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 27, 2017

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.)

4200 East Beltline Grand Rapids, Michigan	49525 (Zip Code)
(Address of principal executive office)

Registrant's telephone number,

including area code:

(616) 527-5820

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

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

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

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

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

Item 2.02. Results of Operations and Financial Condition

On July 27, 2017, Independent Bank Corporation issued a press release announcing its financial results for the quarter ended June 30, 2017.  A copy of the press release is attached as Exhibit 99.1.  Attached Exhibit 99.2 contains supplemental data to that press release and attached Exhibit 99.3 contains a slide presentation for our earnings conference call.

The information in this Form 8-K and the attached Exhibits shall not be deemed filed for purposes of Section 18 of the Securities Exchange 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 9.01. Financial Statements and Exhibits

Exhibits.

99.1 Press release dated July 27, 2017.

99.2 Supplemental data to the Registrant's press release dated July 27, 2017

99.3 Earnings conference call presentation.

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 27, 2017	By	s/Robert N. Shuster
		Robert N. Shuster, Principal Financial Officer

2

EX-99.1

Exhibit 99.1

News Release

Independent Bank Corporation

4200 East Beltline

Grand Rapids, MI 49525

616.527.5820

For Release:	Immediately
Contact:	William B. Kessel, President and CEO, 616.447.3933
	Robert N. Shuster, Chief Financial Officer, 616.522.1765

INDEPENDENT BANK CORPORATION REPORTS

2017 SECOND QUARTER RESULTS

GRAND RAPIDS, Mich., July 27, 2017 - Independent Bank Corporation (NASDAQ: IBCP) reported second quarter 2017 net income of $5.9 million, or $0.27 per diluted share, versus net income of $6.4 million, or $0.30 per diluted share, in the prior-year period. The decrease in second quarter 2017 results as compared to 2016 primarily reflects increases in the provision for loan losses and in non-interest and income tax expenses that were partially offset by increases in net interest income and in non-interest income.

For the six months ended June 30, 2017, the Company reported net income of $11.9 million, or $0.55 per diluted share, compared to net income of $10.5 million, or $0.48 per diluted share, in the prior-year period. The increase in 2017 year-to-date results as compared to 2016 is primarily due to increases in net interest income and non-interest income that were partially offset by increases in the provision for loan losses as well as in non-interest and income tax expenses.

Second quarter 2017 highlights include:

· A year-over-year increase in quarterly net interest income of $1.9 million, or 9.5%;

· A year-over-year increase in quarterly net gains on mortgage loans of $0.8 million, or 32.2%;

· Continued improvement in asset quality metrics with a $3.4 million, or 23.6%, decline in non-performing assets;

· Total portfolio loan net growth of $140.9 million, or 33.8% annualized;

· Closing on the sale of the Company’s payment plan processing business (Mepco Finance Corporation) and related assets in May 2017;

· A 2.8% increase in tangible book value per share to $12.22 at June 30, 2017 from $11.89 at Mar. 31, 2017; and

· The payment of a ten cent per share dividend on common stock on May 15, 2017.

The second quarter of 2017 included a $0.65 million ($0.02 per diluted share, after tax) decline in the fair value of capitalized mortgage loan servicing rights due to price. The second quarter of 2016 included a $0.65 million ($0.02 per diluted share, after tax) impairment charge on capitalized mortgage loan servicing rights as well as a $0.28 million income tax benefit ($0.01 per diluted share) resulting from the adoption of Financial Accounting Standards Board Accounting Standards Update 2016-09 “Compensation – Stock Compensation (718) Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”).

William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “Excluding the after-tax, two cent per diluted share, charge related to a decline in price of our capitalized mortgage loan servicing rights, our second quarter 2017 results met our expectations and included a provision for loan losses expense of $0.6 million. Strong loan origination activity led to significant loan growth, increased net interest income and a rise in net gains on mortgage loans. We were particularly pleased with the sequential quarterly growth in net interest income despite the impact of the sale of our high yielding payment plan receivables in May 2017 and a $0.36 million decline in interest recoveries on previously charged off or non-accrual loans. As we look ahead to the remainder of 2017 and beyond, we are focused on building on the momentum generated in the first half of 2017.”

1

Operating Results

The Company’s net interest income totaled $21.5 million during the second quarter of 2017, an increase of $1.9 million, or 9.5% from the year-ago period, and up slightly from the first quarter of 2017. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.60% during the second quarter of 2017, compared to 3.52% in the year-ago period, and 3.69% in the first quarter of 2017. The year-over-year quarterly increase in net interest income is due to increases in both average interest-earning assets and in the net interest margin. Average interest-earning assets were $2.42 billion in the second quarter of 2017, compared to $2.26 billion in the year ago quarter and $2.37 billion in the first quarter of 2017.

For the first six months of 2017, net interest income totaled $43.0 million, an increase of $3.6 million, or 9.0% from 2016. The Company’s net interest margin for the first six months of 2017 was 3.65% compared to 3.57% in 2016. The increase in net interest income for the first six months of 2017 is due to increases in both average interest-earning assets and in the net interest margin.

Non-interest income totaled $10.4 million and $20.8 million, respectively, for the second quarter and first six months of 2017, compared to $9.6 million and $17.4 million in the respective comparable year ago periods. These increases were primarily due to growth in net revenues from the Company’s mortgage banking activities (net gains on mortgage loans and net mortgage loan servicing income). Both service charges on deposit accounts and interchange income also grew year-over-year.

Net gains on mortgage loans were $3.3 million in the second quarter of 2017, compared to $2.5 million in the year-ago quarter. For the first six months of 2017, net gains on mortgage loans totaled $5.9 million compared to $4.2 million in 2016. Mortgage loan origination and sales volumes have increased in 2017 primarily due to the expansion of the Company’s mortgage banking operations (opening additional loan production offices) that principally occurred in the last quarter of 2016 and first quarter of 2017.

Mortgage loan servicing generated a loss of $0.2 million and $0.3 million in the second quarters of 2017 and 2016, respectively. For the first six months of 2017, mortgage loan servicing generated income of $0.7 million as compared to a loss of $1.3 million in 2016. This activity is summarized in the following table:

	Three Months Ended						Six Months Ended
	6/30/2017			6/30/2016			6/30/2017			6/30/2016
Mortgage loan servicing:	(Dollars in thousands)
Revenue, net	$	1,073		$	1,021		$	2,162		$	2,050
Fair value change due to price		(648	)		--			(503	)		--
Fair value change due to pay-downs		(583	)		--			(992	)		--
Amortization		--			(709	)		--			(1,266	)
Impairment (charge) recovery		--			(646	)		--			(2,096	)
Total	$	(158	)	$	(334	)	$	667		$	(1,312	)

Effective on Jan. 1, 2017, the Company adopted the fair value accounting method for capitalized mortgage loan servicing rights.

Non-interest expenses totaled $22.8 million in the second quarter of 2017, compared to $20.9 million in the year-ago period. For the first six months of 2017, non-interest expenses totaled $46.3 million versus $42.9 million in 2016. These year-over-year increases in non-interest expenses were primarily due to increases in compensation and employee benefits largely related to the aforementioned expansion of the Company’s mortgage banking operations.

