Independent Bank Corp (Michigan)
NASDAQ:IBCP
Independent Bank Corp (Michigan)
Independent Bank Corp. operates as a bank holding company, which engages in the provision of financial services. The company is headquartered in Grand Rapids, Michigan and currently employs 866 full-time employees. The firm operates through the community banking segment, which provides a range of banking services, including lending activities, acceptance of demand, savings, and time deposits, and investment management. The firm is engaged in bank transacts business in the single industry of commercial banking. The Bank classifies loans as commercial, consumer real estate and other consumers. Its commercial loans consist of commercial and industrial loans, commercial real estate, commercial construction, and small business loans. Its consumer real estate consists of residential mortgages and home equity loans and lines of credit that are secured primarily by owner-occupied residences and mortgages for the construction of residential properties. Its other consumer loans are focused on personal loans. The company has over 119 retail branches, two limited-service branches and a mobile branch in Eastern Massachusetts.
Independent Bank Corp. operates as a bank holding company, which engages in the provision of financial services. The company is headquartered in Grand Rapids, Michigan and currently employs 866 full-time employees. The firm operates through the community banking segment, which provides a range of banking services, including lending activities, acceptance of demand, savings, and time deposits, and investment management. The firm is engaged in bank transacts business in the single industry of commercial banking. The Bank classifies loans as commercial, consumer real estate and other consumers. Its commercial loans consist of commercial and industrial loans, commercial real estate, commercial construction, and small business loans. Its consumer real estate consists of residential mortgages and home equity loans and lines of credit that are secured primarily by owner-occupied residences and mortgages for the construction of residential properties. Its other consumer loans are focused on personal loans. The company has over 119 retail branches, two limited-service branches and a mobile branch in Eastern Massachusetts.
Earnings Growth: Independent Bank reported fourth quarter net income of $18.6 million ($0.89 per share), up slightly from $18.5 million ($0.87 per share) in the prior year. Full-year 2025 net income was $68.5 million ($3.27 per share), up from $66.8 million ($3.16 per share) in 2024.
Net Interest Margin: Net interest margin increased to 3.62% in Q4 2025, up 8 basis points from the previous quarter and 17 basis points year-over-year.
Loan & Deposit Growth: Loans grew by $78 million (7.4% annualized) in Q4, with commercial loans driving growth. Deposits increased by $107.6 million year-over-year, with notable growth in retail and business deposits.
Capital Strength: Tangible common equity ratio improved to 8.65%, returning to the targeted range. The company repurchased 407,113 shares for $12.4 million in 2025.
Outlook 2026: Management expects 4.5%–5.5% loan growth, 7%–8% net interest income growth, and continued net interest margin expansion in 2026. Noninterest income expected to rise 3%–4% year-over-year.
Strong Credit Quality: Credit metrics remain solid, with non-performing loans at 0.54% of total loans and net charge-offs at just 4 basis points.
Dividend: The dividend payout ratio was 32% for 2025, and the board recently approved a 7.5% increase.
