INDEPENDENT BANK CORP /MI/IBCP

INDEPENDENT BANK CORP /MI/ Debt Disclosure

10-KFiled Mar 6, 20262 min read
OTHER BORROWINGS
A summary of other borrowings at December 31 follows:
20252024
(In thousands)
Advances from the FHLB$77,000 $45,000 
Other3 9 
Total$77,003 $45,009 
Borrowings with the FRB at both December 31, 2025 and 2024 were zero. Average borrowings with the FRB during the years ended December 31, 2025, 2024 and 2023 totaled $0.1 million, $0.2 million and $4.5 million, respectively. We had unused borrowing capacity with the FRB (subject to the FRB’s credit requirements and policies) of $1.24 billion at December 31, 2025. Collateral for FRB borrowings are certain securities AFS, securities HTM, commercial loans and installment loans. Interest expense on borrowings with the FRB amounted to $0.004 million, $0.013 million and $0.188 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Advances from the FHLB are secured by unencumbered qualifying mortgage and home equity loans with a market value equal to at least 125% to 165%, respectively, of outstanding advances as well as certain securities AFS, securities HTM and by the FHLB stock that we own. Unused borrowing capacity with the FHLB (subject to the FHLB’s credit requirements and policies) was $0.75 billion at December 31, 2025. Interest expense on advances amounted to $0.8 million, $2.0 million and $2.4 million for the years ended December 31, 2025, 2024 and 2023, respectively. During 2024 we exercised a call option and terminated a $50.0 million fixed rate advance with no penalty.
As a member of the FHLB, we must own FHLB stock equal to the greater of 0.10% of total assets or 4.5% of our outstanding advances and certain loans sold to the FHLB. At December 31, 2025, we were in compliance with the FHLB stock ownership requirements.
The maturity dates, weighted average interest rates and contractually required repayments of FHLB advances at December 31 follow:
20252024
Amount
Rate
AmountRate
(Dollars in thousands)
Fixed Rate Advances
  2030
$2,000 — %$— 
Total fixed rate advances
2,000 — — 
Variable Rate Advances
  2025— — 45,000 4.48 %
  2026
75,000 3.79 — — 
Total variable rate advances
75,000 3.79 45,000 
Total FHLB advances$77,000 3.69 %$45,000 4.48 %
Assets, consisting of securities AFS, securities HTM, FHLB stock and loans, pledged to secure other borrowings and unused borrowing capacity totaled $2.86 billion at December 31, 2025.

Historical Timeline

Fiscal YearFiled
2025Mar 6, 2026Showing above
2024Mar 7, 2025
2023Mar 8, 2024
2022Mar 3, 2023
2021Mar 4, 2022
2020Mar 5, 2021
2019Mar 6, 2020
2018Mar 7, 2019
2017Mar 7, 2018
2016Mar 7, 2017
2015Mar 7, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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