The Company recorded an income tax expense of $2.7 million and $5.3 million in the second quarter and first six months of 2017, respectively. This compares to an income tax expense of $2.6 million and $4.6 million in the second quarter and first six months of 2016, respectively. The second quarter and year-to-date 2016 income tax expense was reduced by a credit of approximately $0.3 million due to the adoption of ASU 2016-09.

Asset Quality

Commenting on asset quality, President and CEO Kessel added: “We continue to make progress in further improving asset quality, as evidenced by declines in non-performing loans and assets. In addition, thirty- to eighty-nine day delinquency rates at June 30, 2017 were 0.03% for commercial loans and 0.52% for mortgage and consumer loans. These early stage delinquency rates continue to be well-managed.”

2

A breakdown of non-performing loans⁽¹⁾ by loan type is as follows:

Loan Type	6/30/2017			12/31/2016			6/30/2016
	(Dollars in thousands)
Commercial	$	754		$	5,163		$	3,710
Consumer/installment		754			907			905
Mortgage		7,034			7,294			6,264
Payment plan receivables		--			--			18
Total	$	8,542		$	13,364		$	10,897
Ratio of non-performing loans to total portfolio loans		0.47	%		0.83	%		0.69	%
Ratio of non-performing assets to total assets		0.41	%		0.72	%		0.67	%
Ratio of the allowance for loan losses to non-performing loans		241.00	%		151.41	%		208.42	%

(1) Excludes loans that are classified as “troubled debt restructured” that are still performing.

Non-performing loans have declined $4.8 million, or 36.1%, from Dec. 31, 2016. This decline primarily reflects the pay-off or liquidation of non-performing commercial loans. ORE and repossessed assets totaled $2.4 million at June 30, 2017, compared to $5.0 million at Dec. 31, 2016.

The provision for loan losses was an expense of $0.6 million and a credit of $0.7 million in the second quarters of 2017 and 2016, respectively. The provision for loan losses was an expense of $0.2 million and a credit of $1.3 million in the first six months of 2017 and 2016, 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 growth, loan mix, levels of non-performing and classified loans and loan net charge-offs. The Company recorded loan net charge-offs of $0.04 million (0.01% annualized of average loans) and loan net recoveries of $0.95 million (0.24% annualized of average loans) in the second quarters of 2017 and 2016, respectively. For the first six months of 2017 and 2016, the Company recorded loan net recoveries of $0.1 million (0.02% annualized of average loans) and $1.4 million (0.18% of average loans), respectively. The year-to-date change in 2017 was due primarily to a decline in recoveries of previously charged-off commercial loans. At June 30, 2017, the allowance for loan losses totaled $20.6 million, or 1.14% of portfolio loans, compared to $20.2 million, or 1.26% of portfolio loans, at Dec. 31, 2016.

Balance Sheet, Liquidity and Capital

Total assets were $2.67 billion at June 30, 2017, an increase of $116.4 million from Dec. 31, 2016. Loans, excluding loans held for sale, were $1.81 billion at June 30, 2017, compared to $1.61 billion at Dec. 31, 2016.

Deposits totaled $2.25 billion at June 30, 2017, an increase of $20.5 million from Dec. 31, 2016. The increase in deposits is primarily due to growth in checking, savings and brokered deposit account balances that was partially offset by a decline in time deposits.

Cash and cash equivalents totaled $59.8 million at June 30, 2017, versus $83.2 million at Dec. 31, 2016. Securities available for sale totaled $583.7 million at June 30, 2017, versus $610.6 million at Dec. 31, 2016.

Total shareholders’ equity was $262.5 million at June 30, 2017, or 9.85% of total assets. Tangible common equity totaled $260.7 million at June 30, 2017, or $12.22 per share. The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:

Regulatory Capital Ratios	6/30/2017		12/31/2016		Well Capitalized Minimum
Tier 1 capital to average total assets		9.93%		9.90%		5.00%
Tier 1 common equity to risk-weighted assets		13.26%		13.87%		6.50%
Tier 1 capital to risk-weighted assets		13.26%		13.87%		8.00%
Total capital to risk-weighted assets		14.37%		15.02%		10.00%

Share Repurchase Plan

As previously announced, on Jan. 23, 2017, the Board of Directors of the Company authorized a share repurchase plan. Under the terms of the 2017 share repurchase plan, the Company is authorized to buy back up to 5% of its outstanding common stock. The repurchase plan is authorized to last through Dec. 31, 2017. Thus far in 2017, the Company has not repurchased any shares.

3

Earnings Conference Call

Brad Kessel, President and CEO, and Rob Shuster, CFO, will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, July 27, 2017.

To participate in the live conference call, please dial 1-866-200-8394. Also the conference call will be accessible through an audio webcast with user-controlled slides via the following event site/URL: http://services.choruscall.com/links/ibcp170727.html.

A playback of the call can be accessed by dialing 1-877-344-7529 (Conference ID # 10109901). The replay will be available through Aug. 3, 2017.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $2.7 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network 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 insurance. 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 “anticipates,” “believes,” “contemplates,” “feels,” “expects,” “estimates,” “seeks,” “strives,” “plans,” “intends,” “outlook,” “forecast,” “position,” “target,” “mission,” “assume,” “achievable,” “potential,” “strategy,” “goal,” “aspiration,” “opportunity,” “initiative,” “outcome,” “continue,” “remain,” “maintain,” “on course,” “trend,” “objective,” “looks forward” and variations of such words and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, as they relate to Independent Bank Corporation or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Independent Bank Corporation's management 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 Independent Bank Corporation's revenue, earnings or other measures of economic performance, including statements about profitability, business lines and subsidiaries, and estimates of credit trends. Such statements reflect the view of Independent Bank Corporation's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Independent Bank Corporation's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, political or industry conditions; changes in monetary and fiscal policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in capital and credit markets; the interdependence of financial service companies; changes in regulation or oversight; unfavorable developments concerning credit quality; any future acquisitions or divestitures; the effects of more stringent capital or liquidity requirements; declines or other changes in the businesses or industries of Independent Bank Corporation's customers; the implementation of Independent Bank Corporation's strategies and business models; Independent Bank Corporation's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; operational difficulties, failure of technology infrastructure or information security incidents; changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; competitive product and pricing pressures among financial institutions within Independent Bank Corporation's markets; changes in customer behavior; management's ability to maintain and expand customer relationships; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings or determinations; the effectiveness of methods of reducing risk exposures; the effects of terrorist activities and other hostilities; the effects of catastrophic events; changes in accounting standards and the critical nature of Independent Bank Corporation's accounting policies. Independent Bank Corporation cautions that the foregoing list of factors is not exclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to “Item 1A. Risk Factors” in Independent Bank Corporation's Annual Report on Form 10-K for the year ended December 31, 2016. Forward-looking statements speak only as of the date they are made. Independent Bank Corporation does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward looking statements are made. For any forward-looking statements made in this news release or in any documents, Independent Bank Corporation claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

