Fourth Quarter Highlights

Highlights for the fourth quarter of 2023 include:

An increase in net interest income of $0.7 million (1.7%) over the third quarter of 2023;
An increase in book value and tangible book value per share of $1.42 and $1.43 respectively;
Net growth in loans of $49.4 million (or 5.2% annualized) from September 30, 2023; and
The payment of a 23 cent per share dividend on common stock on November 13, 2023.

GRAND RAPIDS, Mich., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ:IBCP) reported fourth quarter 2023 net income of $13.7 million, or $0.65 per diluted share, versus net income of $15.1 million, or $0.71 per diluted share, in the prior-year period. For the year ended December 31, 2023, the Company reported net income of $59.1 million, or $2.79 per diluted share, compared to net income of $63.4 million, or $2.97 per diluted share, in 2022.

William B. ("Brad") Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: "'Our fourth quarter performance capped off another remarkably strong year, with our organization performing exceptionally well despite continued challenges in the macroeconomic environment. For the fourth quarter of 2023, I am particularly pleased with the double digit annualized growth in our commercial loan portfolio, the year over year 4.1% growth in our core deposit base, the linked quarter growth in our net interest income and our strong asset quality metrics which enabled us to release a small amount of loan loss reserves. Significantly impacting our quarterly results was the change in price of the fair value of our capitalized mortgage servicing rights of $3.6 million ($0.14 per diluted share, after tax). Adding back this non-cash adjustment, our fourth quarter 2023 annualized return on assets was 1.26% versus 1.24% for the three months ended December 31, 2022. During 2023, we continued to make investments in talent and technology which we believe will enable us to consistently add new customers, grow our market share, generate profitable growth, and further increase the value of our franchise in 2024 and beyond."

Significant items impacting comparable 2023 and 2022 results include the following:

Changes in the fair value due to price of capitalized mortgage loan servicing rights (the "MSR Changes") of $(3.6) million ($(0.14) per diluted share, after taxes) and $(0.3) million ($(0.01) per diluted share, after taxes) for the three-month and full-year ended December 31, 2023, respectively, as compared to $(0.5) million ($(0.02) per diluted share, after taxes) and $14.3 million ($0.53 per diluted share, after taxes) for the three-months and full-year ended December 31, 2022, respectively.
The provision for credit losses was a credit of $0.6 million ($0.02 per diluted share, after taxes) and expense of $6.2 million ($0.23 per diluted share, after tax) in the fourth quarter and full year ended December 31, 2023, respectively, as compared to an expense of $1.4 million ($0.05 per diluted share, after taxes) and expense of $5.3 million ($0.20 per diluted share, after tax) in the fourth quarter and full year ended December 31, 2022, respectively.

Operating Results

The Company's net interest income totaled $40.1 million during the fourth quarter of 2023, a decrease of $0.5 million, or 1.2% from the year-ago period, and up $0.7 million, or 1.7%, from the third quarter of 2023. The Company's tax equivalent net interest income as a percent of average interest-earning assets (the "net interest margin") was 3.26% during the fourth quarter of 2023, compared to 3.52% in the year-ago period, and 3.23% in the third quarter of 2023. The year-over-year quarterly decrease in net interest income was due to a decrease in the net interest margin that was partially offset by an increase in average earnings assets. Average interest-earning assets were $4.93 billion in the fourth quarter of 2023, compared to $4.64 billion in the year ago quarter and $4.89 billion in the third quarter of 2023.

For the year ended December 31, 2023, net interest income totaled $156.3 million, an increase of $6.8 million, or 4.5% from the prior year ended December 31, 2022. The Company's net interest margin for the year ended December 31, 2023 was 3.26% compared to 3.32% in 2022. The increase in net interest income for the year ended December 31, 2023 compared to 2022 reflects an increase in average interest- earning assets that was partially offset by a decrease in the net interest margin.

Non-interest income totaled $9.1 million and $50.7 million, respectively, for the fourth quarter and full year of 2023, compared to $11.5 million and $61.9 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 in the fourth quarters of 2023 and 2022, were approximately $2.0 million and $1.5 million, respectively. For the full year of 2023, net gains on mortgage loans totaled $7.4 million compared to $6.4 million in 2022. The increase in net gains on mortgage loans was due to a combination of higher profit margins on mortgage loan sales and an increase in the volume of mortgage loans sold.

