Document

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets


	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
	(Dollars in thousands)
Non-accrual loans	$	33,074		$	22,598		$	10,453		$	9,026		$	7,792
Loans 90 days or more past due and still accruing interest	—			—			—			—			—
Subtotal	33,074			22,598			10,453			9,026			7,792
Less: Government guaranteed loans	9,947			2,243			2,249			1,940			1,790
Total non-performing loans	23,127			20,355			8,204			7,086			6,002
Other real estate and repossessed assets	896			589			426			413			938
Total non-performing assets	$	24,023		$	20,944		$	8,630		$	7,499		$	6,940

As a percent of Portfolio Loans
Non-performing loans	0.54		%	0.48		%	0.20		%	0.17		%	0.15		%
Allowance for credit losses	1.48			1.49			1.47			1.47			1.47
Non-performing assets to total assets	0.44			0.38			0.16			0.14			0.13
Allowance for credit losses as a percent of non-performing loans	274.33			306.85			745.45			847.23			989.32

Allowance for credit losses


	Twelve months ended December 31,
	2025							2024
	Loans			Securities		Unfunded Commitments(1)		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	5,676			(40)		499		5,618			(1,150)		—
Recoveries credited to allowance	2,262					—		2,711			1,125		—
Charges against the allowance	(3,872)			—		—		(3,608)			—		—
Costs included in non-interest expense	—			—		(190)		—			—		(373)
Balance at end of period	$	63,445		$	92	$	5,440	$	59,379		$	132	$	5,131

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


(1)			Beginning in the fourth quarter of 2025, we classified the provision for unfunded lending commitments in the provision for credit losses in the Consolidated Statements of Operations.


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Capitalization


	December 31,
	2025		2024
	(In thousands)
Subordinated debt	$	—	$	39,586
Subordinated debentures	39,864		39,796
Amount not qualifying as regulatory capital	(1,224)		(810)
Amount qualifying as regulatory capital	38,640		78,572
Shareholders’ equity
Common stock	307,845		318,777
Retained earnings	252,794		205,853
Accumulated other comprehensive income	(57,688)		(69,944)
Total shareholders’ equity	502,951		454,686
Total capitalization	$	541,591	$	533,258

Non-Interest Income


	Three months ended						Twelve months ended
	December 31, 2025		September 30, 2025		December 31, 2024		December 31,
							2025		2024
	(In thousands)
Interchange income	$	3,186	$	4,157	$	3,294	$	13,860	$	13,992
Service charges on deposit accounts	3,096		3,131		2,976		12,022		11,870
Net gains (losses) on assets
Mortgage loans	1,372		1,474		1,705		6,780		6,579
Equity securities at fair value	—		—		—		—		2,685
Securities	(15)		(36)		(14)		(370)		(428)
Mortgage loan servicing, net	899		74		7,761		827		9,447
Investment and insurance commissions	1,006		940		744		3,510		3,268
Bank owned life insurance	306		288		268		1,187		834
Other	2,108		1,909		2,387		7,828		8,115
Total non-interest income	$	11,958	$	11,937	$	19,121	$	45,644	$	56,362

Capitalized Mortgage Loan Servicing Rights


	Three months ended December 31,				Twelve months ended December 31,
	2025		2024		2025		2024
	(In thousands)
Balance at beginning of period	$	31,522	$	40,204	$	46,796	$	42,243
Originated servicing rights capitalized	728		1,064		3,494		4,020
Change in fair value	(757)		5,528		(5,741)		533
Sale of originated servicing rights (1)	—		—		(12,823)		—
Loss on sale of originated servicing rights (1)	—		—		(233)		—
Balance at end of period	$	31,493	$	46,796	$	31,493	$	46,796


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Mortgage Loan Activity


	Three months ended									Twelve months ended
	December 31, 2025			September 30, 2025			December 31, 2024			December 31,
										2025			2024
	(Dollars in thousands)
Mortgage loans originated	$	134,258		$	145,561		$	134,144		$	535,442		$	518,256
Mortgage loans sold	86,150			101,615			106,222			365,743			395,617
Net gains on mortgage loans	1,372			1,474			1,705			6,780			6,579
Net gains as a percent of mortgage loans sold ("Loan Sales Margin")	1.59		%	1.45		%	1.61		%	1.85		%	1.66		%
Fair value adjustments included in the Loan Sales Margin	0.05		%	0.03		%	(0.32)		%	0.25		%	0.13		%

