, non-accrual loans averaged $7.7 million and $7.2 million, respectively. In addition, in the second quarter and first six months of 2026 we had net recoveries of $0.16 million and $0.02 million, respectively of unpaid interest on loans placed on or taken off non-accrual or on loans previously charged-off compared to net recoveries of $0.11 million and $0.22 million, respectively, during the same periods in 2025.

73

Index

Average Balances and Tax Equivalent Rates

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,"],["","2026","","2025"],["","Average Balance","","Interest","","Rate (2)","","Average Balance","","Interest","","Rate (2)"],["","(Dollars in thousands)"],["Assets"],["Taxable loans","$","4,361,790","","","$","60,566","","","5.56","%","","$","4,122,331","","","$","59,472","","","5.78","%"],["Tax-exempt loans (1)","6,787","","","98","","","5.78","","","6,440","","","80","","","4.98"],["Taxable securities","519,245","","","3,300","","","2.54","","","591,720","","","3,796","","","2.57"],["Tax-exempt securities (1)","258,177","","","2,944","","","4.56","","","254,332","","","3,200","","","5.03"],["Interest bearing cash","57,067","","","531","","","3.73","","","45,468","","","505","","","4.45"],["Other investments","16,575","","","295","","","7.13","","","15,799","","","269","","","6.81"],["Interest Earning Assets","5,219,641","","","67,734","","","5.20","","","5,036,090","","","67,322","","","5.35"],["Cash and due from banks","52,543","","","","","","","52,648"],["Other assets, net","249,564","","","","","","","236,221"],["Total Assets","$","5,521,748","","","","","","","$","5,324,959"],["Liabilities"],["Savings and interest-bearing checking","$","3,016,119","","","12,007","","","1.60","","","$","2,796,701","","","12,609","","","1.81"],["Time deposits","797,607","","","6,315","","","3.18","","","859,773","","","7,853","","","3.66"],["Other borrowings","82,722","","","1,070","","","5.19","","","107,003","","","1,801","","","6.74"],["Interest Bearing Liabilities","3,896,448","","","19,392","","","2.00","","","3,763,477","","","22,263","","","2.37"],["Non-interest bearing deposits","998,860","","","","","","","990,165"],["Other liabilities","107,001","","","","","","","109,597"],["Shareholders\u2019 equity","519,439","","","","","","","461,720"],["Total liabilities and shareholders\u2019 equity","$","5,521,748","","","","","","","$","5,324,959"],["Net Interest Income","","","$","48,342","","","","","","","$","45,059"],["Net Interest Income as a Percent of Average Interest Earning Assets","","","","","3.71","%","","","","","","3.58","%"]]
[[/GREPCENT_TABLE]]

_________________________________

(1)Interest on tax-exempt loans and securities available for sale is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

(2)Annualized

74

Index

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/39311/000003931126000009/ibcp-20251231_d2.htm
Complete FY 2025 MD&A: /company/IBCP/mda/fy2025/

Extracted from a later financial-section MD&A body after the formal Item 7 span was a short reference. Source document followed from filing index: ibcp-20251231.htm.
Confidence: high
Filing date: 2026-03-06
Report date: 2025-12-31

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Disclaimer Regarding Forward-Looking Statements. Statements in this report that are not statements of historical fact, including statements that include terms such as “will,” “may,” “should,” “believe,” “expect,” “forecast,” “anticipate,” “estimate,” “project,” “intend,” “likely,” “optimistic” and “plan” and statements about future or projected financial and operating results, plans, projections, objectives, expectations, and intentions, are forward-looking statements. Forward-looking statements include, but are not limited to, descriptions of plans and objectives for future operations, products or services; projections of our future revenue, earnings or other measures of economic performance; forecasts of credit losses and other asset quality trends; statements about our business and growth strategies; and expectations about economic and market conditions and trends. These forward-looking statements express our current expectations, forecasts of future events, or long-term goals. They are based on assumptions, estimates, and forecasts that, although believed to be reasonable, may turn out to be incorrect. Actual results could differ materially from those discussed in the forward-looking statements for a variety of reasons, including:

