Independent Bank Corporation Reports 2026 First Quarter Earnings of $0.81 Per Diluted Share
Rhea-AI Summary
Independent Bank Corporation (NASDAQ: IBCP) reported Q1 2026 net income of $16.9 million, or $0.81 per diluted share, versus $15.6 million, or $0.74, year-over-year. Key metrics: net interest income of $46.9 million, net interest margin of 3.65%, core deposit growth of $80.4 million, and tangible common equity per share of $23.38.
Positive
- Net income of $16.9 million (Q1 2026)
- EPS of $0.81 per diluted share
- Net interest income $46.9M, +7.3% YoY
- Net interest margin expanded to 3.65%
- Core deposit growth of $80.4M from 12/31/2025
- Tangible common equity per share $23.38
Negative
- Non-interest expense increased to $38.3M (from $34.3M)
- Litigation expense of $1.5M recorded in the quarter
- Total non-performing loans rose to $27.6M and ratio to 0.64%
News Market Reaction – IBCP
In the Apr 23 session, IBCP declined 0.98%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 21 | Dividend declaration | Neutral | -2.6% | Announcement of regular quarterly cash dividend of $0.28 per share. |
| Mar 31 | Earnings date set | Neutral | +1.7% | Scheduled Q1 2026 earnings release and conference call details. |
| Mar 18 | Merger announcement | Positive | +0.8% | Definitive merger agreement to acquire HCB Financial Corp. in cash-stock deal. |
| Jan 22 | Earnings and buyback | Positive | +1.0% | Q4 2025 earnings, strong FY 2025 results and approval of 5% repurchase plan. |
| Jan 16 | Dividend increase | Positive | +0.0% | 7.7% increase in quarterly dividend to $0.28 per share. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news often skews positive (earnings, M&A, dividend actions), with generally modest positive price responses, though dividend headlines alone have produced flat to negative next-day moves.
Over the past several months, Independent Bank Corporation has highlighted steady fundamentals and shareholder returns. A Q4 2025 earnings beat and new 5% repurchase plan coincided with positive price reaction. The March $70.2M HCB Financial merger announcement also saw gains, underscoring investor support for strategic expansion. Dividend increases to $0.28 per share and subsequent regular dividend declarations show a consistent capital return story. Today’s Q1 2026 earnings build directly on that trajectory of disciplined growth, sound credit, and capital strength.
Key Terms
net interest margin financial
tangible common equity financial
return on average assets financial
return on average equity financial
non-performing loans financial
allowance for credit losses financial
mortgage loan servicing rights financial
brokered time deposits financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
GRAND RAPIDS, Mich., April 23, 2026 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ: IBCP) reported first quarter 2026 net income of
Highlights for the first quarter of 2026 include:
- A net interest margin of
3.65% (three basis point increase from the linked quarter); - Increase in net interest income of
$0.5 million (or1.1% ) over the fourth quarter of 2025; - Increase in tangible common equity per share of common stock of
$0.33 (or5.9% annualized) from December 31, 2025; - A return on average assets and a return on average equity of
1.24% and13.43% , respectively; - Net growth in total deposits, less brokered time deposits, of
$80.4 million (or6.9% annualized) from December 31, 2025; - Net growth in loans of
$31.8 million (or3.0% annualized) from December 31, 2025; - An increase in the tangible common equity ratio to
8.7% ; and - The payment of a
$0.28 per share quarterly dividend on common stock on February 13, 2026.
William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “Our first quarter results reflect the strength of our core fundamentals, including growth in net interest income, expansion in our net interest margin to
Significant items impacting comparable first quarter 2026 and 2025 results include the following:
- Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of
$0.9 million ($0.04 per diluted share, after taxes) for the three-month period ended March 31, 2026, as compared to$(1.5) million ($(0.06) per diluted share, after taxes) for the three-month period ended March 31, 2025.
