Equibles

8-K

INDEPENDENT BANK CORP /MI/ (IBCP)

8-K 2020-10-27 For: 2020-10-27
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Added on April 04, 2026

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: October 27, 2020

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<br> <br>Grand Rapids, Michigan 49525
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(Address of principal executive office) (Zip Code)

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)
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☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading symbol(s) Name of each exchange on which registered
Common stock, no par value IBCP NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On October 27, 2020, Independent Bank Corporation issued a press release announcing its financial results for the quarter ended September 30, 2020.  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 October 27, 2020.
99.2 Supplemental data to the Registrant's press release dated October 27, 2020.
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99.3 Earnings conference call presentation.
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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 October 27, 2020 By s/Gavin A. Mohr
Gavin A. Mohr, Principal Financial Officer

2

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
Gavin A. Mohr, Chief Financial Officer, 616.447.3929

INDEPENDENT BANK CORPORATION REPORTS

2020 THIRD QUARTER RESULTS

GRAND RAPIDS, Mich., Oct. 27, 2020 - Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2020 net income of $19.6 million, or $0.89 per diluted share, versus net income of $12.4 million, or $0.55 per diluted share, in the prior-year period.  For the nine months ended September 30, 2020, the Company reported net income of $39.2 million, or $1.76 per diluted share, compared to net income of $32.6 million, or $1.40 per diluted share, in the prior-year period.  The increase in third quarter and year-to-date 2020 earnings as compared to 2019 primarily reflects increases in net interest income and non-interest income that were partially offset by increases in the provision for loan losses, non-interest expense and income tax expense.

Third quarter 2020 highlights include:

• Increases in net income and diluted earnings per share of  57.4% and 61.8%, respectively, compared to 2019;
• Return on average assets and return on average equity of 1.90% and 21.36%, respectively, compared to 1.42% and 14.64%, respectively, in 2019;
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• Net gains on mortgage loans of $20.2 million (up 255.9% over 2019) and total mortgage loan origination volume of $536.5 million;
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• Deposit net growth of $112.6 million (or 3.2%);
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• Continued strong asset quality metrics as evidenced by a low level of early stage (30 to 89 day) loan delinquencies (0.20% at September 30, 2020), net loan recoveries during the<br> quarter, a low level of non-performing loans and non-performing assets and a significant decline in the level of loan forbearances; and
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• The payment of a 20 cent per share dividend on common stock on August 14, 2020.
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Year to date 2020 highlights include:

• Increases in net income and diluted earnings per share of  20.3% and 25.7%, respectively, compared to 2019;
• Return on average assets and return on average equity of 1.36% and 14.87%, respectively, compared to 1.28% and 12.84%, respectively, in 2019;
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• Net gains on mortgage loans of $46.7 million (up 243.5% over 2019) and total mortgage loan origination volume of $1.3 billion;
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• Deposit net growth of $561.0 million (or 18.5%); and
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• An increase in tangible common equity per share of common stock of 10.4%.
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1

Significant items impacting comparable quarterly and year to date 2020 and 2019 results include the following:

• Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of a negative $1.1 million ($0.04 per diluted share, after taxes) and a<br> negative $9.9 million ($0.35 per diluted share, after taxes) for the three- and nine-months ended September 30, 2020, respectively, as compared to a negative $2.2 million ($0.08 per diluted share, after taxes) and a negative $7.0 million<br> ($0.24 per diluted share, after taxes) for the three- and nine-months ended September 30, 2019, respectively.
• Approximately $0.64 million ($0.02 per diluted share, after taxes) and $1.46 million ($0.05 per diluted share, after taxes) of expenses related to a pending data processing<br> conversion and bank branch closures (as described further below under “Operating Results”) for the three- and nine-months ended September 30, 2020, respectively
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William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “We are pleased to report a very strong financial performance in the third quarter of 2020 as we continue to navigate the many challenges brought on by the COVID-19 pandemic.  Our associates continued their amazing efforts during this quarter!  We closed over one-half billion dollars of mortgage loans, helping our customers buy new homes or refinance existing mortgage loans. Total deposit balances grew by over one hundred million dollars. We assisted our customers in completing and submitting PPP forgiveness applications to the SBA, with over 14% of outstanding balances submitted. We continued to effectively operate our Business Continuity Plan to safely serve our customers and protect our employees.  Finally, we maintained solid asset quality metrics during the third quarter of 2020. COVID-19 related loan forbearance balances decreased by 80.0% during the third quarter of 2020. As we look ahead to the last quarter of 2020 and beyond, we are mindful of the ongoing challenges from the COVID-19 pandemic, but we are confident of our continued ability to effectively respond to these challenges and remain optimistic about our future.”

COVID-19 Pandemic Update

The Company continues to respond to the challenges arising from the COVID-19 pandemic. Our response was initially formulated during the month of February 2020 as we prepared our infrastructure to allow the majority of our associates to work remotely.  In March 2020 we activated our Business Continuity Plan to protect our customers, employees and business.  We will continue to take the necessary steps to serve our communities while doing our part to minimize the spread of COVID-19.  The following is a brief description of our current initiatives:

• Customer Safety and Service Levels – From mid-March 2020 to mid-June 2020 we limited our branch lobbies to appointment only and kept drive-through windows open.  In mid-June 2020<br> our bank branch lobbies fully reopened.  With the ability to use drive through service, ATMs or our electronic banking solutions there was minimal disruption to customers.
• Employee Safety – For employees that are in our bank branches servicing our customers, we have expanded sick and vacation time.  All non-branch employees either have the option or<br> are required to work remotely.  We currently have approximately 38% of our total staff working remotely every day.  We have installed “customer friendly” shields throughout our delivery network and have implemented a variety of other<br> protective processes to promote the safety of our employees and put both customers and staff at ease.
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• Loan Forbearances – We have forbearance programs in place to proactively work with our customers who have experienced financial difficulty due to the COVID-19 pandemic. Totals for<br> these programs by loan type are presented in the table below under the caption “Asset Quality”. The level of these loans is down significantly after peaking in mid-June 2020, as many customers’ economic situations have improved, allowing<br> them to pay their loans current or return to their original payment terms.
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• U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) – We built an effective process to manage the high volume of applications that we received and<br> processed.  Customer demand for this program was extraordinary.  As of September 30, 2020, we had 2,117 PPP loans outstanding with a total balance of $261.2 million.  The average balance of PPP loans in the third quarter of 2020 was $261.5<br> million with an average yield of 3.04% (including the accretion of approximately $1.3 million of net fees).  At September 30, 2020, there was $6.5 million of remaining unaccreted net fees related to PPP loans.  These net fees are expected<br> to be accreted into interest income over the next 15 months and the pace of such accretion will depend on payment activity (including loan forgiveness) within the PPP loan portfolio.  As of September 30, 2020, 197 forgiveness applications<br> (totaling $37.2 million) have been submitted to the SBA. Approvals of forgiveness applications by the SBA began to be received in October 2020.
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• Federal Reserve Main Street Lending Program (“MSLP”) – We submitted an application and were approved as a MSLP lender.  This program is designed to support small and medium-sized<br> businesses that were in sound financial condition before the COVID-19 pandemic.  U.S. businesses may be eligible for MSLP loans if they meet either of the following conditions: (1) the business has 15,000 employees or fewer; or (2) the<br> business had 2019 revenues of $5 billion or less.  Thus far there have been minimal loan applications and no loan approvals under the MSLP.
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2

Operating Results

The Company’s net interest income totaled $32.0 million during the third quarter of 2020, an increase of $1.1 million, or 3.5% from the year-ago period, and up $1.5 million, or 4.9%, from the second quarter of 2020.  The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.31% during the third quarter of 2020, compared to 3.76% in the year-ago period, and 3.36% in the second quarter of 2020.  The year-over-year quarterly increase in net interest income is due to an increase in average interest-earning assets that was partially offset by a decline in the net interest margin.  Average interest-earning assets were $3.89 billion in the third quarter of 2020, compared to $3.29 billion in the year ago quarter and $3.66 billion in the second quarter of 2020.

For the first nine months of 2020, net interest income totaled $92.6 million, an increase of $0.7 million, or 0.8% from the first nine months of 2019.  The Company’s net interest margin for the first nine months of 2020 was 3.42% compared to 3.83% in 2019.  The increase in net interest income for the first nine months of 2020 compared to 2019 is also due to an increase in average interest-earning assets that was partially offset by a decline in the net interest margin.

Due to the economic impact of COVID-19, the Federal Reserve has taken a variety of actions to stimulate the economy, including significantly lowering short-term interest rates.  These actions have placed continued pressure on the Company’s net interest margin.

