Independent Bank (IBCP) 8-K Results of Operations and Financial Condition

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets (1)

	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
	(Dollars in thousands)
Non-accrual loans	$	5,381		$	5,307		$	5,859		$	5,893		$	5,545
Loans 90 days or more past due and still accruing interest	—			—			—			—			—
Subtotal	5,381			5,307			5,859			5,893			5,545
Less:  Government guaranteed loans	1,660			1,491			1,360			859			435
Total non-performing loans	3,721			3,816			4,499			5,034			5,110
Other real estate and repossessed assets	455			348			508			438			245
Total non-performing assets	$	4,176		$	4,164		$	5,007		$	5,472		$	5,355
As a percent of Portfolio Loans
Non-performing loans	0.11		%	0.11		%	0.14		%	0.17		%	0.18		%
Allowance for credit losses	1.51			1.50			1.47			1.52			1.63
Non-performing assets to total assets	0.08			0.08			0.10			0.11			0.11
Allowance for credit losses as a percent of non-performing loans	1,409.16			1,340.20			1,064.30			906.38			924.70

(1) Excludes loans classified as "trouble debt restructured" that are not past due.

Troubled debt restructurings ("TDR")

	December 31, 2022
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDR's	$	3,155	$	26,000		$	29,155
Non-performing TDR's (2)	—		1,034		(3)	1,034
Total	$	3,155	$	27,034		$	30,189

	December 31, 2021
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDR's	$	4,481	$	31,589		$	36,070
Non-performing TDR's (2)	—		1,016		(3)	1,016
Total	$	4,481	$	32,605		$	37,086

(1)	Retail loans include mortgage and installment loan segments.
(2)	Included in non-performing assets table above.
(3)	Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.

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Allowance for credit losses

	Twelve months ended December 31,
	2022							2021
	Loans			Securities		Unfunded Commitments		Loans			Securities		Unfunded Commitments
	(Dollars in thousands)
Balance at beginning of period	$	47,252		$	—	$	4,481	$	35,429		$	—	$	1,805
Additions (deductions)
Impact of adoption of ASC 326	—			—		—		11,574			—		1,469
Provision for credit losses	5,173			168		—		(1,928)			—		—
Initial allowance on loans purchased with credit deterioration	—			—		—		134			—		—
Recoveries credited to allowance	2,496			—		—		4,477			—		—
Loans charged against the allowance	(2,486)			—		—		(2,434)			—		—
Recoveries included in non-interest expense	—			—		599		—			—		1,207
Balance at end of period	$	52,435		$	168	$	5,080	$	47,252		$	—	$	4,481
Net loans charged (recovered) against the allowance to average Portfolio Loans	0.00		%					(0.07)		%

Capitalization

	December 31,
	2022		2021
	(In thousands)
Subordinated debt	$	39,433	$	39,357
Subordinated debentures	39,660		39,592
Amount not qualifying as regulatory capital	(657)		(581)
Amount qualifying as regulatory capital	78,436		78,368
Shareholders’ equity
Common stock	320,991		323,401
Retained earnings	119,368		74,582
Accumulated other comprehensive income	(92,763)		501
Total shareholders’ equity	347,596		398,484
Total capitalization	$	426,032	$	476,852

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Non-Interest Income

	Three months ended						Twelve months ended
	December 31, 2022		September 30, 2022		December 31, 2021		December 31,
							2022		2021
	(In thousands)
Interchange income	$	3,402	$	4,049	$	3,306	$	13,955	$	14,045
Service charges on deposit accounts	3,153		3,082		2,992		12,288		10,170
Net gains (losses) on assets
Mortgage loans	1,486		2,857		5,600		6,431		35,880
Securities	—		—		(10)		(275)		1,411
Mortgage loan servicing, net	687		4,283		1,269		18,773		5,745
Investment and insurance commissions	728		750		708		2,898		2,603
Bank owned life insurance	58		59		156		360		567
Other	1,954		1,781		1,750		7,479		6,222
Total non-interest income	$	11,468	$	16,861	$	15,771	$	61,909	$	76,643