•economic, market, operational, liquidity, credit, and interest rate risks associated with our business;

•economic conditions generally and in the financial services industry, particularly economic conditions within Michigan and the regional and local real estate markets in which our bank operates;

•the failure of assumptions underlying the establishment of, and provisions made to, our allowance for credit losses;

•increased competition in the financial services industry, either nationally or regionally;

•our ability to achieve loan and deposit growth;

•volatility and direction of market interest rates;

•the continued services of our management team; and

•implementation of new legislation, which may have significant effects on us and the financial services industry.

This list provides examples of factors that could affect the results described by forward-looking statements contained in this report, but the list is not intended to be all-inclusive. The risk factors disclosed in Part I – Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, as updated by any new or modified risk factors disclosed in Part II – Item 1A of any subsequently filed Quarterly Report on Form 10-Q, include the primary risks our management believes could materially affect the results described by forward-looking statements in this report. However, those risks are not the only risks we face. Our results of operations, cash flows, financial position, and prospects could also be materially and adversely affected by additional factors that are not presently known to us, that we currently consider to be immaterial, or that develop after the date of this report. We cannot assure you that our future results will meet expectations. While we believe the forward-looking statements in this report are reasonable, you should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. We do not undertake, and expressly disclaim, any obligation to update or alter any statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Introduction. The following section presents additional information to assess the financial condition and results of operations of Independent Bank Corporation (“IBCP”), its wholly-owned bank, Independent Bank (the “Bank”), and their subsidiaries. This section should be read in conjunction with the consolidated financial statements and the supplemental financial data contained elsewhere in this annual report. We also encourage you to read our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”). That report includes a list of risk factors that you should consider in connection with any decision to buy or sell our securities.

Overview. We provide banking services to customers located primarily in Michigan’s Lower Peninsula and also have one mortgage loan production facility in Ohio (Fairlawn). As a result, our success depends to a great extent upon the economic conditions in Michigan’s Lower Peninsula.

40

Table of Contents

Recent Developments. Pressures from various global and national macroeconomic conditions, including significant volatility and uncertainty with U.S. and global market conditions, the direct and indirect impacts of potential changes to U.S. trade policies, recessionary concerns, uncertainty regarding future interest rates, foreign currency exchange rate fluctuations, the continuation of the Russia-Ukraine war, ongoing and potentially increasing conflict in the Middle East, and potential governmental responses to these events, continue to create significant economic uncertainty. In addition, pursuit of various initiatives announced by the Trump administration may create some degree of volatility in our customers’ businesses, regulation of the financial services industry, and the markets in which we operate.

The extent to which these pressures and other factors may impact our business, results of operations, asset valuations, financial condition, and customers will depend on future developments, which continue to be highly uncertain and difficult to predict. Material adverse impacts may include all or a combination of valuation impairments on our other intangibles, goodwill, securities available for sale ("AFS"), securities held to maturity ("HTM"), loans, capitalized mortgage loan servicing rights or deferred tax assets.

It is against this backdrop that we discuss our results of operations and financial condition in 2025 as compared to earlier periods.

RESULTS OF OPERATIONS

Summary. We recorded net income of $68.5 million, or $3.27 per diluted share, in 2025, net income of $66.8 million, or $3.16 per diluted share, in 2024, and net income of $59.1 million, or $2.79 per diluted share, in 2023.

