8-K

SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report: January 23, 2008

INDEPENDENT BANK CORPORATION
(Exact name of registrant as
specified in its charter)

Michigan
(State or other jurisdiction
of incorporation) 0-7818
(Commission File Number) 38-2032782
(IRS Employer
Identification No.)

230 West Main Street
Ionia, Michigan
(Address of principal executive office) 48846
(Zip Code)

Registrant’s telephone number,
including area code:
(616) 527-9450

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[_]        Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

[_]        Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[_]        Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[_]        Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

On January 23, 2008, Independent Bank Corporation issued a press release announcing its financial results for the quarter ended December 31, 2007. A copy of the press release is attached as Exhibit 99.1. Attached Exhibit 99.2 contains supplemental data to that press release.

The information in this Form 8-K and the attached Exhibits shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 7.01. Regulations FD Disclosure

Attached as Exhibit 99.3 is a slide presentation associated with the fourth quarter 2007 conference call to be conducted beginning at 2:30 p.m. ET on Wednesday, January 23, 2008. See the press release attached as Exhibit 99.1 to this Current Report on Form 8-K for information about participating in the conference call.

Item 9.01. Financial Statements and Exhibits

Exhibits.

99.1 Press release dated January 23, 2008.

99.2 Supplemental data to the Registrant's press release dated January 23, 2008.

99.3 Slide presentation dated January 23, 2008.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: January 23, 2008
          ———————— INDEPENDENT BANK CORPORATION
(Registrant)


By /s/ Robert N. Shuster
      ——————————————
      Robert N. Shuster, Principal Financial
             Officer

EX-99

NEWS FROM Exhibit 99.1

FOR IMMEDIATE RELEASE CONTACT: Robert N. Shuster
Executive Vice President and
Chief Financial Officer
616/522-1765

INDEPENDENT BANK CORPORATION
REPORTS FOURTH QUARTER 2007 RESULTS

IONIA, Mich., Jan. 23, 2008 — Independent Bank Corporation (NASDAQ: IBCP), a leading Michigan-based community bank, reported fourth quarter 2007 net income from continuing operations of $2.3 million, or $0.10 per diluted share, versus net income from continuing operations of $1.0 million, or $0.04 per diluted share, in the prior-year period. For the quarter ended December 31, 2007, the Company recorded net income of $2.4 million, or $0.11 per diluted share, compared to net income of $0.3 million, or $0.01 per diluted share, in the fourth quarter of 2006.

Return on average equity and return on average assets (based on net income from continuing operations) were 3.68% and 0.28%, respectively, in the fourth quarter of 2007, compared to 1.44% and 0.11%, respectively, in the fourth quarter of 2006.

For the year ended December 31, 2007, net income from continuing operations was $10.0 million, or $0.44 per diluted share, compared to $33.8 million, or $1.45 per diluted share, in 2006. Net income for the year ended December 31, 2007 was $10.4 million, or $0.45 per diluted share, compared to $33.2 million, or $1.43 per diluted share, in the prior year.

The year-on-year improvement in fourth quarter 2007 income from continuing operations was primarily attributable to an increase in non-interest income and a decline in non-interest expense, partially offset by an increase in the provision for loan losses and a $1.0 million ($0.03 after tax) other than temporary impairment charge recorded on Fannie Mae and Freddie Mac preferred securities. Non-interest expenses in the fourth quarter of 2006 included a $3.0 million goodwill impairment charge and a $2.4 million write-off on a receivable due from a warranty payment plan seller.

On March 23, 2007 the Company completed the acquisition of ten branches (located in Battle Creek, Bay City and Saginaw, Michigan) from TCF National Bank. At the time of the acquisition, these branch locations represented approximately $241.4 million in deposits.

Michael M. Magee, President and CEO of Independent Bank Corporation, commented: “Throughout 2007, our team went to great lengths to improve the operational efficiency and strategic positioning of the organization. These efforts included a consolidation of our four bank charters, the sale of our insurance premium financing business, a comprehensive re-branding campaign, enhancements to our information technology infrastructure, and a major realignment of our internal management and reporting structure.

Unfortunately, economic conditions throughout Michigan remained sluggish during the year, particularly within the residential housing market. Our business has not been immune to these adverse conditions, which have resulted in elevated levels of non-performing loans and loan losses during 2007, when compared to the prior–year period. However, despite these elevated credit costs, we have remained profitable – a testament to our bank-wide efforts to effectively manage our net interest margin, add new customers and increase non-interest income.”

Discontinued Operations

As previously reported on January 15, 2007, Mepco Finance Corporation (“Mepco”), a wholly-owned subsidiary of IBC, sold substantially all of the assets related to its insurance premium finance business to Premium Financing Specialists, Inc. Mepco continues to own and operate its warranty payment plan business. The assets, liabilities and operations of Mepco’s insurance premium finance business have been reclassified as discontinued operations and all periods presented have been restated for this reclassification.

Operating Results

The Company’s tax equivalent net interest income totaled $31.5 million during the fourth quarter of 2007, essentially unchanged from the year-ago period, and down $0.4 million, or 1.1% from the third quarter of 2007. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 4.22% during the fourth quarter of 2007 compared to 4.23% in the year ago period, and 4.31% in the third quarter of 2007. The slight declines in the net interest margin reflect some unique market conditions in the last quarter of 2007. Despite reductions in the target federal funds rate by the Federal Reserve Bank certain short-term borrowing rates linked to or influenced by the LIBOR rate remained high. The prime rate – LIBOR spread narrowed which had an adverse impact on the Company’s net interest margin. Interest rates on loans linked to the prime rate declined more than the Company’s short-term borrowing rates.