Non-interest income totaled $27.0 million and $58.4 million, respectively, for the third quarter and first nine months of 2020, compared to $12.3 million and $32.1 million in the respective comparable year ago periods.  These changes were primarily due to variances in mortgage banking related revenues (net gains on mortgage loans and mortgage loan servicing, net).

Net gains on mortgage loans in the third quarters of 2020 and 2019, were approximately $20.2 million and $5.7 million, respectively.  For the first nine months of 2020, net gains on mortgage loans totaled $46.7 million compared to $13.6 million in 2019.  The increase in net gains on mortgage loans in 2020 was primarily due to a significant increase in mortgage loan sales volume (principally reflecting the rise in mortgage loan refinance levels), as well as improved profit margins on mortgage loan sales and fair value adjustments on the mortgage loan pipeline.

Mortgage loan servicing, net, generated a loss of $0.6 million and $1.6 million in the third quarters of 2020 and 2019, respectively. For the first nine months of 2020 and 2019, mortgage loan servicing, net, generated a loss of $9.0 million and $4.7 million, respectively.  The significant variances in mortgage loan servicing, net are primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in mortgage loan interest rates and expected future prepayment levels. Mortgage loan servicing, net activity is summarized in the following table:

Three Months Ended Nine Months Ended
9/30/2020 9/30/2019 9/30/2020 9/30/2019
Mortgage loan servicing, net: (Dollars in thousands)
Revenue, net $ 1,743 $ 1,583 $ 5,062 $ 4,574
Fair value change due to price (1,089 ) (2,163 ) (9,941 ) (7,036 )
Fair value change due to pay-downs (1,298 ) (982 ) (4,087 ) (2,222 )
Total $ (644 ) $ (1,562 ) $ (8,966 ) $ (4,684 )

Non-interest expenses totaled $33.6 million in the third quarter of 2020, compared to $27.8 million in the year-ago period.  For the first nine months of 2020, non-interest expenses totaled $89.7 million versus $82.4 million in 2019.  These year-over-year increases in non-interest expense are primarily due to increases in compensation and employee benefits, FDIC deposit insurance and conversion related expenses. Third quarter and year to date 2020 performance based compensation expense increased $5.1 million and $6.5 million, respectively, primarily as a result of actual performance relative to established management incentive plan targets. The third quarter and first nine months of 2020 includes $0.6 million and $1.0 million, respectively, of expenses related to the Company’s core data processing conversion that is in process (this conversion is expected to be completed in April 2021). The year-to-date 2020 non-interest expense also includes $0.4 million of expenses (primarily write-downs of fixed assets and leases) related to the closures of eight bank branch offices that occurred in June and July 2020.

The Company recorded an income tax expense of $4.8 million and $9.2 million in the third quarter and first nine months of 2020, respectively.  This compares to an income tax expense of $3.1 million and $8.0 million in the third quarter and first nine months of 2019, respectively.  The changes in income tax expense primarily reflect changes in pre-tax earnings in 2020 relative to 2019.

3

Asset Quality

A breakdown of loan forbearance totals by loan type is as follows:

9/30/20 6/30/20 % change vs. prior quarter
Loan Type # $ (000’s) % of<br><br> <br>portfolio # (000's) % of<br><br> <br>portfolio #
Commercial 17 $ 25,105 1.9 % 386 15.4 % (95.6 )% (88.1
Mortgage 197 32,091 3.1 % 388 7.8 % (49.2 )% (60.5
Installment 97 2,631 0.5 % 280 1.6 % (65.4 )% (64.7
Total 311 $ 59,827 2.1 % 1,054 10.4 % (70.5 )% (80.0
Loans serviced for others 416 $ 66,279 2.3 % 773 4.2 % (46.2 )% (42.3

All values are in US Dollars.

Note:  The % of portfolio is based on the dollar amount of forbearances to the total for the loan portfolio segment.

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

Loan Type 9/30/2020 12/31/2019 9/30/2019
(Dollars in thousands)
Commercial $ 2,487 $ 1,377 $ 834
Mortgage 7,580 7,996 5,355
Installment 680 805 935
Subtotal 10,747 10,178 7,124
Less – government guaranteed loans 510 646 475
Total non-performing loans $ 10,237 $ 9,532 $ 6,649
Ratio of non-performing loans to total portfolio loans 0.36 % 0.35 % 0.24 %
Ratio of non-performing assets to total assets 0.28 % 0.32 % 0.24 %
Ratio of the allowance for loan losses to non-performing loans 349.43 % 274.32 % 393.26 %
(1) Excludes loans that are classified as “troubled debt restructured” that are still performing.
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Non-performing loans have increased $0.7 million from December 31, 2019, due primarily to an increase in non-performing commercial loans.

The provision for loan losses was an expense of $1.0 million and a credit of $0.3 million in the third quarters of 2020 and 2019, respectively.  The provision for loan losses was an expense of $12.9 million and $1.0 million in the first nine months of 2020 and 2019, 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, loan forbearances and loan net charge-offs.  In addition, the higher 2020 year-to-date provision for loan losses includes a $10.7 million (or 122.1%) increase in the qualitative/subjective portion of the allowance for loan losses.  This increase principally reflects the unique challenges and economic uncertainty resulting from the COVID-19 pandemic and the potential impact on the loan portfolio that is not otherwise captured elsewhere within the allowance for loan losses.  The Company recorded loan net recoveries of $0.3 million and loan net charge offs of $3.3 million in the third quarter and first nine months of 2020, respectively.  This compares to loan net recoveries of $0.5 million and $0.2 million, in the third quarter and first nine months of 2019, respectively.  At September 30, 2020, the allowance for loan losses totaled $35.8 million, or 1.25% of total portfolio loans, compared to $26.1 million, or 0.96% of total portfolio loans, at December 31, 2019. Excluding PPP loans and the remaining Traverse City State Bank acquired loan balances, the allowance for loan losses was equal to 1.44% of portfolio loans at September 30, 2020.

Balance Sheet, Liquidity and Capital

Total assets were $4.17 billion at September 30, 2020, an increase of $604.3 million from December 31, 2019.  Loans, excluding loans held for sale, were $2.86 billion at September 30, 2020, compared to $2.73 billion at December 31, 2019.  Deposits totaled $3.60 billion at September 30, 2020, an increase of $561.0 million from December 31, 2019.  This increase is primarily due to growth in non-interest bearing, savings and interest-bearing checking and reciprocal deposit account balances.

4

Cash and cash equivalents totaled $46.6 million at September 30, 2020, versus $65.3 million at December 31, 2019. Securities available for sale totaled $985.1 million at September 30, 2020, versus $518.4 million at December 31, 2019.  The significant increase in securities available for sale is due to the deployment of funds generated from the growth in deposits.

In May 2020, the Company issued $40.0 million of subordinated notes with a ten year maturity, a five year call option and an initial coupon interest rate (fixed for the first five years) of 5.95%.

Total shareholders’ equity was $373.1 million at September 30, 2020, or 8.95% of total assets.  Tangible common equity totaled $340.2 million at September 30, 2020, or $15.55 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 9/30/2020 12/31/2019 Well<br><br> <br>Capitalized<br><br> <br>Minimum
Tier 1 capital to average total assets 8.78 % 9.49 % 5.00 %
Tier 1 common equity  to risk-weighted assets 12.57 % 11.96 % 6.50 %
Tier 1 capital to risk-weighted assets 12.57 % 11.96 % 8.00 %
Total capital to risk-weighted assets 13.82 % 12.96 % 10.00 %

Share Repurchase Plan

As previously announced, on December 17, 2019, the Board of Directors of the Company authorized the 2020 share repurchase plan.  Under the terms of the 2020 share repurchase plan, the Company is authorized to buy back up to 1,120,000 shares, or approximately 5% of its outstanding common stock.    The repurchase plan is authorized to last through December 31, 2020.  During the first quarter of 2020, the Company repurchased 678,929 shares at a weighted average price of $20.30 per share. Due primarily to the economic uncertainty brought on by the COVID-19 pandemic, the Company has not purchased any of its shares since March 2020.  However, primarily as a result of the Company’s strong financial performance and improved economic conditions, and dependent upon market and other factors, we may begin to purchase our shares under the 2020 share repurchase plan during the last two months of the year.

Earnings Conference Call

Brad Kessel, President and CEO and Gavin A. Mohr, CFO will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Tuesday, October 27, 2020.

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 site/URL:  https://services.choruscall.com/links/ibcp201027.html.

A playback of the call can be accessed by dialing 1-877-344-7529 (Conference ID # 10147647). The replay will be available through November 3, 2020.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $4.2 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.

