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: April 24, 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 April 24, 2008, Independent Bank Corporation issued a press release announcing its financial results for the quarter ended March 31, 2008. 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 first quarter 2008 conference call to be conducted beginning at 10:00 a.m. ET on Friday, April 25, 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 April 24, 2008.

99.2 Supplemental data to the Registrant's press release dated April 24, 2008.

99.3 Slide presentation dated April 24, 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:     April 24, 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 FIRST QUARTER 2008 RESULTS

IONIA, Mich., Apr. 24, 2008 — Independent Bank Corporation (NASDAQ: IBCP), a leading Michigan-based community bank, reported first quarter 2008 net income from continuing operations of $0.3 million, or $0.01 per diluted share, versus net income from continuing operations of $3.9 million, or $0.17 per diluted share, in the prior-year period. For the quarter ended March 31, 2008, the Company recorded net income of $0.3 million, or $0.01 per diluted share, compared to net income of $4.2 million, or $0.18 per diluted share, in the first quarter of 2007.

Return on average equity and return on average assets (based on net income from continuing operations) were 0.56% and 0.04%, respectively, in the first quarter of 2008, compared to 6.08% and 0.48%, respectively, in the first quarter of 2007.

The year-on-year decline in first quarter 2008 income from continuing operations was primarily attributable to a $3.2 million ($0.09 per diluted share after tax) increase in the provision for loan losses, a $2.2 million ($0.06 per diluted share after tax) negative fair value adjustment on certain preferred securities, and a $0.7 million ($0.02 per diluted share after tax) impairment charge on capitalized mortgage loan servicing rights. These items were partially offset by a $0.8 million ($0.02 per diluted share after tax) increase on net gains on mortgage loans, a $0.5 million ($0.01 per diluted share after tax) benefit related to the Visa, Inc. initial public offering (Visa IPO) as described below and a $1.6 million ($0.07 per diluted share) reduction in our federal income taxes due to the release of a previously established tax reserve resulting from a favorable development on the treatment of a particular tax position.

Michael M. Magee, President and CEO of Independent Bank Corporation, commented: “Our first quarter results were primarily impacted by an increase in the loan loss provision and loan and collection expenses when compared to the year ago period, as several commercial real estate loans shifted from watch credit to non-performing status, generally a product of soft residential real estate values in various regions of Michigan. Despite these issues, we remained profitable during the first quarter, increased our net interest margin and continued to grow some categories of non-interest income.”

Operating Results

The Company’s tax equivalent net interest income totaled $31.8 million during the first quarter of 2008, an increase of $0.6 million or 1.8% from the year-ago period, and an increase of $0.3 million, or 0.8% from the fourth quarter of 2007. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 4.30% during the first quarter of 2008 compared to 4.23% in the year ago period, and 4.22% in the fourth quarter of 2007. As noted in the Company’s fourth quarter 2007 earnings release, based on current conditions, declining short-term interest rates were expected to have a beneficial impact on the future net interest margin. While some of this benefit was evident in the first quarter of 2008, the full realization of this benefit has been partially offset by the adverse impact of an increased level of non-performing assets. Interest income was reduced by $0.8 million in the first quarter of 2008 (compared to $0.3 million in the first quarter of 2007) due to the reversal of interest on loans placed on non-accrual during the quarter. Service charges on deposits totaled $5.6 million in the first quarter of 2008, a 15.5% increase from the comparable period in 2007. VISA check card interchange income increased by 44.3% to $1.4 million for the first quarter of 2008, up from $1.0 million in the first quarter of 2007. The increase in deposit-related revenues resulted primarily from customers added as a result of the acquisition of ten branches on March 23, 2007 as well as an increase in debit card usage by the Company’s customer base.

Pursuant to Statement of Financial Accounting Standards No. 159 – The Fair Value Option for Financial Assets and Financial Liabilities (“FASB 159”), the Company elected, effective January 1, 2008, to measure the majority of its preferred stock investments at fair value. As a result of this election, the Company recorded net losses on securities of $2.2 million in the first quarter of 2008. This loss represents the change in fair value of these preferred stocks between the beginning and end of the first quarter of 2008. At March 31, 2008 these preferred stocks had a total fair value of $12.9 million. This preferred stock portfolio included issues of Fannie Mae, Freddie Mac, Merrill Lynch and Goldman Sachs. Changes in the fair value of these securities will now be recorded as a component of non-interest income each quarter.