Based on current conditions, the Company expects declining short-term interest rates to have a beneficial impact on the future net interest margin; however, to date, this benefit has been more than offset by the adverse impact of a lack of decline in certain short-term borrowing rates and also by an increased level of non-performing assets.

Service charges on deposits totaled $6.4 million in the fourth quarter of 2007, a 24.6% increase from the comparable period in 2006. VISA check card interchange income increased by 52.9% to $1.4 million for the fourth quarter of 2007, up from $0.9 million in the fourth quarter of 2006. The increase in deposit- related revenues resulted primarily from the aforementioned branch acquisition as well as an increase in debit card usage by the Company’s customer base.

The Company recorded net losses on securities of $1.0 million in the fourth quarter of 2007. A $1.0 million other than temporary impairment charge was recorded on Fannie Mae and Freddie Mac preferred securities that had a par value of $8.6 million and an adjusted book value of $6.5 million (after the aforementioned charge) as of December 31, 2007. We assess our investment securities for other than temporary impairment on a quarterly basis. The determination of other than temporary impairment for an investment security requires judgment as to the cause of the impairment, the likelihood of recovery and the projected timing of the recovery.

Gains on the sale of real estate mortgage loans were $0.9 million in the fourth quarter of 2007 compared to $1.3 million in the year-ago quarter. Real estate mortgage loan sales totaled $64.5 million in the fourth quarter of 2007 compared to $72.3 million in the fourth quarter of 2006. Real estate mortgage loans originated totaled $147.2 million in the fourth quarter of 2007 compared to $125.0 million in the comparable quarter of 2006. The growth in mortgage loan originations is primarily due to higher volumes being generated by the Company’s Resort Lending Division. Loans held for sale were $34.0 million at December 31, 2007, compared to $31.8 million at December 31, 2006.

Income from real estate mortgage loan servicing was $0.4 million in the fourth quarter of 2007 versus $0.6 million in the year-ago period. This decline is primarily due to a $0.3 million impairment charge recorded on capitalized mortgage loan servicing rights in the last quarter of 2007. At December 31, 2007, the Company was servicing approximately $1.6 billion in real estate mortgage loans for others on which servicing rights have been capitalized. This servicing portfolio had a weighted average coupon rate of approximately 6.08%, a weighted average service fee of 25.7 basis points, and an estimated fair market value of $19.2 million.

Non-interest expense totaled $29.6 million in the fourth quarter of 2007 compared to $31.1 million in the year-ago period. The fourth quarter of 2007 included a $0.2 million expense associated with the Company’s allocable portion of the Visa, Inc. litigation settlement, a $0.2 million increase in FDIC insurance, and $0.2 million of consulting and other costs related to the bank charter consolidation that was completed in September 2007. The fourth quarter of 2006 included a $3.0 million goodwill impairment charge and a $2.4 million write-down of a receivable, both associated with the Company’s warranty payment plan business. Several categories of operating costs (such as occupancy, equipment, data processing, communications and supplies) increased in 2007 primarily related to the aforementioned branch acquisition and overall growth in the organization. Loan and collection expenses also rose in the fourth quarter of 2007 primarily due to the elevated level of non-performing loans.

2

Asset Quality

The increase in non-performing loans since year-end 2006 is due principally to an increase in non-performing commercial loans and real estate mortgage loans. The increase in non-performing commercial loans is primarily attributable to the addition of several large credits with real estate developers becoming past due in 2007. These delinquencies largely reflect cash flow difficulties encountered by many real estate developers in Michigan confronting a significant decline in sales of real estate. The increase in non-performing real estate mortgage loans is primarily due to a rise in foreclosures reflecting both weak economic conditions and soft residential real estate values in many parts of Michigan. Other real estate and repossessed assets totaled $6.1 million at December 31, 2007, compared to $3.2 million at December 31, 2006.

The provision for loan losses was $9.4 million and $8.0 million in the fourth quarters of 2007 and 2006, respectively. The level of the provision for loan losses in each period reflects the Company’s assessment of the allowance for loan losses, taking into consideration factors such as loan mix, levels of non-performing and classified loans and loan net charge-offs. Loan net charge-offs were $6.7 million (1.05% annualized of average loans) in the fourth quarter of 2007, compared to $5.3 million (0.85% annualized of average loans) in the fourth quarter of 2006. The fourth quarter 2007 loan net charge-offs were divided among the following categories: commercial loans, $2.6 million; consumer, $1.3 million (including $0.3 million of deposit overdrafts); real estate mortgage, $2.7 million; and finance receivables, $0.1 million. The commercial loan and real estate mortgage loan net charge-offs in the fourth quarter of 2007 primarily reflect write-downs to expected liquidation values for real estate or other collateral securing the loans. At December 31, 2007, the allowance for loan losses totaled $45.3 million, or 1.78% of portfolio loans, compared to $26.9 million or 1.08% of portfolio loans at December 31, 2006.

Commenting on asset quality, CEO Magee stated: “The rate of non-performing loan growth showed signs of moderating during the fourth quarter of 2007, when compared to earlier quarters in the year. Additionally, we saw some declines in 30-day delinquencies at year-end. Although we are hopeful that these recent trends will eventually lead to lower credit costs and a general stabilization of the market in 2008, we remain concerned about ongoing challenges within our commercial (primarily real estate development related credits) and real estate mortgage portfolios. Our elevated level of non-performing loans is closely aligned with a general slowing in the residential housing market, and the effect this slowing has had on borrowers, including several residential real estate developers who became past due on their loans in recent quarters.”

“Our organization remains intensely focused on improving asset quality,” continued Magee. “This focus includes thorough quarterly credit quality reviews and the day to day management of our non-performing and watch credit loans by our special assets group.”