Mortgage loan servicing, net, generated a loss of $2.4 million and a gain of $0.7 million in the fourth quarters of 2023 and 2022, respectively. For the full year of 2023 and 2022, mortgage loan servicing, net, generated income of $4.6 million and $18.8 million, respectively. The significant variances in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights attributed to a decrease in interest rates that resulted in a lower earnings rate on escrow deposits and an increase in prepayment speeds. Mortgage loan servicing, net activity is summarized in the following table:

	Three months ended						Twelve months ended
	12/31/2023			12/31/2022			12/31/2023			12/31/2022
	(In thousands)
Mortgage loan servicing, net:
Revenue, net	$	2,216		$	2,180		$	8,828		$	8,577
Fair value change due to price		(3,644	)		(503	)		(280	)		14,272
Fair value change due to pay-downs		(1,014	)		(990	)		(3,922	)		(4,076	)
Total	$	(2,442	)	$	687		$	4,626		$	18,773

Non-interest expenses totaled $31.9 million in the fourth quarter of 2023, compared to $32.1 million in the year-ago period. For the full year of 2023, non-interest expenses totaled $127.1 million versus $128.3 million in 2022.

The Company recorded an income tax expense of $4.2 million and $14.6 million in the fourth quarter and full year of 2023, respectively. This compares to an income tax expense of $3.5 million and $14.4 million in the fourth quarter and full year of 2022, respectively.

Asset Quality

A breakdown of non-performing loans by loan type is as follows:

	12/31/2023			12/31/2022			12/31/2021
Loan Type	(Dollars in thousands)
Commercial	$	28		$	38		$	62
Mortgage		6,425			4,745			4,914
Installment		970			598			569
Sub total		7,423			5,381			5,545
Less - government guaranteed loans		2,191			1,660			435
Total non-performing loans	$	5,232		$	3,721		$	5,110
Ratio of non-performing loans to total portfolio loans		0.14	%		0.11	%		0.18	%
Ratio of non-performing assets to total assets		0.11	%		0.08	%		0.11	%
Ratio of allowance for credit losses to total non-performing loans		1044.69	%		1409.16	%		924.70	%

The provision for credit losses was credit of $0.6 million and an expense of $1.4 million in the fourth quarters of 2023 and 2022, respectively. The provision for credit losses was an expense of $6.2 million and $5.3 million in the full year of 2023 and 2022, respectively. The quarterly decrease in the provision for credit losses in 2023 compared to 2022, was primarily the result of a change in allocation rates due to subjective factors (prior year allocation rates were increased while current year rates decreased). The Company recorded loan net charge-offs of $0.2 million and $0.1 million in the fourth quarters of 2023 and 2022, respectively. At December 31, 2023, the allowance for credit losses totaled $54.7 million, or 1.44% of total portfolio loans compared to $52.4 million, or 1.51% of total portfolio loans at December 31, 2022.

Balance Sheet, Liquidity and Capital

Total assets were $5.26 billion at December 31, 2023, an increase of $263.9 million from December 31, 2022. Loans, excluding loans held for sale, were $3.79 billion at December 31, 2023, compared to $3.47 billion at December 31, 2022. Deposits totaled $4.62 billion at December 31, 2023, an increase of $243.8 million from December 31, 2022. This increase is primarily due to growth in reciprocal, time and brokered time deposit account balances that were partially offset by decreases in non-interest bearing and savings and interest-bearing checking deposit account balances.

Cash and cash equivalents totaled $169.8 million at December 31, 2023, versus $74.4 million at December 31, 2022. Securities available for sale ("AFS") totaled $679.4 million at December 31, 2023, versus $779.35 million at December 31, 2022.

Total shareholders' equity was $404.4 million at December 31, 2023, or 7.68% of total assets compared to $347.6 million or 6.95% at December 31, 2022. Tangible common equity totaled $374.1 million at December 31, 2023, or $17.96 per share compared to $316.7 million or $15.04 per share at December 31, 2022. The increase in shareholder equity as well as tangible common equity are primarily the result of earnings retention and a decline in accumulated other comprehensive loss related to unrealized losses on securities available for sale.

The Company's wholly owned subsidiary, Independent Bank, remains significantly above "well capitalized" for regulatory purposes with the following ratios:

Regulatory Capital Ratios	12/31/2023			12/31/2022			Well Capitalized Minimum

Tier 1 capital to average total assets		8.80	%		8.56	%		5.00	%
Tier 1 common equity to risk-weighted assets		11.21	%		10.97	%		6.50	%
Tier 1 capital to risk-weighted assets		11.21	%		10.97	%		8.00	%
Total capital to risk-weighted assets		12.46	%		12.22	%		10.00	%

At December 31, 2023, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $1.0 billion and $515.4 million, respectively. We also had approximately $813.8 million in fair value of unpledged securities AFS and HTM at December 31, 2023 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $754.6 million.

