INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2019

NOTE 24 – INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION

Presented below are condensed financial statements for our parent company.

CONDENSED STATEMENTS OF FINANCIAL CONDITION
	December 31,
	2019		2018
	(In thousands)
ASSETS
Cash and due from banks	$	10,505	$	7,624
Interest bearing deposits - time		10,000		25,000
Investment in subsidiaries		369,861		343,872
Accrued income and other assets		463		2,857
Total Assets	$	390,829	$	379,353

LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated debentures	$	39,456	$	39,388
Accrued expenses and other liabilities		575		530
Shareholders’ equity		350,798		339,435
Total Liabilities and Shareholders’ Equity	$	390,829	$	379,353

CONDENSED STATEMENTS OF OPERATIONS
	Year Ended December 31,
	2019			2018			2017
	(In thousands)
OPERATING INCOME
Dividends from subsidiary	$	29,000		$	33,500		$	16,000
Interest income		230			160			29
Other income		61			56			41
Total Operating Income		29,291			33,716			16,070

OPERATING EXPENSES
Interest expense		2,104			1,924			1,347
Administrative and other expenses		655			748			714
Total Operating Expenses		2,759			2,672			2,061
Income Before Income Tax and Equity in Undistributed Net Income of Subsidiaries		26,532			31,044			14,009
Income tax expense (benefit)		(423	)		(515	)		1,587
Income Before Equity in Undistributed Net Income of Subsidiaries		26,955			31,559			12,422
Equity in undistributed net income of subsidiaries		19,480			8,280			8,053
Net Income	$	46,435		$	39,839		$	20,475

CONDENSED STATEMENTS OF CASH FLOWS
	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Net Income	$	46,435		$	39,839		$	20,475
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES
Deferred income tax expense		1,503			6,620			2,146
Share based compensation		65			53			45
Accretion of discount on subordinated debentures		68			51			-
(Increase) decrease in accrued income and other assets		891			(1,307	)		(32	)
Increase in accrued expenses and other liabilities		45			21			121
Equity in undistributed net income of subsidiaries		(19,480	)		(8,280	)		(8,053	)
Total Adjustments		(16,908	)		(2,842	)		(5,773	)
Net Cash From Operating Activities		29,527			36,997			14,702

CASH FLOW FROM (USED IN) INVESTING ACTIVITIES
Purchases of interest bearing deposits - time		(20,000	)		(30,000	)		(10,000	)
Maturity of interest bearing deposits - time		35,000			10,000			10,000
Acquisition of business, less cash received		-			431			-
Net Cash From (Used In) Investing Activities		15,000			(19,569	)		-

CASH FLOW USED IN FINANCING ACTIVITIES
Dividends paid		(16,554	)		(14,055	)		(8,960	)
Proceeds from issuance of common stock		2,074			1,945			1,776
Share based compensation withholding obligation		(882	)		(1,467	)		(579	)
Repurchase of common stock		(26,284	)		(12,681	)		-
Net Cash Used in Financing Activities		(41,646	)		(26,258	)		(7,763	)
Net Increase (Decrease) in Cash and Cash Equivalents		2,881			(8,830	)		6,939
Cash and Cash Equivalents at Beginning of Year		7,624			16,454			9,515
Cash and Cash Equivalents at End of Year	$	10,505		$	7,624		$	16,454