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

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data

Exhibit 99.2

Non-performing assets

	September 30, 2005			December 31, 2004
	(dollars in thousands)
Non-accrual loans	$	23,211		$	11,804
Loans 90 days or more past due and
still accruing interest		4,141			3,123
Restructured loans		90			218
Total non-performing loans		27,442			15,145
Other real estate		1,806			2,113
Total non-performing assets	$	29,248		$	17,258
As a percent of Portfolio Loans
Non-performing loans		1.10	%		0.68	%
Allowance for loan losses		1.06			1.11
Non-performing assets to total assets		.88			0.56
Allowance for loan losses as a percent of
non-performing loans		96			163

Allowance for loan losses

	Nine months ended September 30,
	2005						2004
	Loan Losses			Unfunded Commitments			Loan Losses			Unfunded Commitments
	(in thousands)
Balance at beginning of period	$	24,737		$	1,846		$	16,836		$	892
Additions (deduction)
Allowance on loans acquired								8,236
Provision charged to operating expense		5,854			(132	)		3,078			888
Recoveries credited to allowance		1,181						923
Loans charged against the allowance		(5,422	)					(3,532	)
Balance at end of period	$	26,350		$	1,714		$	25,541		$	1,780
Net loans charged against the allowance to
average Portfolio Loans (annualized)		0.24	%					0.19	%

Alternate Sources of Funds

	September 30, 2005							December 31, 2004
	Amount		Average Maturity		Rate			Amount		Average Maturity		Rate
	(dollars in thousands)
Brokered CDs(1)	$	893,926		2.0 years		3.42	%	$	576,944		1.9 years		2.56	%
Fixed rate FHLB advances(1)		52,586		6.3 years		5.63			59,902		6.4 years		5.55
Variable rate FHLB advances(1)		52,000		0.4 years		3.95			164,000		0.4 years		2.32
Securities sold under agreements to
Repurchase(1)		152,370		0.1 years		3.85			169,810		0.2 years		2.27
Federal funds purchased		108,229		1 day		4.02			117,552		1 day		2.44
Total	$	1,259,111		1.7 years		3.64	%	$	1,088,208		1.4 years		2.63	%

⁽¹⁾     Certain of these items have had their average maturity and rate altered through the use of derivative instruments, including pay-fixed and pay-variable interest rate swaps.

Capitalization

	September 30, 2005			December 31, 2004
	(in thousands)
Unsecured debt	$	7,500		$	9,000
Subordinated debentures		64,197			64,197
Amount not qualifying as regulatory capital		(1,847	)		(1,847	)
Amount qualifying as regulatory capital		62,350			62,350
Shareholders' Equity
Preferred stock, no par value
Common stock, par value $1.00 per share		22,232			21,195
Capital surplus		186,846			158,797
Retained earnings		34,428			41,795
Accumulated other comprehensive income		8,204			8,505
Total shareholders' equity		251,710			230,292
Total capitalization	$	321,560		$	301,642

Non-Interest Income

	Three months ended September 30,					Nine months ended September 30,
	2005			2004		2005		2004
	(in thousands)
Service charges on deposit accounts	$	5,042		$	4,620	$	14,042	$	12,519
Net gains (losses) on asset sales
Real estate mortgage loans		1,508			1,381		4,203		4,603
Securities		(23	)		1,561		1,228		2,056
Title insurance fees		494			496		1,459		1,579
VISA check card interchange income		713			546		2,020		1,454
Bank owned life insurance		393			363		1,150		1,091
Manufactured home loan origination fees
and commissions		294			314		905		923
Mutual fund and annuity commissions		276			332		973		975
Real estate mortgage loan servicing		836			77		2,074		1,158
Other		1,408			1,144		3,782		3,181
Total non-interest income	$	10,941		$	10,834	$	31,836	$	29,539

Real Estate Mortgage Loan Activity

	Three months ended September 30,						Nine months ended September 30,
	2005			2004			2005			2004
	(in thousands)
Real estate mortgage loans originated	$	174,113		$	163,707		$	508,073		$	522,702
Real estate mortgage loans sold		101,703			80,576			285,576			287,206
Real estate mortgage loans sold with servicing
rights released		11,945			14,070			33,467			38,315
Net gains on the sale of real estate mortgage loans		1,508			1,381			4,203			4,603
Net gains as a percent of real estate mortgage
loans sold ("Loan Sale Margin")		1.48	%		1.71	%		1.47	%		1.60	%
SFAS #133 adjustments included in the Loan
Sale Margin		0.08	%		0.13	%		0.04	%		0.02	%

