v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Independent Bank Corporation is a bank holding company, whose principal activity is the ownership and management of its wholly-owned subsidiaries, including Independent Bank. As a community-oriented financial institution, substantially all of our operations involve the delivery of loan and deposit products to customers.
We have one reportable segment which is determined by the Chief Executive Officer, who is the designated chief operating decision maker, based upon information provided about the products and services we offer, primarily banking operations. The segment is also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business, which are then aggregated if the operating performance, products/services, and customers are similar. The chief operating decision maker will evaluate the performance of our business components such as evaluating revenue streams, significant expenses, and budget to actual results assessing our segment and in the determination of allocating resources. The chief operating decision maker uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The chief operating decision maker uses consolidated net income, earnings per share, and return on average assets to benchmark us against our competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessing performance and in establishing compensation. Loans, investments, and deposits provide the majority of revenues in the banking operation. Interest expense, provisions for credit losses, and compensation and employee benefits provide the significant expenses in the banking operation. All operations are domestic.
Segment performance is evaluated using consolidated net income, earnings per share, and return on average assets. Information reported internally for performance assessment by the chief operating decision maker is as follows, inclusive of reconciliations of significant segment totals to the interim condensed consolidated financial statements for the three and six month periods ended June 30, 2025 and 2024.
Three Months Ended June 30, 2025
Independent Bank
Other(1)
Eliminations
Total
(In thousands)
INTEREST INCOME
Interest and fees on loans$59,457 $— $78 $59,535 
Interest on securities6,569 — — 6,569 
Other investments774 370 (370)774 
Total Interest Income66,800 370 (292)66,878 
INTEREST EXPENSE
Deposits20,832 — (370)20,462 
Other borrowings and subordinated debt and debentures303 1,498 — 1,801 
Total Interest Expense21,135 1,498 (370)22,263 
Net Interest Income45,665 (1,128)78 44,615 
Provision for credit losses1,500 — — 1,500 
Net Interest Income After Provision for Credit Losses44,165 (1,128)78 43,115 
NON-INTEREST INCOME
Interchange income
3,390 — — 3,390 
Service charges on deposit accounts
2,981 — — 2,981 
Net gains on mortgage loans
1,583 — 48 1,631 
Mortgage loan servicing, net490 — — 490 
Other2,725 309 (201)2,833 
Total Non-interest Income11,169 309 (153)11,325 
NON-INTEREST EXPENSE
Compensation and employee benefits21,021 133 (31)21,123 
Data processing3,828 19 — 3,847 
Occupancy, net2,040 6 — 2,046 
Interchange expense1,177 — — 1,177 
Furniture, fixtures and equipment793 — — 793 
Advertising831 2 — 833 
FDIC deposit insurance637 — — 637 
Legal and professional423 77 — 500 
Loan and collection744 — — 744 
Communications465 5 — 470 
Other1,393 199 — 1,592 
Total Non-interest Expense33,352 441 (31)33,762 
Income Before Income Tax21,982 (1,260)(44)20,678 
Income tax expense4,156 (346)(9)3,801 
Net Income$17,826 $(914)$(35)$16,877 
OTHER SEGMENT DISCLOSURES
Depreciation
1,356 — — 1,356 
Amortization
122 — — 122 
Total assets
5,411,119 562,462 (555,062)5,418,519 
(1)    Includes amounts relating to our parent company and certain insignificant operations.
Three Months Ended June 30, 2024
Independent Bank
Other(1)
Eliminations
Total
(In thousands)
INTEREST INCOME
Interest and fees on loans$56,718 $— $68 $56,786 
Interest on securities8,113 — — 8,113 
Other investments1,439 435 (435)1,439 
Total Interest Income66,270 435 (367)66,338 
INTEREST EXPENSE
Deposits23,311 — (435)22,876 
Other borrowings and subordinated debt and debentures655 1,461 — 2,116 
Total Interest Expense23,966 1,461 (435)24,992 
Net Interest Income42,304 (1,026)68 41,346 
Provision for credit losses19 — — 19 
Net Interest Income After Provision for Credit Losses42,285 (1,026)68 41,327 
NON-INTEREST INCOME
Interchange income
3,401 — — 3,401 
Service charges on deposit accounts
2,937 — — 2,937 
Net gains on mortgage loans
1,306 — 27 1,333 
Mortgage loan servicing, net2,091 — — 2,091 
Other5,307 264 (161)5,410 
Total Non-interest Income15,042 264 (134)15,172 
NON-INTEREST EXPENSE
Compensation and employee benefits21,164 113 (26)21,251 
Data processing3,240 17 — 3,257 
Occupancy, net1,880 6 — 1,886 
Interchange expense1,127 — — 1,127 
Furniture, fixtures and equipment947 1 — 948 
Advertising785 3 — 788 
FDIC deposit insurance695 — — 695 
Legal and professional472 72 — 544 
Loan and collection699 — — 699 
Communications493 6 — 499 
Other1,449 190 — 1,639 
Total Non-interest Expense32,951 408 (26)33,333 
Income Before Income Tax24,376 (1,170)(40)23,166 
Income tax expense4,913 (265)(10)4,638 
Net Income$19,463 $(905)$(30)$18,528 
OTHER SEGMENT DISCLOSURES
Depreciation
1,305 1 — 1,306 
Amortization
129 — — 129 
Total assets
5,273,093 518,845 (514,438)5,277,500 
(1)    Includes amounts relating to our parent company and certain insignificant operations.
