News Summary
Independent Bank Corp. has delivered impressive second-quarter earnings of $16.9 million, exceeding analysts’ forecasts. However, the bank’s revenue fell short of estimates at $78.2 million, despite a year-over-year increase in loan growth. The bank experienced fluctuations in net interest income and non-interest income, reflecting ongoing market challenges. In addition, the bank’s asset quality and shareholder equity demonstrated healthy growth, with future plans in place to strengthen operations.
Grand Rapids, MI — Independent Bank Corp. (IBCP) has announced strong second-quarter earnings of $16.9 million, surpassing analysts’ expectations, according to a report released on Thursday, July 24, 2025. The earnings per share (EPS) for this quarter were recorded at 81 cents, beating Wall Street’s predicted 78 cents per share.
Despite the solid earnings, the bank’s revenue for the second quarter was reported at $78.2 million, which fell short of estimated forecasts. After accounting for interest expenses, the net revenue was $55.9 million. This marks a decrease in net income from $18.5 million, or $0.88 per share, in the same period last year.
Overall, the bank experienced a 9.0% annualized increase in loans from the previous quarter, though core deposits showed a decrease of 1.4% due to seasonal trends. The net interest income rose by $3.3 million, achieving a total of $44.6 million, which is a 7.9% increase year-over-year and a 2.1% rise from the first quarter of 2025. Furthermore, the bank’s net interest margin improved to 3.58%, up from 3.40% in Q2 2024, and from 3.49% in Q1 2025.
Average interest-earning assets saw an increase to $5.04 billion compared to $4.89 billion in the same quarter last year, although it slightly declined from $5.08 billion in the first quarter of this year. Non-interest income also reflected challenges, decreasing to $11.3 million from $15.2 million in the previous year, primarily due to a prior gain on equity securities.
In terms of mortgage loans, the bank recorded net gains of $1.6 million in Q2 2025, which shows a marginal improvement from $1.3 million in the same quarter last year. However, non-interest expenses have risen slightly, totaling $33.8 million compared to $33.3 million from the previous year. The income tax expense recorded for Q2 2025 was $3.8 million, down from $4.6 million a year earlier.
Asset Quality and Growth
Independent Bank has reported strong asset quality, maintaining 16 basis points of non-performing assets to total assets. The bank also incurred a provision for credit losses amounting to $1.50 million during this quarter.
As of June 30, 2025, total assets stood at approximately $5.42 billion, reflecting an increase of $80.4 million since the end of 2024. The bank’s total deposits reached $4.66 billion, slightly raised by $5.3 million, largely due to increased reciprocal and brokered time deposits. Additionally, the bank’s cash and equivalents increased to $146.2 million from $119.9 million at the end of 2024.
Shareholder Equity and Future Plans
Total shareholders’ equity for Independent Bank rose to $469.3 million by June 30, 2025, accounting for 8.66% of total assets, compared to 8.52% at the end of 2024. The bank is actively maintaining a share repurchase plan that authorizes the purchase of up to 1,100,000 shares through December 31, 2025.
In conjunction with these results, Independent Bank will hold a conference call at 11:00 am ET on July 24, 2025, to discuss the quarterly results in more detail. The bank operates 58 offices across 25 counties in Michigan, offering a diverse range of financial services to its customers.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- GlobeNewswire: Independent Bank Corporation Reports Q2 Earnings
- Wikipedia: Independent Bank Corporation
- Crain’s Grand Rapids: Independent Bank Buys Downtown Building
- Google Search: Independent Bank Corp
- GlobeNewswire: Independent Bank Resources
- Encyclopedia Britannica: Banking
- GlobeNewswire: Independent Bank Announces Earnings Release Date
- Google News: Independent Bank