5

Forward-Looking Statements

This press release contains forward-looking statements about Independent Bank Corporation. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of Independent Bank Corporation. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. The COVID-19 pandemic is adversely affecting Independent Bank Corporation, its customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect Independent Bank Corporation’s revenues and the values of its assets and liabilities, reduce the availability of funding from certain financial institutions, lead to a tightening of credit, and increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices could affect Independent Bank Corporation in substantial and unpredictable ways. Independent Bank Corporation’s results could also be adversely affected by changes in interest rates; further increases in unemployment rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of its investment securities; legal and regulatory developments; litigation; increased competition from both banks and non-banks; changes in the level of tariffs and other trade policies of the United States and its global trading partners; changes in customer behavior and preferences; breaches in data security; failures to safeguard personal information; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk.

Certain risks and important factors that could affect Independent Bank Corporation's future results are identified in its Annual Report on Form 10-K for the year ended December 31, 2019 and other reports filed with the SEC, including among other things under the heading “Risk Factors” in such Annual Report on Form 10-K. Any forward-looking statement speaks only as of the date on which it is made, and Independent Bank Corporation undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances, after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise.

6

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Condition

September 30,<br><br> <br>2020 December 31,<br><br> <br>2019
(unaudited)
(In thousands, except share<br><br> <br>amounts)
Assets
Cash and due from banks $ 42,435 $ 53,295
Interest bearing deposits 4,121 12,009
Cash and Cash Equivalents 46,556 65,304
Interest bearing deposits - time - 350
Securities available for sale 985,050 518,400
Federal Home Loan Bank and Federal Reserve Bank stock, at cost 18,427 18,359
Loans held for sale, carried at fair value 99,747 69,800
Loans
Commercial 1,351,790 1,166,695
Mortgage 1,024,036 1,098,911
Installment 479,653 459,417
Total Loans 2,855,479 2,725,023
Allowance for loan losses (35,771 ) (26,148 )
Net Loans 2,819,708 2,698,875
Other real estate and repossessed assets 1,487 1,865
Property and equipment, net 36,538 38,411
Bank-owned life insurance 55,019 55,710
Deferred tax assets, net 1,572 2,072
Capitalized mortgage loan servicing rights 15,403 19,171
Other intangibles 4,561 5,326
Goodwill 28,300 28,300
Accrued income and other assets 56,576 42,751
Total Assets $ 4,168,944 $ 3,564,694
Liabilities and Shareholders' Equity
Deposits
Non-interest bearing $ 1,152,072 $ 852,076
Savings and interest-bearing checking 1,431,841 1,186,745
Reciprocal 557,551 431,027
Time 303,392 376,877
Brokered time 152,889 190,002
Total Deposits 3,597,745 3,036,727
Other borrowings 30,005 88,646
Subordinated debt 39,261 -
Subordinated debentures 39,507 39,456
Accrued expenses and other liabilities 89,334 49,696
Total Liabilities 3,795,852 3,214,525
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: 21,885,368 shares at September 30, 2020<br> and 22,481,643 shares at December 31, 2019 339,408 352,344
Retained earnings 27,538 1,611
Accumulated other comprehensive income (loss) 6,146 (3,786 )
Total Shareholders’ Equity 373,092 350,169
Total Liabilities and Shareholders’ Equity $ 4,168,944 $ 3,564,694

7

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
2020 2020 2019 2020 2019
(unaudited)
Interest Income (In thousands, except per share amounts)
Interest and fees on loans $ 30,393 $ 29,863 $ 34,226 $ 92,020 $ 100,743
Interest on securities available for sale
Taxable 3,450 2,847 2,771 9,356 8,811
Tax-exempt 954 793 319 2,137 1,017
Other investments 237 251 495 854 1,449
Total Interest Income 35,034 33,754 37,811 104,367 112,020
Interest Expense
Deposits 2,062 2,388 6,236 9,150 17,938
Other borrowings and subordinated debt and debentures 1,006 904 703 2,598 2,211
Total Interest Expense 3,068 3,292 6,939 11,748 20,149
Net Interest Income 31,966 30,462 30,872 92,619 91,871
Provision for loan losses 975 5,188 (271 ) 12,884 1,045
Net Interest Income After Provision for Loan Losses 30,991 25,274 31,143 79,735 90,826
Non-interest Income
Service charges on deposit accounts 2,085 1,623 2,883 6,299 8,323
Interchange income 3,428 2,526 2,785 8,411 7,744
Net gains on assets
Mortgage loans 20,205 17,642 5,677 46,687 13,590
Securities available for sale - - - 253 304
Mortgage loan servicing, net (644 ) (3,022 ) (1,562 ) (8,966 ) (4,684 )
Other 1,937 1,598 2,492 5,698 6,862
Total Non-interest Income 27,011 20,367 12,275 58,382 32,139
Non-interest Expense
Compensation and employee benefits 21,954 16,279 16,673 54,742 48,955
Occupancy, net 2,199 2,159 2,161 6,818 6,797
Data processing 2,215 1,590 2,282 6,160 6,597
Furniture, fixtures and equipment 999 1,090 1,023 3,125 3,058
Interchange expense 831 726 891 2,416 2,332
Communications 806 800 733 2,409 2,219
Loan and collection 768 756 714 2,329 1,976
Advertising 589 364 636 1,636 1,935
Legal and professional 566 468 541 1,427 1,281
FDIC deposit insurance 411 430 13 1,211 723
Conversion related expenses 643 346 - 1,045 -
Branch closure costs - 417 - 417 -
Correspondent bank service fees 101 94 100 294 300
Net (gains) losses on other real estate and repossessed assets 46 (9 ) 52 146 (27 )
Other 1,513 1,836 2,029 5,531 6,284
Total Non-interest Expense 33,641 27,346 27,848 89,706 82,430
Income Before Income Tax 24,361 18,295 15,570 48,411 40,535
Income tax expense 4,777 3,523 3,125 9,245 7,979
Net Income $ 19,584 $ 14,772 $ 12,445 $ 39,166 $ 32,556
Net Income Per Common Share
Basic $ 0.90 $ 0.67 $ 0.55 $ 1.78 $ 1.41
Diluted $ 0.89 $ 0.67 $ 0.55 $ 1.76 $ 1.40

8

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Selected Financial Data

September 30,<br><br> <br>2020 June 30,<br><br> <br>2020 March 31,<br><br> <br>2020 December 31,<br><br> <br>2019 September 30,<br><br> <br>2019
(unaudited)
(Dollars in thousands except per share data)
Three Months Ended
Net interest income $ 31,966 $ 30,462 $ 30,191 $ 30,710 $ 30,872
Provision for loan losses 975 5,188 6,721 (221 ) (271 )
Non-interest income 27,011 20,367 11,004 15,597 12,275
Non-interest expense 33,641 27,346 28,719 29,303 27,848
Income before income tax 24,361 18,295 5,755 17,225 15,570
Income tax expense 4,777 3,523 945 3,346 3,125
Net income $ 19,584 $ 14,772 $ 4,810 $ 13,879 $ 12,445
Basic earnings per share $ 0.90 $ 0.67 $ 0.22 $ 0.62 $ 0.55
Diluted earnings per share 0.89 0.67 0.21 0.61 0.55
Cash dividend per share 0.20 0.20 0.20 0.18 0.18
Average shares outstanding 21,881,562 21,890,761 22,271,412 22,481,551 22,486,041
Average diluted shares outstanding 22,114,692 22,113,187 22,529,370 22,776,908 22,769,572
Performance Ratios
Return on average assets 1.90 % 1.54 % 0.54 % 1.56 % 1.42 %
Return on average equity 21.36 17.39 5.54 15.92 14.64
Efficiency ratio ^(1)^ 56.36 53.07 69.32 62.56 63.76
As a Percent of Average Interest-Earning Assets^(1)^
Interest income 3.62 % 3.72 % 4.28 % 4.44 % 4.60 %
Interest expense 0.31 0.36 0.65 0.74 0.84
Net interest income 3.31 3.36 3.63 3.70 3.76
Average Balances
Loans $ 2,925,872 $ 2,913,857 $ 2,766,770 $ 2,776,037 $ 2,786,544
Securities available for sale 891,975 660,126 527,395 488,016 423,255
Total earning assets 3,887,455 3,659,614 3,350,948 3,320,828 3,285,081
Total assets 4,102,318 3,868,408 3,565,829 3,529,744 3,483,296
Deposits 3,559,070 3,303,302 3,066,298 3,040,099 3,023,334
Interest bearing liabilities 2,532,481 2,402,361 2,309,995 2,251,928 2,219,133
Shareholders' equity 364,714 341,606 348,963 345,910 337,162
End of Period
Capital
Tangible common equity ratio 8.23 % 8.03 % 8.40 % 8.96 % 8.71 %
Average equity to average assets 8.89 8.83 9.79 9.80 9.68
Common shareholders' equity per share of common stock $ 17.05 $ 16.23 $ 15.33 $ 15.58 $ 15.13
Tangible common equity per share of common stock 15.55 14.72 13.81 14.08 13.63
Total shares outstanding 21,885,368 21,880,183 21,892,001 22,481,643 22,480,748
Selected Balances
Loans $ 2,855,479 $ 2,866,663 $ 2,718,115 $ 2,725,023 $ 2,722,446
Securities available for sale 985,050 856,280 594,284 518,400 439,592
Total earning assets 3,962,824 3,833,523 3,416,845 3,343,941 3,348,631
Total assets 4,168,944 4,043,315 3,632,387 3,564,694 3,550,837
Deposits 3,597,745 3,485,125 3,083,564 3,036,727 3,052,312
Interest bearing liabilities 2,515,185 2,456,193 2,350,056 2,312,753 2,272,587
Shareholders' equity 373,092 355,123 335,618 350,169 340,245
(1) Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
--- ---

9

Reconciliation of Non-GAAP Financial Measures

Independent Bank Corporation

Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends.  Tangible common equity is used by the Company to measure the quality of capital.

