IBCP

MVB Financial (MVBF) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +279.2%. Revenues are expected to be $39.7 million, up 46.5% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 3.13% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For MVB Financial, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +4.65%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that MVB Financial will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that MVB Financial would post earnings of $0.33 per share when it actually produced earnings of $0.25, delivering a surprise of -24.24%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. MVB Financial appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Banks - Northeast industry, Independent Bank (IBCP), is soon expected to post earnings of $0.86 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +2.4%. This quarter's revenue is expected to be $68.1 million, up 18.9% from the year-ago quarter. The consensus EPS estimate for Independent Bank has been revised 0.8% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -24.20%. When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Independent Bank will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mvb Financial Corp. (MVBF) : Free Stock Analysis Report Independent Bank Corp. (IBCP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Independent Bank (IBCP) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 27, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This bank holding company is expected to post quarterly earnings of $0.86 per share in its upcoming report, which represents a year-over-year change of +2.4%. Revenues are expected to be $68.1 million, up 18.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Independent Bank, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -24.20%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Independent Bank will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Independent Bank would post earnings of $0.85 per share when it actually produced earnings of $0.90, delivering a surprise of +5.88%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Independent Bank doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Banks - Northeast industry, Midland States Bancorp (MSBI), is soon expected to post earnings of $0.9 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +275%. This quarter's revenue is expected to be $84.1 million, up 3.7% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Midland States Bancorp has been revised 2.8% down to the current level. Nevertheless, the company now has an Earnings ESP of +2.51%, reflecting a higher Most Accurate Estimate. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Midland States Bancorp will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Independent Bank Corp. (IBCP) : Free Stock Analysis Report Midland States Bancorp, Inc. (MSBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 23, 2026 at 11:00 a.m. ET President and Chief Executive Officer - William Bradford Kessel Executive Vice President and Chief Financial Officer - Gavin A. Mohr Executive Vice President and Head of Commercial Banking - Joel F. Rahn Operator: Good day, and thank you for standing by. Welcome to the Independent Bank Corporation Second Quarter 26 Earnings Call. At this time, participants are in a listen-only mode. After the speakers' presentation, there will be a Q&A session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message device when your hand is raised. To withdraw your question, please press *11 again. Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, President and CEO, Brad Kessel. Please go ahead. William Bradford Kessel: Good morning, and welcome to today's call. Thank you for joining us Independent Bank Corporation's conference call and webcast to discuss the company's results for the second quarter of 26. I am Brad Kessel, President and Chief Executive Officer. Joining me is Gavin A. Mohr, executive vice president and our chief financial officer. and Joel Rahn, executive vice president and head of commercial banking. Before we begin today's call, I would like to direct you to important information on page 2 of our presentations. Specifically the cautionary note regarding forward-looking statements. If anyone does not already have a copy of the press release issued by us today, you can access it at the company's website, independentbank.com. The agenda for today's call will include prepared remarks followed by a Q&A session, and then closing remarks. Earlier this morning, Independent Bank Corporation reported second quarter 26 net income of $18.8 million per diluted share, versus net income of $16.9 million or $0.81 per diluted share in the prior year period. Highlights for the second quarter of 26 include net interest margin of 3.71%, 6 basis point increase from the linked quarter. An increase in net interest income of $1 million or 2.2% over the first quarter of 26. An increase in tangible common equity per share of common stock of $0.86, or 14.8% annualized from 03/31/2026. A return on average assets and a return on average equity of 1.37% and 14.52%, respectively, For the quarter ended June 30, 2026. Net growth in total deposits less brokered time of $38.2 million or 3.2% annualized. Net loan growth of $106 million or 9.8% annualized. An increase in tangible common equity to 8.9% at 06/30/2026. And the payment of our 28 cents per share quarterly dividend on common stock on 05/14/2026. Our second quarter performance demonstrates the strength Independent Bank's community-banking model and the continued benefits of disciplined balance sheet management. Relationship-based lending and a stable locally focused deposit franchise. We saw broad based momentum across the business, with core customer activity supporting loan growth, core deposit growth, improving earning asset yields and continued capital generation. Just as important, we achieved these results while maintaining strong asset quality. Prudent liquidity, and capital levels that position us well in the current operating environment. The quarter also reinforced the value of our strategy, serving attractive Michigan markets, through local decision making, deep customer relationships, and consistent credit discipline. We believe that approach continues to differentiate Independent Bank and supports durable performance through changing rate and economic cycles. We were pleased to complete our acquisition of HCB Financial Corp. On 07/01/2026. Integration work is underway, with a targeted system conversion of November 9. We continue to believe the combination strengthens our presence in complementary markets and enhances our ability to serve customers employees, communities, and our shareholders over the long term. A few other highlights during the second quarter included Independent Bank being named Michigan's best in state bank by Forbes for 2026. Independent Bank is the only bank in Michigan that has been recognized by Forbes 4 years in a row. This also marks our 6th time overall that Independent has received this