Equibles

8-K

INDEPENDENT BANK CORP /MI/ (IBCP)

8-K 2020-07-28 For: 2020-07-28
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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: July 28, 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> <br>Grand Rapids, Michigan<br><br> <br>(Address of principal executive office) 49525<br><br> <br>(Zip Code)
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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 July 28, 2020, Independent Bank Corporation issued a press release announcing its financial results for the quarter ended June 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.
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99.1 Press release dated July 28, 2020.
99.2 Supplemental data to the Registrant’s press release dated July 28, 2020.
99.3 Earnings conference call presentation.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

INDEPENDENT BANK CORPORATION
(Registrant)
Date July 28, 2020 By /s/ Robert N. Shuster
Robert N. Shuster, Principal Financial Officer

Exhibit 99.1

News Release

Independent Bank Corporation

4200 East Beltline

Grand Rapids, MI 49525

616.527.5820

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

INDEPENDENT BANK CORPORATION REPORTS

2020 SECOND QUARTER RESULTS

GRAND RAPIDS, Mich., July 28, 2020 - Independent Bank Corporation (NASDAQ: IBCP) reported second quarter 2020 net income of $14.8 million, or $0.67 per diluted share, versus net income of $10.7 million, or $0.46 per diluted share, in the prior-year period.  For the six months ended June 30, 2020, the Company reported net income of $19.6 million, or $0.88 per diluted share, compared to net income of $20.1 million, or $0.85 per diluted share, in the prior-year period.  The increase in second quarter 2020 earnings as compared to 2019 primarily reflects an increase in non-interest income that was partially offset by a decline in net interest income and increases in the provision for loan losses, non-interest expense and income tax expense.  The slight decline in year-to-date 2020 earnings as compared to 2019 primarily reflects a decline in net interest income and increases in the provision for loan losses and non-interest expense that were partially offset by an increase in non-interest income and a decrease in income tax expense.

Before discussing the 2020 financial results in greater detail, the following is an update on the impact to our organization of the COVID-19 pandemic, which continues to cause significant hardship for many of our customers and communities in a variety of ways. That is especially true for those who have been infected by the virus and suffered through the health issues that it has caused.  Our thoughts are with those who have been directly impacted, and we also extend our appreciation to those who have aided and supported them.

The Company continues to respond to the challenges of the current environment. 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 to mid-June we limited our branch lobbies to appointment only and kept drive-through windows open.  In mid-June our bank branch lobbies fully reopened.  With the ability to use drive<br> through service, ATMs or our electronic banking solutions there was minimal disruption to customers.  In addition, our flexible operating network allowed us to efficiently redeploy our associates, as necessary, to high volume areas to fulfill<br> customer requests into our call center, requests for consumer and commercial loan payment relief and mortgage financing requests.
• 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 are required to work remotely.  We currently have<br> approximately 40% 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 protective processes to put both customers and staff at<br> ease.  We continue to comply with the Governor of Michigan’s “Safe at Home” executive orders and “MI Safe Start Plan” as they apply to our business.
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1

• 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. As of June 30, 2020 we had active forbearance agreements with 259<br> commercial customers with $210.5 million in loans, 668 retail (mortgage and installment loan) customers with $88.7 million in loans, and 773 customers with $114.8 million within our mortgage loans sold and serviced for others. These dollar<br> amounts represent 15.4%, 5.9% and 4.2% of the related total loan portfolio balances. As of July 23, 2020 the active forbearance agreements had changed as follows: 260 commercial customers with $211.8 million in loans, 524 retail customers<br> with $71.0 million in loans, and 639 customers with $98.2 million within our mortgage loans sold and serviced for others. The level of these loans are down after peaking in mid-June 2020, as many customers economic situations have improved,<br> allowing them to pay their loans current. The forbearance terms are flexible enough to meet the specific needs of each customer, while protecting the safety and soundness of the Company.
• U.S. Small Business Administration (“SBA”) Payroll Protection Program (“PPP”) – Our response, and focus on this vital program, shows our commitment to the communities we serve. We built an effective process to manage the high volume of<br> applications that we received and processed.  Customer demand for this program was extraordinary.  As of June 30, 2020, we had 2,012 PPP loans outstanding with a total balance of $259.4 million.  The average balance of PPP loans in the second<br> quarter of 2020 was $191.1 million with an average yield of 3.05% (including the accretion of approximately $1.0 million of net fees).  The PPP loan portfolio reduced the average yield on interest-earning assets by an estimated 0.04% in the<br> second quarter of 2020.  At June 30, 2020, there was $7.7 million of remaining unaccreted net fees related to PPP loans.  These net fees are expected to be accreted into interest income over the next 20 months and the pace of such accretion<br> will depend on payment activity (including loan forgiveness) within the PPP loan portfolio.  The PPP has been extended to August 8, 2020. We have received approximately 35 forgiveness applications that will be submitted once the SBA<br> Forgiveness portal is activated.
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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 businesses that were in sound financial condition before the<br> 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 business had 2019 revenues of $5 billion or less.  As of July, 14,<br> 2020 we had received three loan applications under the MSLP.
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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 $2.9 million ($0.10 per diluted share, after taxes) and a negative $8.9 million ($0.31 per diluted share, after taxes)<br> for the three- and six-months ended June 30, 2020, respectively, as compared to a negative $2.7 million ($0.09 per diluted share, after taxes) and a negative $4.9 million ($0.16 per diluted share, after taxes) for the three- and six-months<br> ended June 30, 2019, respectively.
• Approximately $0.76 million ($0.03 per diluted share, after taxes) and $0.82 million ($0.03 per diluted share, after taxes) of expenses related to a pending data processing conversion and bank branch closures (as described further below<br> under “Operating Results”) for the three- and six-months ended June 30, 2020, respectively
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Second quarter 2020 highlights include:

• Increases in net income and diluted earnings per share of 37.7% and 45.7%, respectively, compared to 2019;
• Return on average assets and return on average equity of 1.54% and 17.39%, respectively;
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• Net gains on mortgage loans of $17.6 million (up 310.1% over 2019) and total mortgage loan origination volume of $470.6 million;
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• Total portfolio loan net growth of $148.5 million;
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• Deposit net growth of $401.6 million;
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• The issuance of $40.0 million of subordinated debt in May 2020;
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• Continued strong asset quality metrics; and
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• The payment of a 20 cent per share dividend on common stock on May 15, 2020.
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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 second quarter of 2020 despite the many challenges brought on by the COVID-19 pandemic.  Our associates did an amazing job during the quarter!  We closed nearly one-half billion dollars of mortgage loans, helping our customers buy new homes or refinance existing mortgage loans.  We closed over $250 million of PPP loans, helping our customers keep their employees on the payroll and their businesses operating.  We actively administered over 1,700 loan forbearance plans to help our business and retail customers who have been adversely impacted by the COVID-19 pandemic.  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 second quarter of 2020.  As we look ahead to the last half 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.”

