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: October 26, 2009

INDEPENDENT BANK CORPORATION

(Exact name of registrant as specified in its charter)

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

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

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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

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

o 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 October 26, 2009, Independent Bank Corporation issued a press release announcing its financial results for the quarter ended September 30, 2009. 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 third quarter 2009 conference call to be conducted beginning at 10:00 a.m. ET on Tuesday, October 27, 2009. 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 October 26, 2009.
99.2	Supplemental data to the Registrant’s press release dated October 26, 2009.
99.3	Slide presentation dated October 26, 2009.

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.

	INDEPENDENT BANK CORPORATION (Registrant)
Date October 26, 2009	By	/s/ Robert N. Shuster
		Robert N. Shuster, Principal Financial Officer

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EX-99.1

Exhibit 99.1

News Release

Independent Bank Corporation

230 West Main Street

Ionia, MI 48846

616.527.9450

For Release: Immediately

Contact:         Robert Shuster, Chief Financial Officer, 616.522.1765

INDEPENDENT BANK CORPORATION REPORTS
2009 THIRD QUARTER RESULTS

• 2009 third quarter net loss applicable to common stock of $17.8 million ($0.74 per share), with results impacted by:

• Provision for loan losses of $22.3 million

• $8.7 million charge to accrue for estimated losses from vehicle service contract counterparties related to the Company’s payment plan business

• Loan and collection costs of $3.6 million

• Loss on other real estate and repossessed assets of $2.0 million

• Pre-tax, pre-provision core operating earnings remain strong and improved in 2009 over 2008

• Net interest margin of 5.15%, which is among the best in the banking industry

• Both non-performing loans and non-performing assets declined sequentially for the second consecutive quarter

• Capital raising initiatives announced, including deferral of interest and dividend payments on trust preferred securities and preferred stock, and suspension of dividend payments on common stock, all effective as of Nov. 1, 2009

• Company remains “well capitalized” for regulatory purposes

IONIA, Mich., Oct. 26, 2009 — Independent Bank Corporation (NASDAQ: IBCP) reported a third quarter 2009 net loss applicable to common stock of $17.8 million, or $0.74 per share, versus a net loss of $5.3 million, or $0.23 per share, in the prior-year period. The net loss applicable to common stock for the nine months ended Sept. 30, 2009 was $43.7 million, or $1.84 per share, compared to a net loss of $1.6 million, or $0.07 per share, in the prior-year nine-month period.

Michael M. Magee, President and CEO of Independent Bank Corporation, commented: “The continued difficult Michigan economic environment had a significant impact on our financial results, leading to our reported loss for the quarter. However, we remain encouraged by our pre-tax, pre-provision core operating earnings, which rose more than 7% when compared with the year-ago quarter and remains comparable to our results last quarter. Maintaining a high performance level on core earnings and a strong net interest margin while continuing to make gains in productivity and cost control should provide us with the base we need for improved performance as we emerge from the current economic downturn.”

Operating Results

The Company’s tax equivalent net interest income totaled $35.8 million during the third quarter of 2009, an increase of $0.8 million, or 2.2% from the year-ago period, and a decrease of $0.4 million, or 1.0% from the second quarter of 2009. The

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Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 5.15% during the third quarter of 2009, compared to 4.76% in the year-ago period, and 5.21% in the second quarter of 2009. Average interest-earning assets declined to $2.76 billion in the third quarter of 2009, compared to $2.93 billion in the year-ago quarter and $2.78 billion in the second quarter of 2009. This year-over-year decline in average interest-earning assets primarily reflects a decrease in both investment securities and loans.

Service charges on deposits and VISA check card interchange income totaled $6.4 million and $1.5 million, respectively, in the third quarter of 2009, remaining essentially unchanged from the comparable period in 2008.

Securities net gains totaled $0.1 million in the third quarter of 2009, versus net losses of $6.7 million in the comparable period in 2008. The third quarter 2009 securities net gains were primarily due to the sale of municipal securities, while third quarter 2008 securities net losses included a decline in the fair value of trading securities of $7.7 million and other than temporary impairment charges of $0.1 million on securities available for sale. The decline in the fair value of trading securities related principally to the Company’s holdings of Fannie Mae and Freddie Mac preferred stock. Partially offsetting these losses, the Company generated $1.1 million of gains in 2008 related to the sale of $48.4 million of municipal securities.

Gains on the sale of mortgage loans were $2.3 million in the third quarter of 2009, compared to $1.0 million in the year-ago quarter. The growth in gains relates primarily to an increase in loan sales and commitments to originate mortgage loans that are held for sale. This was principally due to a rise in refinancing activity resulting from generally lower mortgage loan interest rates in 2009. The increased refinancing volumes also led to a 69.7% increase in title insurance fees, to $0.5 million, on a year-over-year basis.

Mortgage loan servicing generated a loss of $0.5 million in the third quarter of 2009, versus income of $0.3 million in the year-ago period. This change was due to an increase in impairment charges ($0.8 million in the third quarter of 2009 versus $0.3 million in the year-ago quarter) as well as a $0.4 million increase in the amortization of capitalized mortgage loan servicing rights. The impairment charges primarily reflect lower mortgage loan interest rates at the end of the third quarter of 2009, resulting in higher estimated future prepayment rates. Capitalized mortgage loan servicing rights totaled $14.3 million at Sept. 30, 2009 compared to $12.0 million at Dec. 31, 2008. The Company services approximately $1.72 billion in mortgage loans for others on which servicing rights have been capitalized.

Non-interest expenses totaled $43.6 million in the third quarter of 2009, compared to $30.7 million in the year-ago period. The rise in non-interest expenses was primarily due to $8.7 million in estimated losses related to vehicle service contract counterparties at the Company’s Mepco Finance Corporation (“Mepco”) business unit and increases in loan and collection expenses (up $1.6 million), losses on other real estate and repossessed assets (up $1.5 million) and FDIC insurance (up $1.5 million). The increases in loan and collection costs and losses on other real estate and repossessed assets resulted primarily from the elevated level of non-performing assets and lower residential housing prices.

Third quarter 2009 non-interest expenses include an $8.7 million charge related to Mepco’s business of servicing payment plans for vehicle service contracts. These payment plans (which are classified as finance receivables in the Company’s Consolidated Statements of Financial Condition) permit a consumer to purchase a vehicle service contract or product warranty by making installment payments, generally for a term of 12 to 24 months, to the sellers of those contracts or product warranties (one of the “counterparties”). Mepco purchases these payment plans from these counterparties on a recourse basis. When consumers stop making payments or exercise their right to voluntarily cancel the contract, the remaining unpaid balance of the payment plan is recouped by Mepco from the counterparties that sold the vehicle service contract or product warranty and provided the coverage. Payment defaults and voluntary cancellations have increased significantly during 2009, reflecting both weak economic conditions and adverse publicity impacting the vehicle service contract industry. When counterparties do not honor their contractual obligations to Mepco to repay advanced funds, we recognize estimated losses. Mepco vigorously pursues collection (including commencing legal action) of funds due to it under its various contracts with counterparties. During September 2009, we identified a counterparty that is experiencing particularly severe financial difficulties and have accrued for estimated potential losses related to that relationship.

