Document

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets


	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
	(Dollars in thousands)
Non-accrual loans	$	22,598		$	10,453		$	9,026		$	7,792		$	7,250
Loans 90 days or more past due and still accruing interest	—			—			—			—			—
Subtotal	22,598			10,453			9,026			7,792			7,250
Less: Government guaranteed loans	2,243			2,249			1,940			1,790			2,102
Total non-performing loans	20,355			8,204			7,086			6,002			5,148
Other real estate and repossessed assets	589			426			413			938			781
Total non-performing assets	$	20,944		$	8,630		$	7,499		$	6,940		$	5,929

As a percent of Portfolio Loans
Non-performing loans	0.48		%	0.20		%	0.17		%	0.15		%	0.13		%
Allowance for credit losses	1.49			1.47			1.47			1.47			1.46
Non-performing assets to total assets	0.38			0.16			0.14			0.13			0.11
Allowance for credit losses as a percent of non-performing loans	306.85			745.45			847.23			989.32			1,115.85

Allowance for credit losses


	Nine months ended September 30,
	2025							2024
	Loans			Securities		Unfunded Commitments		Loans			Securities		Unfunded Commitments
	(Dollars in thousands)
Balance at beginning of period	$	59,379		$	132	$	5,131	$	54,658		$	157	$	5,504
Additions (deductions)
Provision for credit losses	4,252			(40)		—		3,400			(1,149)		—
Recoveries credited to allowance	1,604			—		—		2,106			1,125		—
Assets charged against the allowance	(2,776)			—		—		(2,720)			—		—
Recoveries included in non-interest expense	—			—		(190)		—			—		(676)
Balance at end of period	$	62,459		$	92	$	4,941	$	57,444		$	133	$	4,828

Net loans charged against the allowance to average Portfolio Loans	0.04		%					0.02		%


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Capitalization


	September 30, 2025		December 31, 2024
	(In thousands)
Subordinated debt	$	—	$	39,586
Subordinated debentures	39,847		39,796
Amount not qualifying as regulatory capital	(1,224)		(810)
Amount qualifying as regulatory capital	38,623		78,572
Shareholders’ equity
Common stock	311,770		318,777
Retained earnings	239,602		205,853
Accumulated other comprehensive loss	(60,630)		(69,944)
Total shareholders’ equity	490,742		454,686
Total capitalization	$	529,365	$	533,258

Non-Interest Income


	Three months ended						Nine months ended
	September 30, 2025		June 30, 2025		September 30, 2024		September 30,
							2025		2024
	(In thousands)
Interchange income	$	4,157	$	3,390	$	4,146	$	10,674	$	10,698
Service charges on deposit accounts	3,131		2,981		3,085		8,926		8,894
Net gains (losses) on assets
Mortgage loans	1,474		1,631		2,177		5,408		4,874
Equity securities at fair value	—		—		(8)		—		2,685
Securities	(36)		11		(145)		(355)		(414)
Mortgage loan servicing, net	74		490		(3,130)		(72)		1,686
Investment and insurance commissions	940		810		882		2,504		2,524
Bank owned life insurance	288		296		197		881		566
Other	1,909		1,716		2,304		5,720		5,728
Total non-interest income	$	11,937	$	11,325	$	9,508	$	33,686	$	37,241

Capitalized Mortgage Loan Servicing Rights


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
	(In thousands)
Balance at beginning of period	$	32,053	$	44,406	$	46,796	$	42,243
Originated servicing rights capitalized	948		1,176		2,766		2,956
Change in fair value	(1,479)		(5,378)		(4,984)		(4,995)
Sale of originated servicing rights (1)	61		—		(12,823)		—
Loss on sale of originated servicing rights (1)	(61)		—		(233)		—
Balance at end of period	$	31,522	$	40,204	$	31,522	$	40,204

(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.


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Mortgage Loan Activity


	Three months ended									Nine months ended
	September 30, 2025			June 30, 2025			September 30, 2024			September 30,
										2025			2024
	(Dollars in thousands)
Mortgage loans originated	$	145,561		$	147,844		$	147,516		$	401,184		$	384,112
Mortgage loans sold	101,615			95,360			117,037			279,593			289,395
Net gains on mortgage loans	1,474			1,631			2,177			5,408			4,874
Net gains as a percent of mortgage loans sold ("Loan Sales Margin")	1.45		%	1.71		%	1.86		%	1.93		%	1.68		%
Fair value adjustments included in the Loan Sales Margin	0.03		%	0.12		%	0.46		%	0.32		%	0.30		%

Non-Interest Expense


	Three months ended						Nine months ended
	September 30, 2025		June 30, 2025		September 30, 2024		September 30,
							2025		2024
	(In thousands)
Compensation	$	13,916	$	13,610	$	13,264	$	40,723	$	39,931
Performance-based compensation	2,900		3,638		3,426		9,979		10,787
Payroll taxes and employee benefits	4,309		3,875		3,358		11,929		11,351
Compensation and employee benefits	21,125		21,123		20,048		62,631		62,069
Data processing	3,784		3,847		3,379		11,360		9,891
Occupancy, net	2,127		2,046		1,893		6,396		5,853
Interchange expense	1,180		1,177		1,149		3,476		3,373
Furniture, fixtures and equipment	892		793		932		2,570		2,834
Advertising	526		833		581		2,220		1,860
Loan and collection	618		744		657		2,148		1,868
FDIC deposit insurance	615		637		664		1,963		2,141
Legal and professional	682		500		687		1,661		1,717
Communications	465		470		519		1,526		1,633
Taxes, licenses and fees	335		290		347		951		891
Director fees	265		276		235		773		709
Amortization of intangible assets	121		122		129		365		387
Provision (recovery) for loss reimbursement on sold loans	(5)		(6)		24		(22)		26
Net (gains) losses on other real estate and repossessed assets	39		(50)		14		(77)		(170)