2

Operating Results

The Company’s net interest income totaled $30.5 million during the second quarter of 2020, a decrease of $0.3 million, or 1.0% from the year-ago period, but up $0.3 million, or 0.9%, from the first quarter of 2020.  The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.36% during the second quarter of 2020, compared to 3.87% in the year-ago period, and 3.63% in the first quarter of 2020.  The year-over-year quarterly decrease in net interest income is due to a decline in the net interest margin that was partially offset by an increase in average interest-earning assets.  Average interest-earning assets were $3.66 billion in the second quarter of 2020, compared to $3.19 billion in the year ago quarter and $3.35 billion in the first quarter of 2020.

For the first six months of 2020, net interest income totaled $60.7 million, a decrease of $0.3 million, or 0.6% from the first half of 2019.  The Company’s net interest margin for the first six months of 2020 was 3.49% compared to 3.88% in 2019.  The decrease in net interest income for the first six months of 2020 compared to 2019 is also due to a decline in the net interest margin that was partially offset by an increase in average interest-earning assets.

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 $20.4 million and $31.4 million, respectively, for the second quarter and first six months of 2020, compared to $9.9 million and $19.9 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 second quarters of 2020 and 2019, were approximately $17.6 million and $4.3 million, respectively.  For the first six months of 2020, net gains on mortgage loans totaled $26.5 million compared to $7.9 million in 2019.  The increase in net gains on mortgage loans was primarily due to an increase in mortgage loan sales volume in 2020, improved profit margins on mortgage loan sales, and fair value adjustments on the mortgage loan pipeline.

Mortgage loan servicing, net, generated a loss of $3.0 million and $1.9 million in the second quarters of 2020 and 2019, respectively. For the first six months of 2020 and 2019, mortgage loan servicing, net, generated a loss of $8.3 million and $3.1 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 Six Months Ended
6/30/2020 6/30/2019 6/30/2020 6/30/2019
Mortgage loan servicing, net: (Dollars in thousands)
Revenue, net $ 1,646 $ 1,515 $ 3,319 $ 2,991
Fair value change due to price (2,921 ) (2,670 ) (8,852 ) (4,873 )
Fair value change due to pay-downs (1,747 ) (752 ) (2,789 ) (1,240 )
Total $ (3,022 ) $ (1,907 ) $ (8,322 ) $ (3,122 )

Non-interest expenses totaled $27.3 million in the second quarter of 2020, compared to $26.6 million in the year-ago period.  For the first six months of 2020, non-interest expenses totaled $56.1 million versus $54.6 million in 2019.  These year-over-year increases in non-interest expense are primarily due to increases in compensation, loan and collection expense and legal and professional fees.  The increase in compensation is due in part to $0.4 million in bonuses paid during the second quarter of 2020 to front-line personnel due to their extraordinary efforts during the COVID-19 pandemic.  In addition, the second quarter of 2020 includes $0.3 million 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) and $0.4 million of expenses (primarily write-downs of fixed assets and leases) related to the closures of six bank branch offices that are expected to occur on July 31, 2020.

The Company recorded an income tax expense of $3.5 million and $4.5 million in the second quarter and first six months of 2020, respectively.  This compares to an income tax expense of $2.7 million and $4.9 million in the second quarter and first six months of 2019, respectively.  The changes in income tax expense reflect changes in pre-tax earnings in 2020 relative to 2019.

3

Asset Quality

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

Loan Type 6/30/2020 12/31/2019 6/30/2019
(Dollars in thousands)
Commercial $ 4,886 $ 1,377 $ 900
Consumer/installment 602 805 901
Mortgage 7,455 7,996 5,997
Subtotal 12,943 10,178 7,798
Less – government guaranteed loans 604 646 436
Total non-performing loans $ 12,339 $ 9,532 $ 7,362
Ratio of non-performing loans to total portfolio loans 0.43 % 0.35 % 0.27 %
Ratio of non-performing assets to total assets 0.34 % 0.32 % 0.27 %
Ratio of the allowance for loan losses to non-performing loans 279.60 % 274.32 % 351.85 %
(1) Excludes loans that are classified as “troubled debt restructured” that are still performing.
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Non-performing loans have increased $2.8 million from December 31, 2019 due primarily to an increase in non-performing commercial loans.  This increase principally reflects one specific loan relationship.  This loan relationship was in watch credit status at December 31, 2019, moved into non-accrual in the first quarter of 2020 and was charged down by $4.0 million in the second quarter of 2020, to a remaining balance of $2.9 million.  Approximately $2.6 million of this remaining loan balance was paid on July 21, 2020 from the auction of assets securing the loan and $0.3 million is fully reserved with collection efforts continuing.  Other real estate and repossessed assets totaled $1.6 million at June 30, 2020, compared to $1.9 million at December 31, 2019.

The provision for loan losses was an expense of $5.2 million and $0.7 million in the second quarters of 2020 and 2019, respectively.  The provision for loan losses was an expense of $11.9 million and $1.3 million in the first six 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 and loan net charge-offs.  In addition, the higher year-to-date provision for loan losses includes an $8.7 million (or 98.2%) 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.  The Company recorded loan net charge-offs of $3.183 million and $0.003 million in the second quarters of 2020 and 2019, respectively.  For the first six months of 2020 and 2019, the Company recorded loan net charge-offs of $3.557 million and $0.301 million, respectively.  At June 30, 2020, the allowance for loan losses totaled $34.5 million, or 1.20% 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 1.38% of portfolio loans at June 30, 2020.

Balance Sheet, Liquidity and Capital

Total assets were $4.04 billion at June 30, 2020, an increase of $478.6 million from December 31, 2019.  Loans, excluding loans held for sale, were $2.87 billion at June 30, 2020, compared to $2.73 billion at December 31, 2019.  Deposits totaled $3.49 billion at June 30, 2020, an increase of $448.4 million from December 31, 2019.  This increase is primarily due to growth in non-interest bearing checking, savings and interest-bearing checking and reciprocal deposit account balances.

Cash and cash equivalents totaled $55.8 million at June 30, 2020, versus $65.3 million at December 31, 2019. Securities available for sale totaled $856.3 million at June 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%.

