INDEPENDENT BANK CORP /MI/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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EX-99.3 - EXHIBIT 99.3 - INDEPENDENT BANK CORP /MI/	ex99_3.htm
EX-99.1 - EXHIBIT 99.1 - INDEPENDENT BANK CORP /MI/	ex99_1.htm
8-K - 8-K - INDEPENDENT BANK CORP /MI/	form8k.htm

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets ⁽¹⁾
	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
	(Dollars in thousands)
Non-accrual loans	$	6,629		$	8,184		$	8,410		$	8,542		$	9,014
Loans 90 days or more past due and still accruing interest		-			-			-			-			-
Total non-performing loans		6,629			8,184			8,410			8,542			9,014
Other real estate and repossessed assets		1,647			1,643			2,150			2,368			5,257
Total non-performing assets	$	8,276		$	9,827		$	10,560		$	10,910		$	14,271

As a percent of Portfolio Loans
Non-performing loans		0.32	%		0.41	%		0.43	%		0.47	%		0.54	%
Allowance for loan losses		1.11			1.12			1.11			1.14			1.20
Non-performing assets to total assets		0.30			0.35			0.38			0.41			0.55
Allowance for loan losses as a percent of non-performing loans		348.03			275.99			255.39			241.00			222.30

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

Troubled debt restructurings ("TDR")

(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.

Allowance for loan losses

	Three months ended March 31,
	2018						2017
	Loans			Unfunded Commitments			Loans			Unfunded Commitments
	(Dollars in thousands)
Balance at beginning of period	$	22,587		$	1,125		$	20,234		$	650
Additions (deductions)
Provision for loan losses		315			-			(359	)		-
Recoveries credited to allowance		1,014			-			1,129			-
Loans charged against the allowance		(845	)		-			(966	)		-
Additions included in non-interest expense		-			(114	)		-			110
Balance at end of period	$	23,071		$	1,011		$	20,038		$	760

Net loans charged against the allowance to average Portfolio Loans		(0.03	)%					(0.04	)%

Capitalization

	March 31, 2018			December 31, 2017
	(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		324,517			324,986
Accumulated deficit		(48,098	)		(54,054	)
Accumulated other comprehensive loss		(8,502	)		(5,999	)
Total shareholders’ equity		267,917			264,933
Total capitalization	$	302,417		$	299,433

Non-Interest Income

	Three months ended
	March 31, 2018			December 31, 2017		March 31, 2017
	(In thousands)
Service charges on deposit accounts	$	2,905		$	3,208	$	3,009
Interchange income		2,246			2,154		1,922
Net gains (losses) on assets
Mortgage loans		2,571			2,876		2,571
Securities		(173	)		198		27
Mortgage loan servicing, net		2,221			979		825
Investment and insurance commissions		250			427		468
Bank owned life insurance		256			285		253
Other		1,249			1,317		1,264
Total non-interest income	$	11,525		$	11,444	$	10,339

Capitalized Mortgage Loan Servicing Rights

	Three months ended March 31,
	2018		2017
	(In thousands)
Balance at beginning of period	$	15,699	$	13,671
Change in accounting		-		542
Balance at beginning of period, as adjusted	$	15,699	$	14,213
Originated servicing rights capitalized		1,055		778
Change in fair value		1,029		(264	)
Balance at end of period	$	17,783	$	14,727

Mortgage Loan Activity

	Three months ended
	March 31, 2018			December 31, 2017			March 31, 2017
	(Dollars in thousands)
Mortgage loans originated	$	158,967		$	213,877		$	158,081
Mortgage loans sold		106,343			117,941			79,691
Net gains on mortgage loans		2,571			2,876			2,571
Net gains as a percent of mortgage loans sold ("Loan Sales Margin")		2.42	%		2.44	%		3.23	%
Fair value adjustments included in the Loan Sales Margin		0.11			(0.45	)		0.20

