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

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets

	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
	(Dollars in thousands)
Non-accrual loans	$	6,216		$	5,381		$	5,307		$	5,859		$	5,893
Loans 90 days or more past due and still accruing interest	—			—			—			—			—
Subtotal	6,216			5,381			5,307			5,859			5,893
Less:  Government guaranteed loans	2,330			1,660			1,491			1,360			859
Total non-performing loans	3,886			3,721			3,816			4,499			5,034
Other real estate and repossessed assets	499			455			348			508			438
Total non-performing assets	$	4,385		$	4,176		$	4,164		$	5,007		$	5,472
As a percent of Portfolio Loans
Non-performing loans	0.11		%	0.11		%	0.11		%	0.14		%	0.17		%
Allowance for credit losses	1.44			1.51			1.50			1.47			1.52
Non-performing assets to total assets	0.09			0.08			0.08			0.10			0.11
Allowance for credit losses as a percent of non-performing loans	1,300.82			1,409.16			1,340.20			1,064.30			906.38

Allowance for credit losses

	Three months ended March 31,
	2023							2022
	Loans			Securities		Unfunded Commitments		Loans			Securities		Unfunded Commitments
	(Dollars in thousands)
Balance at beginning of period	$	52,435		$	168	$	5,080	$	47,252		$	—	$	4,481
Additions (deductions)
Provision for credit losses	(832)			2,992		—		(1,573)			—		—
Recoveries credited to allowance	578			—		—		621			—		—
Assets charged against the allowance	(1,631)			(3,000)		—		(673)			—		—
Additions included in non-interest expense	—			—		(475)		—			—		(355)
Balance at end of period	$	50,550		$	160	$	4,605	$	45,627		$	—	$	4,126
Net loans charged (recovered) against the allowance to average Portfolio Loans	0.12		%					0.01		%

1

Capitalization

	March 31, 2023		December 31, 2022
	(In thousands)
Subordinated debt	$	39,452	$	39,433
Subordinated debentures	39,677		39,660
Amount not qualifying as regulatory capital	(676)		(657)
Amount qualifying as regulatory capital	78,453		78,436
Shareholders’ equity
Common stock	321,026		320,991
Retained earnings	127,499		119,368
Accumulated other comprehensive income (loss)	(80,811)		(92,763)
Total shareholders’ equity	367,714		347,596
Total capitalization	$	446,167	$	426,032

Non-Interest Income

	Three months ended
	March 31, 2023		December 31, 2022		March 31, 2022
	(In thousands)
Interchange income	$	3,205	$	3,402	$	3,082
Service charges on deposit accounts	2,857		3,153		2,957
Net gains (losses) on assets
Mortgage loans	1,256		1,486		835
Securities	(222)		—		70
Mortgage loan servicing, net	726		687		9,641
Investment and insurance commissions	827		728		738
Bank owned life insurance	111		58		138
Other	1,791		1,954		1,487
Total non-interest income	$	10,551	$	11,468	$	18,948

Capitalized Mortgage Loan Servicing Rights

	Three months ended March 31,
		2023		2022
		(In thousands)
Balance at beginning of period		$	42,489	$	26,232
Originated servicing rights capitalized		930		2,143
Change in fair value		(1,496)		7,558
Balance at end of period		$	41,923	$	35,933

2

Mortgage Loan Activity

	Three months ended
	March 31, 2023			December 31, 2022			March 31, 2022
	(Dollars in thousands)
Mortgage loans originated	$	113,021		$	138,889		$	270,194
Mortgage loans sold	106,846			80,584			221,725
Net gains on mortgage loans	1,256			1,486			835
Net gains as a percent of mortgage loans sold  ("Loan Sales Margin")	1.18		%	1.84		%	0.38		%
Fair value adjustments included in the Loan Sales Margin	1.20		%	0.19		%	(1.87)		%

Non-Interest Expense

	Three months ended
	March 31, 2023		December 31, 2022		March 31, 2022
	(In thousands)
Compensation	$	13,269	$	12,728	$	12,435
Performance-based compensation	2,245		4,147		3,662
Payroll taxes and employee benefits	3,825		3,519		4,033
Compensation and employee benefits	19,339		20,394		20,130
Data processing	2,991		2,670		2,216
Occupancy, net	2,159		2,225		2,543
Interchange expense	1,049		1,042		1,011
Furniture, fixtures and equipment	926		933		1,045
FDIC deposit insurance	783		572		522
Communications	668		629		757
Legal and professional	607		588		493
Loan and collection	578		679		559
Advertising	495		489		680
Amortization of intangible assets	137		146		232
Supplies	106		125		123
Correspondent bank service fees	63		67		77
Provision for loss reimbursement on sold loans	10		—		33
Net gains on other real estate and repossessed assets	(46)		—		(55)
Recoveries related to unfunded lending commitments	(475)		(77)		(355)
Other	1,567		1,609		1,439
Total non-interest expense	$	30,957	$	32,091	$	31,450

3

Average Balances and Tax Equivalent Rates

	Three Months Ended March 31,
	2023						2022
	Average Balance		Interest		Rate (2)		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	3,487,539	$	44,234	5.12	%	$	2,971,566	$	28,340	3.85	%
Tax-exempt loans (1)	6,630		76		4.65		8,532		99		4.71
Taxable securities	822,572		5,884		2.86		1,080,252		4,552		1.69
Tax-exempt securities (1)	323,503		3,506		4.34		326,973		2,015		2.47
Interest bearing cash	38,889		464		4.84		87,317		37		0.17
Other investments	17,653		211		4.85		18,117		180		4.03
Interest Earning Assets	4,696,786		54,375		4.67		4,492,757		35,223		3.16
Cash and due from banks	60,442						58,676
Other assets, net	231,212						169,772
Total Assets	$	4,988,440					$	4,721,205
Liabilities
Savings and interest-bearing checking	2,535,045		8,857		1.42		2,503,014		641		0.10
Time deposits	657,686		4,903		3.02		338,354		126		0.15
Other borrowings	112,137		1,735		6.27		108,969		973		3.62
Interest Bearing Liabilities	3,304,868		15,495		1.90	%	2,950,337		1,740		0.24
Non-interest bearing deposits	1,224,375						1,317,160
Other liabilities	102,477						77,698
Shareholders’ equity	$	356,720					$	376,010
Total liabilities and shareholders’ equity	$	4,988,440					$	4,721,205
Net Interest Income			$	38,880					$	33,483
Net Interest Income as a Percent of Average Interest Earning Assets					3.33	%					3.00	%

(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

4

Commercial Loan Portfolio Analysis as of March 31, 2023

	Total Commercial Loans
			Watch Credits						Percent of Loan Category in Watch Credit
Loan Category	All Loans		Performing		Non-accrual		Total
	(Dollars in thousands)
Land	$	11,583	$	26	$	—	$	26	0.2	%
Land Development	15,019		—		—		—		—
Construction	89,060		—		—		—		—
Income Producing	498,500		2,474		—		2,474		0.5
Owner Occupied	428,849		16,173		—		16,173		3.8
Total Commercial Real Estate Loans	$	1,043,011	$	18,673	$	—	$	18,673	1.8
Other Commercial Loans	$	428,282	$	8,370	36		$	8,406	2.0
Total non-performing commercial loans					$	36

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

5