Gains on the sale of mortgage loans were $1.9 million in the first quarter of 2008 compared to $1.1 million in the year-ago quarter. The gains in the first quarter of 2008 were favorably impacted by $0.8 million related to the election, effective January 1, 2008, of fair value accounting (FASB 159) for mortgage loans held for sale and the adoption of Staff Accounting Bulletin No. 109, “Written Loan Commitments Recorded at Fair Value through Earnings,” on commitments to originate mortgage loans. Mortgage loan sales totaled $84.4 million in the first quarter of 2008 compared to $69.2 million in the first quarter of 2007. Mortgage loans originated totaled $118.2 million in the first quarter of 2008 compared to $116.8 million in the comparable quarter of 2007. The growth in mortgage loan originations is primarily due to a decline in mortgage loan interest rates leading to an increase in refinancing activity. However, this growth was substantially offset by a decline in purchase money mortgage activity due to lower home sales volumes. Loans held for sale were $33.1 million at March 31, 2008, compared to $34.0 million at December 31, 2007.

Mortgage loan servicing resulted in a loss of $0.3 million in the first quarter of 2008 versus income of $0.5 million in the year-ago period. This decline is primarily due to a $0.7 million impairment charge recorded on capitalized mortgage loan servicing rights in the first quarter of 2008 (compared to a $0.1 million impairment charge in the first quarter of 2007) as well as a $0.2 million increase in the amortization of this asset due to a rise in mortgage loan prepayment activity. At March 31, 2008, the Company was servicing approximately $1.64 billion in mortgage loans for others on which servicing rights have been capitalized.

Other non-interest income includes revenue of $0.37 million from the Company’s redemption of 8,551 shares of Visa, Inc. Class B Common Stock as part of the Visa IPO. The Company continues to hold 13,566 shares of Visa, Inc. Class B Common Stock at March 31, 2008.

Non-interest expense totaled $30.3 million in the first quarter of 2008 compared to $28.0 million in the year-ago period. Several categories of operating costs (such as occupancy, data processing and communications) increased in 2008 primarily related to the acquisition of ten branches on March 23, 2007. FDIC deposit insurance expense increased by $0.7 million in the first quarter of 2008 compared to the year-ago period reflecting higher rates and the full utilization of the Company’s assessment credits in 2007. Loan and collection expenses also rose in the first quarter of 2008 primarily due to the elevated level of non-performing loans. The first quarter of 2008 included a reversal of the $0.15 million expense previously recorded for the Company’s allocable portion of the Visa litigation settlement because of the aforementioned Visa IPO. The first quarter of 2007 included a $0.3 million goodwill impairment charge and $0.4 million of non-recurring expenses associated with the conversion of the ten branches that were acquired.

Asset Quality

The increase in non-performing loans since year-end 2007 is due principally to an increase in non-performing commercial 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 2008. These delinquencies largely reflect cash flow difficulties encountered by many real estate developers in Michigan as they confront a significant decline in sales of real estate. The elevated level of non-performing 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 $12.6 million at March 31, 2008, compared to $9.7 million at December 31, 2007.

The provision for loan losses was $11.3 million and $8.1 million in the first quarters of 2008 and 2007, 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 $6.8 million (1.07% annualized of average loans) in the first quarter of 2008, compared to $4.0 million (0.65% annualized of average loans) in the first quarter of 2007. The first quarter 2008 loan net charge-offs were divided among the following categories: commercial loans, $3.5 million; consumer, $1.1 million (including $0.1 million of deposit overdrafts); mortgage, $2.1 million; and finance receivables, $0.1 million. The commercial loan and mortgage loan net charge-offs in the first quarter of 2008 primarily reflect write-downs to expected liquidation values for real estate or other collateral securing the loans. At March 31, 2008, the allowance for loan losses totaled $49.9 million, or 1.97% of portfolio loans, compared to $45.3 million or 1.78% of portfolio loans at December 31, 2007.

Commenting on asset quality, CEO Magee stated: “As I indicated in our fourth quarter 2007 earnings release, we remain concerned about ongoing challenges within our commercial (primarily real estate development-related credits) and mortgage loan 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. The rise in non-performing commercial loans during the first three months of 2008 was disappointing, however, nearly all of these loans were already in watch credit and therefore had been identified as a potential problem.”

