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

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets

	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023
	(Dollars in thousands)
Non-accrual loans	$	5,974		$	5,355		$	6,991		$	6,969		$	6,876
Loans 90 days or more past due and still accruing interest	—			—			432			—			—
Subtotal	5,974			5,355			7,423			6,969			6,876
Less:  Government guaranteed loans	1,489			1,665			2,191			2,254			2,882
Total non-performing loans	4,485			3,690			5,232			4,715			3,994
Other real estate and repossessed assets	945			1,059			569			443			658
Total non-performing assets	$	5,430		$	4,749		$	5,801		$	5,158		$	4,652
As a percent of Portfolio Loans
Non-performing loans	0.12		%	0.10		%	0.14		%	0.13		%	0.11		%
Allowance for credit losses	1.46			1.47			1.44			1.48			1.49
Non-performing assets to total assets	0.10			0.09			0.11			0.10			0.09
Allowance for credit losses as a percent of non-performing loans	1,253.98			1,526.10			1,044.69			1,176.99			1,351.13

Allowance for credit losses

	Six months ended June 30,
	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	1,890			(1,127)		—		2,485			2,992		—
Recoveries credited to allowance	1,395			1,125		—		1,325			—		—
Assets charged against the allowance	(1,702)			—		—		(2,281)			(3,000)		—
Additions included in non-interest expense	—			—		(789)		—			—		(375)
Balance at end of period	$	56,241		$	155	$	4,715	$	53,964		$	160	$	4,705
Net loans charged (recovered) against the allowance to average Portfolio Loans	0.02		%					0.05		%

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Capitalization

	June 30, 2024		December 31, 2023
	(In thousands)
Subordinated debt	$	39,548	$	39,510
Subordinated debentures	39,762		39,728
Amount not qualifying as regulatory capital	(772)		(734)
Amount qualifying as regulatory capital	78,538		78,504
Shareholders’ equity
Common stock	317,676		317,483
Retained earnings	183,611		159,108
Accumulated other comprehensive income (loss)	(70,828)		(72,142)
Total shareholders’ equity	430,459		404,449
Total capitalization	$	508,997	$	482,953

Non-Interest Income

	Three months ended						Six months ended
	June 30, 2024		March 31, 2024		June 30, 2023		June 30,
							2024		2023
	(In thousands)
Interchange income	$	3,401	$	3,151	$	3,355	$	6,552	$	6,560
Service charges on deposit accounts	2,937		2,872		3,134		5,809		5,991
Net gains (losses) on assets
Mortgage loans	1,333		1,364		2,120		2,697		3,376
Equity securities at fair value	2,693		—		—		2,693		—
Securities	—		(269)		—		(269)		(222)
Mortgage loan servicing, net	2,091		2,725		3,674		4,816		4,400
Investment and insurance commissions	838		804		744		1,642		1,571
Bank owned life insurance	188		181		98		369		209
Other	1,691		1,733		2,292		3,424		4,083
Total non-interest income	$	15,172	$	12,561	$	15,417	$	27,733	$	25,968

Capitalized Mortgage Loan Servicing Rights

	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
	(In thousands)
Balance at beginning of period	$	43,577	$	41,923	$	42,243	$	42,489
Originated servicing rights capitalized	952		1,023		1,780		1,953
Change in fair value	(123)		1,481		383		(15)
Balance at end of period	$	44,406	$	44,427	$	44,406	$	44,427

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Mortgage Loan Activity

	Three months ended									Six months ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30,
										2024			2023
	(Dollars in thousands)
Mortgage loans originated	$	142,602		$	93,994		$	160,515		$	236,596		$	273,536
Mortgage loans sold	91,540			80,818			99,025			172,358			205,871
Net gains on mortgage loans	1,333			1,364			2,120			2,697			3,376
Net gains as a percent of mortgage loans sold  ("Loan Sales Margin")	1.46		%	1.69		%	2.14		%	1.56		%	1.64		%
Fair value adjustments included in the Loan Sales Margin	0.14		%	0.44		%	1.03		%	0.28		%	1.12		%