A breakdown of non-performing loans by loan type is as follows:

Loan Type	12/31/2007			9/30/2007			12/31/2006
	(Dollars in Millions)
Commercial	$	49.0		$	52.0		$	21.6
Consumer		3.7			3.1			2.5
Real estate mortgage		26.1			21.4			13.0
Finance receivables (excludes discontinued operations)		1.7			2.7			2.1
Total	$	80.5		$	79.2		$	39.2
Ratio of non-performing loans to total portfolio loans		3.16	%		3.15	%		1.58	%
Ratio of the allowance for loan losses to non-performing loans		56.28	%		53.44	%		68.53	%

3

Balance Sheet

Total assets were $3.28 billion at December 31, 2007, compared to $3.43 billion at December 31, 2006. Loans, excluding loans held for sale, were $2.55 billion at December 31, 2007 compared to $2.48 billion at December 31, 2006. Deposits totaled $2.51 billion at December 31, 2007, a decrease of $97.7 million from December 31, 2006. The decrease in deposits reflects a $373.4 million decline (excluding discontinued operations) in brokered certificates of deposits (“brokered CD’s”) that was partially offset by the aforementioned branch acquisition. During the fourth quarter of 2007 maturing brokered CD’s were replaced with borrowings from the Federal Home Loan Bank due to lower comparative costs.

Stockholders’ equity totaled $240.5 million at December 31, 2007, or 7.34% of total assets, representing a net book value per share of $10.62. The Company remains “well capitalized” for regulatory purposes.

Magee concluded, “While 2007 was one of the more challenging years in recent memory, it was an important period in the history of our Company given the number of business initiatives we introduced during the year, not least of which included targeted efforts to improve asset quality, attract new customers, increase non-interest income, bolster the active management of our loan portfolio and, as before, improve efficiencies throughout our organization.

Although a soft Michigan economy and the resulting increase in credit costs have continued to overshadow the underlying strength of our business in recent quarters, we are optimistic that our unrelenting commitment to the fundamentals of community banking, supported by the strong dedication, talent and efforts of our associates, will position us for improved performance in the future.”

Conference Call

Michael M. Magee, President and Chief Executive Officer, Robert N. Shuster, Chief Financial Officer and Stefanie M. Kimball, Chief Lending Officer, will review fourth quarter 2007 results in a conference call for investors and analysts beginning at 2:30 p.m. ET on Wednesday, January 23, 2008.

To participate in the live conference call, please dial 1-800-860-2442. The call can also be accessed (listen-only mode) via the Company’s website at www.ibcp.com in the “Investor Relations” section. A playback of the call can be accessed by dialing 1-877-344-7529 (Replay Passcode # 414697). The replay will be available through February 1, 2008.

In addition, a Power Point presentation associated with the fourth quarter 2007 conference call will be available on the Company’s website at www.ibcp.com in the “Investor Relations” section under the “Presentations” tab beginning on Wednesday, January 23, 2008.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of over $3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation now operates over 100 offices across Michigan’s Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, investments and title services. Payment plans to purchase vehicle service contracts are also available through Mepco Finance Corporation, a wholly owned subsidiary of Independent Bank. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves. For more information, please visit our website at: www.ibcp.com.

Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “believe,” “intend,” “estimate,” “project,” “may” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are predicated on management’s beliefs and assumptions based on information known to Independent Bank Corporation’s management as of the date of this news release and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Independent Bank Corporation’s management for future or past operations, products or services, and forecasts of the Company’s revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries, and estimates of credit quality trends. Such statements reflect the view of Independent Bank Corporation’s management as of this date with respect to future events and are not guarantees of future performance, involve assumptions and are subject to substantial risks and uncertainties, such as the changes in Independent Bank Corporation’s plans, objectives, expectations and intentions. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in interest rates, changes in the accounting treatment of any particular item, the results of regulatory examinations, changes in industries where the Company has a concentration of loans, changes in the level of fee income, changes in general economic conditions and related credit and market conditions, and the impact of regulatory responses to any of the foregoing. Forward-looking statements speak only as of the date they are made. Independent Bank Corporation does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this news release or in any documents, Independent Bank Corporation claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

4

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition

	December 31, 2007			December 31, 2006
	(unaudited)
Assets	(in thousands)
Cash and due from banks	$	79,289		$	73,142
Securities available for sale		364,194			434,785
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		21,839			14,325
Loans held for sale		33,960			31,846
Loans
Commercial		1,066,276			1,083,921
Real estate mortgage		877,240			865,522
Installment		368,856			350,273
Finance receivables		238,197			183,679
Total Loans		2,550,569			2,483,395
Allowance for loan losses		(45,294	)		(26,879	)
Net Loans		2,505,275			2,456,516
Property and equipment, net		73,558			67,992
Bank owned life insurance		42,934			41,109
Goodwill		66,754			48,709
Other intangibles		15,262			7,854
Assets of discontinued operations					189,432
Accrued income and other assets		73,017			64,188
Total Assets	$	3,276,082		$	3,429,898
Liabilities and Shareholders' Equity
Deposits
Non-interest bearing	$	294,332		$	282,632
Savings and NOW		987,299			875,541
Time		1,223,496			1,444,618
Total Deposits		2,505,127			2,602,791
Federal funds purchased		54,452			84,081
Other borrowings		302,539			163,681
Subordinated debentures		92,888			64,197
Financed premiums payable		44,911			32,767
Liabilities of discontinued operations		34			183,676
Accrued expenses and other liabilities		35,629			40,538
Total Liabilities		3,035,580			3,171,731
Shareholders' Equity
Preferred stock, no par value--200,000 shares authorized; none
outstanding
Common stock, $1.00 par value--40,000,000 shares authorized;
issued and outstanding: 22,647,511 shares at December 31, 2007
and 22,864,587 shares at December 31, 2006		22,601			22,865
Capital surplus		195,302			200,241
Retained earnings		22,770			31,420
Accumulated other comprehensive income (loss)		(171	)		3,641
Total Shareholders' Equity		240,502			258,167
Total Liabilities and Shareholders' Equity	$	3,276,082		$	3,429,898