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

Loan Type	3/31/2008			12/31/2007			3/31/2007
	(Dollars in Millions)
Commercial		$72.1			$49.0			$27.5
Consumer		3.4			3.4			2.8
Mortgage		24.8			23.1			15.7
Finance receivables
(excludes discontinued
operations)		1.9			1.7			2.1
Total		$102.2			$77.2			$48.1
Ratio of non-performing
loans to total portfolio
loans		4.03	%		3.03	%		1.93	%
Ratio of the allowance for
loan losses to
non-performing loans		48.84	%		58.63	%		62.94	%

Balance Sheet

Total assets were $3.25 billion at March 31, 2008, compared to $3.28 billion at December 31, 2007. Loans, excluding loans held for sale, were $2.54 billion at March 31, 2008 compared to $2.55 billion at December 31, 2007. Deposits totaled $2.25 billion at March 31, 2008, a decrease of $253.3 million from December 31, 2007. The decrease in deposits reflects a $268.5 million decline in brokered certificates of deposits (“brokered CD’s”). During the first quarter of 2008 maturing or callable brokered CD’s were replaced with borrowings from the Federal Home Loan Bank and Federal Reserve Bank due to significantly lower comparative costs.

Stockholders’ equity totaled $238.5 million at March 31, 2008, or 7.35% of total assets, representing a net book value per share of $10.36. The Company remains “well capitalized” for regulatory purposes.

Magee concluded, “Despite the macroeconomic headwinds facing the state of Michigan, Independent Bank remains committed to the people and communities of our state, as illustrated by the 107 full service branches we operate in convenient locations throughout the region.”

“Every credit cycle provides its fair share of challenges and in the current cycle, we have taken the opportunity to enhance our portfolio and risk management functions within the bank, where appropriate. While not yet evident in our asset quality measures, we are confident that our current risk management practices and proactive oversight of problem loans will lead to lower credit costs and a decline in non-performing assets 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 first quarter 2008 results in a conference call for investors and analysts beginning at 10:00 a.m. ET on Friday, April 25, 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 # 417873). The replay will be available through May 2, 2008.

In addition, a Power Point presentation associated with the first quarter 2008 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 Friday, April 25, 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.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition

	March 31, 2008			December 31, 2007
	(unaudited)
Assets	(in thousands)
Cash and due from banks	$	58,210		$	79,289
Securities available for sale		358,333			364,194
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		26,352			21,839
Loans held for sale		33,056			33,960
Loans
Commercial		1,060,290			1,066,276
Mortgage		866,229			873,945
Installment		363,743			368,478
Finance receivables		248,085			238,197
Total Loans		2,538,347			2,546,896
Allowance for loan losses		(49,911	)		(45,294	)
Net Loans		2,488,436			2,501,602
Property and equipment, net		73,343			73,558
Bank owned life insurance		43,413			42,934
Goodwill		66,754			66,754
Other intangibles		14,469			15,262
Capitalized mortgage loan servicing rights		15,297			15,780
Accrued income and other assets		69,748			60,910
Total Assets	$	3,247,411		$	3,276,082
Liabilities and Shareholders' Equity
Deposits
Non-interest bearing	$	291,000		$	294,332
Savings and NOW		1,005,040			987,299
Retail time		708,156			707,419
Brokered time		247,603			516,077
Total Deposits		2,251,799			2,505,127
Federal funds purchased		45,831			54,452
Other borrowings		543,180			302,539
Subordinated debentures		92,888			92,888
Financed premiums payable		42,145			44,911
Liabilities of discontinued operations					34
Accrued expenses and other liabilities		33,028			35,629
Total Liabilities		3,008,871			3,035,580
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: 23,015,040 shares at March 31, 2008
and 22,647,511 shares at December 31, 2007		22,765			22,601
Capital surplus		196,675			195,302
Retained earnings		19,062			22,770
Accumulated other comprehensive income (loss)		38			(171	)
Total Shareholders' Equity		238,540			240,502
Total Liabilities and Shareholders' Equity	$	3,247,411		$	3,276,082

