Adam Carol's questions to Independent Bank Corp (Michigan) (IBCP) leadership • Q3 2024
Question
Speaking for Nathan Race, Adam Carol of Piper Sandler & Co. questioned if deposit costs have peaked and asked for color on market competition. He also inquired about the expense run rate outlook for 2025, given the bank's AI initiatives.
Answer
President and CEO William Kessel stated his belief that spot deposit costs have peaked, though the remix from noninterest-bearing to interest-bearing accounts continues. He characterized the market as aggressive but expressed confidence in their pricing strategy. Regarding 2025 expenses, Mr. Kessel deferred specific guidance to the next earnings call but emphasized a continued focus on expense management through technology and resource reallocation, with a goal to leverage AI for revenue generation.