INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2021

INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION [Abstract]

INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION

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,
	2021		2020
	(In thousands)
ASSETS
Cash and due from banks	$	6,093	$	10,466
Interest bearing deposits - time		40,000		40,000
Investment in subsidiaries		432,949		418,465
Accrued income and other assets		96		805
Total Assets	$	479,138	$	469,736
LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated debt	$	39,357	$	39,281
Subordinated debentures		39,592		39,524
Accrued expenses and other liabilities		844		684
Shareholders’ equity		399,345		390,247
Total Liabilities and Shareholders’ Equity	$	479,138	$	469,736

CONDENSED STATEMENTS OF OPERATIONS

	Year Ended December 31,
	2021			2020			2019
	(In thousands)
OPERATING INCOME
Dividends from subsidiary	$	32,000		$	24,000		$	29,000
Interest income		55			99			230
Other income		33			42			61
Total Operating Income		32,088			24,141			29,291
OPERATING EXPENSES
Interest expense		3,625			2,893			2,104
Administrative and other expenses		787			733			655
Total Operating Expenses		4,412			3,626			2,759
Income Before Income Tax and Equity in Undistributed Net Income of Subsidiaries		27,676			20,515			26,532
Income tax benefit		(1,048	)		(937	)		(423	)
Income Before Equity in Undistributed Net Income of Subsidiaries		28,724			21,452			26,955
Equity in undistributed net income of subsidiaries		34,171			34,700			19,480
Net Income	$	62,895		$	56,152		$	46,435

CONDENSED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2021			2020			2019
	(In thousands)
Net Income	$	62,895		$	56,152		$	46,435
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES
Deferred income tax (benefit) expense		(81	)		(34	)		1,503
Share based compensation		95			89			65
Accretion of discount on subordinated debt and debentures		144			113			68
(Increase) decrease in accrued income and other assets		788			(307	)		891
Increase in accrued expenses and other liabilities		159			109			45
Equity in undistributed net income of subsidiaries		(34,171	)		(34,700	)		(19,480	)
Total Adjustments		(33,066	)		(34,730	)		(16,908	)
Net Cash From Operating Activities		29,829			21,422			29,527
CASH FLOW FROM (USED IN) INVESTING ACTIVITIES
Purchases of interest bearing deposits - time		(160,000	)		(85,000	)		(20,000	)
Maturity of interest bearing deposits - time		160,000			55,000			35,000
Net Cash From (Used In) Investing Activities		-			(30,000	)		15,000
CASH FLOW FROM (USED IN) FINANCING ACTIVITIES
Proceeds from issuance of subordinated debt, net of issuance costs		-			39,236			-
Dividends paid		(18,155	)		(17,618	)		(16,554	)
Proceeds from issuance of common stock		1,913			1,907			2,074
Share based compensation withholding obligation		(691	)		(755	)		(882	)
Repurchase of common stock		(17,269	)		(14,231	)		(26,284	)
Net Cash From (Used In) Financing Activities		(34,202	)		8,539			(41,646	)
Net Increase (Decrease) in Cash and Cash Equivalents		(4,373	)		(39	)		2,881
Cash and Cash Equivalents at Beginning of Year		10,466			10,505			7,624
Cash and Cash Equivalents at End of Year	$	6,093		$	10,466		$	10,505