Independent Bank (NASDAQ:IBCP) reported higher second-quarter 2026 earnings as net interest income rose, loan growth accelerated and the company continued to build capital while preparing to integrate its recently completed acquisition of HCB Financial Corp.
The Michigan-based bank posted net income of $18.8 million, or $0.90 per diluted share, for the quarter, compared with $16.9 million, or $0.81 per diluted share, in the same period a year earlier, President and Chief Executive Officer Brad Kessel said on the company’s earnings call
Kessel said the quarter reflected “the strength of Independent Bank’s community banking model” and cited disciplined balance sheet management, relationship-based lending and a stable local deposit base as contributors to the results. Net Interest Income and Margin Improve Chief Financial Officer Gavin Mohr said net interest income increased $3.3 million from the year-ago period. The bank’s tax-equivalent net interest margin was 3.71% in the second quarter, up from 3.58% in the second quarter of 2025 and up 6 basis points from the first quarter of 2026.
On a linked-quarter basis, Mohr said the margin benefited from three factors: a change in earning asset mix, which added 3 basis points; higher earning asset yields, which added 2 basis points; and lower funding costs, which added 1 basis point. Average earning assets were $5.33 billion, compared with $5.11 billion a year earlier and $5.23 billion in the first quarter. Mohr said the company has now recorded its 12th consecutive quarter of increasing net interest income.