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IBCP News
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Independent Bank Reports Q2 CET1 Capital Ratio at 11.45%
Reports Q2 CET1 capital ratio 11.45%. Reports Q2 tangible common equity ratio 8.9%. William Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: "Our second quarter performance demonstrates the strength of Independent Bank's community banking model and the continued benefits of disciplined balance sheet management, relationship-based lending, and a stable, locally-focused deposit franchise. We saw broad-based momentum across the business, with core customer activity supporting loan growth, core deposit growth, improved earning-asset yields, and continued capital generation. Just as important, we achieved these results while maintaining strong asset quality, prudent liquidity, and capital levels that position us well for the current operating environment."
Independent Bank to Acquire HCB Financial Corp.
Independent Bank Corporation, the parent company of Independent Bank, with total assets of approximately $5.5B, and HCB Financial Corp., the parent company of Highpoint Community Bank, with total assets of approximately $590M, previously announced the signing of a definitive merger agreement on March 18 for IBCP to acquire HCB. The proposed transaction has been approved by HCB shareholders. As previously announced, the proposed transaction has also been approved by both the Federal Reserve Bank of Chicago and the Michigan Department of Insurance and Financial Services. The merger of IBCP and HCB is currently expected to be effective on July 1, the company stated.
Independent Bank Reports Q1 CET1 Capital Ratio of 11.43%
Reports Q1 CET1 capital ratio 11.43%. William Kessel, the president and CEO 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 3.65%, and continued growth in both loans and core deposits. Balance sheet growth remained disciplined, with $80.4 million in core deposit growth and $31.8 million in total loan growth, including $53.8 million, or 9.9% annualized, in commercial loans, reflecting continued execution of our strategic plan. Credit quality remains sound, and while geopolitical uncertainty has increased, we have not seen a direct impact on our customers and continue to monitor conditions closely. Profitability remained strong, with a return on average assets of 1.24% and a return on average equity of 13.43%. We remain encouraged by our momentum, optimistic about our opportunities, and confident in the benefits our recently announced merger with HCB Financial Corp. will provide to enhancing shareholder value."
Independent Bank and HCB Financial Announce Merger Agreement Valued at Approximately $70.2M
Independent Bank Corporation and HCB Financial jointly announced the execution of a definitive merger agreement under which HCB will merge with Independent in a cash and stock transaction valued at approximately $70.2M. Based on financial data as of December 31, 2025, the combined organization will have approximately $6.1B in total assets, $5.3B in total deposits, and $4.7B in total loans. Under the terms of the definitive merger agreement, at the closing of the transaction, Independent will issue 1.590 shares of its common stock plus $17.51 in cash for each outstanding share of HCB. Based on the closing price of Independent's common stock of $33.13 on March 17, 2026, the transaction would result in aggregate consideration paid to HCB shareholders of approximately $70.2M. The transaction is expected to be approximately 6% accretive to Independent's 2027 earnings per share, assuming fully phased-in synergies. The estimated tangible book value per share dilution of 4% at closing is expected to be earned back in approximately 3.4 years using the crossover method. Independent will maintain a robust capital position post-closing, with a projected CET1 ratio of approximately 11.5%. One HCB director will join each of the Board of Directors of Independent and the Board of Directors of Independent Bank following completion of the merger, increasing each of the respective boards to 11 members. The transaction has been unanimously approved by the respective Boards of each organization and is expected to close early in the third quarter of 2026, subject to customary regulatory approvals, the approval of HCB shareholders, and the satisfaction of certain other closing conditions.
Company Reports Strong Q4 Performance with 32% Dividend Payout Ratio
"Our fourth-quarter performance marked the culmination of another remarkable year, with our organization excelling on all fundamentals," said William Kessel, the President and Chief Executive Officer. "Over the past year, we increased tangible book value by 13.3% and delivered near record earnings. Meanwhile, our dividend payout ratio was 32% for the year as we continue to recognize the value of returns to our shareholders. During the fourth quarter, we realized continued net interest margin expansion, strong loan growth and increased non-interest income despite the third quarter reflecting elevated revenue from an annual incentive payment related to our debit card program. In addition, our credit quality metrics remain positive, with watch credits and non-performing assets below historic averages. In anticipation of continued strong earnings, we repurchased shares and executed a tax credit transfer agreement during the fourth quarter which is expected to reduce tax obligations and enhance earnings per share. Looking ahead to 2026, our confidence is bolstered by a robust commercial loan pipeline and our on going strategic initiative to attract and integrate talented bankers into our organization."
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