Non-Interest Expense

	Three months ended
	March 31, 2018			December 31, 2017			March 31, 2017
	(In thousands)
Compensation	$	8,930		$	8,525		$	9,672
Performance-based compensation		2,595			3,055			1,993
Payroll taxes and employee benefits		2,755			2,405			2,482
Compensation and employee benefits		14,280			13,985			14,147
Occupancy, net		2,264			2,070			2,142
Data processing		1,878			1,987			1,937
Furniture, fixtures and equipment		967			927			977
Communications		680			638			683
Loan and collection		677			666			413
Interchange expense		598			287			283
Advertising		441			354			506
Legal and professional fees		378			516			437
FDIC deposit insurance		230			286			198
Merger related expenses		174			284			-
Supplies		165			159			172
Credit card and bank service fees		96			97			191
Amortization of intangible assets		86			86			87
Provision for loss reimbursement on sold loans		11			105			31
Costs (recoveries) related to unfunded lending commitments		(114	)		143			110
Net (gains) losses on other real estate and repossessed assets		(290	)		(738	)		11
Other		1,426			1,284			1,244
Total non-interest expense	$	23,947		$	23,136		$	23,569

Average Balances and Tax Equivalent Rates

	Three Months Ended March 31,
	2018							2017
	Average Balance		Interest		Rate ⁽²⁾			Average Balance		Interest		Rate ⁽²⁾
	(Dollars in thousands)
Assets
Taxable loans	$	2,060,720	$	23,339		4.57	%	$	1,685,936	$	19,824		4.75	%
Tax-exempt loans ⁽¹⁾		2,127		18		3.43			4,067		52		5.19
Taxable securities		422,254		2,635		2.50			521,407		2,754		2.11
Tax-exempt securities⁽¹⁾		78,345		603		3.08			78,044		698		3.58
Interest bearing cash		32,901		82		1.01			66,708		113		0.69
Other investments		15,543		248		6.47			15,543		199		5.19
Interest Earning Assets		2,611,890		26,925		4.15			2,371,705		23,640		4.02
Cash and due from banks		32,135							33,790
Other assets, net		132,961							153,992
Total Assets	$	2,776,986						$	2,559,487

Liabilities
Savings and interest-bearing checking	$	1,094,981		551		0.20		$	1,047,114		283		0.11
Time deposits		564,282		1,736		1.25			482,188		1,160		0.98
Other borrowings		64,890		574		3.59			45,004		470		4.24
Interest Bearing Liabilities		1,724,153		2,861		0.67			1,574,306		1,913		0.49
Non-interest bearing deposits		758,643							704,551
Other liabilities		29,606							29,064
Shareholders’ equity		264,584							251,566
Total liabilities and shareholders’ equity	$	2,776,986						$	2,559,487

Net Interest Income			$	24,064						$	21,727

Net Interest Income as a Percent of Average Interest Earning Assets						3.71	%						3.69	%

(1)	Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21% in 2018 and 35% in 2017.

(2)	Annualized

Commercial Loan Portfolio Analysis as of March 31, 2018

	Total Commercial Loans
			Watch Credits						Percent of Loan
Loan Category	All Loans		Performing		Non- performing		Total		Category in Watch Credit
	(Dollars in thousands)
Land	$	8,108	$	59	$	-	$	59		0.7	%
Land Development		9,877		-		-		-		0.0
Construction		33,235		2,402		-		2,402		7.2
Income Producing		304,044		1,517		-		1,517		0.5
Owner Occupied		253,395		19,781		78		19,859		7.8
Total Commercial Real Estate Loans	$	608,659	$	23,759		78	$	23,837		3.9

Other Commercial Loans	$	248,758	$	16,946		361	$	17,307		7.0
Total non-performing commercial loans					$	439

Commercial Loan Portfolio Analysis as of December 31, 2017

	Total Commercial Loans
			Watch Credits						Percent of Loan
Loan Category	All Loans		Performing		Non- performing		Total		Category in Watch Credit
	(Dollars in thousands)
Land	$	8,559	$	60	$	9	$	69		0.8	%
Land Development		9,685		-		-		-		0.0
Construction		51,733		-		-		-		0.0
Income Producing		289,799		1,590		30		1,620		0.6
Owner Occupied		258,888		11,491		170		11,661		4.5
Total Commercial Real Estate Loans	$	618,664	$	13,141		209	$	13,350		2.2

Other Commercial Loans	$	234,596	$	19,109		437	$	19,546		8.3
Total non-performing commercial loans					$	646

INDEPENDENT BANK CORP /MI/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 23, 2018