16.	Recent Acquisition

Effective April 1, 2018, we completed the acquisition of all of the issued and outstanding shares of common stock of TCSB Bancorp, Inc. (‘‘TCSB’’) and merged TCSB into Independent Bank Corporation (“IBCP”), with IBCP as the surviving corporation (the ‘‘Merger’’). On that same date we also consolidated Traverse City State Bank, TCSB’s wholly-owned subsidiary bank, into the Independent Bank (with the Independent Bank as the surviving institution). Under the terms of the merger agreement we issued 2.71 million shares of common stock and 0.19 million stock options with a fair value of approximately $64.5 million to the shareholders and option holders of TCSB. As the transaction did not occur until April 1, 2018, it was not practical to complete the purchase accounting adjustments for inclusion in these Notes to Interim Condensed Consolidated Financial Statements. We will record this acquisition and related purchase accounting adjustments in the second quarter of 2018.

Our 2018 non-interest expenses include $0.2 million of costs incurred during the three months ended March, 31, 2018 related to the Merger. As of March 31, 2018, prior to any fair value related adjustments, TCSB Bancorp, Inc. had total assets of $343.8 million, total loans of $301.8 million, total deposits of $288.1 million, and total shareholders’ equity of $34.7 million.