Highlights

  • Third quarter 2026 net income was $17.9 million, or $0.80 per diluted share, compared with $17.5 million, or $0.84, a year earlier.
  • The company completed the HCB Financial Corp. acquisition on July 1, 2026, adding $366.7 million of loans and $543.5 million of deposits.
  • Non-performing loans totaled $39.2 million, or 0.80% of total portfolio loans, and the provision for credit losses was $4.8 million.
  • Management expects about $3 million of remaining merger and conversion costs, mostly in the fourth quarter, with the Highpoint conversion set for November 9, 2026.

Independent Bank Corporation (NASDAQ: IBCP) shares were trading at USD 36.48 on October 27, 2026, down 1.43%, with a relative volume at time of 2.17. The Michigan bank holding company completed its acquisition of HCB Financial Corp., the parent of Highpoint Community Bank, on July 1, 2026, paid a $0.28 per share dividend on August 14, 2026, and reported third quarter 2026 results on October 27.

Independent Bank Corporation is incorporated in Michigan and has its principal executive office at 98 Ottawa Ave NW in Grand Rapids, Michigan. It operates through Independent Bank and Highpoint Community Bank, providing banking services to customers in Michigan markets, including mortgage lending and servicing and a wealth management business. Management said on the call that the company opened its new Grand Rapids headquarters in the third quarter.

Third Quarter 2026 Results

Net income was $17.9 million, or $0.80 per diluted share, compared with $17.5 million, or $0.84 per diluted share, in the prior-year period. Excluding after-tax merger-related expenses of $2.8 million, adjusted net income, a non-GAAP measure, was $20.6 million, or $0.92 per diluted share. Income before income tax was $21.5 million, compared with $22.7 million in the prior quarter.

Net interest income was $55.3 million, an increase of $9.9 million, or 21.8%, from the year-ago period and $7.4 million, or 15.4%, from the second quarter of 2026. Net interest margin was 3.79%, compared with 3.67% in the second quarter, and 3.82% on a fully tax-equivalent basis.

Non-interest income was $15.8 million. Non-interest expenses totaled $44.8 million, compared with $37.8 million in the prior quarter and $34.1 million a year earlier, mainly from the Highpoint merger. Merger-related expenses were $3.5 million. Mortgage loan servicing, net, generated income of $4.1 million.

Credit Quality, Balance Sheet and Capital

The provision for credit losses was an expense of $4.81 million, compared with $2.72 million in the second quarter and $1.99 million in the third quarter of 2025. The company attributed the increase primarily to higher specific reserves on one commercial lending relationship, loan growth and an increase in unfunded commitments.

Non-performing loans totaled $39.2 million, or 0.80% of total portfolio loans, at September 30, 2026, compared with $32.8 million, or 0.74%, at June 30, 2026 and $20.4 million, or 0.48%, at September 30, 2025. The company said four commercial loan relationships were placed on non-accrual status. The allowance for credit losses for loans was $73.7 million, or 1.51% of total portfolio loans, and represented 188.26% of non-performing loans, compared with 306.85% a year earlier.

Total assets were $6.26 billion at September 30, 2026, an increase of $599.8 million from June 30, 2026. Loans, excluding loans held for sale, were $4.90 billion, and deposits were $5.52 billion. Loans grew $116.6 million, or 10.5% annualized, excluding Highpoint loans, and deposits grew $115.8 million, or 9.4% annualized, excluding Highpoint deposits.

Total shareholders' equity was $577.3 million, or 9.22% of total assets, compared with $528.4 million, or 9.33%, at June 30, 2026. Tangible common equity, a non-GAAP measure, was $510.0 million, or $23.10 per share, compared with $24.24 per share at June 30, 2026. Both subsidiary banks were above the well capitalized thresholds based on preliminary ratios.

Integration and Outlook

On the call, management said it expects remaining merger and conversion related expenses of approximately $3 million, primarily in the fourth quarter of 2026. It expects the net interest margin to continue to benefit from asset repricing, partly offset by competitive deposit pricing, and expects cost savings from the Highpoint combination to be largely reflected in its 2027 expense run rate. Management said it had no 2027 expense figure to provide. It also said it expects to continue growing commercial loans at a low double digit rate into 2027.