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: July 22, 2008

INDEPENDENT BANK CORPORATION

(Exact name of registrant as specified in its charter)

Michigan	0-7818	38-2032782
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)		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):

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))

TABLE OF CONTENTS

Press Release

Supplemental Data

Presentation

Item 2.02. Results of Operations and Financial Condition

On July 22, 2008, Independent Bank Corporation issued a press release announcing its financial results for the quarter ended June 30, 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 second quarter 2008 conference call to be conducted beginning at 10:00 a.m. ET on Wednesday, July 23, 2008. See the press release attached as Exhibit 99.1 to this Current Report on Form 8-K for information about participating in the conference call.

Item 9.01. Financial Statements and Exhibits

Exhibits.

99.1	Press release dated July 22, 2008.
99.2	Supplemental data to the Registrant’s press release dated July 22, 2008.
99.3	Slide presentation dated July 22, 2008.

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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 July 22, 2008	By	/s/ Robert N. Shuster
		Robert N. Shuster, Principal Financial Officer

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EX-99.1

Exhibit 99.1

NEWS FROM

FOR IMMEDIATE RELEASE	CONTACT: Robert N. Shuster
	Executive Vice President and
	Chief Financial Officer

616/522-1765

INDEPENDENT BANK CORPORATION
REPORTS INCREASE IN SECOND QUARTER 2008 EARNINGS

IONIA, Mich., July 22, 2008 — Independent Bank Corporation (NASDAQ: IBCP), a leading Michigan-based community bank, reported second quarter 2008 net income from continuing operations of $3.3 million, or $0.15 per diluted share, versus net income from continuing operations of $108,000, or $0.00 per diluted share, in the prior-year period. For the quarter ended June 30, 2008, the Company recorded net income of $3.3 million, or $0.15 per diluted share, compared to a net loss of $43,000, or $0.00 per diluted share, in the second quarter of 2007.

Return on average equity and return on average assets (based on net income from continuing operations) were 5.58% and 0.42%, respectively, in the second quarter of 2008, compared to 0.17% and 0.01%, respectively, in the second quarter of 2007.

For the six months ended June 30, 2008, net income from continuing operations was $3.7 million, or $0.16 per diluted share, compared to $4.0 million, or $0.17 per diluted share, in the same six-month period of 2007. Net income for the six months ended June 30, 2008 was $3.7 million, or $0.16 per diluted share, compared to $4.2 million, or $0.18 per diluted share, in the prior-year six-month period.

The year-on-year increase in second quarter 2008 income from continuing operations was primarily attributable to increases in net interest income, securities gains and mortgage loan servicing income as well as a decline in the provision for loan losses. These changes were partially offset by higher non-interest expenses and income taxes.

Michael M. Magee, President and CEO of Independent Bank Corporation, commented: “We are very pleased with the improvement in our current quarter results particularly in the face of a challenging market. The increase in our net interest margin was particularly encouraging. Our bank remains well capitalized. Moreover, we intend to continue to build our regulatory capital ratios without the need for any equity offering through our earnings and a selective reduction of our total assets.”

Operating Results

The Company’s tax equivalent net interest income totaled $34.5 million during the second quarter of 2008, an increase of $2.5 million or 7.7% from the year-ago period, and an increase of $2.8 million, or 8.7% from the first quarter of 2008. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 4.68% during the second quarter of 2008 compared to 4.27% in the year ago period, and 4.30% in the first quarter of 2008. As noted in the Company’s prior earnings release, based on current conditions, the decline in short-term interest rates earlier in 2008 was expected to have a beneficial impact on the future net interest margin. This benefit was evident in the second quarter of 2008 as the Company’s cost of funds declined by 60 basis points compared to the first quarter. However, 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 $0.6 million in the second

quarter of 2008, compared to $0.4 million in the second quarter of 2007, due to the reversal of interest on loans placed on non-accrual during the quarter.

Service charges on deposits totaled $6.2 million in the second quarter of 2008, a 3.4% decrease from the comparable period in 2007 due primarily to a decline in overdraft fees. VISA check card interchange income increased by 15.7% to $1.5 million for the second quarter of 2008, up from $1.3 million in the second quarter of 2007. The increase in check card interchange revenues resulted primarily from an increase in debit card usage by the Company’s customer base.

Securities gains totaled $0.8 million in the second quarter of 2008, versus $0.1 million in the comparable period in 2007. The Company generated $0.7 million of gains in the current quarter related to the sale of $20.7 million of municipal securities. The sale of certain municipal securities in the second quarter of 2008 was initiated in order to reduce the mix of tax-exempt securities and to begin a process of selectively deleveraging the balance sheet in order to enhance regulatory capital ratios.

