Independent Bank Corporation Reports 2026 Third Quarter Earnings of $0.80 Per Diluted Share

GRAND RAPIDS, Mich., Oct. 27, 2026 (GLOBE NEWSWIRE) — Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2026 net income of $17.9 million, or $0.80 per diluted share, versus net income of $17.5 million, or $0.84 per diluted share, in the prior-year period.

Highlights for the third quarter of 2026 include:

Net growth in loans of $116.6 million or 10.5% annualized from June 30, 2026, exclusive of $366.7 million of Highpoint Community Bank loans, acquired on July 1, 2026. Total loan growth of $483.3 million, or 10.95% (not annualized), during the third quarter;
Net growth in total deposits of $115.8 million or 9.4% annualized from June 30, 2026, excluding $543.5 million Highpoint Community Bank deposits, acquired on July 1, 2026. Total deposit growth of $659.3 million, or 13.56% (not annualized), during the third quarter;
Net interest margin increased to 3.79% for the third quarter of 2026, a 12 basis point increase from the prior quarter, and a 28 basis point increase from the third quarter of 2025. On a fully tax-equivalent basis⁽¹⁾, net interest margin was 3.82%, an 11 basis point increase from the prior quarter. Excluding Highpoint Community Bank acquisition-related purchase accounting accretion⁽¹⁾, net interest margin was 3.76%, a 5 basis point increase from the prior quarter;
Net interest income increased $7.4 million from the prior quarter ended June 30, 2026;
A return on average assets and a return on average equity of 1.14% and 12.17%, respectively, for the quarter ended September 30, 2026;
Income before income tax of $21.5 million for the quarter ended September 30, 2026, compared to $22.7 million in the prior quarter and $21.2 million for the quarter ended September 30, 2025. Pre-tax, pre-provision net revenue⁽¹⁾ increased to $26.3 million for the quarter ended September 30, 2026, from $25.4 million during the prior quarter and $23.2 million for the quarter ended September 30, 2025;
The payment of a $0.28 per share quarterly dividend on common stock on August 14, 2026; and
Completed the acquisition of HCB Financial Corp. on July 1, 2026.

(1) Non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below.

William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “Our third quarter results reflect strong organic growth, continued margin expansion, and the first full quarter of contributions from Highpoint Community Bank (“Highpoint”). Net income was $17.9 million, or $0.80 per diluted share. Excluding after tax merger-related expenses of $2.8 million, adjusted net income⁽¹⁾ was $20.6 million or $0.92 per diluted share. Net interest income increased 15.4% from the second quarter to $55.3 million, and net interest margin expanded 12 basis points to 3.79% (11 basis points to 3.82% on a tax-equivalent basis⁽¹⁾).”

“We delivered outstanding annualized linked-quarter commercial loan growth of 20.9% and total deposit growth of 9.4%, each excluding Highpoint, underscoring the strength of our relationship banking strategy and momentum in our core franchise. Credit loss provisioning increased due to new loans added to the portfolio, including acquired Highpoint loans unfunded lending commitments and an increase in the specific reserve for one commercial relationship, while net loan charge-offs remained low at $0.2 million.”

“As we prepare for Highpoint’s system conversion in November, our teams remain focused on a seamless customer transition and on realizing the long-term benefits of the combined banks. We thank our colleagues for their continued commitment to our customers and their efforts to bring our two organizations together.”

(1) Non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below.

Significant items impacting comparable third quarter 2026 and 2025 results include the following (per share after-tax amounts are calculated using an assumed 21% tax rate):

The provision for credit losses was an expense of $4.8 million ($0.17 per diluted share, after taxes) for the three-month period ended September 30, 2026, as compared to an expense of $2.0 million ($0.08 per diluted share, after taxes) for the three-month period ended September 30, 2025.

Merger-related expenses were $3.5 million ($0.12 per diluted share, after taxes) for the three-month period ended September 30, 2026, as compared to zero for the three-month period ended September 30, 2025.

