Independent Bank (IBCP) 8-K Independent Bank Corporation Reports Increase In Second Quarter 2008 Earnings

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data

Non-performing assets

	June 30,			December 31,
	2008			2007
	(dollars in thousands)
Non-accrual loans	$	109,844		$	72,682
Loans 90 days or more past due and still accruing interest		1,560			4,394
Restructured loans					173
Total non-performing loans		111,404			77,249
Other real estate		11,098			9,723
Total non-performing assets	$	122,502		$	86,972
As a percent of Portfolio Loans
Non-performing loans		4.34	%		3.03	%
Allowance for loan losses		1.99			1.78
Non-performing assets to total assets		3.78			2.65
Allowance for loan losses as a percent of non-performing loans		46			59

Allowance for loan losses

	Six months ended
	June 30,
	2008						2007
				Unfunded						Unfunded
	Loans			Commitments			Loans			Commitments
	(in thousands)
Balance at beginning of period	$	45,294		$	1,936		$	26,879		$	1,881
Additions (deduction)
Provision charged to operating expense		23,875			(207	)		22,658			374
Recoveries credited to allowance		1,099						1,140
Loans charged against the allowance		(19,164	)					(12,464	)
Balance at end of period	$	51,104		$	1,729		$	38,213		$	2,255
Net loans charged against the allowance to average Portfolio Loans (annualized)		1.43	%					0.92	%

Alternative Sources of Funds

	June 30,						December 31,
	2008						2007
			Average						Average
	Amount		Maturity	Rate			Amount		Maturity	Rate
	(dollars in thousands)
Brokered CDs(1,2)	$	112,539	1.8 years		4.24	%	$	516,077	1.9 years		4.72	%
Fixed rate FHLB advances(1)		396,925	2.1 years		3.15			240,509	1.3 years		4.81
Variable rate FHLB advances(1)								20,000	.3 years		4.35
Securities sold under agreements to Repurchase(1)		35,000	2.4 years		4.42			35,000	2.9 years		4.42
FRB — Discount borrowing		269,000	.2 years		2.25
Federal funds purchased		40,671	1 day		2.25			54,452	1 day		4.00
Total	$	854,135	1.4 years		3.02	%	$	866,038	1.6 years		4.68	%

(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

	June 30,			December 31,
	2008			2007
	(in thousands)
Unsecured debt				$	3,000
Subordinated debentures	$	92,888			92,888
Amount not qualifying as regulatory capital		(2,788	)		(2,788	)
Amount qualifying as regulatory capital		90,100			90,100
Shareholders’ Equity
Preferred stock, no par value
Common stock, par value $1.00 per share		22,773			22,601
Capital surplus		196,819			195,302
Retained earnings		22,178			22,770
Accumulated other comprehensive income (loss)		(3,500	)		(171	)
Total shareholders’ equity		238,270			240,502
Total capitalization	$	328,370		$	333,602

2

Non-Interest Income

	Three months ended							Six months ended
	June 30,		March 31,			June 30,		June 30,
	2008		2008			2007		2008			2007
	(in thousands)
Service charges on deposit accounts	$	6,164	$	5,647		$	6,380	$	11,811		$	11,268
Net gains (losses) on assets
Mortgage loans		1,141		1,867			1,238		3,008			2,319
Securities		837		(2,163	)		128		(1,326	)		207
VISA check card interchange income		1,495		1,371			1,292		2,866			2,242
Mortgage loan servicing		1,528		(323	)		712		1,205			1,239
Mutual fund and annuity commissions		644		424			467		1,068			946
Bank owned life insurance		484		478			448		962			897
Title insurance fees		384		417			430		801			844
Manufactured home loan origination fees and commissions							115					229
Other		1,460		1,774			1,563		3,234			3,252
Total non-interest income	$	14,137	$	9,492		$	12,773	$	23,629		$	23,443

Mortgage Loan Activity

	Three months ended									Six months ended
	June 30,			March 31,			June 30,			June 30,
	2008			2008			2007			2008			2007
	(in thousands)
Mortgage loans originated	$	111,316		$	118,242		$	129,613		$	229,558		$	246,428
Mortgage loans sold		80,238			84,449			77,913			164,687			147,125
Mortgage loans sold with servicing rights released		11,660			7,882			12,604			19,542			24,283
Net gains on the sale of mortgage loans		1,141			1,867			1,238			3,008			2,319
Net gains as a percent of mortgage loans sold (“Loan Sale Margin”)		1.42	%		2.21	%		1.59	%		1.83	%		1.58	%
SFAS #133/#159 adjustments included in the Loan Sale Margin		(0.25	)		0.97			0.00			0.38			0.00

Capitalized Real Estate Mortgage Loan Servicing Rights

	Three months ended						Six months ended
	June 30,						June 30,
	2008			2007			2008			2007
	(in thousands)
Balance at beginning of period	$	15,297		$	14,961		$	15,780		$	14,782
Originated servicing rights capitalized		754			776			1,632			1,462
Amortization		(496	)		(432	)		(1,132	)		(839	)
(Increase)/decrease in impairment reserve		996			138			271			38
Balance at end of period	$	16,551		$	15,443		$	16,551		$	15,443
Impairment reserve at end of period	$	48		$	30		$	48		$	30