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations

	Three Months Ended
	March 31, 2008			December 31, 2007			March 31, 2007
	(unaudited)
	(in thousands)
Interest Income
Interest and fees on loans	$	48,126		$	50,891		$	49,953
Securities available for sale
Taxable		2,304			2,258			2,477
Tax-exempt		2,247			2,297			2,600
Other investments		357			328			314
Total Interest Income		53,034			55,774			55,344
Interest Expense
Deposits		16,212			20,684			22,408
Other borrowings		6,437			5,022			3,304
Total Interest Expense		22,649			25,706			25,712
Net Interest Income		30,385			30,068			29,632
Provision for loan losses		11,316			9,393			8,139
Net Interest Income After Provision for Loan Losses		19,069			20,675			21,493
Non-interest Income
Service charges on deposit accounts		5,647			6,418			4,888
Net gains (losses) on assets
Mortgage loans		1,867			904			1,081
Securities		(2,163	)		(964	)		79
VISA check card interchange income		1,371			1,376			950
Mortgage loan servicing		(323	)		364			527
Title insurance fees		417			344			414
Other income		2,676			2,731			2,731
Total Non-interest Income		9,492			11,173			10,670
Non-interest Expense
Compensation and employee benefits		14,184			13,438			13,968
Occupancy, net		3,114			2,754			2,614
Loan and collection		1,925			1,437			1,006
Furniture, fixtures and equipment		1,817			1,944			1,900
Data processing		1,725			1,854			1,438
Advertising		1,100			1,549			1,152
Branch acquisition and conversion costs								422
Goodwill impairment								343
Other expenses		6,386			6,609			5,123
Total Non-interest Expense		30,251			29,585			27,966
Income (Loss) From Continuing Operations Before Income Tax		(1,690	)		2,263			4,197
Income tax expense (benefit)		(2,031	)		(15	)		305
Income From Continuing Operations		341			2,278			3,892
Discontinued operations, net of tax					154			351
Net Income	$	341		$	2,432		$	4,243

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data

	Three Months Ended
	March 31, 2008			December 31, 2007			March 31, 2007
	(unaudited)
Per Share Data (A)
Income From Continuing
Operations
Basic	$	.02		$	.10		$	.17
Diluted		.01			.10			.17
Net Income
Basic	$	.02		$	.11		$	.19
Diluted		.01			.11			.18
Cash dividends declared		.11			.21			.21
Selected Ratios (annualized)
As a Percent of Average Interest-Earning Assets
Tax equivalent interest income		7.37	%		7.65	%		7.74	%
Interest expense		3.07			3.43			3.51
Tax equivalent net interest income		4.30			4.22			4.23
Income From Continuing Operations
Average equity		0.56	%		3.68	%		6.08	%
Average assets		0.04			0.28			0.48
Net Income to
Average equity		0.56	%		3.93	%		6.63	%
Average assets		0.04			0.30			0.53
Average Shares (A)
Basic		22,638,898			22,600,461			22,828,615
Diluted		22,768,219			22,703,111			23,143,875

(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.

EX-99

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data

Non-performing assets

	March 31, 2008			December 31, 2007
	(dollars in thousands)
Non-accrual loans	$	95,096		$	72,682
Loans 90 days or more past due and
still accruing interest		6,921			4,394
Restructured loans		169			173
Total non-performing loans		102,186			77,249
Other real estate		12,589			9,723
Total non-performing assets	$	114,775		$	86,972
As a percent of Portfolio Loans
Non-performing loans		4.03	%		3.03	%
Allowance for loan losses		1.97			1.78
Non-performing assets to total assets		3.53			2.65
Allowance for loan losses as a percent of
non-performing loans		49			59

Allowance for loan losses

	Three months ended March 31,
	2008						2007
	Loans			Unfunded Commitments			Loans			Unfunded Commitments
	(in thousands)
Balance at beginning of period	$	45,294		$	1,936		$	26,879		$	1,881
Additions (deduction)
Provision charged to operating expense		11,383			(67	)		7,989			150
Recoveries credited to allowance		569						555
Loans charged against the allowance		(7,335	)					(4,515	)
Balance at end of period	$	49,911		$	1,869		$	30,908		$	2,031
Net loans charged against the allowance to
average Portfolio Loans (annualized)		1.07	%					0.65	%