Share Repurchase Plan

On December 19, 2023, the Board of Directors of the Company authorized the 2024 share repurchase plan. Under the terms of the 2024 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2024. For the full year of 2023, the Company repurchased 298,601 shares at a weighted average price of $17.27 per share.

Earnings Conference Call

Brad Kessel, President and CEO, Gavin A. Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, January 25, 2024.

To participate in the live conference call, please dial 1-833-470-1428 (Access Code # 216359). Also, the conference call will be accessible through an audio webcast with user-controlled slides via the following site/URL: https://events.q4inc.com/attendee/712732859.

A playback of the call can be accessed by dialing 1-866-813-9403 (Access Code # 634318). The replay will be available through February 1, 2024.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ:IBCP) is a Michigan-based bank holding company with total assets of approximately $5.3 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 presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plans and prospects.

Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. For example, deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding to us, lead to a tightening of credit, and increase stock price volatility. Our results could also be adversely affected by changes in interest rates; increases in unemployment rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of our investment securities; legal and regulatory developments; changes in customer behavior and preferences; breaches in data security; and management's ability to effectively manage the multitude of risks facing our business. Key risk factors that could affect our future results are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2022 and the other reports we file with the SEC, including under the heading "Risk Factors." Investors should not place undue reliance on forward-looking statements as a prediction of our future results.

Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Financial Condition

	December 31,
		2023			2022
	(unaudited)
	(In thousands, except share amounts)
Assets
Cash and due from banks	$	68,208		$	70,180
Interest bearing deposits		101,573			4,191
Cash and Cash Equivalents		169,781			74,371
Securities available for sale		679,350			779,347
Securities held to maturity (fair value of $318,606 at December 31, 2023 and $335,418 at December 31, 2022)		353,988			374,818
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		16,821			17,653
Loans held for sale, carried at fair value		12,063			26,518
Loans held for sale, carried at lower of cost or fair value		—			20,367
Loans
Commercial		1,679,731			1,466,853
Mortgage		1,485,872			1,368,409
Installment		625,298			630,090
Total Loans		3,790,901			3,465,352
Allowance for credit losses		(54,658	)		(52,435	)
Net Loans		3,736,243			3,412,917
Other real estate and repossessed assets, net		569			455
Property and equipment, net		35,523			35,893
Bank-owned life insurance		54,341			55,204
Capitalized mortgage loan servicing rights, carried at fair value		42,243			42,489
Other intangibles		2,004			2,551
Goodwill		28,300			28,300
Accrued income and other assets		132,500			128,904
Total Assets	$	5,263,726		$	4,999,787

Liabilities and Shareholders' Equity
Deposits
Non-interest bearing	$	1,076,093		$	1,269,759
Savings and interest-bearing checking		1,905,701			1,973,308
Reciprocal		832,020			602,575
Time		524,325			321,492
Brokered time		284,740			211,935
Total Deposits		4,622,879			4,379,069
Other borrowings		50,026			86,006
Subordinated debt		39,510			39,433
Subordinated debentures		39,728			39,660
Accrued expenses and other liabilities		107,134			108,023
Total Liabilities		4,859,277			4,652,191

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: 20,835,633 shares at December 31, 2023 and 21,063,971 shares at December 31, 2022		317,483			320,991
Retained earnings		159,108			119,368
Accumulated other comprehensive loss		(72,142	)		(92,763	)
Total Shareholders' Equity		404,449			347,596
Total Liabilities and Shareholders' Equity	$	5,263,726		$	4,999,787

