Earnings release
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Independent Bank Corporation Reports 2026 Third Quarter Earnings of $0.80 Per Diluted Share October 27, 2026 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
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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.
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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.
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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)
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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
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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
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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
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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%
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(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
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(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
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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%
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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. Contact: William B. Kessel, President and CEO, 616.447.3933 Gavin A. Mohr, Chief Financial Officer, 616.447.3929