Alternative Sources of Funds

	March 31, 2008							December 31, 2007
	Amount		Average Maturity		Rate			Amount		Average Maturity		Rate
	(dollars in thousands)
Brokered CDs(1,2)	$	247,603		2.1 years		4.60	%	$	516,077		1.9 years		4.72	%
Fixed rate FHLB advances(1)		351,754		1.7 years		3.80			240,509		1.3 years		4.81
Variable rate FHLB advances(1)									20,000		.3 years		4.35
Securities sold under agreements to
Repurchase(1)		35,000		2.7 years		4.42			35,000		2.9 years		4.42
FRB - Discount borrowing		150,000		.1 years		2.68
Federal funds purchased		45,831		1 day		2.50			54,452		1 day		4.00
Total	$	830,188		1.5 years		3.79	%	$	866,038		1.6 years		4.68	%

   (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.

Capitalization

	March 31, 2008			December 31, 2007
	(dollars in thousands)
Unsecured debt	$	2,500		$	3,000
Subordinated debentures		92,888			92,888
Amount not qualifying as regulatory capital		(2,788	)		(2,788	)
Amount qualifying as regulatory capital		90,100			90,100
Shareholders' Equity
Preferred stock, no par value
Common stock, par value $1.00 per share		22,765			22,601
Capital surplus		196,675			195,302
Retained earnings		19,062			22,770
Accumulated other comprehensive income (loss)		38			(171	)
Total shareholders' equity		238,540			240,502
Total capitalization	$	331,140		$	333,602

Non-Interest Income

	Three months ended
	March 31, 2008			December 31, 2007			March 31, 2007
	(in thousands)
Service charges on deposit accounts	$	5,647		$	6,418		$	4,888
Net gains (losses) on assets
Mortgage loans		1,867			904			1,081
Securities		(2,163	)		(964	)		79
VISA check card interchange income		1,371			1,376			950
Mortgage loan servicing		(323	)		364			527
Mutual fund and annuity commissions		424			609			479
Bank owned life insurance		478			462			449
Title insurance fees		417			344			414
Manufactured home loan origination fees
and commissions								114
Other		1,774			1,660			1,689
Total non-interest income	$	9,492		$	11,173		$	10,670

Mortgage Loan Activity

	Three months ended
	March 31, 2008			December 31, 2007			March 31, 2007
	(in thousands)
Mortgage loans originated	$	118,242		$	147,220		$	116,815
Mortgage loans sold		84,449			64,547			69,212
Mortgage loans sold with servicing
rights released		7,882			9,379			11,679
Net gains on the sale of Mortgage loans		1,867			904			1,081
Net gains as a percent of Mortgage
loans sold ("Loan Sale Margin")		2.21	%		1.40	%		1.56	%
SFAS #133/159 adjustments included in the Loan
Sale Margin		0.97			(0.18	)		(0.04	)

Capitalized Mortgage Loan Servicing Rights

	Three months ended March 31,
	2008			2007
	(in thousands)
Balance at beginning of period	$	15,780		$	14,782
Originated servicing rights capitalized		878			686
Amortization		(636	)		(407	)
(Increase)/decrease in impairment reserve		(725	)		(100	)
Balance at end of period	$	15,297		$	14,961
Impairment reserve at end of period	$	1,044		$	168

Non-Interest Expense

	Three months ended
	March 31, 2008		December 31, 2007		March 31, 2007
	(in thousands)
Salaries	$	10,156	$	9,825	$	10,001
Performance-based compensation and benefits		1,304		1,218		1,321
Other benefits		2,724		2,395		2,646
Compensation and employee benefits		14,184		13,438		13,968
Occupancy, net		3,114		2,754		2,614
Loan and collection		1,925		1,437		1,006
Furniture, fixtures and equipment		1,817		1,944		1,900
Data processing		1,725		1,854		1,438
Advertising		1,100		1,549		1,152
Credit card and bank service fees		1,046		1,037		967
Communications		1,015		1,003		830
Deposit insurance		833		268		87
Amortization of intangible assets		793		934		570
Supplies		543		633		607
Legal and professional		418		511		506
Branch acquisition and conversion costs						422
Goodwill impairment						343
Other		1,738		2,223		1,556
Total non-interest expense	$	30,251	$	29,585	$	27,966