Compensation and employee benefit costs declined by $0.2 million, or 1.4%, in the third quarter of 2009 compared to the year-ago period. This decline was due primarily to the elimination of any accruals for bonuses and the elimination of any contribution to the employee stock ownership plan. These compensation cost reductions were partially offset by additional staff added during 2009 to manage non-performing assets and loan collections.

Pre-Tax, Pre-Provision Core Operating Earnings

The Company is presenting pre-tax, pre-provision core operating earnings in this release for purposes of additional analysis of operating results. Pre-tax, pre-provision core operating earnings, as defined by management, represents the Company’s income (loss) excluding: income tax expense (benefit), the provision for loan losses, securities gains or losses, and any impairment

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charges (including goodwill, losses on other real estate or repossessed assets, and fair-value adjustments) or elevated loan and collection costs caused by this economic cycle.

The following table reconciles pre-tax, pre-provision core operating earnings to consolidated net income (loss) presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Pre-tax, pre-provision core operating earnings is not a measurement of our financial performance under GAAP and should not be considered as an alternative to net income (loss) under GAAP. Pre-tax, pre-provision core operating earnings has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. However, the Company believes presenting pre-tax, pre-provision core operating earnings provides investors with the ability to gain a further understanding of its underlying operating trends separate from the direct effects of any impairment charges, credit issues, fair value adjustments, securities gains or losses, and challenges inherent in the real estate downturn and other economic cycle issues, and displays a consistent core operating earnings trend before the impact of these challenges. The credit quality section of this release already isolates the challenges and issues related to the credit quality of the Company’s loan portfolio and the impact on its results as reflected in the provision for loan losses.

Pre-Tax, Pre-Provision Core Operating Earnings
				Quarter Ended
	9/30/09			6/30/09			9/30/08
				(in thousands)
Net income (loss)	$	(16,714	)	$	(5,161	)	$	(5,326	)
Income tax expense (benefit)		(1,088	)		(959	)		(5,723	)
Provision for loan losses		22,285			25,593			19,788
Estimated losses vehicle service contract counterparty risk		8,713			2,215			—
Securities (gains) losses		(121	)		(4,230	)		6,711
Impairment charge (recovery) on mortgage servicing rights		809			(2,965	)		348
Losses on other real estate and repossessed assets		1,958			1,939			425
Elevated loan and collection costs (1)		2,378			1,977			758
Pre-Tax, Pre-Provision Core Operating Earnings	$	18,220		$	18,409		$	16,981

⁽¹⁾ Represents the excess amount over a “normalized” level of $1.25 million quarterly.

TARP Capital Purchase Program

On Dec. 12, 2008, the Company issued 72,000 shares of its preferred stock and 3,461,538 warrants to purchase the Company’s common stock (at a strike price of $3.12 per share) to the U.S. Treasury in return for $72.0 million under the Capital Purchase Program (“CPP”). Of the total proceeds, initially $68.4 million was allocated to the preferred stock and $3.6 million was allocated to the warrants (included in capital surplus) based on the relative fair value of each.

In the approximately 290-day period (ending Sept. 30, 2009) since the receipt of the CPP funds, the Company has made $804.4 million of loans. This loan volume includes: $241.7 million of commercial loans (of which $122.5 million were renewals of existing loans), $522.1 million of mortgage loans (of which $262.5 million were refinances of existing loans) and $40.6 million of consumer installment loans (excluding finance receivables). Further, the CPP funds have allowed the Company to continue actively pursuing mortgage loan modifications and work-outs in lieu of foreclosure for those mortgage loan customers experiencing financial difficulty.

Asset Quality

Commenting on asset quality, CEO Magee noted: “We are pleased to see positive progress on asset quality despite the challenges of operating in a very difficult economy. Although our provision for loan losses remained elevated in the third quarter, it is important to note that it declined by nearly 13% from the second quarter, continuing the positive trend we have seen so far in 2009. In addition, our team continues to make strong efforts to manage our loan portfolio, which has resulted in a decline in our 30-to-89 day delinquency rates in our commercial and mortgage loan portfolios at the end of the third quarter. In addition, total non-performing loans and assets both declined at September 30, 2009 when compared to the end of the first and second quarters.”

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

Loan Type	9/30/2009			12/31/2008			9/30/2008
	(Dollars in Millions)
Commercial	$	56.8		$	78.1		$	74.2
Consumer/installment		8.4			4.9			3.9
Mortgage		49.3			38.9			33.9
Finance receivables		3.0			3.4			2.6
Total	$	117.5		$	125.3		$	114.6
Ratio of non-performing loans to total portfolio loans		4.92	%		5.09	%		4.58	%
Ratio of non-performing assets to total assets		5.07	%		4.91	%		4.29	%
Ratio of the allowance for loan losses to non-performing loans		62.75	%		46.22	%		47.01	%

Non-performing loans have declined since year-end 2008 as an increase in non-performing mortgage loans and consumer loans was more than offset by a decline in non-performing commercial loans. The decline in non-performing commercial loans is primarily due to net charge-offs and the payoff or other disposition of non-performing credits during the first nine months of 2009. Non-performing commercial loans largely reflect real estate-secured credit delinquencies caused primarily by cash flow difficulties encountered by real estate developers in Michigan as they confront a significant decline in sales. Since the end of 2006, the land, land development, and construction components of the Company’s commercial loan portfolio have declined by over 60% and now total $95.3 million at Sept. 30, 2009, representing just 3.2% of total assets. The elevated level of non-performing residential mortgage loans is primarily due to a rise in delinquencies and foreclosures reflecting both weak economic conditions and soft residential real estate values in many parts of Michigan. Other real estate and repossessed assets totaled $32.9 million at Sept. 30, 2009, compared to $20.0 million at both Dec. 31, 2008 and Sept. 30, 2008.

The provision for loan losses was $22.3 million and $19.8 million in the third quarters of 2009 and 2008, respectively. The level of the provision for loan losses in each period reflects the Company’s overall 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 $14.0 million (2.27% annualized of average loans) in the third quarter of 2009, compared to $17.4 million (2.69% annualized of average loans) in the third quarter of 2008. The third quarter 2009 loan net charge-offs were divided among the following categories: commercial loans, $7.5 million; consumer loans, $1.6 million (including $0.2 million of deposit overdrafts); and mortgage loans, $4.9 million. The commercial loan and mortgage loan net charge-offs in the third quarter of 2009 primarily reflect write-downs to expected liquidation values for real estate or other collateral securing the loans. At Sept. 30, 2009, the allowance for loan losses totaled $73.7 million, or 3.09% of portfolio loans, compared to $57.9 million, or 2.35% of portfolio loans, at Dec. 31, 2008.

Balance Sheet, Liquidity and Capital

Total assets were $2.96 billion at Sept. 30, 2009, essentially unchanged from Dec. 31, 2008. Loans, excluding loans held for sale, were $2.39 billion at Sept. 30, 2009, compared to $2.46 billion at Dec. 31, 2008. Deposits totaled $2.49 billion at Sept. 30, 2009, an increase of $419.4 million from Dec. 31, 2008. The growth in deposits primarily reflects increases in savings and interest-bearing checking accounts and in brokered certificates of deposit. The Company’s liquidity position remains sound, with approximately $854 million of unused borrowing capacity at Sept. 30, 2009.

