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

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets (1)
	March 31, 2015			December 31, 2014
	(Dollars in thousands)
Non-accrual loans	$	14,593		$	15,231
Loans 90 days or more past due and still accruing interest		194			7
Total non-performing loans		14,787			15,238
Other real estate and repossessed assets		5,662			6,454
Total non-performing assets	$	20,449		$	21,692
As a percent of Portfolio Loans
Non-performing loans		1.04	%		1.08
Allowance for loan losses		1.73			1.84
Non-performing assets to total assets		0.88			0.96
Allowance for loan losses as a percent of non-performing loans		166.90			170.56

⁽⁽¹⁾ Excludes loans classified as "trouble debt restructured" that are not past due and vehicle service contract counterparty receivables, net.

Troubled debt restructurings ("TDR")

	March 31, 2015
	Commercial		Retail			Total
	(In thousands)
Performing TDR's	$	27,904	$	71,477		$	99,381
Non-performing TDR's(1)		1,935		5,194	(2)		7,129
Total	$	29,839	$	76,671		$	106,510

	December 31, 2014
	Commercial		Retail			Total
	(In thousands)
Performing TDR's	$	29,475	$	73,496		$	102,971
Non-performing TDR's(1)		1,978		5,225	(2)		7,203
Total	$	31,453	$	78,721		$	110,174

(1) Included in non-performing assets table above.

(2) Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.

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Allowance for loan losses

	Three months ended March 31,
	2015					2014
	Loans			Unfunded Commitments		Loans			Unfunded Commitments
	(Dollars in thousands)
Balance at beginning of period	$	25,990		$	539	$	32,325		$	508
Additions (deductions)
Provision for loan losses		(659	)		-		428			-
Recoveries credited to allowance		990			-		1,068			-
Loans charged against the allowance		(1,642	)		-		(3,384	)		-
Additions (deductions) included in non-interest expense		-			16		-			10
Balance at end of period	$	24,679		$	555	$	30,437		$	518
Net loans charged against the allowance to average Portfolio Loans		0.19	%				0.69	%

Capitalization

	March 31, 2015			December 31, 2014
	(In thousands)
Subordinated debentures	$	35,569		$	35,569
Amount not qualifying as regulatory capital		(1,069	)		(1,069	)
Amount qualifying as regulatory capital		34,500			34,500
Shareholders’ equity
Common stock		351,881			352,462
Accumulated deficit		(94,054	)		(96,455	)
Accumulated other comprehensive loss		(4,202	)		(5,636	)
Total shareholders’ equity		253,625			250,371
Total capitalization	$	288,125		$	284,871

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Non-Interest Income

	Three months ended
	March 31, 2015			December 31, 2014			March 31, 2014
	(In thousands)
Service charges on deposit accounts	$	2,850		$	3,280		$	3,055
Interchange income		2,142			2,172			1,941
Net gains (losses) on assets
Mortgage loans		2,139			1,489			1,144
Securities		85			(5	)		112
Mortgage loan servicing		(420	)		(598	)		264
Investment and insurance commissions		446			509			402
Bank owned life insurance		350			350			319
Title insurance fees		256			261			274
Gain on extinguishment of debt		-			500			-
Other		1,114			1,243			1,444
Total non-interest income	$	8,962		$	9,201		$	8,955

Capitalized Mortgage Loan Servicing Rights

	Three months ended March 31,
	2015			2014
	(In thousands)
Balance at beginning of period	$	12,106		$	13,710
Originated servicing rights capitalized		663			382
Amortization		(759	)		(534	)
Change in valuation allowance		(692	)		(285	)
Balance at end of period	$	11,318		$	13,273
Valuation allowance at end of period	$	4,465		$	3,140

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Motgage Loan Activity

	Three months ended
	March 31, 2015			December 31, 2014			March 31, 2014
	(Dollars in thousands)
Mortgage loans originated	$	79,790		$	78,322		$	44,241
Mortgage loans sold		68,727			67,490			47,118
Mortgage loans sold with servicing rights released		2,669			10,029			7,861
Net gains on the sale of mortgage loans		2,139			1,489			1,144
Net gains as a percent of mortgage loans sold  ("Loan Sales Margin")		3.11	%		2.21	%		2.43	%
Fair value adjustments included in the Loan Sales Margin		0.81			(0.18	)		(0.14	)