4

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Condition

	June 30, 2017			December 31, 2016
	(unaudited)
	(In thousands, except share amounts)
Assets
Cash and due from banks	$	35,513		$	35,238
Interest bearing deposits		24,255			47,956
Cash and Cash Equivalents		59,768			83,194
Interest bearing deposits - time		5,339			5,591
Trading securities		286			410
Securities available for sale		583,725			610,616
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		15,543			15,543
Loans held for sale, carried at fair value		45,693			35,946
Payment plan receivables and other assets held for sale		-			33,360
Loans
Commercial		828,778			804,017
Mortgage		674,499			538,615
Installment		308,400			265,616
Total Loans		1,811,677			1,608,248
Allowance for loan losses		(20,586	)		(20,234	)
Net Loans		1,791,091			1,588,014
Other real estate and repossessed assets		2,368			5,004
Property and equipment, net		39,356			40,175
Bank-owned life insurance		54,003			54,033
Deferred tax assets, net		25,201			32,818
Capitalized mortgage loan servicing rights		14,515			13,671
Vehicle service contract counterparty receivables, net		2,091			2,271
Other intangibles		1,759			1,932
Accrued income and other assets		24,629			26,372
Total Assets	$	2,665,367		$	2,548,950
Liabilities and Shareholders' Equity
Deposits
Non-interest bearing	$	720,713		$	717,472
Savings and interest-bearing checking		1,035,469			1,015,724
Reciprocal		46,612			38,657
Time		410,136			453,866
Brokered time		33,289			-
Total Deposits		2,246,219			2,225,719
Other borrowings		85,524			9,433
Subordinated debentures		35,569			35,569
Other liabilities held for sale		-			718
Accrued expenses and other liabilities		35,602			28,531
Total Liabilities		2,402,914			2,299,970
Shareholders’ Equity
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding		-			-
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 21,334,740 shares at June 30, 2017 and 21,258,092 shares at December 31, 2016		324,231			323,745
Accumulated deficit		(57,966	)		(65,657	)
Accumulated other comprehensive loss		(3,812	)		(9,108	)
Total Shareholders’ Equity		262,453			248,980
Total Liabilities and Shareholders’ Equity	$	2,665,367		$	2,548,950

5

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2017			2017			2016			2017			2016
	(unaudited)
Interest Income	(In thousands, except per share amounts)
Interest and fees on loans	$	19,949		$	19,858		$	18,208		$	39,807		$	36,764
Interest on securities
Taxable		2,781			2,754			2,480			5,535			4,724
Tax-exempt		511			455			282			966			530
Other investments		292			312			297			604			603
Total Interest Income		23,533			23,379			21,267			46,912			42,621
Interest Expense
Deposits		1,478			1,443			1,152			2,921			2,266
Other borrowings		563			470			485			1,033			962
Total Interest Expense		2,041			1,913			1,637			3,954			3,228
Net Interest Income		21,492			21,466			19,630			42,958			39,393
Provision for loan losses		583			(359	)		(734	)		224			(1,264	)
Net Interest Income After Provision for Loan Losses		20,909			21,825			20,364			42,734			40,657
Non-interest Income
Service charges on deposit accounts		3,175			3,009			3,038			6,184			5,883
Interchange income		2,005			1,922			1,976			3,927			3,854
Net gains (losses) on assets
Mortgage loans		3,344			2,571			2,529			5,915			4,171
Securities		(34	)		27			185			(7	)		347
Mortgage loan servicing, net		(158	)		825			(334	)		667			(1,312	)
Title insurance fees		323			264			253			587			541
Other		1,791			1,721			1,933			3,512			3,905
Total Non-interest Income		10,446			10,339			9,580			20,785			17,389
Non-Interest Expense
Compensation and employee benefits		13,380			14,147			12,000			27,527			23,881
Occupancy, net		1,920			2,142			1,856			4,062			4,063
Data processing		1,937			1,937			1,936			3,874			4,037
Furniture, fixtures and equipment		1,005			977			965			1,982			1,949
Communications		678			683			722			1,361			1,610
Loan and collection		670			413			571			1,083			1,396
Advertising		519			506			478			1,025			955
Legal and professional		389			437			345			826			758
Interchange expense		292			283			267			575			533
FDIC deposit insurance		202			198			331			400			665
Credit card and bank service fees		136			191			198			327			385
Net (gains) losses on other real estate and repossessed assets		91			11			(159	)		102			(165	)
Other		1,542			1,644			1,385			3,186			2,873
Total Non-interest Expense		22,761			23,569			20,895			46,330			42,940
Income Before Income Tax		8,594			8,595			9,049			17,189			15,106
Income tax expense		2,663			2,621			2,611			5,284			4,568
Net Income	$	5,931		$	5,974		$	6,438		$	11,905		$	10,538
Net Income Per Common Share
Basic	$	0.28		$	0.28		$	0.30		$	0.56		$	0.49
Diluted	$	0.27		$	0.28		$	0.30		$	0.55		$	0.48

6

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Selected Financial Data

	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
	(unaudited)
	(dollars in thousands except per share data)
Three Months Ended
Net interest income	$	21,492		$	21,466		$	20,250		$	19,998		$	19,630
Provision for loan losses		583			(359	)		130			(175	)		(734	)
Non-interest income		10,446			10,339			13,201			11,708			9,580
Non-interest expense		22,761			23,569			24,878			22,529			20,895
Income before income tax		8,594			8,595			8,443			9,352			9,049
Income tax expense		2,663			2,621			2,588			2,979			2,611
Net income	$	5,931		$	5,974		$	5,855		$	6,373		$	6,438
Basic earnings per share	$	0.28		$	0.28		$	0.28		$	0.30		$	0.30
Diluted earnings per share		0.27			0.28			0.27			0.30			0.30
Cash dividend per share		0.10			0.10			0.10			0.08			0.08
Average shares outstanding		21,331,363			21,308,396			21,248,343			21,232,252			21,280,926
Average diluted shares outstanding		21,646,941			21,638,768			21,587,283			21,548,647			21,639,077
Performance Ratios
Return on average assets		0.92	%		0.95	%		0.91	%		1.02	%		1.06	%
Return on average common equity		9.15			9.63			9.29			10.20			10.66
Efficiency ratio (1)		70.29			73.29			74.19			70.25			71.27
As a Percent of Average Interest-Earning Assets (1)
Interest income		3.94	%		4.02	%		3.77	%		3.81	%		3.81	%
Interest expense		0.34			0.33			0.32			0.30			0.29
Net interest income		3.60			3.69			3.45			3.51			3.52
Average Balances
Loans	$	1,782,953		$	1,690,003		$	1,655,222		$	1,616,681		$	1,577,026
Securities available for sale		592,594			599,451			605,781			593,013			591,648
Total earning assets		2,423,283			2,371,705			2,365,517			2,294,644			2,258,536
Total assets		2,598,605			2,559,487			2,549,108			2,482,002			2,447,910
Deposits		2,239,605			2,233,853			2,223,446			2,158,987			2,131,788
Interest bearing liabilities		1,595,984			1,574,306			1,547,856			1,499,932			1,506,335
Shareholders' equity		260,095			251,566			250,735			248,678			242,800
End of Period
Capital
Tangible common equity ratio		9.79	%		9.78	%		9.70	%		9.81	%		9.99	%
Average equity to average assets		10.01			9.83			9.84			10.02			9.92
Tangible book value per share	$	12.22		$	11.89		$	11.62		$	11.72		$	11.49
Total shares outstanding		21,334,740			21,327,796			21,258,092			21,227,974			21,315,881
Selected Balances
Loans	$	1,811,677		$	1,670,747		$	1,608,248		$	1,607,354		$	1,582,122
Securities available for sale		583,725			608,964			610,616			603,112			599,755
Total earning assets		2,486,518			2,411,369			2,355,703			2,347,072			2,264,079
Total assets		2,665,367			2,596,482			2,548,950			2,538,319			2,452,696
Deposits		2,246,219			2,263,059			2,225,719			2,206,960			2,128,292
Interest bearing liabilities		1,646,599			1,597,417			1,553,249			1,528,890			1,497,169
Shareholders' equity		262,453			255,475			248,980			250,902			246,923