Stockholders’ equity totaled $159.9 million at Sept. 30, 2009, or 5.40% of total assets. The Company remains “well capitalized” for regulatory purposes with the following ratios:

										Well
	9/30/2009									Capitalized
Regulatory Capital Ratio	(estimate)			12/31/2008			9/30/2008			Minimum
Tier 1 capital to average assets		6.99	%		8.61	%		7.42	%		5.00	%
Tier 1 capital to risk-weighted assets		9.00	%		11.04	%		9.56	%		6.00	%
Total capital to risk-weighted assets		11.64	%		13.05	%		11.29	%		10.00	%

With regard to the outlook for the remainder 2009, CEO Magee concluded: “While we continue to work through the challenges of the difficult economy in the markets we serve, we are taking steps to solidify our financial position and ensure the long-term future success of Independent Bank. The first of these steps involves the suspension or deferral of the dividends or interest payments on our common stock, preferred stock and trust preferred securities effective November 1, 2009. In addition, we intend to convene a special meeting of shareholders by the end of this year to consider amending our articles of incorporation to

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increase the number of authorized shares of common stock. These actions are expected to provide us with the flexibility we need to enhance our capital position and work through to the ultimate recovery in the Michigan economy.”

Deferral of Interest and Dividend Payments on Trust Preferred Securities and Preferred Stock

The Company announced that effective Nov. 1, 2009, it has elected to defer regularly scheduled quarterly interest payments on its junior subordinated debentures (the “Debentures”) and quarterly dividend payments on its Series A Preferred Stock (the “Preferred Stock”). The Debentures are owned by IBC Capital Finance II, III and IV and Midwest Guaranty Trust I (the “Trusts”) and were funded by the Trusts’ issuance of trust preferred securities (“Debt Securities”). The Preferred Stock was issued to the U.S. Treasury under the TARP CPP. The total estimated annual interest and dividends that would be payable on the Debentures (and the underlying Debt Securities) and the Preferred Stock, if not deferred, is approximately $9.0 million based on current interest rates.

The terms of the Debentures and trust indentures (the “Indentures”) allow for the Company to defer payment of interest on the Debt Securities at any time or from time to time for up to 20 consecutive quarters provided no event of default (as defined in the Indentures) has occurred and is continuing. The Company is not in default with respect to the Indentures, and the deferral of interest does not constitute an event of default under the Indentures. While the Company defers the payment of interest, it will continue to accrue the interest expense owed at the applicable interest rate. Upon the expiration of the deferral, all accrued and unpaid interest is due and payable.

So long as any shares of Preferred Stock remain outstanding, unless all accrued and unpaid dividends for all prior dividend periods have been paid or are contemporaneously declared and paid in full, (a) no dividend whatsoever may be paid or declared on the Company’s common stock or other junior stock, other than a dividend payable solely in common stock and other than certain dividends or distributions of rights in connection with a shareholders’ rights plan; and (b) neither the Company nor its subsidiaries may purchase, redeem or otherwise acquire for consideration any shares of its common stock or other junior stock unless the Company has paid in full all accrued dividends on the Preferred Stock for all prior dividend periods, other than purchases, redemptions or other acquisitions of the Company’s common stock or other junior stock in connection with the administration of its employee benefit plans in the ordinary course of business and consistent with past practice; pursuant to a publicly announced repurchase plan up to the increase in diluted shares outstanding resulting from the grant, vesting or exercise of equity-based compensation; any dividends or distributions of rights or junior stock in connection with any shareholders’ rights plan, redemptions or repurchases of rights pursuant to any shareholders’ rights plan; acquisition of record ownership of common stock or other junior stock or parity stock for the beneficial ownership of any other person who is not the Company or one of its subsidiaries, including as trustee or custodian; and the exchange or conversion of common stock or other junior stock for or into other junior stock or of parity stock for or into other parity stock or junior stock but only to the extent that such acquisition is required pursuant to binding contractual agreements entered into before Dec. 12, 2008 or any subsequent agreement for the accelerated exercise, settlement or exchange thereof for common stock.

During the deferral period on the Debentures and Preferred Stock, the Company may not declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any of its capital stock. Suspension of the common stock dividend will conserve an additional $1.0 million on an annualized basis. The Company will pay its previously announced and declared common stock dividend of one cent per share on Oct. 30, 2009 but all future dividends will be suspended so long as interest and dividend payments on the Debentures and Preferred Stock are being deferred.

Other Capital Raising Initiatives

Like many financial institutions across the United States, the Company has been impacted by deteriorating economic conditions. The Michigan economy, in particular, has been and continues to show stress, including such factors as the highest unemployment rate in the nation and a declining population. As a result, the Company believes that additional capital may be necessary to maintain and strengthen its balance sheet to withstand the effects of ongoing economic stress and uncertainty over the coming months and years. Consequently, the Company is exploring several initiatives to bolster capital and strengthen its balance sheet. The Company’s intention is to develop and have ready multiple capital raising alternatives that will ensure that it continues to exceed the regulatory designation of well-capitalized. The Company has engaged the investment banking firm of Stifel, Nicolaus & Company, Incorporated to assist in this strategic process.

In order to maintain these alternatives, the Company will seek shareholder approval to increase its authorized shares of common stock. Accordingly, the Company plans to file a preliminary proxy statement announcing a special shareholders meeting tentatively scheduled for Dec. 18, 2009 in Ionia, Mich. The Company expects that this proxy statement will include the following proposals: (i) an amendment to its Articles of Incorporation to increase the number of authorized common shares from 60 million to 500 million; and (ii) an underwater stock option exchange program (which will exclude named executive officers and directors).

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Conference Call

Michael M. Magee, President and Chief Executive Officer, Robert N. Shuster, Chief Financial Officer, Stefanie M. Kimball, Chief Lending Officer, and William B. Kessel, Chief Operations Officer, will review third quarter 2009 results in a conference call for investors and analysts beginning at 10:00 a.m. ET on Tuesday, Oct. 27, 2009.

To participate in the live conference call, please dial 1-800-860-2442. The call can also be accessed (listen-only mode) via the “Investor Relations” section of the Company’s Web site at IndependentBank.com. A playback of the call can be accessed by dialing 1-877-344-7529 (Replay Passcode # 434099). The replay will be available through Nov. 4, 2009.

In addition, a Power Point presentation associated with the third quarter 2009 conference call will be available on the Company’s Web site at IndependentBank.com in the “Investor Relations” section under the “Presentations” tab beginning on Monday, Oct. 26, 2009.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $3 billion. Founded as Third 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. 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 Web site at: IndependentBank.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.