5

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations

	Three Months Ended								Twelve Months Ended
	December 31,			September 30,		December 31,			December 31,
	2007			2007		2006			2007			2006
	(unaudited)
	(in thousands)
Interest Income
Interest and fees on loans	$	50,891			50,941	$	50,103		$	202,361		$	193,937
Securities available for sale
Taxable		2,258			2,308		2,750			9,635			11,108
Tax-exempt		2,297			2,488		2,745			9,920			11,048
Other investments		328			232		189			1,338			802
Total Interest Income		55,774			55,969		55,787			223,254			216,895
Interest Expense
Deposits		20,684			22,590		21,344			89,060			74,290
Other borrowings		5,022			2,964		4,591			13,603			19,408
Total Interest Expense		25,706			25,554		25,935			102,663			93,698
Net Interest Income		30,068			30,415		29,852			120,591			123,197
Provision for loan losses		9,393			10,735		7,963			43,160			16,344
Net Interest Income After Provision for Loan Losses		20,675			19,680		21,889			77,431			106,853
Non-interest Income
Service charges on deposit accounts		6,418			6,565		5,152			24,251			19,936
Mepco litigation settlement													2,800
Net gains (losses) on assets
Real estate mortgage loans		904			1,094		1,264			4,317			4,593
Securities		(964	)		52					(705	)		171
VISA check card interchange income		1,376			1,287		900			4,905			3,432
Real estate mortgage loan servicing		364			633		605			2,236			2,440
Title insurance fees		344			363		426			1,551			1,724
Other income		2,731			2,535		2,399			10,590			9,754
Total Non-interest Income		11,173			12,529		10,746			47,145			44,850
Non-interest Expense
Compensation and employee benefits		13,438			13,621		13,323			55,811			50,801
Occupancy, net		2,754			2,521		2,311			10,624			9,626
Furniture, fixtures and equipment		1,944			1,798		1,874			7,633			7,057
Data processing		1,854			1,753		1,481			6,957			5,619
Advertising		1,549			1,472		988			5,514			3,997
Branch acquisition and conversion costs										330
Goodwill impairment							2,963			343			3,575
Loss on receivable from warranty payment plan seller							2,400						2,400
Other expenses		8,046			7,207		5,748			28,512			23,141
Total Non-interest Expense		29,585			28,372		31,088			115,724			106,216
Income From Continuing Operations Before Income Tax		2,263			3,837		1,547			8,852			45,487
Income tax expense (benefit)		(15	)		160		584			(1,103	)		11,662
Income From Continuing Operations		2,278			3,677		963			9,955			33,825
Discontinued operations, net of tax		154			48		(656	)		402			(622	)
Net Income	$	2,432		$	3,725	$	307		$	10,357		$	33,203

6

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data

	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,
	2007			2007			2006			2007			2006
	(unaudited)
Per Share Data (A)
Income From Continuing
Operations
Basic	$	.10		$	.16		$	.04		$	.44		$	1.48
Diluted		.10			.16			.04			.44			1.45
Net Income
Basic	$	.11		$	.16		$	.01		$	.46		$	1.45
Diluted		.11			.16			.01			.45			1.43
Cash dividends declared		.21			.21			.20			.84			.78
Selected Ratios (annualized)
As a Percent of Average Interest-Earning Assets
Tax equivalent interest income		7.65	%		7.75	%		7.69	%		7.71	%		7.59	%
Interest expense		3.43			3.44			3.47			3.45			3.18
Tax equivalent net interest income		4.22			4.31			4.23			4.26			4.41
Income From Continuing Operations
Average equity		3.68	%		5.93	%		1.44	%		3.96	%		13.06	%
Average assets		0.28			0.45			0.11			0.31			0.99
Net Income to
Average equity		3.93	%		6.01	%		0.46	%		4.12	%		12.82	%
Average assets		0.30			0.46			0.04			0.32			0.97
Average Shares (A)
Basic		22,600,461			22,586,916			22,858,199			22,649,334			22,905,857
Diluted		22,703,111			22,732,135			23,199,981			22,830,486			23,272,330

(A) Average shares of common stock for basic net income per share include shares issued and outstanding during the period. Average shares of common stock for diluted net income per share include shares to be issued upon exercise of stock options and stock units for deferred compensation plan for non-employee directors.

7

EX-99

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data

Non-performing assets

	December 31,			December 31,
	2007			2006
	(dollars in thousands)
Non-accrual loans	$	76,355		$	35,683
Loans 90 days or more past due and
still accruing interest		3,958			3,479
Restructured loans		173			60
Total non-performing loans		80,486			39,222
Other real estate		6,050			3,153
Total non-performing assets	$	86,536		$	42,375
As a percent of Portfolio Loans
Non-performing loans		3.16	%		1.58	%
Allowance for loan losses		1.78			1.08
Non-performing assets to total assets		2.64			1.24
Allowance for loan losses as a percent of
non-performing loans		56			69

Allowance for loan losses

	Twelve months ended December 31,
	2007					2006
	Loans			Unfunded Commitments		Loans			Unfunded Commitments
	(in thousands)
Balance at beginning of period	$	26,879		$	1,881	$	22,420		$	1,820
Additions (deduction)
Provision charged to operating expense		43,105			55		16,283			61
Recoveries credited to allowance		2,346					2,237
Loans charged against the allowance		(27,036	)				(14,061	)
Balance at end of period	$	45,294		$	1,936	$	26,879		$	1,881
Net loans charged against the allowance to
average Portfolio Loans		0.98	%				0.48	%

Alternative Sources of Funds

	December 31, 2007								December 31, 2006
	Amount		Average Maturity			Rate			Amount		Average Maturity			Rate
	(dollars in thousands)
Brokered CDs(1, 2)	$	516,077		1.9 year	s		4.72	%	$	1,055,010		1.9 year	s		4.72	%
Fixed rate FHLB advances(1)		240,509		1.3 year	s		4.81			58,272		4.6 year	s		5.66
Variable rate FHLB advances(1)		20,000		.3 year	s		4.35			2,000		0.5 year	s		5.31
Securities sold under agreements to
Repurchase(1)		35,000		2.9 year	s		4.42			83,431		0.1 year	s		5.34
Federal funds purchased		54,452		1 da	y		4.00			84,081		1 da	y		5.40
Total	$	866,038		1.6 year	s		4.68	%	$	1,282,794		1.8 year	s		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.