4

Total shareholders’ equity was $355.1 million at June 30, 2020, or 8.78% of total assets.  Tangible common equity totaled $322.0 million at June 30, 2020, or $14.72 per share.  The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:

Regulatory Capital Ratios 6/30/2020 12/31/2019 Well<br><br> <br>Capitalized<br><br> <br>Minimum
Tier 1 capital to average total assets 8.76 % 9.49 % 5.00 %
Tier 1 common equity  to risk-weighted assets 12.07 % 11.96 % 6.50 %
Tier 1 capital to risk-weighted assets 12.07 % 11.96 % 8.00 %
Total capital to risk-weighted assets 13.32 % 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, share repurchase activity ceased on March 16, 2020, and is on hold at this time.

Earnings Conference Call

Brad Kessel, President and CEO and Rob Shuster, CFO will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Tuesday, July 28, 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 event site/URL:  https://services.choruscall.com/links/ibcp200728.html.

A playback of the call can be accessed by dialing 1-877-344-7529 (Conference ID # 10145927). The replay will be available through August 4, 2020.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $4.0 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.

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.

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INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Condition

June 30,<br><br> <br>2020 December 31,<br><br> <br>2019
(unaudited)
(In thousands, except share
amounts)
Assets
Cash and due from banks $ 47,369 $ 53,295
Interest bearing deposits 8,447 12,009
Cash and Cash Equivalents 55,816 65,304
Interest bearing deposits - time - 350
Securities available for sale 856,280 518,400
Federal Home Loan Bank and Federal Reserve Bank stock, at cost 18,427 18,359
Loans held for sale, carried at fair value 83,706 69,800
Loans
Commercial 1,362,956 1,166,695
Mortgage 1,041,684 1,098,911
Installment 462,023 459,417
Total Loans 2,866,663 2,725,023
Allowance for loan losses (34,500 ) (26,148 )
Net Loans 2,832,163 2,698,875
Other real estate and repossessed assets 1,569 1,865
Property and equipment, net 36,962 38,411
Bank-owned life insurance 55,300 55,710
Deferred tax assets, net 2,483 2,072
Capitalized mortgage loan servicing rights 13,773 19,171
Other intangibles 4,816 5,326
Goodwill 28,300 28,300
Accrued income and other assets 53,720 42,751
Total Assets $ 4,043,315 $ 3,564,694
Liabilities and Shareholders’ Equity
Deposits
Non-interest bearing $ 1,118,424 $ 852,076
Savings and interest-bearing checking 1,375,523 1,186,745
Reciprocal 535,398 431,027
Time 323,993 376,877
Brokered time 131,787 190,002
Total Deposits 3,485,125 3,036,727
Other borrowings 50,002 88,646
Subordinated debt 39,283 -
Subordinated debentures 39,490 39,456
Accrued expenses and other liabilities 74,292 49,696
Total Liabilities 3,688,192 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: 21,880,183 shares at June 30, 2020 and 22,481,643 shares at December 31, 2019 338,989 352,344
Retained earnings 12,338 1,611
Accumulated other comprehensive income (loss) 3,796 (3,786 )
Total Shareholders’ Equity 355,123 350,169
Total Liabilities and Shareholders’ Equity $ 4,043,315 $ 3,564,694

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INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

Three Months Ended Six Months Ended
June 30,<br><br> <br>2020 March 31,<br><br> <br>2020 June 30,<br><br> <br>2019 June 30,
2020 2019
(unaudited)
Interest Income (In thousands, except per share amounts)
Interest and fees on loans $ 29,863 $ 31,764 $ 33,836 $ 61,627 $ 66,517
Interest on securities available for sale
Taxable 2,847 3,059 3,034 5,906 6,040
Tax-exempt 793 390 324 1,183 698
Other investments 251 366 379 617 954
Total Interest Income 33,754 35,579 37,573 69,333 74,209
Interest Expense
Deposits 2,388 4,700 6,021 7,088 11,702
Other borrowings and subordinated debt and debentures 904 688 796 1,592 1,508
Total Interest Expense 3,292 5,388 6,817 8,680 13,210
Net Interest Income 30,462 30,191 30,756 60,653 60,999
Provision for loan losses 5,188 6,721 652 11,909 1,316
Net Interest Income After Provision for Loan Losses 25,274 23,470 30,104 48,744 59,683
Non-interest Income
Service charges on deposit accounts 1,623 2,591 2,800 4,214 5,440
Interchange income 2,526 2,457 2,604 4,983 4,959
Net gains on assets
Mortgage loans 17,642 8,840 4,302 26,482 7,913
Securities available for sale - 253 - 253 304
Mortgage loan servicing, net (3,022 ) (5,300 ) (1,907 ) (8,322 ) (3,122 )
Other 1,598 2,163 2,106 3,761 4,370
Total Non-interest Income 20,367 11,004 9,905 31,371 19,864
Non-interest Expense
Compensation and employee benefits 16,279 16,509 15,931 32,788 32,282
Occupancy, net 2,159 2,460 2,131 4,619 4,636
Data processing 1,590 2,355 2,171 3,945 4,315
Furniture, fixtures and equipment 1,090 1,036 1,006 2,126 2,035
Communications 800 803 717 1,603 1,486
Interchange expense 726 859 753 1,585 1,441
Loan and collection 756 805 628 1,561 1,262
Advertising 364 683 627 1,047 1,299
Legal and professional 468 393 371 861 740
FDIC deposit insurance 430 370 342 800 710
Branch closure costs 417 - - 417 -
Conversion related expenses 346 56 - 402 -
Credit card and bank service fees 94 99 97 193 200
Net (gains) losses on other real estate and repossessed assets (9 ) 109 (198 ) 100 (79 )
Other 1,836 2,182 2,016 4,018 4,255
Total Non-interest Expense 27,346 28,719 26,592 56,065 54,582
Income Before Income Tax 18,295 5,755 13,417 24,050 24,965
Income tax expense 3,523 945 2,687 4,468 4,854
Net Income $ 14,772 $ 4,810 $ 10,730 $ 19,582 $ 20,111
Net Income Per Common Share
Basic $ 0.67 $ 0.22 $ 0.47 $ 0.89 $ 0.86
Diluted $ 0.67 $ 0.21 $ 0.46 $ 0.88 $ 0.85

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INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Selected Financial Data

