Document

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets


	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
	(Dollars in thousands)
Non-accrual loans	$	6,991		$	6,969		$	6,876		$	6,216		$	5,381
Loans 90 days or more past due and still accruing interest	432			—			—			—			—
Subtotal	7,423			6,969			6,876			6,216			5,381
Less: Government guaranteed loans	2,191			2,254			2,882			2,330			1,660
Total non-performing loans	5,232			4,715			3,994			3,886			3,721
Other real estate and repossessed assets	569			443			658			499			455
Total non-performing assets	$	5,801		$	5,158		$	4,652		$	4,385		$	4,176

As a percent of Portfolio Loans
Non-performing loans	0.14		%	0.13		%	0.11		%	0.11		%	0.11		%
Allowance for credit losses	1.44			1.48			1.49			1.44			1.51
Non-performing assets to total assets	0.11			0.10			0.09			0.09			0.08
Allowance for credit losses as a percent of non-performing loans	1,044.69			1,176.99			1,351.13			1,300.82			1,409.16

Allowance for credit losses


	Twelve months ended December 31,
	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	3,221			2,989		—		5,173			168		—
Recoveries credited to allowance	2,798			—		—		2,496			—		—
Charges against the allowance	(3,796)			(3,000)		—		(2,486)			—		—
Costs included in non-interest expense	—			—		424		—			—		599
Balance at end of period	$	54,658		$	157	$	5,504	$	52,435		$	168	$	5,080

Net loans charged (recovered) against the allowance to average Portfolio Loans	0.03		%					0.00		%


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Capitalization


	December 31,
	2023		2022
	(In thousands)
Subordinated debt	$	39,510	$	39,433
Subordinated debentures	39,728		39,660
Amount not qualifying as regulatory capital	(734)		(657)
Amount qualifying as regulatory capital	78,504		78,436
Shareholders’ equity
Common stock	317,483		320,991
Retained earnings	159,108		119,368
Accumulated other comprehensive income	(72,142)		(92,763)
Total shareholders’ equity	404,449		347,596
Total capitalization	$	482,953	$	426,032

Non-Interest Income


	Three months ended						Twelve months ended
	December 31, 2023		September 30, 2023		December 31, 2022		December 31,
							2023		2022
	(In thousands)
Interchange income	$	3,336	$	4,100	$	3,402	$	13,996	$	13,955
Service charges on deposit accounts	3,061		3,309		3,153		12,361		12,288
Net gains (losses) on assets
Mortgage loans	1,961		2,099		1,486		7,436		6,431
Securities	—		—		—		(222)		(275)
Mortgage loan servicing, net	(2,442)		2,668		687		4,626		18,773
Investment and insurance commissions	1,010		875		728		3,456		2,898
Bank owned life insurance	141		124		58		474		360
Other	2,030		2,436		1,954		8,549		7,479
Total non-interest income	$	9,097	$	15,611	$	11,468	$	50,676	$	61,909

Capitalized Mortgage Loan Servicing Rights


	Three months ended December 31,				Twelve months ended December 31,
	2023		2022		2023		2022
	(In thousands)
Balance at beginning of period	$	46,057	$	43,158	$	42,489	$	26,232
Originated servicing rights capitalized	844		824		3,956		6,061
Change in fair value	(4,658)		(1,493)		(4,202)		10,196
Balance at end of period	$	42,243	$	42,489	$	42,243	$	42,489


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Mortgage Loan Activity


	Three months ended									Twelve months ended
	December 31, 2023			September 30, 2023			December 31, 2022			December 31,
										2023			2022
	(Dollars in thousands)
Mortgage loans originated	$	108,011		$	172,914		$	138,889		$	554,461		$	935,807
Mortgage loans sold	86,473			115,269			80,584			407,613			602,797
Net gains on mortgage loans	1,961			2,099			1,486			7,436			6,431
Net gains as a percent of mortgage loans sold ("Loan Sales Margin")	2.27		%	1.82		%	1.84		%	1.82		%	1.07		%
Fair value adjustments included in the Loan Sales Margin	0.69		%	(0.32)		%	0.19		%	0.62		%	(1.12)		%

