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Here are 1-3 brief analogies to describe Independent Bank (IBCP):

• A regional Chase Bank, serving primarily Michigan and parts of Ohio.

• Think of it as a smaller, Michigan-focused PNC Bank, offering a full suite of banking, insurance, and investment services.

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• Deposit Accounts: Provides various checking and savings accounts for individuals and businesses.
• Lending Services: Offers commercial, direct and indirect consumer, and mortgage loans to meet diverse financing needs.
• Digital Banking & ATM Services: Facilitates convenient banking through automatic teller machines, internet, and mobile platforms.
• Safe Deposit Boxes: Rents secure physical storage for valuable items.
• Title Insurance: Provides insurance coverage against losses due to defects in property titles.
• Insurance Brokerage: Offers a range of insurance products and services through its brokerage operations.
• Investment Services: Provides financial planning and wealth management solutions to clients.

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Independent Bank (IBCP) sells primarily to individuals and businesses rather than a few major corporate customers. Its services are diversified across a broad client base. The major categories of customers it serves are:

1. Individual Consumers: This category includes individuals who utilize the bank's services for personal financial needs such as checking and savings accounts, mortgage lending, and direct and indirect consumer financing.
2. Businesses: This category encompasses various businesses, ranging from small to medium-sized enterprises, that utilize Independent Bank for commercial lending, business checking and savings accounts, and other business banking services.

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William B. Kessel President & Chief Executive Officer

William B. Kessel joined Independent Bank Corporation (IBCP) in 1994. He has served as President since April 1, 2011, and as Chief Operating Officer from 2007 to 2011. Mr. Kessel was appointed CEO on January 1, 2013, though some sources indicate May 2013. Before joining IBCP, he worked for a regional certified public accounting firm. He possesses over 30 years of experience in the financial services industry. Under his leadership, Independent Bank has spearheaded several key acquisitions, including Traverse City State Bank (TCSB Bancorp, Inc.) and various branch acquisitions.

Gavin A. Mohr EVP — Chief Financial Officer

Gavin A. Mohr was appointed Executive Vice President and Chief Financial Officer on September 14, 2020. Prior to his role at Independent Bank Corporation, Mr. Mohr served as Chief Financial Officer of Star Financial Bank in Fort Wayne, Indiana.

Stefanie M. Kimball EVP — Chief Risk Officer

Stefanie M. Kimball was appointed EVP and Chief Risk Officer in September 2012. She joined Independent Bank Corporation in April 2007 as Executive Vice President - Commercial Lending. Before her tenure at Independent Bank, Ms. Kimball spent 25 years with Comerica Incorporated, where her most recent position was Senior Vice President - Credit Strategies and Solutions.

Michael J. Stodolak EVP – Retail Banking

Michael J. Stodolak has held various positions with Independent Bank, including his current role as Executive Vice President, Retail Banking. He joined the bank over 25 years ago, where he was responsible for leading the retail network and Consumer Lending program.

Chris Michaels EVP & Chief Operating Officer

Chris Michaels joined Independent Bank in February 2012. He began his career at the bank in Information Technology and was appointed Senior Vice President and Chief Information Officer in January 2020. In his current capacity as EVP and Chief Operating Officer, Mr. Michaels is responsible for leading enterprise-wide initiatives focused on operational efficiency, customer experience, and scalable growth.

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Key Risks to Independent Bank (IBCP)

1. Regulatory and Economic Risks: Independent Bank faces significant risks from broad economic conditions, including interest rate volatility, inflation, and general macroeconomic events. The bank's revenue is heavily reliant on interest income, making it particularly vulnerable to fluctuations in interest rates, which can significantly impact net interest margins and overall profitability. For instance, a slowdown in GDP growth and falling interest rates can pressure net interest margins. Changes in regulatory policies and a highly competitive financial services landscape, including competition from larger banks, credit unions, and fintech companies, also pose ongoing threats to the bank's financial performance and ability to attract and retain customers.
2. Credit Risk: The bank is exposed to credit risk, which includes the potential for deterioration in the credit quality of its loan portfolios and a rise in non-performing loans. This is particularly relevant given its exposure to regional economic conditions in Michigan and the broader macroeconomic environment. Commercial credit risk, in particular, is increasing due to sustained higher interest rates and economic uncertainty, with specific pockets of risk identified in certain commercial real estate property types. An increase in non-performing assets has been noted, driven by specific commercial relationships, highlighting potential vulnerabilities in its loan portfolio.
3. Cybersecurity and Operational Risks: Independent Bank, like all financial institutions, is highly susceptible to cybersecurity threats and operational disruptions. The bank collects, transmits, and stores large amounts of sensitive customer data, making it a target for sophisticated cyber-attacks, intrusions, and fraud. Failure to effectively manage these risks could lead to significant financial losses, reputational damage, and increased legal and compliance costs. The increasing speed of risk and evolving cyber threats necessitate robust operational resilience and risk management practices.