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INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition

	September 30,			December 31,
	2009			2008
	(unaudited)
	(in thousands)
Assets
Cash and due from banks	$	182,405		$	57,705
Trading securities		90			1,929
Securities available for sale		184,004			215,412
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		27,855			28,063
Loans held for sale, carried at fair value		23,980			27,603
Loans
Commercial		863,556			976,391
Mortgage		770,297			839,496
Installment		318,185			356,806
Finance receivables		435,191			286,836
Total Loans		2,387,229			2,459,529
Allowance for loan losses		(73,710	)		(57,900	)
Net Loans		2,313,519			2,401,629
Other real estate and repossessed assets		32,923			19,998
Property and equipment, net		73,355			73,318
Bank owned life insurance		46,041			44,896
Goodwill		16,734			16,734
Other intangibles		10,783			12,190
Capitalized mortgage loan servicing rights		14,334			11,966
Accrued income and other assets		37,605			44,802
Total Assets	$	2,963,628		$	2,956,245
Liabilities and Shareholders’ Equity
Deposits
Non-interest bearing	$	316,281		$	308,041
Savings and NOW		1,085,557			907,187
Retail time		554,475			668,968
Brokered time		529,521			182,283
Total Deposits		2,485,834			2,066,479
Federal funds purchased					750
Other borrowings		162,341			541,986
Subordinated debentures		92,888			92,888
Financed premiums payable		30,159			26,636
Accrued expenses and other liabilities		32,465			32,629
Total Liabilities		2,803,687			2,761,368
Shareholders’ Equity
Preferred stock, Series A, no par value, $1,000 liquidation preference per share—200,000 shares authorized; 72,000 shares issued and outstanding at September 30, 2009 and December 31, 2008		68,982			68,456
Common stock, $1.00 par value—60,000,000 shares authorized; issued and outstanding: 24,029,125 shares at September 30, 2009 and 23,013,980 shares at December 31, 2008		23,832			22,791
Capital surplus		201,360			200,687
Retained earnings (accumulated deficit)		(118,268	)		(73,849	)
Accumulated other comprehensive loss		(15,965	)		(23,208	)
Total Shareholders’ Equity		159,941			194,877
Total Liabilities and Shareholders’ Equity	$	2,963,628		$	2,956,245

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INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2009			2009			2008			2009			2008
	(unaudited)
							(in thousands)
Interest Income
Interest and fees on loans	$	45,290		$	45,224		$	46,427		$	134,915		$	141,303
Interest on securities
Taxable		1,475			1,705			2,078			4,913			6,558
Tax-exempt		841			976			1,652			2,924			5,998
Other investments		299			239			466			862			1,185
Total Interest Income		47,905			48,144			50,623			143,614			155,044
Interest Expense
Deposits		9,109			8,811			9,577			26,468			36,980
Other borrowings		3,537			3,814			7,099			12,021			20,511
Total Interest Expense		12,646			12,625			16,676			38,489			57,491
Net Interest Income		35,259			35,519			33,947			105,125			97,553
Provision for loan losses		22,285			25,593			19,788			77,916			43,456
Net Interest Income After Provision for Loan Losses		12,974			9,926			14,159			27,209			54,097
Non-interest Income
Service charges on deposit accounts		6,384			6,321			6,416			18,212			18,227
Net gains (losses) on assets
Mortgage loans		2,257			3,262			969			8,800			3,977
Securities		121			4,230			(6,711	)		3,770			(8,037	)
VISA check card interchange income		1,480			1,500			1,468			4,395			4,334
Mortgage loan servicing		(496	)		2,349			340			1,011			1,545
Title insurance fees		521			732			307			1,862			1,108
Other income		2,514			2,617			2,659			7,320			7,923
Total Non-interest Income		12,781			21,011			5,448			45,370			29,077
Non-interest Expense
Compensation and employee benefits		13,823			13,328			14,023			39,728			42,015
Vehicle service contract counterparty risk		8,713			2,215						11,728
Loan and collection		3,628			3,227			2,008			10,893			5,895
Occupancy, net		2,602			2,560			2,871			8,210			8,798
Data processing		2,146			2,010			1,760			6,252			5,197
Deposit insurance		1,729			2,755			275			5,670			1,526
Furniture, fixtures and equipment		1,727			1,848			1,662			5,424			5,304
Loss on other real estate and repossessed assets		1,958			1,939			425			5,158			2,091
Credit card and bank service fees		1,722			1,668			1,273			4,854			3,493
Advertising		1,335			1,421			1,575			4,198			3,843
Other expenses		4,174			4,086			4,784			12,690			13,936
Total Non-interest Expense		43,557			37,057			30,656			114,805			92,098
Income (Loss) Before Income Tax		(17,802	)		(6,120	)		(11,049	)		(42,226	)		(8,924	)
Income tax expense (benefit)		(1,088	)		(959	)		(5,723	)		(1,754	)		(7,285	)
Net Income (Loss)	$	(16,714	)	$	(5,161	)	$	(5,326	)	$	(40,472	)	$	(1,639	)
Preferred dividends		1,075			1,075						3,225
Net Income (Loss) Applicable to Common Stock	$	(17,789	)	$	(6,236	)	$	(5,326	)	$	(43,697	)	$	(1,639	)

10

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data

				Three Months Ended						Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2009			2009			2008			2009			2008
							(unaudited)
Per Common Share Data (A)
Net Income (Loss) Per Common Share
Basic (B)	$	(.74	)	$	(.26	)	$	(.23	)	$	(1.84	)	$	(.07	)
Diluted (C)		(.74	)		(.26	)		(.23	)		(1.84	)		(.07	)
Cash dividends declared		.01			.01			.01			.03			.13
Selected Ratios (annualized) (A)
As a Percent of Average Interest-Earning Assets
Tax equivalent interest income		6.97	%		7.04	%		7.02	%		7.03	%		7.18	%
Interest expense		1.82			1.83			2.26			1.86			2.60
Tax equivalent net interest income		5.15			5.21			4.76			5.17			4.58
Net Income (Loss) to
Average common equity		(67.40	)%		(22.98	)%		(8.97	)%		(51.44	)%		(0.91	)%
Average assets		(2.37	)		(0.83	)		(0.66	)		(1.96	)		(0.07	)
Average Shares
Basic (B)		24,029,540			24,029,942			23,014,263			23,811,195			22,974,685
Diluted (C)		24,102,489			24,102,482			23,073,979			23,880,695			23,049,469

(A)	For the three- and nine-month periods ended September 30, 2009 and the three-month period ended June 30, 2009, these amounts are calculated using net loss applicable to common stock.
(B)	Average shares of common stock for basic net income per share include shares issued and outstanding during the period and participating share awards.
(C)	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. For any period in which a loss is recorded, the assumed exercise of stock options, and stock units for deferred compensation plan for non-employee directors would have an anti-dilutive impact on the loss per share and thus are ignored in the diluted per share calculation.