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations
	Three Months Ended								Twelve Months Ended
		December 31,			September, 30		December 31,		December 31,
		2023			2023		2022			2023			2022
	(unaudited)
INTEREST INCOME	(In thousands, except per share amounts)
Interest and fees on loans	$	54,333		$	51,419	$	42,093		$	197,725		$	139,057
Interest on securities
Taxable		5,646			5,865		5,845			23,314			20,676
Tax-exempt		3,434			3,409		2,807			13,209			8,391
Other investments		1,948			1,739		233			5,429			884
Total Interest Income		65,361			62,432		50,978			239,677			169,008
INTEREST EXPENSE
Deposits		23,111			20,743		8,543			75,075			14,151
Other borrowings and subordinated debt and debentures		2,139			2,262		1,833			8,273			5,296
Total Interest Expense		25,250			23,005		10,376			83,348			19,447
Net Interest Income		40,111			39,427		40,602			156,329			149,561
Provision for credit losses		(617	)		1,350		1,390			6,210			5,341
Net Interest Income After Provision for Credit Losses		40,728			38,077		39,212			150,119			144,220
NON-INTEREST INCOME
Interchange income		3,336			4,100		3,402			13,996			13,955
Service charges on deposit accounts		3,061			3,309		3,153			12,361			12,288
Net gains (losses) on assets
Mortgage loans		1,961			2,099		1,486			7,436			6,431
Securities available for sale		—			—		—			(222	)		(275	)
Mortgage loan servicing, net		(2,442	)		2,668		687			4,626			18,773
Other		3,181			3,435		2,740			12,479			10,737
Total Non-interest Income		9,097			15,611		11,468			50,676			61,909
NON-INTEREST EXPENSE
Compensation and employee benefits		19,049			19,975		20,394			78,965			81,007
Data processing		2,909			3,071		2,670			11,862			10,183
Occupancy, net		1,933			1,971		2,225			7,908			8,907
Interchange expense		1,110			1,119		1,042			4,332			4,242
Furniture, fixtures and equipment		974			927		933			3,756			4,007
FDIC deposit insurance		796			677		572			3,005			2,142
Communications		535			568		629			2,406			2,871
Legal and professional		585			543		588			2,208			2,133
Loan and collection		456			520		679			2,174			2,657
Advertising		879			360		489			2,165			2,074
Conversion related expense		—			—		—			—			50
Costs (recoveries) related to unfunded lending commitments		348			451		(77	)		424			599
Other		2,304			1,854		1,947			7,914			7,469
Total Non-interest Expense		31,878			32,036		32,091			127,119			128,341
Income Before Income Tax		17,947			21,652		18,589			73,676			77,788
Income tax expense		4,204			4,109		3,503			14,609			14,437
Net Income	$	13,743		$	17,543	$	15,086		$	59,067		$	63,351
Net income per common share
Basic	$	0.66		$	0.84	$	0.72		$	2.82		$	3.00
Diluted	$	0.65		$	0.83	$	0.71		$	2.79		$	2.97

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data

	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
	(unaudited)
	(Dollars in thousands except per share data)
Three Months Ended
Net interest income	$	40,111		$	39,427		$	38,350		$	38,441		$	40,602
Provision for credit losses		(617	)		1,350			3,317			2,160			1,390
Non-interest income		9,097			15,611			15,417			10,551			11,468
Non-interest expense		31,878			32,036			32,248			30,957			32,091
Income before income tax		17,947			21,652			18,202			15,875			18,589
Income tax expense		4,204			4,109			3,412			2,884			3,503
Net income	$	13,743		$	17,543		$	14,790		$	12,991		$	15,086

Basic earnings per share	$	0.66		$	0.84		$	0.70		$	0.62		$	0.72
Diluted earnings per share		0.65			0.83			0.70			0.61			0.71
Cash dividend per share		0.23			0.23			0.23			0.23			0.22

Average shares outstanding		20,840,680			20,922,431			21,040,349			21,103,831			21,064,556
Average diluted shares outstanding		21,049,030			21,114,445			21,222,535			21,296,980			21,266,876

Performance Ratios
Return on average assets		1.04	%		1.34	%		1.18	%		1.06	%		1.21	%
Return on average equity		14.36			18.68			16.29			14.77			17.94
Efficiency ratio (1)		64.27			57.52			59.26			62.07			60.82

As a Percent of Average Interest-Earning Assets (1)
Interest income		5.29	%		5.10	%		4.89	%		4.66	%		4.41	%
Interest expense		2.03			1.87			1.65			1.34			0.89
Net interest income		3.26			3.23			3.24			3.32			3.52

Average Balances
Loans	$	3,764,752		$	3,694,534		$	3,567,920		$	3,494,169		$	3,449,944
Securities		1,027,240			1,071,211			1,111,670			1,146,075			1,164,809
Total earning assets		4,928,697			4,892,208			4,763,295			4,696,786			4,637,475
Total assets		5,233,666			5,192,114			5,044,746			4,988,440			4,934,859
Deposits		4,612,797			4,577,796			4,447,843			4,417,106			4,350,748
Interest bearing liabilities		3,635,771			3,554,179			3,415,621			3,304,868			3,159,374
Shareholders' equity		379,614			372,667			364,143			356,720			333,610

(1) Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data (continued)