Average Balances and Tax Equivalent Rates

	Three Months Ended March 31,
	2008							2007
	Average Balance		Interest		Rate			Average Interest		Interest		Rate
Assets	(dollars in thousands)
Taxable loans (1)	$	2,564,643	$	48,013		7.52	%	$	2,509,746	$	49,849		8.02	%
Tax-exempt loans (1,2)		9,628		174		7.27			9,513		160		6.82
Taxable securities		162,170		2,304		5.71			185,139		2,477		5.43
Tax-exempt securities (2)		204,890		3,586		7.04			238,654		4,121		7.00
Other investments		24,522		357		5.86			25,563		314		4.98
Interest Earning Assets -
Continuing Operations		2,965,853		54,434		7.37			2,968,615		56,921		7.74
Cash and due from banks		52,459							53,228
Taxable loans - discontinued operations									33,084
Other assets, net		225,950							205,532
Total Assets	$	3,244,262						$	3,260,459
Liabilities
Savings and NOW	$	998,429		3,565		1.44		$	903,426		4,249		1.91
Time deposits		1,099,345		12,647		4.63			1,506,171		18,159		4.89
Long-term debt		994		12		4.86			2,994		34		4.61
Other borrowings		529,439		6,425		4.88			199,667		3,270		6.64
Interest Bearing Liabilities-
Continuing Operations		2,628,207		22,649		3.47			2,612,258		25,712		3.99
Demand deposits		289,814							282,172
Time deposits - discontinued operations									24,732
Other liabilities		83,426							81,636
Shareholders' equity		242,815							259,661
Total liabilities and shareholders' equity	$	3,244,262						$	3,260,459
Tax Equivalent Net Interest Income			$	31,785						$	31,209
Tax Equivalent Net Interest Income
as a Percent of Earning Assets						4.30	%						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%

Commercial Loan Portfolio Analysis as of March 31, 2008

			Total Commercial Loans Watch Credits						Percent of
									Loan
Loan Category	All Loans		Performing		Non- performing		Total		Category in Watch Credit
	(dollars in thousands)
Land	$	32,332	$	10,494	$	11,183	$	21,677		67.0	%
Land Development		48,587		9,771		20,858		30,629		63.0	%
Construction		95,015		22,577		13,863		36,440		38.4	%
Income Producing		340,579		37,805		12,229		50,034		14.7	%
Owner Occupied		339,147		42,844		10,248		53,092		15.7	%
Total Commercial Real Estate Loans (1)	$	855,660	$	123,491	$	68,381	$	191,872		22.4	%
Other Commercial Loans(1)	$	195,601	$	22,723	$	3,344	$	26,067		13.3	%
Total non-performing commercial loans					$	71,725

	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	$	20,536	$	1,211	$	15,449	$	16,660		81.1	%
Land Development		18,725				13,038		13,038		69.6	%
Construction		25,751		5,673		4,570		10,243		39.8	%
Income Producing		109,773		13,755		6,358		20,113		18.3	%
Owner Occupied		93,502		8,004		6,920		14,924		16.0	%
Total Commercial Real Estate Loans	$	268,287	$	28,643	$	46,335	$	74,978		27.9	%
Other Commercial Loans	$	61,226	$	12,508	$	1,077	$	13,585		22.2	%
Total non-performing commercial loans in
Southeastern Michigan					$	47,412

(1) The total of these two categories is different than the March 31, 2008, Consolidated Statement of Financial Condition due primarily to loans in process.

EX-99

Independent Bank Corporation
1st Quarter 2008 Earnings Conference Call — April 25, 2008

Overview of 1st Quarter 2008 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

	1Q08		4Q07		1Q07
Income from continuing
operations (millions)		$0.3		$2.3		$3.9
EPS - continuing operations		$0.01		$0.10		$0.17
ROA - continuing operations		0.04%		0.28%		0.48%
ROE - continuing operations		0.56%		3.68%		6.08%
Total assets (billions) at
period end		$3.25		$3.28		$3.36
Stockholders' equity
(millions) at period end		$238.5		$240.5		$251.8
Common shares
outstanding (millions)
at period end		23.02		22.65		22.58

4

1Q:08 — 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 + resolution of non-performing assets

• Operational Achievements

– Maintained profitability despite elevated credit costs

– Continued growth in several categories of non-interest income

• 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 ?