Operating Results
The Company’s net interest income totaled
Non-interest income totaled
Net gains on mortgage loans in the first quarters of 2026 and 2025 were approximately
Mortgage loan servicing, net, generated income (expense) of
Mortgage loan servicing, net activity is summarized in the following table:
| Three months ended | |||||||
| 3/31/2026 | 3/31/2025 | ||||||
| (In thousands) | |||||||
| Mortgage loan servicing, net: | |||||||
| Revenue, net | $ | 1,636 | $ | 1,882 | |||
| Fair value change due to price | 933 | (1,533 | ) | ||||
| Fair value change due to pay-downs | (923 | ) | (891 | ) | |||
| Loss on sale of originated servicing rights | $ | — | $ | (94 | ) | ||
| Total | $ | 1,646 | $ | (636 | ) | ||
Non-interest expenses totaled
The Company recorded income tax expense of
Asset Quality
A breakdown of non-performing loans by loan type is as follows (1):
| 3/31/2026 | 12/31/2025 | 3/31/2025 | |||||||||
| Loan Type | (Dollars in thousands) | ||||||||||
| Commercial | $ | 27,077 | $ | 23,531 | $ | 127 | |||||
| Mortgage | 9,953 | 8,683 | 8,080 | ||||||||
| Installment | 745 | 860 | 819 | ||||||||
| Sub total | 37,775 | 33,074 | 9,026 | ||||||||
| Less - government guaranteed loans | 10,202 | 9,947 | 1,940 | ||||||||
| Total non-performing loans | $ | 27,573 | $ | 23,127 | $ | 7,086 | |||||
| Ratio of non-performing loans to total portfolio loans | 0.64 | % | 0.54 | % | 0.17 | % | |||||
| Ratio of non-performing assets to total assets | 0.51 | % | 0.44 | % | 0.14 | % | |||||
| Ratio of allowance for credit losses to total non-performing loans | 231.09 | % | 274.33 | % | 847.23 | % | |||||
(1) Non performing loans include non-accrual loans and loans 90 days or more past due and still accruing interest.
The provision for credit losses was an expense of
Balance Sheet, Capital and Liquidity
Total assets were
Cash and cash equivalents totaled
Total shareholders’ equity was
The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:
| Regulatory Capital Ratios | 3/31/2026 | 12/31/2025 | Well Capitalized Minimum | |||||
| Tier 1 capital to average total assets | 9.43 | % | 9.36 | % | 5.00 | % | ||
| Common equity tier 1 capital to risk-weighted assets | 11.43 | % | 11.24 | % | 6.50 | % | ||
| Tier 1 capital to risk-weighted assets | 11.43 | % | 11.24 | % | 8.00 | % | ||
| Total capital to risk-weighted assets | 12.68 | % | 12.49 | % | 10.00 | % | ||
At March 31, 2026, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately
Share Repurchase Plan
On December 16, 2025, the Board of Directors of the Company authorized the 2026 share repurchase plan. Under the terms of the 2026 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately
Earnings Conference Call
Brad Kessel, President and CEO, Gavin Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, April 23, 2026.
To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: https://register-conf.media-server.com/register/BId259863bf9e8463883aeddb939de1580.
In order to view the webcast and presentation slides, please go to https://edge.media-server.com/mmc/p/989vrdc9 during the time of the call. A replay of the webcast will be available until April 23, 2027.
About Independent Bank Corporation
Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately
For more information, please visit our Web site at: IndependentBank.com.
Forward-Looking Statements
This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plans and prospects.
Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. For example, deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding to us, lead to a tightening of credit, and increase stock price volatility. Our results could also be adversely affected by changes in interest rates; increases in unemployment rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of our investment securities; the outcome of pending litigation; legal and regulatory developments; changes in customer behavior and preferences; breaches in data security; and management’s ability to effectively manage the multitude of risks facing our business. Key risk factors that could affect our future results are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2025 and the other reports we file with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of our future results.
In addition, this release contains forward-looking statements regarding the proposed merger with HCB Financial Corp. ("HCB"). Important factors that could cause actual results to differ materially from those anticipated include: the risk that the merger may not be completed in a timely manner or at all; the failure to satisfy the conditions to the completion of the merger, including the receipt of all required regulatory and shareholder approvals; the occurrence of any event, change, or other circumstance that could give rise to the right of one or both parties to terminate the merger agreement; the risk that the anticipated benefits and cost savings of the merger may not be fully realized or may take longer to realize than expected; the risk of business disruption during the pendency of the merger; diversion of management's attention from ongoing business operations; the risk that the integration of HCB's operations with ours will be materially delayed or will be more costly or difficult than expected; and the potential for reputational risk related to the merger and integration.
Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
Additional Information and Where to Find It
In connection with the proposed acquisition of HCB, we expect to file with the SEC a registration statement on Form S-4 that will include a preliminary proxy statement of HCB and a preliminary prospectus of Independent Bank Corporation. Shareholders are urged to read the proxy statement/prospectus when it becomes available because it will contain important information about the proposed transaction. Free copies of these documents, when available, may be obtained at the SEC’s website (www.sec.gov) or upon written request to Independent Bank Corporation, 4200 East Beltline, Grand Rapids, MI 49525, Attention: Investor Relations, or HCB Financial Corp., 150 West Court Street, Hastings, MI 49058, Attention: Amanda Belcher-Currier, CFO. A final proxy statement/prospectus will be mailed to the shareholders of HCB.
No Offer or Solicitation
This communication is not an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
| INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Financial Condition | |||||||
| March 31, 2026 | December 31, 2025 | ||||||
| (Unaudited) | |||||||
| (In thousands, except share amounts) | |||||||
| Assets | |||||||
| Cash and due from banks | $ | 48,475 | $ | 52,235 | |||
| Interest bearing deposits | 126,440 | 86,152 | |||||
| Cash and Cash Equivalents | 174,915 | 138,387 | |||||
| Securities available for sale | 482,295 | 495,909 | |||||
| Securities held to maturity (fair value of | 301,007 | 309,523 | |||||
| Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 18,102 | 18,102 | |||||
| Loans held for sale, carried at fair value | 19,714 | 9,031 | |||||
| Loans | |||||||
| Commercial | 2,267,369 | 2,213,557 | |||||
| Mortgage | 1,520,358 | 1,524,821 | |||||
| Installment | 520,372 | 537,907 | |||||
| Total Loans | 4,308,099 | 4,276,285 | |||||
| Allowance for credit losses | (63,719 | ) | (63,445 | ) | |||
| Net Loans | 4,244,380 | 4,212,840 | |||||
| Other real estate and repossessed assets, net | 767 | 896 | |||||
| Property and equipment, net | 42,319 | 38,972 | |||||
| Bank-owned life insurance | 54,072 | 53,750 | |||||
| Capitalized mortgage loan servicing rights, carried at fair value | 32,233 | 31,493 | |||||
| Other intangibles, net | 886 | 1,001 | |||||
| Goodwill | 28,300 | 28,300 | |||||
| Accrued income and other assets | 158,519 | 167,516 | |||||
| Total Assets | $ | 5,557,509 | $ | 5,505,720 | |||
| Liabilities and Shareholders' Equity | |||||||
| Deposits | |||||||
| Non-interest bearing | $ | 991,140 | $ | 991,984 | |||
| Savings and interest-bearing checking | 2,146,403 | 2,113,260 | |||||
| Reciprocal | 1,028,874 | 974,921 | |||||
| Time | 657,043 | 662,858 | |||||
| Brokered time | 57,220 | 18,659 | |||||
| Total Deposits | 4,880,680 | 4,761,682 | |||||
| Other borrowings | 27,010 | 77,003 | |||||
| Subordinated debentures | 39,881 | 39,864 | |||||
| Accrued expenses and other liabilities | 99,385 | 124,220 | |||||
| Total Liabilities | 5,046,956 | 5,002,769 | |||||
| Shareholders’ Equity | |||||||
| Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding | — | — | |||||
| Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 20,585,805 shares at March 31, 2026 and 20,548,893 shares at December 31, 2025 | 307,679 | 307,845 | |||||
| Retained earnings | 263,898 | 252,794 | |||||
| Accumulated other comprehensive loss | (61,024 | ) | (57,688 | ) | |||
| Total Shareholders’ Equity | 510,553 | 502,951 | |||||
| Total Liabilities and Shareholders’ Equity | $ | 5,557,509 | $ | 5,505,720 | |||
| INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||
| (Unaudited) | |||||||||||