11

EX-99.2

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets

	September 30,			December 31,
	2009			2008
	(dollars in thousands)
Non-accrual loans	$	113,003		$	122,639
Loans 90 days or more past due and still accruing interest		4,468			2,626
Total non-performing loans		117,471			125,265
Other real estate		32,923			19,998
Total non-performing assets	$	150,394		$	145,263
As a percent of Portfolio Loans
Non-performing loans		4.92	%		5.09	%
Allowance for loan losses		3.09			2.35
Non-performing assets to total assets		5.07			4.91
Allowance for loan losses as a percent of non-performing loans		63			46

Allowance for loan losses

				Nine months ended
				September 30,
	2009						2008
				Unfunded						Unfunded
	Loans			Commitments			Loans			Commitments
				(in thousands)
Balance at beginning of period	$	57,900		$	2,144		$	45,294		$	1,936
Additions (deduction)
Provision charged to operating expense		78,208			(292	)		44,039			(583	)
Recoveries credited to allowance		2,130						2,707
Loans charged against the allowance		(64,528	)					(38,142	)
Balance at end of period	$	73,710		$	1,852		$	53,898		$	1,353
Net loans charged against the allowance to average Portfolio Loans (annualized)		3.41	%					1.85	%

12

Alternative Sources of Funds

	September 30, 2009						December 31, 2008
			Average						Average
	Amount		Maturity	Rate			Amount		Maturity	Rate
				(dollars in thousands)
Brokered CDs	$	529,521	1.8 years		2.31	%	$	182,283	1.1 years		3.63	%
Fixed rate FHLB advances		124,454	2.2 years		2.54			314,214	2.3 years		3.49
Securities sold under agreements to Repurchase		35,000	1.1 years		4.42			35,000	1.9 years		4.42
FRB — Discount borrowing								189,500	.1 years		0.54
Federal funds purchased								750	1 day		0.25
Total	$	688,975	1.8 years		2.46	%	$	721,747	1.4 years		2.80	%

Capitalization

	September 30,			December 31,
	2009			2008
	(in thousands)
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, Series A, no par value		68,982			68,456
Common stock, par value $1.00 per share		23,832			22,791
Capital surplus		201,360			200,687
Retained earnings (accumulated deficit)		(118,268	)		(73,849	)
Accumulated other comprehensive loss		(15,965	)		(23,208	)
Total shareholders’ equity		159,941			194,877
Total capitalization	$	250,041		$	284,977

13

Non-Interest Income

				Three months ended					Nine months ended
	September 30,			June 30,		September 30,			September 30,
	2009			2009		2008			2009		2008
	(in thousands)
Service charges on deposit accounts	$	6,384		$	6,321	$	6,416		$	18,212	$	18,227
Net gains (losses) on assets
Mortgage loans		2,257			3,262		969			8,800		3,977
Securities		121			4,230		(6,711	)		3,770		(8,037	)
VISA check card interchange income		1,480			1,500		1,468			4,395		4,334
Mortgage loan servicing		(496	)		2,349		340			1,011		1,545
Mutual fund and annuity commissions		498			539		680			1,490		1,748
Bank owned life insurance		387			355		506			1,143		1,468
Title insurance fees		521			732		307			1,862		1,108
Other		1,629			1,723		1,473			4,687		4,707
Total non-interest income	$	12,781		$	21,011	$	5,448		$	45,370	$	29,077

Mortgage Loan Activity

				Three months ended						Nine months ended
	September 30,			June 30,			September 30,			September 30,
	2009			2009			2008			2009			2008
	(in thousands)
Mortgage loans originated	$	110,229		$	196,927		$	74,506		$	461,764		$	304,064
Mortgage loans sold		144,518			158,173			52,837			445,327			217,524
Mortgage loans sold with servicing rights released		20,676			9,174			16,760			35,279			36,302
Net gains on the sale of mortgage loans		2,257			3,262			969			8,800			3,977
Net gains as a percent of mortgage loans sold (“Loan Sale Margin”)		1.56	%		2.06	%		1.83	%		1.98	%		1.82	%
SFAS #133/#159 and SAB #109 adjustments included in the Loan Sale Margin		(0.51	)		0.04			(0.03	)		0.06			0.28

Capitalized Real Estate Mortgage Loan Servicing Rights

	Three months ended						Nine months ended
	September 30,						September 30,
	2009			2008			2009			2008
				(in thousands)
Balance at beginning of period	$	14,538		$	16,551		$	11,966		$	15,780
Originated servicing rights capitalized		1,321			403			4,444			2,035
Amortization		(716	)		(346	)		(3,535	)		(1,478	)
(Increase)/decrease in impairment reserve		(809	)		(348	)		1,459			(77	)
Balance at end of period	$	14,334		$	16,260		$	14,334		$	16,260
Impairment reserve at end of period	$	3,192		$	396		$	3,192		$	396

14

Non-Interest Expense

			Three months ended				Nine months ended
	September 30,		June 30,		September 30,		September 30,
	2009		2009		2008		2009		2008
	(in thousands)
Salaries	$	10,205	$	9,815	$	10,110	$	29,689	$	29,993
Performance-based compensation and benefits		1,067		747		1,336		2,143		4,083
Other benefits		2,551		2,766		2,577		7,896		7,939
Compensation and employee benefits		13,823		13,328		14,023		39,728		42,015
Vehicle service contract counterparty risk		8,713		2,215				11,728
Loan and collection		3,628		3,227		2,008		10,893		5,895
Occupancy, net		2,602		2,560		2,871		8,210		8,798
Data processing		2,146		2,010		1,760		6,252		5,197
Deposit insurance		1,729		2,755		275		5,670		1,526
Furniture, fixtures and equipment		1,727		1,848		1,662		5,424		5,304
Loss on other real estate and repossessed assets		1,958		1,939		425		5,158		2,091
Credit card and bank service fees		1,722		1,668		1,273		4,854		3,493
Advertising		1,335		1,421		1,575		4,198		3,843
Communications		1,152		1,107		968		3,304		3,004
Legal and professional		732		705		527		2,078		1,408
Amortization of intangible assets		432		474		760		1,407		2,314
Supplies		439		457		519		1,365		1,534
Other		1,419		1,343		2,010		4,536		5,676
Total non-interest expense	$	43,557	$	37,057	$	30,656	$	114,805	$	92,098

15

Average Balances and Tax Equivalent Rates

	Three Months Ended
	September 30,
	2009							2008
	Average							Average
	Balance		Interest		Rate			Balance		Interest		Rate
	(dollars in thousands)
Assets (1)
Taxable loans	$	2,464,183	$	45,190		7.29	%	$	2,584,151	$	46,294		7.14	%
Tax-exempt loans (2)		7,931		153		7.65			11,953		205		6.82
Taxable securities		110,929		1,475		5.28			142,483		2,078		5.80
Tax-exempt securities (2)		81,099		1,285		6.29			145,911		2,630		7.17
Cash — interest bearing		68,373		29		0.17
Other investments		28,087		270		3.81			45,362		466		4.09
Interest Earning Assets		2,760,602		48,402		6.97			2,929,860		51,673		7.02
Cash and due from banks		57,133							56,922
Other assets, net		157,309							224,626
Total Assets	$	2,975,044						$	3,211,408
Liabilities
Savings and NOW	$	1,009,110		1,403		0.55		$	966,415		2,262		0.93
Time deposits		1,096,644		7,706		2.79			814,434		7,315		3.57
Other borrowings		287,025		3,537		4.89			790,353		7,099		3.57
Interest Bearing Liabilities		2,392,779		12,646		2.10			2,571,202		16,676		2.58
Demand deposits		326,246							314,116
Other liabilities		82,432							89,951
Shareholders’ equity		173,587							236,139
Total liabilities and shareholders’ equity	$	2,975,044						$	3,211,408
Tax Equivalent Net Interest Income			$	35,756						$	34,997
Tax Equivalent Net Interest Income as a Percent of Earning Assets						5.15	%						4.76	%