Capitalized Real Estate Mortgage Loan Servicing Rights

	Three months ended September 30,						Nine months ended September 30,
	2005			2004			2005			2004
	(in thousands)
Balance at beginning of period	$	12,315		$	10,154		$	11,360		$	8,873
Servicing rights acquired					1,138						1,138
Originated servicing rights capitalized		875			643			2,454			2,443
Amortization		(510	)		(376	)		(1,468	)		(1,457	)
(Increase)/decrease in impairment reserve		378			(436	)		712			126
Balance at end of period	$	13,058		$	11,123		$	13,058		$	11,123
Impairment reserve at end of period	$	54		$	596		$	54		$	596

Non-Interest Expense

	Three months ended September 30,				Nine months ended September 30,
	2005		2004		2005		2004
	(in thousands)
Salaries	$	9,487	$	8,816	$	26,525	$	24,207
Performance-based compensation
and benefits		2,089		1,452		6,207		4,216
Other benefits		2,626		2,335		8,126		7,133
Compensation and employee
benefits		14,202		12,603		40,858		35,556
Occupancy, net		2,182		1,981		6,523		5,618
Furniture and fixtures		1,637		1,608		5,150		4,473
Mepco claims expense								2,700
Data processing		1,350		1,169		3,740		3,332
Advertising		1,128		1,274		3,206		2,879
Loan and collection		1,034		1,035		3,118		2,659
Communications		989		917		2,973		2,582
Legal and professional		729		1,155		2,082		1,995
Amortization of intangible assets		693		746		2,080		1,723
Supplies		537		461		1,761		1,561
Write-off of uncompleted software								977
Other		2,544		2,572		7,566		6,351
Total non-interest expense	$	27,025	$	25,521	$	79,057	$	72,406

Average Balances and Tax Equivalent Rates

	Three Months Ended September 30,
	2005							2004
	Average Balance		Interest		Rate			Average Balance		Interest		Rate
Assets	(dollars in thousands)
Taxable loans(1)	$	2,465,256	$	46,036		7.43	%	$	2,184,861	$	37,447		6.83	%
Tax-exempt loans(1,2)		6,019		114		7.51			6,977		130		7.41
Taxable securities		257,707		3,304		5.09			284,528		3,275		4.58
Tax-exempt securities(2)		261,829		4,396		6.66			222,002		3,867		6.93
Other investments		17,322		199		4.56			19,573		203		4.13
Interest Earning Assets		3,008,133		54,049		7.14			2,717,941		44,922		6.59
Cash and due from banks		60,870							67,192
Other assets, net		192,710							169,230
Total Assets	$	3,261,713						$	2,954,363
Liabilities
Savings and NOW	$	866,789		2,209		1.01		$	876,259		1,228		0.56
Time deposits		1,268,303		10,477		3.28			1,004,803		6,627		2.62
Long-term debt		5,995		69		4.57			7,995		77		3.84
Other borrowings		488,942		5,371		4.36			491,978		4,081		3.30
Interest Bearing Liabilities		2,630,029		18,126		2.73			2,381,035		12,013		2.01
Demand deposits		294,108							279,288
Other liabilities		89,459							77,869
Shareholders' equity		248,117							216,171
Total liabilities and shareholders' equity	$	3,261,713						$	2,954,363
Tax Equivalent Net Interest Income			$	35,923						$	32,909
Tax Equivalent Net Interest Income
as a Percent of Earning Assets						4.75	%						4.83	%

(1) All domestic

(2) Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 35%

Average Balances and Tax Equivalent Rates

	Nine Months Ended September 30,
	2005							2004
	Average Balance		Interest		Rate			Average Balance		Interest		Rate
Assets	(dollars in thousands)
Taxable loans(1)	$	2,383,723	$	131,051		7.34	%	$	1,921,632	$	99,731		6.93	%
Tax-exempt loans(1,2)		6,294		352		7.48			6,819		381		7.46
Taxable securities		283,090		10,557		4.99			265,257		9,366		4.72
Tax-exempt securities(2)		253,885		12,738		6.71			206,072		10,936		7.09
Other investments		17,359		534		4.11			15,951		537		4.50
Interest Earning Assets		2,944,351		155,232		7.04			2,415,731		120,951		6.68
Cash and due from banks		60,448							52,889
Other assets, net		191,196							146,968
Total Assets	$	3,195,995						$	2,615,588
Liabilities
Savings and NOW	$	875,335		5,750		0.88		$	787,986		3,195		0.54
Time deposits		1,181,408		26,774		3.03			864,957		16,880		2.61
Long-term debt		6,491		223		4.59			3,560		101		3.82
Other borrowings		519,081		15,486		3.99			473,765		12,061		3.43
Interest Bearing Liabilities		2,582,315		48,233		2.50			2,130,268		32,237		2.02
Demand deposits		280,498							226,162
Other liabilities		89,735							70,794
Shareholders' equity		243,447							188,364
Total liabilities and shareholders' equity	$	3,195,995						$	2,615,588
Tax Equivalent Net Interest Income			$	106,999						$	88,714
Tax Equivalent Net Interest Income
as a Percent of Earning Assets						4.85	%						4.90	%

(1) All domestic

(2) Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 35%