Other	1,362		960		1,325		4,214		3,027
Total non-interest expense	$	34,131	$	33,762	$	32,583	$	102,155	$	98,109


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Average Balances and Tax Equivalent Rates


	Three Months Ended September 30,
	2025						2024
	Average Balance		Interest		Rate (2)		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	4,193,925	$	61,250	5.81	%	$	3,901,370	$	58,322	5.96	%
Tax-exempt loans (1)	7,632		95		4.95		8,584		111		5.14
Taxable securities	573,333		3,660		2.55		665,974		4,502		2.70
Tax-exempt securities (1)	253,029		3,190		5.04		267,776		3,539		5.29
Interest bearing cash	113,660		1,261		4.40		126,039		1,717		5.42
Other investments	18,102		277		6.12		16,099		301		7.48
Interest Earning Assets	5,159,681		69,733		5.38		4,985,842		68,492		5.48
Cash and due from banks	58,099						57,211
Other assets, net	234,143						232,570
Total Assets	$	5,451,923					$	5,275,623

Liabilities
Savings and interest-bearing checking	2,850,176		13,282		1.85		2,763,558		15,621		2.25
Time deposits	930,358		8,690		3.71		804,944		8,841		4.37
Other borrowings	81,490		1,957		9.57		121,182		2,018		6.64
Interest Bearing Liabilities	3,862,024		23,929		2.46	%	3,689,684		26,480		2.86
Non-interest bearing deposits	1,005,875						1,047,617
Other liabilities	107,602						100,245
Shareholders’ equity	476,422						438,077

Total liabilities and shareholders’ equity	$	5,451,923					$	5,275,623

Net Interest Income			$	45,804					$	42,012

Net Interest Income as a Percent of Average Interest Earning Assets					3.54	%					3.37	%



(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


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Average Balances and Tax Equivalent Rates


	Nine Months Ended September 30,
	2025						2024
	Average Balance		Interest		Rate		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	4,123,797	$	178,407	5.78	%	$	3,848,092	$	169,974	5.90	%
Tax-exempt loans (1)	7,141		280		5.25		8,660		335		5.17
Taxable securities	594,769		11,491		2.58		691,327		14,466		2.79
Tax-exempt securities (1)	257,051		9,590		4.97		267,689		10,638		5.30
Interest bearing cash	92,263		3,058		4.43		97,941		3,994		5.45
Other investments	16,731		825		6.57		16,452		904		7.33
Interest Earning Assets	5,091,752		203,651		5.34		4,930,161		200,311		5.42
Cash and due from banks	56,073						54,481
Other assets, net	237,413						235,026
Total Assets	$	5,385,238					$	5,219,668

Liabilities
Savings and interest-bearing checking	2,827,773		38,731		1.83		2,690,359		43,178		2.14
Time deposits	887,385		24,658		3.72		825,984		26,970		4.37
Other borrowings	93,520		5,262		7.51		126,861		6,253		6.58
Interest Bearing Liabilities	3,808,678		68,651		2.41	%	3,643,204		76,401		2.80
Non-interest bearing deposits	1,001,228						1,053,719
Other liabilities	108,799						104,057
Shareholders’ equity	466,533						418,688

Total liabilities and shareholders’ equity	$	5,385,238					$	5,219,668

Net Interest Income			$	135,000					$	123,910

Net Interest Income as a Percent of Average Interest Earning Assets					3.54	%					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%.


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Commercial Loan Portfolio Analysis as of September 30, 2025


	Total Commercial Loans
			Watch Credits						Percent of Loan Category in Watch Credit
Loan Category	All Loans		Performing		Non-accrual		Total
	(Dollars in thousands)
Land	$	11,845	$	16	$	—	$	16	0.1	%
Land Development	19,877		—		—		—		—
Construction	149,259		—		13,825		13,825		9.3
Income Producing	738,924		39,522		—		39,522		5.3
Owner Occupied	642,277		8,299		—		8,299		1.3
Total Commercial Real Estate Loans	$	1,562,182	$	47,837	$	13,825	$	61,662	3.9

Other Commercial Loans	$	562,871	$	21,100	—		$	21,100	3.7
Total non-performing commercial loans					$	13825

Commercial Loan Portfolio Analysis as of December 31, 2024


	Total Commercial Loans
			Watch Credits						Percent of Loan Category in Watch Credit
Loan Category	All Loans		Performing		Non-accrual		Total
	(Dollars in thousands)
Land	$	8,734	$	—	$	—	$	—	0.0	%
Land Development	24,637		—		—		—		—
Construction	201,474		16,589		—		16,589		8.2
Income Producing	624,499		22,286		—		22,286		3.6
Owner Occupied	544,829		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


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