prestigious recognition. During the quarter, we announced the creation of 2 new regional president roles within our commercial banking structure, reinforcing our commitment to strong local leadership, relationship-based growth, and continued service to customers and communities across Michigan. This new leadership structure reflects our intentional alignment of markets, teams, and strategic priorities as the organization continues to grow. In their new roles, Kyle Johns and Daniel Plummer will lead market level relationship development, strengthen community engagement, foster collaboration across business lines, and help ensure consistent execution of our strategic goals. I am also proud to share that Independent Bank remains a top lender and resource for small business owners and entrepreneurs with our experienced lending team available to help eligible business access financing through the US Small Business Administration loan programs. As a member of the SBA's preferred lenders program, independent Bank has delegated authority to process and approve eligible SBA loan requests in house helping streamline the financing process for borrowers. Independent Bank was recently honored by the SBA Michigan district office as a top 10 lender for its outstanding contributions and support of Michigan small business community during fiscal year 25. Moving to page 5 of our presentation, deposits totaled $4.9 billion at 06/30/2026. An increase of $100 million from the start of the year. This growth occurred in non interest bearing, saving and interest bearing checking and reciprocal deposits offset by a small decline in time deposits and an $18 million reduction in brokered deposits. On a linked quarter basis, business deposits increased by $66 million, retail deposits increased by $15 million offset by a $45 million decrease in municipal deposits, primarily due to seasonality and usage of 47% retail, 40% commercial, and 13% municipal. On page 6, we have included in our presentation a historical view of our cost of funds as compared to the Fed funds spot rate and Fed effective rate. For the quarter, our total cost of funds decreased by 1 basis point to 1.53%. At this time, I would like to turn the presentation over to Joel Rahn to share a few comments on the success we are having in growing our loan portfolios and provide an update on our credit metrics. Joel? Joel F. Rahn: Yeah. Thanks, Brad. Good morning, everyone. Page 7 summarizes our loan activity for this quarter. We experienced strong second quarter loan growth of $105 million or 9.8% annualized. Commercial loan generation was very strong. With $92.6 million of quarterly growth or 16% annualized. During the quarter, our residential mortgage and consumer installment loan portfolios increased 12.9 million and $200 thousand respectively. Year to date, we have grown loans of $138 million by strong commercial loan growth of $146 million. Representing 13% annualized growth. Our strategic investment in commercial banking talent continues to supplement our loan growth. Year to date, we have added 8 experienced commercial bankers, bringing our total to 53 bankers comprising 8 commercial loan teams across our statewide footprint. Compared to a year ago, we have added a net of 6 experienced commercial bankers to our team. Looking ahead, based on a strong pipeline, we believe we will continue to see low-double-digit growth of our commercial loan portfolio for 2026. We continue to see market share opportunities from regional banks in both talent and customer acquisition, and are seeing steady organic growth from existing customers. Looking at the commercial loan production for the first half of the year, the mix of C and I lending versus investment real estate was 58% and 42%, respectively. And for our commercial portfolio, the mix is 67% c and I and 33% investment real estate. Page 8 provides detail on our commercial loan portfolio concentrations. And there has not been any significant shift in our portfolio over the past year. With the portfolio remaining very well diversified. Our largest segment of the C and I category continues to be manufacturing, $194 million or 8.2% of the total portfolio. In the investment real estate segment of the portfolio, the largest concentration is industrial at $219 million or 9.3%. We outlined key credit quality metrics on page 9. Overall, we continue to demonstrate, as Brad said, strong credit quality. Total nonperforming loans were $32.8 million or 74 basis points of total loans at quarter end,, up slightly from 64 basis points at March 31. it is worth noting that approximately 2/3 of the total commercial development exposure that we have discussed in prior quarters. We continue to work through the challenges of this particular project, and are appropriately reserved for any loss exposure. Past due loans totaled $5.6 million or 13 basis points down from $8.2 million or 19 basis points at threethirty 1. it is not reflected on this slide, but also worth noting that we realized net charge offs of $633 thousand or 3 basis points of average loans for the first half of the year. This compares to $442 thousand or 2 basis points in the first half of 2025. At this time, I would like to turn the presentation over to Gavin for his comments, including the outlook for the remainder of 2026. Gavin A. Mohr: Thanks, Joel, and good morning, everyone. I am starting on Page 10 of our presentation. Page 10 highlights our strong capital our strong regulatory capital position. I would highlight the increase in our tangible common equity ratio to 8.9% Turning to page 11, Net interest income increased $3.3 million from the year ago period. Our tax equivalent net interest margin was 3.71%. During the second quarter, 2026 compared to 3.58% in the second quarter of 25 and up 6 basis points from the first quarter of 26 Average interest earning assets were $5.33 billion in the second quarter of 26 compared to $5.11 billion in the year ago quarter and $5.23 billion in the first quarter of this year. Page 12 contains a more detailed analysis of the linked quarter increase in net interest income and the net interest margin. On a linked quarter basis, our second quarter 2026 net interest margin was positively impacted by 3 factors. Change in earning asset mix contributed 3 basis points An increase in earning asset yield contributed 2 basis points and a decrease in funding cost contributed 1 basis point. On page 13, we provide details on the institution's interest rate risk position. The comparative simulation analysis for the second quarter 26 and the first quarter of 2026 calculates the change in net interest income over the next 12 months on under 5 rate scenarios All scenarios assume a static balance sheet The base rate scenario applies spot. Yield curve from the valuation date. The shock scenario is considered immediate, permanent, parallel rate changes. The base case modeled in II is slightly higher during the quarter due to $60 million of earning asset growth 5 basis points of model margin expansion, Earning asset expansion was centered in