INDEPENDENT BANK CORP /MI/IBCP
INDEPENDENT BANK CORP /MI/ Segments Disclosure
SEGMENT REPORTING
Independent Bank Corporation is a bank holding company, whose principal activity is the ownership and management of its wholly-owned subsidiaries, including Independent Bank. As a community-oriented financial institution, substantially all of our operations involve the delivery of loan and deposit products to customers.
We have one reportable segment which is determined by the Chief Executive Officer, who is the designated chief operating decision maker, based upon information provided about the products and services we offer, primarily banking operations. The segment is also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business, which are then aggregated if the operating performance, products/services, and customers are similar. The chief operating decision maker will evaluate the performance of our business components such as evaluating revenue streams, significant expenses, and budget to actual results assessing our segment and in the determination of allocating resources. The chief operating decision maker uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The chief operating decision maker uses consolidated net income, earnings per share, and return on average assets to benchmark us against our competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessing performance and in establishing compensation. Loans, investments, and deposits provide the majority of revenues in the banking operation. Interest expense, provisions for credit losses, and compensation and employee benefits provide the significant expenses in the banking operation. All operations are domestic.
Accounting policies for our segment are the same as those described in Note #1 - Accounting Policies. Segment performance is evaluated using consolidated net income, earnings per share, and return on average assets. Information reported internally for performance assessment by the chief operating decision maker is as follows, inclusive of reconciliations of significant segment totals to the consolidated financial statements for the years ended December 31, 2025, 2024 and 2023.
| 2025 | |||||||||||||||||||||||
Independent Bank | Other(1) | Eliminations | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||||
| Interest and fees on loans | $ | 238,532 | $ | — | $ | 301 | $ | 238,833 | |||||||||||||||
| Interest on securities | 25,948 | — | — | 25,948 | |||||||||||||||||||
| Other investments | 4,956 | 1,356 | (1,356) | 4,956 | |||||||||||||||||||
| Total Interest Income | 269,436 | 1,356 | (1,055) | 269,737 | |||||||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||||
| Deposits | 84,854 | — | (1,356) | 83,498 | |||||||||||||||||||
| Other borrowings and subordinated debt and debentures | 828 | 5,396 | — | 6,224 | |||||||||||||||||||
| Total Interest Expense | 85,682 | 5,396 | (1,356) | 89,722 | |||||||||||||||||||
| Net Interest Income | 183,754 | (4,040) | 301 | 180,015 | |||||||||||||||||||
| Provision for credit losses | 6,135 | — | — | 6,135 | |||||||||||||||||||
| Net Interest Income After Provision for Credit Losses | 177,619 | (4,040) | 301 | 173,880 | |||||||||||||||||||
| NON-INTEREST INCOME | |||||||||||||||||||||||
Interchange income | 13,860 | — | — | 13,860 | |||||||||||||||||||
Service charges on deposit accounts | 12,022 | — | — | 12,022 | |||||||||||||||||||
Net gains on mortgage loans | 6,543 | — | 237 | 6,780 | |||||||||||||||||||
| Mortgage loan servicing, net | 827 | — | — | 827 | |||||||||||||||||||
| Other | 11,751 | 1,278 | (874) | 12,155 | |||||||||||||||||||
| Total Non-interest Income | 45,003 | 1,278 | (637) | 45,644 | |||||||||||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||||||||||
| Compensation and employee benefits | 84,799 | 545 | (150) | 85,194 | |||||||||||||||||||
| Data processing | 14,709 | 79 | — | 14,788 | |||||||||||||||||||
| Occupancy, net | 8,544 | 23 | — | 8,567 | |||||||||||||||||||
| Interchange expense | 4,641 | — | — | 4,641 | |||||||||||||||||||
| Furniture, fixtures and equipment | 3,464 | 3 | — | 3,467 | |||||||||||||||||||
| Advertising | 3,202 | 9 | — | 3,211 | |||||||||||||||||||
| FDIC deposit insurance | 2,824 | — | — | 2,824 | |||||||||||||||||||
| Loan and collection | 2,737 | — | — | 2,737 | |||||||||||||||||||
| Legal and professional | 2,009 | 439 | — | 2,448 | |||||||||||||||||||
| Communications | 1,972 | 25 | — | 1,997 | |||||||||||||||||||
| Other | 7,559 | 800 | — | 8,359 | |||||||||||||||||||
| Total Non-interest Expense | 136,460 | 1,923 | (150) | 138,233 | |||||||||||||||||||
| Income Before Income Tax | 86,162 | (4,685) | (186) | 81,291 | |||||||||||||||||||
| Income tax expense | 14,195 | (1,406) | (39) | 12,750 | |||||||||||||||||||
| Net Income | $ | 71,967 | $ | (3,279) | $ | (147) | $ | 68,541 | |||||||||||||||
OTHER SEGMENT DISCLOSURES | |||||||||||||||||||||||
Depreciation | $ | 4,991 | $ | 2 | $ | — | $ | 4,993 | |||||||||||||||
Amortization | 487 | — | — | 487 | |||||||||||||||||||
Total assets | 5,499,615 | 565,709 | (559,604) | 5,505,720 | |||||||||||||||||||
(1) Includes amounts relating to our parent company and certain insignificant operations.