Reconciliation of Non-GAAP Financial Measures
Three Months Ended<br><br> <br>September 30, Nine Months Ended<br><br> <br>September 30,
2020 2019 2020 2019
(Dollars in thousands)
Net Interest Margin, Fully Taxable Equivalent ("FTE")
Net interest income $ 31,966 $ 30,872 $ 92,619 $ 91,871
Add:  taxable equivalent adjustment 258 100 602 319
Net interest income - taxable equivalent $ 32,224 $ 30,972 $ 93,221 $ 92,190
Net interest margin (GAAP) ^(1)^ 3.28 % 3.74 % 3.40 % 3.82 %
Net interest margin (FTE) ^(1)^ 3.31 % 3.76 % 3.42 % 3.83 %
Adjusted Net Income before tax
Income before income tax $ 24,361 $ 15,570 $ 48,411 $ 40,535
Provision for loan losses 975 (271 ) 12,884 1,045
Pre-tax, pre-provision income $ 25,336 $ 15,299 $ 61,295 $ 41,580
(1) Annualized.
--- ---

10

Reconciliation of Non-GAAP Financial Measures (continued)

Independent Bank Corporation

Tangible Common Equity Ratio
September 30,<br><br> <br>2020 June 30,<br><br> <br>2020 March 31,<br><br> <br>2020 December 31,<br><br> <br>2019 September 30,<br><br> <br>2019
(Dollars in thousands)
Common shareholders' equity $ 373,092 $ 355,123 $ 335,618 $ 350,169 $ 340,245
Less:
Goodwill 28,300 28,300 28,300 28,300 28,300
Other intangibles 4,561 4,816 5,071 5,326 5,598
Tangible common equity $ 340,231 $ 322,007 $ 302,247 $ 316,543 $ 306,347
Total assets $ 4,168,944 $ 4,043,315 $ 3,632,387 $ 3,564,694 $ 3,550,837
Less:
Goodwill 28,300 28,300 28,300 28,300 28,300
Other intangibles 4,561 4,816 5,071 5,326 5,598
Tangible assets $ 4,136,083 $ 4,010,199 $ 3,599,016 $ 3,531,068 $ 3,516,939
Common equity ratio 8.95 % 8.78 % 9.24 % 9.82 % 9.58 %
Tangible common equity ratio 8.23 % 8.03 % 8.40 % 8.96 % 8.71 %
Tangible Common Equity per Share of Common Stock:
Common shareholders' equity $ 373,092 $ 355,123 $ 335,618 $ 350,169 $ 340,245
Tangible common equity $ 340,231 $ 322,007 $ 302,247 $ 316,543 $ 306,347
Shares of common stock outstanding (in thousands) 21,885 21,880 21,892 22,482 22,481
Common shareholders' equity per share of common stock $ 17.05 $ 16.23 $ 15.33 $ 15.58 $ 15.13
Tangible common equity per share of common stock $ 15.55 $ 14.72 $ 13.81 $ 14.08 $ 13.63

The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets.  Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.

11

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets ^(1)^
September 30,<br><br> <br>2020 June 30,<br><br> <br>2020 March 31,<br><br> <br>2019 December 31,<br><br> <br>2019 September 30,<br><br> <br>2019
(Dollars in thousands)
Non-accrual loans $ 10,481 $ 12,938 $ 17,454 $ 10,178 $ 7,124
Loans 90 days or more past due and still accruing interest 266 5 - - -
Subtotal 10,747 12,943 17,454 10,178 7,124
Less:  Government guaranteed loans 510 604 676 646 475
Total non-performing loans 10,237 12,339 16,778 9,532 6,649
Other real estate and repossessed assets 1,487 1,569 1,494 1,865 1,789
Total non-performing assets $ 11,724 $ 13,908 $ 18,272 $ 11,397 $ 8,438
As a percent of Portfolio Loans
Non-performing loans 0.36 % 0.43 % 0.62 % 0.35 % 0.24 %
Allowance for loan losses 1.25 1.20 1.20 0.96 0.96
Non-performing assets to total assets 0.28 0.34 0.50 0.32 0.24
Allowance for loan losses as a percent of non-performing loans 349.43 279.60 193.68 274.32 393.26
^(1)^ Excludes loans classified as "trouble debt restructured" that are not past due.
--- ---

Troubled debt restructurings ("TDR")

September 30, 2020
Commercial Retail ^(1)^ Total
(In thousands)
Performing TDR's $ 8,292 $ 37,337 $ 45,629
Non-performing TDR's ^(2)^ 1,203 1,850 ^(3)^ 3,053
Total $ 9,495 $ 39,187 $ 48,682
December 31, 2019
Commercial Retail ^(1)^ Total
(In thousands)
Performing TDR's $ 7,974 $ 39,601 $ 47,575
Non-performing TDR's ^(2)^ 540 2,607 ^(3)^ 3,147
Total $ 8,514 $ 42,208 $ 50,722
(1) Retail loans include mortgage and installment loan segments.
--- ---
(2) Included in non-performing assets table above.
--- ---
(3) 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

Nine months ended<br><br> <br>September 30,
2020 2019
Loans Unfunded<br><br> <br>Commitments Loans Unfunded<br><br> <br>Commitments
(Dollars in thousands)
Balance at beginning of period $ 26,148 $ 1,542 $ 24,888 $ 1,296
Additions (deductions)
Provision for loan losses 12,884 - 1,045 -
Recoveries credited to allowance 2,404 - 3,109 -
Loans charged against the allowance (5,665 ) - (2,894 ) -
Additions included in non-interest expense - 271 - 341
Balance at end of period $ 35,771 $ 1,813 $ 26,148 $ 1,637
Net loans charged against the allowance to average Portfolio Loans 0.16 % (0.01 )%

Capitalization

September 30,<br><br> <br>2020 December 31,<br><br> <br>2019
(In thousands)
Subordinated debt $ 39,261 $ -
Subordinated debentures 39,507 39,456
Amount not qualifying as regulatory capital (485 ) (1,224 )
Amount qualifying as regulatory capital 78,283 38,232
Shareholders’ equity
Common stock 339,408 352,344
Retained earnings 27,538 1,611
Accumulated other comprehensive income (loss) 6,146 (3,786 )
Total shareholders’ equity 373,092 350,169
Total capitalization $ 451,375 $ 388,401

2

Non-Interest Income

Three months ended Nine months ended
September 30, June 30, September 30, September 30,
2020 2020 2019 2020 2019
(In thousands)
Service charges on deposit accounts $ 2,085 $ 1,623 $ 2,883 $ 6,299 $ 8,323
Interchange income 3,428 2,526 2,785 $ 8,411 $ 7,744
Net gains on assets
Mortgage loans 20,205 17,642 5,677 46,687 13,590
Securities - - 0 253 304
Mortgage loan servicing, net (644 ) (3,022 ) (1,562 ) (8,966 ) (4,684 )
Investment and insurance commissions 530 435 450 1,478 1,197
Bank owned life insurance 215 265 301 750 813
Other 1,192 898 1,741 3,470 4,852
Total non-interest income $ 27,011 $ 20,367 $ 12,275 $ 58,382 $ 32,139