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The clear emerging threat to Independent Bank (IBCP) is the continued rise and adoption of **digital-only banks (neobanks) and specialized fintech lenders**. These competitors offer banking services, including checking and savings accounts, consumer financing, and mortgage lending, with lower overhead costs due to a lack of physical branches. This allows them to offer more competitive rates (e.g., higher interest on savings, lower fees) and often a superior, more convenient mobile-first digital experience, directly challenging IBCP's traditional branch-based model for attracting deposits and originating loans.

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Addressable Markets for Independent Bank (IBCP)

Independent Bank Corporation (IBCP) operates primarily in Michigan and Ohio, offering a range of banking, lending, and investment services. The addressable market sizes for its main products and services in these regions are as follows:

• Commercial Lending: The market size for the Commercial Banking industry in Michigan is projected to be $23.6 billion in 2026. While specific aggregate market figures for commercial lending in Ohio were not readily available, the commercial banking industry in Ohio has been experiencing an average annual growth rate of 7.1% from 2020 to 2025. Ohio's financial services economy, which includes banking, has a gross domestic product of $52 billion.
• Deposits (Checking and Savings Accounts): The total deposits in all banks in Michigan amounted to approximately $311 billion in 2024. In Ohio, the overall deposit market was approximately $565.32 billion in 2025.
• Mortgage Lending: Mortgage lenders in Michigan collectively originated $54.5 billion in volume in 2022. Data for the total mortgage lending market size in Ohio was not available.
• Investment Services (Portfolio Management & Investment Advice): The market size for the Portfolio Management & Investment Advice industry in Michigan is projected to be $5.0 billion in 2026. For Ohio, this market is estimated at $9.4 billion in 2026.
• Other Products/Services: For direct and indirect consumer financing, safe deposit box services, title insurance, and insurance brokerage, a clear aggregate addressable market size in currency for the specified regions could not be identified from the available information, thus these are returned as null.

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Independent Bank Corporation (IBCP) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Loan Growth, particularly Commercial and Mortgage Lending: Independent Bank anticipates mid-to-high single-digit loan growth, specifically targeting a full-year growth rate of 6% to 8% in 2024, with expectations for continued mid-single-digit growth in 2026 (4.5% to 5.5%). This growth is expected to be led by commercial and mortgage loans. Commercial lending, in particular, has been a strong performer, with a reported 14.2% year-over-year expansion in commercial balances in 2025. The focus on new commercial clients that also bring deposits to the bank supports this initiative.
2. Net Interest Margin (NIM) Expansion: The company projects net interest margin expansion, with expectations for NIM to increase by 10 to 15 basis points in 2024 compared to 2023, primarily due to increasing yields on earning assets. Further expansion is targeted for 2026, with an expected increase of 18-23 basis points for the full year, driven by funding mix improvements and disciplined asset pricing. Management anticipates quarterly NIM expansion of 5-7 basis points in Q1 2026, followed by 3-5 basis points in subsequent quarters.
3. Net Interest Income (NII) Growth: Directly linked to loan growth and NIM expansion, Independent Bank forecasts net interest income growth. The company projected a NII growth rate of 6% to 8% for full-year 2024 and further expects NII to increase by 7% to 8% over full-year 2025.
4. Growth in Non-Interest Income: Independent Bank aims to increase non-interest income. For full-year 2024, non-interest income saw an increase of 11.2%. For 2026, the company forecasts quarterly non-interest income in the range of $11.3 million to $12.3 million, representing a full-year increase of 3% to 4% from 2025 actuals. This includes assumptions for mortgage loan servicing net.
5. Strategic Initiatives and Market Expansion: Independent Bank is implementing strategic initiatives to foster growth. These include focusing on outside sales and relationship banking, enhancing inside service and sales through collaboration, leveraging digital marketing for customer experience, and utilizing referral networks (like Fintech ReferLive). The bank also plans to launch new products, such as SMB deposit products and business digital payments, and expand its market reach through its existing indirect dealer network. Talent acquisition is also cited as strengthening its community bank franchise.

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Share Repurchases

• The company authorized a 2026 share repurchase plan to buy back up to 1,100,000 shares, representing approximately 5% of its common stock, effective through December 31, 2026.
• Independent Bank Corporation also authorized a 2025 share repurchase plan for up to 1,100,000 shares, equivalent to about 5% of its common stock.
• For the full year 2025, the company repurchased 407,113 shares of its common stock at an aggregate cost of $12.4 million.

Share Issuance

• No significant common stock issuances to raise capital were reported over the last 3-5 years.

Outbound Investments

• The company has indicated a strategic initiative for "selective and opportunistic bank and branch acquisitions."

Capital Expenditures

• Independent Bank Corporation requires liquidity to fund various obligations, including capital expenditures.
• Capital expenditure focus areas include "Branch Optimization" and "Invest in technology."
• Expected increases in non-interest expenses for 2026 are primarily driven by compensation and employee benefits, data processing, loan and collections, and occupancy.