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1. Company Snapshot

1.a. Company Description

Independent Bank Corporation operates as the bank holding company for Independent Bank that provides various banking services to individuals and businesses.The company offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services, as well as automatic teller machine, and Internet and mobile banking services.It also provides title insurance, insurance brokerage, and investment services.


The company offers its services through approximately 59 branches, two drive-thru facilities, and seven loan production offices in Michigan; and two loan production offices in Ohio.Independent Bank Corporation was founded in 1864 and is based in Grand Rapids, Michigan.

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1.b. Last Insights on IBCP

Independent Bank Corporation's recent performance was positively driven by its Q4 2025 earnings report, which showed net income of $18.6 million, or $0.89 per diluted share. The company's board also authorized a 5% stock repurchase plan, indicating confidence in its financials. Additionally, the company announced a 7.7% increase in quarterly cash dividend on common stock to $0.28 per share. These developments suggest a stable financial position and commitment to shareholder value. The appointment of Michael J. Stodolak as Executive Vice President, Retail Banking, also brings new leadership to drive growth.

1.c. Company Highlights

2. Independent Bank Corporation Delivers Strong 2025 Results

Independent Bank Corporation reported a net income of $18.6 million or $0.89 per diluted share for the fourth quarter of 2025, compared to $18.5 million or $0.87 per diluted share in the prior year period. For the full year 2025, the company reported net income of $68.5 million or $3.27 per diluted share, up from $66.8 million or $3.16 per diluted share in 2024. The company's net interest income grew by 2.2% to support the increase in net income. The actual EPS of $0.891 beat estimates of $0.83. The net interest margin was 3.62%, and the return on average assets and return on average equity were 1.35% and 14.75%, respectively.

Publication Date: Jan -23

📋 Highlights
  • Year-Over-Year Net Income Growth:: 2025 net income rose to $68.5M ($3.27/share) vs. $66.8M ($3.16/share) in 2024, driven by 2.2% net interest income growth.
  • Commercial Loan Expansion:: Loan portfolio grew $237M (5.9%) in 2025, with commercial loans surging $276M (14.2%), supported by adding five bankers.
  • Margin and Profitability Metrics:: 2025 net interest margin stabilized at 3.62%, with ROA/ROE of 1.35%/14.75%, and 2026 margin expansion projected at 5–7 bps in Q1 and 3–5 bps quarterly thereafter.
  • Capital Management:: Tangible common equity ratio increased to 8.65%, with $0.26/share dividend and 5% share repurchase authorization in 2026.
  • 2026 Outlook:: Loan growth of 4.5–5.5%, 7–8% net interest income growth, and 20–25 bps credit loss provision expense on loans.

Loan Growth and Credit Quality

The company's loan portfolio grew by $237 million or 5.9% in 2025, driven by commercial portfolio growth of $276 million or 14.2%. The company added a net of five experienced bankers to the team in 2025 and expects continued low double-digit growth of its commercial loan portfolio in 2026. Credit quality metrics remain positive, with watch credits and nonperforming assets below historic averages. The company expects loan growth in the mid-single-digit range in 2026, targeting a full-year growth rate of 4.5% to 5.5%.

Outlook and Guidance

The company expects net interest income growth of 7 to 8% over 2025, driven by a net interest margin expansion of 5 to 7 basis points in the first quarter of 2026 and successive quarterly increases of 3 to 5 basis points. The company forecasts a provision expense for allowance for credit losses of approximately 20 to 25 basis points of average portfolio loans for the full year 2026. Noninterest income is estimated to be in the range of $11.3 million to $12.3 million quarterly, with a total for the year expected to increase 3 to 4% compared to 2025.

Valuation

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 1.49, and a Dividend Yield of 2.94%, the stock appears to be reasonably valued. Analysts estimate next year's revenue growth at 5.1%. The company's return on average equity of 14.75% and return on average assets of 1.35% are also noteworthy. The outlook for 2026 appears positive, driven by loan growth and net interest income expansion.

