EX-99.2 3 ibcp-20241024ex992.htm EX-99.2 Document

Exhibit 99.2
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data

Non-performing assets

September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
(Dollars in thousands)
Non-accrual loans$7,250 $5,974 $5,355 $6,991 $6,969 
Loans 90 days or more past due and still accruing interest— — — 432 — 
Subtotal7,250 5,974 5,355 7,423 6,969 
Less:  Government guaranteed loans2,102 1,489 1,665 2,191 2,254 
Total non-performing loans5,148 4,485 3,690 5,232 4,715 
Other real estate and repossessed assets781 945 1,059 569 443 
Total non-performing assets$5,929 $5,430 $4,749 $5,801 $5,158 
As a percent of Portfolio Loans
Non-performing loans0.13 %0.12 %0.10 %0.14 %0.13 %
Allowance for credit losses1.46 1.46 1.47 1.44 1.48 
Non-performing assets to total assets0.11 0.10 0.09 0.11 0.10 
Allowance for credit losses as a percent of non-performing loans1,115.85 1,253.98 1,526.10 1,044.69 1,176.99 





Allowance for credit losses

Nine months ended September 30,
20242023
LoansSecuritiesUnfunded
Commitments		LoansSecuritiesUnfunded
Commitments
(Dollars in thousands)
Balance at beginning of period$54,658$157$5,504$52,435$168$5,080
Additions (deductions)
Provision for credit losses3,400(1,149)—3,8402,987—
Recoveries credited to allowance2,1061,125—2,082——
Assets charged against the allowance(2,720)——(2,862)(3,000)—
Additions included in non-interest expense——(676)——76
Balance at end of period$57,444$133$4,828$55,495$155$5,156
Net loans charged (recovered) against the allowance to average Portfolio Loans0.02 %0.03 %

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Capitalization

September 30, 2024December 31, 2023
(In thousands)
Subordinated debt$39,567 $39,510 
Subordinated debentures39,779 39,728 
Amount not qualifying as regulatory capital(791)(734)
Amount qualifying as regulatory capital78,555 78,504 
Shareholders’ equity
Common stock318,216 317,483 
Retained earnings192,405 159,108 
Accumulated other comprehensive income (loss)(58,252)(72,142)
Total shareholders’ equity452,369 404,449 
Total capitalization$530,924 $482,953 

Non-Interest Income

Three months endedNine months ended
September 30, 2024June 30, 2024September 30, 2023September 30,
20242023
(In thousands)
Interchange income$4,146 $3,401 $4,100 $10,698 $10,660 
Service charges on deposit accounts3,085 2,937 3,309 8,894 9,300 
Net gains (losses) on assets
Mortgage loans2,177 1,333 2,099 4,874 5,475 
Equity securities at fair value(8)2,693 — 2,685 — 
Securities(145)— — (414)(222)
Mortgage loan servicing, net(3,130)2,091 2,668 1,686 7,068 
Investment and insurance commissions882 838 875 2,524 2,446 
Bank owned life insurance197 188 124 566 333 
Other2,304 1,691 2,436 5,728 6,519 
Total non-interest income$9,508 $15,172 $15,611 $37,241 $41,579 

Capitalized Mortgage Loan Servicing Rights

Three months ended September 30,Nine months ended September 30,
2024202320242023
(In thousands)
Balance at beginning of period$44,406 $44,427 $42,243 $42,489 
Originated servicing rights capitalized1,176 1,159 2,956 3,112 
Change in fair value(5,378)471 (4,995)456 
Balance at end of period$40,204 $46,057 $40,204 $46,057 

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Mortgage Loan Activity

Three months endedNine months ended
September 30, 2024June 30, 2024September 30, 2023September 30,
20242023
(Dollars in thousands)
Mortgage loans originated$147,516$142,602$172,914$384,112$446,450
Mortgage loans sold117,03791,540115,269289,395321,140
Net gains on mortgage loans2,1771,3332,0994,8745,475
Net gains as a percent of mortgage loans sold  ("Loan Sales Margin")1.86 %1.46 %1.82 %1.68 %1.70 %
Fair value adjustments included in the Loan Sales Margin0.46 %0.14 %(0.32)%0.30 %0.60 %

Non-Interest Expense

Three months endedNine months ended
September 30, 2024June 30, 2024September 30, 2023September 30,
20242023
(In thousands)
Compensation$13,264 $13,390 $13,054 $39,931 $39,846 
Performance-based compensation3,426 3,885 2,955 10,787 8,420 
Payroll taxes and employee benefits3,358 3,976 3,966 11,351 11,650 
Compensation and employee benefits20,048 21,251 19,975 62,069 59,916 
Data processing3,379 3,257 3,071 9,891 8,953 
Occupancy, net1,893 1,886 1,971 5,853 5,975 
Interchange expense1,149 1,127 1,119 3,373 3,222 
Furniture, fixtures and equipment932 948 927 2,834 2,782 
FDIC deposit insurance664 695 677 2,141 2,209 
Loan and collection657 699 520 1,868 1,718 
Advertising581 788 360 1,860 1,286 
Legal and professional687 544 543 1,717 1,623 
Communications519 499 568 1,633 1,871 
Taxes, licenses and fees347 436 225 891 659 
Director fees235 239 236 709 706 
Amortization of intangible assets129 129 136 387 410 
Provision for loss reimbursement on sold loans24 (1)7 26 21 
Net (gains) losses on other real estate and repossessed assets14 (108)1 (170)18 
Costs (recoveries) related to unfunded lending commitments113 (137)451 (676)76 
Other1,212 1,081 1,249 3,703 3,796 
Total non-interest expense$32,583 $33,333 $32,036 $98,109 $95,241 

