Cautionary note regarding

2

forward-looking statements

This presentation contains forward-looking statements about Independent Bank Corporation. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of Independent Bank Corporation. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. The COVID-19 pandemic is adversely affecting Independent Bank Corporation, its customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect Independent Bank Corporation's revenues and the values of its assets and liabilities, reduce the availability of funding from certain financial institutions, lead to a tightening of credit, and increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices could affect Independent Bank Corporation in substantial and unpredictable ways. Independent Bank Corporation's results could also be adversely affected by changes in interest rates; further increases in unemployment rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of its investment securities; legal and regulatory developments; litigation; increased competition from both banks and non-banks; changes in the level of tariffs and other trade policies of the United States and its global trading partners; changes in customer behavior and preferences; breaches in data security; failures to safeguard personal information; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management's ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk.

Certain risks and important factors that could affect Independent Bank Corporation's future results are identified in its Annual Report on Form 10-K for the year ended December 31, 2020 and other reports filed with the SEC, including among other things under the heading "Risk Factors" in such Annual Report on Form 10-K. Any forward-looking statement speaks only as of the date on which it is made, and Independent Bank Corporation undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise.

Agenda

3

  • Formal Remarks.
    • William B. (Brad) Kessel, President and Chief Executive Officer
    • Gavin A. Mohr, Executive Vice President and Chief Financial Officer
  • Question and Answer session.
  • Closing Remarks.

Note: This presentation is available at www.IndependentBank.comin the Investor Relations area under the "Presentations" tab.

Historical Financial Data

4

Year Ended December 31,

Quarter Ended

($M except per share data)

2017

2018

2019

2020

6/30/20

9/30/20

12/31/20

3/31/21

6/30/21

Balance Sheet:

$2,789

$3,353

$3,565

$4,204

$4,043

$4,169

$4,204

$4,426

$4,461

Total Assets

Portfolio Loans

$2,019

$2,583

$2,725

$2,734

$2,867

$2,855

$2,734

$2,784

$2,815

Deposits

$2,401

$2,913

$3,037

$3,637

$3,485

$3,598

$3,637

$3,859

$3,862

Tangible Common Equity

$263

$304

$317

$357

$322

$340

$357

$355

$364

Profitability:

$39.6

$50.6

$58.6

$81.9

$23.5

$25.3

$20.6

$26.7

$13.6

Pre-Tax,Pre-Provision Income

Pre-Tax,Pre-Prov. / Avg. Assets

1.50%

1.62%

1.70%

2.08%

2.44%

2.46%

1.98%

2.54%

1.23%

Net Income

$20.5

$39.8

$46.4

$56.2

$14.8

$19.6

$17.0

$22.0

$12.4

Return on Average Assets

0.77%

1.27%

1.35%

1.43%

1.54%

1.90%

1.61%

2.10%

1.12%

Return on Average Equity

7.8%

12.4%

13.6%

15.7%

17.4%

21.4%

17.8%

23.5%

12.8%

Net Interest Margin (FTE)

3.65%

3.88%

3.80%

3.34%

3.36%

3.31%

3.12%

3.05%

3.02%

Efficiency Ratio

69.2%

67.2%

64.9%

59.2%

53.1%

56.4%

60.6%

53.5%

69.2%

Asset Quality:

0.35%

0.29%

0.32%

0.21%

0.34%

0.28%

0.21%

0.17%

0.12%

NPAs / Assets

NPAs / Loans + OREO

0.49%

0.38%

0.42%

0.32%

0.48%

0.41%

0.32%

0.27%

0.19%

Reserves / Total Portfolio Loans

1.12%

0.96%

0.96%

1.30%

1.20%

1.25%

1.30%

1.68%

1.63%

NCOs / Avg. Loans

(0.06%)

(0.03%)

(0.02%)

0.11%

0.45%

(0.04%)

(0.02%)

(0.01%)

(0.09%)

Capital Ratios:

9.4%

9.2%

9.0%

8.6%

8.0%

8.2%

8.6%

8.1%

8.2%

TCE Ratio

Leverage Ratio

10.6%

10.5%

10.1%

9.2%

9.1%

9.0%

9.2%

9.3%

9.0%

Tier 1 Capital Ratio

14.0%

13.3%

12.7%

13.3%

12.6%

13.0%

13.3%

13.2%

12.9%

Total Capital Ratio

15.2%

14.3%

13.7%

16.0%

15.3%

15.6%

16.0%

15.8%

15.5%

2Q 2021 Financial Highlights

5

Income Statement

  • Pre-tax,pre-provision income of $13.6 million compared to $23.5 million in the year ago quarter.
  • Net income of $12.4 million, or $0.56 per diluted share compared to $14.8 million, or $0.67 per diluted share in the year ago quarter.
  • Net interest income of $31.4 million, compared to $30.5 million, in the year ago quarter.
  • Mortgage loan originations of $473.7 million, also, $306.8 million in mortgage loans sold with $9.1 million in net gains on mortgage loans compared to $17.6 million in net gains in the year ago quarter.
  • Mortgage servicing rights change (the "MSR Change") due to price of a negative $2.4 million ($0.09 per diluted share, after taxes) compared to a negative $2.9 million ($0.10 per diluted share, after taxes) in the year ago quarter.
  • Provision for credit losses credit of $1.4 million compared to an expense of $5.2 million in the year ago quarter.

Balance Sheet/Capital

  • Securities available for sale increased by $83.4 million.
  • Total portfolio loans increased by $30.3 million.
  • Total deposits grew by $3.9 million.
  • Paid a 21 cent per share cash dividend on common stock on May 14, 2021.

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Independent Bank Corporation published this content on 29 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 12:08:07 UTC.