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INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data

Non-performing assets

June 30, 2026March 31, 2026December 31, 2025September 30, 2025June 30, 2025
(Dollars in thousands)
Non-accrual loans$43,687 $37,775 $33,074 $22,598 $10,453 
Loans 90 days or more past due and still accruing interest— — — — — 
Subtotal43,687 37,775 33,074 22,598 10,453 
Less:  Government guaranteed loans10,890 10,202 9,947 2,243 2,249 
Total non-performing loans32,797 27,573 23,127 20,355 8,204 
Other real estate and repossessed assets710 767 896 589 426 
Total non-performing assets$33,507 $28,340 $24,023 $20,944 $8,630 
As a percent of Portfolio Loans
Non-performing loans0.74 %0.64 %0.54 %0.48 %0.20 %
Allowance for credit losses1.49 1.48 1.48 1.49 1.47 
Non-performing assets to total assets0.59 0.51 0.44 0.38 0.16 
Allowance for credit losses as a percent of non-performing loans200.24 231.09 274.33 306.85 745.45 





Allowance for credit losses

Six months ended June 30,
20262025
LoansSecurities HTMUnfunded
Commitments(1)		LoansSecurities HTMUnfunded
Commitments
(Dollars in thousands)
Balance at beginning of period$63,445$92$5,440$59,379$132$5,131
Additions (deductions)
Provision for credit losses2,861—2182,2201—
Recoveries credited to allowance1,136——1,131——
Assets charged against the allowance(1,769)——(1,573)——
Additions included in non-interest expense—————(193)
Balance at end of period$65,673$92$5,658$61,157$133$4,938
Net loans charged against the allowance to average Portfolio Loans0.03 %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

June 30, 2026December 31, 2025
(In thousands)
Subordinated debt$— $— 
Subordinated debentures39,898 39,864 
Amount not qualifying as regulatory capital(1,224)(1,224)
Amount qualifying as regulatory capital38,674 38,640 
Shareholders’ equity
Common stock307,820 307,845 
Retained earnings276,934 252,794 
Accumulated other comprehensive loss
(56,341)(57,688)
Total shareholders’ equity528,413 502,951 
Total capitalization$567,087 $541,591 

Non-Interest Income

Three months endedSix months ended
June 30, 2026March 31, 2026June 30, 2025June 30,
20262025
(In thousands)
Interchange income$3,576 $3,234 $3,390 $6,810 $6,517 
Service charges on deposit accounts3,100 2,935 2,981 6,035 5,795 
Net gains (losses) on assets
Mortgage loans1,651 1,308 1,631 2,959 3,934 
Equity securities at fair value1,600 — — 1,600 — 
Securities(90)(26)11 (116)(319)
Mortgage loan servicing, net2,460 1,646 490 4,106 (146)
Investment and insurance commissions864 809 810 1,673 1,564 
Bank owned life insurance356 322 296 678 593 
Other1,817 1,820 1,716 3,637 3,811 
Total non-interest income$15,334 $12,048 $11,325 $27,382 $21,749 

Capitalized Mortgage Loan Servicing Rights
Three months ended June 30,Six months ended June 30,
2026202520262025
(In thousands)
Balance at beginning of period$32,233 $32,171 $31,493 $46,796 
Originated servicing rights capitalized881 963 1,611 1,818 
Change in fair value835 (1,081)845 (3,505)
Sale of originated servicing rights (1)— 78 — (12,884)
Loss on sale of originated servicing rights (1)— (78)— (172)
Balance at end of period$33,949 $32,053 $33,949 $32,053 
(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 endedSix months ended
June 30, 2026March 31, 2026June 30, 2025June 30,
20262025
(Dollars in thousands)
Mortgage loans originated$145,421$130,574$147,844$275,995$255,623
Mortgage loans sold97,07384,06595,360181,742177,978
Net gains on mortgage loans1,6511,3081,6312,9593,934
Net gains as a percent of mortgage loans sold  ("Loan Sales Margin")1.70 %1.56 %1.71 %1.63 %2.21 %
Fair value adjustments included in the Loan Sales Margin0.40 %0.09 %0.12 %0.26 %0.48 %