commercial loans. It was up 97 million. Run off and lower yielding investments and overnight liquidity helped fund earning asset growth. Asset and liability yields were slightly higher during the quarter but that asset yields up 8 basis points and liability costs 3 basis points higher. NII sensitivity to lower rates declined modestly while the benefit to higher rates remain largely unchanged. Reduced exposure to lower rates is due to a $50 million notion notional floor purchases, and termination of $50 million of pay fixed swaps, overall position is closely matched for smaller rate changes of plus or minus 100 basis points. The bank has modest exposure to larger rate declines, and benefits from larger rate increases. Currently, 37.9% of assets repriced in 1 month and 49.4% repriced in the next 12 months. Moving on to page 14. Noninterest income totaled $15.3 million in the second quarter of 2026, as compared to $11.3 million in the year ago quarter and $12 million in the first quarter of 26. Second quarter 26 net gains on mortgage loans sold $1.7 million compared to $1.6 million in the prior year quarter. The increase is primarily due to higher volume of mortgage loans sold that were partially offset by lower profit margins Mortgage loan servicing was a gain of $2.5 million in the second quarter of 2026 compared to a gain of $500 thousand in the prior year quarter. The change due to price was a gain of $1.8 million or $0.07 per diluted share after tax in the second quarter of 26 compared to a loss of $2 million or $0.01 per diluted share after tax in the prior year period. As detailed on page 15, our noninterest expense totaled $37.8 million in the second quarter of 26. Compared to $33.8 million in the year ago quarter and $38.3 million in the first quarter of 26. Compensation and employee benefits expense increased 1.4 million primarily due to salary increases that were effective on 01/01/2026 and higher health insurance related cost. Litigation expense of $400 thousand is attributed to an accrual established for losses we consider probable. As a result of all of our outstanding litigation matters in the aggregate. Advertising expense increased $300 thousand in the second quarter of 26 compared to the prior year quarter, primarily due to new deposit account opening incentives We recorded merger related expenses of $4.4 million in the second quarter of 26. Turning to page 16 is our update for 2026 outlook to see how our actual performance during the second quarter compared to the original outlook that we provided in January of this year. Our outlook estimated full year loan growth of 4.5 to 5.5%. Loans increased a $106 million in the second quarter of 26, or 9.8% annualized, which is above our forecasted range. Commercial loans increased 92.6 million and mortgage loans increased 12.9 million while installment loans were flat for the second quarter. Second quarter 26 net interest income increased by 7.4% over 2025. Which is within our forecasted range of 7% to 8%. I would highlight this is the 12th consecutive quarter of increasing net interest income. The net interest margin was 3.71% for the current quarter and 3.58% for the prior year quarter. And up 6 basis points from our linked quarter. Perspective. The second quarter 26 provision for credit losses was an expense of $2.7 million. Is at the high end of our forecasted range. Moving on to page 17. Noninterest income totaled $15.3 million in the second quarter of 26, which was above our forecasted range of $11.3 million to $12.3 million Second quarter 26 mortgage loan origination sales and gains totaled $145 million, $97.1 million and $1.3 million respectively. Mortgage loan servicing net generated a gain of 2.5 million in the second quarter of 26, which is above our forecasted target. Positively impacting the second quarter results was a gain on equity securities of $1.6 million This is related to the exchange of Visa B2 shares to Visa Class C shares in the quarter. Noninterest expense was $37.8 million in the second quarter, above our forecasted range of $36 million to $37 million. We recorded litigation expense of $4.4 million in the quarter, as well as $400 thousand in merger related costs. Our effective income tax rate was 17.2% for the second quarter of 26 Lastly, there were no shares of common stock were repurchased in the second quarter or first 6 months of 26. That concludes my prepared remarks, and I would like to now turn the call back over to Brad. William Bradford Kessel: Thanks, Gavin. We have built a strong community bank franchise, which positions us well to effectively manage through a variety of economic environments to continue delivering strong and consistent results for our shareholders. As we move through the second half of 26, our focus will be continuing to invest in our team investing in and leveraging our technology, and the successful integration of the HCB franchise, while always working to be Michigan's most people focused bank. At this point, we would like to open up the call for questions. Operator: Thank you. Press 11 on your telephone. If your question has been answered or you wish to remove yourself from the Our first question comes from Brendan Nosal with Hovde Group. Your line is open. Brendan Nosal: Hey. Good morning, everybody. Hope you are doing well. Morning, Brad. Morning. Maybe just starting off here. On the expense number. I guess you guys continue to, add talent and producers and you are investing. I guess if I look at the core expense base, it was just above the high end of kind of the quarterly guidance range. Just kind of curious how you think about the run rate as we move through the balance of the year without considering HCB, just kind of legacy independent versus kind of that $36 million to $37 million range. Gavin A. Mohr: Yeah. So I think your analysis is accurate, Brendan. When I think about the core and based on our forecast, what was not comprehend or we did not have captured in that was certainly the litigation. of $400 thousand. The other thing that we had this quarter we did have incentive accrual catch-up that added $400 thousand. That being said, I mean, that I just would call that, part of core. And then we also had some elevated advertising expense that is related to deposit promotional, that is a deposit promotion that was that has been terminated, but there is still there is still some was still there is still some earnout taking place there. So when I think about on a net, I get back to that, around 37 million or high end of our range going forward. To answer your question. Yes. Yeah. William Bradford Kessel: I agree with that, Gavin. I would add also loan and collection right now is running a little bit higher, and it relates predominantly to the 1 credit. So as we move that through the process and hopefully, we can get that down too. Brendan Nosal: Okay. Fantastic. Thanks for the color there. Maybe pivoting to kind of what you are doing with the balance sheet in terms of the complexion and the margin. You have been on this journey of remixing the asset base into higher