– Household wealth declines in 4Q07 - first time since 2002

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

– A record 6% of borrowers are behind on their mortgage and for the first time ever, nearly nine million households have mortgage debt greater than the value of their home

– Record-level crude oil and skyrocketing food prices continue to impact consumer balance sheets

• 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

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

7

1st Quarter 2008 Financial Review
Robert N. Shuster, Executive Vice President and CFO

8

1st Quarter 2008 Recap

• Positive Factors

– Net interest income and the net interest margin were up on both a year-over-year and sequential quarterly basis.

– Certain 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.

– Successful shift out of higher cost brokered CD's into FHLB and FRB borrowings.

• Challenges

– Credit costs

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

– Weak Michigan economy

9

1st Quarter 2008 Recap - Continued

• Several moving parts

– Fair value/FAS 159 election on preferred stocks - $(0.06) per share

– MSR impairment charge - $(0.02) per share

– Reversal of accrued interest on loans placed on non-accrual - $(0.02) per share

– Severance costs - $(0.01) per share

– Visa, Inc. IPO - $0.01 per share

– Fair value/SAB 109 adoption on loans held for sale and commitments to originate mortgage loans - - $0.02 per share

– Federal income tax adjustment - $0.07 per share

– Elevated loan loss provision

– Increase in FDIC insurance expense

10

FAS 159 Fair Value Elections/SAB 109

• Elected FV accounting for a portfolio of preferred stocks and loans held for sale

– Although FV accounting can add earnings volatility, now we get two way accounting as compared to one-way OTI.

– OTI very challenging to assess on “equity” type securities.

– $1.5 million re-class from AOCI to retained earnings 1/1/08.

– Fannie Mae - Par value $5.4 million / FV $4.1 million at 3/31/08

– Freddie Mac - Par value $3.2 million / FV $1.8 million at 3/31/08

– Goldman Sachs - Par value $5.0 million / FV $3.6 million at 3/31/08

– Merrill Lynch - Par value $6.0 million / FV at $3.4 million 3/31/08

– Loans held for sale were previously accounted for at lower of cost or market, FV accounting (FAS 159) now aligns with accounting for commitments to sell such loans.

– SAB 109 adopted 1/1/08, results in recording fair value of commitments to originate mortgage loans.

11

Tax Equivalent Net Interest Margin

12

TE Net Interest Income

13

Shift from Brokered CD's to Lower Cost Funding

14

Non-Interest Income

Category ($ in 000's)	1Q08			4Q07			1Q07
Total non-interest income		$9,492			$11,173			$10,670
Service charges - deposits		5,647			6,418			4,888
VISA check card income		1,371			1,376			950
Gain (loss) on securities		(2,163	)		(964	)		79
Net gains - mortgage loan sales		1,867			904			1,081
Mortgage loan servicing fees		(323	)		364			527
Mutual fund and annuity commissions		424			609			479

15

Non-Interest Expense

Category ($ in 000's)	1Q08		4Q07		1Q07
Total non-interest expense		$30,251		$29,585		$27,966
Compensation & employee benefits		14,184		13,438		13,968
Occupancy		3,114		2,754		2,614
Advertising		1,100		1,549		1,152
Loan and collection		1,925		1,437		1,006
FDIC insurance expense		833		268		87

16

Provision for Loan Losses

17

Asset Quality Measures — Non-Performing Loans

Non-performing loans by loan type ($ in 000's)	3/31/08			12/31/07			3/31/07
Commercial	$	72,068		$	48,945		$	27,537
Mortgage		24,824			23,147			15,691
Consumer		3,427			3,435			2,747
Finance receivables (a)		1,867			1,722			2,096
Total	$	102,186		$	77,249		$	48,071
As a % of total loans		4.03	%		3.03	%		1.93	%

(a) Excludes discontinued operations.