Gains on the sale of mortgage loans were $1.1 million in the second quarter of 2008, compared to $1.2 million in the year-ago quarter. Mortgage loan sales totaled $80.2 million in the second quarter of 2008, compared to $77.9 million in the second quarter of 2007. Mortgage loans originated totaled $111.3 million in the second quarter of 2008, compared to $129.6 million in the comparable quarter of 2007. The decline in mortgage loan originations is primarily due to an increase in mortgage loan interest rates during the second quarter of 2008 leading to a drop in refinancing activity. In addition, purchase money mortgage activity has declined due to lower home sales volumes. Loans held for sale were $26.2 million at June 30, 2008, compared to $34.0 million at December 31, 2007.

Mortgage loan servicing income was $1.5 million in the second quarter of 2008, versus $0.7 million in the year-ago period. This increase is primarily due to a $1.0 million recovery of previously recorded impairment charges on capitalized mortgage loan servicing rights in the second quarter of 2008, compared to a $0.1 million recovery of previously recorded impairment charges in the second quarter of 2007. At June 30, 2008, the Company was servicing approximately $1.66 billion in mortgage loans for others on which servicing rights have been capitalized.

Non-interest expense totaled $31.2 million in the second quarter of 2008, compared to $29.8 million in the year-ago period. The rise in non-interest expenses was primarily due to increases in loan and collection expenses and losses on other real estate and repossessed assets. These items increased because of the elevated level of non-performing loans and lower residential housing prices.

Asset Quality

Commenting on asset quality, CEO Magee stated: “While we remain cautious about economic conditions, we were pleased with the slowing rate of growth in non-performing loans and watch credits in the current quarter, as well as the improvement in commercial loan delinquency rates. These improvements reflect, in part, the ongoing efforts of our team to proactively identify and assess potential problem loans.”

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

Loan Type	6/30/2008			3/31/2008			12/31/2007
	(Dollars in Millions)
Commercial	$	74.4		$	72.1		$	49.0
Consumer		3.9			3.4			3.4
Mortgage		30.6			24.8			23.1
Finance receivables		2.5			1.9			1.7
Total	$	111.4		$	102.2		$	77.2
Ratio of non-performing loans to total portfolio loans		4.34	%		4.03	%		3.03	%
Ratio of non-performing assets to total assets		3.78	%		3.53	%		2.65	%
Ratio of the allowance for loan losses to non-performing loans		45.81	%		48.84	%		58.63	%

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The increase in non-performing loans since year-end 2007 is due principally to an increase in non-performing commercial loans, which primarily reflect the addition of several 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 $11.0 million at June 30, 2008, compared to $9.7 million at December 31, 2007.

The provision for loan losses was $12.4 million and $14.9 million in the second quarters of 2008 and 2007, 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 $11.3 million (1.78% annualized of average loans) in the second quarter of 2008, compared to $7.4 million (1.18% annualized of average loans) in the second quarter of 2007. The second quarter 2008 loan net charge-offs were divided among the following categories: commercial loans, $8.4 million; consumer loans, $0.7 million (including $0.2 million of deposit overdrafts); and mortgage loans, $2.2 million. The commercial loan and mortgage loan net charge-offs in the second quarter of 2008 primarily reflect write-downs to expected liquidation values for real estate or other collateral securing the loans. At June 30, 2008, the allowance for loan losses totaled $51.1 million, or 1.99% of portfolio loans, compared to $45.3 million or 1.78% of portfolio loans at December 31, 2007.

Balance Sheet

Total assets were $3.24 billion at June 30, 2008, compared to $3.28 billion at December 31, 2007. Loans, excluding loans held for sale, were $2.57 billion at June 30, 2008, compared to $2.55 billion at December 31, 2007. Deposits totaled $2.08 billion at June 30, 2008, a decrease of $425.0 million from December 31, 2007. The decrease in deposits primarily reflects a $403.5 million decline in brokered certificates of deposits (“brokered CD’s”). During the first six months 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 $238.3 million at June 30, 2008, or 7.36% of total assets, representing a net book value per share of $10.35. The Company remains “well capitalized” for regulatory purposes.

Magee concluded: “Like so many other Midwest-based community banks, we have continued to confront some of the most challenging industry conditions in recent memory. While the current economic outlook is not expected to improve significantly in the near term, we believe our process and operating discipline will enable our Company to improve shareholder value over the long run. We remain firmly committed to containing costs, improving credit quality, and upholding the fundamentals of community banking.”