June 30,<br><br> <br>2020 March 31,<br><br> <br>2020 December 31,<br><br> <br>2019 September 30,<br><br> <br>2019 June 30,<br><br> <br>2019
(unaudited)
(Dollars in thousands except per share data)
Three Months Ended
Net interest income $ 30,462 $ 30,191 $ 30,710 $ 30,872 $ 30,756
Provision for loan losses 5,188 6,721 (221 ) (271 ) 652
Non-interest income 20,367 11,004 15,597 12,275 9,905
Non-interest expense 27,346 28,719 29,303 27,848 26,592
Income before income tax 18,295 5,755 17,225 15,570 13,417
Income tax expense 3,523 945 3,346 3,125 2,687
Net income $ 14,772 $ 4,810 $ 13,879 $ 12,445 $ 10,730
Basic earnings per share $ 0.67 $ 0.22 $ 0.62 $ 0.55 $ 0.47
Diluted earnings per share 0.67 0.21 0.61 0.55 0.46
Cash dividend per share 0.20 0.20 0.18 0.18 0.18
Average shares outstanding 21,890,761 22,271,412 22,481,551 22,486,041 23,035,526
Average diluted shares outstanding 22,113,187 22,529,370 22,776,908 22,769,572 23,313,346
Performance Ratios
Return on average assets 1.54 % 0.54 % 1.56 % 1.42 % 1.27 %
Return on average equity 17.39 5.54 15.92 14.64 12.72
Efficiency ratio ^(1)^ 53.07 69.32 62.56 63.76 64.57
As a Percent of Average Interest-Earning Assets^(1)^
Interest income 3.72 % 4.28 % 4.44 % 4.60 % 4.73 %
Interest expense 0.36 0.65 0.74 0.84 0.86
Net interest income 3.36 3.63 3.70 3.76 3.87
Average Balances
Loans $ 2,913,857 $ 2,766,770 $ 2,776,037 $ 2,786,544 $ 2,699,648
Securities available for sale 660,126 527,395 488,016 423,255 441,523
Total earning assets 3,659,614 3,350,948 3,320,828 3,285,081 3,191,264
Total assets 3,868,408 3,565,829 3,529,744 3,483,296 3,388,398
Deposits 3,303,302 3,066,298 3,040,099 3,023,334 2,929,885
Interest bearing liabilities 2,402,361 2,309,995 2,251,928 2,219,133 2,155,660
Shareholders’ equity 341,606 348,963 345,910 337,162 338,254
End of Period
Capital
Tangible common equity ratio 8.03 % 8.40 8.96 % 8.71 % 8.72 %
Average equity to average assets 8.83 9.79 9.80 9.68 9.98
Tangible common equity per share of common stock $ 14.72 $ 13.81 $ 14.08 $ 13.63 $ 13.19
Total shares outstanding 21,880,183 21,892,001 22,481,643 22,480,748 22,498,776
Selected Balances
Loans $ 2,866,663 $ 2,718,115 $ 2,725,023 $ 2,722,446 $ 2,706,526
Securities available for sale 856,280 594,284 518,400 439,592 430,305
Total earning assets 3,833,523 3,416,845 3,343,941 3,348,631 3,239,247
Total assets 4,043,315 3,632,387 3,564,694 3,550,837 3,438,302
Deposits 3,485,125 3,083,564 3,036,727 3,052,312 2,978,885
Interest bearing liabilities 2,456,193 2,350,056 2,312,753 2,272,587 2,194,970
Shareholders’ equity 355,123 335,618 350,169 340,245 330,846
(1) Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
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8

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>June 30, Six Months Ended<br><br> <br>June 30,
2020 2019 2020 2019
(Dollars in thousands)
Net Interest Margin, Fully Taxable Equivalent (“FTE”)
Net interest income $ 30,462 $ 30,756 $ 60,653 $ 60,999
Add:  taxable equivalent adjustment 223 102 344 219
Net interest income - taxable equivalent $ 30,685 $ 30,858 $ 60,997 $ 61,218
Net interest margin (GAAP) ^(1)^ 3.34 % 3.86 % 3.47 % 3.86 %
Net interest margin (FTE) ^(1)^ 3.36 % 3.87 % 3.49 % 3.88 %
Adjusted Net Income before tax
Income before income tax $ 18,295 $ 13,417 $ 24,050 $ 24,965
Provision for loan losses 5,188 652 11,909 1,316
Pre-tax, pre-provision income $ 23,483 $ 14,069 $ 35,959 $ 26,281
(1) Annualized.
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9

Reconciliation of Non-GAAP Financial Measures (continued)

Independent Bank Corporation

Tangible Common Equity Ratio

June 30,<br><br> <br>2020 March 31,<br><br> <br>2020 December 31,<br><br> <br>2019 September 30,<br><br> <br>2019 June 30,<br><br> <br>2019
(Dollars in thousands)
Common shareholders’ equity $ 355,123 $ 335,618 $ 350,169 $ 340,245 $ 330,846
Less:
Goodwill 28,300 28,300 28,300 28,300 28,300
Other intangibles 4,816 5,071 5,326 5,598 5,870
Tangible common equity $ 322,007 $ 302,247 $ 316,543 $ 306,347 $ 296,676
Total assets $ 4,043,315 $ 3,632,387 $ 3,564,694 $ 3,550,837 $ 3,438,302
Less:
Goodwill 28,300 28,300 28,300 28,300 28,300
Other intangibles 4,816 5,071 5,326 5,598 5,870
Tangible assets $ 4,010,199 $ 3,599,016 $ 3,531,068 $ 3,516,939 $ 3,404,132
Common equity ratio 8.78 % 9.24 % 9.82 % 9.58 % 9.62 %
Tangible common equity ratio 8.03 % 8.40 % 8.96 % 8.71 % 8.72 %
Tangible Common Equity per Share of Common Stock:
Common shareholders’ equity $ 355,123 $ 335,618 $ 350,169 $ 340,245 $ 330,846
Tangible common equity $ 322,007 $ 302,247 $ 316,543 $ 306,347 $ 296,676
Shares of common stock outstanding (in thousands) 21,880 21,892 22,482 22,481 22,499
Common shareholders’ equity per share of common stock $ 16.23 $ 15.33 $ 15.58 $ 15.13 $ 14.70
Tangible common equity per share of common stock $ 14.72 $ 13.81 $ 14.08 $ 13.63 $ 13.19

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.