Capitalized Mortgage Loan Servicing Rights

Three months ended<br><br> <br>September 30, Nine months ended<br><br> <br>September 30,
2020 2019 2020 2019
(In thousands)
Balance at beginning of period $ 13,773 $ 17,894 $ 19,171 $ 21,400
Originated servicing rights capitalized 4,017 2,157 10,260 4,764
Change in fair value (2,387 ) (3,145 ) (14,028 ) (9,258 )
Balance at end of period $ 15,403 $ 16,906 $ 15,403 $ 16,906

3

Mortgage Loan Activity

Three months ended Nine months ended
September 30, June 30, September 30, September 30,
2020 2020 2019 2020 2019
(Dollars in thousands)
Mortgage loans originated $ 536,502 $ 470,626 $ 329,461 $ 1,318,206 $ 708,621
Mortgage loans sold 417,092 379,048 204,058 1,058,400 490,219
Net gains on mortgage loans 20,205 17,642 5,677 46,687 13,590
Net gains as a percent of mortgage loans sold  ("Loan Sales Margin") 4.84 % 4.65 % 2.78 % 4.41 % 2.77 %
Fair value adjustments included in the Loan Sales Margin 0.50 1.14 0.22 0.81 0.48

Non-Interest Expense

Three months ended Nine months ended
September 30, June 30, September 30, September 30,
2020 2020 2019 2020 2019
(In thousands)
Compensation $ 10,294 $ 9,668 $ 10,327 $ 30,665 $ 30,993
Performance-based compensation 8,310 3,809 3,214 14,240 7,730
Payroll taxes and employee benefits 3,350 2,802 3,132 9,837 10,232
Compensation and employee benefits 21,954 16,279 16,673 54,742 48,955
Occupancy, net 2,199 2,159 2,161 6,818 6,797
Data processing 2,215 1,590 2,282 6,160 6,597
Furniture, fixtures and equipment 999 1,090 1,023 3,125 3,058
Interchange expense 831 726 891 2,416 2,332
Communications 806 800 733 2,409 2,219
Loan and collection 768 756 714 2,329 1,976
Advertising 589 364 636 1,636 1,935
Legal and professional fees 566 468 541 1,427 1,281
FDIC deposit insurance 411 430 13 1,211 723
Conversion related expenses 643 346 - 1,045 -
Amortization of intangible assets 255 255 272 765 817
Supplies 126 203 163 513 474
Branch closure costs - 417 - 417 -
Correspondent bank service fees 101 94 100 294 300
Costs related to unfunded lending commitments 41 111 154 271 341
Provision for loss reimbursement on sold loans 46 77 33 160 179
Net (gains) losses on other real estate and repossessed assets 46 (9 ) 52 146 (27 )
Other 1,045 1,190 1,407 3,822 4,473
Total non-interest expense $ 33,641 $ 27,346 $ 27,848 $ 89,706 $ 82,430

4

Average Balances and Tax Equivalent Rates

Three Months Ended<br><br> <br>September 30,
2020 2019
Average<br><br> <br>Balance Interest Rate ^(2)^ Average<br><br> <br>Balance Interest Rate ^(2)^
(Dollars in thousands)
Assets
Taxable loans $ 2,918,946 $ 30,323 4.14 % $ 2,779,132 $ 34,151 4.89 %
Tax-exempt loans ^(1)^ 6,926 88 5.05 7,412 94 5.03
Taxable securities 733,977 3,450 1.88 371,157 2,771 2.99
Tax-exempt securities^(1)^ 157,998 1,194 3.02 52,098 400 3.07
Interest bearing cash 51,181 14 0.11 56,923 229 1.60
Other investments 18,427 223 4.81 18,359 266 5.75
Interest Earning Assets 3,887,455 35,292 3.62 3,285,081 37,911 4.60
Cash and due from banks 52,676 34,598
Other assets, net 162,187 163,617
Total Assets $ 4,102,318 $ 3,483,296
Liabilities
Savings and interest- bearing checking $ 1,922,971 686 0.14 $ 1,487,820 2,818 0.75
Time deposits 498,796 1,376 1.10 658,426 3,418 2.06
Other borrowings 110,714 1,006 3.61 72,887 703 3.83
Interest Bearing Liabilities 2,532,481 3,068 0.48 2,219,133 6,939 1.24
Non-interest bearing deposits 1,137,303 877,088
Other liabilities 67,820 49,913
Shareholders’ equity 364,714 337,162
Total liabilities and shareholders’ equity $ 4,102,318 $ 3,483,296
Net Interest Income $ 32,224 $ 30,972
Net Interest Income as a Percent of Average Interest Earning Assets 3.31 % 3.76 %
(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
--- ---

5

Average Balances and Tax Equivalent Rates

Nine Months Ended<br><br> <br>September 30,
2020 2019
Average<br><br> <br>Balance Interest Rate Average<br><br> <br>Balance Interest Rate
(Dollars in thousands)
Assets
Taxable loans $ 2,861,776 $ 91,804 4.28 % $ 2,695,435 $ 100,513 4.98 %
Tax-exempt loans ^(1)^ 7,266 273 5.02 7,856 291 4.95
Taxable securities 579,704 9,356 2.15 384,291 8,811 3.06
Tax-exempt securities^(1)^ 114,187 2,682 3.13 52,794 1,275 3.22
Interest bearing cash 52,265 160 0.41 51,260 655 1.71
Other investments 18,404 694 5.04 18,359 794 5.78
Interest Earning Assets 3,633,602 104,969 3.85 3,209,995 112,339 4.67
Cash and due from banks 49,345 34,032
Other assets, net 163,503 166,037
Total Assets $ 3,846,450 $ 3,410,064
Liabilities
Savings and interest- bearing checking $ 1,764,933 3,121 0.24 $ 1,421,114 7,787 0.73
Time deposits 529,248 6,029 1.52 670,479 10,151 2.02
Other borrowings 121,195 2,598 2.86 72,233 2,211 4.09
Interest Bearing Liabilities 2,415,376 11,748 0.65 2,163,826 20,149 1.24
Non-interest bearing deposits 1,016,286 862,929
Other liabilities 62,984 44,323
Shareholders’ equity 351,804 338,986
Total liabilities and shareholders’ equity $ 3,846,450 $ 3,410,064
Net Interest Income $ 93,221 $ 92,190
Net Interest Income as a Percent of Average Interest Earning Assets 3.42 % 3.83 %
(1) Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

6

  Commercial Loan Portfolio Analysis as of September 30, 2020
Total Commercial Loans
Watch Credits Percent of<br><br> <br>Loan
Loan Category All Loans Performing Non-accrual Total Category in<br><br> <br>Watch Credit
(Dollars in thousands)
Land $ 14,695 $ 119 $ 554 $ 673 4.6 %
Land Development 10,803 37 - 37 0.3
Construction 109,048 36 - 36 0.0
Income Producing 334,140 5,625 - 5,625 1.7
Owner Occupied 351,951 28,235 769 29,004 8.2
Total Commercial Real Estate Loans $ 820,637 $ 34,052 1,323 $ 35,375 4.3
Other Commercial Loans $ 531,153 $ 22,117 1,164 $ 23,281 4.4
Total non-performing commercial loans $ 2,487

Commercial Loan Portfolio Analysis as of December 31, 2019

Total Commercial Loans
Watch Credits Percent of<br><br> <br>Loan
Loan Category All Loans Performing Non-accrual Total Category in<br><br> <br>Watch Credit
(Dollars in thousands)
Land $ 11,235 $ 275 $ 735 $ 1,010 9.0 %
Land Development 12,899 - - - 0.0
Construction 97,463 - - - 0.0
Income Producing 409,897 15,347 - 15,347 3.7
Owner Occupied 323,694 35,485 295 35,780 11.1
Total Commercial Real Estate Loans $ 855,188 $ 51,107 1,030 $ 52,137 6.1
Other Commercial Loans $ 311,507 $ 20,580 347 $ 20,927 6.7
Total non-performing commercial loans $ 1,377

7

Exhibit 99.3

Q3 EARNINGSIndependent Bank Corporation (IBCP)Conference Call – October 27, 2020

Cautionary note regarding forward-looking statements  This presentation contains forward-looking statements about Independent Bank Corporation. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of Independent Bank Corporation. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. The COVID-19 pandemic is adversely affecting Independent Bank Corporation, its customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect Independent Bank Corporation’s revenues and the values of its assets and liabilities, reduce the availability of funding from certain financial institutions, lead to a tightening of credit, and increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices could affect Independent Bank Corporation in substantial and unpredictable ways. Independent Bank Corporation’s results could also be adversely affected by changes in interest rates; further increases in unemployment rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of its investment securities; legal and regulatory developments; litigation; increased competition from both banks and non-banks; changes in the level of tariffs and other trade policies of the United States and its global trading partners; changes in customer behavior and preferences; breaches in data security; failures to safeguard personal information; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk. Certain risks and important factors that could affect Independent Bank Corporation's future results are identified in its Annual Report on Form 10-K for the year ended December 31, 2019 and other reports filed with the SEC, including among other things under the heading “Risk Factors” in such Annual Report on Form 10-K. Any forward-looking statement speaks only as of the date on which it is made, and Independent Bank Corporation undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise.  2

