Independent Bank (IBCP) investor relations material

Executive summary

• Q3 net income was $17.9 million, or $0.80 per diluted share; adjusted net income excluding after-tax merger costs was $20.6 million, or $0.92 per share.

• Organic loan and deposit growth, margin expansion, and Highpoint’s first full quarter contributed to results; merger costs and higher credit provision weighed on reported earnings.

Financial highlights

• Net interest income was $55.3 million, up $7.4 million QoQ (15.4%) and $9.9 million YoY (21.8%); YoY growth excluding Highpoint was 8.7%.

• Pre-tax, pre-provision net revenue was $26.3 million, up 13.5% YoY; non-interest income was $15.8 million and non-interest expense was $44.8 million, including $3.5 million of merger costs.

• Provision for credit losses was $4.8 million, or 0.39% annualized; net charge-offs were $0.2 million.

• Total assets were $6.26 billion, loans were $4.90 billion, and deposits were $5.52 billion at September 30, 2026.

Outlook and guidance

• FY26 loan growth outlook was 4.5%–5.5%, assuming a stable Michigan economy; forecast mix was commercial +11%–12%, mortgage 0%–1%, and installment down 5.0%–5.5%.

• FY26 NII growth outlook was 7%–8%, with NIM expected to rise 18–23 bps vs. FY25; management expected further quarterly margin expansion, with the prior 2–4 bps range potentially toward its upper end absent a macro shock.

• Commercial lending was expected to grow at a low double-digit rate into 2027; management cited market disruption and a strong pipeline, which eased after late-Q3 production.

• FY26 provision guidance was 0.20%–0.25% of average portfolio loans; approximately $3 million of merger and conversion costs were expected in Q4, with most Highpoint savings in the 2027 expense run rate after the November 9 conversion.