(1) Presented on a fully tax equivalent basis assuming a marginal tax rate of 35%

7

EX-99.2

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets ⁽¹⁾

	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
	(Dollars in thousands)
Non-accrual loans	$	8,542		$	9,014		$	13,364		$	10,801		$	10,803
Loans 90 days or more past due and still accruing interest		-			-			-			-			94
Total non-performing loans		8,542			9,014			13,364			10,801			10,897
Other real estate and repossessed assets		2,368			5,257			5,004			4,989			5,572
Total non-performing assets	$	10,910		$	14,271		$	18,368		$	15,790		$	16,469
As a percent of Portfolio Loans
Non-performing loans		0.47	%		0.54	%		0.83	%		0.67	%		0.69	%
Allowance for loan losses		1.14			1.20			1.26			1.37			1.44
Non-performing assets to total assets		0.41			0.55			0.72			0.62			0.67
Allowance for loan losses as a percent of non-performing loans		241.00			222.30			151.41			204.08			208.42

⁽¹⁾ Excludes loans classified as "trouble debt restructured" that are not past due and vehicle service contract counterparty receivables, net.

Troubled debt restructurings ("TDR")

	June 30, 2017
	Commercial		Retail			Total
	(In thousands)
Performing TDR's	$	10,551	$	56,100		$	66,651
Non-performing TDR's(1)		492		4,184	(2)		4,676
Total	$	11,043	$	60,284		$	71,327

	December 31, 2016
	Commercial		Retail			Total
		(In thousands)
Performing TDR's	$	10,560	$	59,726		$	70,286
Non-performing TDR's(1)		3,565		4,071	(2)		7,636
Total	$	14,125	$	63,797		$	77,922

(1) Included in non-performing assets table above.

(2) Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.

1

Allowance for loan losses

	Six months ended June 30,
	2017					2016
	Loans			Unfunded Commitments		Loans			Unfunded Commitments
	(Dollars in thousands)
Balance at beginning of period	$	20,234		$	650	$	22,570		$	652
Additions (deductions)
Provision for loan losses		224			-		(1,264	)		-
Recoveries credited to allowance		1,786			-		2,718			-
Loans charged against the allowance		(1,658	)		-		(1,312	)		-
Additions (deductions) included in non-interest expense		-			240		-			(67	)
Balance at end of period	$	20,586		$	890	$	22,712		$	585
Net loans charged against the allowance to average Portfolio Loans		(0.02	)%				(0.18	)%

Capitalization

	June 30, 2017			December 31, 2016
	(In thousands)
Subordinated debentures	$	35,569		$	35,569
Amount not qualifying as regulatory capital		(1,069	)		(1,069	)
Amount qualifying as regulatory capital		34,500			34,500
Shareholders’ equity
Common stock		324,231			323,745
Accumulated deficit		(57,966	)		(65,657	)
Accumulated other comprehensive loss		(3,812	)		(9,108	)
Total shareholders’ equity		262,453			248,980
Total capitalization	$	296,953		$	283,480

2

Non-Interest Income

	Three months ended								Six months ended
	June 30, 2017			March 31, 2017		June 30, 2016			June 30,
									2017			2016
	(In thousands)
Service charges on deposit accounts	$	3,175		$	3,009	$	3,038		$	6,184		$	5,883
Interchange income		2,005			1,922		1,976			3,927			3,854
Net gains (losses) on assets
Mortgage loans		3,344			2,571		2,529			5,915			4,171
Securities		(34	)		27		185			(7	)		347
Mortgage loan servicing, net		(158	)		825		(334	)		667			(1,312	)
Investment and insurance commissions		467			468		384			935			851
Bank owned life insurance		240			253		298			493			588
Title insurance fees		323			264		253			587			541
Other		1,084			1,000		1,251			2,084			2,466
Total non-interest income	$	10,446		$	10,339	$	9,580		$	20,785		$	17,389

Capitalized Mortgage Loan Servicing Rights

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Balance at beginning of period	$	14,727		$	10,983		$	13,671		$	12,436
Change in accounting		-			-			542			-
Balance at beginning of period, as adjusted	$	14,727		$	10,983		$	14,213		$	12,436
Originated servicing rights capitalized		1,019			703			1,797			1,257
Amortization		-			(709	)		-			(1,266	)
Change in valuation allowance		-			(646	)		-			(2,096	)
Change in fair value		(1,231	)		-			(1,495	)		-
Balance at end of period	$	14,515		$	10,331		$	14,515		$	10,331
Valuation allowance at end of period	$	-		$	5,368		$	-		$	5,368

3

Mortgage Loan Activity

	Three months ended									Six months ended
	June 30, 2017			March 31, 2017			June 30, 2016			June 30,
										2017			2016
	(Dollars in thousands)
Mortgage loans originated	$	235,087		$	158,081		$	91,966		$	393,168		$	165,468
Mortgage loans sold		104,714			79,691			70,479			184,405			126,145
Net gains on mortgage loans		3,344			2,571			2,529			5,915			4,171
Net gains as a percent of mortgage loans sold ("Loan Sales Margin")		3.19	%		3.23	%		3.59	%		3.21	%		3.31	%
Fair value adjustments included in the Loan Sales Margin		0.32			0.20			0.34			0.27			0.30

Non-Interest Expense

	Three months ended							Six months ended
	June 30, 2017		March 31, 2017		June 30, 2016			June 30,
								2017		2016
	(In thousands)
Compensation	$	8,707	$	9,672	$	7,972		$	18,379	$	16,045
Performance-based compensation		2,138		1,993		1,875			4,131		3,557
Payroll taxes and employee benefits		2,535		2,482		2,153			5,017		4,279
Compensation and employee benefits		13,380		14,147		12,000			27,527		23,881
Occupancy, net		1,920		2,142		1,856			4,062		4,063
Data processing		1,937		1,937		1,936			3,874		4,037
Furniture, fixtures and equipment		1,005		977		965			1,982		1,949
Communications		678		683		722			1,361		1,610
Loan and collection		670		413		571			1,083		1,396
Advertising		519		506		478			1,025		955
Legal and professional fees		389		437		345			826		758
Interchange expense		292		283		267			575		533
FDIC deposit insurance		202		198		331			400		665
Supplies		159		172		197			331		373
Credit card and bank service fees		136		191		198			327		385
Costs (recoveries) related to unfunded lending commitments		130		110		(80	)		240		(67	)
Amortization of intangible assets		86		87		87			173		174
Net (gains) losses on other real estate and repossessed assets		91		11		(159	)		102		(165	)
Provision for loss reimbursement on sold loans		20		31		-			51		(15	)
Other		1,147		1,244		1,181			2,391		2,408
Total non-interest expense	$	22,761	$	23,569	$	20,895		$	46,330	$	42,940