Increases (decreases) in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of $3.4 million ($0.12 per diluted share, after taxes) for the three-month period ended September 30, 2026, as compared to $(0.6) million ($(0.02) per diluted share, after taxes) for the three-month period ended September 30, 2025.

Operating Results
The Company’s net interest income totaled $55.3 million during the third quarter of 2026, an increase of $9.9 million, or 21.8% from the year-ago period, and an increase of $7.4 million, or 15.4%, from the second quarter of 2026. The Company’s net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.79% during the third quarter of 2026, compared to 3.51% in the year-ago period and 3.67% in the second quarter of 2026. The Company’s tax equivalent net interest margin (Non-GAAP) was 3.82% during the third quarter of 2026, compared to 3.54% in the year-ago period, and 3.71% in the second quarter of 2026. The linked quarter increase in the net interest margin was supported by a 13 basis point increase on earning asset yield.

The year-over-year quarter and linked quarter increases in net interest income were due to an increase in average interest-earning assets, higher net interest margin, and a six basis point benefit from the accretion of purchase accounting adjustments. Average interest-earning assets were $5.82 billion in the third quarter of 2026, compared to $5.16 billion in the year-ago quarter and $5.22 billion in the second quarter of 2026.

Non-interest income totaled $15.8 million for the third quarter of 2026, compared to $15.3 million in the second quarter of 2026 and $11.9 million in the comparable prior year period. This change was primarily due to variances in mortgage loan servicing related revenues.

Net gains on mortgage loans were $1.0 million in the third quarter of 2026, $1.7 million in the second quarter of 2026 and $1.5 million in the third quarter of 2025. The decreases in net gains on mortgage loans in the current quarter were due to unfavorable fair value adjustments on loans originated for sale.

Mortgage loan servicing, net, generated income of $4.1 million, $2.5 million and $0.1 million in the quarters ended September 30, 2026, June 30, 2026, and September 30, 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 $37.8 million and $31.5 million at September 30, 2026 and September 30, 2025, respectively.

Non-interest expenses totaled $44.8 million in the third quarter of 2026, compared to $37.8 million in the prior quarter and $34.1 million in the year-ago period. The increase in non-interest expense is primarily due to increases related to the merger with Highpoint Community Bank in compensation and employee benefits, merger-related expenses, data processing and amortization of other intangibles.

The Company recorded income tax expense of $3.6 million in the third quarter of 2026. This compares to an income tax expense of $3.9 million in the second quarter of 2026 and $3.7 million in the third quarter of 2025.

Asset Quality

The provision for credit losses was an expense of $4.81 million, $2.72 million and $1.99 million in the third quarter of 2026, second quarter of 2026 and third quarter of 2025, respectively. The increase in the current period provision is primarily attributable to an increase in specific reserves associated with one commercial lending relationship, as well as loan growth and an increase in unfunded commitments. The Company recorded loan net charge offs of $0.21 million, $0.37 million and $0.73 million in the quarters ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. At September 30, 2026, the allowance for credit losses for loans totaled $73.7 million, or 1.51% of total portfolio loans compared to $62.5 million, or 1.49% of total portfolio loans at September 30, 2025.

Non-performing loans totaled $39.2 million, or 0.80% of total portfolio loans, at September 30, 2026, compared to $32.8 million, or 0.74%, at June 30, 2026 and $20.4 million, or 0.48%, at September 30, 2025. The increase was primarily in commercial loans, where non-performing loans rose to $37.6 million from $13.8 million in the year ago period, primarily driven by four commercial loan relationships being placed on non-accrual status. Government-guaranteed loans of $11.1 million are excluded from these totals. The allowance for credit losses represented 188.26% of non-performing loans at September 30, 2026, compared to 306.85% at September 30, 2025.