(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%

16

Average Balances and Tax Equivalent Rates

	Nine Months Ended
	September 30,
	2009							2008
	Average							Average
	Balance		Interest		Rate			Balance		Interest		Rate
	(dollars in thousands)
Assets (1)
Taxable loans	$	2,490,900	$	134,647		7.22	%	$	2,575,809	$	140,925		7.30	%
Tax-exempt loans (2)		8,442		412		6.53			10,969		582		7.09
Taxable securities		114,608		4,913		5.73			152,812		6,558		5.73
Tax-exempt securities (2)		90,843		4,571		6.73			179,914		9,562		7.10
Cash — interest bearing		31,467		40		0.17
Other investments		28,454		822		3.86			32,553		1,185		4.86
Interest Earning Assets		2,764,714		145,405		7.03			2,952,057		158,812		7.18
Cash and due from banks		55,871							53,354
Other assets, net		158,753							226,367
Total Assets	$	2,979,338						$	3,231,778
Liabilities
Savings and NOW	$	976,571		4,477		0.61		$	985,938		8,281		1.12
Time deposits		977,943		21,991		3.01			928,304		28,699		4.13
Long-term debt									330		12		4.86
Other borrowings		443,895		12,021		3.62			689,296		20,499		3.97
Interest Bearing Liabilities		2,398,409		38,489		2.15			2,603,868		57,491		2.95
Demand deposits		318,633							300,411
Other liabilities		80,010							87,530
Shareholders’ equity		182,286							239,969
Total liabilities and shareholders’ equity	$	2,979,338						$	3,231,778
Tax Equivalent Net Interest Income			$	106,916						$	101,321
Tax Equivalent Net Interest Income as a Percent of Earning Assets						5.17	%						4.58	%

(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%

17

Commercial Loan Portfolio Analysis as of September 30, 2009

	Total Commercial Loans
									Percent of
			Watch Credits						Loan
					Non-				Category in Watch
Loan Category	All Loans		Performing		performing		Total		Credit
	(dollars in thousands)
Land	$	28,984	$	6,158	$	6,629	$	12,787		44.1	%
Land Development		34,320		10,475		13,208		23,683		69.0	%
Construction		32,010		4,541		7,880		12,421		38.8	%
Income Producing		385,420		76,497		18,506		95,003		24.6	%
Owner Occupied		195,454		27,642		8,525		36,167		18.5	%
Total Commercial Real Estate Loans (1)	$	676,188	$	125,313	$	54,748	$	180,061		26.6	%
Other Commercial Loans(1)	$	184,774	$	27,812		2,045	$	29,857		16.2	%
Total non-performing commercial loans					$	56,793

(1) The total of these two categories is different than the September 30, 2009, Consolidated Statement of Financial Condition due primarily to loans in process.

18

EX-99.3

Exhibit 99.3

Independent Bank Corporation 3rd Quarter 2009 Earnings Conference Call - October 27, 2009 1

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. 2

3rd Quarter 2009 Overview Michael M. Magee, President and Chief Executive Officer 3

3Q09: High-Level Overview 4 Foundation Remains Solid Core pre-tax, pre-provision earnings showed continued growth year-over-year and was stable on a linked quarter basis TE net interest margin was strong - currently among best in the industry Regulatory capital remains above minimum to be "well capitalized" Challenging 2009 Environment Continued weakness in the Michigan economy adversely impacted results $22.3 million loan loss provision in 3Q09 driven by declines in underlying collateral values as well as new loan defaults, however provision has declined on a sequential quarterly basis in 2009 Special charge at Mepco for vehicle service contract business counterparty risk Operational Achievements Proactive efforts to manage our credits resulted in improvements in commercial and mortgage non-performing loans and delinquency levels Linked-quarter non-performing assets declined for the second consecutive quarter We have made $804 million in loans (since the investment of CPP funds through 3Q09) Operational challenges Economic weakness likely to persist - sustained focus on fundamentals of community banking

3Q09: High-Level Overview - Continued 5 Interest and Dividends on Trust Preferred Securities and Preferred Stock Deferred In current environment need to preserve cash at the holding company level One cent dividend on common stock also suspended, effective Nov. 1, 2009 Special Shareholders Meeting Announced Tentatively scheduled for Dec. 18, 2009 Intend to seek approval to increase authorized common shares from 60 million to 500 million Intend to seek approval for "value for value" underwater stock option exchange program. This program will exclude directors and named executive officers.

3rd Quarter 2009 Financial Review Robert N. Shuster, Executive Vice President and CFO 6

3rd Quarter 2009 Recap 7 Net loss of $16.7 million and net loss applicable to common stock of $17.8 million or 74 cents per share Elevated provision for loan losses as well as other credit related costs (loss on ORE and loan and collection expenses) and a special charge at Mepco drove the loss Impairment charge of $0.8 million on capitalized mortgage loan servicing rights The net interest margin and most components of non-interest income remained strong Total assets flat at $2.96 billion Substantial increase in cash balances at the FRB as Bank expands liquidity Portfolio loans declined by 4% (annualized) year-to-date in 2009 and by 9% (annualized) in the third quarter of 2009 Mortgage loan origination volume declined by 44% on a sequential quarterly basis as refinance volume eases Deposits increased by $419.4 million and borrowings declined by $380.4 million due to liability duration extension program and net growth in core deposits

Valuation Allowance On Deferred Tax Asset 8 Current accounting impact Total net deferred tax asset of $49.2 million at 9/30/09. The associated valuation allowance is also $49.2 million at 9/30/09 (of which $36.2 million was established at 12/31/08). Income tax benefit of $1.1 million in 3Q 2009 relates to benefit associated with other comprehensive income that was partially offset by some state income taxes and some federal alternative minimum taxes. "More likely than not" accounting standard. 2009 and 2008 tax loss and tough operating environment. Potential future accounting implications In the near term neither pre-tax income or pre-tax losses will be tax effected (i.e. they will drop to the bottom line). The net deferred tax asset and related valuation allowance will continue to be evaluated quarterly. Asset is not lost, remains available to offset future taxable income. Total valuation allowance of $49.2 million equals $2.05 per common share.

