Independent Bank Corporation Reports 2026 Third Quarter Earnings of $0.80 Per Diluted Share
Key Highlights
- ➤Net income $17.9 million, or $0.80 per diluted share, versus $0.84 prior year
- ➤Net interest income $55.3 million, up 15.4% from the second quarter
- ➤Net interest margin 3.79%, up 12 basis points sequentially and 28 year over year
- ➤Highpoint acquisition added $366.7 million loans and $543.5 million deposits
- ➤Non-performing loans rose to $39.2 million, or 0.80% of portfolio loans
Expert Statements
William B. (“Brad”) Kessel, President and Chief Executive Officer of Independent Bank Corporation
“Our third quarter results reflect strong organic growth, continued margin expansion, and the first full quarter of contributions from Highpoint Community Bank (“Highpoint”). Net income was $17.9 million, or $0.80 per diluted share. Excluding after tax merger-related expenses of $2.8 million, adjusted net income((1)) was $20.6 million or $0.92 per diluted share. Net interest income increased 15.4% from the second quarter to $55.3 million, and net interest margin expanded 12 basis points to 3.79% (11 basis points to 3.82% on a tax-equivalent basis((1))).”
William B. (“Brad”) Kessel, President and Chief Executive Officer of Independent Bank Corporation
“We delivered outstanding annualized linked-quarter commercial loan growth of 20.9% and total deposit growth of 9.4%, each excluding Highpoint, underscoring the strength of our relationship banking strategy and momentum in our core franchise. Credit loss provisioning increased due to new loans added to the portfolio, including acquired Highpoint loans unfunded lending commitments and an increase in the specific reserve for one commercial relationship, while net loan charge-offs remained low at $0.2 million.”
William B. (“Brad”) Kessel, President and Chief Executive Officer of Independent Bank Corporation
“As we prepare for Highpoint’s system conversion in November, our teams remain focused on a seamless customer transition and on realizing the long-term benefits of the combined banks. We thank our colleagues for their continued commitment to our customers and their efforts to bring our two organizations together.”
GRAND RAPIDS, Mich., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2026 net income of $17.9 million, or $0.80 per diluted share, versus net income of $17.5 million, or $0.84 per diluted share, in the prior-year period.
Highlights for the third quarter of 2026 include: * Net growth in loans of $116.6 million or 10.5% annualized from June 30, 2026, exclusive of $366.7 million of Highpoint Community Bank loans, acquired on July 1, 2026. Total loan growth of $483.3 million, or 10.95% (not annualized), during the third quarter; * Net growth in total deposits of $115.8 million or 9.4% annualized from June 30, 2026, excluding $543.5 million Highpoint Community Bank deposits, acquired on July 1, 2026. Total deposit growth of $659.3 million, or 13.56% (not annualized), during the third quarter; * Net interest margin increased to 3.79% for the third quarter of 2026, a 12 basis point increase from the prior quarter, and a 28 basis point increase from the third quarter of 2025. On a fully tax-equivalent basis((1)), net interest margin was 3.82%, an 11 basis point increase from the prior quarter. Excluding Highpoint Community Bank acquisition-related purchase accounting accretion((1)), net interest margin was 3.76%, a 5 basis point increase from the prior quarter; * Net interest income increased $7.4 million from the prior quarter ended June 30, 2026; * A return on average assets and a return on average equity of 1.14% and 12.17%, respectively, for the quarter ended September 30, 2026; * Income before income tax of $21.5 million for the quarter ended September 30, 2026, compared to $22.7 million in the prior quarter and $21.2 million for the quarter ended September 30, 2025. Pre-tax, pre-provision net revenue((1)) increased to $26.3 million for the quarter ended September 30, 2026, from $25.4 million during the prior quarter and $23.2 million for the quarter ended September 30, 2025; * The payment of a $0.28 per share quarterly dividend on common stock on August 14, 2026; and * Completed the acquisition of HCB Financial Corp. on July 1, 2026. (1) Non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below.
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