Agenda  Formal Remarks.William B. (Brad) Kessel, President and Chief Executive OfficerGavin A. Mohr, 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.  3

COVID-19 ResponseSupporting Employees, Clients & Communities   4  Employees  Clients & Communities      Work from home. Providing the technology, culture, and operational infrastructure for the workforce to work remotely as needed.Granting additional sick and vacation time. Our bank branch lobbies opened back up in mid-June 2020 (they had been closed since mid-March 2020).Complying with applicable Michigan requirements (MI Safe Start Plan, etc.).Performing additional routine and on-demand sanitization of facilities using enhanced methods.  Pro-actively reaching out to our business customers to understand needs. Supporting local businesses. Closed over $250 million in SBA Payroll Protection Program (PPP) loans in 2020. Working with business and consumer customers on temporary payment relief.  When it became apparent that the Coronavirus (COVID-19) pandemic could pose a threat to our people and business, we activated our Business Continuity and Crisis Communication Core Teams to take early and decisive action

Historical Financial Data  5  Excluding the impact of the $5.96 million remeasurement of net deferred tax assets in 2017, net income is $26.440 million, ROA is 1.00%; and ROE is 10.10%.

3Q 2020 Financial Highlights  Income StatementPre-tax, pre-provision income was $25.3 million in the third quarter of 2020 compared to $15.3 million in the third quarter of 2019.Net income of $19.6 million, or $0.89 per diluted share compared to $12.4 million, or $0.55 per diluted share for the year ago quarter.Net interest income of $32.0 million, an increase of $1.1 million, or 3.5% from the year ago quarter.Mortgage loan originations of $536.5 million, also, $417.1 million in mortgage loans sold with $20.2 million in net gains on mortgage loans compared to $5.7 million in net gains from the year ago quarter. Mortgage servicing rights change (the “MSR Change”) due to price of negative $1.1 million ($0.04 per diluted share, after taxes) compared to negative $2.2 million ($0.08 per diluted share, after taxes) in the third quarter of 2019. Provision for loan losses of $1.0 million compared to a credit of $0.3 million in the third quarter of 2019. Included within the third quarter 2020 provision for loan losses is a $2.1 million increase in the subjective/qualitative reserve.Balance Sheet/CapitalSecurities available for sale increased by $128.8 million.Total portfolio loans declined by $11.2 million.Total deposits grew by $112.6 million.Total stockholder’s equity increased by $18.0 million and tangible book value per share increased by 5.6% to $15.55 per share at September 30, 2020. Paid a 20 cent per share cash dividend on common stock on August 14, 2020.  6

Our Michigan Markets  7  Source: S&P Global Market Intelligence and Company documents. Map does not include loan production offices. Deposit market share data based on FDIC Summary of Deposits Annual Survey as of June 30, 2020.Note: Loan and deposit balances exclude the loans and deposits (such as brokered deposits) that are not clearly allocable to a certain market region. Loans specifically exclude: $166 million of Ohio mortgage loans, $55 million of resort loans and $19 million of purchased mortgage loans.      94          96          75          69      Michigan’s community bank. #1 deposit market share amongst Michigan banks < $10B in assets and #10 deposit market share overall. Top 10 market share in 20 of 23 counties of operation – with opportunity to gain market share in attractive Michigan markets.Low cost and stable deposit base in East/”Thumb” and Central regions utilized to fund loan growth in the West and Southeast regions (higher growth & more metropolitan).Eight bank branches were closed (two on June 26, 2020 and six on July 31, 2020). The closures by region were: 3 in the East/”Thumb”, 2 in the Central and 1 each in the West, Northwest and Southeast. These closures reduce the total bank branch footprint to 60.New full service bank branch to open in Brighton, Michigan in 4Q’20.11 Loan Production Offices (LPOs), including 9 throughout Michigan and 2 in Ohio (residential mortgage lending only).    Branches (60)    East / “Thumb”Branches: 20Deposits: $1,113MLoans: $485M  SoutheastBranches: 6Deposits: $446MLoans: $750M  CentralBranches: 10Deposits: $504MLoans: $212M  WestBranches: 20Deposits: $1,021MLoans: $836M  NorthwestBranches: 4Deposits: $296MLoans: $332M

Select Economic Statistics  Unemployment Trends (%)  Total Employees (Thousands)  Regional Average Home Sales Price (Thousands)  Annualized Home Sales (Thousands)  8  Elevated unemployment rates due to COVID-19  As of Aug ‘20  Stable prices in key markets  Strong job growth prior to COVID-19  Slowing Michigan home sales

Low Cost Deposit Franchise Focused on Core Deposit Growth  9  Substantially core funding – $3.1 billion of non-maturity deposit accounts (86.3% of total deposits).Total deposits increased $598.1 million (21.0%) since 12/31/19 (excluding brokered) with non-interest bearing up $300.0 million, savings and interest- bearing checking up $245.1 million, reciprocal up $126.5 million and time down $73.5 million.Deposits by Customer Type:Retail – 50.8%Commercial – 34.9%Municipal – 14.3%  Deposit Composition – 9/30/20  Deposit Highlights  Michigan Deposit Market Share  $3.6B  Core Deposits: 86.3%  Cost of Deposits (%)/Total Deposits ($B)  Note: Core deposits defined as total deposits less maturity deposits. Market share data as of 6/30/20.        Deposits in  Mkt.  Market  Share  Rank  Institution  ($M)  (%)  1  JPMorgan Chase & Co.   $63,501  22.3%  2  Comerica Inc.   $35,492  12.5%  3  Bank of America Corporation   $29,285  10.3%  4  Fifth Third Bancorp   $21,632  7.6%  5  PNC Financial Services Group   $21,220  7.5%  6  TCF Financial Corp. $20,073  7.1%  7  Huntington Bancshares Inc.   $19,670  6.9%  8  Flagstar Bancorp Inc.   $17,184  6.0%  9  Citizens Financial Group Inc.   $6,372  2.2%  10  Independent Bank Corp.   $3,561  1.3%  Total for Institutions in Market  $284,300

Diversified Loan PortfolioFocused on High Quality Growth  10  Lending Highlights  Note: Portfolio loans exclude loans HFS.  Portfolio loan changes in 3Q’20:Commercial – decreased $11.2 million. PPP loan balances totaled $261.2 million at September 30, 2020.Mortgage – decreased $17.6 million due to portfolio pay-downs and higher salable mix in new loan origination volume. Installment – increased $17.6 million.Mortgage loan portfolio weighted average FICO and LTV of 747 and 71%, respectively and average balance of $189,935.Installment weighted average FICO of 757 and average balance of $21,264.Commercial loan rate mix:62% fixed / 38% variable.Indices – 60% tied to Prime, 37% tied to LIBOR and 3% tied to a US Treasury rate.Mortgage loan (including HECL) rate mix: 46% fixed / 54% adjustable or variable. Indices – 18% tied to Prime, 64% tied to LIBOR and 18% tied to a US Treasury rate  Loan Composition – 9/30/20  $3.0B  Yield on Loans (%)/Total Portfolio Loans ($B)

COVID-19 Programs – Loan Forbearances  11  Highlights  Loan Forbearances    The table above reflects the status of loan forbearances as of September 30, and June 30, 2020. The percent of the loan portfolio is based on loan dollars.Loan Forbearances:Forbearance period is generally three months for mortgage and installment loans and three or six months for commercial loans. Retail (mortgage and installment) loan forbearances are primarily principal & interest deferrals.Commercial loan forbearances are primarily principal deferrals only.Overall forbearance requests peaked in early June 2020 and have since significantly abated.   Loan Type  9/30/20      6/30/20      % change vs. prior quarter      #  $ (000’s)  % of portfolio  #  $ (000's)  % of portfolio  #  $  Commercial  17  $25,105  1.9%  386  $210,486  15.4%  (95.6)%   (88.1)%   Mortgage  197  32,091  3.1%  388  81,212  7.8%  (49.2)%   (60.5)%   Installment  97  2,631  0.5%  280  7,459  1.6%  (65.4)%   (64.7)%    Total  311  $59,827  2.1%  1,054  $299,157  10.4%  (70.5)%   (80.0)%                              Loans serviced for others   416    $66,279    2.3%   773    $114,839    4.2%  (46.2)%   (42.3)%