10

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets ^(1)^

June 30,<br><br> <br>2020 March 31,<br><br> <br>2020 December 31,<br><br> <br>2019 September 30,<br><br> <br>2019 June 30,<br><br> <br>2019
(Dollars in thousands)
Non-accrual loans $ 12,938 $ 17,454 $ 10,178 $ 7,124 $ 7,798
Loans 90 days or more past due and still accruing interest 5 - - - -
Subtotal 12,943 17,454 10,178 7,124 7,798
Less:  Government guaranteed loans 604 676 646 475 436
Total non-performing loans 12,339 16,778 9,532 6,649 7,362
Other real estate and repossessed assets 1,569 1,494 1,865 1,789 1,990
Total non-performing assets $ 13,908 $ 18,272 $ 11,397 $ 8,438 $ 9,352
As a percent of Portfolio Loans
Non-performing loans 0.43 % 0.62 % 0.35 % 0.24 % 0.27 %
Allowance for loan losses 1.20 1.20 0.96 0.96 0.96
Non-performing assets to total assets 0.34 0.50 0.32 0.24 0.27
Allowance for loan losses as a percent of non-performing loans 279.60 193.68 274.32 393.26 351.85
^(1)^ Excludes loans classified as “trouble debt restructured” that are not past due.
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Troubled debt restructurings (“TDR”)

June 30, 2020
Commercial Retail ^(1)^ Total
(In thousands)
Performing TDR’s $ 13,973 $ 38,554 $ 52,527
Non-performing TDR’s ^(2)^ 1,234 2,022 ^(3)^ 3,256
Total $ 15,207 $ 40,576 $ 55,783
December 31, 2019
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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.
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(2) Included in non-performing assets table above.
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(3) Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.
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1

Allowance for loan losses

Six months ended<br><br> <br>June 30,
2020 2019
Unfunded Unfunded
Loans Commitments Loans Commitments
(Dollars in thousands)
Balance at beginning of period $ 26,148 $ 1,542 $ 24,888 $ 1,296
Additions (deductions)
Provision for loan losses 11,909 - 1,316 -
Recoveries credited to allowance 1,754 - 1,457 -
Loans charged against the allowance (5,311 ) - (1,758 ) -
Additions included in non-interest expense - 230 - 187
Balance at end of period $ 34,500 $ 1,772 $ 25,903 $ 1,483
Net loans charged against the allowance to average Portfolio Loans 0.26 % 0.02 %

Capitalization

June 30,<br><br> <br>2020 December 31,<br><br> <br>2019
(In thousands)
Subordinated debt $ 39,283 $ -
Subordinated debentures 39,490 39,456
Amount not qualifying as regulatory capital (507 ) (1,224 )
Amount qualifying as regulatory capital 78,266 38,232
Shareholders’ equity
Common stock 338,989 352,344
Retained earnings 12,338 1,611
Accumulated other comprehensive income (loss) 3,796 (3,786 )
Total shareholders’ equity 355,123 350,169
Total capitalization $ 433,389 $ 388,401

2

Non-Interest Income

Three months ended Six months ended
June 30,<br><br> <br>2020 March 31,<br><br> <br>2020 June 30,<br><br> <br>2019 June 30,
2020 2019
(In thousands)
Service charges on deposit accounts $ 1,623 $ 2,591 $ 2,800 $ 4,214 $ 5,440
Interchange income 2,526 2,457 2,604 $ 4,983 $ 4,959
Net gains on assets
Mortgage loans 17,642 8,840 4,302 26,482 7,913
Securities - 253 0 253 304
Mortgage loan servicing, net (3,022 ) (5,300 ) (1,907 ) (8,322 ) (3,122 )
Investment and insurance commissions 435 513 450 948 747
Bank owned life insurance 265 270 270 535 512
Other 898 1,380 1,386 2,278 3,111
Total non-interest income $ 20,367 $ 11,004 $ 9,905 $ 31,371 $ 19,864

Capitalized Mortgage Loan Servicing Rights

Three months ended<br><br> <br>June 30, Six months ended<br><br> <br>June 30,
2020 2019 2020 2019
(In thousands)
Balance at beginning of period $ 14,829 $ 19,909 $ 19,171 $ 21,400
Servicing rights acquired - - - $ -
Originated servicing rights capitalized 3,611 1,407 6,243 2,607
Change in fair value (4,667 ) (3,422 ) (11,641 ) (6,113 )
Balance at end of period $ 13,773 $ 17,894 $ 13,773 $ 17,894

3

Mortgage Loan Activity

Three months ended Six months ended
June 30,<br><br> <br>2020 March 31,<br><br> <br>2020 June 30,<br><br> <br>2019 June 30,
2020 2019
(Dollars in thousands)
Mortgage loans originated $ 470,626 $ 311,078 $ 241,402 $ 781,704 $ 379,160
Mortgage loans sold 379,048 262,260 131,636 641,308 286,161
Net gains on mortgage loans 17,642 8,840 4,302 26,482 7,913
Net gains as a percent of mortgage loans sold  (“Loan Sales Margin”) 4.65 % 3.37 % 3.27 % 4.13 % 2.77 %
Fair value adjustments included in the Loan Sales Margin 1.14 0.78 0.74 0.99 0.66

Non-Interest Expense

Three months ended Six months ended
June 30,<br><br> <br>2020 March 31,<br><br> <br>2020 June 30,<br><br> <br>2019 June 30,
2020 2019
(In thousands)
Compensation $ 9,668 $ 10,703 $ 10,185 $ 20,371 $ 20,666
Performance-based compensation 3,809 2,121 2,296 5,930 4,516
Payroll taxes and employee benefits 2,802 3,685 3,450 6,487 7,100
Compensation and employee benefits 16,279 16,509 15,931 32,788 32,282
Occupancy, net 2,159 2,460 2,131 4,619 4,636
Data processing 1,590 2,355 2,171 3,945 4,315
Furniture, fixtures and equipment 1,090 1,036 1,006 2,126 2,035
Communications 800 803 717 1,603 1,486
Interchange expense 726 859 753 1,585 1,441
Loan and collection 756 805 628 1,561 1,262
Advertising 364 683 627 1,047 1,299
Legal and professional fees 468 393 371 861 740
FDIC deposit insurance 430 370 342 800 710
Amortization of intangible assets 255 255 273 510 545
Branch closure costs 417 - - 417 -
Conversion related expenses 346 56 - 402 -
Supplies 203 184 153 387 311
Costs  related to unfunded lending commitments 111 119 27 230 187
Credit card and bank service fees 94 99 97 193 200
Provision for loss reimbursement on sold loans 77 37 35 114 146
Net (gains) losses on other real estate and repossessed assets (9 ) 109 (198 ) 100 (79 )
Other 1,190 1,587 1,528 2,777 3,066
Total non-interest expense $ 27,346 $ 28,719 $ 26,592 $ 56,065 $ 54,582