	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
	(unaudited)
	(Dollars in thousands except per share data)
End of Period
Capital
Tangible common equity ratio		7.15	%		6.67	%		6.75	%		6.60	%		6.37	%
Tangible common equity ratio excluding accumulated other comprehensive loss		8.31			8.20			8.09			7.95			7.98
Average equity to average assets		7.20			7.18			7.22			7.15			6.76
Total capital to risk-weighted assets (2)		13.71			13.58			13.66			13.80			13.62
Tier 1 capital to risk-weighted assets (2)		11.50			11.37			11.42			11.53			11.36
Common equity tier 1 capital to risk-weighted assets (2)		10.58			10.44			10.46			10.55			10.38
Tier 1 capital to average assets (2)		9.04			8.94			8.97			8.92			8.86
Common shareholders' equity per share of common stock	$	19.41		$	17.99		$	17.91		$	17.40		$	16.50
Tangible common equity per share of common stock		17.96			16.53			16.45			15.94			15.04
Total shares outstanding		20,835,633			20,850,455			20,943,694			21,138,303			21,063,971

Selected Balances
Loans	$	3,790,901		$	3,741,486		$	3,631,114		$	3,509,809		$	3,465,352
Securities		1,033,338			1,043,540			1,092,703			1,137,103			1,154,165
Total earning assets		4,954,696			4,884,720			4,830,185			4,860,696			4,688,246
Total assets		5,263,726			5,200,018			5,135,564			5,138,934			4,999,787
Deposits		4,622,879			4,585,612			4,487,636			4,544,749			4,379,069
Interest bearing liabilities		3,676,050			3,573,187			3,501,280			3,481,511			3,274,409
Shareholders' equity		404,449			374,998			375,162			367,714			347,596

(2) December 31, 2023 are Preliminary.

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 December 31,						Twelve Months Ended December 31,
		2023			2022			2023			2022
	(Dollars in thousands)
Net Interest Margin, Fully Taxable Equivalent ("FTE")

Net interest income	$	40,111		$	40,602		$	156,329		$	149,561
Add: taxable equivalent adjustment		178			453			900			1,878
Net interest income - taxable equivalent	$	40,289		$	41,055		$	157,229		$	151,439
Net interest margin (GAAP) (1)		3.25	%		3.48	%		3.24	%		3.28	%
Net interest margin (FTE) (1) (2)		3.26	%		3.52	%		3.26	%		3.32	%

Adjusted Return on Average Assets

Net income	$	13,743		$	15,086
Add: change in price of capitalized mortgage servicing rights, net of tax		2,879			397
Adjusted net income	$	16,622		$	15,483
Average assets	$	5,233,666		$	4,934,859
Adjusted return on average assets (1)		1.26	%		1.24	%

(1) Quarter to date are Annualized.

(2) 2023 taxable equivalent adjustments have been updated.

Tangible Common Equity Ratio

	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
	(Dollars in thousands)
Common shareholders' equity	$	404,449		$	374,998		$	375,162		$	367,714		$	347,596
Less:
Goodwill		28,300			28,300			28,300			28,300			28,300
Other intangibles		2,004			2,141			2,278			2,415			2,551
Tangible common equity		374,145			344,557			344,584			336,999			316,745
Addition:
Accumulated other comprehensive loss for regulatory purposes		66,344			86,507			74,712			75,013			86,966
Tangible common equity excluding other comprehensive loss adjustments	$	440,489		$	431,064		$	419,296		$	412,012		$	403,711

Total assets	$	5,263,726		$	5,200,018		$	5,135,564		$	5,138,934		$	4,999,787
Less:
Goodwill		28,300			28,300			28,300			28,300			28,300
Other intangibles		2,004			2,141			2,278			2,415			2,551
Tangible assets		5,233,422			5,169,577			5,104,986			5,108,219			4,968,936
Addition:
Net unrealized losses on available for sale securities and derivatives, net of tax		66,344			86,507			74,712			75,013			86,966
Tangible assets excluding other comprehensive loss adjustments	$	5,299,766		$	5,256,084		$	5,179,698		$	5,183,232		$	5,055,902

Common equity ratio		7.68	%		7.21	%		7.31	%		7.16	%		6.95	%
Tangible common equity ratio		7.15	%		6.67	%		6.75	%		6.60	%		6.37	%
Tangible common equity ratio excluding other comprehensive loss		8.31	%		8.20	%		8.09	%		7.95	%		7.98	%

Tangible Common Equity per Share of Common Stock:

Common shareholders' equity	$	404,449		$	374,998		$	375,162		$	367,714		$	347,596
Tangible common equity	$	374,145		$	344,557		$	344,584		$	336,999		$	316,745
Shares of common stock outstanding (in thousands)		20,836			20,850			20,944			21,138			21,064

Common shareholders' equity per share of common stock	$	19.41		$	17.99		$	17.91		$	17.40		$	16.50
Tangible common equity per share of common stock	$	17.96		$	16.53		$	16.45		$	15.94		$	15.04

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.

Contact:

William B. Kessel, President and CEO, 616.447.3933

Gavin A. Mohr, Chief Financial Officer, 616.447.3929