Balance Sheet, Capital and Liquidity

Total assets were $6.26 billion at September 30, 2026, an increase of $599.8 million from June 30, 2026. Loans, excluding loans held for sale, were $4.90 billion at September 30, 2026, compared to $4.41 billion at June 30, 2026. Deposits totaled $5.52 billion at September 30, 2026, an increase of $659.3 million from June 30, 2026. In addition to the deposits acquired from the acquisition of Highpoint Community Bank, this increase is related to an inflow of deposits from business and municipal customers.

Cash and cash equivalents totaled $181.8 million at September 30, 2026, versus $165.5 million at June 30, 2026. Securities available for sale (“AFS”) totaled $519.6 million at September 30, 2026, versus $494.0 million at June 30, 2026.

Total shareholders’ equity was $577.3 million at September 30, 2026, or 9.22% of total assets compared to $528.4 million or 9.33% at June 30, 2026. The increase in shareholders’ equity is primarily the result of shares issued in connection with the acquisition of HCB Financial Corp. and earnings retention that was partially offset by dividend payments and an increase in the accumulated other comprehensive loss. Tangible common equity (non-GAAP) totaled $510.0 million at September 30, 2026, or $23.10 per share compared to $499.3 million or $24.24 per share at June 30, 2026. The decrease in tangible common equity per share primarily reflects $39.1 million of goodwill and other intangible assets recorded in the HCB Financial Corp. acquisition.

The Company’s wholly owned subsidiaries, Independent Bank and Highpoint Community Bank, exceeded the “well capitalized” thresholds for regulatory purposes at September 30, 2026, based on preliminary ratios.

At September 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 $858.9 million and $1.13 billion, respectively. We also had approximately $463.8 million in fair value of unpledged securities AFS and HTM at September 30, 2026 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $437.9 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 nine-month period ended September 30, 2026, the Company repurchased 119,425 shares of common stock, for an aggregate purchase price of $4.2 million.

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 Tuesday, October 27, 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/BI8251941b98524fec94bd98aeea90727e.

In order to view the webcast and presentation slides, please go to https://edge.media-server.com/mmc/p/oko972r9 during the time of the call. A replay of the webcast will be available until October 27, 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

	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
	(Unaudited)
	(In thousands, except share amounts)
Assets
Cash and due from banks	$	68,275		$	64,089		$	48,475		$	52,235		$	56,378
Interest bearing deposits		113,540			101,361			126,440			86,152			152,308
Cash and Cash Equivalents		181,815			165,450			174,915			138,387			208,686
Interest bearing deposits – time		746			—			—			—			—
Equity securities at fair value		—			1,088			—			—			—
Securities available for sale at fair value		519,616			493,952			482,295			495,909			502,583
Securities held to maturity at cost		292,884			287,574			301,007			309,523			321,450
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		20,452			18,940			18,102			18,102			18,102
Loans held for sale, carried at fair value		12,836			16,824			19,714			9,031			11,654
Loans
Commercial		2,763,222			2,359,988			2,267,369			2,213,557			2,125,053
Mortgage		1,612,243			1,533,268			1,520,358			1,524,821			1,517,656
Installment		521,684			520,608			520,372			537,907			555,574
Total Loans		4,897,149			4,413,864			4,308,099			4,276,285			4,198,283
Allowance for credit losses		(73,724	)		(65,673	)		(63,719	)		(63,445	)		(62,459	)
Net Loans		4,823,425			4,348,191			4,244,380			4,212,840			4,135,824
Other real estate and repossessed assets, net		759			710			767			896			589
Property and equipment, net		57,235			44,549			42,319			38,972			38,805
Bank-owned life insurance		63,424			53,567			54,072			53,750			53,875
Capitalized mortgage loan servicing rights, carried at fair value		37,839			33,949			32,233			31,493			31,522
Other intangibles, net		17,045			771			886			1,001			1,123
Goodwill		50,219			28,300			28,300			28,300			28,300
Accrued income and other assets		185,337			169,976			158,519			167,516			140,600
Total Assets	$	6,263,632		$	5,663,841		$	5,557,509		$	5,505,720		$	5,493,113