(2) The balance of Brokered CD’s at December 31, 2006 includes $165.496 million related to discontinued operations.

Capitalization

	December 31,			December 31,
	2007			2006
	(in thousands)
Unsecured debt	$	3,000		$	5,000
Subordinated debentures		92,888			64,197
Amount not qualifying as regulatory capital		(2,788	)		(1,847	)
Amount qualifying as regulatory capital		90,100			62,350
Shareholders' Equity
Preferred stock, no par value
Common stock, par value $1.00 per share		22,601			22,865
Capital surplus		195,302			200,241
Retained earnings		22,770			31,420
Accumulated other comprehensive income (loss)		(171	)		3,641
Total shareholders' equity		240,502			258,167
Total capitalization	$	333,602		$	325,517

2

Non-Interest Income

	Three months ended							Twelve months ended
	December 31,			September 30,		December 31,		December 31,
	2007			2007		2006		2007			2006
	(in thousands)
Service charges on deposit
accounts	$	6,418		$	6,565	$	5,152	$	24,251		$	19,936
Mepco litigation settlement												2,800
Net gains (losses) on assets
Real estate mortgage loans		904			1,094		1,264		4,317			4,593
Securities		(964	)		52				(705	)		171
VISA check card interchange income		1,376			1,287		900		4,905			3,432
Real estate mortgage loan servicing		364			633		605		2,236			2,440
Mutual fund and annuity commissions		609			517		321		2,072			1,291
Bank owned life insurance		462			471		433		1,830			1,628
Title insurance fees		344			363		426		1,551			1,724
Manufactured home loan origination fees
and commissions					10		184		239			884
Other		1,660			1,537		1,461		6,449			5,951
Total non-interest income	$	11,173		$	12,529	$	10,746	$	47,145		$	44,850

Real Estate Mortgage Loan Activity

	Three months ended									Twelve months ended
	December 31,			September 30,			December 31,			December 31,
	2007			2007			2006			2007			2006
	(in thousands)
Real estate mortgage loans originated	$	147,220		$	113,563		$	125,031		$	507,211		$	525,849
Real estate mortgage loans sold		64,547			77,154			72,298			288,826			281,285
Real estate mortgage loans sold with
servicing rights released		9,379			14,121			11,436			47,783			41,494
Net gains on the sale of real estate   mortgage loans		904			1,094			1,264			4,317			4,593
Net gains as a percent of real estate
mortgage loans sold ("Loan Sale Margin")		1.40	%		1.42	%		1.75	%		1.49	%		1.63	%
SFAS #133 adjustments included in the
Loan Sale Margin		(0.18	)		(0.06	)		0.15			(0.06	)		0.05

Capitalized Real Estate Mortgage Loan Servicing Rights

	Three months ended December 31,						Twelve months ended December 31,
	2007			2006			2007			2006
	(in thousands)
Balance at beginning of period	$	15,830		$	14,453		$	14,782		$	13,439
Originated servicing rights capitalized		651			726			2,873			2,862
Amortization		(404	)		(348	)		(1,624	)		(1,462	)
(Increase)/decrease in impairment reserve		(297	)		(49	)		(251	)		(57	)
Balance at end of period	$	15,780		$	14,782		$	15,780		$	14,782
Impairment reserve at end of period	$	319		$	68		$	319		$	68

3

Non-Interest Expense

	Three months ended						Twelve months ended
	December 31,		September 30,		December 31,		December 31,
	2007		2007		2006		2007		2006
	(in thousands)
Salaries	$	9,825	$	9,771	$	9,380	$	40,373	$	37,597
Performance-based compensation     and benefits		1,218		1,287		1,536		4,979		3,200
Other benefits		2,395		2,563		2,407		10,459		10,004
Compensation and employee benefits		13,438		13,621		13,323		55,811		50,801
Occupancy, net		2,754		2,521		2,311		10,624		9,626
Furniture, fixtures and equipment		1,944		1,798		1,874		7,633		7,057
Data processing		1,854		1,753		1,481		6,957		5,619
Advertising		1,549		1,472		988		5,514		3,997
Loan and collection		1,437		1,285		896		4,949		3,610
Credit card and bank service fees		1,037		939		959		3,913		3,839
Communications		1,003		962		852		3,809		3,556
Supplies		633		590		553		2,411		2,113
Amortization of intangible assets		934		934		600		3,373		2,400
Legal and professional		511		504		516		1,978		1,853
Branch acquisition and conversion costs								330
Loss on receivable from warranty
payment plan seller						2,400				2,400
Goodwill impairment						2,963		343		3,575
Other		2,491		1,993		1,372		8,079		5,770
Total non-interest expense	$	29,585	$	28,372	$	31,088	$	115,724	$	106,216

