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, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
	(Dollars in thousands)
Non-accrual loans	$	5,893		$	5,545		$	5,917		$	5,531		$	7,548
Loans 90 days or more past due and still accruing interest		-			-			-			14			-
Subtotal		5,893			5,545			5,917			5,545			7,548
Less:  Government guaranteed loans		859			435			327			427			459
Total non-performing loans		5,034			5,110			5,590			5,118			7,089
Other real estate and repossessed assets		438			245			224			296			346
Total non-performing assets	$	5,472		$	5,355		$	5,814		$	5,414		$	7,435
As a percent of Portfolio Loans Non-performing loans		0.17	%		0.18	%		0.19	%		0.18	%		0.25	%
Allowance for credit losses		1.52			1.63			1.62			1.63			1.68
Non-performing assets to total assets		0.11			0.11			0.13			0.12			0.17
Allowance for credit losses as a percent of non-performing loans		906.38			924.70			837.19			897.34			659.54

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

  Troubled debt restructurings ("TDR")

	March 31, 2022
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDR's	$	4,410	$	30,622		$	35,032
Non-performing TDR's (2)		-		875	(3)		875
Total	$	4,410	$	31,497		$	35,907

	December 31, 2021
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDR's	$	4,481	$	31,589		$	36,070
Non-performing TDR's (2)		-		1,016	(3)		1,016
Total	$	4,481	$	32,605		$	37,086

(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.

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Allowance for credit losses

	Three months ended March 31,
	2022						2021
	Loans			Unfunded Commitments			Loans			Unfunded Commitments
	(Dollars in thousands)
Balance at beginning of period	$	47,252		$	4,481		$	35,429		$	1,805
Additions (deductions)
Impact of adoption of ASC 326		-			-			11,574			1,469
Provision for credit losses		(1,573	)		-			(474	)		-
Initial allowance on loans purchased with credit deterioration		-			-			134			-
Recoveries credited to allowance		621			-			548			-
Loans charged against the allowance		(673	)		-			(456	)		-
Recoveries included in non-interest expense		-			(355	)		-			(32	)
Balance at end of period	$	45,627		$	4,126		$	46,755		$	3,242
Net loans charged (recovered) against the allowance to average Portfolio Loans		0.01	%					(0.01	)%

Capitalization

	March 31, 2022			December 31, 2021
	(In thousands)
Subordinated debt	$	39,376		$	39,357
Subordinated debentures		39,609			39,592
Amount not qualifying as regulatory capital		(600	)		(581	)
Amount qualifying as regulatory capital		78,385			78,368
Shareholders’ equity
Common stock		321,981			323,401
Retained earnings		87,882			74,582
Accumulated other comprehensive income (loss)		(54,414	)		501
Total shareholders’ equity		355,449			398,484
Total capitalization	$	433,834		$	476,852

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Non-Interest Income

	Three months ended
	March 31, 2022		December 31, 2021			March 31, 2021
	(In thousands)
Interchange income	$	3,082	$	3,306		$	3,049
Service charges on deposit accounts		2,957		2,992			1,916
Net gains (losses) on assets
Mortgage loans		835		5,600			12,828
Securities		70		(10	)		1,416
Mortgage loan servicing, net		9,641		1,269			5,167
Investment and insurance commissions		738		708			583
Bank owned life insurance		138		156			139
Other		1,487		1,750			1,308
Total non-interest income	$	18,948	$	15,771		$	26,406

Capitalized Mortgage Loan Servicing Rights

	Three months ended March 31,
	2022		2021
	(In thousands)
Balance at beginning of period	$	26,232	$	16,904
Originated servicing rights capitalized		2,143		3,369
Change in fair value		7,558		3,257
Balance at end of period	$	35,933	$	23,530

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Mortgage Loan Activity

	Three months ended
	March 31, 2022			December 31, 2021			March 31, 2021
	(Dollars in thousands)
Mortgage loans originated	$	270,194		$	424,563		$	509,003
Mortgage loans sold		221,725			291,196			377,418
Net gains on mortgage loans		835			5,600			12,828
Net gains as a percent of mortgage loans sold  ("Loan Sales Margin")		0.38	%		1.92	%		3.40	%
Fair value adjustments included in the Loan Sales Margin		(1.87	)		(0.90	)		(0.98	)