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 second quarter 2008 results in a conference call for investors and analysts beginning at 10:00 a.m. ET on Wednesday, July 23, 2008.

To participate in the live conference call, please dial 1-800-860-2442. The call can also be accessed (listen-only mode) via the Company’s website at www.ibcp.com in the “Investor Relations” section. A playback of the call can be accessed by dialing 1-877-344-7529 (Replay Passcode # 420264). The replay will be available through July 31, 2008.

In addition, a Power Point presentation associated with the second 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 Wednesday, July 23, 2008.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of over $3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation

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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.

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INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition

	June 30,			December 31,
	2008			2007
	(unaudited)
	(in thousands)
Assets
Cash and due from banks	$	69,441		$	79,289
Trading securities		12,963
Securities available for sale		308,757			364,194
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		28,063			21,839
Loans held for sale, carried at fair value, at June 30, 2008		26,188			33,960
Loans
Commercial		1,060,216			1,066,276
Mortgage		861,886			873,945
Installment		366,786			368,478
Finance receivables		276,535			238,197
Total Loans		2,565,423			2,546,896
Allowance for loan losses		(51,104	)		(45,294	)
Net Loans		2,514,319			2,501,602
Property and equipment, net		72,413			73,558
Bank owned life insurance		43,897			42,934
Goodwill		66,754			66,754
Other intangibles		13,708			15,262
Capitalized mortgage loan servicing rights		16,551			15,780
Accrued income and other assets		65,981			60,910
Total Assets	$	3,239,035		$	3,276,082
Liabilities and Shareholders’ Equity
Deposits
Non-interest bearing	$	306,506		$	294,332
Savings and NOW		978,894			987,299
Retail time		682,199			707,419
Brokered time		112,539			516,077
Total Deposits		2,080,138			2,505,127
Federal funds purchased		40,671			54,452
Other borrowings		702,059			302,539
Subordinated debentures		92,888			92,888
Financed premiums payable		53,931			44,911
Liabilities of discontinued operations					34
Accrued expenses and other liabilities		31,078			35,629
Total Liabilities		3,000,765			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: 23,014,262 shares at June 30, 2008 and 22,647,511 shares at December 31, 2007		22,773			22,601
Capital surplus		196,819			195,302
Retained earnings		22,178			22,770
Accumulated other comprehensive income (loss)		(3,500	)		(171	)
Total Shareholders’ Equity		238,270			240,502
Total Liabilities and Shareholders’ Equity	$	3,239,035		$	3,276,082

5

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations

	Three Months Ended								Six Months Ended
	June 30,		March 31,			June 30,			June 30,			June 30,
	2008		2008			2007			2008			2007
	(unaudited)
	(in thousands)
Interest Income
Interest and fees on loans	$	46,750	$	48,126		$	50,576		$	94,876		$	100,529
Interest on securities
Taxable		2,176		2,304			2,592			4,480			5,069
Tax-exempt		2,099		2,247			2,535			4,346			5,135
Other investments		362		357			464			719			778
Total Interest Income		51,387		53,034			56,167			104,421			111,511
Interest Expense
Deposits		11,191		16,212			23,378			27,403			45,786
Other borrowings		6,975		6,437			2,313			13,412			5,617
Total Interest Expense		18,166		22,649			25,691			40,815			51,403
Net Interest Income		33,221		30,385			30,476			63,606			60,108
Provision for loan losses		12,352		11,316			14,893			23,668			23,032
Net Interest Income After Provision for Loan Losses		20,869		19,069			15,583			39,938			37,076
Non-interest Income
Service charges on deposit accounts		6,164		5,647			6,380			11,811			11,268
Net gains (losses) on assets
Mortgage loans		1,141		1,867			1,238			3,008			2,319
Securities		837		(2,163	)		128			(1,326	)		207
VISA check card interchange income		1,495		1,371			1,292			2,866			2,242
Mortgage loan servicing		1,528		(323	)		712			1,205			1,239
Title insurance fees		384		417			430			801			844
Other income		2,588		2,676			2,593			5,264			5,324
Total Non-interest Income		14,137		9,492			12,773			23,629			23,443
Non-interest Expense
Compensation and employee benefits		13,808		14,184			14,784			27,992			28,752
Occupancy, net		2,813		3,114			2,735			5,927			5,349
Loan and collection		2,031		1,856			1,221			3,887			2,227
Furniture, fixtures and equipment		1,825		1,817			1,991			3,642			3,891
Data processing		1,712		1,725			1,912			3,437			3,350
Loss on other real estate and repossessed assets		1,560		106			68			1,666			92
Advertising		1,168		1,100			1,341			2,268			2,493
Branch acquisition and conversion costs							(92	)					330
Goodwill impairment													343
Other expenses		6,274		6,349			5,841			12,623			10,940
Total Non-interest Expense		31,191		30,251			29,801			61,442			57,767
Income (Loss) From Continuing Operations Before Income Tax		3,815		(1,690	)		(1,445	)		2,125			2,752
Income tax expense (benefit)		469		(2,031	)		(1,553	)		(1,562	)		(1,248	)
Income From Continuing Operations		3,346		341			108			3,687			4,000
Discontinued operations, net of tax							(151	)					200
Net Income (Loss)	$	3,346	$	341		$	(43	)	$	3,687		$	4,200