yielding commercial loans for some time now, and that is generated quite a bit of margin expansion irrespective of the rate environment. I guess, without asking specifically about the longer term margin expectation, I guess my question is whether the commercial remixing opportunity is exhausted by the end of this year or whether you think there is still more work to do in the future? Gavin A. Mohr: Yeah. The commercial remix-- to make sure I define your question correctly, So correct me if I do not if I get it wrong. So, from commercial wise, in terms of repricing, the commercial book is approaching market. Due to the short duration. That being said, the securities portfolio in the mortgage portfolio that we intend to continue certainly on the mortgage side, continue to redeploy into the commercial pipeline. Has room to run. And I would say we have been, you know, doing some analysis internally It all held the same. And we are seeing some favorability in the positive shape of the yield curve, Brendan. Continuing to grind higher for the next 12 months between flat to where we are at today at 6 basis points a quarter. Is not unreasonable. I do not I think 6 basis points is outsized, but you know, anywhere from 2 to 4 basis points a quarter going forward would not be unreasonable in terms of margin expansion. Fantastic, Gavin. Thank you for answering the question. Operator: 1 moment for our next question. Our next question comes from Nathan Race with Piper Sandler. Nathan Race: Hi, this is Nick on for Nathan Race. Thanks for taking my questions this morning. William Bradford Kessel: Sure, Nick. Nathan Race: Just going to expenses on the HCB deal with the deal closing earlier this month. Can you kind of walk through the cost savings cadence from here and do you kind of expect the savings to build gradually each quarter? Does the bulk of them kind come through after the system's conversion in November? Gavin A. Mohr: Yeah. That would be the latter, Nick. So we for various reasons, we chose to run the banks as separate subsidiaries Through conversion, as Brad highlighted on November 9. So, you know, running 2 individual banks, it did slow down some of those cost saves. But our team is focused on achieving, you know, that number very early in 2027 at the latest. William Bradford Kessel: To have a 2027 is fully implemented and realized. Yeah. I think that number was 40%. Gavin A. Mohr: It was 40%, yep, of half a year. Nathan Race: Got it. that is helpful. And then maybe switching to loan growth. How does the commercial pipeline kind of looks heading into third quarter? And did any of the quarters growth pull forward from the back half? Joel F. Rahn: Yeah. Nick, this is Joel. The pipeline is holding up well. We had a really strong second quarter of production and despite that, the pipeline is strong. And, you know, there is always some seasonality to it. And third quarter, just historically, is a little softer for loan production. Not bad, but typically a little bit softer just because early part of the quarter, a lot of people are on vacation. Business owners like to enjoy the summer. And then we always see the fourth quarter usually be quite strong. So I think that you know, if that sort of cyclical or seasonal pattern will hold this year. But our pipeline in terms of the dollar, where it is at today versus a year ago, very comparable, and we continue to see really good opportunities. Out in the marketplace. Nathan Race: Great. that is everything for me. Thanks, guys. Operator: Thank you. 1 moment for our next question. Our next question comes from Matthew Renck with KBW. Your line is open. Matt Renck: Hey. I hope everybody's doing well this morning. My first question was a follow-up to 1 of the earlier questions about commercial new origination yields. It looks like they were up 2 basis points, and you said the portfolio is approaching market. But do you think market yields have peaked at this point? And then I am just kind of curious how you guys weigh profitability with market share gain given the commercial opportunity in front of you. Gavin A. Mohr: I would say I will start with Joel. Joel F. Rahn: I think the question maybe for you out of the gate is what how do you feel about the market pricing in terms of raw yield? Are we kind of at the-- Well, it is obviously going to follow the industry market. So but in terms of spread, I will just refer to it that way. In terms of spread, we have been holding quite consistent. So it there is a lot of competition, but that is not that is nothing new. So I think it is we are in a pretty stable environment. Always healthy competition. that is just a part of our daily life. But in terms of our spread, we have been holding we have been holding ground, and I do not see that I do not see it growing. But I also do not see that we are, you know, that we are losing ground on our spread. So, again, it is all based on, you know, on market movement too. So we are looking at likely a increased Fed funds here in the near future and the treasury market continues to tick up. So that is the best insight I can provide you on that. Provide you on that. Gavin A. Mohr: Yeah. And, again, so we grew the portfolio, the commercial portfolio by $93 million. William Bradford Kessel: For the quarter. Mhmm. Gavin A. Mohr: The average new origination rate is 6.41. Joel F. Rahn: And the portfolio yield is 6.06. Gavin A. Mohr: Yeah. William Bradford Kessel: That you are right. Joel F. Rahn: I mean, that is as Gavin said, we are getting real close to market We are kind of par on the commercial portfolio now. Because of turnover. Matt Renck: Okay. Got it. And then just 1 follow-up on credit. I appreciate the color from earlier on. About the 2 thirds of it being 1 commercial loan. But is there any insight into the timeline on resolution there? And then just generally, like, looking across the portfolio, any areas you could keep an eye on or you are seeing early signs of stress in? Joel F. Rahn: Yeah. I cannot predict the timeline of that large 1. it is a legal process and it just always moves slower than we want it to move. And yet we do feel like we are gradually making headway. In terms of other areas, no. there is no there is not an industry concern at this point. You know, the 1 other loan of any significance that we moved to non accrual during the quarter On the commercial side, was a management issue. And that is what we are seeing is just the, the poor operators eventually catching up with them, but no industry concern from a commercial standpoint at this point. Matt Renck: Thank you. Operator: And I am not showing any further questions at this time. I would like to turn the call back over to Brad. William Bradford Kessel: In closing, I would like to thank our board of directors and our senior management for their support and leadership I also want to thank all our associates. I continue to be so proud of the job being done by each member of our team. Each team member in his or her own way continues to do their part towards our common goal of guiding our customers to be independent. Finally, I would like to thank each of you for your interest in Independent Bank Corporation. For joining us on today's call. Have a great day. Operator: Thank you. Ladies and gentlemen, that concludes today's presentation. We thank you for your participation. You may now disconnect, and have a wonderful day. Before you buy stock in Independent Bank, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Independent Bank wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $369,577!