Liabilities and Shareholders' Equity
Deposits
Non-interest bearing	$	1,126,676		$	1,030,460		$	991,140		$	991,984		$	1,003,521
Savings and interest-bearing checking		2,591,601			2,143,895			2,146,403			2,113,260			2,040,462
Reciprocal		1,052,489			1,025,016			1,028,874			974,921			981,115
Time		750,112			662,248			657,043			662,858			660,815
Brokered time		514			514			57,220			18,659			173,242
Total Deposits		5,521,392			4,862,133			4,880,680			4,761,682			4,859,155
Other borrowings		4,009			127,005			27,010			77,003			2,006
Subordinated debentures, net		39,915			39,898			39,881			39,864			39,847
Accrued expenses and other liabilities		121,020			106,392			99,385			124,220			101,363
Total Liabilities		5,686,336			5,135,428			5,046,956			5,002,769			5,002,371

Shareholders’ Equity
Preferred stock		—			—			—			—			—
Common stock		361,741			307,820			307,679			307,845			311,770
Retained earnings		288,569			276,934			263,898			252,794			239,602
Accumulated other comprehensive loss		(73,014	)		(56,341	)		(61,024	)		(57,688	)		(60,630	)
Total Shareholders’ Equity		577,296			528,413			510,553			502,951			490,742
Total Liabilities and Shareholders’ Equity	$	6,263,632		$	5,663,841		$	5,557,509		$	5,505,720		$	5,493,113

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations

	Three Months Ended
	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
	(Unaudited)
Interest Income	(In thousands, except per share amounts)
Interest and fees on loans	$	68,998		$	60,643		$	59,249		$	60,205		$	61,325
Interest on securities
Taxable		3,902			3,300			3,354			3,513			3,660
Tax-exempt		2,755			2,525			2,522			2,633			2,767
Other investments		1,660			826			1,044			1,074			1,538
Total Interest Income		77,315			67,294			66,169			67,425			69,290
Interest Expense
Deposits		21,289			18,322			18,397			20,109			21,972
Other borrowings and subordinated debt and debentures		769			1,070			917			962			1,957
Total Interest Expense		22,058			19,392			19,314			21,071			23,929
Net Interest Income		55,257			47,902			46,855			46,354			45,361
Provision for credit losses		4,807			2,717			362			1,923			1,991
Net Interest Income After Provision for Credit Losses		50,450			45,185			46,493			44,431			43,370
Non-interest Income
Interchange income		4,638			3,576			3,234			3,186			4,157
Service charges on deposit accounts		3,353			3,100			2,935			3,096			3,131
Net gains (losses) on assets
Mortgage loans		1,011			1,651			1,308			1,372			1,474
Equity securities at fair value		65			1,600			—			—			—
Securities available for sale		(17	)		(90	)		(26	)		(15	)		(36	)
Mortgage loan servicing, net		4,074			2,460			1,646			899			74
Other		2,684			3,037			2,951			3,420			3,137
Total Non-interest Income		15,808			15,334			12,048			11,958			11,937
Non-interest Expense
Compensation and employee benefits		24,487			22,560			21,829			22,563			21,125
Data processing		4,761			4,152			3,952			3,428			3,784
Occupancy, net		2,419			2,073			2,413			2,171			2,127
Merger related expense		3,457			369			300			—			—
Interchange expense		1,446			1,224			1,191			1,165			1,180
Advertising		738			1,180			1,210			991			526
Furniture, fixtures and equipment		1,124			927			894			897			892
Loan and collection		1,023			1,038			752			589			618
FDIC deposit insurance		819			738			799			861			615
Legal and professional		774			613			591			787			682
Litigation expense		—			350			1,500			—			—
Communications		537			464			593			471			465
Amortization of other intangibles		917			115			115			122			121
Other		2,257			2,006			2,172			2,033			1,996
Total Non-interest Expense		44,759			37,809			38,311			36,078			34,131
Income Before Income Tax		21,499			22,710			20,230			20,311			21,176
Income tax expense		3,649			3,905			3,355			1,739			3,674
Net Income	$	17,850		$	18,805		$	16,875		$	18,572		$	17,502
Net Income Per Common Share
Basic	$	0.81		$	0.91		$	0.82		$	0.90		$	0.85
Diluted	$	0.80		$	0.90		$	0.81		$	0.89		$	0.84