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INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2008			2008			2007			2008			2007
	(unaudited)
Per Share Data
Income From Continuing Operations
Basic (A)	$	.15		$	.02		$	.00		$	.16		$	.18
Diluted (B)		.15			.01			.00			.16			.17
Net Income (Loss)
Basic (A)	$	.15		$	.02		$	.00		$	.16		$	.18
Diluted (B)		.15			.01			.00			.16			.18
Cash dividends declared		.01			.11			.21			.12			.42
Selected Ratios (annualized)
As a Percent of Average Interest-Earning Assets
Tax equivalent interest income		7.15	%		7.37	%		7.70	%		7.26	%		7.72	%
Interest expense		2.47			3.07			3.43			2.77			3.47
Tax equivalent net interest income		4.68			4.30			4.27			4.49			4.25
Income From Continuing Operations
Average equity		5.58	%		0.56	%		0.17	%		3.07	%		3.14	%
Average assets		0.42			0.04			0.01			0.23			0.25
Net Income (Loss) to
Average equity		5.58	%		0.56	%		(0.07	)%		3.07	%		3.30	%
Average assets		0.42			0.04			(0.01	)		0.23			0.26
Average Shares
Basic (A)		22,767,396			22,638,898			22,584,535			22,703,147			22,705,901
Diluted (B)		22,834,331			22,768,219			22,801,194			22,806,178			22,973,356

(A)

Average shares of common stock for basic net income per share include shares issued and outstanding during the period.

(B)

Average shares of common stock for diluted net income per share include shares to be issued upon exercise of stock options, stock units for deferred compensation plan for non-employee directors and unvested restricted shares. 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.

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EX-99.2

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data

Non-performing assets

	June 30,			December 31,
	2008			2007
	(dollars in thousands)
Non-accrual loans	$	109,844		$	72,682
Loans 90 days or more past due and still accruing interest		1,560			4,394
Restructured loans					173
Total non-performing loans		111,404			77,249
Other real estate		11,098			9,723
Total non-performing assets	$	122,502		$	86,972
As a percent of Portfolio Loans
Non-performing loans		4.34	%		3.03	%
Allowance for loan losses		1.99			1.78
Non-performing assets to total assets		3.78			2.65
Allowance for loan losses as a percent of non-performing loans		46			59

Allowance for loan losses

	Six months ended
	June 30,
	2008						2007
				Unfunded						Unfunded
	Loans			Commitments			Loans			Commitments
	(in thousands)
Balance at beginning of period	$	45,294		$	1,936		$	26,879		$	1,881
Additions (deduction)
Provision charged to operating expense		23,875			(207	)		22,658			374
Recoveries credited to allowance		1,099						1,140
Loans charged against the allowance		(19,164	)					(12,464	)
Balance at end of period	$	51,104		$	1,729		$	38,213		$	2,255
Net loans charged against the allowance to average Portfolio Loans (annualized)		1.43	%					0.92	%

Alternative Sources of Funds

	June 30,						December 31,
	2008						2007
			Average						Average
	Amount		Maturity	Rate			Amount		Maturity	Rate
	(dollars in thousands)
Brokered CDs(1,2)	$	112,539	1.8 years		4.24	%	$	516,077	1.9 years		4.72	%
Fixed rate FHLB advances(1)		396,925	2.1 years		3.15			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	2.4 years		4.42			35,000	2.9 years		4.42
FRB — Discount borrowing		269,000	.2 years		2.25
Federal funds purchased		40,671	1 day		2.25			54,452	1 day		4.00
Total	$	854,135	1.4 years		3.02	%	$	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