Pre-Tax, Pre-Provision Core Operating Earnings 3Q09 2Q09 3Q08 Net income (loss) $(16,714) $ (5,161) $ (5,326) Income tax exp. (benefit) (1,088) (959) (5,723) Provision for loan losses 22,285 25,593 19,788 Est. losses VSC counterparty risk 8,713 2,215 -- Securities (gains) losses (121) (4,230) 6,711 MSR impairment (recovery) charge 809 (2,965) 348 Losses on ORE and ORA 1,958 1,939 425 Elevated loan/collection costs 2,378 1,977 758 Total $ 18,220 $ 18,409 $16,981 9

Tax Equivalent Net Interest Margin 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 Yield on Earning Assets 0.0775 0.0765 0.0737 0.0715 0.0702 0.0711 0.0708 0.0704 0.0697 Cost of Funds 0.0344 0.0343 0.0307 0.0247 0.0226 0.0231 0.0195 0.0183 0.0182 Net Interest Margin 0.0431 0.0422 0.043 0.0468 0.0476 0.048 0.0513 0.0521 0.0515 10

TE Net Interest Income 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 Net Interest Income 31881 31521 31785 34539 34997 33387 35044 36116 35756 11

TE Net Interest Income - Continued 12 Items impacting 3Q 2009 Reversal of interest on non-accrual loans of $0.377 million - compared to $0.787 million in 2Q'09 and $0.347 million in 3Q '08. Non-accrual loans averaged $119.5 million compared to $121.5 million in 2Q'09 and $115.4 million in 3Q '08. Average interest-earning assets totaled $2.76 billion compared to $2.78 billion in 2Q'09 and $2.93 billion in 3Q '08. Overnight FRB balances (yielding only about 0.25%) increased in 3Q'09 which was a primary reason for the decline in the yield on interest earning assets. Bank is building up liquidity as the economic climate remains challenged.

TE Net Interest Income Sensitivity at 9/30/09 (a) Interest rate change TE Net Interest Income TE Net Interest Margin 200 basis point rise $141,900 5.31% 100 basis point rise 141,000 5.28% Base case scenario (b) 141,800 5.31% 100 basis point decline 141,700 5.30% 200 basis point decline 140,100 5.24% 13 (a) Simulation analyses calculate the change in TE net interest income and the change in the TE net interest margin under immediate parallel shifts in interest rates over the next 12 months based on a static balance sheet. (b) 3Q 2009 annualized actual TE net interest income was $141.9 million and actual TE net interest margin was 5.15%.

Non-Interest Income Category ($ in 000's) 3Q09 2Q09 3Q08 Total non-interest income $12,781 $21,011 $5,448 Service charges - deposits 6,384 6,321 6,416 VISA check card income 1,480 1,500 1,468 Gain (loss) on securities 121 4,230 (6,711) Net gains - mortgage loan sales 2,257 3,262 969 Mortgage loan servicing (496) 2,349 340 Mutual fund and annuity commissions Title insurance fees 498 521 539 732 680 307 14

Non-Interest Expense Category ($ in 000's) 3Q09 2Q09 3Q08 Total non-interest expense $43,557 $37,057 $30,656 Compensation & employee benefits 13,823 13,328 14,023 Vehicle service contract counterparty risk 8,713 2,215 -- Loan and collection 3,628 3,227 2,008 Occupancy 2,602 2,560 2,871 FDIC Insurance 1,729 2,755 275 Credit card and bank service fees 1,722 1,668 1,273 Advertising 1,335 1,421 1,575 Loss on ORE and ORA 1,958 1,939 425 15

Mepco Counterparties - Charge for Estimated Losses 16 Historical perspective Mepco purchases payment plans on a recourse basis When consumer stops making payments or voluntarily cancels the vehicle service contract, Mepco recovers any unpaid balance from its payment plan business counterparties (direct marketers, automobile dealerships, administrators and insurance companies) Historical cancellation rates have generally been predictable and losses related to counterparty defaults were rare During the first nine months of 2008 there were no counterparty defaults and finance receivable net charge-offs were $20K. Recent developments Cancellation rates in 2009 have spiked and have also had an increased incidence of counterparty defaults $8.7 million charge for estimated losses associated with counterparty defaults in 3Q 2009 Despite this charge Mepco remained profitable with net income of $1.5 million in 3Q 2009 and $11.1 million for the first nine months of 2009

Provision for Loan Losses 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 Provison for Loan Losses 10735 9393 11316 12352 19788 27865 30038 25593 22285 17

Asset Quality Measures - Non-Performing Loans Non-performing loans by loan type ($ in 000's) 9/30/09 6/30/09 9/30/08 Commercial $ 56,793 $ 62,953 $ 74,219 Mortgage 49,291 51,406 33,869 Consumer/installment 8,396 7,783 3,945 Finance receivables 2,991 3,138 2,616 Total $117,471 $125,280 $114,649 As a % of total loans 4.92% 5.13% 4.58% . 18

Allowance for Loan Losses Allocation ($ in 000's) 9/30/09 6/30/09 9/30/08 Specific loan allocations $22,940 $17,461 $16,812 Adversely rated loans 13,791 11,492 10,179 Historical losses 22,775 22,830 16,243 Other factors/subjective 14,204 13,488 10,664 Total $73,710 $65,271 $53,898 As a % of portfolio loans 3.09% 2.67% 2.15% 19

Analysis of the Allowance for Loan Losses Loan type ($ in 000's) Loan Balance Allocated Allowance % of Loan Balance Commercial $ 863,556 $44,028 5.10% Mortgage 770,297 21,033 2.73% Consumer/installment 318,185 7,822 2.46% Finance receivables 435,191 827 0.19% Total $2,387,229 $73,710 3.09% . 20

Asset Quality Measures - Net Loan Charge-Offs Net loan charge-offs by loan type ($ in 000's) 3Q09 2Q09 1Q09 3Q08 Commercial $ 7,449 $10,697 $23,776 $12,314 Mortgage 4,890 6,491 4,559 3,698 Consumer 1,479 1,386 1,264 1,116 Overdrafts 157 116 122 248 Finance receivables 10 4 (2) (6) Total $13,985 $18,694 $29,719 $17,370 As a % of average loans 2.27% 3.05% 4.92% 2.69% 21

Securities Available for Sale at 9/30/09 Category ($ in 000's) Cost Basis "Fair" Value Difference Private label CMO's/asset backed (1) $ 46,892 $ 39,766 $ (7,126) Agency MBS 49,351 50,667 1,316 Bank trust preferred (2) 17,906 15,455 (2,451) Municipal securities 76,257 78,116 1,859 Totals $190,406 $184,004 $(6,402) Totals Totals Totals 22 Ratings distribution (based on fair values): 60% AAA; 12% AA; 14% A; 4% BAA; and 10% sub- investment grade. All individual bank issues, no CDO's.