Non-Interest Expense


	Three months ended						Twelve months ended
	December 31, 2023		September 30, 2023		December 31, 2022		December 31,
							2023		2022
	(In thousands)
Compensation	$	12,656	$	13,054	$	12,728	$	52,502	$	50,535
Performance-based compensation	2,644		2,955		4,147		11,064		15,875
Payroll taxes and employee benefits	3,749		3,966		3,519		15,399		14,597
Compensation and employee benefits	19,049		19,975		20,394		78,965		81,007
Data processing	2,909		3,071		2,670		11,862		10,183
Occupancy, net	1,933		1,971		2,225		7,908		8,907
Interchange expense	1,110		1,119		1,042		4,332		4,242
Furniture, fixtures and equipment	974		927		933		3,756		4,007
FDIC deposit insurance	796		677		572		3,005		2,142
Communications	535		568		629		2,406		2,871
Legal and professional	585		543		588		2,208		2,133
Loan and collection	456		520		679		2,174		2,657
Advertising	879		360		489		2,165		2,074
Amortization of intangible assets	137		136		146		547		785
Supplies	138		135		125		501		556
Costs (recoveries) related to unfunded lending commitments	348		451		(77)		424		599
Correspondent bank service fees	55		56		67		233		299
Provision for loss reimbursement on sold loans	(1)		7		—		20		57
Conversion related expenses	—		—		—		—		50
Net losses (gains) on other real estate and repossessed assets	1		1		—		19		(214)
Other	1,974		1,519		1,609		6,594		5,986
Total non-interest expense	$	31,878	$	32,036	$	32,091	$	127,119	$	128,341


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Average Balances and Tax Equivalent Rates


	Three Months Ended December 31,
	2023						2022
	Average Balance		Interest		Rate (2)		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	3,757,453	$	54,259	5.74	%	$	3,442,621	$	42,023	4.86	%
Tax-exempt loans (1)	7,299		94		5.11		7,323		89		4.82
Taxable securities	719,093		5,646		3.14		847,735		5,845		2.76
Tax-exempt securities (1)	308,147		3,592		4.66		317,074		3,241		4.09
Interest bearing cash	119,884		1,647		5.45		5,069		48		3.76
Other investments	16,821		301		7.10		17,653		185		4.16
Interest Earning Assets	4,928,697		65,539		5.29		4,637,475		51,431		4.41
Cash and due from banks	56,423						58,485
Other assets, net	248,546						238,899
Total Assets	$	5,233,666					$	4,934,859

Liabilities
Savings and interest-bearing checking	2,603,044		13,084		1.99		2,519,294		6,046		0.95
Time deposits	903,491		10,027		4.40		503,081		2,497		1.97
Other borrowings	129,236		2,139		6.57		136,999		1,833		5.31
Interest Bearing Liabilities	3,635,771		25,250		2.76	%	3,159,374		10,376		1.30
Non-interest bearing deposits	1,106,262						1,328,373
Other liabilities	112,019						113,502
Shareholders’ equity	$	379,614					$	333,610

Total liabilities and shareholders’ equity	$	5,233,666					$	4,934,859

Net Interest Income			$	40,289					$	41,055

Net Interest Income as a Percent of Average Interest Earning Assets					3.26	%					3.52	%



(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


	Twelve Months Ended December 31,
	2023						2022
	Average Balance		Interest		Rate		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	3,624,406	$	197,462	5.45	%	$	3,227,803	$	138,765	4.30	%
Tax-exempt loans (1)	6,855		333		4.86		7,771		370		4.76
Taxable securities	771,121		23,314		3.02		945,665		20,676		2.19
Tax-exempt securities (1)	317,553		14,039		4.42		331,322		10,191		3.08
Interest bearing cash	83,587		4,416		5.28		28,773		142		0.49
Other investments	17,557		1,013		5.77		17,768		742		4.18
Interest Earning Assets	4,821,079		240,577		4.99		4,559,102		170,886		3.75
Cash and due from banks	58,473						59,507
Other assets, net	236,072						207,114
Total Assets	$	5,115,624					$	4,825,723

Liabilities
Savings and interest-bearing checking	2,564,097		44,728		1.74		2,526,296		10,278		0.41
Time deposits	785,684		30,347		3.86		399,987		3,873		0.97
Other borrowings	128,945		8,273		6.42		121,871		5,296		4.35
Interest Bearing Liabilities	3,478,726		83,348		2.40	%	3,048,154		19,447		0.64
Non-interest bearing deposits	1,164,816						1,338,736
Other liabilities	103,721						94,638
Shareholders’ equity	$	368,361					$	344,195

Total liabilities and shareholders’ equity	$	5,115,624					$	4,825,723

Net Interest Income			$	157,229					$	151,439

Net Interest Income as a Percent of Average Interest Earning Assets					3.26	%					3.32	%



(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 December 31, 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	$	10,620	$	1	$	—	$	1	—	%
Land Development	17,966		—		—		—		—
Construction	101,178		—		—		—		—
Income Producing	625,927		4,177		—		4,177		0.7
Owner Occupied	449,287		15,165		—		15,165		3.4
Total Commercial Real Estate Loans	$	1,204,978	$	19,343	$	—	$	19,343	1.6

Other Commercial Loans	$	474,753	$	16,537	28		$	16,565	3.5
Total non-performing commercial loans					$	28

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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