Independent Bank Corporation reported third‑quarter 2025 net income of $17.5 million, or $0.84 per diluted share, up 27% from $13.8 million and $0.65 per share in the same quarter last year.
Net interest income rose to $45.4 million, an 8.4% year‑over‑year increase, while the tax‑equivalent net interest margin expanded to 3.54% from 3.37% a year earlier, reflecting a higher margin on a larger asset base.
Loan balances grew 3.2% on a linked‑quarter annualized basis, and total deposits increased 13.0% on a linked‑quarter annualized basis, driven by higher savings and interest‑bearing checking balances.
Non‑interest income totaled $11.9 million, up from $9.5 million a year ago, largely due to mortgage‑banking revenues. Mortgage loan servicing income was $0.1 million, a modest gain compared to the prior year quarter. Net charge‑offs were $0.73 million versus $0.31 million in the prior year.
The allowance for credit losses stood at 1.49% of total loans, up from 1.47% at year‑end 2024. Total assets reached $5.49 billion, up $155 million from December 31, 2024, with loans excluding those held for sale at $4.20 billion and deposits at $4.86 billion.
Tangible common equity per share rose to $22.29 from $20.33. The company repurchased 266,008 shares for $7.77 million during the quarter, and a $40 million floating subordinated note was redeemed on August 31, 2025, without materially affecting capital or liquidity.
IBCP declared a quarterly cash dividend of $0.26 per share, payable on November 14, 2025. CEO John Doe said the company remains focused on strengthening its balance sheet and delivering value to shareholders. Earnings per share met consensus estimates of $0.84, while revenue net of interest expense fell short of forecasts. The decline in mortgage servicing income was partly due to the sale of approximately $931 million of mortgage servicing rights on January 31, 2025. The company expects Q4 2025 net interest income to continue rising as interest rates remain elevated.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.