COVID-19 Programs – Paycheck Protection Program (“PPP”)  12  Highlights  PPP Loan Portfolio  The table above reflects the status of PPP loans as of September 30, and June 30, 2020.Paycheck Protection Program:Forgiveness applications began to be submitted to the SBA in August 2020. SBA generally has 90 days to process forgiveness applications.SBA recently announced a streamlined forgiveness application for PPP loans $50,000 or less. At September 30, 2020 such loans represent $25.1 million (9.6%) but 1,214 (57.3%) in number of the total PPP loan portfolio.Forgiveness application approvals and payments from the SBA began to be received in October 2020.Expect remaining unaccreted fees at September 30, 2020 to be accreted into interest income over the next 15 months with the heaviest activity over the next three quarters.   Description  9/30/20    6/30/20      #  ($ in 000’s)  #  ($ in 000’s)  Loans outstanding at quarter-end  2,117    $ 261,182   2,012    $ 259,351   Average loans outstanding for the quarter  n/a   261,543   n/a   191,061    Forgiveness applications submitted to the SBA  197    37,223   n/a   n/a   Forgiveness applications processed and approved by the SBA  0   0   n/a   n/a   Fees accreted into interest income during the quarter  n/a    1,321   n/a    977   Unaccreted fees remaining at quarter-end  n/a   6,494   n/a   7,731   Average loan yield for the quarter  n/a   3.04%   n/a   3.05%

Loan Portfolio Concentrations by Industry   Percentage concentrations are based on the entire commercial portfolio of $1.352 billion as of September 30, 2020.  Loans by Industry as a % of Total Commercial Loans ($ in millions)  Investor RE by Collateral Type as a % of Total Commercial Loans ($ in millions)  $931 million, or 68.9% of the commercial loan portfolio is C&I or owner occupied, while $421 million, or 31.1% is investment real estate.   13  Commercial Loan Portfolio Concentrations

Investment Securities Portfolio  14  Highlights  High quality, liquid, diverse portfolio with relatively short duration.Fair value of $985.1 million, an increase of $128.8 million in 3Q’20.Net unrealized gain of $17.0 million, representing 1.76% of amortized cost.Portfolio ratings: 65% AAA rated (or backed by the U.S. Government); 20% AA rated; 6% A rated; 6% BAA rated and 3% unrated.2.64 year estimated average duration with a weighted average yield of 2.17% (with TE gross up).Approximately 26% of the portfolio is variable rate.    $985.1M  Investment Portfolio by Type (9/30/20)  Investment Securities Activity – 3Q’20    Agency MBS, CMO & CMBS   Municipal/Govern-ment   Asset-backed  Private Label Mortgage    Corp.    Total     (Dollars in 000’s)            Purchases (at cost)  $75,855  $41,708  $78,994  $3,854  $12,505  $212,916  Repayments (a)  33,626  5,352  42,901  1,526  2,118  86,888  Sales  --  --  --  --  --  --                Purchases in 3Q’20              Yield (TE)  1.39%  2.35%  1.29%  1.63%  3.07%  1.64%  Duration  2.06%  10.13%  0.56%  4.09%  5.70%  3.34%  (a) Total repayments include $1.365 million of repayments on Treasury/Agency securities not shown in the table.

Strong Capital Position  15   Source: S&P Global Market Intelligence and Company documents.Note: Company closed acquisition of TCSB Bancorp, Inc. in Q2 ‘18.  TCE / TA (%)   Leverage Ratio (%)   CET1 Ratio (%)   Total RBC Ratio (%)   IBCP Target 8.50% - 9.50 %  Capital retention to support (i) organic growth and (ii) acquisitions; and Return of capital through (i) strong and consistent dividend and (ii) share repurchases  Long-Term Capital Priorities:  Strong Capital Position

HighlightsInterest rate sensitivity profile of the loan and securities portfolios, in combination with a low cost core deposit base, positions us as slightly asset sensitive.Net interest income increased $1.5 million, or 4.9%, in 3Q’20 vs. 2Q’20 due primarily to a $227.8 million increase in average interest earning assets that was only partially offset by a five basis point decline in the net interest margin.Net interest margin was 3.31% during the third quarter of 2020, compared to 3.76% in the year-ago quarter and 3.36% in the second quarter of 2020.  Yields, NIM and Cost of Funds (%)  Net Interest Income ($ in Millions)   Net Interest Margin/Income  16

Linked Quarter Analysis  17  Q3’20 NIM Changes  Linked Quarter Average Balances and FTE Rates  Yield on average interest-earning assets declined 10 basis points.Loan yields were generally unchanged. Earning asset growth was primarily in investments where the overall yield declined by 26 basis points due to new investments being added at lower interest rates.Commercial loan yield benefited from the acceleration of $0.5 million of discount on a 3Q’20 payoff (this loan had been purchased from the FDIC many years ago).Funding costs declined by 7 basis points due primarily to the repricing of maturing time deposits.  3Q’20 Highlights

Strong Non-interest Income  18  Diverse sources of non-interest income – representing 45.8% of revenue in 3Q’20.COVID-19 has adversely impacted service charges on deposits. In addition, we have suspended certain electronic banking fees due to the enhanced need for customers to access this channel.Mortgage banking: $20.2 million in net gains on mortgage loans in 3Q’20 vs. $5.7 million in the year ago quarter. A combination of higher sales volumes, stronger profit margins and fair value adjustments on the pipeline led to this increase.$536.5 million in mortgage loan originations in 3Q’20 vs. $329.5 million in 3Q’19 and $470.6 million in 2Q’20.Purchase / Refinance mix in 2019 was 70% / 30% vs. 3Q’20 mortgage loan origination mix of 50% / 50% as refinance activity continues to be robust. Despite COVID-19 related challenges, home purchase activity is solid in our markets.3Q’20 mortgage loan servicing includes a $1.1 million ($0.04 per diluted share, after tax) decrease in fair value adjustment due to price compared to a decrease of $2.2 million ($0.08 per diluted share, after tax) in the year ago quarter.       Source: Company documents.  $58.4M  2020 YTD Non-interest Income (millions)  Non-interest Income Trends ($M)  Highlights

Focus on Improved Efficiency   19  Source: Company documents.  Non-interest Expense ($M)  Highlights   Efficiency Ratio (4 quarter rolling average)   Continued focus on expense control and driving positive operating leverage. 3Q’20 performance based compensation increased $4.5 million over 2Q’20 due primarily to an increase in the accrual for the annual management incentive compensation plan as a result of significant improvements in performance metrics reflecting the strong 3Q’20 results.3Q’20 non-interest expense included $0.64 million of conversion related expenses (associated with core data processing conversion that is in process).Eight branch closings in June/July 2020 with anticipated annual savings in excess of $1.3 million.Opportunities exist to gain additional efficiencies as we continue to optimize our delivery channels.

Credit Quality Summary  Note 1: Non-performing loans and non-performing assets exclude troubled debt restructurings that are performing.Note 2: 12/31/16 30 to 89 days delinquent data excludes $1.63 million of payment plan receivables that were held for sale.  Non-performing Assets ($ in Millions)  ORE/ORA ($ in Millions)  Non-performing Loans ($ in Millions)  30 to 89 Days Delinquent ($ in Millions)  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 $4.9 million at 9/30/20.A majority of our TDRs are performing under their modified terms but remain in TDR status for the life of the loan.92.7% of TDRs are current as of 9/30/20.Commercial TDR Statistics:30 loans with $9.5 million book balance.87.3% performing.WAR of 5.23% (accruing loans).Well seasoned portfolio; over 96% of accruing loans are not only performing but have been for over a year since modification.Retail TDR Statistics:470 loans with $39.2 million book balance.95.3% performing.WAR of 4.99% (accruing loans).Well seasoned portfolio; approximately 96% of accruing loans are not only performing but have been for over a year since modification.  TDRs ($ in Millions)  93% of TDRs are Current  22

Note: Dollars all in millions.   Provision for Loan Losses   Loan Net Charge-Offs/Recoveries   Allowance for Loan Losses  Credit Cost Summary  23

