EX-99.2 3 ibcp-20250424ex992.htm EX-99.2

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets

			March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024						March 31, 2024
			(Dollars in thousands)
Non-accrual loans			$	9,026					$	7,792					$	7,250					$	5,974					$	5,355
Loans 90 days or more past due and still accruing interest			—						—						—						—						—
Subtotal			9,026						7,792						7,250						5,974						5,355
Less:  Government guaranteed loans			1,940						1,790						2,102						1,489						1,665
Total non-performing loans			7,086						6,002						5,148						4,485						3,690
Other real estate and repossessed assets			413						938						781						945						1,059
Total non-performing assets			$	7,499					$	6,940					$	5,929					$	5,430					$	4,749
As a percent of Portfolio Loans
Non-performing loans			0.17		%				0.15		%				0.13		%				0.12		%				0.10		%
Allowance for credit losses			1.47						1.47						1.46						1.46						1.47
Non-performing assets to total assets			0.14						0.13						0.11						0.10						0.09
Allowance for credit losses as a percent of non-performing loans			847.23						989.32						1,115.85						1,253.98						1,526.10

Allowance for credit losses

			Three months ended March 31,
			2025																		2024
			Loans						Securities						Unfunded Commitments						Loans						Securities						Unfunded Commitments
			(Dollars in thousands)
Balance at beginning of period			$	59,379					$	132					$	5,131					$	54,658					$	157					$	5,504
Additions (deductions)
Provision for credit losses			724						(3)						—						1,871						(1,127)						—
Recoveries credited to allowance			550						—						—						596						1,125						—
Assets charged against the allowance			(618)						—						—						(812)						—						—
Additions included in non-interest expense			—						—						196						—						—						(652)
Balance at end of period			$	60,035					$	129					$	5,327					$	56,313					$	155					$	4,852
Net loans charged (recovered) against the allowance to average Portfolio Loans			0.01		%																0.02		%

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Capitalization

			March 31, 2025						December 31, 2024
			(In thousands)
Subordinated debt			$	39,605					$	39,586
Subordinated debentures			39,813						39,796
Amount not qualifying as regulatory capital			(829)						(810)
Amount qualifying as regulatory capital			78,589						78,572
Shareholders’ equity
Common stock			318,365						318,777
Retained earnings			215,995						205,853
Accumulated other comprehensive income (loss)			(67,083)						(69,944)
Total shareholders’ equity			467,277						454,686
Total capitalization			$	545,866					$	533,258

Non-Interest Income

			Three months ended
			March 31, 2025						December 31, 2024						March 31, 2024
			(In thousands)
Interchange income			$	3,127					$	3,294					$	3,151
Service charges on deposit accounts			2,814						2,976						2,872
Net gains (losses) on assets
Mortgage loans			2,303						1,705						1,364
Equity securities at fair value			—						—						—
Securities			(330)						(14)						(269)
Mortgage loan servicing, net			(636)						7,761						2,725
Investment and insurance commissions			754						744						804
Bank owned life insurance			297						268						181
Other			2,095						2,387						1,733
Total non-interest income			$	10,424					$	19,121					$	12,561

Capitalized Mortgage Loan Servicing Rights

									Three months ended March 31,
															2025						2024
															(In thousands)
Balance at beginning of period															$	46,796					$	42,243
Originated servicing rights capitalized															855						828
Change in fair value															(2,424)						506
Sale of originated servicing rights (1)															(12,962)						—
Loss on sale of originated servicing rights (1)															(94)						—
Balance at end of period															$	32,171					$	43,577

(1)     On January 31, 2025 we sold $931.6 million of mortgage loan servicing rights (26.3% of total servicing portfolio) and transferred the servicing on March 3, 2025. This sale represented approximately $13.1 million (27.9%) of the total capitalized mortgage loan servicing right asset.

