EX-99.2 3 ibcp-2025123ex992.htm EX-99.2 Document

Exhibit 99.2
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Supplemental Data

Non-performing assets

December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023
(Dollars in thousands)
Non-accrual loans$7,792 $7,250 $5,974 $5,355 $6,991 
Loans 90 days or more past due and still accruing interest— — — — 432 
Subtotal7,792 7,250 5,974 5,355 7,423 
Less:  Government guaranteed loans1,790 2,102 1,489 1,665 2,191 
Total non-performing loans6,002 5,148 4,485 3,690 5,232 
Other real estate and repossessed assets938 781 945 1,059 569 
Total non-performing assets$6,940 $5,929 $5,430 $4,749 $5,801 
As a percent of Portfolio Loans
Non-performing loans0.15 %0.13 %0.12 %0.10 %0.14 %
Allowance for credit losses1.47 1.46 1.46 1.47 1.44 
Non-performing assets to total assets0.13 0.11 0.10 0.09 0.11 
Allowance for credit losses as a percent of non-performing loans989.32 1,115.85 1,253.98 1,526.10 1,044.69 





Allowance for credit losses

Twelve months ended December 31,
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 losses5,618(1,150)—3,2212,989—
Recoveries credited to allowance2,7111,125—2,798——
Charges against the allowance(3,608)——(3,796)(3,000)—
Costs included in non-interest expense——(373)——424
Balance at end of period$59,379$132$5,131$54,658$157$5,504
Net loans charged (recovered) against the allowance to average Portfolio Loans0.02 %0.03 %





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Capitalization

December 31,
20242023
(In thousands)
Subordinated debt$39,586 $39,510 
Subordinated debentures39,796 39,728 
Amount not qualifying as regulatory capital(810)(734)
Amount qualifying as regulatory capital78,572 78,504 
Shareholders’ equity
Common stock318,777 317,483 
Retained earnings205,853 159,108 
Accumulated other comprehensive income(69,944)(72,142)
Total shareholders’ equity454,686 404,449 
Total capitalization$533,258 $482,953 

Non-Interest Income

Three months endedTwelve months ended
December 31, 2024September 30, 2024December 31, 2023December 31,
20242023
(In thousands)
Interchange income$3,294 $4,146 $3,336 $13,992 $13,996 
Service charges on deposit accounts2,976 3,085 3,061 11,870 12,361 
Net gains (losses) on assets
Mortgage loans1,705 2,177 1,961 6,579 7,436 
Equity securities at fair value— (8)— 2,685 — 
Securities(14)(145)— (428)(222)
Mortgage loan servicing, net7,761 (3,130)(2,442)9,447 4,626 
Investment and insurance commissions744 882 1,010 3,268 3,456 
Bank owned life insurance268 197 141 834 474 
Other2,387 2,304 2,030 8,115 8,549 
Total non-interest income$19,121 $9,508 $9,097 $56,362 $50,676 

Capitalized Mortgage Loan Servicing Rights

Three months ended December 31,Twelve months ended December 31,
2024202320242023
(In thousands)
Balance at beginning of period$40,204 $46,057 $42,243 $42,489 
Originated servicing rights capitalized1,064 844 4,020 3,956 
Change in fair value5,528 (4,658)533 (4,202)
Balance at end of period$46,796 $42,243 $46,796 $42,243 




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Mortgage Loan Activity

Three months endedTwelve months ended
December 31, 2024September 30, 2024December 31, 2023December 31,
20242023
(Dollars in thousands)
Mortgage loans originated$134,144$147,516$108,011$518,256$554,461
Mortgage loans sold106,222117,03786,473395,617407,613
Net gains on mortgage loans1,7052,1771,9616,5797,436
Net gains as a percent of mortgage loans sold  ("Loan Sales Margin")1.61 %1.86 %2.27 %1.66 %1.82 %
Fair value adjustments included in the Loan Sales Margin(0.32)%0.46 %0.69 %0.13 %0.62 %

Non-Interest Expense

Three months endedTwelve months ended
December 31, 2024September 30, 2024December 31, 2023December 31,
20242023
(In thousands)
Compensation$13,458 $13,264 $12,656 $53,389 $52,502 
Performance-based compensation5,351 3,426 2,644 16,138 11,064 
Payroll taxes and employee benefits4,077 3,358 3,749 15,428 15,399 
Compensation and employee benefits22,886 20,048 19,049 84,955 78,965 
Data processing3,688 3,379 2,909 13,579 11,862 
Occupancy, net1,953 1,893 1,933 7,806 7,908 
Interchange expense1,131 1,149 1,110 4,504 4,332 
Furniture, fixtures and equipment928 932 974 3,762 3,756 
Advertising1,198 581 879 3,058 2,165 
FDIC deposit insurance729 664 796 2,870 3,005 
Legal and professional849 687 585 2,566 2,208 
Loan and collection606 657 456 2,474 2,174 
Communications462 519 535 2,095 2,406 
Taxes, licenses and fees311 347 320 1,202 975 
Director Fees240 235 153 949 596 
Amortization of intangible assets129 129 137 516 547 
Provision for loss reimbursement on sold loans2 24 (1)28 20 
Net losses (gains) on other real estate and repossessed assets— 14 1 (170)19 
Costs (recoveries) related to unfunded lending commitments303 113 348 (373)424 
Other1,572 1,212 1,694 5,275 5,757 
Total non-interest expense$36,987 $32,583 $31,878 $135,096 $127,119 