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,301,557!* That performance is why people listen. 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Independent Bank (IBCP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Independent Bank (IBCP) came out with quarterly earnings of $0.9 per share, beating the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $0.81 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.88%. A quarter ago, it was expected that this bank holding company would post earnings of $0.79 per share when it actually produced earnings of $0.81, delivering a surprise of +2.53%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Independent Bank, which belongs to the Zacks Banks - Midwest industry, posted revenues of $63.24 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.63%. This compares to year-ago revenues of $55.94 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Independent Bank shares have added about 10.7% since the beginning of the year versus the S&P 500's gain of 9.6%. While Independent Bank has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Independent Bank was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.94 on $66.5 million in revenues for the coming quarter and $3.55 on $252.65 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Park National (PRK), has yet to report results for the quarter ended June 2026. This financial services holding company is expected to post quarterly earnings of $3.01 per share in its upcoming report, which represents a year-over-year change of +3.8%. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. Park National's revenues are expected to be $167.24 million, up 18.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Independent Bank Corporation (IBCP) : Free Stock Analysis Report Park National Corporation (PRK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a relationship-based community banking model that supported 9.8% annualized net loan growth and improved earning asset yields. Net interest margin expanded by 6 basis points to 3.71%, benefiting from a disciplined shift in earning asset mix toward higher-yielding commercial loans. The bank is intentionally transitioning its portfolio by redeploying runoff from lower-yielding investments and mortgage portfolios into the commercial pipeline. Management attributed successful loan growth to strategic investments in commercial banking talent, adding 8 experienced bankers year-to-date to capture market share from regional competitors. The acquisition of HCB Financial Corp, closed on July 1, 2026, is expected to strengthen the bank's presence in complementary Michigan markets through a localized decision-making structure. Credit quality remains stable with net charge-offs at 3 basis points, though non-performing loans rose slightly due to a specific commercial development project. Management expects continued low-double-digit growth in the commercial loan portfolio for the remainder of 2026, supported by a strong pipeline. Net interest margin is projected to continue 'grinding higher' by approximately 2 to 4 basis points per quarter over the next 12 months, assuming a stable yield curve. The HCB Financial Corp integration is targeted for a system conversion on November 9, 2026, with full cost savings of 40% expected to be realized by early 2027. Loan production is anticipated to follow seasonal patterns, with a typically softer third quarter followed by a strong fourth quarter. Interest rate sensitivity is closely matched for small rate changes, though the bank maintains modest exposure to large rate declines and benefits from large rate increases. Recorded $4.4 million in merger-related expenses during the second quarter associated with the HCB Financial Corp acquisition. A $400 thousand litigation accrual was established for probable losses across outstanding legal matters. Non-performing loans include a significant commercial development exposure that management is working through via a legal process, noting they are appropriately reserved for potential loss. A $1.6 million gain on equity securities was realized from the exchange of Visa B2 shares into Visa Class C shares. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects the core expense run rate to settle around the high end of the $37 million range, excluding HCB impacts. Recent elevated expenses were attributed to litigation accruals, incentive catch-ups, and temporary deposit promotion advertising. The commercial portfolio yield of 6.06% is approaching the market origination rate of 6.41% due to rapid turnover and short duration. Management believes there is still 'room to run' for margin expansion as lower-yielding securities and mortgages are replaced by commercial loans. Management cannot predict the exact timeline for resolving the large non-performing commercial credit as it is subject to a slow-moving legal process. No broad industry-wide credit concerns were identified; recent non-accrual movements were attributed to isolated management issues at specific borrowers.

Interested in Independent Bank Corporation? Here are five stocks we like better. Independent Bank posted stronger Q2 2026 results, with net income rising to $18.8 million, or $0.90 per share, as net interest income increased for the 12th consecutive quarter and net interest margin improved to 3.71%. Loan growth was driven by commercial lending, with total loans up $105.8 million in the quarter and commercial loans accounting for most of the increase; management still expects low double-digit commercial loan growth for 2026. The bank’s deposit base and capital position remained solid, while credit quality was generally stable despite one large problem commercial development exposure. Independent also completed its HCB Financial acquisition on July 1 and is now focused on integration and cost savings. Independent Bank (NASDAQ:IBCP) reported higher second-quarter 2026 earnings as net interest income rose, loan growth accelerated and the company continued to build capital while preparing to integrate its recently completed acquisition of HCB Financial Corp. The Michigan-based bank posted net income of $18.8 million, or $0.90 per diluted share, for the quarter, compared with $16.9 million, or $0.81 per diluted share, in the same period a year earlier, President and Chief Executive Officer Brad Kessel said on the company’s earnings call. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Kessel said the quarter reflected “the strength of Independent Bank’s community banking model” and cited disciplined balance sheet management, relationship-based lending and a stable local deposit base as contributors to the results. Chief Financial Officer Gavin Mohr said net interest income increased $3.3 million from the year-ago period. The bank’s tax-equivalent net interest margin was 3.71% in the second quarter, up from 3.58% in the second quarter of 2025 and up 6 basis points from the first quarter of 2026. → 3 Photonics Companies Making Quantum Tech Possible On a linked-quarter basis, Mohr said the margin benefited from three factors: a change in earning asset mix, which added 3 basis points; higher earning asset yields, which added 2 basis points; and lower funding costs, which added 1 basis point. Average earning assets were $5.33 billion, compared with $5.11 billion a year earlier and $5.23 billion in the first quarter. Mohr said the company has now recorded its 12th consecutive quarter of increasing net interest income. During the question-and-answer session, he said additional margin expansion of roughly 2 to 4 basis points per quarter would not be unreasonable, though he called the second quarter’s 6-basis-point increase “outsized.” → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Total loans increased $105.8 million in the second quarter, or 9.8% annualized. Joel Rahn, executive vice president and head of commercial banking, said commercial loans accounted for most of the increase, rising $92.6 million, or 16% annualized. Residential mortgage loans increased $12.9 million, while consumer installment loans were essentially flat. Year to date, total loans grew $138 million, led by commercial loan growth of $146 million, or 13% annualized. Rahn said the bank continues to benefit from investments in commercial banking talent, noting that it has added eight experienced commercial bankers so far this year and now has 53 bankers across eight commercial lending teams statewide. Rahn said the bank expects “low double-digit growth” in its commercial loan portfolio for 2026, supported by a strong pipeline and market-share opportunities from regional banks in both talent and customer acquisition. He said first-half commercial production was split 58% commercial and industrial lending and 42% investment real estate. The overall commercial portfolio mix was 67% C&I and 33% investment real estate. In response to an analyst question, Rahn said the commercial pipeline remained strong entering the third quarter, though he noted the third quarter is typically somewhat softer because of seasonal factors, while the fourth quarter is usually strong. Deposits totaled $4.9 billion at June 30, up $100 million from the start of the year. Kessel said growth came from non-interest-bearing deposits, savings and interest-bearing checking accounts, and reciprocal deposits. That growth was partly offset by a small decline in time deposits and an $18 million reduction in brokered deposits. On a linked-quarter basis, business deposits rose $66 million and retail deposits increased $15 million. Municipal deposits declined $45 million, which Kessel attributed primarily to seasonality and the use of American Rescue Plan Act funds. The deposit base was composed of 47% retail, 40% commercial and 13% municipal deposits. The bank’s total cost of funds declined 1 basis point to 1.53% for the quarter. Tangible common equity increased to 8.9% at June 30. Kessel also noted a $0.28 per share quarterly common stock dividend paid on May 14. Rahn said overall credit quality remained strong. Total nonperforming loans were $32.8 million, or 74 basis points of total loans, at quarter-end, up from 64 basis points at March 31. He said about two-thirds of that total related to one commercial development exposure that management has discussed in prior quarters. “We continue to work through the challenges of this particular project and are appropriately reserved for any loss exposure,” Rahn said. Past-due loans totaled $5.6 million, or 13 basis points, down from $8.2 million, or 19 basis points, at the end of the first quarter. Rahn said net charge-offs were $633,000, or 3 basis points of average loans, for the first two quarters of 2026, compared with $442,000, or 2 basis points, in the first half of 2025. During the Q&A session, Rahn said there were no broad industry concerns in the commercial portfolio. He said one other commercial loan of significance moved to nonaccrual during the quarter, attributing it to a management issue rather than an industry trend. Non-interest income totaled $15.3 million in the second quarter, compared with $11.3 million a year earlier and $12.0 million in the first quarter. Mohr said mortgage loan servicing generated a $2.5 million gain, and the quarter also included a $1.6 million gain on equity securities related to the exchange of Visa B-2 shares for Visa Class C shares. Non-interest expense was $37.8 million, compared with $33.8 million a year earlier and $38.3 million in the first quarter. Mohr said compensation and employee benefits increased primarily because of salary increases effective Jan. 1 and higher health insurance costs. He also cited $4.4 million in merger-related expenses and a $0.4 million litigation accrual. Independent completed its acquisition of HCB Financial Corp. on July 1. Kessel said integration work is underway, with a targeted system conversion date of Nov. 9. In response to an analyst question, Mohr said cost savings from the deal are expected to come mostly after conversion, with the company focused on achieving its targeted savings by early 2027 at the latest. Kessel said the company’s priorities for the second half of 2026 include continued investment in its team and technology, as well as successful integration of the HCB franchise. Independent Bank Corporation (NASDAQ: IBCP) is a bank holding company headquartered in Grand Rapids, Michigan. Through its primary subsidiary, Independent Bank, the company offers a full range of commercial and personal banking services designed to meet the needs of individuals, small businesses and corporate clients. The company's offerings span traditional branch-based banking as well as digital and mobile platforms. Independent Bank provides deposit products such as checking and savings accounts, money market accounts and certificates of deposit. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Independent Bank Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Independent Bank (IBCP) reported $63.24 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 13%. EPS of $0.90 for the same period compares to $0.81 a year ago. The reported revenue represents a surprise of +5.63% over the Zacks Consensus Estimate of $59.87 million. With the consensus EPS estimate being $0.85, the EPS surprise was +5.88%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Independent Bank performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Efficiency Ratio: 60.6% versus the three-analyst average estimate of 60.4%. Net Interest Margin (GAAP): 3.7% versus the three-analyst average estimate of 3.7%. Total interest-earning assets: $5.22 billion compared to the $5.22 billion average estimate based on two analysts. Total non-interest income: $15.33 million versus $12.09 million estimated by three analysts on average. Net Interest Income: $47.9 million compared to the $47.8 million average estimate based on three analysts. Service charges on deposit accounts: $3.1 million versus $2.96 million estimated by two analysts on average. Interchange income: $3.58 million versus $3.48 million estimated by two analysts on average. Mortgage loans: $1.65 million versus the two-analyst average estimate of $1.8 million. Other income: $3.04 million compared to the $3.09 million average estimate based on two analysts. Mortgage loan servicing, net: $2.46 million versus the two-analyst average estimate of $0.71 million. View all Key Company Metrics for Independent Bank here>>> Shares of Independent Bank have returned +1.2% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Independent Bank Corporation (IBCP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