4

Average Balances and Tax Equivalent Rates

Three Months Ended<br><br> <br>June 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 $ 2,906,843 $ 29,793 4.11 % $ 2,692,168 $ 33,762 5.02 %
Tax-exempt loans ^(1)^ 7,014 88 5.05 7,480 94 5.04
Taxable securities 535,345 2,847 2.13 392,075 3,034 3.10
Tax-exempt securities^(1)^ 124,781 998 3.20 49,448 406 3.28
Interest bearing cash 67,204 18 0.11 31,734 115 1.45
Other investments 18,427 233 5.09 18,359 264 5.77
Interest Earning Assets 3,659,614 33,977 3.72 3,191,264 37,675 4.73
Cash and due from banks 45,714 33,252
Other assets, net 163,080 163,882
Total Assets $ 3,868,408 $ 3,388,398
Liabilities
Savings and interest- bearing checking $ 1,754,503 505 0.12 $ 1,413,073 2,647 0.75
Time deposits 494,411 1,883 1.53 664,909 3,374 2.04
Other borrowings 153,447 904 2.37 77,678 796 4.11
Interest Bearing Liabilities 2,402,361 3,292 0.55 2,155,660 6,817 1.27
Non-interest bearing deposits 1,054,388 851,903
Other liabilities 70,053 42,581
Shareholders’ equity 341,606 338,254
Total liabilities and shareholders’ equity $ 3,868,408 $ 3,388,398
Net Interest Income $ 30,685 $ 30,858
Net Interest Income as a Percent of Average Interest Earning Assets 3.36 % 3.87 %
(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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5

Average Balances and Tax Equivalent Rates

Six Months Ended<br><br> <br>June 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 $ 2,832,876 $ 61,481 4.36 % $ 2,652,893 $ 66,362 5.03 %
Tax-exempt loans ^(1)^ 7,438 185 5.00 8,081 197 4.92
Taxable securities 501,720 5,906 2.35 390,966 6,040 3.09
Tax-exempt securities^(1)^ 92,040 1,488 3.23 53,148 875 3.29
Interest bearing cash 52,814 146 0.56 48,381 426 1.78
Other investments 18,393 471 5.15 18,359 528 5.80
Interest Earning Assets 3,505,281 69,677 3.99 3,171,828 74,428 4.72
Cash and due from banks 47,663 33,744
Other assets, net 164,167 167,270
Total Assets $ 3,717,111 $ 3,372,842
Liabilities
Savings and interest- bearing checking $ 1,685,046 2,435 0.29 $ 1,387,208 4,969 0.72
Time deposits 544,642 4,653 1.72 676,606 6,733 2.01
Other borrowings 126,491 1,592 2.53 71,901 1,508 4.23
Interest Bearing Liabilities 2,356,179 8,680 0.74 2,135,715 13,210 1.25
Non-interest bearing deposits 955,114 855,732
Other liabilities 60,540 41,481
Shareholders’ equity 345,278 339,914
Total liabilities and shareholders’ equity $ 3,717,111 $ 3,372,842
Net Interest Income $ 60,997 $ 61,218
Net Interest Income as a Percent of Average Interest Earning Assets 3.49 % 3.88 %
(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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6

Commercial Loan Portfolio Analysis as of June 30, 2020

Total Commercial Loans
Watch Credits Percent of Loan
Loan Category All Loans Performing Non-accrual Total Category in<br><br> <br>Watch Credit
(Dollars in thousands)
Land $ 11,168 $ 183 $ 673 $ 856 7.7 %
Land Development 12,448 38 - 38 0.3
Construction 109,725 36 - 36 0.0
Income Producing 401,619 15,157 - 15,157 3.8
Owner Occupied 297,295 22,941 3,702 26,643 9.0
Total Commercial Real Estate Loans $ 832,255 $ 38,355 4,375 $ 42,730 5.1
Other Commercial Loans $ 530,701 $ 20,646 511 $ 21,157 4.0
Total non-performing commercial loans $ 4,886

Commercial Loan Portfolio Analysis as of December 31, 2019

Total Commercial Loans
Watch Credits Percent of 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

Q2 EARNINGSIndependent Bank CorporationConference Call – July 28, 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 OfficerRobert N. Shuster, Executive Vice President and Chief Financial OfficerQuestion and Answer session.Closing Remarks.Note: This presentation is available at www.IndependentBank.com in the Investor Relations area under the “Presentations” tab.  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 2Q’20. Working with business and consumer customers on temporary payment relief.$210.5 million (15.4%) in loan forbearances to 259 commercial customers at June 30, 2020.$88.7 million (5.9%) in loan forbearances to 668 mortgage and installment loan customers at June 30, 2020.$114.8 million (4.2%) in loan forbearances to 773 mortgage customers (sold & serviced loans) at June 30, 2020.   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%.

2Q 2020 Financial Highlights  Income StatementPre-tax, pre-provision income was $23.5 million in the second quarter of 2020 compared to $14.1 million in the second quarter of 2019.Net income of $14.8 million, or $0.67 per diluted share compared to $10.7 million, or $0.46 per diluted share for the year ago quarter.Net interest income of $30.5 million, a decrease of $0.3 million, or 1.0% from the year ago quarter.Record level mortgage loan originations of $471 million, also, $379 million in mortgage loans sold with $17.6 million in net gains on mortgage loans compared to $4.3 million in net gains from the year ago quarter. Mortgage servicing rights change (the “MSR Change”) due to price of negative $2.9 million ($0.10 per diluted share, after taxes) compared to negative $2.7 million ($0.09 per diluted share, after taxes) in the second quarter of 2019. Provision for loan losses of $5.2 million compared to $0.7 million in the second quarter of 2019. Included within the second quarter 2020 provision for loan losses is a $3.7 million increase in the subjective/qualitative reserve.Balance Sheet/CapitalSecurities available for sale increased by $262.0 million.Total portfolio loans grew by $148.5 million.Total deposits grew by $401.6 million.Issued $40.0 million of subordinated debt in May 2020.Total stockholder’s equity increased by $19.5 million and tangible book value per share increased by 6.6% to $14.72 per share at June 30, 2020. Paid a 20 cent per share cash dividend on common stock on May 15, 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, 2019.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: $159 million of Ohio mortgage loans, $64 million of resort loans and $20 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 19 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 or soon will be closed (two on June 26, 2020 and six will be 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 60.11 Loan Production Offices (LPOs), including 9 throughout Michigan and 2 in Ohio (residential mortgage lending only).    Branches (60)    East / “Thumb”Branches: 20Deposits: $1,057MLoans: $478M  SoutheastBranches: 6Deposits: $452MLoans: $756M  CentralBranches: 10Deposits: $476MLoans: $220M  WestBranches: 20Deposits: $1,049MLoans: $828M  NorthwestBranches: 4Deposits: $289MLoans: $337M

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

Low Cost Deposit Franchise Focused on Core Deposit Growth  9  Substantially core funding – $3.0 billion of non-maturity deposit accounts (85.9% of total deposits).Total deposits increased $506.6 million since 12/31/19 (excluding brokered) with non-interest bearing up $266.3 million, savings and interest- bearing checking up $188.8 million, reciprocal up $104.4 million and time down $52.9 million.Deposits by Customer Type:Retail – 52.2%Commercial – 35.1%Municipal – 12.7%  Deposit Composition – 6/30/20  Deposit Highlights  Michigan Deposit Market Share  $3.5B  Core Deposits: 85.9%  Cost of Deposits (%)/Total Deposits ($B)  Note: Core deposits defined as total deposits less maturity deposits. Market share data as of 6/30/19.

