IONIA, Mich., Feb. 13 /PRNewswire-FirstCall/ -- Independent Bank Corporation (Nasdaq: IBCP), a leading Michigan-based community bank, announced today that it is suspending all foreclosures for Independent Bank owner-occupied loans for the next three weeks, while it awaits the announcement of further details regarding the federal government's proposed plans for assisting homeowners. The Obama administration is currently working on efforts to allocate $50 billion towards foreclosure prevention and establish national standards for modifying home loans.

Independent Bank's foreclosure moratorium applies to all first mortgage, owner-occupied loans held in the bank's portfolio. Although Independent Bank services mortgages that are backed by government-sponsored entities Fannie Mae and Freddie Mac, it cannot make changes to those loans without their consent. Both Fannie Mae and Freddie Mac recently announced they have halted evictions from foreclosed properties until next month. Independent Bank was recently recognized by Fannie Mae for its efforts in successfully pursuing loan workouts and modifications during 2008.

Independent Bank Corporation announced the receipt of $72 million in the fourth quarter 2008 as a result of its participation in the U.S. Treasury Capital Purchase Program (CPP). The receipt of those funds has enabled the Company to continue to actively pursue loan modifications and work-outs in lieu of foreclosure for mortgage loan customers experiencing financial difficulty, and to seek new lending opportunities. Independent Bank's loan volume in the sixty days since its receipt of the CPP capital totals $176.0 million that includes $53.9 million of commercial loans, $117.7 million of mortgage loans and $4.4 million of consumer installment loans.

Michael M. Magee, President and CEO of Independent Bank Corporation, commented: "We recognize the impact this challenging economic environment has had on our customers. Our decision to suspend foreclosures is just one of the many ways that Independent Bank continues to work with customers to help them save their homes during these difficult times."

About Independent Bank Corporation

Independent Bank Corporation (Nasdaq: IBCP) is a Michigan-based bank holding company with total assets of approximately $3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation now operates over 100 offices 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 title services. Payment plans to purchase vehicle service contracts are also available through Mepco Finance Corporation, a wholly owned subsidiary of Independent Bank. 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: www.IndependentBank.com

Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "expect," "believe," "intend," "estimate," "project," "may" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are predicated on management's beliefs and assumptions based on information known to Independent Bank Corporation's management as of the date of this news release and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Independent Bank Corporation's management for future or past operations, products or services, and forecasts of the Company's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries, and estimates of credit quality trends. Such statements reflect the view of Independent Bank Corporation's management as of this date with respect to future events and are not guarantees of future performance, involve assumptions and are subject to substantial risks and uncertainties, such as the changes in Independent Bank Corporation's plans, objectives, expectations and intentions. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in interest rates, changes in the accounting treatment of any particular item, the results of regulatory examinations, changes in industries where the Company has a concentration of loans, changes in the level of fee income, changes in general economic conditions and related credit and market conditions, and the impact of regulatory responses to any of the foregoing. Forward-looking statements speak only as of the date they are made. Independent Bank Corporation does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this news release or in any documents, Independent Bank Corporation claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

SOURCE Independent Bank Corporation