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Mortgage Loan Activity

			Three months ended
			March 31, 2025						December 31, 2024						March 31, 2024
			(Dollars in thousands)
Mortgage loans originated			$	107,779					$	134,144					$	93,994
Mortgage loans sold			82,618						106,222						80,818
Net gains on mortgage loans			2,303						1,705						1,364
Net gains as a percent of mortgage loans sold  ("Loan Sales Margin")			2.79		%				1.61		%				1.69		%
Fair value adjustments included in the Loan Sales Margin			0.88		%				(0.32)		%				0.48		%

Non-Interest Expense

			Three months ended
			March 31, 2025						December 31, 2024						March 31, 2024
			(In thousands)
Compensation			$	13,197					$	13,458					$	13,277
Performance-based compensation			3,441						5,351						3,476
Payroll taxes and employee benefits			3,745						4,077						4,017
Compensation and employee benefits			20,383						22,886						20,770
Data processing			3,729						3,688						3,255
Occupancy, net			2,223						1,953						2,074
Interchange expense			1,119						1,131						1,097
Furniture, fixtures and equipment			885						928						954
Advertising			861						1,198						491
Loan and collection			786						606						512
FDIC deposit insurance			711						729						782
Communications			591						462						615
Legal and professional			479						849						486
Taxes, licenses and fees			326						311						261
Director fees			232						240						237
Costs (recoveries) related to unfunded lending commitments			196						303						(652)
Amortization of intangible assets			122						129						129
Provision for loss reimbursement on sold loans			(11)						2						3
Net (gains) losses on other real estate and repossessed assets			(66)						—						(76)
Other			1,696						1,572						1,255
Total non-interest expense			$	34,262					$	36,987					$	32,193

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Average Balances and Tax Equivalent Rates

			Three Months Ended March 31,
			2025																		2024
			Average Balance						Interest						Rate (2)						Average Balance						Interest						Rate (2)
			(Dollars in thousands)
Assets
Taxable loans			$	4,053,593					$	57,685					5.74		%				$	3,801,985					$	54,955					5.80		%
Tax-exempt loans (1)			7,348						105						5.78						8,541						111						5.23
Taxable securities			619,764						4,036						2.60						680,133						5,251						3.09
Tax-exempt securities (1)			263,912						3,200						4.85						319,007						3,548						4.45
Interest bearing cash			117,706						1,291						4.45						84,182						1,143						5.46
Other investments			16,273						279						6.85						16,821						298						7.13
Interest Earning Assets			5,078,596						66,596						5.28						4,910,669						65,306						5.34
Cash and due from banks			57,464																		55,550
Other assets, net			241,962																		235,233
Total Assets			$	5,378,022																	$	5,201,452
Liabilities
Savings and interest-bearing checking			2,836,290						12,840						1.84						2,633,519						13,367						2.04
Time deposits			871,377						8,115						3.78						864,672						9,443						4.39
Other borrowings			92,185						1,504						6.58						129,255						2,119						6.59
Interest Bearing Liabilities			3,799,852						22,459						2.40		%				3,627,446						24,929						2.76
Non-interest bearing deposits			1,007,665																		1,063,454
Other liabilities			109,214																		107,327
Shareholders’ equity			461,291																		403,225
Total liabilities and shareholders’ equity			$	5,378,022																	$	5,201,452
Net Interest Income									$	44,137																	$	40,377
Net Interest Income as a Percent of Average Interest Earning Assets															3.49		%																3.30		%

(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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Commercial Loan Portfolio Analysis as of March 31, 2025

			Total Commercial Loans
									Watch Credits																		Percent of Loan Category in Watch Credit
Loan Category			All Loans						Performing						Non-accrual						Total
			(Dollars in thousands)
Land			$	9,259					$	—					$	—					$	—					—		%
Land Development			23,303						—						—						—						—
Construction			135,788						16,903						—						16,903						12.4
Income Producing			688,915						24,038						—						24,038						3.5
Owner Occupied			590,885						10,220						46						10,266						1.7
Total Commercial Real Estate Loans			$	1,448,150					$	51,161					$	46					$	51,207					3.5
Other Commercial Loans			$	544,037					$	32,042					81						$	32,123					5.9
Total non-performing commercial loans															$	127

Commercial Loan Portfolio Analysis as of December 31, 2024

			Total Commercial Loans
									Watch Credits																		Percent of Loan Category in Watch Credit
Loan Category			All Loans						Performing						Non-accrual						Total
			(Dollars in thousands)
Land			$	8,734					$	—					$	—					$	—					0.0		%
Land Development			24,637						—						—						—						—
Construction			201,474						16,589						—						16,589						8.2
Income Producing			624,499						22,286						—						22,286						3.6
Owner Occupied			544,829						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

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