| Interest Income | (In thousands, except per share amounts) | ||||||||||
| Interest and fees on loans | $ | 59,249 | $ | 60,205 | $ | 57,768 | |||||
| Interest on securities | |||||||||||
| Taxable | 3,354 | 3,513 | 4,036 | ||||||||
| Tax-exempt | 2,522 | 2,633 | 2,770 | ||||||||
| Other investments | 1,044 | 1,074 | 1,570 | ||||||||
| Total Interest Income | 66,169 | 67,425 | 66,144 | ||||||||
| Interest Expense | |||||||||||
| Deposits | 18,397 | 20,109 | 20,955 | ||||||||
| Other borrowings and subordinated debt and debentures | 917 | 962 | 1,504 | ||||||||
| Total Interest Expense | 19,314 | 21,071 | 22,459 | ||||||||
| Net Interest Income | 46,855 | 46,354 | 43,685 | ||||||||
| Provision for credit losses | 362 | 1,923 | 721 | ||||||||
| Net Interest Income After Provision for Credit Losses | 46,493 | 44,431 | 42,964 | ||||||||
| Non-interest Income | |||||||||||
| Interchange income | 3,234 | 3,186 | 3,127 | ||||||||
| Service charges on deposit accounts | 2,935 | 3,096 | 2,814 | ||||||||
| Net gains (losses) on assets | |||||||||||
| Mortgage loans | 1,308 | 1,372 | 2,303 | ||||||||
| Securities available for sale | (26 | ) | (15 | ) | (330 | ) | |||||
| Mortgage loan servicing, net | 1,646 | 899 | (636 | ) | |||||||
| Other | 2,951 | 3,420 | 3,146 | ||||||||
| Total Non-interest Income | 12,048 | 11,958 | 10,424 | ||||||||
| Non-interest Expense | |||||||||||
| Compensation and employee benefits | 21,829 | 22,563 | 20,383 | ||||||||
| Data processing | 3,952 | 3,428 | 3,729 | ||||||||
| Occupancy, net | 2,413 | 2,171 | 2,223 | ||||||||
| Litigation expense | 1,500 | — | — | ||||||||
| Advertising | 1,210 | 991 | 861 | ||||||||
| Interchange expense | 1,191 | 1,165 | 1,119 | ||||||||
| Furniture, fixtures and equipment | 894 | 897 | 885 | ||||||||
| FDIC deposit insurance | 799 | 861 | 711 | ||||||||
| Loan and collection | 752 | 589 | 786 | ||||||||
| Communications | 593 | 471 | 591 | ||||||||
| Legal and professional | 591 | 787 | 479 | ||||||||
| Merger related expense | 300 | — | — | ||||||||
| Other | 2,287 | 2,155 | 2,495 | ||||||||
| Total Non-interest Expense | 38,311 | 36,078 | 34,262 | ||||||||
| Income Before Income Tax | 20,230 | 20,311 | 19,126 | ||||||||
| Income tax expense | 3,355 | 1,739 | 3,536 | ||||||||
| Net Income | $ | 16,875 | $ | 18,572 | $ | 15,590 | |||||
| Net Income Per Common Share | |||||||||||
| Basic | $ | 0.82 | $ | 0.90 | $ | 0.74 | |||||
| Diluted | $ | 0.81 | $ | 0.89 | $ | 0.74 | |||||
| INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data | |||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||
| (unaudited) | |||||||||||||||||||
| (Dollars in thousands except per share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Net interest income | $ | 46,855 | $ | 46,354 | $ | 45,361 | $ | 44,615 | $ | 43,685 | |||||||||
| Provision for credit losses | 362 | 1,923 | 1,991 | 1,500 | 721 | ||||||||||||||
| Non-interest income | 12,048 | 11,958 | 11,937 | 11,325 | 10,424 | ||||||||||||||
| Non-interest expense | 38,311 | 36,078 | 34,131 | 33,762 | 34,262 | ||||||||||||||
| Income before income tax | 20,230 | 20,311 | 21,176 | 20,678 | 19,126 | ||||||||||||||
| Income tax expense | 3,355 | 1,739 | 3,674 | 3,801 | 3,536 | ||||||||||||||
| Net income | $ | 16,875 | $ | 18,572 | $ | 17,502 | $ | 16,877 | $ | 15,590 | |||||||||
| Basic net income per common share | $ | 0.82 | $ | 0.90 | $ | 0.85 | $ | 0.81 | $ | 0.74 | |||||||||
| Diluted net income per common share | 0.81 | 0.89 | 0.84 | 0.81 | 0.74 | ||||||||||||||
| Cash dividend per share | 0.28 | 0.26 | 0.26 | 0.26 | 0.26 | ||||||||||||||
| Average shares outstanding | 20,574,506 | 20,639,758 | 20,702,235 | 20,749,925 | 20,943,094 | ||||||||||||||