Non-Interest Expense

	Three months ended
	March 31, 2015			December 31, 2014			March 31, 2014
	(In thousands)
Compensation	$	8,330		$	8,512		$	8,308
Performance-based compensation		1,288			1,806			912
Payroll taxes and employee benefits		2,167			2,129			2,018
Compensation and employee benefits		11,785			12,447			11,238
Occupancy, net		2,419			2,197			2,483
Data processing		1,930			1,879			2,086
Loan and collection		1,155			1,109			1,465
Furniture, fixtures and equipment		952			1,010			1,069
Communications		736			714			789
Advertising		484			646			519
Legal and professional fees		380			589			401
FDIC deposit insurance		343			332			417
Interchange expense		291			179			402
Supplies		213			247			239
Credit card and bank service fees		202			212			263
Amortization of intangible assets		87			134			134
Vehicle service contract counterparty contingencies		29			30			68
Cost related to unfunded lending commitments		16			4			10
Provision for loss reimbursement on sold loans		(69	)		-			(481	)
Net gains on other real estate and repossessed assets		(39	)		(90	)		(87	)
Other		1,237			1,268			1,385
Total non-interest expense	$	22,151		$	22,907		$	22,400

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Average Balances and Tax Equivalent Rates

	Three Months Ended March 31,
	2015							2014
	Average Balance		Interest		Rate (3)			Average Balance		Interest		Rate (3)
	(Dollars in thousands)
Assets (1)
Taxable loans	$	1,420,272	$	17,195		4.88	%	$	1,369,065	$	18,162		5.36	%
Tax-exempt loans (2)		4,360		68		6.33			5,193		82		6.40
Taxable securities		506,411		1,758		1.39			441,783		1,383		1.27
Tax-exempt securities (2)		33,877		333		3.93			41,023		399		3.94
Cash - interest bearing		75,171		70		0.38			108,855		91		0.34
Other investments		19,991		268		5.44			23,419		332		5.75
Interest Earning Assets		2,060,082		19,692		3.86			1,989,338		20,449		4.16
Cash and due from banks		46,035							45,439
Other assets, net		171,878							188,246
Total Assets	$	2,277,995						$	2,223,023
Liabilities
Savings and interest-bearing checking	$	985,482		266		0.11		$	946,295		263		0.11
Time deposits		376,958		741		0.80			443,630		1,030		0.94
Other borrowings		48,038		454		3.83			54,329		512		3.82
Interest Bearing Liabilities		1,410,478		1,461		0.42			1,444,254		1,805		0.51
Non-interest bearing deposits		590,088							511,463
Other liabilities		23,955							32,284
Shareholders’ equity		253,474							235,022
Total liabilities and shareholders’ equity	$	2,277,995						$	2,223,023
Net Interest Income			$	18,231						$	18,644
Net Interest Income as a Percent of Average Interest Earning Assets						3.57	%						3.79	%

(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%

(3) Annualized

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Commercial Loan Portfolio Analysis as of March 31, 2015

	Total Commercial Loans
			Watch Credits						Percent of Loan
Loan Category	All Loans		Performing		Non-performing		Total		Category in Watch Credit
	(Dollars in thousands)
Land	$	8,274	$	771	$	358	$	1,129		13.6	%
Land Development		9,630		1,720		217		1,937		20.1
Construction		14,495		24		-		24		0.2
Income Producing		271,337		10,228		1,187		11,415		4.2
Owner Occupied		212,997		13,091		477		13,568		6.4
Total Commercial Real Estate Loans	$	516,733	$	25,834		2,239	$	28,073		5.4
Other Commercial Loans	$	193,590	$	18,281		2,466	$	20,747		10.7
Total non-performing commercial loans					$	4,705

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