3

Non-Interest Expense

	Three months ended							Six months ended
	June 30,		March 31,		June 30,			June 30,
	2008		2008		2007			2008		2007
					(in thousands)
Salaries	$	9,727	$	10,156	$	10,776		$	19,883	$	20,777
Performance-based compensation and benefits		1,443		1,304		1,153			2,747		2,474
Other benefits		2,638		2,724		2,855			5,362		5,501
Compensation and employee benefits		13,808		14,184		14,784			27,992		28,752
Occupancy, net		2,813		3,114		2,735			5,927		5,349
Loan and collection		2,031		1,856		1,221			3,887		2,227
Furniture, fixtures and equipment		1,825		1,817		1,991			3,642		3,891
Data processing		1,712		1,725		1,912			3,437		3,350
Loss on other real estate and repossessed assets		1,560		106		68			1,666		92
Advertising		1,168		1,100		1,341			2,268		2,493
Credit card and bank service fees		1,174		1,046		970			2,220		1,937
Communications		1,021		1,015		1,014			2,036		1,844
Deposit insurance		418		833		173			1,251		260
Amortization of intangible assets		761		793		935			1,554		1,505
Supplies		472		543		581			1,015		1,188
Legal and professional		463		418		457			881		963
Branch acquisition and conversion costs						(92	)				330
Goodwill impairment											343
Other		1,965		1,701		1,711			3,666		3,243
Total non-interest expense	$	31,191	$	30,251	$	29,801		$	61,442	$	57,767

4

Average Balances and Tax Equivalent Rates

						Three Months Ended
						June 30,
	2008								2007
	Average								Average
	Balance			Interest		Rate			Balance		Interest		Rate
	(dollars in thousands)
Assets
Taxable loans(1)	$	2,578,668		$	46,618		7.26	%	$	2,523,614	$	50,468		8.01	%
Tax-exempt loans(1,2)		11,316			203		7.22			9,761		166		6.82
Taxable securities		153,895			2,176		5.69			202,342		2,592		5.14
Tax-exempt securities(2)		189,313			3,346		7.11			230,873		4,069		7.07
Other investments		27,633	��		362		5.27			38,068		464		4.89
Interest Earning Assets - Continuing Operations		2,960,825			52,705		7.15			3,004,658		57,759		7.70
Cash and due from banks		50,637								49,947
Taxable loans — discontinued operations										744
Other assets, net		228,550								230,147
Total Assets	$	3,240,012							$	3,285,496
Liabilities
Savings and NOW	$	993,186			2,454		0.99		$	994,116		4,728		1.91
Time deposits		872,385			8,737		4.03			1,521,496		18,650		4.92
Long-term debt										2,495		29		4.66
Other borrowings		746,983			6,975		3.76			129,781		2,284		7.06
Interest Bearing Liabilities- Continuing Operations		2,612,554			18,166		2.80			2,647,888		25,691		3.89
Demand deposits		297,151								300,329
Time deposits — discontinued operations										527
Other liabilities		89,299								82,591
Shareholders’ equity		241,008								254,161
Total liabilities and shareholders’ equity	$	3,240,012							$	3,285,496
Tax Equivalent Net Interest Income				$	34,539						$	32,068
Tax Equivalent Net Interest Income as a Percent of Earning Assets							4.68	%						4.27	%

(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%

5

Average Balances and Tax Equivalent Rates

	Six Months Ended
	June 30,
	2008							2007
	Average							Average
	Balance		Interest		Rate			Balance		Interest		Rate
	(dollars in thousands)
Assets
Taxable loans(1)	$	2,571,593	$	94,631		7.39	%	$	2,517,273	$	100,317		8.01	%
Tax-exempt loans(1,2)		10,472		377		7.24			9,639		326		6.82
Taxable securities		158,032		4,480		5.70			193,787		5,069		5.27
Tax-exempt securities(2)		197,102		6,932		7.07			234,741		8,190		7.04
Other investments		26,077		719		5.54			31,850		778		4.93
Interest Earning Assets - Continuing Operations		2,963,276		107,139		7.26			2,987,290		114,680		7.72
Cash and due from banks		51,549							51,907
Taxable loans — discontinued operations									16,737
Other assets, net		227,250							218,120
Total Assets	$	3,242,075						$	3,274,054
Liabilities
Savings and NOW	$	995,808		6,019		1.22		$	949,021		8,977		1.91
Time deposits		985,865		21,384		4.36			1,514,266		36,809		4.90
Long-term debt		497		12		4.86			2,743		63		4.63
Other borrowings		638,211		13,400		4.22			164,529		5,554		6.81
Interest Bearing Liabilities- Continuing Operations		2,620,381		40,815		3.13			2,630,559		51,403		3.94
Demand deposits		293,483							291,598
Time deposits — discontinued operations									12,173
Other liabilities		86,306							82,828
Shareholders’ equity		241,905							256,896
Total liabilities and shareholders’ equity	$	3,242,075						$	3,274,054
Tax Equivalent Net Interest Income			$	66,324						$	63,277
Tax Equivalent Net Interest Income as a Percent of Earning Assets						4.49	%						4.25	%

(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%

6

Commercial Loan Portfolio Analysis as of June 30, 2008

			Total Commercial Loans
										Percent of
			Watch Credits							Loan
					Non-					Category in
Loan Category	All Loans		Performing		performing		Total			Watch Credit
	(dollars in thousands)
Land	$	47,448	$	14,169	$	10,785	$	24,954			52.6	%
Land Development		71,588		18,822		21,807		40,629			56.8	%
Construction		67,181		9,915		6,601		16,516			24.6	%
Income Producing		432,576		65,234		25,045		90,279			20.9	%
Owner Occupied		227,863		21,307		6,392		27,699			12.2	%
Total Commercial Real Estate Loans(1)	$	846,656	$	129,447	$	70,630	$	200,077			23.6	%
									��
Other Commercial Loans(1)	$	212,985	$	20,053	$	3,808	$	23,861			11.2	%
Total non-performing commercial loans					$	74,438

(1) The total of these two categories is different than the June 30, 2008, Consolidated Statement of Financial Condition due primarily to loans in process.

7