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (continued)

	Nine Months Ended
	September 30, 2026			September 30, 2025
	(Unaudited)
Interest Income	(In thousands, except per share amounts)
Interest and fees on loans	$	188,890		$	178,628
Interest on securities
Taxable		10,556			11,492
Tax-exempt		7,802			8,310
Other investments		3,530			3,882
Total Interest Income		210,778			202,312
Interest Expense
Deposits		58,008			63,389
Other borrowings and subordinated debt and debentures		2,756			5,262
Total Interest Expense		60,764			68,651
Net Interest Income		150,014			133,661
Provision for credit losses		7,886			4,212
Net Interest Income After Provision for Credit Losses		142,128			129,449
Non-interest Income
Interchange income		11,448			10,674
Service charges on deposit accounts		9,388			8,926
Net gains (losses) on assets
Mortgage loans		3,970			5,408
Equity securities at fair value		1,665			—
Securities available for sale		(133	)		(355	)
Mortgage loan servicing, net		8,180			(72	)
Other		8,672			9,105
Total Non-interest Income		43,190			33,686
Non-interest Expense
Compensation and employee benefits		68,876			62,631
Data processing		12,865			11,360
Occupancy, net		6,905			6,396
Merger related expense		4,126			—
Interchange expense		3,861			3,476
Advertising		3,128			2,220
Furniture, fixtures and equipment		2,945			2,570
Loan and collection		2,813			2,148
FDIC deposit insurance		2,356			1,963
Legal and professional		1,978			1,661
Litigation expense		1,850			—
Communications		1,594			1,526
Amortization of other intangibles		1,147			365
Other		6,435			5,839
Total Non-interest Expense		120,879			102,155
Income Before Income Tax		64,439			60,980
Income tax expense		10,909			11,011
Net Income	$	53,530		$	49,969
Net Income Per Common Share
Basic	$	2.54		$	2.40
Diluted	$	2.51		$	2.38

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data

	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
	(unaudited)
	(Dollars in thousands except per share data)
Three Months Ended
Basic net income per common share	$	0.81		$	0.91		$	0.82		$	0.90		$	0.85
Diluted net income per common share		0.80			0.90			0.81			0.89			0.84
Cash dividend per share		0.28			0.28			0.28			0.26			0.26

Average shares outstanding		22,136,532			20,603,937			20,574,506			20,639,758			20,702,235
Average diluted shares outstanding		22,347,223			20,807,061			20,780,188			20,848,634			20,904,857

Performance Ratios
Return on average assets		1.14	%		1.37	%		1.24	%		1.35	%		1.27	%
Return on average equity		12.17			14.52			13.43			14.75			14.57
Return on average tangible equity (2)		14.48			15.38			14.25			15.67			15.54
Efficiency ratio (1)		61.25			60.64			64.33			61.18			58.86

As a Percent of Average Interest-Earning Assets (1) (2)
Interest income		5.33	%		5.20	%		5.15	%		5.24	%		5.38	%
Interest expense		1.51			1.49			1.50			1.62			1.84
Net interest margin		3.82			3.71			3.65			3.62			3.54

Average Balances
Loans	$	4,839,412		$	4,368,577		$	4,315,371		$	4,249,389		$	4,201,557
Securities		812,965			777,422			796,251			815,269			826,362
Total earning assets		5,818,800			5,219,641			5,209,360			5,162,381			5,159,681
Total assets		6,209,611			5,521,748			5,522,244			5,449,518			5,451,922
Deposits		5,465,721			4,812,586			4,832,089			4,774,179			4,786,408
Interest bearing liabilities		4,382,511			3,896,448			3,892,702			3,846,367			3,862,024
Shareholders' equity		581,997			519,439			509,523			499,445			476,422