Non-Interest Expense

	Three months ended						Six months ended
	June 30, 2024		March 31, 2024		June 30, 2023		June 30,
							2024		2023
	(In thousands)
Compensation	$	13,390	$	13,277	$	13,523	$	26,667	$	26,792
Performance-based compensation	3,885		3,476		3,220		7,361		5,465
Payroll taxes and employee benefits	3,976		4,017		3,859		7,993		7,684
Compensation and employee benefits	21,251		20,770		20,602		42,021		39,941
Data processing	3,257		3,255		2,891		6,512		5,882
Occupancy, net	1,886		2,074		1,845		3,960		4,004
Interchange expense	1,127		1,097		1,054		2,224		2,103
Furniture, fixtures and equipment	948		954		929		1,902		1,855
FDIC deposit insurance	695		782		749		1,477		1,532
Advertising	788		491		431		1,279		926
Loan and collection	699		512		620		1,211		1,198
Communications	499		615		635		1,114		1,303
Legal and professional	544		486		473		1,030		1,080
Supplies	142		118		122		260		228
Amortization of intangible assets	129		129		137		258		274
Correspondent bank service fees	44		46		59		90		122
Provision for loss reimbursement on sold loans	(1)		3		4		2		14
Net (gains) losses on other real estate and repossessed assets	(108)		(76)		63		(184)		17
Costs (recoveries) related to unfunded lending commitments	(137)		(652)		100		(789)		(375)
Other	1,570		1,589		1,534		3,159		3,101
Total non-interest expense	$	33,333	$	32,193	$	32,248	$	65,526	$	63,205

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Average Balances and Tax Equivalent Rates

	Three Months Ended June 30,
	2024						2023
	Average Balance		Interest		Rate (2)		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	3,840,343	$	56,697	5.93	%	$	3,561,333	$	47,617	5.36	%
Tax-exempt loans (1)	8,856		113		5.13		6,587		78		4.75
Taxable securities	633,400		4,713		2.98		789,078		5,919		3.00
Tax-exempt securities (1)	311,035		3,551		4.57		322,592		3,499		4.34
Interest bearing cash	83,293		1,134		5.48		66,023		837		5.08
Other investments	16,440		305		7.46		17,682		230		5.22
Interest Earning Assets	4,893,367		66,513		5.45		4,763,295		58,180		4.89
Cash and due from banks	50,652						55,945
Other assets, net	237,298						225,506
Total Assets	$	5,181,317					$	5,044,746
Liabilities
Savings and interest-bearing checking	2,674,731		14,190		2.13		2,519,009		10,515		1.67
Time deposits	807,033		8,686		4.33		761,705		6,946		3.66
Other borrowings	130,208		2,116		6.54		134,907		2,137		6.35
Interest Bearing Liabilities	3,611,972		24,992		2.78	%	3,415,621		19,598		2.30
Non-interest bearing deposits	1,050,153						1,167,129
Other liabilities	104,643						97,853
Shareholders’ equity	414,549						364,143
Total liabilities and shareholders’ equity	$	5,181,317					$	5,044,746
Net Interest Income			$	41,521					$	38,582
Net Interest Income as a Percent of Average Interest Earning Assets					3.40	%					3.24	%

(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

	Six Months Ended June 30,
	2024						2023
	Average Balance		Interest		Rate		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	3,821,164	$	111,652	5.87	%	$	3,524,639	$	91,851	5.24	%
Tax-exempt loans (1)	8,699		224		5.18		6,608		154		4.70
Taxable securities	656,766		9,964		3.03		805,733		11,803		2.93
Tax-exempt securities (1)	315,021		7,099		4.51		323,045		6,854		4.24
Interest bearing cash	83,738		2,277		5.47		52,531		1,301		4.99
Other investments	16,630		603		7.29		17,668		441		5.03
Interest Earning Assets	4,902,018		131,819		5.40		4,730,224		112,404		4.78
Cash and due from banks	53,101						58,182
Other assets, net	236,266						228,342
Total Assets	$	5,191,385					$	5,016,748
Liabilities
Savings and interest-bearing checking	2,654,125		27,557		2.09		2,526,982		19,372		1.55
Time deposits	835,852		18,129		4.36		709,983		11,849		3.37
Other borrowings	129,731		4,235		6.56		123,585		3,872		6.32
Interest Bearing Liabilities	3,619,708		49,921		2.77	%	3,360,550		35,093		2.11
Non-interest bearing deposits	1,056,803						1,195,593
Other liabilities	105,987						100,152
Shareholders’ equity	408,887						360,453
Total liabilities and shareholders’ equity	$	5,191,385					$	5,016,748
Net Interest Income			$	81,898					$	77,311
Net Interest Income as a Percent of Average Interest Earning Assets					3.35	%					3.28	%

(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 June 30, 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	$	10,825	$	—	$	—	$	—	—	%
Land Development	17,663		—		—		—		—
Construction	155,299		—		—		—		—
Income Producing	572,179		4,215		—		4,215		0.7
Owner Occupied	483,992		14,447		—		14,447		3.0
Total Commercial Real Estate Loans	$	1,239,958	$	18,662	$	—	$	18,662	1.5
Other Commercial Loans	$	492,395	$	19,011	312		$	19,323	3.9
Total non-performing commercial loans					$	312

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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