EX-99 4 ibc8k_042307ex99-2.htm Independent Bank Corporation Form 8-K Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data

Exhibit 99.2

Non-performing assets

March 31,
2007		 December 31,
2006
(dollars in thousands)
  Non-accrual loans     $ 41,075   $ 35,683  
  Loans 90 days or more past due and  
    still accruing interest    6,941    3,479  
  Restructured loans    55    60  
                           Total non-performing loans    48,071    39,222  
  Other real estate    3,631    3,153  
                          Total non-performing assets   $ 51,702   $ 42,375  
As a percent of Portfolio Loans  
     Non-performing loans    1.93 %  1.58 %
     Allowance for loan losses    1.22    1.08  
   Non-performing assets to total assets    1.54    1.24  
   Allowance for loan losses as a percent of  
     non-performing loans    63    69  

Allowance for loan losses

Three months ended
March 31,
2007 2006
Loan
Losses		 Unfunded
Commitments		 Loan
Losses		 Unfunded
Commitments
(in thousands)
Balance at beginning of period     $ 26,879   $ 1,881   $ 22,420   $ 1,820  
Additions (deduction)  
  Provision charged to operating expense    7,339    150    1,388    (2 )
  Recoveries credited to allowance    555        630      
  Loans charged against the allowance    (4,515 )      (1,714 )    
Balance at end of period   $ 30,258   $ 2,031   $ 22,724   $ 1,818  
   
Net loans charged against the allowance to  
       average Portfolio Loans (annualized)    0.65 %      0.18 %    

Alternative Sources of Funds

March 31,
2007		 December 31,
2006
Amount Average
Maturity		 Rate Amount Average
Maturity		 Rate
(dollars in thousands)
Brokered CDs(1)     $ 882,128    1.8 years    4.91 % $ 1,055,010    1.9 years    4.72 %
Fixed rate FHLB advances(1)    43,270    5.9 years    6.09    58,272    4.6 years    5.66  
Variable rate FHLB advances(1)                2,000    0.5 years    5.31  
Securities sold under agreements to  
   Repurchase(1)                83,431    0.1 years    5.34  
Federal funds purchased                84,081    1 day    5.40  
      Total   $ 925,398    2.0 years    4.96 % $ 1,282,794    1.8 years    4.85 %

                (1) Certain of these items have had their average maturity and rate altered through the use of derivative instruments, including pay-fixed and pay-variable interest rate swaps.

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Capitalization

March 31,
2007		 December 31,
2006
(in thousands)
Unsecured debt     $ 4,500   $ 5,000  
   
Subordinated debentures    64,197    64,197  
       Amount not qualifying as regulatory capital    (1,847 )  (1,847 )
  Amount qualifying as regulatory capital    62,350    62,350  
Shareholders' Equity  
  Preferred stock, no par value  
  Common stock, par value $1.00 per share    22,584    22,865  
  Capital surplus    194,902    200,241  
  Retained earnings    31,353    31,420  
  Accumulated other comprehensive income    3,407    3,641  
          Total shareholders' equity    252,246    258,167  
          Total capitalization   $ 319,096   $ 325,517  

Non-Interest Income

Three months ended
March 31,
2007		 December 31,
2006		 March 31,
2006
(in thousands)
Service charges on deposit                
  accounts   $ 4,888   $ 5,152   $ 4,468  
Mepco litigation settlement            2,800  
Net gains on assets sales  
  Real estate mortgage loans    1,081    1,264    1,026  
  Securities    79          
VISA check card interchange income    950    900    791  
Real estate mortgage loan servicing    527    605    653  
Mutual fund and annuity commissions    479    321    295  
Bank owned life insurance    449    433    392  
Title insurance fees    414    426    442  
Manufactured home loan origination fees  
  and commissions    114    184    239  
Other    1,689    1,461    1,432  
      Total non-interest income   $ 10,670   $ 10,746   $ 12,538  

Real Estate Mortgage Loan Activity

Three months ended
March 31,
2007		 December 31,
2006		 March 31,
2006
(in thousands)
                 