| 2024 | |||||||||||||||||||||||
Independent Bank | Other(1) | Eliminations | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||||
| Interest and fees on loans | $ | 228,325 | $ | — | $ | 260 | $ | 228,585 | |||||||||||||||
| Interest on securities | 31,983 | — | — | 31,983 | |||||||||||||||||||
| Other investments | 6,208 | 1,746 | (1,746) | 6,208 | |||||||||||||||||||
| Total Interest Income | 266,516 | 1,746 | (1,486) | 266,776 | |||||||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||||
| Deposits | 94,440 | — | (1,746) | 92,694 | |||||||||||||||||||
| Other borrowings and subordinated debt and debentures | 2,016 | 5,818 | — | 7,834 | |||||||||||||||||||
| Total Interest Expense | 96,456 | 5,818 | (1,746) | 100,528 | |||||||||||||||||||
| Net Interest Income | 170,060 | (4,072) | 260 | 166,248 | |||||||||||||||||||
| Provision for credit losses | 4,468 | — | — | 4,468 | |||||||||||||||||||
| Net Interest Income After Provision for Credit Losses | 165,592 | (4,072) | 260 | 161,780 | |||||||||||||||||||
| NON-INTEREST INCOME | |||||||||||||||||||||||
Interchange income | 13,992 | — | — | 13,992 | |||||||||||||||||||
Service charges on deposit accounts | 11,870 | — | — | 11,870 | |||||||||||||||||||
Net gains on mortgage loans | 6,374 | — | 205 | 6,579 | |||||||||||||||||||
| Mortgage loan servicing, net | 9,447 | — | — | 9,447 | |||||||||||||||||||
| Other | 14,074 | 1,082 | (682) | 14,474 | |||||||||||||||||||
| Total Non-interest Income | 55,757 | 1,082 | (477) | 56,362 | |||||||||||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||||||||||
| Compensation and employee benefits | 84,580 | 493 | (118) | 84,955 | |||||||||||||||||||
| Data processing | 13,505 | 74 | — | 13,579 | |||||||||||||||||||
| Occupancy, net | 7,782 | 24 | — | 7,806 | |||||||||||||||||||
| Interchange expense | 4,504 | — | — | 4,504 | |||||||||||||||||||
| Furniture, fixtures and equipment | 3,759 | 3 | — | 3,762 | |||||||||||||||||||
| Advertising | 3,049 | 9 | — | 3,058 | |||||||||||||||||||
| FDIC deposit insurance | 2,870 | — | — | 2,870 | |||||||||||||||||||
| Legal and professional | 2,163 | 403 | — | 2,566 | |||||||||||||||||||
| Loan and collection | 2,474 | — | — | 2,474 | |||||||||||||||||||
| Communications | 2,073 | 22 | — | 2,095 | |||||||||||||||||||
| Other | 6,674 | 753 | — | 7,427 | |||||||||||||||||||
| Total Non-interest Expense | 133,433 | 1,781 | (118) | 135,096 | |||||||||||||||||||
| Income Before Income Tax | 87,916 | (4,771) | (99) | 83,046 | |||||||||||||||||||
| Income tax expense | 17,334 | (1,057) | (21) | 16,256 | |||||||||||||||||||
| Net Income | $ | 70,582 | $ | (3,714) | $ | (78) | $ | 66,790 | |||||||||||||||
OTHER SEGMENT DISCLOSURES | |||||||||||||||||||||||
Depreciation | $ | 5,185 | $ | 3 | $ | — | $ | 5,188 | |||||||||||||||
Amortization | 516 | — | — | 516 | |||||||||||||||||||
Total assets | 5,328,488 | 549,242 | (539,626) | 5,338,104 | |||||||||||||||||||
(1) Includes amounts relating to our parent company and certain insignificant operations.
