Independent Bank 8K Results of Operations and Financial Condition | IBCP 22 Apr 19

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets ⁽¹⁾

	March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
	(Dollars in thousands)
Non-accrual loans	$	8,849		$	9,029		$	9,343		$	9,082		$	6,629
Loans 90 days or more past due and still accruing interest		-			5			-			-			-
Total non-performing loans		8,849			9,034			9,343			9,082			6,629
Other real estate and repossessed assets		1,338			1,299			1,445			1,689			1,647
Total non-performing assets	$	10,187		$	10,333		$	10,788		$	10,771		$	8,276

As a percent of Portfolio Loans
Non-performing loans		0.34	%		0.35	%		0.36	%		0.37	%		0.32	%
Allowance for loan losses		0.96			0.96			0.95			0.95			1.11
Non-performing assets to total assets		0.30			0.31			0.33			0.33			0.30
Allowance for loan losses as a percent of non-performing loans		285.39			275.49			261.17			258.80			348.03

⁽¹⁾	Excludes loans classified as "trouble debt restructured" that are not past due.

Troubled debt restructurings ("TDR")

(1)	Retail loans include mortgage and installment loan segments.

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

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

Allowance for loan losses

	Three months ended March 31,
	2019					2018
	Loans			Unfunded Commitments		Loans			Unfunded Commitments
	(Dollars in thousands)
Balance at beginning of period	$	24,888		$	1,296	$	22,587		$	1,125
Additions (deductions)
Provision for loan losses		664			-		315			-
Recoveries credited to allowance		568			-		1,014			-
Loans charged against the allowance		(866	)		-		(845	)		-
Additions included in non-interest expense		-			160		-			(114	)
Balance at end of period	$	25,254		$	1,456	$	23,071		$	1,011

Net loans charged against the allowance to average Portfolio Loans		0.05	%				(0.03	)%

Capitalization

	March 31, 2019			December 31, 2018
	(In thousands)
Subordinated debentures	$	39,405		$	39,388
Amount not qualifying as regulatory capital		(1,224	)		(1,224	)
Amount qualifying as regulatory capital		38,181			38,164
Shareholders’ equity
Common stock		374,678			377,372
Accumulated deficit		(23,135	)		(28,270	)
Accumulated other comprehensive loss		(6,817	)		(10,108	)
Total shareholders’ equity		344,726			338,994
Total capitalization	$	382,907		$	377,158

Non-Interest Income

	Three months ended
	March 31, 2019			December 31, 2018			March 31, 2018
	(In thousands)
Service charges on deposit accounts	$	2,640		$	3,092		$	2,905
Interchange income		2,355			2,669			2,246
Net gains on assets
Mortgage loans		3,611			2,026			2,571
Securities		304			209			(173	)
Mortgage loan servicing, net		(1,215	)		(1,511	)		2,221
Investment and insurance commissions		297			537			438
Bank owned life insurance		242			257			256
Other		1,725			1,672			1,249
Total non-interest income	$	9,959		$	8,951		$	11,713

Capitalized Mortgage Loan Servicing Rights

	Three months ended March 31,
	2019			2018
	(In thousands)
Balance at beginning of period	$	21,400		$	15,699
Originated servicing rights capitalized		1,200			1,055
Change in fair value		(2,691	)		1,029
Balance at end of period	$	19,909		$	17,783

Mortgage Loan Activity

	Three months ended
	March 31, 2019			December 31, 2018			March 31, 2018
	(Dollars in thousands)
Mortgage loans originated	$	137,758		$	190,328		$	158,967
Mortgage loans sold		154,525			121,426			106,343
Net gains on mortgage loans		3,611			2,026			2,571
Net gains as a percent of mortgage loans sold ("Loan Sales Margin")		2.34	%		1.67	%		2.42	%
Fair value adjustments included in the Loan Sales Margin		0.58			(0.39	)		0.11

