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

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data

Exhibit 99.2

Non-performing assets

	March 31, 2007			December 31, 2006
	(dollars in thousands)
Non-accrual loans	$	41,075		$	35,683
Loans 90 days or more past due and
still accruing interest		6,941			3,479
Restructured loans		55			60
Total non-performing loans		48,071			39,222
Other real estate		3,631			3,153
Total non-performing assets	$	51,702		$	42,375
As a percent of Portfolio Loans
Non-performing loans		1.93	%		1.58	%
Allowance for loan losses		1.22			1.08
Non-performing assets to total assets		1.54			1.24
Allowance for loan losses as a percent of
non-performing loans		63			69

Allowance for loan losses

	Three months ended March 31,
	2007					2006
	Loan Losses			Unfunded Commitments		Loan Losses			Unfunded Commitments
	(in thousands)
Balance at beginning of period	$	26,879		$	1,881	$	22,420		$	1,820
Additions (deduction)
Provision charged to operating expense		7,339			150		1,388			(2	)
Recoveries credited to allowance		555					630
Loans charged against the allowance		(4,515	)				(1,714	)
Balance at end of period	$	30,258		$	2,031	$	22,724		$	1,818
Net loans charged against the allowance to
average Portfolio Loans (annualized)		0.65	%				0.18	%

Alternative Sources of Funds

	March 31, 2007							December 31, 2006
	Amount		Average Maturity		Rate			Amount		Average Maturity		Rate
	(dollars in thousands)
Brokered CDs(1)	$	882,128		1.8 years		4.91	%	$	1,055,010		1.9 years		4.72	%
Fixed rate FHLB advances(1)		43,270		5.9 years		6.09			58,272		4.6 years		5.66
Variable rate FHLB advances(1)									2,000		0.5 years		5.31
Securities sold under agreements to
Repurchase(1)									83,431		0.1 years		5.34
Federal funds purchased									84,081		1 day		5.40
Total	$	925,398		2.0 years		4.96	%	$	1,282,794		1.8 years		4.85	%

                ⁽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.

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Capitalization

	March 31, 2007			December 31, 2006
	(in thousands)
Unsecured debt	$	4,500		$	5,000
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		22,584			22,865
Capital surplus		194,902			200,241
Retained earnings		31,353			31,420
Accumulated other comprehensive income		3,407			3,641
Total shareholders' equity		252,246			258,167
Total capitalization	$	319,096		$	325,517

Non-Interest Income

	Three months ended
	March 31, 2007		December 31, 2006		March 31, 2006
	(in thousands)
Service charges on deposit
accounts	$	4,888	$	5,152	$	4,468
Mepco litigation settlement						2,800
Net gains on assets sales
Real estate mortgage loans		1,081		1,264		1,026
Securities		79
VISA check card interchange income		950		900		791
Real estate mortgage loan servicing		527		605		653
Mutual fund and annuity commissions		479		321		295
Bank owned life insurance		449		433		392
Title insurance fees		414		426		442
Manufactured home loan origination fees
and commissions		114		184		239
Other		1,689		1,461		1,432
Total non-interest income	$	10,670	$	10,746	$	12,538

Real Estate Mortgage Loan Activity

	Three months ended
	March 31, 2007			December 31, 2006			March 31, 2006
	(in thousands)
Real estate mortgage loans originated	$	116,815		$	125,031		$	118,651
Real estate mortgage loans sold		69,212			72,298			60,247
Real estate mortgage loans sold with servicing rights released		11,679			11,436			7,444
Net gains on the sale of real estate mortgage loans		1,081			1,264			1,026
Net gains as a percent of real estate mortgage loans sold
("Loan Sale Margin")		1.56	%		1.75	%		1.70	%
SFAS #133 adjustments included in the Loan Sale Margin		(0.04	)%		.15	%		0.21	%

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Capitalized Real Estate Mortgage Loan Servicing Rights

	Three months ended March 31,
	2007			2006
	(in thousands)
Balance at beginning of period	$	14,782		$	13,439
Originated servicing rights capitalized		686			634
Amortization		(407	)		(345	)
(Increase)/decrease in impairment reserve		(100	)
Balance at end of period	$	14,961		$	13,728
Impairment reserve at end of period	$	168		$	11

Non-Interest Expense

	Three months ended
	March 31, 2007		December 31, 2006		March 31, 2006
	(in thousands)
Salaries	$	10,001	$	9,380	$	9,376
Performance-based compensation and benefits		1,321		1,536		1,489
Other benefits		2,646		2,407		2,676
Compensation and employee benefits		13,968		13,323		13,541
Occupancy, net		2,614		2,311		2,687
Furniture, fixtures and equipment		1,900		1,874		1,783
Data processing		1,438		1,481		1,342
Advertising		1,152		988		987
Loan and collection		1,006		896		823
Credit card and bank service fees		967		959		907
Communications		830		852		991
Supplies		607		553		509
Amortization of intangible assets		570		600		600
Legal and professional		506		516		488
Branch acquisition and conversion costs		422
Goodwill impairment		343		2,963
Loss on receivable from warranty
payment plan seller				2,400
Other		1,643		1,372		1,580
Total non-interest expense	$	27,966	$	31,088	$	26,238

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Average Balances and Tax Equivalent Rates

	Three Months Ended March 31,
	2007							2006
	Average Balance		Interest		Rate			Average Balance		Interest		Rate
	(dollars in thousands)
Assets Taxable loans (1)	$	2,509,746	$	49,849		8.02	%	$	2,408,268	$	45,978		7.71	%
Tax-exempt loans (1,2)		9,513		160		6.82			5,894		105		7.22
Taxable securities		185,139		2,477		5.43			220,333		2,848		5.24
Tax-exempt securities (2)		238,654		4,121		7.00			255,798		4,533		7.19
Other investments		25,563		314		4.98			17,437		223		5.19
Interest Earning Assets -
Continuing Operations		2,968,615		56,921		7.74			2,907,730		53,687		7.46
Cash and due from banks		53,228							54,357
Taxable loans - discontinued operations		33,084							195,140
Other assets, net		205,532							204,781
Total Assets	$	3,260,459						$	3,362,008
Liabilities
Savings and NOW	$	903,426		4,249		1.91		$	878,731		2,988		1.38
Time deposits		1,506,171		18,159		4.89			1,362,322		12,939		3.85
Long-term debt		2,994		34		4.61			4,994		57		4.63
Other borrowings		199,667		3,270		6.64			322,374		4,267		5.37
Interest Bearing Liabilities-
Continuing Operations		2,612,258		25,712		3.99			2,568,421		20,251		3.20
Demand deposits		282,172							275,597
Time deposits - discontinued operations		24,732							167,460
Other liabilities		81,636							102,345
Shareholders' equity		259,661							248,185
Total liabilities and shareholders' equity	$	3,260,459						$	3,362,008
Tax Equivalent Net Interest Income			$	31,209						$	33,436
Tax Equivalent Net Interest Income
as a Percent of Earning Assets						4.23	%						4.64	%

(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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