4

Average Balances and Tax Equivalent Rates

	Three Months Ended June 30,
	2017							2016
	Average Balance		Interest		Rate (2)			Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	1,779,916	$	19,919		4.49	%	$	1,573,471	$	18,173		4.64	%
Tax-exempt loans (1)		3,037		46		6.08			3,555		55		6.22
Taxable securities		503,863		2,781		2.21			541,557		2,480		1.83
Tax-exempt securities (1)		88,731		783		3.53			50,091		432		3.45
Interest bearing cash		32,193		53		0.66			74,384		100		0.54
Other investments		15,543		239		6.17			15,478		197		5.12
Interest Earning Assets		2,423,283		23,821		3.94			2,258,536		21,437		3.81
Cash and due from banks		30,649							34,515
Other assets, net		144,673							154,859
Total Assets	$	2,598,605						$	2,447,910
Liabilities
Savings and interest-bearing checking	$	1,058,768		316		0.12		$	1,027,913		277		0.11
Time deposits		468,705		1,162		0.99			430,955		875		0.82
Other borrowings		68,511		563		3.30			47,467		485		4.11
Interest Bearing Liabilities		1,595,984		2,041		0.51			1,506,335		1,637		0.44
Non-interest bearing deposits		712,132							672,920
Other liabilities		30,394							25,855
Shareholders’ equity		260,095							242,800
Total liabilities and shareholders’ equity	$	2,598,605						$	2,447,910
Net Interest Income			$	21,780						$	19,800
Net Interest Income as a Percent of Average Interest Earning Assets						3.60	%						3.52	%

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

(2) Annualized

5

Average Balances and Tax Equivalent Rates

	Six Months Ended June 30,
	2017							2016
	Average Balance		Interest		Rate (2)			Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	1,733,225	$	39,743		4.61	%	$	1,559,807	$	36,693		4.72	%
Tax-exempt loans (1)		3,549		98		5.57			3,601		110		6.14
Taxable securities		512,586		5,535		2.16			531,695		4,724		1.78
Tax-exempt securities (1)		83,417		1,481		3.55			46,036		813		3.53
Interest bearing cash		49,356		166		0.68			77,910		206		0.53
Other investments		15,543		438		5.68			15,512		397		5.15
Interest Earning Assets		2,397,676		47,461		3.98			2,234,561		42,943		3.86
Cash and due from banks		32,212							39,841
Other assets, net		149,306							159,979
Total Assets	$	2,579,194						$	2,434,381
Liabilities
Savings and interest- bearing checking	$	1,052,973		599		0.11		$	1,021,015		547		0.11
Time deposits		475,409		2,322		0.98			433,449		1,719		0.80
Other borrowings		56,823		1,033		3.67			47,495		962		4.07
Interest Bearing Liabilities		1,585,205		3,954		0.50			1,501,959		3,228		0.43
Non-interest bearing deposits		708,363							663,168
Other liabilities		29,772							24,811
Shareholders’ equity		255,854							244,443
Total liabilities and shareholders’ equity	$	2,579,194						$	2,434,381
Net Interest Income			$	43,507						$	39,715
Net Interest Income as a Percent of Average Interest Earning Assets						3.65	%						3.57	%

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

(2) Annualized

6

Reconciliation of Net Interest Margin, Fully Taxable Equivalent ("FTE")

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(Dollars in thousands)						(Dollars in thousands)
Net interest income	$	21,492		$	19,630		$	42,958		$	39,393
Add: taxable equivalent adjustment		288			170			549			322
Net interest income - taxable equivalent	$	21,780		$	19,800		$	43,507		$	39,715
Net interest margin (GAAP) (1)		3.56	%		3.50	%		3.61	%		3.55	%
Net interest margin (FTE) (1)		3.60	%		3.52	%		3.65	%		3.57	%

(1) Annualized

Commercial Loan Portfolio Analysis as of June 30, 2017

	Total Commercial Loans
			Watch Credits						Percent of Loan
Loan Category	All Loans		Performing		Non- performing		Total		Category in Watch Credit
	(Dollars in thousands)
Land	$	6,073	$	64	$	10	$	74		1.2	%
Land Development		4,122		-		-		-		0.0
Construction		48,002		-		-		-		0.0
Income Producing		279,480		3,647		202		3,849		1.4
Owner Occupied		275,716		8,318		147		8,465		3.1
Total Commercial Real Estate Loans	$	613,393	$	12,029		359	$	12,388		2.0
Other Commercial Loans	$	215,385	$	8,080		395	$	8,475		3.9
Total non-performing commercial loans					$	754

7

EX-99.3

Exhibit 99.3

  2  Cautionary Note Regarding Forward-Looking Statements  This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements of goals, intentions, and expectations as to future trends, plans, events, or results of Independent Bank Corporation’s operations and policies, including, but not limited to, Independent Bank Corporation’s outlook on earnings and the sufficiency of the allowance for loan losses, and statements regarding asset quality, projections of future revenue, earnings or other measures of economic performance, Independent Bank Corporation’s plans and expectations regarding non-performing assets, business opportunities, and general economic conditions. Forward-looking statements include expressions such as “will,” “may,” “should,” “believe,” “expect,” “forecast,” “anticipate,” “estimate,” “project,” “intend,” “likely,” “optimistic” and “plan,” and similar words or phrases, which are necessarily statements of belief as to expected outcomes of future events. These statements are based on current and anticipated economic conditions, nationally and in Independent Bank Corporation’s markets, interest rates and interest rate policy, competitive factors, and other conditions which by their nature are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this presentation and the forward-looking statements are based, actual future operations and results may differ materially from those indicated in this presentation. For a discussion of certain factors, risks and uncertainties which could cause actual future operations and results to differ from estimates and projections discussed in these forward-looking statements, please read the “Risk Factors” section in Independent Bank Corporation’s 2016 Annual Report on Form 10-K. You should not place undue reliance on any such forward-looking statement. These forward-looking statements are not guarantees of future performance. Independent Bank Corporation does not undertake to publicly revise or update forward-looking statements in this presentation to reflect events or circumstances that arise after the date of this presentation. 

  3   Agenda  Formal Remarks.William B. (Brad) Kessel, President and Chief Executive OfficerRobert N. Shuster, Executive Vice President and Chief Financial OfficerQuestion and Answer session.Closing Remarks.Note: This presentation is available at www.IndependentBank.com in the Investor Relations area under the “Presentations” tab. 