| Average diluted shares outstanding | 20,780,188 | 20,848,634 | 20,904,857 | 20,945,522 | 21,150,550 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Return on average assets | 1.24 | % | 1.35 | % | 1.27 | % | 1.27 | % | 1.18 | % | |||||||||
| Return on average equity | 13.43 | 14.75 | 14.57 | 14.66 | 13.71 | ||||||||||||||
| Efficiency ratio (1) | 64.33 | 61.18 | 58.86 | 59.67 | 62.20 | ||||||||||||||
| As a Percent of Average Interest-Earning Assets (1) | |||||||||||||||||||
| Interest income | 5.15 | % | 5.24 | % | 5.38 | % | 5.35 | % | 5.28 | % | |||||||||
| Interest expense | 1.50 | 1.62 | 1.84 | 1.77 | 1.79 | ||||||||||||||
| Net interest income | 3.65 | 3.62 | 3.54 | 3.58 | 3.49 | ||||||||||||||
| Average Balances | |||||||||||||||||||
| Loans | $ | 4,315,371 | $ | 4,249,389 | $ | 4,201,557 | $ | 4,128,771 | $ | 4,060,941 | |||||||||
| Securities | 796,251 | 815,269 | 826,362 | 846,052 | 883,676 | ||||||||||||||
| Total earning assets | 5,209,360 | 5,162,381 | 5,159,681 | 5,036,090 | 5,078,596 | ||||||||||||||
| Total assets | 5,522,244 | 5,449,518 | 5,451,922 | 5,324,959 | 5,378,022 | ||||||||||||||
| Deposits | 4,832,089 | 4,774,179 | 4,786,408 | 4,646,639 | 4,715,331 | ||||||||||||||
| Interest bearing liabilities | 3,892,702 | 3,846,367 | 3,862,024 | 3,763,477 | 3,799,852 | ||||||||||||||
| Shareholders' equity | 509,523 | 499,445 | 476,422 | 461,720 | 461,291 | ||||||||||||||
(1) Presented on a fully tax equivalent basis assuming a marginal tax rate of
| INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data (continued) | |||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||
| (unaudited) | |||||||||||||||||||
| (Dollars in thousands except per share data) | |||||||||||||||||||
| End of Period | |||||||||||||||||||
| Capital | |||||||||||||||||||
| Tangible common equity ratio | 8.71 | % | 8.65 | % | 8.44 | % | 8.16 | % | 8.26 | % | |||||||||
| Tangible common equity ratio excluding accumulated other comprehensive loss | 9.61 | 9.51 | 9.35 | 9.24 | 9.31 | ||||||||||||||
| Average equity to average assets | 9.23 | 9.16 | 8.74 | 8.67 | 8.58 | ||||||||||||||
| Total capital to risk-weighted assets (2) | 13.79 | 13.59 | 13.67 | 14.20 | 14.51 | ||||||||||||||
| Tier 1 capital to risk-weighted assets (2) | 12.54 | 12.33 | 12.42 | 12.23 | 12.34 | ||||||||||||||
| Common equity tier 1 capital to risk-weighted assets (2) | 11.70 | 11.49 | 11.55 | 11.36 | 11.45 | ||||||||||||||
| Tier 1 capital to average assets (2) | 10.34 | 10.27 | 10.07 | 10.07 | 9.89 | ||||||||||||||
| Common shareholders' equity per share of common stock | $ | 24.80 | $ | 24.48 | $ | 23.72 | $ | 22.65 | $ | 22.28 | |||||||||
| Tangible common equity per share of common stock | 23.38 | 23.05 | 22.29 | 21.23 | 20.87 | ||||||||||||||
| Total shares outstanding | 20,585,805 | 20,548,893 | 20,691,604 | 20,715,650 | 20,970,115 | ||||||||||||||
| Selected Balances | |||||||||||||||||||
| Loans | $ | 4,308,099 | $ | 4,276,285 | $ | 4,198,283 | $ | 4,164,367 | $ | 4,072,691 | |||||||||
| Securities | 783,302 | 805,432 | 824,033 | 838,813 | 866,604 | ||||||||||||||
| Total earning assets | 5,255,657 | 5,195,002 | 5,204,380 | 5,105,579 | 5,031,975 | ||||||||||||||
| Total assets | 5,557,509 | 5,505,720 | 5,493,113 | 5,418,519 | 5,328,428 | ||||||||||||||
| Deposits | 4,880,680 | 4,761,682 | 4,859,155 | 4,659,359 | 4,633,931 | ||||||||||||||
| Interest bearing liabilities | 3,956,431 | 3,886,565 | 3,897,487 | 3,832,845 | 3,768,435 | ||||||||||||||
| Shareholders' equity | 510,553 | 502,951 | 490,742 | 469,250 | 467,277 | ||||||||||||||
(2) March 31, 2026 are Preliminary.