Real estate mortgage loans originated   $ 116,815   $ 125,031   $ 118,651  
Real estate mortgage loans sold    69,212    72,298    60,247  
Real estate mortgage loans sold with servicing rights released    11,679    11,436    7,444  
Net gains on the sale of real estate mortgage loans    1,081    1,264    1,026  
Net gains as a percent of real estate mortgage loans sold  
  ("Loan Sale Margin")    1.56 %  1.75 %  1.70 %
SFAS #133 adjustments included in the Loan Sale Margin    (0.04 )%  .15 %  0.21 %

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Capitalized Real Estate Mortgage Loan Servicing Rights

Three months ended
March 31,
2007 2006
(in thousands)
Balance at beginning of period     $ 14,782   $ 13,439  
  Originated servicing rights capitalized    686    634  
  Amortization    (407 )  (345 )
  (Increase)/decrease in impairment reserve    (100 )    
Balance at end of period   $ 14,961   $ 13,728  
   
Impairment reserve at end of period   $ 168   $ 11  

Non-Interest Expense

Three months ended
March 31,
2007		 December 31,
2006		 March 31,
2006
(in thousands)
Salaries     $ 10,001   $ 9,380   $ 9,376  
Performance-based compensation and benefits    1,321    1,536    1,489  
Other benefits    2,646    2,407    2,676  
  Compensation and employee benefits    13,968    13,323    13,541  
Occupancy, net    2,614    2,311    2,687  
Furniture, fixtures and equipment    1,900    1,874    1,783  
Data processing    1,438    1,481    1,342  
Advertising    1,152    988    987  
Loan and collection    1,006    896    823  
Credit card and bank service fees    967    959    907  
Communications    830    852    991  
Supplies    607    553    509  
Amortization of intangible assets    570    600    600  
Legal and professional    506    516    488  
Branch acquisition and conversion costs    422          
Goodwill impairment    343    2,963      
Loss on receivable from warranty  
  payment plan seller        2,400      
Other    1,643    1,372    1,580  
      Total non-interest expense   $ 27,966   $ 31,088   $ 26,238  

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Average Balances and Tax Equivalent Rates

Three Months Ended
March 31,
2007 2006
Average
Balance		 Interest Rate Average
Balance		 Interest Rate
(dollars in thousands)
Assets
Taxable loans (1)		     $ 2,509,746   $ 49,849     8.02 % $ 2,408,268   $ 45,978     7.71 %
Tax-exempt loans (1,2)    9,513    160    6.82    5,894    105    7.22  
Taxable securities    185,139    2,477    5.43    220,333    2,848    5.24  
Tax-exempt securities (2)    238,654    4,121    7.00    255,798    4,533    7.19  
Other investments    25,563    314    4.98    17,437    223    5.19  
                  Interest Earning Assets -  
                      Continuing Operations    2,968,615    56,921    7.74    2,907,730    53,687    7.46  
Cash and due from banks    53,228            54,357          
Taxable loans - discontinued operations    33,084            195,140          
Other assets, net    205,532            204,781          
                               Total Assets   $ 3,260,459           $ 3,362,008          
Liabilities  
Savings and NOW   $ 903,426    4,249    1.91   $ 878,731    2,988    1.38  
Time deposits    1,506,171    18,159    4.89    1,362,322    12,939    3.85  
Long-term debt    2,994    34    4.61    4,994    57    4.63  
Other borrowings    199,667    3,270    6.64    322,374    4,267    5.37  
              Interest Bearing Liabilities-  
                      Continuing Operations    2,612,258    25,712    3.99    2,568,421    20,251    3.20  
Demand deposits    282,172            275,597          
Time deposits - discontinued operations    24,732            167,460          
Other liabilities    81,636            102,345          
Shareholders' equity    259,661            248,185          
 Total liabilities and shareholders' equity   $ 3,260,459           $ 3,362,008          
         Tax Equivalent Net Interest Income       $ 31,209           $ 33,436      
         Tax Equivalent Net Interest Income  
             as a Percent of Earning Assets            4.23 %          4.64 %



(1) All domestic
(2) Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 35%

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