End of Period
Capital
Tangible common equity ratio (2)		8.23	%		8.86	%		8.71	%		8.65	%		8.44	%
Tangible common equity ratio excluding accumulated other comprehensive loss (2)		9.22			9.67			9.61			9.51			9.35
Average equity to average assets		9.37			9.41			9.23			9.16			8.74
Total capital to risk-weighted assets (3)		13.17			13.77			13.79			13.59			13.66
Tier 1 capital to risk-weighted assets (3)		11.92			12.52			12.54			12.33			12.41
Common equity tier 1 capital to risk-weighted assets (3)		11.17			11.70			11.70			11.49			11.54
Tier 1 capital to average assets (3)		9.98			10.58			10.34			10.27			10.07
Common shareholders' equity per share of common stock	$	26.14		$	25.65		$	24.80		$	24.48		$	23.72
Tangible common equity per share of common stock (2)		23.10			24.24			23.38			23.05			22.29
Total shares outstanding		22,081,450			20,602,535			20,585,805			20,548,893			20,691,604

(1)	Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
(2)	Refer to Reconciliation of Non-GAAP Financial Measures.
(3)	September 30, 2026 ratios are preliminary.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data (continued)

Mortgage Loan Servicing, Net Activity

	Three months ended															Nine months ended
	9/30/2026			6/30/2026			3/31/2026			12/31/2025			9/30/2025			9/30/2026			9/30/2025
Mortgage loan servicing, net:	(In thousands)
Revenue, net	$	1,646		$	1,625		$	1,636		$	1,656		$	1,614		$	4,907		$	5,145
Fair value change due to price		3,445			1,838			933			160			(576	)		6,216			(2,328	)
Fair value change due to pay-downs		(1,017	)		(1,003	)		(923	)		(917	)		(903	)		(2,943	)		(2,656	)
Loss on sale of originated servicing rights		—			—			—			—			(61	)		—			(233	)
Total	$	4,074		$	2,460		$	1,646		$	899		$	74		$	8,180		$	(72	)

Non-performing Loans by Loan Type (1):

	9/30/2026			6/30/2026			3/31/2026			12/31/2025			9/30/2025
Loan Type	(Dollars in thousands)
Commercial	$	37,619		$	32,274		$	27,077		$	23,531		$	13,825
Mortgage		12,084			10,432			9,953			8,683			7,873
Installment		574			981			745			860			900
Subtotal		50,277			43,687			37,775			33,074			22,598
Less – government guaranteed loans		11,116			10,890			10,202			9,947			2,243
Total non-performing loans	$	39,161		$	32,797		$	27,573		$	23,127		$	20,355
Ratio of non-performing loans to total portfolio loans		0.80	%		0.74	%		0.64	%		0.54	%		0.48	%
Ratio of non-performing assets to total assets		0.64	%		0.59	%		0.51	%		0.44	%		0.38	%
Ratio of allowance for credit losses to total non-performing loans		188.26	%		200.24	%		231.09	%		274.33	%		306.85	%
Ratio of allowance for credit losses to total portfolio loans		1.51	%		1.49	%		1.48	%		1.48	%		1.49	%

(1)	Non-performing loans include non-accrual loans and loans 90 days or more past due and still accruing interest. Non-performing assets include total non-performing loans and other real estate and repossessed assets, net.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data (continued)

Independent Bank Regulatory Capital Ratios:

	9/30/2026		6/30/2026		3/31/2026		12/31/2025		9/30/2025		Well Capitalized Minimum

Tier 1 capital to average total assets	9.46	%	9.67	%	9.43	%	9.36	%	9.19	%	5.00	%
Common equity tier 1 capital to risk-weighted assets	11.17	%	11.45	%	11.43	%	11.24	%	11.33	%	6.50	%
Tier 1 capital to risk-weighted assets	11.17	%	11.45	%	11.43	%	11.24	%	11.33	%	8.00	%
Total capital to risk-weighted assets	12.43	%	12.70	%	12.68	%	12.49	%	12.58	%	10.00	%