4

Average Balances and Tax Equivalent Rates

	Three Months Ended December 31,
	2007							2006
	Average Balance		Interest		Rate			Average Balance		Interest		Rate
Assets	(dollars in thousands)
Taxable loans (1)	$	2,564,579	$	50,772		7.87	%	$	2,504,662	$	49,999		7.94	%
Tax-exempt loans (1,2)		9,919		183		7.32			9,371		160		6.77
Taxable securities		162,585		2,258		5.51			195,039		2,750		5.59
Tax-exempt securities (2)		209,882		3,686		6.97			245,147		4,351		7.04
Other investments		26,863		328		4.84			15,123		189		4.96
Interest Earning Assets -
Continuing Operations		2,973,828		57,227		7.65			2,969,342		57,449		7.69
Cash and due from banks		56,470							52,180
Taxable loans - discontinued operations		476							188,208
Other assets, net		224,519							214,064
Total Assets	$	3,255,293						$	3,423,794
Liabilities
Savings and NOW	$	992,317		4,849		1.94		$	865,784		3,875		1.78
Time deposits		1,298,269		15,835		4.84			1,464,759		17,469		4.73
Long-term debt		1,495		18		4.78			3,495		49		5.58
Other borrowings		332,151		5,004		5.98			295,589		4,542		6.10
Interest Bearing Liabilities-
Continuing Operations		2,624,232		25,706		3.89			2,629,627		25,935		3.91
Demand deposits		299,112							278,522
Time deposits - discontinued operations		339							163,915
Other liabilities		86,183							85,746
Shareholders' equity		245,427							265,984
Total liabilities and shareholders' equity	$	3,255,293						$	3,423,794
Tax Equivalent Net Interest Income			$	31,521						$	31,514
Tax Equivalent Net Interest Income
as a Percent of Earning Assets						4.22	%						4.23	%

(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%

5

Average Balances and Tax Equivalent Rates

	Twelve Months Ended December 31,
	2007							2006
	Average Balance		Interest		Rate			Average Balance		Interest		Rate
Assets	(dollars in thousands)
Taxable loans (1)	$	2,531,737	$	201,924		7.98	%	$	2,464,798	$	193,606		7.85	%
Tax-exempt loans (1,2)		9,568		672		7.02			7,293		509		6.98
Taxable securities		179,878		9,635		5.36			207,456		11,108		5.35
Tax-exempt securities (2)		225,676		15,773		6.99			248,495		17,484		7.04
Other investments		26,017		1,338		5.14			16,366		802		4.90
Interest Earning Assets -
Continuing Operations		2,972,876		229,342		7.71			2,944,408		223,509		7.59
Cash and due from banks		57,174							53,844
Taxable loans - discontinued operations		8,542							198,335
Other assets, net		218,553							210,190
Total Assets	$	3,257,145						$	3,406,777
Liabilities
Savings and NOW	$	971,807		18,768		1.93		$	864,528		13,604		1.57
Time deposits		1,439,177		70,292		4.88			1,405,850		60,686		4.32
Long-term debt		2,240		104		4.64			4,240		205		4.83
Other borrowings		205,811		13,499		6.56			329,175		19,203		5.83
Interest Bearing Liabilities-
Continuing Operations		2,619,035		102,663		3.92			2,603,793		93,698		3.60
Demand deposits		300,886							279,279
Time deposits - discontinued operations		6,166							172,317
Other liabilities		79,750							92,451
Shareholders' equity		251,308							258,937
Total liabilities and shareholders' equity	$	3,257,145						$	3,406,777
Tax Equivalent Net Interest Income			$	126,679						$	129,811
Tax Equivalent Net Interest Income
as a Percent of Earning Assets						4.26	%						4.41	%

(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%

6

Commercial Loan Portfolio Analysis as of December 31, 2007

	Total Commercial Loans
			Watch Credits						Percent
									of Loan
Loan Category	All Loans		Performing		Non-performing		Total		Category in Watch Credit
	(dollars in thousands)
Land	$	31,581	$	14,676	$	10,340	$	25,016		79.2	%
Land Development		58,294		23,883		14,424		38,307		65.7	%
Construction		96,252		28,929		5,696		34,625		36.0	%
Income Producing		338,760		22,321		9,881		32,202		9.5	%
Owner Occupied		339,510		47,499		7,012		54,511		16.1	%
Total Commercial Real Estate Loans(1)	$	864,397		137,308		47,353	$	184,661		21.4	%
Other Commercial Loans(1)	$	198,343	$	21,701		1,592	$	23,293		11.7	%
Total non-performing commercial loans					$	48,945

	Commercial Loans in Southeastern Michigan
			Watch Credits						Percent
									of Loan
Loan Category	All Loans		Performing		Non-performing		Total		Category in Watch Credit
	(dollars in thousands)
Land	$	21,543	$	14,321	$	7,222	$	21,543		100.0	%
Land Development		23,969		9,189		10,424		19,613		81.8	%
Construction		25,446		8,786		1,306		10,092		40.0	%
Income Producing		109,920		7,477		5,462		12,939		11.8	%
Owner Occupied		93,489		13,369		620		13,989		15.0	%
Total Commercial Real Estate Loans	$	274,367	$	53,142		25,034	$	78,176		28.5	%
Other Commercial Loans	$	56,728	$	7,756		880	$	8,636		15.2	%
Total non-performing commercial
loans in Southeastern Michigan					$	25,914

(1) The total of these two categories is different than the December 31, 2007, Consolidated Statement of Financial Condition due primarily to loans in process.

7

EX-99

Independent Bank Corporation
4th Quarter 2007 Earnings Conference Call — January 23, 2008

Overview of 4th Quarter 2007 Results
Michael M. Magee, President and Chief Executive Officer

2

Safe Harbor Statement

This presentation may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include expressions such as “expects,” “intends,” “believes” and “should” which are necessarily statements of belief as to expected outcomes of future events. Actual results could materially differ from those contained in, or implied by such statements. Independent Bank Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this presentation.