	June 30,			December 31,
	2008			2007
	(in thousands)
Unsecured debt				$	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		22,773			22,601
Capital surplus		196,819			195,302
Retained earnings		22,178			22,770
Accumulated other comprehensive income (loss)		(3,500	)		(171	)
Total shareholders’ equity		238,270			240,502
Total capitalization	$	328,370		$	333,602

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Non-Interest Income

	Three months ended							Six months ended
	June 30,		March 31,			June 30,		June 30,
	2008		2008			2007		2008			2007
	(in thousands)
Service charges on deposit accounts	$	6,164	$	5,647		$	6,380	$	11,811		$	11,268
Net gains (losses) on assets
Mortgage loans		1,141		1,867			1,238		3,008			2,319
Securities		837		(2,163	)		128		(1,326	)		207
VISA check card interchange income		1,495		1,371			1,292		2,866			2,242
Mortgage loan servicing		1,528		(323	)		712		1,205			1,239
Mutual fund and annuity commissions		644		424			467		1,068			946
Bank owned life insurance		484		478			448		962			897
Title insurance fees		384		417			430		801			844
Manufactured home loan origination fees and commissions							115					229
Other		1,460		1,774			1,563		3,234			3,252
Total non-interest income	$	14,137	$	9,492		$	12,773	$	23,629		$	23,443

Mortgage Loan Activity

	Three months ended									Six months ended
	June 30,			March 31,			June 30,			June 30,
	2008			2008			2007			2008			2007
	(in thousands)
Mortgage loans originated	$	111,316		$	118,242		$	129,613		$	229,558		$	246,428
Mortgage loans sold		80,238			84,449			77,913			164,687			147,125
Mortgage loans sold with servicing rights released		11,660			7,882			12,604			19,542			24,283
Net gains on the sale of mortgage loans		1,141			1,867			1,238			3,008			2,319
Net gains as a percent of mortgage loans sold (“Loan Sale Margin”)		1.42	%		2.21	%		1.59	%		1.83	%		1.58	%
SFAS #133/#159 adjustments included in the Loan Sale Margin		(0.25	)		0.97			0.00			0.38			0.00

Capitalized Real Estate Mortgage Loan Servicing Rights

	Three months ended						Six months ended
	June 30,						June 30,
	2008			2007			2008			2007
	(in thousands)
Balance at beginning of period	$	15,297		$	14,961		$	15,780		$	14,782
Originated servicing rights capitalized		754			776			1,632			1,462
Amortization		(496	)		(432	)		(1,132	)		(839	)
(Increase)/decrease in impairment reserve		996			138			271			38
Balance at end of period	$	16,551		$	15,443		$	16,551		$	15,443
Impairment reserve at end of period	$	48		$	30		$	48		$	30

3

Non-Interest Expense

	Three months ended							Six months ended
	June 30,		March 31,		June 30,			June 30,
	2008		2008		2007			2008		2007
					(in thousands)
Salaries	$	9,727	$	10,156	$	10,776		$	19,883	$	20,777
Performance-based compensation and benefits		1,443		1,304		1,153			2,747		2,474
Other benefits		2,638		2,724		2,855			5,362		5,501
Compensation and employee benefits		13,808		14,184		14,784			27,992		28,752
Occupancy, net		2,813		3,114		2,735			5,927		5,349
Loan and collection		2,031		1,856		1,221			3,887		2,227
Furniture, fixtures and equipment		1,825		1,817		1,991			3,642		3,891
Data processing		1,712		1,725		1,912			3,437		3,350
Loss on other real estate and repossessed assets		1,560		106		68			1,666		92
Advertising		1,168		1,100		1,341			2,268		2,493
Credit card and bank service fees		1,174		1,046		970			2,220		1,937
Communications		1,021		1,015		1,014			2,036		1,844
Deposit insurance		418		833		173			1,251		260
Amortization of intangible assets		761		793		935			1,554		1,505
Supplies		472		543		581			1,015		1,188
Legal and professional		463		418		457			881		963
Branch acquisition and conversion costs						(92	)				330
Goodwill impairment											343
Other		1,965		1,701		1,711			3,666		3,243
Total non-interest expense	$	31,191	$	30,251	$	29,801		$	61,442	$	57,767