  4   Quarterly Financial Summary    2Q’17  1Q’17  4Q’16  3Q’16  2Q’16  Diluted EPS  $ 0.27  $ 0.28  $ 0.27  $ 0.30  $ 0.30  Income before taxes   $ 8,594  $ 8,595  $ 8,443  $ 9,352  $ 9,049  Net income  $ 5,931  $ 5,974  $ 5,855  $ 6,373  $ 6,438  Return on average assets  0.92%  0.95%  0.91%  1.02%  1.06%  Return on average equity  9.15%  9.63%  9.29%  10.20%  10.66%  Total assets  $2,665,367  $2,596,482  $2,548,950  $2,538,319  $2,452,696  Total portfolio loans  $1,811,677  $1,670,747  $1,608,248  $1,607,354  $1,582,122  Total deposits  $2,246,219  $2,263,059  $2,225,719  $2,206,960  $2,128,292  Loans to deposits ratio  80.65%  73.83%  72.26%  72.83%  74.34%  Shareholders’ equity  $ 262,453  $ 255,475  $ 248,980  $ 250,902  $ 246,923  Tangible BV per share  $ 12.22  $ 11.89  $ 11.62  $ 11.72  $ 11.49  TCE to tangible assets   9.79%  9.78%  9.70%  9.81%  9.99%  Note: Dollars in thousands, except per share data. 

  5  2Q 2017 Financial Highlights  Income StatementNet income of $5.9 million, or $0.27 per diluted share. FV decline in MSRs due to price of $0.6 million ($0.4 million after tax, or $0.02 per diluted share). Net interest income of $21.5 million, up $1.9 million, or 9.5%, from the year ago quarter.$0.6 million loan loss provision expense (compared to a credit of $0.7 million in year ago quarter). Provision expense driven primarily by portfolio loan growth.Year-over-year increases in both service charges on deposits and interchange income.Gains on mortgage loans of $3.3 million, up $0.8 million, or 32.2% from the year ago quarter.Balance Sheet/CapitalTotal portfolio loans grew $140.9 million, or 33.8% annualized. Significant improvement in asset quality metrics with NPAs down 23.6% in 2Q’17.Deposits totaled $2.25 billion at 06/30/17 compared to $2.23 billion at 12/31/16 and $2.13 billion at 06/30/16. Year-over-year growth of $80.3 million, or 4.8%, in checking and savings account deposit balances.No share repurchases in first six months of 2017. TBV per share increased to $12.22 at 06/30/17 from $11.89 at 03/31/17.Paid a ten cent per share cash dividend on common stock on 05/15/17. 

  6   YTD Financial Summary    6ME 6/30/17  6ME 6/30/16  6ME 6/30/15  6ME 6/30/14  Net interest income  $ 42,958   $ 39,393  $ 36,792  $ 37,016  Income before taxes   $ 17,189  $ 15,106  $ 13,804  $ 12,504  Net income  $ 11,905  $ 10,538  $ 9,400  $ 9,190  Diluted EPS  $ 0.55  $ 0.48  $ 0.40  $ 0.39  Return on average assets, annualized  0.93%  0.87%  0.83%  0.83%  Return on average equity, annualized  9.38%  8.67%  7.46%  7.81%  Note: Dollars in thousands, except per share data.  2017 YTD net interest income increased $3.6 million, or 9.0%.2017 YTD net income increased $1.4 million, or 13.0%.2017 YTD diluted EPS increased $0.07, or 14.6%.2017 YTD ROA and ROE (annualized) both improved. 

 7  Our Michigan Markets  U.S. Branches: Current Ownership (63)     U.S. LPO’s: Current Ownership (12)(Columbus and Fairlawn, Ohio Not Shown)     Since 2012, substantial changes have been implemented to streamline and optimize our branch delivery network.Significant market presence and opportunity to gain market share in attractive Michigan markets. Michigan’s unemployment rate was 4.2% in May 2017 (0.6% lower than one year ago and 0.1% below the May 2017 U.S. unemployment rate of 4.3%).Michigan payroll jobs totaled 4.419 million in May 2017 (73K higher than one year ago).S&P/Case-Shiller MI Detroit Home Price Index up 7.35% year over year (April 2017 vs. April 2016). 

 Our Markets – Regional  Region  Cities  Branches  06/30/17Portfolio Loans(1)  % ofLoans(1)  06/30/17Deposits(3)  % of Deposits(3)  06/30/16 Portfolio Loans(2)  06/30/16 Deposits(3)  East / “Thumb”  Bay City / Saginaw  23  $ 347  21%  $ 742  35%  $ 317  $ 714  West  Grand Rapids / Ionia  22  632  38%  694  33%  543  610  Central  Lansing  11  210  12%  336  16%  205  359  Southeast(4)  Troy  7  491  29%  344  16%  348  338  Total    63  $1,680  100%  $2,116  100%  $1,413  $2,021  Note: Dollars are in millions.Loans exclude those related to resort lending ($96 million) and purchased mortgage loans ($36 million).Loans exclude those related to resort lending ($109 million), payment plan receivables ($31 million) and purchased mortgage loans ($29 million). Deposits exclude reciprocal deposits, brokered deposits and certain other “non-market” deposits.6/30/17 total portfolio loans include approximately $33 million from Ohio.  8 

  9  Low Cost Deposit Franchise Focused on Core Deposit Growth  Deposit Highlights$2.25 billion in total deposits at 06/30/17.Substantially all core funding.$1.77 billion of transaction accounts (78.8% of total deposits).Total deposits increased $84.6 million, or 4.0% since 06/30/16 (excluding $33.3 million of brokered deposits at 6/30/17).Average deposits per branch of $35.1 million at 06/30/17 vs. $20.2 million at 12/31/11 (an increase of 73.8%).2017 focus:Commercial – small to middle market business and public funds.Treasury management services.Retail – checking accounts and debit card services.  Deposit Composition – 06/30/17  Cost of Deposits (%)/Total Deposits (billions) 

 Diversified Loan PortfolioFocused on High Quality Growth  Lending Highlights13 consecutive quarters of net loan growth.$1.857 billion in total loans at 06/30/17 (including $45.7 million of loans held for sale).2Q 2017 lending results include:Commercial loan net growth of $13.3 million, or 6.5% annualized.Consumer installment loan net growth of $34.2 million, or 50.0% annualized.Portfolio mortgage loan net growth of $93.5 million, or 64.5% annualized. 2Q’17 mortgage loan origination volume up 155.6% over 2Q’17.2017 focus:Commercial – businesses with $1 million to $50 million in annual sales.Consumer – through branch network, internet and indirect channels.Residential mortgage – purchase money (both salable and portfolio) and QRM and home equity lending opportunities.   Loan Composition – 06/30/17  Yield on Loans (%)/Total Portfolio Loans (billions)   10 

