Independent Bank (IBCP) investor relations material

Executive summary

• Net income for Q1 2026 was $16.9 million ($0.81 per diluted share), up from $15.6 million ($0.74 per share) year-over-year, reflecting higher net interest income and prudent balance sheet management.

• Tangible common equity per share increased to $23.38, up $0.33 from December 31, 2025, and 12.0% year-over-year.

• Commercial loan growth was strong at $53.8 million (9.9% annualized), while total loans grew $31.8 million (3% annualized) and core deposits rose $80.4 million (6.9% annualized) from year-end.

• Announced definitive merger agreement with HCB Financial Corp., expected to close in Q3 2026, enhancing shareholder value.

• Asset quality remained robust with non-performing assets at 0.51% of total assets and allowance for credit losses at 1.48% of loans.

Financial highlights

• Net interest income was $46.9 million, up 7.3% year-over-year and 1.1% sequentially, with net interest margin at 3.65%.

• Non-interest income totaled $12.0 million, up from $10.4 million year-over-year, driven by mortgage banking revenues and higher service charges.

• Non-interest expense increased to $38.3 million, above forecast due to $1.5 million in litigation and $0.4 million in promotional/merger-related expenses.

• Return on average assets was 1.24% and return on average equity was 13.43%.

• Quarterly dividend of $0.28 per share paid on February 13, 2026, up from $0.26 per share in Q1 2025.

Outlook and guidance

• Full-year 2026 loan growth forecast is 4.5%-5.5%, driven by 11%-12% commercial loan growth; mortgage and installment loans expected to be flat or decline.

• Net interest income projected to grow 7%-8% for 2026, with NIM expected to rise 0.18%-0.23% over 2025.

• Non-interest expense guidance (excluding merger and nonrecurring items) remains $36-$37 million per quarter; non-interest income expected to rise 3%-4% year-over-year.

• Merger with HCB Financial Corp. anticipated to close in Q3 2026, with phased-in cost savings and integration risks noted.

• Provision for credit losses for 2026 expected at 0.20%-0.25% of average loans; Q1 provision was below forecast at 0.03% annualized.