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, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
	(Dollars in thousands)
Non-accrual loans	$	5,355		$	6,991		$	6,969		$	6,876		$	6,216
Loans 90 days or more past due and still accruing interest	—			432			—			—			—
Subtotal	5,355			7,423			6,969			6,876			6,216
Less:  Government guaranteed loans	1,665			2,191			2,254			2,882			2,330
Total non-performing loans	3,690			5,232			4,715			3,994			3,886
Other real estate and repossessed assets	1,060			569			443			658			499
Total non-performing assets	$	4,750		$	5,801		$	5,158		$	4,652		$	4,385
As a percent of Portfolio Loans
Non-performing loans	0.10		%	0.14		%	0.13		%	0.11		%	0.11		%
Allowance for credit losses	1.47			1.44			1.48			1.49			1.44
Non-performing assets to total assets	0.09			0.11			0.10			0.09			0.09
Allowance for credit losses as a percent of non-performing loans	1,526.10			1,044.69			1,176.99			1,351.13			1,300.82

Allowance for credit losses

	Three months ended March 31,
	2024							2023
	Loans			Securities		Unfunded Commitments		Loans			Securities		Unfunded Commitments
	(Dollars in thousands)
Balance at beginning of period	$	54,658		$	157	$	5,504	$	52,435		$	168	$	5,080
Additions (deductions)
Provision for credit losses	1,871			(1,127)		—		(832)			2,992		—
Recoveries credited to allowance	596			1,125		—		578			—		—
Assets charged against the allowance	(812)			—		—		(1,631)			(3,000)		—
Additions included in non-interest expense	—			—		(652)		—			—		(475)
Balance at end of period	$	56,313		$	155	$	4,852	$	50,550		$	160	$	4,605
Net loans charged (recovered) against the allowance to average Portfolio Loans	0.02		%					0.12		%

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Capitalization

	March 31, 2024		December 31, 2023
	(In thousands)
Subordinated debt	$	39,529	$	39,510
Subordinated debentures	39,745		39,728
Amount not qualifying as regulatory capital	(753)		(734)
Amount qualifying as regulatory capital	78,521		78,504
Shareholders’ equity
Common stock	317,099		317,483
Retained earnings	170,100		159,108
Accumulated other comprehensive income (loss)	(71,629)		(72,142)
Total shareholders’ equity	415,570		404,449
Total capitalization	$	494,091	$	482,953

Non-Interest Income

	Three months ended
	March 31, 2024		December 31, 2023		March 31, 2023
	(In thousands)
Interchange income	$	3,151	$	3,336	$	3,205
Service charges on deposit accounts	2,872		3,061		2,857
Net gains (losses) on assets
Mortgage loans	1,364		1,961		1,256
Securities	(269)		—		(222)
Mortgage loan servicing, net	2,725		(2,442)		726
Investment and insurance commissions	804		1,010		827
Bank owned life insurance	181		141		111
Other	1,733		2,030		1,791
Total non-interest income	$	12,561	$	9,097	$	10,551

Capitalized Mortgage Loan Servicing Rights

	Three months ended March 31,
		2024		2023
		(In thousands)
Balance at beginning of period		$	42,243	$	42,489
Originated servicing rights capitalized		828		930
Change in fair value		506		(1,496)
Balance at end of period		$	43,577	$	41,923

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Mortgage Loan Activity

	Three months ended
	March 31, 2024			December 31, 2023			March 31, 2023
	(Dollars in thousands)
Mortgage loans originated	$	93,994		$	108,011		$	113,021
Mortgage loans sold	80,818			86,473			106,846
Net gains on mortgage loans	1,364			1,961			1,256
Net gains as a percent of mortgage loans sold  ("Loan Sales Margin")	1.69		%	2.27		%	1.18		%
Fair value adjustments included in the Loan Sales Margin	0.44		%	0.69		%	1.20		%