| 2023 | |||||||||||||||||||||||
Independent Bank | Other(1) | Eliminations | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||||
| Interest and fees on loans | $ | 197,489 | $ | — | $ | 236 | $ | 197,725 | |||||||||||||||
| Interest on securities | 36,523 | — | — | 36,523 | |||||||||||||||||||
| Other investments | 5,429 | 1,317 | (1,317) | 5,429 | |||||||||||||||||||
| Total Interest Income | 239,441 | 1,317 | (1,081) | 239,677 | |||||||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||||
| Deposits | 76,392 | — | (1,317) | 75,075 | |||||||||||||||||||
| Other borrowings and subordinated debt and debentures | 2,547 | 5,726 | — | 8,273 | |||||||||||||||||||
| Total Interest Expense | 78,939 | 5,726 | (1,317) | 83,348 | |||||||||||||||||||
| Net Interest Income | 160,502 | (4,409) | 236 | 156,329 | |||||||||||||||||||
| Provision for credit losses | 6,210 | — | — | 6,210 | |||||||||||||||||||
| Net Interest Income After Provision for Credit Losses | 154,292 | (4,409) | 236 | 150,119 | |||||||||||||||||||
| NON-INTEREST INCOME | |||||||||||||||||||||||
Interchange income | 13,996 | — | — | 13,996 | |||||||||||||||||||
Service charges on deposit accounts | 12,361 | — | — | 12,361 | |||||||||||||||||||
Net gains on mortgage loans | 7,270 | — | 166 | 7,436 | |||||||||||||||||||
| Mortgage loan servicing, net | 4,626 | — | — | 4,626 | |||||||||||||||||||
| Other | 11,867 | 927 | (537) | 12,257 | |||||||||||||||||||
| Total Non-interest Income | 50,120 | 927 | (371) | 50,676 | |||||||||||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||||||||||
| Compensation and employee benefits | 78,444 | 609 | (88) | 78,965 | |||||||||||||||||||
| Data processing | 11,790 | 72 | — | 11,862 | |||||||||||||||||||
| Occupancy, net | 7,884 | 24 | — | 7,908 | |||||||||||||||||||
| Interchange expense | 4,332 | — | — | 4,332 | |||||||||||||||||||
| Furniture, fixtures and equipment | 3,751 | 5 | — | 3,756 | |||||||||||||||||||
| Advertising | 2,156 | 9 | — | 2,165 | |||||||||||||||||||
| FDIC deposit insurance | 3,005 | — | — | 3,005 | |||||||||||||||||||
| Legal and professional | 1,748 | 460 | — | 2,208 | |||||||||||||||||||
| Loan and collection | 2,174 | — | — | 2,174 | |||||||||||||||||||
| Communications | 2,381 | 25 | — | 2,406 | |||||||||||||||||||
| Other | 7,537 | 801 | — | 8,338 | |||||||||||||||||||
| Total Non-interest Expense | 125,202 | 2,005 | (88) | 127,119 | |||||||||||||||||||
| Income Before Income Tax | 79,210 | (5,487) | (47) | 73,676 | |||||||||||||||||||
| Income tax expense | 15,842 | (1,223) | (10) | 14,609 | |||||||||||||||||||
| Net Income | $ | 63,368 | $ | (4,264) | $ | (37) | $ | 59,067 | |||||||||||||||
OTHER SEGMENT DISCLOSURES | |||||||||||||||||||||||
Depreciation | $ | 5,178 | $ | 5 | $ | — | $ | 5,183 | |||||||||||||||
Amortization | 547 | — | — | 547 | |||||||||||||||||||
Total assets | 5,259,523 | 493,158 | (488,955) | 5,263,726 | |||||||||||||||||||
(1) Includes amounts relating to our parent company and certain insignificant operations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2015 | Mar 7, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.