4

Average Balances and Tax Equivalent Rates

					Three Months Ended
					June 30,
	2008							2007
	Average							Average
	Balance		Interest		Rate			Balance		Interest		Rate
	(dollars in thousands)
Assets
Taxable loans (1)	$	2,578,668	$	46,618		7.26	%	$	2,523,614	$	50,468		8.01	%
Tax-exempt loans (1,2)		11,316		203		7.22			9,761		166		6.82
Taxable securities		153,895		2,176		5.69			202,342		2,592		5.14
Tax-exempt securities (2)		189,313		3,346		7.11			230,873		4,069		7.07
Other investments		27,633		362		5.27			38,068		464		4.89
Interest Earning Assets - Continuing Operations		2,960,825		52,705		7.15			3,004,658		57,759		7.70
Cash and due from banks		50,637							49,947
Taxable loans — discontinued operations									744
Other assets, net		228,550							230,147
Total Assets	$	3,240,012						$	3,285,496
Liabilities
Savings and NOW	$	993,186		2,454		0.99		$	994,116		4,728		1.91
Time deposits		872,385		8,737		4.03			1,521,496		18,650		4.92
Long-term debt									2,495		29		4.66
Other borrowings		746,983		6,975		3.76			129,781		2,284		7.06
Interest Bearing Liabilities- Continuing Operations		2,612,554		18,166		2.80			2,647,888		25,691		3.89
Demand deposits		297,151							300,329
Time deposits — discontinued operations									527
Other liabilities		89,299							82,591
Shareholders’ equity		241,008							254,161
Total liabilities and shareholders’ equity	$	3,240,012						$	3,285,496
Tax Equivalent Net Interest Income			$	34,539						$	32,068
Tax Equivalent Net Interest Income as a Percent of Earning Assets						4.68	%						4.27	%

(1)	All domestic
(2)	Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 35%

5

Average Balances and Tax Equivalent Rates

	Six Months Ended
	June 30,
	2008							2007
	Average							Average
	Balance		Interest		Rate			Balance		Interest		Rate
	(dollars in thousands)
Assets
Taxable loans (1)	$	2,571,593	$	94,631		7.39	%	$	2,517,273	$	100,317		8.01	%
Tax-exempt loans (1,2)		10,472		377		7.24			9,639		326		6.82
Taxable securities		158,032		4,480		5.70			193,787		5,069		5.27
Tax-exempt securities (2)		197,102		6,932		7.07			234,741		8,190		7.04
Other investments		26,077		719		5.54			31,850		778		4.93
Interest Earning Assets - Continuing Operations		2,963,276		107,139		7.26			2,987,290		114,680		7.72
Cash and due from banks		51,549							51,907
Taxable loans — discontinued operations									16,737
Other assets, net		227,250							218,120
Total Assets	$	3,242,075						$	3,274,054
Liabilities
Savings and NOW	$	995,808		6,019		1.22		$	949,021		8,977		1.91
Time deposits		985,865		21,384		4.36			1,514,266		36,809		4.90
Long-term debt		497		12		4.86			2,743		63		4.63
Other borrowings		638,211		13,400		4.22			164,529		5,554		6.81
Interest Bearing Liabilities- Continuing Operations		2,620,381		40,815		3.13			2,630,559		51,403		3.94
Demand deposits		293,483							291,598
Time deposits — discontinued operations									12,173
Other liabilities		86,306							82,828
Shareholders’ equity		241,905							256,896
Total liabilities and shareholders’ equity	$	3,242,075						$	3,274,054
Tax Equivalent Net Interest Income			$	66,324						$	63,277
Tax Equivalent Net Interest Income as a Percent of Earning Assets						4.49	%						4.25	%

(1)	All domestic
(2)	Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 35%

6

Commercial Loan Portfolio Analysis as of June 30, 2008

			Total Commercial Loans
									Percent of
			Watch Credits						Loan
					Non-				Category in
Loan Category	All Loans		Performing		performing		Total		Watch Credit
	(dollars in thousands)
Land	$	47,448	$	14,169	$	10,785	$	24,954		52.6	%
Land Development		71,588		18,822		21,807		40,629		56.8	%
Construction		67,181		9,915		6,601		16,516		24.6	%
Income Producing		432,576		65,234		25,045		90,279		20.9	%
Owner Occupied		227,863		21,307		6,392		27,699		12.2	%
Total Commercial Real Estate Loans (1)	$	846,656	$	129,447	$	70,630	$	200,077		23.6	%
Other Commercial Loans(1)	$	212,985	$	20,053	$	3,808	$	23,861		11.2	%
Total non-performing commercial loans					$	74,438

(1) The total of these two categories is different than the June 30, 2008, Consolidated Statement of Financial Condition due primarily to loans in process.

