IBCP · Independent Bank Corporation

Independent Bank Corporation reported strong first quarter 2026 results, with net income rising to $16.9 million, or $0.81 per diluted share, compared to $15.6 million, or $0.74 per share, in the prior-year period. The improvement was driven by a 7.3% year-over-year increase in net interest income to $46.9 million and a 16 basis point linked-quarter expansion in the net interest margin to 3.65%. Management attributed the margin expansion primarily to a 16 basis point decrease in the cost of deposits, which offset a slight decline in asset yields. Balance sheet growth remained disciplined, highlighted by a $53.8 million, or 9.9% annualized, increase in commercial loans and an $80.4 million increase in core deposits. Asset quality metrics remained sound, with non-performing assets totaling 0.51% of total assets and the allowance for credit losses covering 231% of non-performing loans. Non-interest expense increased to $38.3 million, largely due to a $1.5 million litigation expense and merger-related costs. The Company also highlighted its pending merger with HCB Financial Corp., which management believes will enhance shareholder value. Capital levels remained robust, with a Common Equity Tier 1 ratio of 11.43% and a tangible common equity ratio of 8.7%.