Reconciliation of Non-GAAP Financial Measures
Independent Bank Corporation
Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends. Tangible common equity is used by the Company to measure the quality of capital.
Reconciliation of Non-GAAP Financial Measures
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| (Dollars in thousands) | |||||||
| Net Interest Margin, Fully Taxable Equivalent ("FTE") | |||||||
| Net interest income | $ | 46,855 | $ | 43,685 | |||
| Add: taxable equivalent adjustment | 445 | 452 | |||||
| Net interest income - taxable equivalent | $ | 47,300 | $ | 44,137 | |||
| Net interest margin (GAAP) (1) | 3.61 | % | 3.46 | % | |||
| Net interest margin (Non-GAAP FTE) (1) | 3.65 | % | 3.49 | % | |||
(1) Annualized.
Tangible Common Equity Ratio
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Common shareholders' equity | $ | 510,553 | $ | 502,951 | $ | 490,742 | $ | 469,250 | $ | 467,277 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 28,300 | 28,300 | 28,300 | 28,300 | 28,300 | ||||||||||||||
| Other intangibles, net | 886 | 1,001 | 1,123 | 1,244 | 1,366 | ||||||||||||||
| Tangible common equity | 481,367 | 473,650 | 461,319 | 439,706 | 437,611 | ||||||||||||||
| Addition: | |||||||||||||||||||
| Accumulated other comprehensive loss for regulatory purposes | 55,226 | 51,891 | 54,833 | 64,089 | 61,285 | ||||||||||||||
| Tangible common equity excluding accumulated other comprehensive loss adjustments | $ | 536,593 | $ | 525,541 | $ | 516,152 | $ | 503,795 | $ | 498,896 | |||||||||
| Total assets | $ | 5,557,509 | $ | 5,505,720 | $ | 5,493,113 | $ | 5,418,519 | $ | 5,328,428 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 28,300 | 28,300 | 28,300 | 28,300 | 28,300 | ||||||||||||||
| Other intangibles, net | 886 | 1,001 | 1,123 | 1,244 | 1,366 | ||||||||||||||
| Tangible assets | 5,528,323 | 5,476,419 | 5,463,690 | 5,388,975 | 5,298,762 | ||||||||||||||
| Addition: | |||||||||||||||||||
| Net unrealized losses on available for sale securities and derivatives, net of tax | 55,226 | 51,891 | 54,833 | 64,089 | 61,285 | ||||||||||||||
| Tangible assets excluding accumulated other comprehensive loss adjustments | $ | 5,583,549 | $ | 5,528,310 | $ | 5,518,523 | $ | 5,453,064 | $ | 5,360,047 | |||||||||
| Common equity ratio | 9.19 | % | 9.14 | % | 8.93 | % | 8.66 | % | 8.77 | % | |||||||||
| Tangible common equity ratio | 8.71 | % | 8.65 | % | 8.44 | % | 8.16 | % | 8.26 | % | |||||||||
| Tangible common equity ratio excluding accumulated other comprehensive loss | 9.61 | % | 9.51 | % | 9.35 | % | 9.24 | % | 9.31 | % | |||||||||
| Tangible Common Equity per Share of Common Stock: | |||||||||||||||||||
| Common shareholders' equity | $ | 510,553 | $ | 502,951 | $ | 490,742 | $ | 469,250 | $ | 467,277 | |||||||||
| Tangible common equity | $ | 481,367 | $ | 473,650 | $ | 461,319 | $ | 439,706 | $ | 437,611 | |||||||||
| Shares of common stock outstanding (in thousands) | 20,586 | 20,549 | 20,692 | 20,716 | 20,970 | ||||||||||||||
| Common shareholders' equity per share of common stock | $ | 24.80 | $ | 24.48 | $ | 23.72 | $ | 22.65 | $ | 22.28 | |||||||||
| Tangible common equity per share of common stock | $ | 23.38 | $ | 23.05 | $ | 22.29 | $ | 21.23 | $ | 20.87 | |||||||||
The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets. Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.
| Contact: | William B. Kessel, President and CEO, 616.447.3933 Gavin A. Mohr, Chief Financial Officer, 616.447.3929 |