18

Allowance for Loan Losses

Allocation ($ in 000's)	3/31/08			12/31/07			3/31/07
Specific loan allocations	$	16,166		$	10,713		$	4,992
Adversely rated loans		9,753			10,804			5,150
Historical losses		14,512			14,668			12,943
Other factors/subjective		9,480			9,109			7,823
Total	$	49,911		$	45,294		$	30,908
As a % of portfolio loans		1.97	%		1.78	%		1.24	%

19

Asset Quality Measures — Net Loan Charge-Offs

Net loan charge-offs   by loan type ($ in 000's)	1Q08			4Q07			3Q07			2Q07
Commercial	$	3,498		$	2,637		$	3,893		$	5,478
Mortgage		2,124			2,739			1,819			945
Consumer		982			964			560			557
Overdrafts		149			333			362			360
Finance receivables*		13			46			14			24
Total	$	6,766		$	6,719		$	6,648		$	7,364
As a % of average loans		1.07	%		1.05	%		1.05	%		1.18	%

          *Excludes discontinued operations.

20

Balance Sheet Overview

21

IBCP — Cash Dividend

• April 2008 IBCP cash dividend reduced by 47.6% to $0.11 per share.

• 1Q '08 EPS fell short of the reduced cash dividend due primarily to continued elevated credit costs.

• Parent company liquidity strong with $12.5 million in cash at 3/31/08.

• Parent company liquidity will be boosted from $1.8 million cash dividend to be paid by bank up to parent on 4/29/08.

• Our bank subsidiary remains “well capitalized.” Further, because we anticipate no near-term asset growth, the down streaming of additional capital is not expected to be necessary.

• Parent company tangible capital ratio was 4.97% at 3/31/08 (bank tangible capital ratio was 7.46% at 3/31/08).

• We will evaluate and decide on the 7/31/08 dividend in late June 2008.

22

1st Quarter 2008 Credit Review
Stefanie M. Kimball, Executive Vice President and Chief Lending Officer

23

1st Quarter 2008 Commercial Lending Recap

• Positive Factors

– Inflow of watch credits slowed and levels of internal watch and substandard loans declined.

– Strategic shift in target loan types coupled with tighter underwriting criteria provides more diversified and higher quality new loans.

– New risk based pricing model rolled out, enabling improved risk/return.

• Challenges

– Delinquency and non-accruals increased.

– Elevated charge-offs and collection expenses.

– Considerable attention required for portfolio management and workout activities.

24

Total Commercial Loan Balances Declined Slightly in First Quarter of 2008

25

Land/Land Development CRE Segments Continue to Decline and Represent a Relatively Small Portion of the Overall Portfolio

26

Total Watch Credits Continued to Rise, but at a Slower Rate as the Internal Watch and Substandard Categories Declined in the 1st Quarter 2008

27

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

28

Commercial 30+ Delinquency Decreased in the 1st Quarter of 2008

29

Commercial Non-Accruals Continued to Rise
in the 1st Quarter of 2008

30

Commercial Loan Net Charge-Offs Increased in the 1st Quarter of 2008

31

Economic Headwinds Continue to Challenge Clients

• Michigan's prolonged weak 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 may take quite some time to be absorbed in many communities given negative population and job growth trends.

• 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.

32

Managing Through the Michigan Credit Storm Remains Our Top Priority

• Implementation in 2007 of credit quality best practices position Independent Bank to weather the credit storm.

• Significant rise in non-performing commercial loans results from the heavy concentration in CRE with a lengthy workout process. Our special assets team is fully engaged managing these loans with the assistance of select law firms. These loans are reserved based upon updated appraisals reflecting the distressed real estate values.

• Quarterly Credit Quality Review watch process is firmly in place to manage the internal watch credits. Reviewing credits earlier in the workout cycle should improve future collection results.

• Credit officers work closely with commercial lenders to monitor the financial condition of clients.

33

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.

34

1st Quarter 2008 Retail Lending Recap

• Positive Factors

– Tighter underwriting criteria implemented in 2007 provides higher quality loans.

– Net charge-off levels declined in the 1st Quarter from 4th Quarter 2007 levels.

• Challenges

– Delinquency and non-accruals increased.

– Considerable attention required for portfolio management and workout activities.

35

Total Retail Loan Balances Decreased Slightly in 1st Quarter of 2008

36

Retail 30-89 Day Delinquency Increased in the 1st Quarter

37

Retail Non-Performing Assets Continued to Rise
in the 1st Quarter

Includes Non-Performing Loans, ORE and Repossessed Assets

38

Total Retail Charge-Offs for 1st Quarter of 2008 Declined from Levels Experienced in 4th Quarter 2007

39

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

40

Thank you for participating in the conference call.

41