KEY PERFORMANCE RATIOS

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["","2025","","2024","","2023"],["Net income to"],["Average shareholders' equity","14.43","%","","15.66","%","","16.04","%"],["Average assets","1.27","","","1.27","","","1.15"],["Net income per common share"],["Basic","$","3.30","","","$","3.20","","","$","2.82"],["Diluted","3.27","","","3.16","","","2.79"]]
[[/GREPCENT_TABLE]]

Net interest income. Net interest income is the most important source of our earnings and thus is critical in evaluating our results of operations. Changes in our net interest income are primarily influenced by our level of interest-earning assets and the income or yield that we earn on those assets and the manner and cost of funding our interest-earning assets. Certain macroeconomic factors can also influence our net interest income such as the level and direction of interest rates, the difference between short-term and long-term interest rates (the steepness of the yield curve) and the general strength of the economies in which we are doing business. Finally, risk management plays an important role in our level of net interest income. The ineffective management of credit risk and interest-rate risk in particular can adversely impact our net interest income.

Net interest income totaled $180.0 million during 2025, compared to $166.2 million and $156.3 million during 2024 and 2023, respectively. The increase in net interest income in 2025 compared to 2024 primarily reflects a $159.9 million increase in average interest-earning assets and an 18 basis point increase in our tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”).

The increase in net interest income in 2024 compared to 2023 reflects a $128.5 million increase in average interest-earning assets and a 12 basis point increase in our tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”).

The increase in average interest-earning assets during 2025 and 2024 primarily reflects growth in commercial and mortgage loans. The growth in both years was funded primarily by an increase in deposits and decreases in securities AFS, securities HTM and installment loans.

The 18 basis point increase in the net interest margin during 2025 as compared to 2024 primarily reflects a 27 basis point decrease in interest expense as a percent of average interest-earning assets ("Cost of Funds") which was partially

41

Table of Contents

offset by a nine basis point decrease in interest income as a percent of average interest-earning assets ("Asset Yield"). These decreases are primarily attributed to the decreases in the federal funds rate since September of 2024. Our Cost of Funds has been positively impacted by deposit pricing sensitivity to the decreases in interest rates discussed above. Our Asset Yield has been negatively impacted by lower rates on variable rate earning assets. However, this impact has been partially offset by the origination of new fixed rate loans at rates higher than those in our current portfolio, as well as a shift in earning asset mix from generally lower rate investment securities to higher rate loans. See Asset/liability management.

The 12 basis point increase in the net interest margin during 2024 as compared to 2023 primarily reflects a 42 basis point increase in our Asset Yield which was partially offset by a 30 basis point increase in our Cost of Funds. These increases are primarily attributed to the impact of federal funds rate increases during this period as well as a change in the mix of earnings assets and funding liabilities. During 2024 we saw a shift in earning assets from securities AFS and HTM and overnight cash balances to commercial and mortgage loans. In addition our funding mix had seen additional shifting from non-interest bearing deposits to interest-bearing deposits and an increase in time deposits.

Our net interest income is also impacted by our level of non-accrual loans. Average non-accrual loans totaled $12.6 million, $4.6 million and $4.8 million in 2025, 2024 and 2023, respectively.

AVERAGE BALANCES AND RATES

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/IBCP/mda/fy2025/
All MD&A years: /company/IBCP/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/IBCP/mda/fy2024/): filed 2025-03-07; accession 0000039311-25-000044 (https://www.sec.gov/Archives/edgar/data/39311/000003931125000044/ibcp-20241231_d2.htm)
- [FY 2023 MD&A](/company/IBCP/mda/fy2023/): filed 2024-03-08; accession 0000039311-24-000035 (https://www.sec.gov/Archives/edgar/data/39311/000003931124000035/ibcp-20231231_d2.htm)
- [FY 2022 MD&A](/company/IBCP/mda/fy2022/): filed 2023-03-03; accession 0000039311-23-000035 (https://www.sec.gov/Archives/edgar/data/39311/000003931123000035/ibcp-20221231_d2.htm)
- [FY 2021 MD&A](/company/IBCP/mda/fy2021/): filed 2022-03-04; accession 0001140361-22-007951 (https://www.sec.gov/Archives/edgar/data/39311/000114036122007951/brhc10034257_10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6022 State Commercial Banks) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/IBCP.md · JSON record: /company/IBCP.json · verified financials: /company/IBCP/financials.json / /company/IBCP/financials.csv · machine TOC for the whole site: /llms.txt