Capitalized Mortgage Loan Servicing Rights

	Three months ended December 31,				Twelve months ended December 31,
	2022		2021		2022		2021
	(In thousands)
Balance at beginning of period	$	43,158	$	24,208	$	26,232	$	16,904
Originated servicing rights capitalized	824		2,799		6,061		11,436
Change in fair value	(1,493)		(775)		10,196		(2,108)
Balance at end of period	$	42,489	$	26,232	$	42,489	$	26,232

Mortgage Loan Activity

	Three months ended									Twelve months ended
	December 31, 2022			September 30, 2022			December 31, 2021			December 31,
										2022			2021
	(Dollars in thousands)
Mortgage loans originated	$	138,889		$	209,041		$	424,563		$	935,807		$	1,861,060
Mortgage loans sold	80,584			157,511			291,196			602,797			1,254,638
Net gains on mortgage loans	1,486			2,857			5,600			6,431			35,880
Net gains as a percent of mortgage loans sold  ("Loan Sales Margin")	1.84		%	1.81		%	1.92		%	1.07		%	2.86		%
Fair value adjustments included in the Loan Sales Margin	0.19		%	0.25		%	(0.90)		%	(1.12)		%	(0.52)		%

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Non-Interest Expense

	Three months ended						Twelve months ended
	December 31, 2022		September 30, 2022		December 31, 2021		December 31,
							2022		2021
	(In thousands)
Compensation	$	12,728	$	12,839	$	11,462	$	50,535	$	44,226
Performance-based compensation	4,147		4,290		4,473		15,875		19,800
Payroll taxes and employee benefits	3,519		3,472		3,970		14,597		15,943
Compensation and employee benefits	20,394		20,601		19,905		81,007		79,969
Data processing	2,670		2,653		2,851		10,183		10,823
Occupancy, net	2,225		2,062		2,216		8,907		8,794
Interchange expense	1,042		927		1,083		4,242		4,434
Furniture, fixtures and equipment	933		987		1,060		4,007		4,172
Communications	629		723		739		2,871		3,080
Loan and collection	679		772		819		2,657		3,172
FDIC deposit insurance	572		591		413		2,142		1,396
Legal and professional	588		573		534		2,133		2,068
Advertising	489		345		599		2,074		1,918
Amortization of intangible assets	146		174		243		785		970
Supplies	125		147		151		556		611
Correspondent bank service fees	67		75		90		299		382
Provision for loss reimbursement on sold loans	—		12		38		57		133
Conversion related expenses	—		—		191		50		1,827
Costs (recoveries) related to unfunded lending commitments	(77)		382		844		599		1,207
Net gains on other real estate and repossessed assets	—		(18)		(28)		(214)		(230)
Other	1,609		1,360		2,206		5,986		6,297
Total non-interest expense	$	32,091	$	32,366	$	33,954	$	128,341	$	131,023

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Average Balances and Tax Equivalent Rates

	Three Months Ended December 31,
	2022						2021
	Average Balance		Interest		Rate (2)		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	3,442,621	$	42,023	4.86	%	$	2,949,441	$	30,232	4.08	%
Tax-exempt loans (1)	7,323		89		4.82		8,544		106		4.92
Taxable securities	847,735		5,845		2.76		1,017,291		4,114		1.62
Tax-exempt securities (1)	317,074		3,241		4.09		349,747		2,047		2.34
Interest bearing cash	5,069		48		3.76		89,950		38		0.17
Other investments	17,653		185		4.16		18,427		179		3.85
Interest Earning Assets	4,637,475		51,431		4.41		4,433,400		36,716		3.30
Cash and due from banks	58,485						58,232
Other assets, net	238,899						162,859
Total Assets	$	4,934,859					$	4,654,491
Liabilities
Savings and interest-bearing checking	2,519,294		6,046		0.95		2,409,373		634		0.10
Time deposits	503,081		2,497		1.97		344,744		343		0.39
Other borrowings	136,999		1,833		5.31		108,940		962		3.50
Interest Bearing Liabilities	3,159,374		10,376		1.30	%	2,863,057		1,939		0.27
Non-interest bearing deposits	1,328,373						1,315,784
Other liabilities	113,502						82,173
Shareholders’ equity	$	333,610					$	393,477
Total liabilities and shareholders’ equity	$	4,934,859					$	4,654,491
Net Interest Income			$	41,055					$	34,777
Net Interest Income as a Percent of Average Interest Earning Assets					3.52	%					3.13	%

