Independent Bank (IBCP) investor relations material

Executive summary

• Reported Q2 2026 net income of $18.8 million ($0.90 per diluted share), up from $16.9 million ($0.81 per share) year-over-year.

• Achieved broad-based business momentum with strong loan and deposit growth, improved asset yields, and continued capital generation.

• Completed acquisition of HCB Financial Corp. on July 1, 2026, strengthening presence in complementary markets, with integration targeted for November.

• Named Michigan's Best In-State Bank by Forbes for 2026, marking the fourth consecutive year.

Financial highlights

• Net interest income rose to $47.9 million, up 7.4% year-over-year and 2.2% sequentially.

• Net Interest Margin was 3.71%, up 6 basis points sequentially and 13 basis points year-over-year.

• Non-interest income was $15.3 million, up from $11.3 million year-over-year, driven by higher mortgage servicing gains and a $1.6 million gain on equity securities.

• Non-interest expense was $37.8 million, above guidance, due to litigation, incentive accruals, and merger-related costs.

• Return on average assets was 1.37%; return on average equity was 14.52%.

Outlook and guidance

• Full-year loan growth expected to remain above original 4.5%-5.5% forecast, with commercial loan growth in low double digits for 2026.

• Net Interest Income growth projected to continue, with margin expansion of 2-4 basis points per quarter anticipated.

• HCB cost savings (40% of half-year) expected to be fully realized in 2027 after system conversion in November 2026.

• Integration of Highpoint Community Bank expected to complete by November 9, 2026.

• Non-interest expense run rate expected to return to high end of $36-$37 million range, excluding one-time items.