7

EX-99.3

EXHIBIT 99.3

Independent Bank Corporation 2nd Quarter 2008 Earnings Conference Call - July 23, 2008

Overview of 2nd 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 2Q 08 1Q 08 2Q 07 Income from continuing operations (millions) $3.3 $0.3 $0.1 EPS - continuing operations $0.15 $0.01 $0.00 ROA - continuing operations 0.42% 0.04% 0.01% ROE - continuing operations 5.58% 0.56% 0.17% Total assets (billions) at period end $3.24 $3.25 $3.26 Stockholders' equity (millions) at period end $238.3 $238.5 $244.0 Common shares outstanding (millions) at period end 23.01 23.02 22.64 4

2Q:08 - High-Level Overview 5 Strategic Initiatives Dividend reduced further and balance sheet deleveraging initiated to boost regulatory capital ratios Efforts to improve credit quality remain our top priority- focused on loan monitoring + portfolio management function + resolution of non-performing assets Operational Achievements Enhanced profitability despite elevated credit costs Strong growth in net interest margin Strategic challenges Michigan economy remains weak Marketplace reports create concern among investors and customers Operational challenges Asset quality and related increase in non-performing loans continues to result in an elevated provision for loan losses and higher loan and collection expenses

2nd Quarter 2008 Financial Review Robert N. Shuster, Executive Vice President and CFO 6

2nd Quarter 2008 Recap 7 Positive Factors Strong growth in net interest income and the net interest margin on both a year-over-year and sequential quarterly basis. Certain categories of non-interest income remain strong. Balance sheet generally remains structured to benefit from relatively low short-term interest rates and/or a steep 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.

2nd Quarter 2008 Recap - Continued 8 A few moving parts Securities gains - $0.02 per share MSR impairment recovery - $0.03 per share ORE write-down/losses - $(0.04) per share Litigation settlement/accrual - $(0.01) a share Loan loss provision and loan and collection expenses remain elevated

FAS 159 Fair Value Elections 9 Elected FV accounting for a portfolio of preferred stocks and loans held for sale effective 1/1/08 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. Fannie Mae - Par value $5.4 million / FV $4.1 million at 3/31/08 / FV $4.1 million at 6/30/08 Freddie Mac - Par value $3.2 million / FV $1.8 million at 3/31/08 / FV $2.1 million at 6/30/08 Goldman Sachs - Par value $5.0 million / FV $3.6 million at 3/31/08 / FV $3.6 million at 6/30/08 Merrill Lynch - Par value $6.0 million / FV at $3.4 million 3/31/08 / FV $3.2 million at 6/30/08

Tax Equivalent Net Interest Margin 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 Yield on Earning Assets 0.0762 0.076 0.0769 0.0774 0.077 0.0775 0.0765 0.0737 0.0715 Cost of Funds 0.0309 0.0334 0.0347 0.0351 0.0343 0.0344 0.0343 0.0307 0.0247 Net Interest Margin 0.0453 0.0426 0.0423 0.0423 0.0427 0.0431 0.0422 0.043 0.0468 10

TE Net Interest Income 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 Net Interest Income 33293 31568 31514 31209 32068 31881 31521 31785 34539 11

Shift from Brokered CD's to Lower Cost Funding 12/31/2006 3/31/2007 6/30/2007 9/30/2007 12/31/2007 3/31/2008 6/30/2008 Net Interest Income 1055 882 813 705 516 248 113 12

Non-Interest Income Category ($ in 000's) 2Q08 1Q08 2Q07 Total non-interest income $14,137 $9,492 $12,773 Service charges - deposits 6,164 5,647 6,380 VISA check card income 1,495 1,371 1,292 Gain (loss) on securities 837 (2,163) 128 Net gains - mortgage loan sales 1,141 1,867 1,238 Mortgage loan servicing fees 1,528 (323) 712 Mutual fund and annuity commissions 644 424 467 13

Non-Interest Expense Category ($ in 000's) 2Q08 1Q08 2Q07 Total non-interest expense $31,191 $30,251 $29,801 Compensation & employee benefits 13,808 14,184 14,784 Occupancy 2,813 3,114 2,735 Advertising 1,168 1,100 1,341 Loan and collection 2,031 1,856 1,221 Loss on ORE and ORA 1,560 106 68 14

Provision for Loan Losses 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 Provison for Loan Losses 2511 4484 7963 8139 14893 10735 9393 11316 12352 15

Asset Quality Measures - Non-Performing Loans Non-performing loans by loan type ($ in 000's) 6/30/08 3/31/08 12/31/07 Commercial $ 74,438 $ 72,068 $48,945 Mortgage 30,575 24,824 23,147 Consumer 3,897 3,427 3,435 Finance receivables 2,494 1,867 1,722 Total $111,404 $102,186 $77,249 As a % of total loans 4.34% 4.03% 3.03% . 16