Diversified Loan PortfolioFocused on High Quality Growth  10  Lending Highlights  Note: Portfolio loans exclude loans HFS.  Portfolio loan changes in 2Q’20:Commercial – increased $181.4 million. PPP loan balances totaled $259.4 million at June 30, 2020.Mortgage – decreased $28.3 million due to portfolio pay-downs and higher salable mix in new loan origination volume. Installment – decreased $4.5 million.Mortgage loan portfolio weighted average FICO and LTV of 749 and 68%, respectively and average balance of $188,100.Installment weighted average FICO of 757 and average balance of $21,100.Commercial loan rate mix:62% fixed / 38% variable.Indices – 59% tied to Prime, 37% tied to LIBOR and 4% tied to a US Treasury rate.Mortgage loan (including HECL) rate mix: 45% fixed / 55% adjustable or variable. Indices – 19% tied to Prime, 63% tied to LIBOR and 18% tied to a US Treasury rate  Loan Composition – 6/30/20  $3.0B  Yield on Loans (%)/Total Portfolio Loans ($B)

COVID-19 Programs to Date  11  Payroll Protection Program  Loan Forbearances  (1) Denotes that an application has been accepted by the SBA and that PPP funds are reserved for that application.  The tables to the left reflect the status in each of these programs as of June 30, 2020.Loan Forbearances:Forbearance period three months for mortgage and installment loans, three or six months for commercial loans. Retail loan forbearances are primarily principal & interest deferrals.Commercial loan forbearances are primarily principal deferrals only.Forbearance requests peaked in early June 2020 and have since abated.Payroll Protection Program:The average balance of PPP loans in 2Q’20 was $191.1 million with an average yield of 3.05% (including the accretion of $1.0 million of fees).At June 30, 2020 there was approximately $7.7 million of remaining unaccreted fees related to PPP loans. We expect these fees to be accreted into interest income over the next 20 months. As of July 23, 2020 we had received 35 forgiveness applications.  Highlights

Loan Portfolio Concentrations by Industry  Percentage concentrations are based on the entire commercial portfolio of $1.363 billion.  Loans by Industry as a % of Total Commercial Loans ($ in millions)  Investor RE by Collateral Type as a % of Total Commercial Loans ($ in millions)  $933 million, or 68.5% of the commercial loan portfolio is C&I or owner occupied, while $430 million, or 31.5% is investment real estate.   12  Commercial Loan Portfolio Concentrations

Investment Securities Portfolio  13  Highlights  High quality, liquid, diverse portfolio with relatively short duration.Fair value of $856.3 million, an increase of $262.0 million in 2Q’20.Net unrealized gain of $14.3 million, representing 1.7% of amortized cost.Portfolio ratings: 65% AAA rated (or backed by the U.S. Government); 20% AA rated; 6% A rated; 5% BAA rated and 4% unrated.2.47 year estimated average duration with a weighted average yield of 2.32% (with TE gross up).Approximately 23% of the portfolio is variable rate.    $856.3M  Investment Portfolio by Type (6/30/20)  Investment Securities Activity – 2Q’20    Agency MBS, CMO & CMBS   Municipal/Govern-ment   Asset-backed  Private Label Mortgage    Corporate      Total     (Dollars in 000’s)              Purchases (at cost)  $100,979  $64,615  $147,624  $3,530  $18,950  $335,698    Repayments  30,354  10,448  27,286  856  36  68,980    Sales  --  14,850  --  --  --  14,850                    Purchases in 2Q’20                Yield (TE)  1.26%  2.90%  1.75%  2.52%  2.30%  1.86%    Duration  1.66%  6.33%  0.63%  4.44%  3.46%  2.24%

Strong Capital Position  14   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 $0.3 million, or 0.9%, in 2Q’20 vs. 1Q’20 due primarily to a $308.7 million increase in average interest earning assets that was only partially offset by a 27 basis point decline in the net interest margin.Net interest margin was 3.36% during the second quarter of 2020, compared to 3.87% in the year-ago quarter and 3.63% in the first quarter of 2020.  Net Interest Margin (TE)(%)  Net Interest Income ($ in Millions)   Net Interest Margin/Income  15

Linked Quarter Analysis  16  Q2’20 NIM Changes  Linked Quarter Average Balances and FTE Rates  Yield on average interest-earning assets declined 56 basis points.Commercial loans: 77 basis point drop due primarily to lower variable rates and new loans being added at lower rate. PPP loans average balance of $191.1 million an with average yield of 3.05%.Mortgage loans: 33 basis point drop primarily due to refinance activity, new loans being added at lower rate and lower variable rates.Funding costs declined by 39 basis points due to rapid response to rate cuts.  2Q’20 Highlights

Strong Non-interest Income  17  Diverse sources of non-interest income – representing 40.1% of revenue in 2Q’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: $17.6 million in net gains on mortgage loans in 2Q’20 vs. $4.3 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.$470.6 million in mortgage loan originations in 2Q’20 vs. $241.4 million in 2Q’19 and $311.1 million in 1Q’20.Purchase / Refinance mix in 2019 was 70% / 30% vs. 2Q’20 mortgage loan origination mix of 32% / 68% as refinance activity continues to be robust. Despite COVID-19 related challenges, home purchase activity is solid in our markets.2Q’20 mortgage loan servicing includes a $2.9 million ($0.10 per diluted share, after tax) decrease in fair value adjustment due to price compared to a decrease of $2.7 million ($0.09 per diluted share, after tax) in the year ago quarter.       Source: Company documents.  $31.4M  2020 YTD Non-interest Income Breakout  Non-interest Income Trends ($M)  Highlights

Focus on Improved Efficiency   18  Source: Company documents.  Non-interest Expense ($M)  Highlights  Efficiency Ratio (4 quarter rolling average)   Continued focus on expense control and driving positive operating leverage. 2Q’20 non-interest expense included $0.42 million of branch closure costs and $0.35 million of conversion related expenses (associated with core data processing conversion that is in process).Eight branch closings by July 31, 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)  19

