Document

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets


	June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022
	(Dollars in thousands)
Non-accrual loans	$	6,876		$	6,216		$	5,381		$	5,307		$	5,859
Loans 90 days or more past due and still accruing interest	—			—			—			—			—
Subtotal	6,876			6,216			5,381			5,307			5,859
Less: Government guaranteed loans	2,882			2,330			1,660			1,491			1,360
Total non-performing loans	3,994			3,886			3,721			3,816			4,499
Other real estate and repossessed assets	658			499			455			348			508
Total non-performing assets	$	4,652		$	4,385		$	4,176		$	4,164		$	5,007

As a percent of Portfolio Loans
Non-performing loans	0.11		%	0.11		%	0.11		%	0.11		%	0.14		%
Allowance for credit losses	1.49			1.44			1.51			1.50			1.47
Non-performing assets to total assets	0.09			0.09			0.08			0.08			0.10
Allowance for credit losses as a percent of non-performing loans	1,351.13			1,300.82			1,409.16			1,340.20			1,064.30

Allowance for credit losses


	Six months ended June 30,
	2023							2022
	Loans			Securities		Unfunded Commitments		Loans			Securities		Unfunded Commitments
	(Dollars in thousands)
Balance at beginning of period	$	52,435		$	168	$	5,080	$	47,252		$	—	$	4,481
Additions (deductions)
Provision for credit losses	2,485			2,992		—		648			158		—
Recoveries credited to allowance	1,325			—		—		1,274			—		—
Assets charged against the allowance	(2,281)			(3,000)		—		(1,291)			—		—
Additions included in non-interest expense	—			—		(375)		—			—		294
Balance at end of period	$	53,964		$	160	$	4,705	$	47,883		$	158	$	4,775

Net loans charged (recovered) against the allowance to average Portfolio Loans	0.05		%					0.00		%


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Capitalization


	June 30, 2023		December 31, 2022
	(In thousands)
Subordinated debt	$	39,472	$	39,433
Subordinated debentures	39,694		39,660
Amount not qualifying as regulatory capital	(696)		(657)
Amount qualifying as regulatory capital	78,470		78,436
Shareholders’ equity
Common stock	318,241		320,991
Retained earnings	137,431		119,368
Accumulated other comprehensive income (loss)	(80,510)		(92,763)
Total shareholders’ equity	375,162		347,596
Total capitalization	$	453,632	$	426,032

Non-Interest Income


	Three months ended						Six months ended
	June 30, 2023		March 31, 2023		June 30, 2022		June 30,
							2023		2022
	(In thousands)
Interchange income	$	3,355	$	3,205	$	3,422	$	6,560	$	6,504
Service charges on deposit accounts	3,134		2,857		3,096		5,991		6,053
Net gains (losses) on assets
Mortgage loans	2,120		1,256		1,253		3,376		2,088
Securities	—		(222)		(345)		(222)		(275)
Mortgage loan servicing, net	3,674		726		4,162		4,400		13,803
Investment and insurance commissions	744		827		682		1,571		1,420
Bank owned life insurance	98		111		105		209		243
Other	2,292		1,791		2,257		4,083		3,744
Total non-interest income	$	15,417	$	10,551	$	14,632	$	25,968	$	33,580

Capitalized Mortgage Loan Servicing Rights


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	(In thousands)
Balance at beginning of period	$	41,923	$	35,933	$	42,489	$	26,232
Originated servicing rights capitalized	1,023		1,506		1,953		3,649
Change in fair value	1,481		2,038		(15)		9,596
Balance at end of period	$	44,427	$	39,477	$	44,427	$	39,477


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Mortgage Loan Activity


	Three months ended									Six months ended
	June 30, 2023			March 31, 2023			June 30, 2022			June 30,
										2023			2022
	(Dollars in thousands)
Mortgage loans originated	$	160,515		$	113,021		$	317,683		$	273,536		$	587,877
Mortgage loans sold	99,025			106,846			142,977			205,871			364,702
Net gains on mortgage loans	2,120			1,256			1,253			3,376			2,088
Net gains as a percent of mortgage loans sold ("Loan Sales Margin")	2.14		%	1.18		%	0.88		%	1.64		%	0.57		%
Fair value adjustments included in the Loan Sales Margin	1.03		%	1.20		%	(0.27)		%	1.12		%	(1.24)		%

Non-Interest Expense


	Three months ended						Six months ended
	June 30, 2023		March 31, 2023		June 30, 2022		June 30,
							2023		2022
	(In thousands)
Compensation	$	13,523	$	13,269	$	12,533	$	26,792	$	24,968
Performance-based compensation	3,220		2,245		3,776		5,465		7,438
Payroll taxes and employee benefits	3,859		3,825		3,573		7,684		7,606
Compensation and employee benefits	20,602		19,339		19,882		39,941		40,012
Data processing	2,891		2,991		2,644		5,882		4,860
Occupancy, net	1,845		2,159		2,077		4,004		4,620
Interchange expense	1,054		1,049		1,262		2,103		2,273
Furniture, fixtures and equipment	929		926		1,042		1,855		2,087
FDIC deposit insurance	749		783		457		1,532		979
Communications	635		668		762		1,303		1,519
Legal and professional	473		607		479		1,080		972
Loan and collection	620		578		647		1,198		1,206
Advertising	431		495		560		926		1,240
Amortization of intangible assets	137		137		233		274		465
Supplies	122		106		161		228		284
Correspondent bank service fees	59		63		80		122		157
Net (gains) losses on other real estate and repossessed assets	63		(46)		(141)		17		(196)
Provision for loss reimbursement on sold loans	4		10		12		14		45
Costs (recoveries) related to unfunded lending commitments	100		(475)		649		(375)		294
Other	1,534		1,567		1,628		3,101		3,067
Total non-interest expense	$	32,248	$	30,957	$	32,434	$	63,205	$	63,884