  11  Strong Capital PositionFocused on Shareholder Return  HighlightsPrudent capital management. Target TCE ratio – 9.50% to 10.50% near-term and 8.50% to 9.50% longer-term. Priorities are: (A) capital retention to support (1) organic growth and (2) acquisitions; and (B) return of capital through (1) strong and consistent dividend and (2) share repurchases.2017 share repurchase plan approved for up to 5% of outstanding common shares. During 2016, 1.15 million shares were repurchased; and since the start of 2015, 2.12 million shares have been repurchased.Bank retained earnings returned to a positive figure in 3Q’16 permitting resumption of quarterly dividends to parent company ($5.0 million of dividends were paid in each of June and January 2017 and October 2016). Bank retained earnings were a positive $11.8 million at 6/30/17.Quarterly cash dividend rate increased by 25% to ten cents per share effective 11/15/16.Goals of 1% ROA or better and 10% ROE or better.  Note: ROA and ROE represent a four quarter rolling average.  ROA, ROE and TCE Ratio 

 12  Net Interest Margin/Income  HighlightsInterest rate sensitivity profile of the loan and securities portfolios, in combination with a low cost core deposit base, positions us to benefit from a rising interest rate environment.Net interest income increased slightly in 2Q’17 vs. 1Q’17 due primarily to a $51.6 million increase in average interest-earning assets that was largely offset by a nine basis point decrease in the net interest margin.Original 2017 goal was to grow net interest income by approximately 3% over 2016 as average loans increase (partially offset by sale of payment plan receivables). Now expect full year 2017 net interest income to grow by a high single-digit percentage over 2016. Starting to see some pressure on deposit rates due to the 0.25% bumps in the target federal funds rate in March and June 2017 and December 2016.   Net Interest Margin (TE)(%)  Net Interest Income ($ in Millions)  

 13  Net Interest Income and Net Interest Margin Details  Summary2Q’17 net interest income of $21.492 million, up $26K from 1Q’17. The linked quarter increase was due to a $91K increase in interest income and fees on loans and a $63K increase in interest income on securities and investments. This was partially offset by a $128K increase in interest expense on deposits and borrowings. The increase in interest income and fees on loans was due to an increase in average balance that was partially offset by declines in interest recoveries (net) on previously charged-off or non-accrual loans of $367K and a decrease in commercial loan prepayment fees of $252K. One more day in the quarter increased net interest income by $121K net. The tax equivalent net interest margin (NIM) decreased 9 bps (3.60% vs. 3.69%) due to an 8 bps decrease in the yield on interest earning assets and a 1 bps increase in the cost of funds (interest expense as a percentage of average interest-earning assets). Average yield on new/renewed commercial loans was 4.84% on fixed rate (47.0% of production) and 4.32% on variable rate (53.0% of production), 2Q’17 volume of $71.5 million with an estimated average duration of 1.7 years. Average yield on new retail loans (mortgage and consumer installment) was 4.08%, 2Q’17 volume of $191 million with an estimated average duration of 3.8 years.Loan Portfolio DetailsCommercial loans: Interest income decreased $205K due to a 24 bps decrease in the average yield (4.63% vs. 4.87%) that was partially offset by a $14.5 million increase in the average balance and one more day in the quarter ($105K impact). Interest recoveries (net) and prepayment fees decreased by $268K and $252K, respectively. This decreased the average yield by 25 bps. Mortgage loans (includes loans held for sale): Interest income increased $771K due to a $72.5 million increase in the average balance and a 1 bps increase in the average yield (4.20% vs. 4.19%) . Interest recoveries (net) decreased by $100K, this decreased the average yield by 6 bps.Consumer installment loans: Interest income increased $177K due to a $20.0 million increase in the average balance and one more day in the quarter ($35K impact) that were partially offset by a 12 bps decrease in the average yield (4.55% vs. 4.67%). Interest recoveries (net) increased by $1K (negligible impact on average yield).Payment plan receivables: Interest income decreased $652K due to a $14.1 million decrease in the average balance and a 492 bps decrease in the average yield (7.55% vs. 12.47%). The big decrease in average yield was due to an effective sale date of 5/1/17 on payment plan receivables, but funding did not occur until 5/18/17. Other FactorsSecurities and investments: Interest income increased $63K due to a 20 bps increase in the average TE yield (2.41% vs. 2.21%) and one more day in the quarter ($3K impact) that were partially offset by a $41.4 million decrease in average balance.Deposits and borrowings: Interest expense increased $128K due to a $21.7 million increase in the average balance of interest-bearing liabilities, a 2 basis point increase in the average cost of interest-bearing liabilities (0.51% vs. 0.49%), and one more day in the quarter ($22K impact).   Analysis of Linked Quarter Increase 

 14  Non-interest Income  HighlightsDiverse sources of non-interest income which totaled $10.4 million in 2Q’17.2Q’17 total non-interest income represents approximately 32.7% of total revenue (net interest income and non-interest income).Service charges on deposits have recently stabilized after previous longer-term decline.2Q’17 interchange revenue up $0.03 million, or 1.5%, compared to 2Q’16 due primarily to increased transaction volume.2Q’17 gains on mortgage loans totaled $3.3 million, up $0.8 million, or 32.2%, from 2Q’16.2Q’17 mortgage loan servicing includes a $1.23 million decline in fair value adjustment ($0.65 million due to price and $0.58 million due to pay downs). 2Q’16 included amortization of $0.71 million and an impairment charge on MSRs of $0.65 million.   2017 YTD Non-interest Income Breakout  Non-interest Income Trends ($ in Millions) 

 15  Non-interest Expense  HighlightsQ2’17 non-interest expenses totaled $22.8 million (a decrease from 1Q’17 and an increase from 2Q’16).Q2’17 compensation and benefits increased by $1.4 million over Q2’16 due primarily to higher salaries and wages and payroll taxes and employee benefits costs. 2Q’17 average FTEs up by 68.97 (8.9%) over 2Q’16, with much of the growth (about 90%) related to the mortgage banking expansion. Efficiency ratio: 2017 YTD – 71.8%; 2016 – 73.7%; 2015 – 77.2%; 2014 – 80.3%; and 2013 – 82.6%.Original target for 2017 was total non-interest expenses at $21.6 million to $22.7 million per quarter (with an average at $21.9 million). Actual 2Q’17 total non-interest expenses slightly above expected high end due primarily to delay in sale of Mepco Finance Corporation business (was originally expected to close in March 2017).Mepco non-interest expenses totaled $0.34 million for 2Q’17.  Non-interest Expense ($ in Millions) 

  16  Sale of Mepco Finance Corporation  Sale Transaction SummarySigned Asset Purchase Agreement (APA) on December 30, 2016 to sell the business and majority of assets of Mepco Finance Corporation (Mepco) to Seabury Asset Management LLC (Seabury). Transaction closed on May 18, 2017 with an effective date of May 1, 2017.Under the terms of the APA, Seabury paid net book value for the assets acquired, assumed Mepco’s lease for office space in Chicago and retained Mepco’s employees.Mepco retained deferred tax assets (that can be used in the IBC consolidated tax return) as well as certain counterparty receivables that are being collected pursuant to various payment arrangements. Mepco was renamed “IB Holding Company” at closing and was liquidated on June 30, 2017 with the remaining assets and liabilities transferred to Independent Bank.Balance Sheet and Income Statement ImpactMepco sold $33.1 million of net payment plan receivables, $0.5 million of commercial loans, $0.2 million of furniture and equipment, and $1.6 million of other assets to Seabury, who also assumed $2.0 million of specified liabilities.During 2Q’17 Mepco had $0.34 million of net interest income and $0.34 million of non-interest expense (net income was zero). Expect full year 2017 impact to IBC (compared to 2016) to be slightly beneficial to net income. 