GRAND RAPIDS, Mich., July 23, 2026 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ: IBCP) reported second quarter 2026 net income of $18.8 million, or $0.90 per diluted share, versus net income of $16.9 million, or $0.81 per diluted share, in the prior-year period. Highlights for the second quarter of 2026 include: A net interest margin of 3.71% (six basis point increase from the linked quarter); Increase in net interest income of $1.0 million (or 2.2% ) over the first quarter of 2026; Increase in tangible common equity per share of common stock of $0.86 (or 14.8% annualized) from March 31, 2026; A return on average assets and a return on average equity of 1.37% and 14.52%, respectively, for the quarter ended June 30, 2026; Net growth in total deposits, less brokered time deposits, of $38.2 million (or 3.2% annualized) from March 31, 2026; Net loan growth of $105.8 million (or 9.8% annualized) from March 31, 2026; An increase in the tangible common equity ratio to 8.9% at June 30, 2026; and The payment of a $0.28 per share quarterly dividend on common stock on May 14, 2026. William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “Our second quarter performance demonstrates the strength of Independent Bank’s community banking model and the continued benefits of disciplined balance sheet management, relationship-based lending, and a stable, locally-focused deposit franchise. We saw broad-based momentum across the business, with core customer activity supporting loan growth, core deposit growth, improved earning-asset yields, and continued capital generation. Just as important, we achieved these results while maintaining strong asset quality, prudent liquidity, and capital levels that position us well for the current operating environment. “The quarter also reinforced the value of our strategy: serving attractive Michigan markets through local decision-making, deep customer relationships, and consistent credit discipline. We believe that approach continues to differentiate Independent Bank and supports durable performance through changing rate and economic cycles. We were pleased to complete our acquisition of HCB Financial Corp. on July 1, 2026. Integration work is underway, and we believe the combination strengthens our presence in complementary markets and enhances our ability to serve customers, employees, communities, and shareholders over the long term.” Significant items impacting comparable second quarter 2026 and 2025 results include the following: Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of $1.8 million ($0.07 per diluted share, after tax) for the three-month period ended June 30, 2026, as compared to ($0.2) million (($0.01) per diluted share, after tax) for the three-month period ended June 30, 2025. Gain on equity securities at fair value of $1.6 million ($0.06 per diluted share, after tax) in the second quarter ended June 30, 2026, attributable to the exchange of our Visa Class B-2 common stock. No gain or loss on equity securities at fair value was recorded for the second quarter of 2025. Operating Results The Company’s net interest income totaled $47.9 million during the second quarter of 2026, an increase of $3.3 million, or 7.4% from the year-ago period, and an increase of $1.0 million, or 2.2%, from the first quarter of 2026 which had one less day of earnings. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.71% during the second quarter of 2026, compared to 3.58% in the year-ago period, and 3.65% in the first quarter of 2026. The linked quarter increase in the net interest margin was supported by a five basis point increase on earning asset yield and a one basis point decrease in the cost of interest bearing liabilities. The year-over-year quarter and linked quarter increases in net interest income were due to both an increase in average interest-earning assets and the higher net interest margin. Average interest-earning assets were $5.22 billion in the second quarter of 2026, compared to $5.04 billion in the year-ago quarter and $5.21 billion in the first quarter of 2026. Non-interest income totaled $15.3 million for the second quarter of 2026, compared to $11.3 million in the comparable prior year period and $12.0 million in the preceding quarter. This change was primarily due to variances in mortgage banking related revenues and gain on equity securities at fair value. Gain on equity securities totaled $1.6 million during the second quarter of 2026. This gain resulted from the exchange of our shares of Visa Class B-2 common stock on May 8, 2026 into a combination of Visa Class C common stock and Visa Class B-3 common stock. With the completion of this exchange, the fair value of the Visa Class C common stock was recognized through income (as it is convertible into publicly traded Visa Class A common stock) while the Visa Class B-3 common stock continues to be carried at zero. Net gains on mortgage loans in the second quarters of 2026 and 2025 were approximately $1.7 million and $1.6 million, respectively. Mortgage loan servicing, net, generated income of $2.5 million and $0.5 million in the second quarters of 2026 and 2025, respectively. The significant variance in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in interest rates and the associated expected future prepayment levels and expected float rates. Capitalized mortgage loan servicing rights totaled $33.9 million and $31.5 million at June 30, 2026 and December 31, 2025, respectively. Mortgage loan servicing, net activity is summarized in the following table: Non-interest expenses totaled $37.8 million in the second quarter of 2026, compared to $33.8 million in the year-ago period. The increase in non-interest expense is primarily due to increases in compensation and employee benefits, advertising, merger related expenses and data processing as well as a $0.4 million litigation expense recorded during the quarter. The Company recorded income tax expense of $3.9 million in the second quarter of 2026. This compares to an income tax expense of $3.8 million in the second quarter of 2025. The 2026 second quarter