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June 26 (Reuters) - Independent Bank Corp (IBCP.O: Quote, Profile, Research) forecast second-quarter earnings below market estimates and slashed its quarterly dividend for the second time in three months, citing higher credit costs and provision for loan losses, pushing shares down to their lowest levels in more than 12 years.

The Ionia, Michigan-based company expects to earn 9 cents to 12 cents a share, based on the expectation of a loan-loss provision of about $13 million and a charge-off of about $1.2 million.

Analysts on average were expecting a profit of 14 cents a share, according to Reuters Estimates.

Independent Bank cut its quarterly dividend by 91 percent to 1 cent a share, from 11 cents. The dividend is payable on July 31 to shareholders of record as of July 7.

The bank holding company said while the cut reflects unsettled market environment and continued weak economic conditions in Michigan, it currently does not expect to raise additional capital through any type of equity offering.

Independent Bank, which has missed Wall Street estimates in the last two quarters, expects total non-performing assets to rise to between $130 million and $145 million at June 30.

The company also said it would not modify or discontinue the payment of quarterly dividends on any of the four trust-preferred securities that it has, including an issue of about $51.0 million that is publicly traded on Nasdaq.

Shares of the company fell as much as 12 percent to $3.66, before recouping some losses to trade down 29 cents at $3.89 Thursday afternoon. (Reporting by Adheesha Sarkar in Bangalore; Editing by Amitha Rajan)