exv99w2

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	%

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

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

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

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%

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%

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.