Independent Bank Q2 FY2026 Earnings Call
With Gavin Mohr (EVP and CFO), Brad Kessel (President and CEO) and Joel Rahn (EVP and Head of Commercial Banking).
Independent Bank is a Michigan-based bank that's been operated locally for over 160 years. In 1864 we were founded as First National Bank of Ionia; we now have locations across the Lower Peninsula and we’re the fourth largest bank headquartered in Michigan.
More about Independent Bank
But in one way we’ve never changed – people are always our first priority. We’re committed to providing exceptional service and value to our customers, our stockholders, and our communities. After 160 years of local banking, we understand the needs of individuals, families, and businesses around the state – and we’re committed to addressing them. We support local causes and our employees serve their communities’ human services agencies, arts and cultural organizations, school systems, places of worship, and more. We’re your friends and neighbors, locally invested the same way you are. We’re a full-service bank that provides a wide range of competitive banking products, services, and technology. Visit us at IndependentBank.com for more information, or join the conversation on Facebook at facebook.com/IndependentBank.
1Prepared remarks3 speakers
Good morning. Welcome to today's call. Thank you for joining us for Independent Bank Corporation's conference call and webcast to discuss the company's results for the second quarter of 2026. I'm Brad Kessel, President and Chief Executive Officer. Joining me is Gavin Mohr, Executive Vice President and our Chief Financial Officer, Joel Rahn, Executive Vice President and Head of Commercial Banking. Before we begin today's call, I'd like to direct you to important information on page two of our presentations…
Yeah. Thanks, Brad. Good morning, everyone. Page seven summarizes our loan activity for the quarter. We experienced strong second quarter loan growth of $105 million or 9.8% annualized. Commercial loan generation was very strong with $92.6 million of quarterly growth or 16% annualized. During the quarter, our residential mortgage and consumer installment loan portfolios increased $12.9 million and $0.2 million respectively. Year to date, we've grown loans $138 million, led by strong commercial loan growth of $146…
Thanks, Joel, and good morning, everyone. I'm starting at page 10 of our presentation. Page 10 highlights our strong regulatory capital position. I would highlight the increase in our tangible common equity ratio to 8.9%. Turning on to page 11. Net Interest Income increased $3.3 million from the year ago period. Our tax equivalent Net Interest Margin was 3.71% during the second quarter of 2026, compared to 3.58% in the second quarter of 2025 and up 6 basis points from the first quarter of 2026.
Average earning…
Thanks, Gavin. We've built a strong community bank franchise, which positions us well to effectively manage through a variety of economic environments and continue delivering strong and consistent results for our shareholders. As we move through the second half of 2026, our focus will be continuing to invest in our team, investing in and leveraging our technology, and the successful integration of the HCB franchise, while always working to be Michigan's Most People-Focused Bank. At this point, we'd like to open up…