(1)	Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
(2)	Annualized

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Average Balances and Tax Equivalent Rates

	Twelve Months Ended December 31,
	2022						2021
	Average Balance		Interest		Rate		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	3,227,803	$	138,765	4.30	%	$	2,881,950	$	116,358	4.04	%
Tax-exempt loans (1)	7,771		370		4.76		7,240		362		5.00
Taxable securities	945,665		20,676		2.19		915,701		14,488		1.58
Tax-exempt securities (1)	331,322		10,191		3.08		348,346		7,892		2.27
Interest bearing cash	28,773		142		0.49		79,915		112		0.14
Other investments	17,768		742		4.18		18,427		734		3.98
Interest Earning Assets	4,559,102		170,886		3.75		4,251,579		139,946		3.30
Cash and due from banks	59,507						56,474
Other assets, net	207,114						157,524
Total Assets	$	4,825,723					$	4,465,577
Liabilities
Savings and interest-bearing checking	2,526,296		10,278		0.41		2,282,607		2,693		0.12
Time deposits	399,987		3,873		0.97		326,081		1,772		0.54
Other borrowings	121,871		5,296		4.35		108,884		3,850		3.54
Interest Bearing Liabilities	3,048,154		19,447		0.64	%	2,717,572		8,315		0.31
Non-interest bearing deposits	1,338,736						1,288,276
Other liabilities	94,638						69,694
Shareholders’ equity	$	344,195					$	390,035
Total liabilities and shareholders’ equity	$	4,825,723					$	4,465,577
Net Interest Income			$	151,439					$	131,631
Net Interest Income as a Percent of Average Interest Earning Assets					3.32	%					3.10	%

(1) Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

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Commercial Loan Portfolio Analysis as of December 31, 2022

	Total Commercial Loans
			Watch Credits						Percent of Loan Category in Watch Credit
Loan Category	All Loans		Performing		Non-accrual		Total
	(Dollars in thousands)
Land	$	9,285	$	180	$	—	$	180	1.9	%
Land Development	16,220		—		—		—		—
Construction	114,277		—		—		—		—
Income Producing	469,696		6,177		—		6,177		1.3
Owner Occupied	426,404		16,525		—		16,525		3.9
Total Commercial Real Estate Loans	$	1,035,882	$	22,882	$	—	$	22,882	2.2
Other Commercial Loans	$	430,971	$	9,157	38		$	9,195	2.1
Total non-performing commercial loans					$	38

Commercial Loan Portfolio Analysis as of December 31, 2021

	Total Commercial Loans
			Watch Credits						Percent of Loan Category in Watch Credit
Loan Category	All Loans		Performing		Non-accrual		Total
	(Dollars in thousands)
Land	$	13,621	$	114	$	—	$	114	0.8	%
Land Development	14,854		32		—		32		0.2
Construction	67,663		—		—		—		—
Income Producing	402,936		2,215		—		2,215		0.5
Owner Occupied	360,614		21,960		—		21,960		6.1
Total Commercial Real Estate Loans	$	859,688	$	24,321	$	—	$	24,321	2.8
Other Commercial Loans	$	343,893	$	12,546	62		$	12,608	3.7
Total non-performing commercial loans					$	62

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