ex99_2.htm

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets (1)

	March 31,			December 31,
	2014			2013
	(Dollars in thousands)
Non-accrual loans	$	20,711		$	17,905
Loans 90 days or more past due and still accruing interest		115			-
Total non-performing loans		20,826			17,905
Other real estate and repossessed assets		18,001			18,282
Total non-performing assets	$	38,827		$	36,187

As a percent of Portfolio Loans
Non-performing loans		1.53	%		1.30	%
Allowance for loan losses		2.24			2.35
Non-performing assets to total assets		1.72			1.64
Allowance for loan losses as a percent of non-performing loans		146.15			180.54

(1)	Excludes loans classified as "trouble debt restructured" that are not past due and vehicle service contract counterparty receivables, net.

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,
	2014					2013
				Unfunded					Unfunded
	Loans			Commitments		Loans			Commitments
	(Dollars in thousands)
Balance at beginning of period	$	32,325		$	508	$	44,275		$	598
Additions (deductions)
Provision for loan losses		428			-		(691	)		-
Recoveries credited to allowance		1,068			-		1,451			-
Loans charged against the allowance		(3,384	)		-		(4,270	)		-
Additions (deductions) included in non-interest expense		-			10		-			(19	)
Balance at end of period	$	30,437		$	518	$	40,765		$	579

Net loans charged against the allowance to average Portfolio Loans		0.69	%				0.82	%

Alternative Sources of Funds

Capitalization

	March 31,			December 31,
	2014			2013
	(In thousands)
Subordinated debentures	$	40,723		$	40,723
Amount not qualifying as regulatory capital		(1,223	)		(1,223	)
Amount qualifying as regulatory capital		39,500			39,500
Shareholders’ equity
Common stock		351,439			351,173
Accumulated deficit		(107,209	)		(110,347	)
Accumulated other comprehensive loss		(7,644	)		(9,245	)
Total shareholders’ equity		236,586			231,581
Total capitalization	$	276,086		$	271,081

Non-Interest Income

	Three months ended
	March 31,		December 31,		March 31,
	2014		2013		2013
	(In thousands)
Service charges on deposit accounts	$	3,055	$	3,473	$	3,406
Interchange income		1,941		1,820		1,757
Net gains on assets
Mortgage loans		1,144		1,607		3,637
Securities		112		190		84
Mortgage loan servicing		264		1,192		622
Investment and insurance commissions		402		429		450
Bank owned life insurance		319		335		338
Title insurance fees		274		421		484
Increase in fair value of U.S. Treasury warrant		-		-		(1,045	)
Other		1,444		1,446		1,335
Total non-interest income	$	8,955	$	10,913	$	11,068

Capitalized Mortgage Loan Servicing Rights

	Three months ended March 31,
	2014			2013
	(In thousands)
Balance at beginning of period	$	13,710		$	11,013
Originated servicing rights capitalized		382			1,029
Amortization		(534	)		(1,210	)
Change in valuation allowance		(285	)		758
Balance at end of period	$	13,273		$	11,590

Valuation allowance at end of period	$	3,140		$	5,329

Mortgage Loan Activity

	Three months ended
	March 31,			December 31,			March 31,
	2014			2013			2013
	(Dollars in thousands)
Mortgage loans originated	$	44,241		$	72,317		$	128,732
Mortgage loans sold		47,118			66,917			130,456
Mortgage loans sold with servicing rights released		7,861			10,849			14,537
Net gains on the sale of mortgage loans		1,144			1,607			3,637
Net gains as a percent of mortgage loans sold (“Loan Sales Margin”)		2.43	%		2.40	%		2.79	%
Fair value adjustments included in the Loan Sales Margin		(0.14	)		(0.38	)		(0.74	)

Non-Interest Expense

	Three months ended
	March 31,			December 31,			March 31,
	2014			2013			2013
	(In thousands)
Compensation	$	8,308		$	8,435		$	8,205
Performance-based compensation		912			1,821			1,062
Payroll taxes and employee benefits		2,018			2,055			2,040
Compensation and employee benefits		11,238			12,311			11,307
Occupancy, net		2,483			2,257			2,424
Data processing		2,086			1,971			1,916
Loan and collection		1,465			1,374			2,226
Furniture, fixtures and equipment		1,069			1,122			1,032
Communications		789			714			780
Advertising		519			552			570
FDIC deposit insurance		417			409			630
Interchange expense		402			407			410
Legal and professional fees		401			616			692
Credit card and bank service fees		263			288			334
Supplies		239			257			250
Amortization of intangible assets		134			203			203
Vehicle service contract counterparty contingencies		68			1,434			127
Cost (recoveries) related to unfunded lending commitments		10			(33	)		(19	)
Net (gains) losses on other real estate and repossessed assets		(87	)		146			652
Provision for loss reimbursement on sold loans		(481	)		(284	)		663
Other		1,385			1,225			1,276
Total non-interest expense	$	22,400		$	24,969		$	25,473

Average Balances and Tax Equivalent Rates

	Three Months Ended
	March 31,
	2014							2013
	Average							Average
	Balance		Interest		Rate(3)			Balance		Interest		Rate(3)
Assets (1)	(Dollars in thousands)
Taxable loans	$	1,369,065	$	18,162		5.36	%	$	1,436,527	$	20,649		5.81	%
Tax-exempt loans (2)		5,193		82		6.40			5,884		94		6.48
Taxable securities		441,783		1,383		1.27			199,876		670		1.36
Tax-exempt securities (2)		41,023		399		3.94			24,200		362		6.07
Cash – interest bearing		108,855		91		0.34			186,065		120		0.26
Other investments		23,419		332		5.75			20,838		212		4.13
Interest Earning Assets		1,989,338		20,449		4.16			1,873,390		22,107		4.77
Cash and due from banks		45,439							45,583
Other assets, net		188,246							142,300
Total Assets	$	2,223,023						$	2,061,273

Liabilities
Savings and interest-bearing checking	$	946,295		263		0.11		$	894,348		282		0.13
Time deposits		443,630		1,030		0.94			423,713		1,247		1.19
Other borrowings		54,329		512		3.82			67,802		865		5.17
Interest Bearing Liabilities		1,444,254		1,805		0.51			1,385,863		2,394		0.70
Non-interest bearing deposits		511,463							493,952
Other liabilities		32,284							41,683
Shareholders’ equity		235,022							139,775
Total liabilities and shareholders’ equity	$	2,223,023						$	2,061,273

Net Interest Income			$	18,644						$	19,713

Net Interest Income as a Percent of Average Interest Earning Assets						3.79	%						4.25	%

(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%

(3)	Annualized.

Commercial Loan Portfolio Analysis as of March 31, 2014

	Total Commercial Loans
			Watch Credits						Percent of Loan
Loan Category	All Loans		Performing		Non- performing		Total		Category in Watch Credit
	(Dollars in thousands)
Land	$	11,294	$	1,693	$	621	$	2,314		20.5	%
Land Development		13,517		3,141		283		3,424		25.3
Construction		9,326		465		-		465		5.0
Income Producing		251,843		16,773		3,558		20,331		8.1
Owner Occupied		202,996		17,695		2,938		20,633		10.2
Total Commercial Real Estate Loans	$	488,976	$	39,767		7,400	$	47,167		9.6

Other Commercial Loans	$	153,075	$	11,961		413	$	12,374		8.1
Total non-performing commercial loans					$	7,813