Please wait

.2
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data

Non-performing assets

June 30, 2025March 31, 2025December 31, 2024September 30, 2024June 30, 2024
(Dollars in thousands)
Non-accrual loans$10,453 $9,026 $7,792 $7,250 $5,974 
Loans 90 days or more past due and still accruing interest— — — — — 
Subtotal10,453 9,026 7,792 7,250 5,974 
Less:  Government guaranteed loans2,249 1,940 1,790 2,102 1,489 
Total non-performing loans8,204 7,086 6,002 5,148 4,485 
Other real estate and repossessed assets426 413 938 781 945 
Total non-performing assets$8,630 $7,499 $6,940 $5,929 $5,430 
As a percent of Portfolio Loans
Non-performing loans0.20 %0.17 %0.15 %0.13 %0.12 %
Allowance for credit losses1.47 1.47 1.47 1.46 1.46 
Non-performing assets to total assets0.16 0.14 0.13 0.11 0.10 
Allowance for credit losses as a percent of non-performing loans745.45 847.23 989.32 1,115.85 1,253.98 





Allowance for credit losses

Six months ended June 30,
20252024
LoansSecuritiesUnfunded
Commitments		LoansSecuritiesUnfunded
Commitments
(Dollars in thousands)
Balance at beginning of period$59,379$132$5,131$54,658$157$5,504
Additions (deductions)
Provision for credit losses2,2201—1,890(1,127)—
Recoveries credited to allowance1,131——1,3951,125—
Assets charged against the allowance(1,573)——(1,702)——
Additions included in non-interest expense——(193)——(789)
Balance at end of period$61,157$133$4,938$56,241$155$4,715
Net loans charged against the allowance to average Portfolio Loans0.02 %0.02 %

1

Capitalization

June 30, 2025December 31, 2024
(In thousands)
Subordinated debt$39,624 $39,586 
Subordinated debentures39,830 39,796 
Amount not qualifying as regulatory capital(8,848)(810)
Amount qualifying as regulatory capital70,606 78,572 
Shareholders’ equity
Common stock311,653 318,777 
Retained earnings227,484 205,853 
Accumulated other comprehensive loss(69,887)(69,944)
Total shareholders’ equity469,250 454,686 
Total capitalization$539,856 $533,258 

Non-Interest Income

Three months endedSix months ended
June 30, 2025March 31, 2025June 30, 2024June 30,
20252024
(In thousands)
Interchange income$3,390 $3,127 $3,401 $6,517 $6,552 
Service charges on deposit accounts2,981 2,814 2,937 5,795 5,809 
Net gains (losses) on assets
Mortgage loans1,631 2,303 1,333 3,934 2,697 
Equity securities at fair value— — 2,693 — 2,693 
Securities11 (330)— (319)(269)
Mortgage loan servicing, net490 (636)2,091 (146)4,816 
Investment and insurance commissions810 754 838 1,564 1,642 
Bank owned life insurance296 297 188 593 369 
Other1,716 2,095 1,691 3,811 3,424 
Total non-interest income$11,325 $10,424 $15,172 $21,749 $27,733 

Capitalized Mortgage Loan Servicing Rights
Three months ended June 30,Six months ended June 30,
2025202420252024
(In thousands)
Balance at beginning of period$32,171 $43,577 $46,796 $42,243 
Originated servicing rights capitalized963 952 1,818 1,780 
Change in fair value(1,081)(123)(3,505)383 
Sale of originated servicing rights (1)78 — (12,884)— 
Loss on sale of originated servicing rights (1)(78)— (172)— 
Balance at end of period$32,053 $44,406 $32,053 $44,406 
(1)     On January 31, 2025 we sold $931.6 million of mortgage loan servicing rights (26.3% of total servicing portfolio) and transferred the servicing on March 3, 2025. This sale represented approximately $13.1 million (27.9%) of the total capitalized mortgage loan servicing right asset.
2

Mortgage Loan Activity

Three months endedSix months ended
June 30, 2025March 31, 2025June 30, 2024June 30,
20252024
(Dollars in thousands)
Mortgage loans originated$147,844$107,779$142,602$255,623$236,596
Mortgage loans sold95,36082,61891,540177,978172,358
Net gains on mortgage loans1,6312,3031,3333,9342,697
Net gains as a percent of mortgage loans sold  ("Loan Sales Margin")1.71 %2.79 %1.46 %2.21 %1.56 %
Fair value adjustments included in the Loan Sales Margin0.12 %0.88 %0.14 %0.48 %0.28 %

Non-Interest Expense

Three months endedSix months ended
June 30, 2025March 31, 2025June 30, 2024June 30,
20252024
(In thousands)
Compensation$13,610 $13,197 $13,390 $26,807 $26,667 
Performance-based compensation3,638 3,441 3,885 7,079 7,361 
Payroll taxes and employee benefits3,875 3,745 3,976 7,620 7,993 
Compensation and employee benefits21,123 20,383 21,251 41,506 42,021 
Data processing3,847 3,729 3,257 7,576 6,512 
Occupancy, net2,046 2,223 1,886 4,269 3,960 
Interchange expense1,177 1,119 1,127 2,296 2,224 
Advertising833 861 788 1,694 1,279 
Furniture, fixtures and equipment793 885 948 1,678 1,902 
Loan and collection744 786 699 1,530 1,211 
FDIC deposit insurance637 711 695 1,348 1,477 
Communications470 591 499 1,061 1,114 
Legal and professional500 479 544 979 1,030 
Taxes, licenses and fees290 326 283 616 544 
Director fees276 232 237 508 474 
Amortization of intangible assets122 122 129 244 258 
Provision for loss reimbursement on sold loans(6)(11)(1)(17)2 
Net (gains) losses on other real estate and repossessed assets(50)(66)(108)(116)(184)
Costs (recoveries) related to unfunded lending commitments(389)196 (137)(193)(789)
Other1,349 1,696 1,236 3,045 2,491 
Total non-interest expense$33,762 $34,262 $33,333 $68,024 $65,526 