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Average Balances and Tax Equivalent Rates


	Three Months Ended June 30,
	2023						2022
	Average Balance		Interest		Rate (2)		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	3,561,333	$	47,617	5.36	%	$	3,137,369	$	31,383	4.01	%
Tax-exempt loans (1)	6,587		78		4.75		7,726		90		4.67
Taxable securities	789,078		5,919		3.00		966,146		4,950		2.05
Tax-exempt securities (1)	322,592		3,690		4.58		346,788		2,208		2.55
Interest bearing cash	66,023		837		5.08		18,032		29		0.65
Other investments	17,682		230		5.22		17,653		185		4.20
Interest Earning Assets	4,763,295		58,371		4.91		4,493,714		38,845		3.47
Cash and due from banks	55,945						58,497
Other assets, net	225,506						206,749
Total Assets	$	5,044,746					$	4,758,960

Liabilities
Savings and interest-bearing checking	2,519,009		10,515		1.67		2,534,242		788		0.12
Time deposits	761,705		6,946		3.66		354,209		428		0.48
Other borrowings	134,907		2,137		6.35		116,652		1,087		3.74
Interest Bearing Liabilities	3,415,621		19,598		2.30	%	3,005,103		2,303		0.31
Non-interest bearing deposits	1,167,129						1,332,596
Other liabilities	97,853						88,651
Shareholders’ equity	$	364,143					$	332,610

Total liabilities and shareholders’ equity	$	5,044,746					$	4,758,960

Net Interest Income			$	38,773					$	36,542

Net Interest Income as a Percent of Average Interest Earning Assets					3.26	%					3.26	%



(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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Average Balances and Tax Equivalent Rates


	Six Months Ended June 30,
	2023						2022
	Average Balance		Interest		Rate		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	3,524,639	$	91,851	5.24	%	$	3,054,925	$	59,723	3.93	%
Tax-exempt loans (1)	6,608		154		4.70		8,127		189		4.69
Taxable securities	805,733		11,803		2.93		1,022,884		9,502		1.86
Tax-exempt securities (1)	323,045		7,196		4.46		336,935		4,223		2.51
Interest bearing cash	52,531		1,301		4.99		52,483		66		0.25
Other investments	17,668		441		5.03		17,884		365		4.12
Interest Earning Assets	4,730,224		112,746		4.79		4,493,238		74,068		3.31
Cash and due from banks	58,182						58,586
Other assets, net	228,342						188,381
Total Assets	$	5,016,748					$	4,740,205

Liabilities
Savings and interest-bearing checking	2,526,982		19,372		1.55		2,518,714		1,429		0.11
Time deposits	709,983		11,849		3.37		346,326		554		0.32
Other borrowings	123,585		3,872		6.32		112,831		2,060		3.68
Interest Bearing Liabilities	3,360,550		35,093		2.11	%	2,977,871		4,043		0.27
Non-interest bearing deposits	1,195,593						1,324,922
Other liabilities	100,152						83,222
Shareholders’ equity	$	360,453					$	354,190

Total liabilities and shareholders’ equity	$	5,016,748					$	4,740,205

Net Interest Income			$	77,653					$	70,025

Net Interest Income as a Percent of Average Interest Earning Assets					3.29	%					3.13	%



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


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Commercial Loan Portfolio Analysis as of June 30, 2023


	Total Commercial Loans
			Watch Credits						Percent of Loan Category in Watch Credit
Loan Category	All Loans		Performing		Non-accrual		Total
	(Dollars in thousands)
Land	$	9,092	$	18	$	—	$	18	0.2	%
Land Development	15,792		—		—		—		—
Construction	97,517		1,279		—		1,279		1.3
Income Producing	538,606		17,387		—		17,387		3.2
Owner Occupied	448,156		17,871		—		17,871		4.0
Total Commercial Real Estate Loans	$	1,109,163	$	36,555	$	—	$	36,555	3.3

Other Commercial Loans	$	428,999	$	8,620	33		$	8,653	2.0
Total non-performing commercial loans					$	33

Commercial Loan Portfolio Analysis as of December 31, 2022


	Total Commercial Loans
			Watch Credits						Percent of Loan Category in Watch Credit
Loan Category	All Loans		Performing		Non-accrual		Total
	(Dollars in thousands)
Land	$	9,285	$	180	$	—	$	180	1.9	%
Land Development	16,220		—		—		—		—
Construction	114,277		—		—		—		—
Income Producing	469,696		6,177		—		6,177		1.3
Owner Occupied	426,404		16,525		—		16,525		3.9
Total Commercial Real Estate Loans	$	1,035,882	$	22,882	$	—	$	22,882	2.2

Other Commercial Loans	$	430,971	$	9,157	38		$	9,195	2.1
Total non-performing commercial loans					$	38


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