3. NewsRoom

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Independent Bank Corporation (IBCP) Q4 2025 Earnings Call Transcript

Jan -22

Source: seekingalpha.com

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Compared to Estimates, Independent Bank (IBCP) Q4 Earnings: A Look at Key Metrics

Jan -22

Source: zacks.com

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Independent Bank Corporation Reports Fourth Quarter Earnings Of $0.89 Per Diluted Share; Board Authorizes 5% Stock Repurchase Plan

Jan -22

Source: globenewswire.com

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Exploring Analyst Estimates for Independent Bank (IBCP) Q4 Earnings, Beyond Revenue and EPS

Jan -21

Source: zacks.com

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Independent Bank Corporation Announces 7.7% Increase in Quarterly Cash Dividend on Common Stock

Jan -16

Source: globenewswire.com

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Head to Head Analysis: QCR (NASDAQ:QCRH) and Independent Bank (NASDAQ:IBCP)

Jan -11

Source: defenseworld.net

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Independent Bank Corporation $IBCP Shares Sold by Allspring Global Investments Holdings LLC

Jan -07

Source: defenseworld.net

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Independent Bank Corporation Announces Appointment of Michael J. Stodolak as Executive Vice President Retail Banking following the Retirement of Russ Daniel

Jan -02

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.77%)

6. Segments

Commercial Banking

Expected Growth: 4.77%

Independent Bank Corporation's 4.77% growth in Commercial Banking is driven by a strong loan portfolio expansion, fueled by a robust economy and increased demand for commercial real estate loans. Additionally, strategic investments in digital banking platforms and a focus on customer relationships have contributed to deposit growth and improved operating efficiency.

7. Detailed Products

Personal Banking

Independent Bank Corporation offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment services.

Business Banking

The company provides business banking services, including commercial loans, cash management, and treasury management solutions, to help businesses grow and succeed.

Mortgage Lending

Independent Bank Corporation offers a range of mortgage lending products, including fixed-rate and adjustable-rate mortgages, to help individuals and families achieve homeownership.

Wealth Management

The company provides wealth management services, including investment management, trust services, and financial planning, to help individuals and families achieve their long-term financial goals.

Insurance Services

Independent Bank Corporation offers insurance services, including life insurance, disability insurance, and long-term care insurance, to help individuals and families protect their financial well-being.

8. Independent Bank Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Independent Bank Corporation operates in a highly competitive market with many substitutes, but its strong brand and customer loyalty mitigate the threat.

Bargaining Power Of Customers

Independent Bank Corporation's customers have significant bargaining power due to the availability of alternative banking services and the ease of switching banks.

Bargaining Power Of Suppliers

Independent Bank Corporation has a diverse supplier base, and its suppliers have limited bargaining power due to the availability of alternative suppliers.

Threat Of New Entrants

While there are barriers to entry in the banking industry, new entrants can still pose a threat to Independent Bank Corporation, particularly from fintech companies and digital banks.

Intensity Of Rivalry

Independent Bank Corporation operates in a highly competitive market with many established players, leading to intense rivalry and competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 24.38%
Debt Cost 7.68%
Equity Weight 75.62%
Equity Cost 8.79%
WACC 8.52%
Leverage 32.24%

11. Quality Control: Independent Bank Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
First Financial

A-Score: 6.9/10

Value: 7.0

Growth: 5.4

Quality: 6.2

Yield: 6.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Independent Bank

A-Score: 6.6/10

Value: 7.0

Growth: 6.9

Quality: 7.8

Yield: 7.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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Oriental

A-Score: 6.4/10

Value: 7.0

Growth: 7.2

Quality: 7.1

Yield: 5.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Peoples Bancorp of North Carolina

A-Score: 6.1/10

Value: 6.7

Growth: 6.4

Quality: 6.6

Yield: 6.0

Momentum: 4.5

Volatility: 6.3

1-Year Total Return ->

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Orrstown Financial Services

A-Score: 6.0/10

Value: 6.4

Growth: 5.0

Quality: 6.9

Yield: 6.0

Momentum: 3.5

Volatility: 8.0

1-Year Total Return ->

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Chemung Financial

A-Score: 5.7/10

Value: 5.5

Growth: 5.6

Quality: 5.2

Yield: 5.0

Momentum: 5.5

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.32$

Current Price

36.32$

Potential

-0.00%

Expected Cash-Flows