Non-Interest Expense

	Three months ended
	March 31, 2024		December 31, 2023		March 31, 2023
	(In thousands)
Compensation	$	13,277	$	12,656	$	13,269
Performance-based compensation	3,476		2,644		2,245
Payroll taxes and employee benefits	4,017		3,749		3,825
Compensation and employee benefits	20,770		19,049		19,339
Data processing	3,255		2,909		2,991
Occupancy, net	2,074		1,933		2,159
Interchange expense	1,097		1,110		1,049
Furniture, fixtures and equipment	954		974		926
FDIC deposit insurance	782		796		783
Communications	615		535		668
Loan and collection	512		456		578
Advertising	491		879		495
Legal and professional	486		585		607
Amortization of intangible assets	129		137		137
Supplies	118		138		106
Correspondent bank service fees	46		55		63
Provision for loss reimbursement on sold loans	3		(1)		10
Net (gains) losses on other real estate and repossessed assets	(76)		1		(46)
Costs (recoveries) related to unfunded lending commitments	(652)		348		(475)
Other	1,589		1,974		1,567
Total non-interest expense	$	32,193	$	31,878	$	30,957

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Average Balances and Tax Equivalent Rates

	Three Months Ended March 31,
	2024						2023
	Average Balance		Interest		Rate (2)		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	3,801,985	$	54,955	5.80	%	$	3,487,539	$	44,234	5.12	%
Tax-exempt loans (1)	8,541		111		5.23		6,630		76		4.65
Taxable securities	680,133		5,251		3.09		822,572		5,884		2.86
Tax-exempt securities (1)	319,007		3,548		4.45		323,503		3,355		4.15
Interest bearing cash	84,182		1,143		5.46		38,889		464		4.84
Other investments	16,821		298		7.13		17,653		211		4.85
Interest Earning Assets	4,910,669		65,306		5.34		4,696,786		54,224		4.67
Cash and due from banks	55,550						60,442
Other assets, net	235,233						231,212
Total Assets	$	5,201,452					$	4,988,440
Liabilities
Savings and interest-bearing checking	2,633,519		13,367		2.04		2,535,045		8,857		1.42
Time deposits	864,672		9,443		4.39		657,686		4,903		3.02
Other borrowings	129,255		2,119		6.59		112,137		1,735		6.27
Interest Bearing Liabilities	3,627,446		24,929		2.76	%	3,304,868		15,495		1.90
Non-interest bearing deposits	1,063,454						1,224,375
Other liabilities	107,327						102,477
Shareholders’ equity	403,225						356,720
Total liabilities and shareholders’ equity	$	5,201,452					$	4,988,440
Net Interest Income			$	40,377					$	38,729
Net Interest Income as a Percent of Average Interest Earning Assets					3.30	%					3.32	%

(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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Commercial Loan Portfolio Analysis as of March 31, 2024

	Total Commercial Loans
			Watch Credits						Percent of Loan Category in Watch Credit
Loan Category	All Loans		Performing		Non-accrual		Total
	(Dollars in thousands)
Land	$	10,356	$	—	$	—	$	—	—	%
Land Development	16,784		—		—		—		—
Construction	135,236		—		—		—		—
Income Producing	593,286		4,285		—		4,285		0.7
Owner Occupied	490,023		14,418		—		14,418		2.9
Total Commercial Real Estate Loans	$	1,245,685	$	18,703	$	—	$	18,703	1.5
Other Commercial Loans	$	489,599	$	20,652	25		$	20,677	4.2
Total non-performing commercial loans					$	25

Commercial Loan Portfolio Analysis as of December 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	$	10,620	$	1	$	—	$	1	0.0	%
Land Development	17,966		—		—		—		—
Construction	101,178		—		—		—		—
Income Producing	625,927		4,177		—		4,177		0.7
Owner Occupied	449,287		15,165		—		15,165		3.4
Total Commercial Real Estate Loans	$	1,204,978	$	19,343	$	—	$	19,343	1.6
Other Commercial Loans	$	474,753	$	16,537	28		$	16,565	3.5
Total non-performing commercial loans					$	28

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