Highpoint Community Bank Regulatory Capital Ratios:

	9/30/2026 (2)		6/30/2026 (1)		3/31/2026 (1)		12/31/2025 (1)		9/30/2025 (1)		Well Capitalized Minimum

Tier 1 capital to average total assets	7.23	%	8.45	%	8.25	%	8.19	%	7.64	%	5.00	%
Common equity tier 1 capital to risk-weighted assets	12.14	%	14.68	%	14.59	%	15.19	%	14.94	%	6.50	%
Tier 1 capital to risk-weighted assets	12.14	%	14.68	%	14.59	%	15.19	%	14.94	%	8.00	%
Total capital to risk-weighted assets	13.39	%	15.93	%	15.83	%	16.42	%	16.14	%	10.00	%

(1)	Ratios for periods prior to July 1, 2026 represent Highpoint Community Bank’s historical standalone regulatory capital ratios as reported prior to the acquisition and are included for informational purposes.
(2)	September 30, 2026 ratios 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. Tax-equivalent net interest income and net interest margin adjust for the tax-favored status of certain loans and securities, which improves comparability between taxable and tax-exempt assets. Net interest margin excluding acquisition-related accretion, and adjusted net income and adjusted diluted earnings per share excluding merger-related expenses, help investors compare core operating performance across periods without the effects of the HCB Financial Corp. acquisition. Pre-tax, pre-provision net revenue shows earnings capacity before tax and credit costs. These non-GAAP measures supplement, and are not a substitute for, measures calculated in accordance with GAAP, and may not be comparable to similarly titled measures used by other companies.

Net Interest Income and Net Interest Margin (1):


	Three months ended
	9/30/2026					6/30/2026				3/31/2026				12/31/2025				9/30/2025
	Net Interest Income			Net Interest Margin		Net Interest Income		Net Interest Margin		Net Interest Income		Net Interest Margin		Net Interest Income		Net Interest Margin		Net Interest Income		Net Interest Margin
	(Dollars in thousands)
As reported (GAAP)	$	55,257		3.79	%	$	47,902	3.67	%	$	46,855	3.61	%	$	46,354	3.58	%	$	45,361	3.51	%
Add: taxable equivalent		564		0.03			440	0.04			445	0.04			446	0.04			443	0.03
Taxable equivalent (non-GAAP)		55,821		3.82			48,342	3.71			47,300	3.65			46,800	3.62			45,804	3.54
Less: Net accretion of HCB acquired loans		(852	)	(0.06	)		—	—			—	—			—	—			—	—
Less: Net accretion of HCB acquired securities		(80	)	—			—	—			—	—			—	—			—	—
Excluding HCB acquisition-related purchase accounting accretion	$	54,889		3.76	%	$	48,342	3.71	%	$	47,300	3.65	%	$	46,800	3.62	%	$	45,804	3.54	%

	Nine months ended
	9/30/2026					9/30/2025
	Net Interest Income			Net Interest Margin		Net Interest Income		Net Interest Margin
	(Dollars in thousands)
As reported (GAAP)	$	150,014		3.70	%	$	133,661	3.50	%
Add: taxable equivalent adjustment		1,449		0.03			1,339	0.04
Taxable equivalent (non-GAAP)		151,463		3.73			135,000	3.54
Less: Net accretion of HCB acquired loans		(852	)	(0.02	)		—	—
Less: Net accretion of HCB acquired securities		(80	)	—			—	—
Excluding HCB acquisition-related purchase accounting accretion	$	150,531		3.71	%	$	135,000	3.54	%

(1)	Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

Pre-Tax, Pre-Provision Net Revenue (PPNR):