Non-Interest Expense

	Three months ended
	March 31, 2022			December 31, 2021			March 31, 2021
	(In thousands)
Compensation	$	12,435		$	11,462		$	10,121
Performance-based compensation		3,662			4,473			4,292
Payroll taxes and employee benefits		4,033			3,970			4,109
Compensation and employee benefits		20,130			19,905			18,522
Occupancy, net		2,543			2,216			2,343
Data processing		2,216			2,851			2,374
Furniture, fixtures and equipment		1,045			1,060			1,003
Interchange expense		1,011			1,083			948
Communications		757			739			881
Advertising		680			599			489
Loan and collection		559			819			759
FDIC deposit insurance		522			413			330
Legal and professional		493			534			499
Amortization of intangible assets		232			243			242
Supplies		123			151			174
Correspondent bank service fees		77			90			100
Conversion related expenses		44			191			218
Provision for loss reimbursement on sold loans		33			38			34
Net gains on other real estate and repossessed assets		(55	)		(28	)		(180	)
Costs (recoveries) related to unfunded lending commitments		(355	)		844			(32	)
Other		1,395			2,206			1,317
Total non-interest expense	$	31,450		$	33,954		$	30,021

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Average Balances and Tax Equivalent Rates

	Three Months Ended March 31,
	2022							2021
	Average Balance		Interest		Rate (2)			Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	2,971,566	$	28,340		3.85	%	$	2,827,335	$	28,039		4.00	%
Tax-exempt loans (1)		8,532		99		4.71			6,677		84		5.10
Taxable securities		1,080,252		4,552		1.69			782,471		2,796		1.43
Tax-exempt securities (1)		326,973		2,015		2.47			311,147		1,770		2.28
Interest bearing cash		87,317		37		0.17			101,895		29		0.12
Other investments		18,117		180		4.03			18,427		188		4.14
Interest Earning Assets		4,492,757		35,223		3.16			4,047,952		32,906		3.27
Cash and due from banks		58,676							56,371
Other assets, net		169,772							149,971
Total Assets	$	4,721,205						$	4,254,294
Liabilities
Savings and interest-
bearing checking	$	2,503,014		641		0.10		$	2,140,405		675		0.13
Time deposits		338,354		126		0.15			339,872		581		0.69
Other borrowings		108,969		973		3.62			108,825		962		3.59
Interest Bearing Liabilities		2,950,337		1,740		0.24			2,589,102		2,218		0.35
Non-interest bearing deposits		1,317,160							1,218,534
Other liabilities		77,698							66,547
Shareholders’ equity		376,010							380,111
Total liabilities and shareholders’ equity	$	4,721,205						$	4,254,294
Net Interest Income			$	33,483						$	30,688
Net Interest Income as a Percent of Average Interest Earning Assets						3.00	%						3.05	%

(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

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Commercial Loan Portfolio Analysis as of March 31, 2022

	Total Commercial Loans
	All Loans		Watch Credits						Percent of Loan Category in Watch Credit
Loan Category			Performing		Non-accrual		Total
	(Dollars in thousands)
Land	$	9,878	$	790	$	-	$	790		8.0	%
Land Development		16,421		30		-		30		0.2
Construction		74,390		-		-		-		0.0
Income Producing		396,726		1,924		-		1,924		0.5
Owner Occupied		404,607		23,329		-		23,329		5.8
Total Commercial Real Estate Loans	$	902,022	$	26,073		-	$	26,073		2.9
Other Commercial Loans	$	355,579	$	4,189		59	$	4,248		1.2
Total non-performing commercial loans					$	59

Commercial Loan Portfolio Analysis as of December 31, 2021

	Total Commercial Loans
			Watch Credits						Percent of Loan Category in Watch Credit
Loan Category	All Loans		Performing		Non-accrual		Total
	(Dollars in thousands)
Land	$	13,621	$	114	$	-	$	114		0.8	%
Land Development		14,854		32		-		32		0.2
Construction		67,663		-		-		-		0.0
Income Producing		402,936		2,215		-		2,215		0.5
Owner Occupied		360,614		21,960		-		21,960		6.1
Total Commercial Real Estate Loans	$	859,688	$	24,321		-	$	24,321		2.8
Other Commercial Loans	$	343,893	$	12,546		62	$	12,608		3.7
Total non-performing commercial loans					$	62

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