Regulatory Capital Ratios (Independent Bank Corporation) Category Estimated 9/30/09 Actual 6/30/09 Actual 9/30/08 Tier 1 capital to average assets 6.99% 7.72% 7.42% Tier 1 capital to risk-weighted assets 9.00% 9.64% 9.56% Total capital to risk-weighted assets 11.64% 11.99% 11.29% 23

Liquidity and Capital 24 Liquidity Cash on hand at parent company of $22.3 million at 9/30/09 (intercompany tax payment of $4.3 million currently due to Independent Bank) Independent Bank has approximately $854 million in unused borrowing capacity at 9/30/09 Have substantially completed a strategy to pay-off all FRB discount window and TAF borrowings and short-term FHLB advances and replace with longer-term callable brokered CD's Building liquidity, cash and cash equivalents represent 6.2% of total assets at 9/30/09 compared to 2.0% at 12/31/08 Deferral of interest on trust preferred securities and dividends on preferred stock conserves $9 million of cash at holding company annually Capital Engaged investment banker, exploring a variety of capital raising initiatives Suspension of 1 cent per share quarterly cash dividend on common stock saves $1.0 million of capital annually (effective 11/1/09)

3rd Quarter 2009 Commercial Credit Review Stefanie M. Kimball, Executive Vice President and Chief Lending Officer 25

3rd Quarter 2009 Commercial Lending Summary Positive Trends Non Performing Loans (NPL's) and Non Performing Assets (NPA's) levels are improving. NPL's declined 10% during the 3rd quarter and 27% since year end. NPA's declined 3% during the 3rd quarter and 13% since year end. NPL & NPA improvements have been aided by transactions negotiated by the Special Assets Team. Further, the inflow of new non-accrual loans have slowed for each of the past four quarters. Properties in other real estate owned continue to increase as credits move through the workout cycle, offsetting sales of $1.7 million during the 3rd quarter. Commercial charge offs have improved during 2nd and 3rd quarters. 30+ Delinquencies for accruing loans remained well managed at 1.4% or $12 million. Challenges Significant headwinds from the Michigan economy continue. Heightened concern nationally regarding income producing real estate. Level of watch credits increased by $4 million during the 3rd quarter of 2009 and are comparable to the same quarter a year ago. 26

High-risk commercial real estate categories of land, land development and construction represent a relatively small proportion of total portfolio. Strategic direction continues to re-shape portfolio with shift towards C & I and away from certain commercial real estate segments which commenced mid-2007. Portfolio Segmentation 27

Income Producing Segment by Property Type Diversified Portfolio Balanced. Multi-family & 1-4 Family segments represent 29%. Seasoned Portfolio New originations curtailed several years ago. Granularity by Income Producing Segment: 28

Commercial Loan Outstanding Balances $47 million in new and renewed loan volume in 3rd Quarter offset by repayments. Overall commercial loan balances decreased by $30 million during 3rd Quarter 2009 given relatively weak loan demand. 29

Watch Credits Watch credits increased by $4 million and were comparable to the same quarter a year ago. Inflow of new watch credits has slowed. 30

Commercial 30+ Day Delinquency for Accruing Loans Commercial 30+ day delinquency remains well managed at 1.4% of the portfolio. Note: Graph includes all loans over 30 days past due still accruing. 31

Commercial Loan Non-Accruals Commercial loan non-accruals decreased $4 million during 3rd quarter 2009, aided by the transactions negotiated by the Special Assets team. Inflow of new non-accrual loans has declined in each of the last three quarters. 32

Composition of Nonaccrual Loans 50% of Nonaccrual loans are in Land, Land Development and Construction. Total average write-down of contractual loan balance to Nonaccrual is approximately 50%. Breakdown by Segment: Granularity of Commercial Nonaccruals: 33

Commercial Non Performing Assets Commercial Non Performing Assets declined in each of the past three quarters. Loans continue to migrate into ORE as credits move through the workout cycle. 34

Commercial Loan Net Charge Offs Net Charge-offs decreased significantly in both the 2nd and 3rd quarters of 2009. $0 $5,000 $10,000 $15,000 $20,000 $25,000 3/31/2008 6/30/2008 9/30/2008 12/31/2008 3/31/2009 6/30/2009 9/30/2009 Quarterly Commercial Loan Net Charge Offs Dollars (In Thousands) 35

Comprehensive Foundation of Credit Best Practices Real Estate Portfolio Monitoring recently conducted annual transactional review encompassing over 90% of real estate portfolio. Quarterly Watch Process to proactively manage high risk loans is in place. Risk Ratings are independently assigned and structured based on recommendations made upfront by Credit Officers. Special Assets Group established to provide more effective management of our most troubled loans. A select group of law firms supports the team. The group has been expanded with seasoned lenders and collections professionals and an in-house senior attorney has been added. Several commercial lenders focus exclusively on facilitating sales transactions. Loan Review provides portfolio/individual loan feedback to evaluate the effectiveness of processes by market. New Manager in place. Accountability ensured with management by objectives for each Lender and Senior Lender that emphasize credit quality. Risk Based Pricing has been enhanced with a new pricing matrix and minimum hurdle rates. Collateral Monitoring enhancements continue for both Commercial Real Estate and C & I Lending. Training for lending staff on all collateral types and appropriate collateral monitoring conducted. Centralized resources provide ongoing support. Portfolio Concentrations are monitored with select loan types encouraged. SBA Lending expanding with training for staff, increased marketing efforts and wider array of products offered. Outside Real Estate Experts leveraged help plan liquidation strategies and to manage diverse commercial ORE properties. 36

3rd Quarter 2009 - Retail Lending Credit Review Brad Kessel, Executive Vice President and COO 37

Retail Nonperforming Loans (as percent of outstandings) 38 Michigan Economic Trends Higher unemployment and declining residential real estate prices continue to make the operating environment very challenging. Source: Michigan Labor Market Information http://www.milmi.org/cgi/dataanalysis/AreaSelection.asp?tableName=Labforce Source: Michigan Association of Realtors http://www.mirealtors.com/content/housingstatistics.htm Michigan Unemployment Michigan Real Estate Sales and Prices

Retail Loan Balances 39 Retail Loan Balances & Origination Trends Saleable refinance pace is down from Q209, overall soft loan demand, correspondingly retail loan portfolios continue to decrease. Retail Loan Balances Retail Loan Production

Retail Nonperforming Loans (as percent of outstandings) 40 Retail Loan Portfolio Workout Statistics Continue to work with borrowers experiencing hardship using multiple home retention and home forfeiture actions, the loan modification being the predominant action.

Retail Nonperforming Loans (as percent of outstandings) 41 Retail Loan Portfolio Workout Statistics Refinanced or modified six months ago or more performing at a 76% success rate.

42 Retail Loan Portfolio - Past Due Trends (as percent of outstanding)

Retail 30 to 89 Day Delinquency (in dollars) 43 Retail Loan Portfolio Past Due Trends (in dollars) Improvement in both 30 - 89 day past due category and in non-performing loan category. Retail 30 to 89 Day Delinquency Retail Nonperforming Loans

Retail Nonperforming Loans (as percent of outstandings) 44 Retail Loan Portfolio - Nonperforming Assets Trends (NPL's, ORE and ORA) Overall improvement in non-performing assets Q309 versus Q209

Other Real Estate Liquidation History 45 Other Real Estate Statistics Strong quarter of liquidations for ORE, 109 properties at $4.965 million in NBV Sales Volume Realization Rates

Retail Net Charge Offs (Mortgage, Consumer, Overdrafts) 46 Retail Loan Portfolio - Net Charge-Offs Trends Overall net charge-offs continue to be elevated, but down from Q209

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 William (Brad) B. Kessel Executive Vice President and Chief Operations Officer 47

Thank you for participating in the conference call 48