Raymond James Investor Presentation: Independent Bank Corp. Q2 2025 Results

Independent Bank Corp. reported Q2 2025 results, with total assets of $20.0 billion, loans of $15.9 billion, and deposits of $7.4 billion. The company's wealth AUA was $3.6 billion, and its market cap was $25.0 billion as of August 28, 2025.

Independent Bank Corporation (INDB) has reported its second-quarter 2025 earnings, showcasing resilience and growth despite some headwinds. The company reported a net income of $16.9 million, down from $18.5 million in the same period last year, primarily due to a loss of $0.2 million on fair value changes in mortgage loan servicing rights (MSRs) [1].

Key highlights include:
- Loan Growth: INDB experienced annualized growth of 9% in Q2 2025, driven by strong commercial loan growth of $75.8 million, representing 15.3% annualized growth. Residential mortgage loans grew by $15.6 million.
- Deposit Trends: Total deposits stood at $4.7 billion as of June 30, 2025. Core deposits decreased by $15.7 million, with retail deposits down $13.8 million and business deposits up $60.5 million.
- Net Interest Margin (NIM): The company's NIM expanded to 3.58% in Q2 2025, up 18 basis points from the previous year, primarily due to a decrease in funding costs and changes in earning asset yield and mix.
- Credit Quality: Despite market uncertainty, INDB maintained strong credit quality with nonperforming loans (NPLs) at 20 basis points of total loans and net charge-offs at 2 basis points annualized.

The company's strategic focus on talent, technology, and expanding product offerings has been evident. In Q2 2025, INDB added 3 experienced commercial bankers, launched a new Loan Production Office in Kalamazoo, and rolled out new technologies, including an AI chat function. These investments are aimed at enhancing customer experience and driving growth.

INDB's market dynamics and competitive landscape indicate a strong position, with the company gaining market share from larger regional banks. The company's commercial real estate (CRE) strategy sees opportunities in CMBS maturities and specific segments like medical office buildings. The Michigan economy, particularly in West Michigan and Metro Detroit, continues to show resilience.

Risks and challenges include economic uncertainty, regulatory environment changes, and deposit trends. However, INDB remains confident in its outlook, expecting continued loan growth and a stable net interest margin.

INDB's total assets stood at $20.0 billion, loans at $15.9 billion, and deposits at $7.4 billion as of August 28, 2025. The company's wealth AUA was $3.6 billion, and its market cap was $25.0 billion.

References:
[1] https://www.datainsightsmarket.com/companies/IBCP