Independent Bank : 4Q'22 Earnings Conference Call Presentation

Independent Bank Corporation

Earnings Call

Fourth Quarter 2022

January 26, 2023

(NASDAQ: IBCP)

Cautionary note regarding	2
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, 2021 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.

Agenda

3

• Formal Remarks.
• • William B. (Brad) Kessel, President and Chief Executive Officer
  • Gavin A. Mohr, Executive Vice President and Chief Financial Officer
  • Joel Rahn, Executive Vice President - Commercial Banking
• Question and Answer session.
• Closing Remarks.

Note: This presentation is available at www.IndependentBank.comin the Investor

Relations area under the "Presentations" tab.

4Q22 Overview

4Q22 Earnings

Commercial Banking Continues to Generate Solid Loan Growth

Positive Trends

in Key Metrics

Conservative

Balance Sheet Management

4

• Net income of $15.1 million, or $0.71 per diluted share, compared to $12.5 million, or $0.58 per diluted share, in 4Q21
• Pre-tax,pre-provision income of $20.0 million, an increase of 24% from $16.1 million in 4Q21
• Growth in net interest income offset lower net gain on sale of mortgage loans
• Strong profitability results in 5.2% increase in tangible book value per share from end of prior quarter
• 6.6% annualized growth in total loans primarily driven by increase in commercial portfolio
• 16.5% annualized growth in commercial portfolio with good diversification across sectors and markets
• Expansion into new markets and impact of commercial banker additions generating larger volume of opportunities and resulting in strong commercial loan growth while being selective in new loan production
• Net interest margin increased 3 bps to 3.52%
• Asset quality remained exceptional with NPAs/Total Assets stable at 0.08% and net loan recoveries in the quarter, with delinquencies in installment portfolio remaining stable and at low levels
• Capital ratios strengthened with bank level Total Capital to Total Risk-weighted Assets Ratio increasing 5 bps to 12.22%
• No shares repurchased during 4Q22 in order to preserve capital to build TCE and support strong organic loan growth
• Loan-to-depositratio of 79% provides significant liquidity to continue funding loan growth
• While asset quality remains excellent, IBCP is well reserved ahead of potential economic weakness with ACL/Total Loans increasing to 1.51%

Low Cost Deposit Franchise

Focused on Core Deposit Growth

Deposit Composition - 12/31/22

Brokered

5%

Time

5

Deposit Highlights

	Substantial core funding - $3.85 billion of non-maturity
	deposit accounts (87.8% of total deposits).

7%

Reciprocal

Non-interest Bearing

29%

	Total deposits increased $262.0 million (6.4%) since
	12/31/21 with non-interest bearing down $51.8 million,
	savings and interest- bearing checking up $75.8 million,
	reciprocal up $15.9 million and time up $13.1 million.

14%

$4.4BCore

Deposits:

87.8%

	Deposits by Customer Type:
	− Retail - 52.8%

Savings and Interest-

bearing Checking

45%

Cost of Deposits (%)/Total Deposits ($B)

				$3.9	$3.9	$4.1	$4.1	$4.2	$4.3	$4.3	$4.4
$3.6	$3.6
																		0.77%
0.23%																			0.33%
				0.14%	0.12%	0.11%	0.09%	0.07%	0.11%
		0.39%
	Q3'20		Q4'20		Q1'21			Q2'21		Q3'21			Q4'21		Q1'22		Q2'22		Q3'22		Q4'22
									Total Deposits				Cost Of Deposits

−	Commercial - 33.3%
−	Municipal - 13.9%

Michigan Deposit Market Share

		Deposits in	Mkt.
		Market	Share
Rank 2022	Institution	($M)	(%)
1	JPMorgan Chase & Co.	69,955	26.4%
2	Huntington Bancshares Inc.	36,160	13.7%
3	Comerica Inc.	33,063	12.5%
4	Bank of America Corp.	30,306	11.5%
5	The PNC Financial Services Group Inc.	21,228	8.0%
6	Fifth Third Bancorp	16,829	6.4%
7	New York Community Bancorp Inc.	13,896	5.3%
8	Citizens Financial Group Inc.	6,830	2.6%
9	Independent Bank Corp.	4,359	1.6%
10	Mercantile Bank Corp.	2,528	1.0%
	Total for Institutions in Market $264,589
		Data: S&P Global

Note: Core deposits defined as total deposits less maturity deposits.

Source: S&P Global deposit market share data based on FDIC Summary of Deposits Annual Survey as of June 30, 2022.