Non-Interest Expense

	Three months ended
	March 31, 2019		December 31, 2018			March 31, 2018
	(In thousands)
Compensation	$	10,481	$	9,792		$	8,930
Performance-based compensation		2,220		2,704			2,783
Payroll taxes and employee benefits		3,650		3,076			2,755
Compensation and employee benefits		16,351		15,572			14,468
Occupancy, net		2,505		2,245			2,264
Data processing		2,144		2,082			1,878
Furniture, fixtures and equipment		1,029		1,051			967
Communications		769		737			680
Interchange expense		688		728			598
Advertising		672		577			441
Loan and collection		634		782			677
Legal and professional fees		369		528			378
FDIC deposit insurance		368		331			230
Amortization of intangible assets		272		293			86
Costs (recoveries) related to unfunded lending commitments		160		177			(114	)
Supplies		158		173			165
Net (gains) losses on other real estate and repossessed assets		119		(53	)		(290	)
Provision for loss reimbursement on sold loans		111		(68	)		11
Credit card and bank service fees		103		104			96
Merger related expenses		-		111			174
Other		1,538		1,455			1,426
Total non-interest expense	$	27,990	$	26,825		$	24,135

Average Balances and Tax Equivalent Rates

	Three Months Ended March 31,
	2019							2018
	Average Balance		Interest		Rate ⁽²⁾			Average Balance		Interest		Rate ⁽²⁾
	(Dollars in thousands)
Assets
Taxable loans	$	2,613,182	$	32,600		5.03	%	$	2,060,720	$	23,339		4.57	%
Tax-exempt loans ⁽¹⁾		8,689		103		4.81			2,127		18		3.43
Taxable securities		389,845		3,006		3.08			422,254		2,635		2.50
Tax-exempt securities⁽¹⁾		56,889		469		3.30			78,345		603		3.08
Interest bearing cash		65,213		311		1.93			32,901		82		1.01
Other investments		18,359		264		5.83			15,543		248		6.47
Interest Earning Assets		3,152,177		36,753		4.70			2,611,890		26,925		4.15
Cash and due from banks		34,240							32,135
Other assets, net		170,586							132,961
Total Assets	$	3,357,003						$	2,776,986

Liabilities

Savings and interest- bearing checking	$	1,361,057		1,486		0.44		$	1,094,981		551		0.20
Time deposits		688,434		4,195		2.47			564,282		1,736		1.25
Other borrowings		66,058		712		4.37			64,890		574		3.59
Interest Bearing Liabilities		2,115,549		6,393		1.23			1,724,153		2,861		0.67
Non-interest bearing deposits		859,605							758,643
Other liabilities		40,257							29,606
Shareholders’ equity		341,592							264,584
Total liabilities and shareholders’ equity	$	3,357,003						$	2,776,986

Net Interest Income			$	30,360						$	24,064

Net Interest Income as a Percent of Average Interest Earning Assets						3.88	%						3.71	%

(1)	Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

(2)	Annualized

Commercial Loan Portfolio Analysis as of March 31, 2019

	Total Commercial Loans
Loan Category	All Loans		Watch Credits						Percent of Loan Category in Watch Credit
Loan Category	All Loans		Performing		Non- performing		Total		Percent of Loan Category in Watch Credit
	(Dollars in thousands)
Land	$	12,627	$	61	$	-	$	61		0.5	%
Land Development		11,152		137		-		137		1.2
Construction		60,958		6,565		-		6,565		10.8
Income Producing		397,578		15,019		-		15,019		3.8
Owner Occupied		356,589		24,600		824		25,424		7.1
Total Commercial Real Estate Loans	$	838,904	$	46,382		824	$	47,206		5.6

Other Commercial Loans	$	329,500	$	16,146		881	$	17,027		5.2
Total non-performing commercial loans					$	1,705

Commercial Loan Portfolio Analysis as of December 31, 2018

	Total Commercial Loans
			Watch Credits						Percent of Loan Category in Watch Credit
Loan Category	All Loans		Performing		Non- performing		Total		Percent of Loan Category in Watch Credit
	(Dollars in thousands)
Land	$	12,308	$	63	$	-	$	63		0.5	%
Land Development		12,155		338		-		338		2.8
Construction		59,856		7,901		-		7,901		13.2
Income Producing		388,311		12,430		-		12,430		3.2
Owner Occupied		353,572		23,041		846		23,887		6.8
Total Commercial Real Estate Loans	$	826,202	$	43,773		846	$	44,619		5.4

Other Commercial Loans	$	318,279	$	16,695		1,374	$	18,069		5.7
Total non-performing commercial loans					$	2,220

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