	Three months ended										Nine months ended
	9/30/2026		6/30/2026		3/31/2026		12/31/2025		9/30/2025		9/30/2026		9/30/2025
			(In thousands)
Income before income tax	$	21,499	$	22,710	$	20,230	$	20,311	$	21,176	$	64,439	$	60,980
Add back provision for credit losses		4,807		2,717		362		1,923		1,991		7,886		4,212
PPNR	$	26,306	$	25,427	$	20,592	$	22,234	$	23,167	$	72,325	$	65,192

Net Income and Diluted Earnings per Share Excluding After-Tax Merger Related Expenses

	Three months ended
	9/30/2026				6/30/2026				3/31/2026				12/31/2025				9/30/2025
	Net Income		Diluted EPS		Net Income		Diluted EPS		Net Income		Diluted EPS		Net Income		Diluted EPS		Net Income		Diluted EPS
	(In thousands, except per share amounts)
As reported (GAAP)	$	17,850	$	0.80	$	18,805	$	0.90	$	16,875	$	0.81	$	18,572	$	0.89	$	17,502	$	0.84
Add: after-tax merger related expenses		2,799		0.12		368		0.02		299		0.02		—		—		—		—
Adjusted	$	20,649	$	0.92	$	19,173	$	0.92	$	17,174	$	0.83	$	18,572	$	0.89	$	17,502	$	0.84

	Nine months ended
	9/30/2026				9/30/2025
	Net Income		Diluted EPS		Net Income		Diluted EPS
	(In thousands, except per share amounts)
As reported (GAAP)	$	53,530	$	2.51	$	49,969	$	2.38
Add: after-tax merger related expenses		3,466		0.16		—		—
Adjusted	$	56,996	$	2.67	$	49,969	$	2.38

Tangible Common Equity Ratio

	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
	(Dollars in thousands)
Common shareholders' equity	$	577,296		$	528,413		$	510,553		$	502,951		$	490,742
Less:
Goodwill		50,219			28,300			28,300			28,300			28,300
Other intangibles, net		17,045			771			886			1,001			1,123
Tangible common equity		510,032			499,342			481,367			473,650			461,319
Addition:
Accumulated other comprehensive loss for regulatory purposes		67,216			50,544			55,226			51,891			54,833
Tangible common equity excluding accumulated other comprehensive loss adjustments	$	577,248		$	549,886		$	536,593		$	525,541		$	516,152

Total assets	$	6,263,632		$	5,663,841		$	5,557,509		$	5,505,720		$	5,493,113
Less:
Goodwill		50,219			28,300			28,300			28,300			28,300
Other intangibles, net		17,045			771			886			1,001			1,123
Tangible assets		6,196,368			5,634,770			5,528,323			5,476,419			5,463,690
Addition:
Net unrealized losses on available for sale securities and derivatives, net of tax		67,216			50,544			55,226			51,891			54,833
Tangible assets excluding accumulated other comprehensive loss adjustments	$	6,263,584		$	5,685,314		$	5,583,549		$	5,528,310		$	5,518,523

Common equity ratio		9.22	%		9.33	%		9.19	%		9.14	%		8.93	%
Tangible common equity ratio		8.23	%		8.86	%		8.71	%		8.65	%		8.44	%
Tangible common equity ratio excluding accumulated other comprehensive loss		9.22	%		9.67	%		9.61	%		9.51	%		9.35	%

Tangible Common Equity per Share of Common Stock:

Common shareholders' equity	$	577,296		$	528,413		$	510,553		$	502,951		$	490,742
Tangible common equity	$	510,032		$	499,342		$	481,367		$	473,650		$	461,319
Shares of common stock outstanding (in thousands)		22,081			20,603			20,586			20,549			20,692

Common shareholders' equity per share of common stock	$	26.14		$	25.65		$	24.80		$	24.48		$	23.72
Tangible common equity per share of common stock	$	23.10		$	24.24		$	23.38		$	23.05		$	22.29

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.