Item 2.05 Costs Associated with Exit or Disposal Activities.

(a) On August 15, 2012, the Board of Directors of Independent Bank Corporation authorized its wholly owned subsidiary, Independent Bank (the "Bank") to effect the consolidation of certain of the branch offices of the Bank (the "Branch Consolidation"). The Branch Consolidation reflects the Bank's ongoing cost reduction initiatives and undertakings to improve the overall efficiency of the operations of the Bank. The Branch Consolidation will result in the closing of ten of the Bank's branch offices. It is expected that the aggregate, annual savings resulting from the Branch Consolidation will amount to approximately $1.2 million (net of lost revenue due to estimated customer attrition). The Company expects that the Branch Consolidation will be completed not later than December 31, 2012. The branches being consolidated are as follows:

Consolidating Into

Bad Axe East Huron Bad Axe Northgate

Bay City Broadway Bay City Main

Elkton Pigeon

Gagetown Cass City

Kinde Caseville

Lyons Ionia Point

Rives Junction Pleasant Lake

Saginaw Cardinal Square Saginaw Fashion Square

Saginaw Gratiot Road Saginaw Center Avenue

Sebewaing Downtown Sebewaing M-25

(b/c) In connection with the Branch Consolidation, the Company expects to incur one-time expenses and charges of approximately $1.5 million to $2.0 million in the third quarter of 2012, which consist primarily of write-downs of fixed assets (estimated to range from $1.4 million to $1.8 million) as well as severance and certain other costs (estimated to range from $0.1 million to $0.2 million).

(d) The Company expects that the aggregate, future cash expenditures associated with the Branch Consolidation will range between $0.1 million and $0.2 million, and all such amounts are expected to be paid not later than December 31, 2012.

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