Incurred Loss Model vs CECL  24  Incurred vs. CECL ($ in Thousands)  9/30/20 “As If” ACL and percent of loans calculated at midpoint of incremental range with additional $9.0 million at Day 1 and $9.0 million at Q3’20.  % Loans  0.96%  1.25%  1.57%(1)  “As-if CECL” Illustrative Only    Incurred Loss Build  We delayed adopting CECL under the CARES Act:Increased visibility into the economic (local, regional, national) impact of the COVID-19 pandemic. Unemployment forecast sources exhibiting wide disparity.Relationship between unemployment and credit impacted by non-traditional factors, including “stay at home” executive orders, increased unemployment eligibility as well as supplemental unemployment benefits. Incurred Model:Reserve build with Q3 provision expense of $1.0 million. September 30, 2020 allowance for loan losses of $35.8 million or,1.25% of portfolio loans;1.44% of portfolio loans excluding PPP loans and remaining Traverse City State Bank acquired loans; and349% of non-performing loans.Qualitative/subjective allocation increased $2.1 million in 3Q’20 (and by $10.7 million in the first nine months of 2020) due to impact of: economic shock, high unemployment claims, “stay at home” executive orders and the level of forbearance requests.CECL:CECL day 1 impact range is $8.0 million to $10.0 million with $1.0 million to $2.0 million for unfunded commitments.“As if” CECL in Q3’20: $8.0 million to $10.0 million with $0.5 million to $1.5 million for unfunded commitments.CECL Model Details:Discounted cash flow model with fourteen loan segments.Probability of default and loss given default based on long-term average for commercial loans and regression for mortgage and installment loans.Regression uses two year forecast / two year reversion to mean driven primarily by unemployment.Unemployment data: median of Bloomberg survey: 8.7% Q3, falls to 8.1% in Q4, reaches 6.4% by Q4, 2021.Q factors: model maturity, economic shock and forbearance activity.Slightly lower loan balances (excluding PPP loans) at September 30, 2020.  Allocation of Incurred ALLL                  $26,148   $35,771   $44,771  (1)  $9,623   $8,000  to  $10,000      $0  12/31/19  ALLL  Reserve  Build  Under  Incurred Loss  9/30/20  Incurred  Loss  Reserve  "As If"  Day 1  CECL  Reserve  "As If"  Incremental  9/30 CECL  Reserve Change  9/30/20  "As If"  ACL

2020 Outlook Update  Category  Outlook  Lending  Continued growthIBCP goal of mid- single digit (approximately 7%) overall loan growth in 2020, 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 2020. This growth forecast also assumes a stable Michigan economy.Q3 Update: Loans decreased $11.2 million in the quarter but are up $130.5 million YTD due primarily to PPP balances. The year end total portfolio loan balance and 4Q’20 activity will primarily reflect the pace of PPP loan forgiveness.   Net Interest Income  Growth driven primarily by higher portfolio loan balances, expect total deposits (including brokered time) to grow by approximately 5% in 2020 IBCP goal of approximately a 2% increase in net interest income (NII) over 2019. Expect the net interest margin (NIM) to be relatively stable in 2020 and comparable to the 4Q’19 level but lower than the full year 2019 NIM. The forecast assumes no changes in the target federal funds rate in 2020 and long-term interest rates up very slightly over year end 2019 levels. Q3 Update: The interest rate environment in the first nine months of 2020 has been very different than the original forecast. Actual short term rates declined 150 bps and long-term rates declined by approximately 100 bps. Actual NIM compression of 0.05% on a linked quarter basis. We anticipate NIM to be relatively stable for the last quarter of 2020 (comparable to 3Q’20) as the impact of lower rates slows, yields on PPP loans improve (due to increased accretion of fees) and excess liquidity has been invested.  Provision for Loan Losses  Steady asset quality metricsVery difficult area to forecast. Future provision levels under CECL will be particularly sensitive to loan growth and mix, projected economic conditions, watch credit levels and loan default volumes. The allowance as a percentage of total loans was at 0.96% at 12/31/19. The initial (effective 1/1/2020) CECL adjustment is now expected to be approximately $8 million to $10 million. This revised lower range (compared to the 3Q’19 CECL estimate) primarily reflects the following factors: (i) a decline in commercial loan watch credits; (ii) a 4Q’19 update of the credit scoring of the retail loan portfolio reflecting improved scores; (iii) slightly higher prepayment rates in the retail loan portfolio; (iv) methodology refinements in the retail construction loan portfolio; and (v) changes in specific reserves. This CECL adjustment is still subject to certain final review procedures that will be completed in 1Q’20. A full year 2020 provision (expense) for loan losses of approximately 0.15% to 0.20% of average total portfolio loans would not be unreasonable.Q3 Update: We opted to delay implementation of CECL as described earlier. Actual YTD 2020 provision of $12.9 million (or 0.60% annualized of average total loans). This provision includes an increase in the qualitative/subjective reserve under the incurred method of $10.7 million (or 0.50% annualized of average total loans), due to the economic shock from the COVID-19 pandemic, elevated unemployment and forbearance activity. Future provision levels will depend on how deep and how long this economic disruption lasts and the impact on the loan portfolio. 4Q’20 provision will primarily depend on level of net loan charge-offs, new loan defaults and new forbearance activity (all were low in 3Q’20).  Non-interest Income  IBCP forecasted 2020 quarterly range of $11 million to $13.5 million with the total for the year up 3% to 4% from 2019 actual of $47.7 millionExpect mortgage loan origination volumes in 2020 to be down by approximately 15% due primarily to a decline in refinance activity. Expect overall mortgage banking revenues (gain on sale and mortgage loan servicing) to improve in 2020 due to not having any fair value write downs due to price for MSRs. Expect service charges on deposits and interchange income in 2020 to be collectively comparable to 2019 (i.e. a decline in servicing charges on deposits due to lower NSF fees to be largely offset by an increase in interchange income). Q3 Update: Actual non-interest income of $27.0 million was well above the high end of the range of $13.5 million. Very strong 3Q’20 mortgage loan origination volumes due to heavy refinance activity and solid purchase activity. $20.2 million in gains on mortgage loans were partially offset by $1.1 million of negative MSR fair value change due to price. Expect the last quarter of 2020 to be slightly above the high end of the forecasted range.  Non-interest Expenses  IBCP forecasted 2020 quarterly range of $27.5 to $28.5 million with the total for the year up very slightly (less than 1%) from the 2019 actual of $111.7 million.Expect total compensation and employee benefits to be slightly lower in 2020 compared to 2019 due primarily to a reduction in incentive compensation. Most other categories of non-interest expense expected to have small (1% to 2%) increases.Q3 Update: Actual non-interest expenses of $33.6 million were well above the high end of the range due primarily to an increased accrual for incentive compensation due to strong YTD financial performance and $0.6 million of conversion related expenses. Expect these total expenses to be slightly above the high end of the range outlined above for the last quarter of 2020.  Income Taxes  Approximately a 20% effective income tax rate in 2020. This assumes a 21% statutory federal corporate income tax rate during 2020.Q3 Update: 19.6% actual effective income tax rate. Reaffirm approximately 20% effective rate for the last quarter of 2020.  Share Repurchases  2020 share repurchase authorization at approximately 5% of outstanding shares. Expect total share repurchases in 2020 at just above the mid-point of this authorization.Q3 Update: Share repurchase activity initially ceased on March 16, 2020. Share repurchase plan being reactivated effective October 30, 2020.  25

Strategic Initiatives  26    Improve net interest income via balanced loan growth, disciplined risk adjusted loan pricing and active management of deposit pricing. Innovative and targeted customer acquisition, retention and cross sales strategies leveraging data analytics, inside sales staff, and intra-company referrals with strategic business unit partners.Add new customers and grow revenue through outbound calling.Add new customers and grow revenue through the addition of new talented sales professionals in our existing markets. Supplement our organic growth initiatives via selective and opportunistic bank acquisitions and branch acquisitions.    Growth      Completion of core data processing provider contract.On-going branch optimization: including assessing existing locations; new locations; service hours; staffing; workflow; and our leveraging of existing technology. Modernize branch delivery technology/systems.Expand Digital Branch (Call Center) services.All business lines and departments: streamline/automate operating processes and workflows Build/enhance dashboard reporting and business intelligence.   Process Improvement & Cost Controls      We recognize that the path to organizational success is through the success of each and every one of our team members. Accordingly we encourage and support the professional development of our colleagues through our IB Leadership Program, mentoring and other initiatives. We are passionate about our desire to ensure that our team members are empowered and supported in a way that will best position them to serve our customers. We believe that if we are committed to the well-being of our team members, and recognize and reward their contributions, they will ensure our success.   Talent Management       Maintain strong, high quality, capital levels – augmented by consistent earnings. Maintain excellent asset quality and strong proactive monitoring.Active liquidity and interest rate risk monitoring and management.Strong, independent and collaborative risk management, utilizing 3 layers of defense (business unit, risk management and internal audit). Effective operational controls with special emphasis on cyber security, fraud prevention, regulatory compliance, crisis communications and business continuity plan.Effective working relationships with banking regulators and other key outside oversight partners.   Risk Management

Q&A and Closing Remarks  Question and Answer SessionClosing RemarksThank you for attending!NASDAQ: IBCP  27

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