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INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data

Non-performing assets

December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 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— — — — — 
Subtotal33,074 22,598 10,453 9,026 7,792 
Less:  Government guaranteed loans9,947 2,243 2,249 1,940 1,790 
Total non-performing loans23,127 20,355 8,204 7,086 6,002 
Other real estate and repossessed assets896 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 loans0.54 %0.48 %0.20 %0.17 %0.15 %
Allowance for credit losses1.48 1.49 1.47 1.47 1.47 
Non-performing assets to total assets0.44 0.38 0.16 0.14 0.13 
Allowance for credit losses as a percent of non-performing loans274.33 306.85 745.45 847.23 989.32 





Allowance for credit losses

Twelve months ended December 31,
20252024
LoansSecuritiesUnfunded
Commitments(1)		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 losses5,676(40)4995,618(1,150)—
Recoveries credited to allowance2,262—2,7111,125—
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 Loans0.04 %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,
20252024
(In thousands)
Subordinated debt$— $39,586 
Subordinated debentures39,864 39,796 
Amount not qualifying as regulatory capital(1,224)(810)
Amount qualifying as regulatory capital38,640 78,572 
Shareholders’ equity
Common stock307,845 318,777 
Retained earnings252,794 205,853 
Accumulated other comprehensive income(57,688)(69,944)
Total shareholders’ equity502,951 454,686 
Total capitalization$541,591 $533,258 

Non-Interest Income

Three months endedTwelve months ended
December 31, 2025September 30, 2025December 31, 2024December 31,
20252024
(In thousands)
Interchange income$3,186 $4,157 $3,294 $13,860 $13,992 
Service charges on deposit accounts3,096 3,131 2,976 12,022 11,870 
Net gains (losses) on assets
Mortgage loans1,372 1,474 1,705 6,780 6,579 
Equity securities at fair value— — — — 2,685 
Securities(15)(36)(14)(370)(428)
Mortgage loan servicing, net899 74 7,761 827 9,447 
Investment and insurance commissions1,006 940 744 3,510 3,268 
Bank owned life insurance306 288 268 1,187 834 
Other2,108 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,
2025202420252024
(In thousands)
Balance at beginning of period$31,522 $40,204 $46,796 $42,243 
Originated servicing rights capitalized728 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 endedTwelve months ended
December 31, 2025September 30, 2025December 31, 2024December 31,
20252024
(Dollars in thousands)
Mortgage loans originated$134,258$145,561$134,144$535,442$518,256
Mortgage loans sold86,150101,615106,222365,743395,617
Net gains on mortgage loans1,3721,4741,7056,7806,579
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 Margin0.05 %0.03 %(0.32)%0.25 %0.13 %

Non-Interest Expense

Three months endedTwelve months ended
December 31, 2025September 30, 2025December 31, 2024December 31,
20252024
(In thousands)
Compensation$13,884 $13,916 $13,458 $54,607 $53,389 
Performance-based compensation4,820 2,900 5,351 14,799 16,138 
Payroll taxes and employee benefits3,859 4,309 4,077 15,788 15,428 
Compensation and employee benefits22,563 21,125 22,886 85,194 84,955 
Data processing3,428 3,784 3,688 14,788 13,579 
Occupancy, net2,171 2,127 1,953 8,567 7,806 
Interchange expense1,165 1,180 1,131 4,641 4,504 
Furniture, fixtures and equipment897 892 928 3,467 3,762 
Advertising991 526 1,198 3,211 3,058 
FDIC deposit insurance861 615 729 2,824 2,870 
Loan and collection589 618 606 2,737 2,474 
Legal and professional787 682 849 2,448 2,566 
Communications471 465 462 1,997 2,095 
Taxes, licenses and fees315 335 311 1,266 1,202 
Director Fees255 265 240 1,028 949 
Amortization of intangible assets122 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 assets31 39 — (46)(170)
Other1,445 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,
20252024
Average
Balance		InterestRate (2)Average
Balance		InterestRate (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 securities553,154 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 cash79,621 780 3.89 84,733 1,019 4.78 
Other investments18,102 294 6.50 16,099 291 7.23 
Interest Earning Assets5,162,381 67,871 5.24 5,007,566 67,367 5.37 
Cash and due from banks55,226 57,775 
Other assets, net231,911 235,027 
Total Assets$5,449,518 $5,300,368 
Liabilities
Savings and interest-bearing checking2,932,767 12,743 1.72 2,835,507 14,393 2.02 
Time deposits847,824 7,366 3.45 789,241 8,153 4.11 
Other borrowings65,776 962 5.80 92,735 1,581 6.80 
Interest Bearing Liabilities3,846,367 21,071 2.17 %3,717,483 24,127 2.58 
Non-interest bearing deposits993,588 1,030,343 
Other liabilities110,118 102,328 
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 Assets3.62 %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,
20252024
Average
Balance		InterestRateAverage
Balance		InterestRate (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 securities584,279 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 cash89,077 3,837 4.31 94,621 5,013 5.30 
Other investments17,077 1,119 6.55 16,363 1,195 7.30 
Interest Earning Assets5,109,555 271,522 5.32 4,949,618 267,678 5.41 
Cash and due from banks55,859 55,309 
Other assets, net236,027 235,025 
Total Assets$5,401,441 $5,239,952 
Liabilities
Savings and interest-bearing checking2,854,237 51,474 1.80 2,727,778 57,571 2.11 
Time deposits877,414 32,024 3.65 815,815 35,123 4.31 
Other borrowings86,527 6,224 7.19 118,282 7,834 6.62 
Interest Bearing Liabilities3,818,178 89,722 1.76 %3,661,875 100,528 2.75 
Non-interest bearing deposits999,302 1,047,843 
Other liabilities109,133 103,622 
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 Assets3.56 %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 CreditsPercent of Loan Category in Watch Credit
Loan CategoryAll LoansPerformingNon-accrualTotal
(Dollars in thousands)
Land$10,293 $15 $— $15 0.1 %
Land Development22,808 — — — — 
Construction158,235 — 14,269 14,269 9.0 
Income Producing784,506 30,309 9,262 39,571 5.0 
Owner Occupied648,338 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 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 
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