Allowance for Loan Losses Allocation ($ in 000's) 6/30/08 3/31/08 12/31/07 Specific loan allocations $15,907 $16,166 $10,713 Adversely rated loans 10,305 9,753 10,804 Historical losses 14,905 14,512 14,668 Other factors/subjective 9,987 9,480 9,109 Total $51,104 $49,911 $45,294 As a % of portfolio loans 1.99% 1.97% 1.78% 17

Asset Quality Measures - Net Loan Charge-Offs Net loan charge-offs by loan type ($ in 000's) 2Q08 1Q08 4Q07 3Q07 Commercial $8,403 $3,498 $2,637 $3,893 Mortgage 2,238 2,124 2,739 1,819 Consumer 498 982 964 560 Overdrafts 160 149 333 362 Finance receivables 0 13 46 14 Total $11,299 $6,766 $6,719 $6,648 As a % of average loans 1.78% 1.07% 1.05% 1.05% 18

Balance Sheet Overview 12/31/2003 12/31/2004 12/31/2005 12/31/2006 12/31/2007 3/31/2008 6/30/2008 Loans 1.58 2.09 2.37 2.48 2.55 2.54 2.57 Total assets 2.36 3.09 3.36 3.43 3.28 3.25 3.24 Deposits 1.62 2.06 2.47 2.6 2.51 2.25 2.08 19

IBCP - Strategic/Financial Initiatives 20 July 2008 IBCP cash dividend reduced to $0.01 per share (about $230,000 per quarter). 2Q '08 EPS exceeded the reduced cash dividend. Parent company liquidity - $11.2 million in cash at 6/30/08. Our bank subsidiary remains "well capitalized." Parent company tangible capital ratio was 5.00% at 6/30/08 (bank tangible capital ratio was 7.49% at 6/30/08). Deleveraging strategy initiated late in 2Q 2008. Strategic management of the balance sheet with an objective to reduce total assets by $300 million to $400 million over a longer time frame.

2nd Quarter 2008 Credit Review Stefanie M. Kimball, Executive Vice President and Chief Lending Officer 21

Commercial Lending Highlights Second Quarter, 2008 Strategic shift in target loan types, coupled with tighter underwriting criteria implemented in mid-2007 provide more diversified and higher quality new loans. Inflow of new watch loans continues to slow. Delinquency levels improve. Nonaccruals comprised primarily of commercial real estate loans which have a longer workout cycle. Nonaccruals written down by an average of 32%. Enhanced credit processes firmly in place to include Special Assets team which has collected $10 million year to date. 22

Total Commercial Loan Balances Increased Slightly in Second Quarter of 2008 23

Strategic Shift Towards C&I and Away From Certain CRE Segments Commenced in Mid 2007 24

High risk CRE categories represent a relatively small proportion of the total portfolio and already have a high percentage in the watch category 25

Growth in the Overall Level of Watch Credits Continued to Slow in the Second Quarter 2008 26

Commercial 30+ Delinquency Improves in the 2nd Quarter 2008 27

Commercial Non-Accruals Continued to Rise in the 2nd Quarter of 2008 28

Composition of Nonaccrual Loans 52% of Nonaccrual loans in Land, Land Development and Construction Average write-down to Nonaccrual: 32% Granularity of Commercial Nonaccruals: 29

Commercial Loan Net Charge-Offs Increased in the 2nd Quarter of 2008 30

Retail Lending Highlights Second Quarter, 2008 Tighter underwriting criteria was implemented in 2007 which is providing higher quality new loans. The 30+ delinquency rate for the mortgage portfolio improved in the 2nd quarter while consumer delinquencies increased. Bankruptcies have stayed fairly static from first to second quarter as we continue to face a tough Michigan economy. Retail non-performing assets continued to rise in the 2nd quarter. ORE properties are being sold via alternative channels to include our website, realtor networks, and auctions. Additional experienced collection staff added to the team. 31

Total Retail Loan Balances Decreased Slightly in 2nd Quarter of 2008 32

Retail 30 - 89 Day Delinquency in the 2nd Quarter 33

Retail Non-Performing Assets Continued to Rise in the 2nd Quarter 34

Total Retail Charge-Offs for 2nd Quarter of 2008 Declined from Levels Experienced in 4th Quarter 2007 35

Q & A Michael M. Magee Jr. President and Chief Executive Officer Robert N. Shuster Executive Vice President and Chief Financial Officer Stefanie M. Kimball Executive Vice President and Chief Lending Officer 36

Thank you for participating in the conference call. 37