Condensed Financial Information of Parent Company Only Disclosure [Text Block] |
Note 16 – Condensed Financial Statements of Parent Company
Condensed Balance Sheets
(Dollars in thousands) |
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
Assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
11,939 |
|
|
$ |
991 |
|
Equity securities at fair value |
|
|
1,884 |
|
|
|
1,840 |
|
Securities available for sale |
|
|
- |
|
|
|
959 |
|
Other assets |
|
|
292 |
|
|
|
468 |
|
Investment in subsidiaries |
|
|
228,895 |
|
|
|
189,578 |
|
Total assets |
|
$ |
243,010 |
|
|
$ |
193,836 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Term loan |
|
$ |
9,167 |
|
|
$ |
- |
|
Trust preferred securities |
|
|
3,089 |
|
|
|
- |
|
Other liabilities |
|
|
3,486 |
|
|
|
1,697 |
|
Total liabilities |
|
|
15,742 |
|
|
|
1,697 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
227,268 |
|
|
|
192,139 |
|
Total liabilities and shareholders’ equity |
|
$ |
243,010 |
|
|
$ |
193,836 |
|
Condensed Statements of Income
(Dollars in thousands) |
|
Years Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividends from ChoiceOne Bank |
|
$ |
12,942 |
|
|
$ |
4,011 |
|
|
$ |
2,800 |
|
Interest and dividends from other securities |
|
|
13 |
|
|
|
50 |
|
|
|
47 |
|
Total interest income |
|
|
12,955 |
|
|
|
4,061 |
|
|
|
2,847 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
239 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
12,716 |
|
|
|
4,061 |
|
|
|
2,847 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
Gains on sales of securities |
|
|
26 |
|
|
|
8 |
|
|
|
9 |
|
Change in market value of equity securities |
|
|
(155 |
) |
|
|
(114 |
) |
|
|
184 |
|
Total noninterest income |
|
|
(129 |
) |
|
|
(106 |
) |
|
|
193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
|
1,201 |
|
|
|
339 |
|
|
|
- |
|
Professional fees |
|
|
1,093 |
|
|
|
1,517 |
|
|
|
- |
|
Other |
|
|
217 |
|
|
|
492 |
|
|
|
144 |
|
Total noninterest expense |
|
|
2,511 |
|
|
|
2,348 |
|
|
|
144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax and equity in undistributed net income of subsidiary |
|
|
10,076 |
|
|
|
1,607 |
|
|
|
2,896 |
|
Income tax (expense)/benefit |
|
|
431 |
|
|
|
261 |
|
|
|
(14 |
) |
Income before equity in undistributed net income of subsidiary |
|
|
10,507 |
|
|
|
1,868 |
|
|
|
2,882 |
|
Equity in undistributed net income of subsidiary |
|
|
5,106 |
|
|
|
5,303 |
|
|
|
4,451 |
|
Net income |
|
$ |
15,613 |
|
|
$ |
7,171 |
|
|
$ |
7,333 |
|
Condensed Statements of Cash Flows
(Dollars in thousands) |
|
Years Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
15,613 |
|
|
$ |
7,171 |
|
|
$ |
7,333 |
|
Adjustments to reconcile net income to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in undistributed net income of subsidiary |
|
|
(5,106 |
) |
|
|
(5,303 |
) |
|
|
(4,451 |
) |
Amortization |
|
|
51 |
|
|
|
14 |
|
|
|
18 |
|
Compensation expense on employee and director stock purchases, stock options, and restricted stock units |
|
|
488 |
|
|
|
359 |
|
|
|
331 |
|
Net gain on sale of securities |
|
|
(26 |
) |
|
|
(8 |
) |
|
|
(9 |
) |
Change in market value of equity securities |
|
|
155 |
|
|
|
114 |
|
|
|
(184 |
) |
Changes in other assets |
|
|
582 |
|
|
|
(344 |
) |
|
|
66 |
|
Changes in other liabilities |
|
|
551 |
|
|
|
1,485 |
|
|
|
(19 |
) |
Net cash from operating activities |
|
|
12,308 |
|
|
|
3,488 |
|
|
|
3,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Sales of securities |
|
|
958 |
|
|
|
1,102 |
|
|
|
91 |
|
Purchases of securities |
|
|
(200 |
) |
|
|
- |
|
|
|
- |
|
Cash acquired from mergers with Community Shores Bank Corporation and County Bank Corp. |
|
|
142 |
|
|
|
1,038 |
|
|
|
- |
|
Net cash from investing activities |
|
|
900 |
|
|
|
2,140 |
|
|
|
91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock |
|
|
134 |
|
|
|
142 |
|
|
|
77 |
|
Repurchase of common stock |
|
|
- |
|
|
|
(67 |
) |
|
|
(523 |
) |
Proceeds from borrowings |
|
|
10,000 |
|
|
|
- |
|
|
|
- |
|
Payments on borrowings |
|
|
(833 |
) |
|
|
- |
|
|
|
- |
|
Cash used as part of equity issuance for merger |
|
|
(5,387 |
) |
|
|
(297 |
) |
|
|
- |
|
Cash dividends paid |
|
|
(6,174 |
) |
|
|
(5,815 |
) |
|
|
(2,579 |
) |
Net cash from financing activities |
|
|
(2,260 |
) |
|
|
(6,037 |
) |
|
|
(3,025 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash |
|
|
10,948 |
|
|
|
(409 |
) |
|
|
151 |
|
Beginning cash |
|
|
991 |
|
|
|
1,400 |
|
|
|
1,249 |
|
Ending cash |
|
$ |
11,939 |
|
|
$ |
991 |
|
|
$ |
1,400 |
|
|