3

Financial Overview

	4Q07		3Q07		4Q06		12M'07		12M'06
Income from continuing
operations (millions)	$	2.3	$	3.7	$	1.0	$	10.0	$	33.8
EPS - continuing operations	$	0.10	$	0.16	$	0.04	$	0.44	$	1.45
ROA - continuing operations		0.28%		0.45%		0.11%		0.31%		0.99%
ROE - continuing operations		3.68%		5.93%		1.44%		3.96%		13.06%
Total assets (billions) at
period end		$3.28		$3.26		$3.43
Stockholders' equity
(millions) at period end		$240.5		$244.4		$258.2
Common shares
outstanding (millions)
at period end		22.65		22.65		22.86

4

4Q:07 — High-Level Overview

• Strategic Achievements

– Continued to build a brand presence in existing markets

– Efforts to improve credit quality remain a top priority – focused on loan monitoring + portfolio management function

• Operational Achievements

– Maintained profitability despite elevated credit costs and other than temporary impairment charge

– Continued growth in several categories of non-interest income

– Rate of non-performing loan growth showed signs of slowing

• Strategic challenges

– Michigan economy remains weak; tough competitive environment

– Decline in commercial + residential real estate value

• Operational challenges

– Asset quality and related increase in non-performing loans resulting in an elevated provision for loan losses and higher loan and collection expenses

5

Economic Headwinds Persist

• U.S. economy on the precipice of consumer-led recession?

– Housing starts at 1991-low; residential real estate prices yet to trough; residential inventories remain high

– Continued decline in residential property values has impacted consumer confidence; household balance sheet has been impacted by substantial reduction in home equity values

– Consumer reliance on revolving credit could be impacted by tighter credit environment

• Michigan economy remains one of the weakest in U.S.

– Decline of manufacturing industry, particularly in SE Michigan

– Job growth remains stagnant

– Depreciation of both commercial and residential property values

– Unfavorable business taxes and stringent labor laws

•
Impact on the regional banking industry. Slowing loan growth, weaker credit quality, increased credit costs; net interest margin pressure

6

Outlook for 2008

• Strategic Initiatives – remain focused on our strengths as a leading community bank

– Improve brand awareness

– Improve asset quality

– Core deposit growth

– Review business lines and locations based on performance and return on allocated capital

• Operational Initiatives

– Continued focus on utilizing technology to drive process improvements and greater efficiency

– Enhanced customer retention initiatives

– Continued investment in training and professional development

• General Business Outlook

– Sluggish loan growth, elevated levels of non-performing assets, and loan and collection costs continue to challenge the bottom line 

– Optimistic that current adverse credit cycle in RE development begins to abate by mid-year leading to lower credit costs

7

4th Quarter 2007 Financial Review
Robert N. Shuster, Executive Vice President and CFO

8

4th Quarter 2007 Recap

• Positive Factors

– Provision for loan losses slightly lower on a sequential quarterly basis

– Slowing in growth of non-performing loans and some declines in 30 day delinquencies

– Several categories of non-interest income remain strong

– Balance sheet structured to benefit from further cuts in short-term rates and/or a steeper yield curve

– Moderation in LIBOR rates subsequent to year end

• Challenges

– Credit costs

– Asset quality diminished by an elevated level of non-performing assets; largely attributable to non-performing commercial loans and real estate mortgage loans

– Weak Michigan economy

– Other than temporary impairment on agency preferred securities

9

Tax Equivalent Net Interest Margin

10

TE Net Interest Income

11

Non-Interest Income

Category ($ in 000's)	4Q07			3Q07		4Q06
Total non-interest income		11,173			12,529		10,746
Service charges - deposits		6,418			6,565		5,152
VISA check card income		1,376			1,287		900
Gain (loss) on securities		(964	)		52		--
Net gains - mortgage loan sales		904			1,094		1,264
Mortgage loan servicing fees		364			633		605
Mutual fund and annuity commissions		609			517		321

12

Non-Interest Expense

Category ($ in 000's)	4Q07		3Q07		4Q06
Total non-interest expense(a)		29,585		28,372		31,088
Compensation & employee benefits		13,438		13,621		13,323
Advertising		1,549		1,472		988
Amortization of intangible assets		934		934		600
Loan and collection		1,437		1,285		896

(a)    The fourth quarter of 2006 includes $3.0 million goodwill impairment charge and $2.4 million write-off of receivable from warranty payment plan seller.

13

Provision for Loan Losses

14

Asset Quality Measures — Non-Performing Loans

Non-performing loans by loan type ($ in 000's)	12/31/07			9/30/07			12/31/06
Commercial (a)		48,945			52,003			21,624
Mortgage		26,125			21,354			12,954
Consumer		3,694			3,112			2,496
Finance receivables (b)		1,722			2,741			2,148
Total	$	80,486		$	79,210		$	39,222
As a % of total loans		3.16	%		3.15	%		1.58	%

(a) The 12/31/07 balance includes a $1.7 million (remaining book value) commercial loan that was sold for this amount in mid-January 2008 and the 9/30/07 balance includes a commercial relationship (consisting of three loans) totaling $8.4 million that was brought current on 10/5/07.

(b) Excludes discontinued operations.

15

Allowance for Loan Losses

Allocation ($ in 000's)	12/31/07			9/30/07			12/31/06
Specific loan allocations		10,713			10,426			2,631
Adversely rated loans		10,804			9,460			5,144
Historical losses		14,668			13,807			11,641
Other factors/subjective		9,109			8,634			7,463
Total	$	45,294		$	42,327		$	26,879
As a % of portfolio loans		1.78	%		1.69	%		1.08	%

16

Asset Quality Measures — Net Loan Charge-Offs

Net loan charge-offs   by loan type ($ in 000's)	4Q07			3Q07			2Q07			1Q07
Commercial		2,637			3,893			5,478			1,900
Mortgage		2,739			1,819			945			760
Consumer		964			560			557			1,050
Overdrafts		333			362			360			129
Finance receivables*		46			14			24			121
Total	$	6,719		$	6,648		$	7,364		$	3,960
As a % of average loans		1.05	%		1.05	%		1.18	%		0.65	%

          *Excludes discontinued operations.