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Average Balances and Tax Equivalent Rates

Three Months Ended December 31,
20242023
Average
Balance		InterestRate (2)Average
Balance		InterestRate (2)
(Dollars in thousands)
Assets
Taxable loans$3,986,254 $58,255 5.83 %$3,757,453 $54,259 5.74 %
Tax-exempt loans (1)8,407 116 5.49 7,299 94 5.11 
Taxable securities644,931 4,417 2.74 719,093 5,646 3.14 
Tax-exempt securities (1)267,142 3,269 4.89 308,147 3,592 4.66 
Interest bearing cash84,733 1,019 4.78 119,884 1,647 5.45 
Other investments16,099 291 7.23 16,821 301 7.10 
Interest Earning Assets5,007,566 67,367 5.37 4,928,697 65,539 5.29 
Cash and due from banks57,775 56,423 
Other assets, net235,027 248,546 
Total Assets$5,300,368 $5,233,666 
Liabilities
Savings and interest-bearing checking2,835,507 14,393 2.02 2,603,044 13,084 1.99 
Time deposits789,241 8,153 4.11 903,491 10,027 4.40 
Other borrowings92,735 1,581 6.80 129,236 2,139 6.57 
Interest Bearing Liabilities3,717,483 24,127 2.58 %3,635,771 25,250 2.76 
Non-interest bearing deposits1,030,343 1,106,262 
Other liabilities102,328 112,019 
Shareholders’ equity$450,214 $379,614 
Total liabilities and shareholders’ equity$5,300,368 $5,233,666 
Net Interest Income$43,240 $40,289 
Net Interest Income as a Percent of Average Interest Earning Assets3.45 %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%.
(2)Annualized


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Average Balances and Tax Equivalent Rates
Twelve Months Ended December 31,
20242023
Average
Balance		InterestRateAverage
Balance		InterestRate (2)
(Dollars in thousands)
Assets
Taxable loans$3,882,822 $228,229 5.88 %$3,624,406 $197,462 5.45 %
Tax-exempt loans (1)8,597 451 5.25 6,855 333 4.86 
Taxable securities652,772 18,883 2.89 771,121 23,314 3.02 
Tax-exempt securities (1)294,443 13,907 4.72 317,553 14,039 4.42 
Interest bearing cash94,621 5,013 5.30 83,587 4,416 5.28 
Other investments16,363 1,195 7.30 17,557 1,013 5.77 
Interest Earning Assets4,949,618 267,678 5.41 4,821,079 240,577 4.99 
Cash and due from banks55,309 58,473 
Other assets, net235,025 236,072 
Total Assets$5,239,952 $5,115,624 
Liabilities
Savings and interest-bearing checking2,727,778 57,571 2.11 2,564,097 44,728 1.74 
Time deposits815,815 35,123 4.31 785,684 30,347 3.86 
Other borrowings118,282 7,834 6.62 128,945 8,273 6.42 
Interest Bearing Liabilities3,661,875 100,528 2.75 %3,478,726 83,348 2.40 
Non-interest bearing deposits1,047,843 1,164,816 
Other liabilities103,622 103,721 
Shareholders’ equity$426,612 $368,361 
Total liabilities and shareholders’ equity$5,239,952 $5,115,624 
Net Interest Income$167,150 $157,229 
Net Interest Income as a Percent of Average Interest Earning Assets3.38 %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 December 31, 2024

Total Commercial Loans
Watch CreditsPercent of Loan Category in Watch Credit
Loan CategoryAll LoansPerformingNon-accrualTotal
(Dollars in thousands)
Land$8,734 $— $— $— — %
Land Development24,637 — — — — 
Construction201,474 16,589 — 16,589 8.2 
Income Producing624,499 22,286 — 22,286 3.6 
Owner Occupied544,829 18,396 47 18,443 3.4 
Total Commercial Real Estate Loans$1,404,173 $57,271 $47 $57,318 4.1 
Other Commercial Loans$533,190 $27,334 7 $27,341 5.1 
Total non-performing commercial loans$54 

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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