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Average Balances and Tax Equivalent Rates

Three Months Ended September 30,
20242023
Average
Balance		InterestRate (2)Average
Balance		InterestRate (2)
(Dollars in thousands)
Assets
Taxable loans$3,901,370 $58,322 5.96 %$3,687,637 $51,352 5.54 %
Tax-exempt loans (1)8,584 111 5.14 6,897 85 4.89 
Taxable securities665,974 4,502 2.70 800,524 5,865 2.93 
Tax-exempt securities (1)267,776 3,539 5.29 270,687 3,593 5.31 
Interest bearing cash126,039 1,717 5.42 108,389 1,468 5.37 
Other investments16,099 301 7.48 18,074 271 5.95 
Interest Earning Assets4,985,842 68,492 5.48 4,892,208 62,634 5.10 
Cash and due from banks57,211 61,094 
Other assets, net232,570 238,812 
Total Assets$5,275,623 $5,192,114 
Liabilities
Savings and interest-bearing checking2,763,558 15,621 2.25 2,598,170 12,272 1.87 
Time deposits804,944 8,841 4.37 816,810 8,471 4.11 
Other borrowings121,182 2,018 6.64 139,199 2,262 6.45 
Interest Bearing Liabilities3,689,684 26,480 2.86 %3,554,179 23,005 2.57 
Non-interest bearing deposits1,047,617 1,162,816 
Other liabilities100,245 102,452 
Shareholders’ equity438,077 372,667 
Total liabilities and shareholders’ equity$5,275,623 $5,192,114 
Net Interest Income$42,012 $39,629 
Net Interest Income as a Percent of Average Interest Earning Assets3.37 %3.23 %

(1)Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
(2)Annualized


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Average Balances and Tax Equivalent Rates
Nine Months Ended September 30,
20242023
Average
Balance		InterestRateAverage
Balance		InterestRate (2)
(Dollars in thousands)
Assets
Taxable loans$3,848,092 $169,974 5.90 %$3,579,569 $143,203 5.34 %
Tax-exempt loans (1)8,660 335 5.17 6,705 239 4.77 
Taxable securities691,327 14,466 2.79 834,924 17,668 2.82 
Tax-exempt securities (1)267,689 10,638 5.30 274,454 10,447 5.08 
Interest bearing cash97,941 3,994 5.45 71,355 2,769 5.19 
Other investments16,452 904 7.33 17,805 712 5.35 
Interest Earning Assets4,930,161 200,311 5.42 4,784,812 175,038 4.88 
Cash and due from banks54,481 59,163 
Other assets, net235,026 231,872 
Total Assets$5,219,668 $5,075,847 
Liabilities
Savings and interest-bearing checking2,690,359 43,178 2.14 2,550,973 31,644 1.66 
Time deposits825,984 26,970 4.37 745,983 20,320 3.64 
Other borrowings126,861 6,253 6.58 128,846 6,134 6.37 
Interest Bearing Liabilities3,643,204 76,401 2.80 %3,425,802 58,098 2.27 
Non-interest bearing deposits1,053,719 1,184,548 
Other liabilities104,057 100,929 
Shareholders’ equity418,688 364,568 
Total liabilities and shareholders’ equity$5,219,668 $5,075,847 
Net Interest Income$123,910 $116,940 
Net Interest Income as a Percent of Average Interest Earning Assets3.35 %3.26 %

(1)Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
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Commercial Loan Portfolio Analysis as of September 30, 2024

Total Commercial Loans
Watch CreditsPercent of Loan Category in Watch Credit
Loan CategoryAll LoansPerformingNon-accrualTotal
(Dollars in thousands)
Land$9,682 $— $— $— — %
Land Development20,104 — — — — 
Construction177,038 15,154 — 15,154 8.6 
Income Producing590,596 6,284 — 6,284 1.1 
Owner Occupied506,734 13,940 47 13,987 2.8 
Total Commercial Real Estate Loans$1,304,154 $35,378 $47 $35,425 2.7 
Other Commercial Loans$521,093 $24,777 12 $24,789 4.8 
Total non-performing commercial loans$59 

Commercial Loan Portfolio Analysis as of December 31, 2023

Total Commercial Loans
Watch CreditsPercent of Loan Category in Watch Credit
Loan CategoryAll LoansPerformingNon-accrualTotal
(Dollars in thousands)
Land$10,620 $1 $— $1 0.0 %
Land Development17,966 — — — — 
Construction101,178 — — — — 
Income Producing625,927 4,177 — 4,177 0.7 
Owner Occupied449,287 15,165 — 15,165 3.4 
Total Commercial Real Estate Loans$1,204,978 $19,343 $— $19,343 1.6 
Other Commercial Loans$474,753 $16,537 28 $16,565 3.5 
Total non-performing commercial loans$28 
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