17

Balance Sheet Overview

18

IBCP — Cash Dividend Outlook

• We view our dividend policy on a long-term basis and are confident that our elevated credit costs will eventually subside and we will more than earn our cash dividend.

• Parent company liquidity remains very strong with $18.6 million in cash and continued access to $10 million line of credit (no draws on line at year-end).

• Our bank subsidiary remains “well capitalized.” Further, because we anticipate modest near-term asset growth, the down streaming of additional capital is not expected to be necessary.

• Our Board of Directors will consider our Apr. 30, 2008 cash dividend in mid-March. The dividend decision will consider earnings in the first two months of the quarter, holding comopany tangible capital level, holding company liquidity and the updated outlook for credit costs.

19

4th Quarter 2007 Credit Review
Stefanie M. Kimball, Executive Vice President and Chief Lending Officer

20

Total Commercial Loan Balances Were Flat During the
4th Quarter and Declined Approximately 2% During 2007

*Note: Acquisitions in 2004 of Midwest Guaranty Bank and First National Bank of Gaylord.

Total Outstandings do not include "Loans in Process" which at 12/31/07 totaled $3,537M

21

Strategic Shift Towards C&I and Away From Certain
CRE Segments Commenced in Mid 2007

		Vacant Land			Land Development			Construction			Income Producing			Owner Occupied			C&I			Total
2006	Outstanding	$	37,211		$	68,717		$	93,828		$	347,703		$	344,778		$	183,494		$	1,075,730
	% of Portfolio		3.46	%		6.39	%		8.72	%		32.32	%		32.05	%		17.06	%		100.00	%
2007	Outstanding	$	31,581		$	58,294		$	96,252		$	338,760		$	339,510		$	198,343		$	1,062,739
	% of Portfolio		2.97	%		5.49	%		9.06	%		31.88	%		31.95	%		18.66	%		100.00	%
Change	Outstanding	$	(5,630	)	$	(10,423	)	$	2,424		$	(8,943	)	$	(5,268	)	$	14,849		$	(12,991	)
	% of Portfolio		-15	%		-15	%		3	%		-3	%		-2	%		8	%		-1	%

Values are in Thousands

Total Outstandings do not include "Loans in Process" of $3,537M and $8,191M respectively for 2007 and 2006

22

Land/Land Development CRE Segments are Declining
and Represent a Relatively Small Portion of the
Overall Portfolio

Values are in thousands and do not include loans in process

23

Select Commercial Real Estate Segments Have
Contributed Disproportionately to the Level of Watch
Credits

24

Total Internal Watch Credits Continued to Rise
in the 4th Quarter

25

2007 Portfolio Management Highlights

• Strategic shift toward more traditional C&I loans underway

• Dedicated relationship managers in each market utilize a community banking approach to provide a comprehensive spectrum of banking services: “Small enough to know you, Large enough to serve you”

• Comprehensive training program for commercial lenders has commenced and will be a focus in 2008 to position the sales force for more significant growth in 2009.

• Investing in our employees is the best way to provide high quality service to our commercial customers and to weather the Michigan credit storm.

26

Commercial 30+ Delinquency Decreased in the 4th
Quarter

27

Commercial Non-Accruals Continued to Rise
in the 4th Quarter

28

Commercial Charge-Offs Declined in the 3rd and 4th
Quarters of 2007

29

Economic Headwinds Continue to Challenge Clients

• Michigan’s economic environment continues to challenge businesses in the State, particularly those dependent upon the sale of residential real estate.

• Record levels of residential real estate inventory are reported in many communities.

• Significant commercial real estate de-valuations have been experienced.

• Most of IBC’s commercial real estate exposure in these segments has already been placed on watch status.

• Geographic diversification within the State mitigates the stress currently experienced in SE Michigan.

30

Credit Quality Best Practices Implemented in 2007
Position Independent Bank to Weather the
"Credit Storm"

• Quarterly Watch Process to proactively manage higher risk loans is in place.

• Risk Ratings are independently assigned and structure recommendations made upfront by Credit Officers.

• A Special Assets Group has been established to provide more effective management of our most troubled loans. A select group of law firms supports the team, providing professional advice and systemic feedback.

• Loan Review provides portfolio/individual loan feedback to evaluate the effectiveness of processes by market.

• Accountability is ensured with management by objectives for each Lender and Senior Lender that emphasize credit quality in addition to growth and profitability.

• Risk Based Pricing will be enhanced with improvements underway to our pricing model.

• Collateral Monitoring enhancements are being implemented for both Commercial Real Estate and C & I Lending.

• Portfolio Concentrations are monitored with select loan types encouraged.

31

Total Retail Loan Balances Increased in 4th Quarter of
2007

32

Retail 30-89 Day Delinquency Decreased in the 4th
Quarter

33

Retail Non-Performing Assets Continued to Rise
in the 4th Quarter

Includes Non-Performing Loans, ORE and Repossessed Assets

34

Total Retail Charge-Offs Increased in 3rd and 4th
Quarters of 2007

35

Q & A

Michael M. Magee, Jr.
President and Chief Executive Officer

Robert N. Shuster
Executive Vice President and
Chief Financial Officer

Stefanie M. Kimball
Executive Vice President and
Chief Lending Officer

36

Thank you for participating in the conference call.

37