3

Average Balances and Tax Equivalent Rates

Three Months Ended June 30,
20252024
Average
Balance		InterestRate (2)Average
Balance		InterestRate (2)
(Dollars in thousands)
Assets
Taxable loans$4,122,331 $59,472 5.78 %$3,840,343 $56,697 5.93 %
Tax-exempt loans (1)6,440 80 4.98 8,856 113 5.13 
Taxable securities591,720 3,796 2.57 633,400 4,713 2.98 
Tax-exempt securities (1)254,332 3,200 5.03 311,035 3,551 4.57 
Interest bearing cash45,468 505 4.45 83,293 1,134 5.48 
Other investments15,799 269 6.81 16,440 305 7.46 
Interest Earning Assets5,036,090 67,322 5.35 4,893,367 66,513 5.45 
Cash and due from banks52,648 50,652 
Other assets, net236,221 237,298 
Total Assets$5,324,959 $5,181,317 
Liabilities
Savings and interest-bearing checking2,796,701 12,609 1.81 2,674,731 14,190 2.13 
Time deposits859,773 7,853 3.66 807,033 8,686 4.33 
Other borrowings107,003 1,801 6.74 130,208 2,116 6.54 
Interest Bearing Liabilities3,763,477 22,263 2.37 %3,611,972 24,992 2.78 
Non-interest bearing deposits990,165 1,050,153 
Other liabilities109,597 104,643 
Shareholders’ equity461,720 414,549 
Total liabilities and shareholders’ equity$5,324,959 $5,181,317 
Net Interest Income$45,059 $41,521 
Net Interest Income as a Percent of Average Interest Earning Assets3.58 %3.40 %

(1)Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
(2)Annualized


4

Average Balances and Tax Equivalent Rates
Six Months Ended June 30,
20252024
Average
Balance		InterestRateAverage
Balance		InterestRate (2)
(Dollars in thousands)
Assets
Taxable loans$4,088,152 $117,157 5.76 %$3,821,164 $111,652 5.87 %
Tax-exempt loans (1)6,891 185 5.41 8,699 224 5.18 
Taxable securities605,664 7,832 2.59 656,766 9,964 3.03 
Tax-exempt securities (1)259,096 6,400 4.94 315,021 7,099 4.51 
Interest bearing cash81,388 1,796 4.45 83,738 2,277 5.47 
Other investments16,035 548 6.84 16,630 603 7.29 
Interest Earning Assets5,057,226 133,918 5.32 4,902,018 131,819 5.40 
Cash and due from banks55,043 53,101 
Other assets, net239,075 236,266 
Total Assets$5,351,344 $5,191,385 
Liabilities
Savings and interest-bearing checking2,816,386 25,449 1.82 2,654,125 27,557 2.09 
Time deposits865,543 15,968 3.72 835,852 18,129 4.36 
Other borrowings99,635 3,305 6.69 129,731 4,235 6.56 
Interest Bearing Liabilities3,781,564 44,722 2.38 %3,619,708 49,921 2.77 
Non-interest bearing deposits998,866 1,056,803 
Other liabilities109,408 105,987 
Shareholders’ equity461,506 408,887 
Total liabilities and shareholders’ equity$5,351,344 $5,191,385 
Net Interest Income$89,196 $81,898 
Net Interest Income as a Percent of Average Interest Earning Assets3.54 %3.35 %

(1)Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
5

Commercial Loan Portfolio Analysis as of June 30, 2025

Total Commercial Loans
Watch CreditsPercent of Loan Category in Watch Credit
Loan CategoryAll LoansPerformingNon-accrualTotal
(Dollars in thousands)
Land$12,537 $17 $— $17 0.1 %
Land Development22,088 — — — — 
Construction153,253 15,045 — 15,045 9.8 
Income Producing699,546 23,263 — 23,263 3.3 
Owner Occupied610,241 10,256 — 10,256 1.7 
Total Commercial Real Estate Loans$1,497,665 $48,581 $— $48,581 3.2 
Other Commercial Loans$570,416 $30,910 — $30,910 5.4 
Total non-performing commercial loans$— 

Commercial Loan Portfolio Analysis as of December 31, 2024

Total Commercial Loans
Watch CreditsPercent of Loan Category in Watch Credit
Loan CategoryAll LoansPerformingNon-accrualTotal
(Dollars in thousands)
Land$8,734 $— $— $— 0.0 %
Land Development24,637 — — — — 
Construction201,474 16,589 — 16,589 8.2 
Income Producing624,499 22,286 — 22,286 3.6 
Owner Occupied544,829 18,396 47 18,443 3.4 
Total Commercial Real Estate Loans$1,404,173 $57,271 $47 $57,318 4.1 
Other Commercial Loans$533,190 $27,334 7 $27,341 5.1 
Total non-performing commercial loans$54 
6