Six Months Ended June 30, 2025
Independent Bank
Other(1)
Eliminations
Total
(In thousands)
INTEREST INCOME
Interest and fees on loans$117,165 $— $138 $117,303 
Interest on securities13,375 — — 13,375 
Other investments2,344 739 (739)2,344 
Total Interest Income132,884 739 (601)133,022 
INTEREST EXPENSE
Deposits42,156 — (739)41,417 
Other borrowings and subordinated debt and debentures446 2,859 — 3,305 
Total Interest Expense42,602 2,859 (739)44,722 
Net Interest Income90,282 (2,120)138 88,300 
Provision for credit losses2,221 — — 2,221 
Net Interest Income After Provision for Credit Losses88,061 (2,120)138 86,079 
NON-INTEREST INCOME
Interchange income
6,517 — — 6,517 
Service charges on deposit accounts
5,795 — — 5,795 
Net gains on mortgage loans
3,806 — 128 3,934 
Mortgage loan servicing, net(146)— — (146)
Other5,419 628 (398)5,649 
Total Non-interest Income21,391 628 (270)21,749 
NON-INTEREST EXPENSE
Compensation and employee benefits41,313 265 (72)41,506 
Data processing7,538 38 — 7,576 
Occupancy, net4,257 12 — 4,269 
Interchange expense2,296 — — 2,296 
Furniture, fixtures and equipment1,677 1 — 1,678 
Advertising1,690 4 — 1,694 
FDIC deposit insurance1,348 — — 1,348 
Legal and professional779 200 — 979 
Loan and collection1,530 — — 1,530 
Communications1,047 14 — 1,061 
Other3,694 393 — 4,087 
Total Non-interest Expense67,169 927 (72)68,024 
Income Before Income Tax42,283 (2,419)(60)39,804 
Income tax expense8,110 (760)(13)7,337 
Net Income$34,173 $(1,659)$(47)$32,467 
OTHER SEGMENT DISCLOSURES
Depreciation
2,596 1 — 2,597 
Amortization
244 — — 244 
Total assets
5,411,119 562,462 (555,062)5,418,519 
(1)    Includes amounts relating to our parent company and certain insignificant operations.
Six Months Ended June 30, 2024
Independent Bank
Other(1)
Eliminations
Total
(In thousands)
INTEREST INCOME
Interest and fees on loans$111,705 $— $124 $111,829 
Interest on securities16,755 — — 16,755 
Other investments2,880 833 (833)2,880 
Total Interest Income131,340 833 (709)131,464 
INTEREST EXPENSE
Deposits46,519 — (833)45,686 
Other borrowings and subordinated debt and debentures1,304 2,931 — 4,235 
Total Interest Expense47,823 2,931 (833)49,921 
Net Interest Income83,517 (2,098)124 81,543 
Provision for credit losses763 — — 763 
Net Interest Income After Provision for Credit Losses82,754 (2,098)124 80,780 
NON-INTEREST INCOME
Interchange income
6,552 — — 6,552 
Service charges on deposit accounts
5,809 — — 5,809 
Net gains on mortgage loans
2,625 — 72 2,697 
Mortgage loan servicing, net4,816 — — 4,816 
Other7,667 479 (287)7,859 
Total Non-interest Income27,469 479 (215)27,733 
NON-INTEREST EXPENSE
Compensation and employee benefits41,844 227 (50)42,021 
Data processing6,476 36 — 6,512 
Occupancy, net3,948 012 — 3,960 
Interchange expense2,224 — — 2,224 
Furniture, fixtures and equipment1,900 2 — 1,902 
Advertising1,274 5 — 1,279 
FDIC deposit insurance1,477 — — 1,477 
Legal and professional810 220 — 1,030 
Loan and collection1,211 — — 1,211 
Communications1,103 11 — 1,114 
Other2,418 378 — 2,796 
Total Non-interest Expense64,685 891 (50)65,526 
Income Before Income Tax45,538 (2,510)(41)42,987 
Income tax expense9,040 (563)(9)8,468 
Net Income$36,498 $(1,947)$(32)$34,519 
OTHER SEGMENT DISCLOSURES
Depreciation
2,596 2 — 2,598 
Amortization
258 — — 258 
Total assets
5,273,093 518,845 (514,438)5,277,500 
(1)    Includes amounts relating to our parent company and certain insignificant operations.