Independent Bank (IBCP) 8-K Independent Bank Corporation Reports First Quarter 2006 Results

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data

Non-performing assets

	March 31, 2006			December 31, 2005
	(dollars in thousands)
Non-accrual loans	$	17,407		$	13,057
Loans 90 days or more past due and
still accruing interest		4,129			4,862
Restructured loans		77			84
Total non-performing loans		21,613			18,003
Other real estate		2,599			2,147
Total non-performing assets	$	24,212		$	20,150
As a percent of Portfolio Loans
Non-performing loans		0.83	%		0.70	%
Allowance for loan losses		0.90			0.90
Non-performing assets to total assets		0.71			0.60
Allowance for loan losses as a percent of
non-performing loans		109			128

Allowance for loan losses

	Three months ended March 31,
	2006						2005
	Loan Losses			Unfunded Commitments			Loan Losses			Unfunded Commitments
	(in thousands)
Balance at beginning of period	$	23,035		$	1,820		$	24,737		$	1,846
Additions (deduction)
Provision charged to operating expense		1,588			(2	)		1,613			(7	)
Recoveries credited to allowance		635						419
Loans charged against the allowance		(1,764	)					(2,141	)
Balance at end of period	$	23,494		$	1,818		$	24,628		$	1,839
Net loans charged against the allowance to
average Portfolio Loans (annualized)		0.17%						0.30%

Alternative Sources of Funds

	March 31, 2006							December 31, 2005
	Amount		Average Maturity		Rate			Amount		Average Maturity		Rate
	(dollars in thousands)
Brokered CDs(1)	$	1,026,004		1.7 years		4.05	%	$	1,009,804		1.8 years		3.79	%
Fixed rate FHLB advances(1)		51,964		5.9 years		5.64			51,525		6.2 years		5.65
Variable rate FHLB advances(1)									25,000		0.5 years		4.18
Securities sold under agreements to
Repurchase(1)		100,509		0.1 years		4.82			137,903		0.1 years		4.41
Federal funds purchased		133,215		1 day		5.00			80,299		1 day		4.23
Total	$	1,311,692		1.6 years		4.27	%	$	1,304,531		1.7 years		3.96	%

⁽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

	March 31, 2006			December 31, 2005
	(in thousands)
Unsecured debt	$	6,500		$	7,000
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		21,725			21,991
Capital surplus		172,772			179,913
Retained earnings		49,701			41,486
Accumulated other comprehensive income		4,569			4,869
Total shareholders' equity		248,767			248,259
Total capitalization	$	317,617		$	317,609

Non-Interest Income

	Three months ended March 31,
	2006		2005
	(in thousands)
Service charges on deposit
accounts	$	4,242	$	4,042
Mepco litigation settlement		2,800
Net gains (losses) on assets sales
Real estate mortgage loans		1,026		1,388
Securities				(32	)
VISA check card interchange income		791		622
Real estate mortgage loan servicing		653		1,064
Title insurance fees		442		497
Bank owned life insurance		392		389
Mutual fund and annuity commissions		295		292
Manufactured home loan origination fees
and commissions		239		274
Other		1,432		1,189
Total non-interest income	$	12,312	$	9,725

Real Estate Mortgage Loan Activity

	Three months ended March 31,
	2006			2005
	(in thousands)
Real estate mortgage loans originated	$	118,651		$	146,962
Real estate mortgage loans sold		60,247			87,918
Real estate mortgage loans sold with servicing rights released		7,444			10,298
Net gains on the sale of real estate mortgage loans		1,026			1,388
Net gains as a percent of real estate mortgage loans sold
("Loans Sale Margin")		1.70	%		1.58	%
SFAS #133 adjustments included in the Loan Sale Margin		0.21			0.06

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Capitalized Real Estate Mortgage Loan Servicing Rights

	Three months ended March 31,
	2006			2005
	(in thousands)
Balance at beginning of period	$	13,439		$	11,360
Originated servicing rights capitalized		634			755
Amortization		(345	)		(479	)
(Increase)/decrease in impairment reserve					619
Balance at end of period	$	13,728		$	12,255
Impairment reserve at end of period	$	11		$	147

Non-Interest Expense

	Three months ended March 31,
	2006		2005
	(in thousands)
Salaries	$	9,417	$	8,379
Performance-based compensation and benefits		1,780		2,120
Other benefits		2,806		2,980
Compensation and employee benefits		14,003		13,479
Occupancy, net		2,768		2,238
Furniture, fixtures and equipment		1,831		1,798
Mepco claims expense		1,700
Data processing		1,404		1,143
Communications		1,058		1,076
Advertising		1,020		979
Credit card and bank service fees		953		621
Loan and collection		839		956
Amortization of intangible assets		643		693
Legal and professional		562		791
Supplies		527		610
Other		1,482		1,642
Total non-interest expense	$	28,790	$	26,026

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Average Balances and Tax Equivalent Rates

	Three Months Ended March 31,
	2006							2005
	Average Balance		Interest		Rate			Average Balance		Interest		Rate
Assets	(dollars in thousands)
Taxable loans(1)	$	2,603,408	$	49,849		7.73	%	$	2,298,934	$	41,106		7.22	%
Tax-exempt loans(1,2)		5,894		105		7.22			6,569		122		7.53
Taxable securities		220,333		2,848		5.24			304,285		3,692		4.92
Tax-exempt securities(2)		255,798		4,533		7.19			244,331		4,026		6.68
Other investments		17,437		223		5.19			17,384		212		4.95
Interest Earning Assets		3,102,870		57,558		7.50			2,871,503		49,158		6.92
Cash and due from banks		54,357							62,876
Other assets, net		204,781							189,128
Total Assets	$	3,362,008						$	3,123,507
Liabilities
Savings and NOW	$	878,731		2,988		1.38		$	881,454		1,674		0.77
Time deposits		1,529,782		14,983		3.97			1,093,119		7,500		2.78
Long-term debt		4,994		57		4.63			6,994		80		4.56
Other borrowings		322,374		4,267		5.37			541,637		4,882		3.66
Interest Bearing Liabilities		2,735,881		22,295		3.30			2,523,204		14,136		2.27
Demand deposits		275,597							275,130
Other liabilities		102,345							88,623
Shareholders' equity		248,185							236,550
Total liabilities and shareholders' equity	$	3,362,008						$	3,123,507
Tax Equivalent Net Interest Income			$	35,263						$	35,022
Tax Equivalent Net Interest Income
as a Percent of Earning Assets						4.59	%						4.92	%

(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%

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