income tax expense includes a $0.2 million benefit from transferable energy tax credits. Asset QualityA breakdown of non-performing loans by loan type is as follows (1): (1) Non-performing loans include non-accrual loans and loans 90 days or more past due and still accruing interest. The provision for credit losses was an expense of $2.72 million and $1.50 million in the second quarters of 2026 and 2025, respectively. The Company recorded loan net charge offs of $0.37 million in both of the second quarters of 2026 and 2025. At June 30, 2026, the allowance for credit losses for loans totaled $65.7 million, or 1.49% of total portfolio loans compared to $63.4 million, or 1.48% of total portfolio loans at December 31, 2025. Commercial loans in the table above are primarily made up of one commercial development exposure totaling $28.18 million. Balance Sheet, Capital and LiquidityTotal assets were $5.66 billion at June 30, 2026, an increase of $158.1 million from December 31, 2025. Loans, excluding loans held for sale, were $4.41 billion at June 30, 2026, compared to $4.28 billion at December 31, 2025.  Deposits totaled $4.86 billion at June 30, 2026, an increase of $100.5 million from December 31, 2025. This increase is primarily due to increases in non-interest bearing, savings and interest-bearing checking and reciprocal that were partially offset by a decrease in brokered time deposits. Cash and cash equivalents totaled $165.5 million at June 30, 2026, versus $138.4 million at December 31, 2025. Securities available for sale (“AFS”) totaled $494.0 million at June 30, 2026, versus $495.9 million at December 31, 2025. Total shareholders’ equity was $528.4 million at June 30, 2026, or 9.33% of total assets compared to $503.0 million or 9.14% at December 31, 2025. Tangible common equity totaled $499.3 million at June 30, 2026, or $24.24 per share compared to $473.7 million or $23.05 per share at December 31, 2025. The increases in shareholders’ equity as well as tangible common equity are primarily the result of earnings retention. The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios: At June 30, 2026, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $688.9 million and $1.18 billion, respectively. We also had approximately $450.5 million in fair value of unpledged securities AFS and HTM at June 30, 2026 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $424.1 million. Share Repurchase PlanOn December 16, 2025, the Board of Directors of the Company authorized the 2026 share repurchase plan. Under the terms of the 2026 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2026. During the six month period ended June 30, 2026, there were no shares of common stock repurchased. Earnings Conference CallBrad Kessel, President and CEO, Gavin Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, July 23, 2026. To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: https://register-conf.media-server.com/register/BI645bccc138044d5c9b0f8bf44d8ecd96. In order to view the webcast and presentation slides, please go to https://edge.media-server.com/mmc/p/znkibk4a during the time of the call. A replay of the webcast will be available until July 23, 2027. About Independent Bank CorporationIndependent Bank Corporation (NASDAQ: IBCP) is a Grand Rapids, Michigan-based bank holding company and the parent company of Independent Bank and, as of July 1, 2026, Highpoint Community Bank. Independent Bank Corporation has total assets of approximately $6.3 billion and operates from 66 locations across Michigan’s Lower Peninsula. Founded in 1864 as First National Bank of Ionia, Independent Bank provides a full range of financial services, including commercial banking, consumer banking, mortgage lending, and investment services. Independent Bank expects to complete the full system integration of Highpoint Community Bank’s operations on November 9, 2026. Until conversion, customers of Highpoint Community Bank should continue using their existing Highpoint Community Bank branches, checks, bank cards, online and mobile banking, and other banking services as usual. For more information, please visit our Web site at: IndependentBank.com. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and are often identified by words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “target,” “may,” “will,” “should,” “could,” “would,” “outlook,” and similar expressions. These statements include, without limitation, statements regarding our anticipated future financial performance and components of that performance, acquisition integration activities, expected benefits of the completed acquisition, and future plans, prospects and performance. Forward-looking statements involve inherent risks and uncertainties, and actual results may differ materially from those expressed or implied by such statements. Factors that could cause actual results to differ materially include deterioration in general business and economic conditions or turbulence in domestic or global financial markets; changes in interest rates; changes in unemployment rates; deterioration in the credit quality of our loan portfolio or in the value of collateral securing loans; deterioration in the value of our investment securities; changes in funding availability or costs; legal and regulatory developments; the timing, cost and outcome of pending or threatened litigation and regulatory matters; changes in customer behavior and preferences; cybersecurity incidents or other data-security breaches; risks relating to the integration of Highpoint Community Bank, including customer and employee retention, systems conversion, unexpected costs, disruption to business relationships, and the risk that anticipated benefits may not be realized when expected or at all; and management’s ability to effectively manage the risks facing our business. Additional risk factors are described in our Annual Report on Form 10-K for the year ended December 31, 2025 and other reports filed with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of future results. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we undertake no obligation to update or revise any forward-looking statement. INDEPENDENT BANK CORPORATION AND SUBSIDIARIESConsolidated Statements of Financial Condition INDEPENDENT BANK CORPORATION AND SUBSIDIARIESConsolidated Statements of Operations INDEPENDENT BANK CORPORATION AND SUBSIDIARIESSelected Financial Data (1)   Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%. INDEPENDENT BANK CORPORATION AND SUBSIDIARIESSelected Financial Data (continued) (2)   Refer to Reconciliation of Non-GAAP Financial Measures.(3)   June 30, 2026 are Preliminary.Reconciliation of Non-GAAP Financial MeasuresIndependent Bank Corporation Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends.  Tangible common equity is used by the Company to measure the quality of capital. Reconciliation of Non-GAAP Financial Measures (1)   Annualized. Tangible Common Equity Ratio The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets.  Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.