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  20

Troubled Debt Restructurings (TDRs)  TDR HighlightsWorking with client base to maximize sustainable performance.The specific reserves allocated to TDRs totaled $6.7 million at 6/30/20.A majority of our TDRs are performing under their modified terms but remain in TDR status for the life of the loan.92.6% of TDRs are current as of 6/30/20.Commercial TDR Statistics:37 loans with $15.2 million book balance.91.9% performing.WAR of 5.16% (accruing loans).Well seasoned portfolio; over 82% of accruing loans are not only performing but have been for over a year since modification.Retail TDR Statistics:481 loans with $40.6 million book balance.95.0% performing.WAR of 5.26% (accruing loans).Well seasoned portfolio; approximately 99% of accruing loans are not only performing but have been for over a year since modification.  TDRs ($ in Millions)  93% of TDRs are Current  21

Note: Dollars all in millions.  Provision for Loan Losses  Loan Net Charge-Offs/Recoveries  Allowance for Loan Losses  Credit Cost Summary  22

Incurred Loss Model vs CECL  23  Incurred vs. CECL ($ in Thousands)  6/30/20 “As If” ACL and percent of loans calculated at midpoint of incremental range with additional $9.0 million at Day 1 and $8.7 million at Q2’20.  % Loans  0.96%  1.20%  1.51%(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 Q2 provision expense of $5.2 million. June 30, 2020 allowance for loan losses of $34.5 million or,1.20% of portfolio loans;1.38% of portfolio loans excluding PPP loans and remaining Traverse City State Bank acquired loans; and280% of non-performing loans.Qualitative/subjective allocation increased $3.7 million in 2Q’20 (and by $8.6 million in the first six months of 2020) due to impact of: economic shock, high unemployment claims, “stay at home” executive orders and initial wave 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 Q2’20: $42.0 million to $45.0 million with $2.0 million to $3.0 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: 11.1% Q2, falls to 9.5% in Q4, reaches 6.6% by Q4, 2021.Q factors: model maturity, economic shock and forbearance activity.Slightly lower loan balances (excluding PPP loans) at June 30, 2020.  Allocation of Incurred ALLL                  $26,148   $34,500   $43,240  (1)  $8,352   $8,000  to  $10,000      $(260)  12/31/19  ALLL  Reserve  Build  Under  Incurred Loss  6/30/20  Incurred  Loss  Reserve  "As If"  Day 1  CECL  Reserve  "As If"  Incremental  6/30 CECL  Reserve Change  6/30/20  "As If"  ACL

CECL (ASU 2016-13) Update  Description of Task / Action Step  Date   Status / Notes  1. Full transition of Excel based incurred allowance for loan losses (ALLL) model into a third-party software solution.  1Q’19  Parallel runs completed in 2018 and full transition in 1Q’19.  2. Select CECL calculation methodologies for each loan segment.  1Q’19  Methodology documentation and testing completed. A discounted cash flow model is generally preferred.  3. Determine appropriate economic/subjective factors for each loan segment to adjust for current environment.  1Q’19  Qualitative factor analysis has been completed.  4. Establish methodology for adjusting loss rates for reasonable and supportable forecast periods.  1Q’19  Regression analysis of loss rates and relevant economic factors completed. Have determined appropriate factors and application methods. Sources for future external economic forecasts in process of review.  5. Historical data validation.  1Q’19  Third-party review of historical data integrity and incurred ALLL process validation.  6. Run full CECL calculations on loan portfolio using all inputs – share impact internally.  2Q’19  Full CECL calculations completed on loan portfolio. Share results internally in 2Q’19.  7. CECL model validation.  2Q/3Q’19   Third-party review of CECL model and validation.  8. Disclose estimated financial impact of CECL on IBCP in public reporting.  August 2, 2019  First disclosed the CECL impact range on ALLL in 2Q’19 Form 10-Q. This impact range was updated in the 3Q’19 Form 10-Q.  9. Finalize new financial disclosures.  4Q’19/1Q’20  Update class and risk metrics (if needed) in loan disclosures, and develop new vintage and other required CECL disclosures.  10. Finalize CECL methodology and policy and procedure documentation ahead of 1/1/2020 implementation.  4Q’19/1Q’20  Complete all CECL internal documentation (key controls/policies/procedures) and finalize CECL ALLL calculations.  11. Election to delay CECL under COVID-19 relief.  2020  Record entry for adoption of CECL effective 1/1/2020 at the earlier of 12/31/20 or the end of the national emergency.  24

2Q 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.Q2 Update: Loans increased $148.5 million in the quarter due to commercial loan growth under the PPP. Given the economic disruption due to the COVID-19 pandemic, we now anticipate that total portfolio loan balances to decline by approximately 2% for all of 2020.  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. Q2 Update: The interest rate environment in the first half of 2020 has been very different than the original forecast. Actual short term rates declined 150 bps and long-term rates declined by almost 100 bps. Actual NIM compression of 0.27% on a linked quarter basis. We anticipate NIM to be relatively stable to modestly higher for the last half of 2020 (comparable to 2Q’20) as the impact of lower rates slows, yields on PPP loans improve (due to increased accretion of fees) and excess liquidity present in 2Q’20 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.Q2 Update: We opted to delay implementation of CECL as described earlier. Actual YTD 2020 provision of $11.9 million (or 0.84% annualized of average total loans). This provision includes an increase in the qualitative/subjective reserve under the incurred method of $8.6 million (or 0.61% annualized of average total loans), due to the economic shock from the COVID-19 pandemic, deteriorating employment and significant forbearance activity. Future provision levels will depend on how deep and how long this economic disruption lasts and the impact on the loan portfolio. However, at the present time, we expect provision levels in the second half of 2020 to be at approximately 0.55% to 0.60% of average total portfolio loans.  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). Q2 Update: Actual non-interest income of $20.4 million was well above the high end of the range of $13.5 million. Very strong 2Q’20 mortgage loan origination volumes due to drop in rates. $17.6 million in gains on mortgage loans were partially offset by $2.9 million of negative MSR fair value change due to price. Expect the last two quarters of 2020 to average slightly above the high end of the forecasted range (with 3Q’20 mortgage-banking revenues higher than 4Q’20 due to seasonal factors).  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.Q2 Update: Actual non-interest expenses of $27.3 million were slightly below the low end of the range. Expect these total expenses to generally fall within the range outlined above for the last two quarters 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.Q2 Update: 19.3% actual effective income tax rate. Reaffirm approximately 20% effective rate for the last two quarters 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.Q2 Update: Share repurchase activity ceased on March 16, 2020 and remains on hold at this time.   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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