Non-Interest Expense

Three months endedSix months ended
June 30, 2026March 31, 2026June 30, 2025June 30,
20262025
(In thousands)
Compensation$14,248 $14,123 $13,610 $28,371 $26,807 
Performance-based compensation4,008 3,648 3,638 7,656 7,079 
Payroll taxes and employee benefits4,304 4,058 3,875 8,362 7,620 
Compensation and employee benefits22,560 21,829 21,123 44,389 41,506 
Data processing4,152 3,952 3,847 8,104 7,576 
Occupancy, net2,073 2,413 2,046 4,486 4,269 
Interchange expense1,224 1,191 1,177 2,415 2,296 
Advertising1,180 1,210 833 2,390 1,694 
Litigation expense
350 1,500 — 1,850 — 
Furniture, fixtures and equipment927 894 793 1,821 1,678 
Loan and collection1,038 752 744 1,790 1,530 
FDIC deposit insurance738 799 637 1,537 1,348 
Legal and professional613 591 500 1,204 979 
Communications464 593 470 1,057 1,061 
Taxes, licenses and fees
376 360 290 736 616 
Merger related expense
369 300 — 669 — 
Director fees278 266 276 544 508 
Amortization of intangible assets115 115 122 230 244 
Net (gains) losses on other real estate and repossessed assets(5)15 (50)10 (116)
Recovery for loss reimbursement on sold loans(13)(13)(6)(26)(17)
Other1,370 1,544 960 2,914 2,852 
Total non-interest expense$37,809 $38,311 $33,762 $76,120 $68,024 

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Average Balances and Tax Equivalent Rates

Three Months Ended June 30,
20262025
Average
Balance		InterestRate (2)Average
Balance		InterestRate (2)
(Dollars in thousands)
Assets
Taxable loans$4,361,790 $60,566 5.56 %$4,122,331 $59,472 5.78 %
Tax-exempt loans (1)6,787 98 5.78 6,440 80 4.98 
Taxable securities519,245 3,300 2.54 591,720 3,796 2.57 
Tax-exempt securities (1)258,177 2,944 4.56 254,332 3,200 5.03 
Interest bearing cash57,067 531 3.73 45,468 505 4.45 
Other investments16,575 295 7.13 15,799 269 6.81 
Interest Earning Assets5,219,641 67,734 5.20 5,036,090 67,322 5.35 
Cash and due from banks52,543 52,648 
Other assets, net249,564 236,221 
Total Assets$5,521,748 $5,324,959 
Liabilities
Savings and interest-bearing checking3,016,119 12,007 1.60 2,796,701 12,609 1.81 
Time deposits797,607 6,315 3.18 859,773 7,853 3.66 
Other borrowings82,722 1,070 5.19 107,003 1,801 6.74 
Interest Bearing Liabilities3,896,448 19,392 2.00 %3,763,477 22,263 2.37 
Non-interest bearing deposits998,860 990,165 
Other liabilities107,001 109,597 
Shareholders’ equity519,439 461,720 
Total liabilities and shareholders’ equity$5,521,748 $5,324,959 
Net Interest Income$48,342 $45,059 
Net Interest Income as a Percent of Average Interest Earning Assets3.71 %3.58 %

(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
Six Months Ended June 30,
20262025
Average
Balance		InterestRate (2)Average
Balance		InterestRate (2)
(Dollars in thousands)
Assets
Taxable loans$4,334,524 $119,727 5.55 %$4,088,152 $117,157 5.76 %
Tax-exempt loans (1)7,597 209 5.56 6,891 185 5.41 
Taxable securities527,062 6,654 2.52 605,664 7,832 2.59 
Tax-exempt securities (1)259,723 5,889 4.53 259,096 6,400 4.94 
Interest bearing cash68,289 1,279 3.78 81,388 1,796 4.45 
Other investments17,334 590 6.81 16,035 548 6.84 
Interest Earning Assets5,214,529 134,348 5.18 5,057,226 133,918 5.32 
Cash and due from banks54,495 55,043 
Other assets, net252,970 239,075 
Total Assets$5,521,994 $5,351,344 
Liabilities
Savings and interest-bearing checking3,012,225 23,922 1.60 2,816,386 25,449 1.82 
Time deposits807,350 12,797 3.20 865,543 15,968 3.72 
Other borrowings75,010 1,987 5.34 99,635 3,305 6.69 
Interest Bearing Liabilities3,894,585 38,706 2.00 %3,781,564 44,722 2.38 
Non-interest bearing deposits1,002,708 998,866 
Other liabilities110,193 109,408 
Shareholders’ equity514,508 461,506 
Total liabilities and shareholders’ equity$5,521,994 $5,351,344 
Net Interest Income$95,642 $89,196 
Net Interest Income as a Percent of Average Interest Earning Assets3.68 %3.54 %

(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 June 30, 2026

Total Commercial Loans
Watch CreditsPercent of Loan Category in Watch Credit
Loan CategoryAll LoansPerformingNon-accrualTotal
(Dollars in thousands)
Land$11,330 $— $— $— — %
Land Development23,763 — — — — 
Construction134,923 — 14,344 14,344 10.6 
Income Producing842,385 19,064 13,831 32,895 3.9 
Owner Occupied698,087 12,332 122 12,454 1.8 
Total Commercial Real Estate Loans$1,710,488 $31,396 $28,297 $59,693 3.5 
Other Commercial Loans$649,500 $37,684 3,977 $41,661 6.4 
Total non-performing commercial loans$32,274 

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 
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