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Jun 30
Independent Bank Q2 2025 Earnings Report
Independent Bank reported second quarter 2025 earnings.
Key Takeaways
Independent Bank Corporation reported a net income of $16.9 million, or $0.81 per diluted share, for the second quarter of 2025. The company saw an increase in net interest income and net interest margin, alongside growth in loans. Despite market uncertainties, credit metrics remained strong with low non-performing assets. The company also rolled out new technologies and continued to recruit talented bankers.
Net income for Q2 2025 was $16.9 million, or $0.81 per diluted share.
Net interest income increased by 7.9% year-over-year to $44.6 million, with net interest margin expanding to 3.58%.
Loans increased by 9.0% (annualized) while core deposits were down by 1.4% (annualized) due to seasonality.
Credit metrics remained strong with non-performing assets to total assets at 16 basis points and an allowance for credit losses of 1.47% of total loans.
Independent Bank
Independent Bank
Independent Bank Revenue by Segment
Revenue by Segment
Mortgage Loan Servicing, Net Revenue
CapyFin.comNet Gains on Mortgage Loans Revenue
CapyFin.com Forward Guidance
The CEO expressed optimism for growth in the balance of 2025 and 2026, driven by continued positive trends, strategic investments, and effective business development.
Positive Outlook
- Continued positive trends in financial results.
- Improved operational scale from strategic investments.
- Strong credit metrics with low levels of watch credits.
- Effective business development from existing customer base and new relationships.
- Successful recruitment of talented bankers and rollout of new technologies.
Challenges Ahead
- Core deposits were down by 1.4% (annualized) due to seasonality.
- Non-interest income decreased primarily due to a prior-year gain on equity securities and variances in mortgage banking related revenues.
- Mortgage loan servicing, net, saw a significant variance due to changes in fair value of capitalized mortgage loan servicing rights and a decline in servicing revenue.
- The provision for credit losses increased significantly year-over-year.
- Heightened uncertainty in the markets during the quarter.