 17  Investment Securities Portfolio  HighlightsHigh quality, liquid, diverse portfolio with relatively short duration.60% of the portfolio is AAA rated (or backed by the U.S. Government).2.68 year estimated average duration with a weighted average yield of 2.52% (with TE gross up).Approximately 27% of the portfolio is variable rate.Fair value of $589.1 million(1) at 6/30/17.Net unrealized gain of $3.1 million at 6/30/17.Adopted ASU 2017-08 in 1Q’17. Now amortizing premium on callable securities to the earliest call date.  (1) Includes investments in bank CD’s of $5.3 million but excludes trading securities of $0.3 million.  Investment Portfolio by Type (6/30/17)  Investment Portfolio by Rating (6/30/17) 

 18  Credit Quality Summary  Note 1: Non-performing loans and non-performing assets exclude troubled debt restructurings that are performing.Note 2: 3/31/17 and 12/31/16 30 to 89 days delinquent data excludes $1.53 million and $1.63 million, respectively, of payment plan receivables that were held for sale.  Non-performing Assets ($ in Millions)  ORE/ORA ($ in Millions)  Non-performing Loans ($ in Millions)  30 to 89 Days Delinquent ($ in Millions) 

 19  Credit Cost Summary  Note: Dollars all in millions.  Provision for Loan Losses  Loan Net Charge-Offs  Allowance for Loan Losses 

 20  Classified Assets and New Default Trends  Note: Dollars all in millions.  Total Classified Assets  Commercial Loan New Defaults  Total Loan New Defaults  Retail Loan New Defaults 

 21  Troubled Debt Restructurings (TDRs)  TDR HighlightsWorking with client base to maximize sustainable performance.The specific reserves allocated to TDRs totaled $7.2 million at 6/30/17.A majority of our TDRs are performing under their modified terms but remain in TDR status for the life of the loan.91.1% of TDRs are current as of 6/30/17.Commercial TDR Statistics:60 loans with $11.0 million book balance.95.5% performing.WAR of 5.20% (accruing loans).Well seasoned portfolio; over 94% of accruing loans are not only performing but have been for over a year since modification.Retail TDR Statistics:669 loans with $60.3 million book balance.93.1% performing.WAR of 4.93% (accruing loans).Well seasoned portfolio; 98% of accruing loans are not only performing but have been for over a year since modification.  TDRs ($ in Millions)  91% of TDRs are Current 

 22  2017 Actual Performance vs. Original Outlook  Category  Outlook  Lending  Continued growthGoal of 10 to 11% overall loan growth in 2017, primarily supported by increases in commercial loans, mortgage loans and consumer loans. Expect much of this growth to occur in the last three quarters of 2017. This growth forecast also assumes a stable Michigan economy. 2Q’17 Update: Exceeded expectation. 2Q’17 annualized loan growth of 33.8%. Expect strong 3Q’17, then seasonal slowdown in 4Q’17.  Net Interest Income  Growth over 2016 despite sale of payment plan receivablesGoal of approximately 3% increase in net interest income over 2016. Pressure on the net interest margin expected to abate. Growth in net interest income in 2017 vs. 2016 due primarily to growth in loans as described above and somewhat higher short-term interest rates. Forecast assumes two 0.25% increases in the federal funds rate (one in mid 3Q’17 and one in early 4Q’17) and long-term rates up slightly over year end 2016 levels. 2Q’17 Update: Exceeded expectation. Increase of 9.5% over 2Q’16. Expect high single digit percentage growth in 2H’17.  Provision for Loan Losses  Steady asset quality metricsVery difficult area to forecast. Future provision levels will be particularly sensitive to loan net charge-offs, watch credit levels, loan default volumes, and TDR portfolio performance as well as loan growth. The allowance as a percentage of total loans was at 1.26% at 12/31/16. Do not expect credit provision in 2017 due to portfolio loan growth and a decline in recoveries of previously charged-off loans. Quarterly provision (expense) for loan losses of $500K to $600K would not be unreasonable. 2Q’17 Update: $0.6 million loan loss provision expense driven primarily by loan growth. Strong asset quality metrics.  Non-interest Income  Forecasted quarterly range of $10.8 million to $11.7 million with total for year up by approximately $2.4 million vs. 2016Expect mortgage-banking revenues and mortgage lending volumes in 2017 to be higher than 2016. Expect service charges on deposits and interchange income in 2017 to be generally comparable to 2016. 2Q’17 Update: Actual non-interest income of $10.4 million in 2Q’17. Below forecasted range due primarily to lower than expected gains on mortgage loans as there was a higher mix of portfolio mortgage loans than expected. Additionally, 2Q’17 included $0.65 million fair value decline in MSRs due to price.  Non-interest Expense  Forecasted quarterly range of $21.6 to $22.7 million with total for the year down by approximately $2.8 million vs. 2016The expected decrease in non-interest expenses is primarily due to the elimination of $2.6 million of litigation expense and loss on sale of Mepco assets that were incurred in 2016. Decline in expenses associated with the sale of the payment plan processing business (Mepco) is expected to be somewhat offset by higher expenses related to the expansion of mortgage banking operations. 2Q’17 Update: Actual non-interest expenses of $22.8 million (slightly above high end of forecasted range). Variance was primarily due to delay in Mepco sale (expenses for Mepco were expected to end as of 02/28/17). Mepco had $0.34 million of non-interest expenses in 2Q’17.   Income Taxes  Approximately 32% to 32.5% in 2017. This assumes no changes in corporate income tax rates or rules during 2017. 2Q’17 Update: 31.0% actual effective income tax rate. 2Q’17 included a $0.075 million tax benefit related to incentive share awards vested/exercised. 

 23   Strategic Initiatives  Balance SheetGenerate quality loan growth with continued focus on commercial and consumer installment lending as well as salable and portfolio mortgage loans.Remain asset sensitive and positioned to benefit from higher interest rates (short duration investment portfolio, large variable rate loan portfolio and strong core deposit base with a significant amount of small to medium balance transaction accounts). Income StatementGenerate increased net interest income through change in earning asset mix (increased loans to deposits ratio and reduced level of investment securities).Increase non-interest income with focus on transaction related revenue (treasury management and debit card) and mortgage banking revenue.Continued selective reductions in certain non-interest expenses (credit related costs, branch optimization, process re-engineering and outsourcing). However, now expect growth in compensation and employee benefits expense and in occupancy expense as mortgage-banking operations are expanded.Improved efficiency ratio: Low 70% range near-term and mid 60% range longer-term. Achieve improvements primarily through revenue growth.Enterprise Risk ManagementSteady asset quality.Meet increased compliance and regulatory requirements.Focus on data security and loss prevention. 

 24  Q&A and Closing Remarks  Question and Answer SessionClosing RemarksThank you for attending !NASDAQ: IBCP