Non-Interest Expense


	Three months ended						Twelve months ended
	December 31, 2025		September 30, 2025		December 31, 2024		December 31,
							2025		2024
	(In thousands)
Compensation	$	13,884	$	13,916	$	13,458	$	54,607	$	53,389
Performance-based compensation	4,820		2,900		5,351		14,799		16,138
Payroll taxes and employee benefits	3,859		4,309		4,077		15,788		15,428
Compensation and employee benefits	22,563		21,125		22,886		85,194		84,955
Data processing	3,428		3,784		3,688		14,788		13,579
Occupancy, net	2,171		2,127		1,953		8,567		7,806
Interchange expense	1,165		1,180		1,131		4,641		4,504
Furniture, fixtures and equipment	897		892		928		3,467		3,762
Advertising	991		526		1,198		3,211		3,058
FDIC deposit insurance	861		615		729		2,824		2,870
Loan and collection	589		618		606		2,737		2,474
Legal and professional	787		682		849		2,448		2,566
Communications	471		465		462		1,997		2,095
Taxes, licenses and fees	315		335		311		1,266		1,202
Director Fees	255		265		240		1,028		949
Amortization of intangible assets	122		121		129		487		516
Provision for loss reimbursement on sold loans	(13)		(5)		2		(35)		28
Net losses (gains) on other real estate and repossessed assets	31		39		—		(46)		(170)

Other	1,445		1,362		1,875		5,659		4,902
Total non-interest expense	$	36,078	$	34,131	$	36,987	$	138,233	$	135,096


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Average Balances and Tax Equivalent Rates


	Three Months Ended December 31,
	2025						2024
	Average Balance		Interest		Rate (2)		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	4,240,936	$	60,117	5.64	%	$	3,986,254	$	58,255	5.83	%
Tax-exempt loans (1)	8,453		111		5.21		8,407		116		5.49
Taxable securities	553,154		3,513		2.54		644,931		4,417		2.74
Tax-exempt securities (1)	262,115		3,056		4.66		267,142		3,269		4.89
Interest bearing cash	79,621		780		3.89		84,733		1,019		4.78
Other investments	18,102		294		6.50		16,099		291		7.23
Interest Earning Assets	5,162,381		67,871		5.24		5,007,566		67,367		5.37
Cash and due from banks	55,226						57,775
Other assets, net	231,911						235,027
Total Assets	$	5,449,518					$	5,300,368

Liabilities
Savings and interest-bearing checking	2,932,767		12,743		1.72		2,835,507		14,393		2.02
Time deposits	847,824		7,366		3.45		789,241		8,153		4.11
Other borrowings	65,776		962		5.80		92,735		1,581		6.80
Interest Bearing Liabilities	3,846,367		21,071		2.17	%	3,717,483		24,127		2.58
Non-interest bearing deposits	993,588						1,030,343
Other liabilities	110,118						102,328
Shareholders’ equity	$	499,445					$	450,214

Total liabilities and shareholders’ equity	$	5,449,518					$	5,300,368

Net Interest Income			$	46,800					$	43,240

Net Interest Income as a Percent of Average Interest Earning Assets					3.62	%					3.45	%



(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


	Twelve Months Ended December 31,
	2025						2024
	Average Balance		Interest		Rate		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	4,153,322	$	238,524	5.74	%	$	3,882,822	$	228,229	5.88	%
Tax-exempt loans (1)	7,472		391		5.23		8,597		451		5.25
Taxable securities	584,279		15,005		2.57		652,772		18,883		2.89
Tax-exempt securities (1)	258,328		12,646		4.90		294,443		13,907		4.72
Interest bearing cash	89,077		3,837		4.31		94,621		5,013		5.30
Other investments	17,077		1,119		6.55		16,363		1,195		7.30
Interest Earning Assets	5,109,555		271,522		5.32		4,949,618		267,678		5.41
Cash and due from banks	55,859						55,309
Other assets, net	236,027						235,025
Total Assets	$	5,401,441					$	5,239,952

Liabilities
Savings and interest-bearing checking	2,854,237		51,474		1.80		2,727,778		57,571		2.11
Time deposits	877,414		32,024		3.65		815,815		35,123		4.31
Other borrowings	86,527		6,224		7.19		118,282		7,834		6.62
Interest Bearing Liabilities	3,818,178		89,722		1.76	%	3,661,875		100,528		2.75
Non-interest bearing deposits	999,302						1,047,843
Other liabilities	109,133						103,622
Shareholders’ equity	$	474,828					$	426,612

Total liabilities and shareholders’ equity	$	5,401,441					$	5,239,952

Net Interest Income			$	181,800					$	167,150

Net Interest Income as a Percent of Average Interest Earning Assets					3.56	%					3.38	%



(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 December 31, 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	$	10,293	$	15	$	—	$	15	0.1	%
Land Development	22,808		—		—		—		—
Construction	158,235		—		14,269		14,269		9.0
Income Producing	784,506		30,309		9,262		39,571		5.0
Owner Occupied	648,338		11,498		—		11,498		1.8
Total Commercial Real Estate Loans	$	1,624,180	$	41,822	$	23,531	$	65,353	4.0

Other Commercial Loans	$	589,377	$	27,929	—		$	27,929	4.7
Total non-performing commercial loans					$	23531

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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