Condensed Financial Information of Parent Company Only Disclosure [Text Block] |
Note 17 – Condensed Financial Statements of Parent Company
Condensed Balance Sheets
(Dollars in thousands) | | December 31, | |
| | 2022 | | | 2021 | |
Assets | | | | | | | | |
Cash | | $ | 8,310 | | | $ | 17,622 | |
Equity securities at fair value | | | 3,199 | | | | 2,555 | |
Other assets | | | 586 | | | | 553 | |
Investment in subsidiaries | | | 192,540 | | | | 236,462 | |
Total assets | | $ | 204,635 | | | $ | 257,192 | |
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Liabilities | | | | | | | | |
Subordinated debentures | | $ | 31,971 | | | $ | 31,827 | |
Trust preferred securities | | | 3,291 | | | | 3,190 | |
Other liabilities | | | 499 | | | | 506 | |
Total liabilities | | | 35,761 | | | | 35,523 | |
| | | | | | | | |
Shareholders' equity | | | 168,874 | | | | 221,669 | |
Total liabilities and shareholders’ equity | | $ | 204,635 | | | $ | 257,192 | |
Condensed Statements of Income
(Dollars in thousands) | | Years Ended December 31, | |
| | 2022 | | | 2021 | | | 2020 | |
Interest income | | | | | | | | | | | | |
Interest and dividends from ChoiceOne Bank | | $ | - | | | $ | 6,125 | | | $ | 12,942 | |
Interest and dividends from other securities | | | 27 | | | | 10 | | | | 13 | |
Total interest income | | | 27 | | | | 6,135 | | | | 12,955 | |
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Interest expense | | | | | | | | | | | | |
Borrowings | | | 1,491 | | | | 645 | | | | 239 | |
| | | | | | | | | | | | |
Net interest income | | | (1,464 | ) | | | 5,490 | | | | 12,716 | |
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Noninterest income | | | | | | | | | | | | |
Gains on sales of securities | | | - | | | | - | | | | 26 | |
Change in market value of equity securities | | | (385 | ) | | | 554 | | | | (155 | ) |
Other | | | 2 | | | | 4 | | | | - | |
Total noninterest income | | | (383 | ) | | | 558 | | | | (129 | ) |
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Noninterest expense | | | | | | | | | | | | |
Salaries and benefits | | | - | | | | - | | | | 1,201 | |
Professional fees | | | 40 | | | | 15 | | | | 1,093 | |
Other | | | 174 | | | | 203 | | | | 217 | |
Total noninterest expense | | | 214 | | | | 218 | | | | 2,511 | |
| | | | | | | | | | | | |
Income before income tax and equity in undistributed net income of subsidiary | | | (2,061 | ) | | | 5,830 | | | | 10,076 | |
Income tax (expense)/benefit | | | 433 | | | | 64 | | | | 431 | |
Income before equity in undistributed net income of subsidiary | | | (1,628 | ) | | | 5,894 | | | | 10,507 | |
Equity in undistributed net income of subsidiary | | | 25,268 | | | | 16,148 | | | | 5,106 | |
Net income | | $ | 23,640 | | | $ | 22,042 | | | $ | 15,613 | |
Condensed Statements of Cash Flows
(Dollars in thousands) | | Years Ended December 31, | |
| | 2022 | | | 2021 | | | 2020 | |
Cash flows from operating activities: | | | | | | | | | | | | |
Net income | | $ | 23,640 | | | $ | 22,042 | | | $ | 15,613 | |
Adjustments to reconcile net income to net cash from operating activities: | | | | | | | | | | | | |
Equity in undistributed net income of subsidiary | | | (25,268 | ) | | | (16,148 | ) | | | (5,106 | ) |
Amortization | | | 245 | | | | 101 | | | | 51 | |
Compensation expense on employee and director stock purchases, stock options, and restricted stock units | | | 928 | | | | 787 | | | | 488 | |
Net gain on sale of securities | | | - | | | | - | | | | (26 | ) |
Change in market value of equity securities | | | 385 | | | | (554 | ) | | | 155 | |
Changes in other assets | | | (33 | ) | | | (260 | ) | | | 582 | |
Changes in other liabilities | | | (7 | ) | | | (2,982 | ) | | | 551 | |
Net cash from operating activities | | | (110 | ) | | | 2,986 | | | | 12,308 | |
| | | | | | | | | | | | |
Cash flows from investing activities: | | | | | | | | | | | | |
Sales of securities | | | - | | | | - | | | | 958 | |
Purchases of securities | | | (1,029 | ) | | | (117 | ) | | | (200 | ) |
Investment in Subsidiary | | | - | | | | (5,000 | ) | | | - | |
Cash acquired from mergers with Community Shores Bank Corporation | | | - | | | | - | | | | 142 | |
Net cash from investing activities | | | (1,029 | ) | | | (5,117 | ) | | | 900 | |
| | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | | |
Issuance of common stock | | | 172 | | | | 139 | | | | 134 | |
Repurchase of common stock | | | (767 | ) | | | (7,786 | ) | | | - | |
Proceeds from borrowings | | | - | | | | 36,827 | | | | 10,000 | |
Payments on borrowings | | | - | | | | (14,166 | ) | | | (833 | ) |
Cash used as part of equity issuance for merger | | | - | | | | - | | | | (5,387 | ) |
Cash dividends paid | | | (7,578 | ) | | | (7,200 | ) | | | (6,174 | ) |
Net cash from financing activities | | | (8,173 | ) | | | 7,814 | | | | (2,260 | ) |
| | | | | | | | | | | | |
Net change in cash | | | (9,312 | ) | | | 5,683 | | | | 10,948 | |
Beginning cash | | | 17,622 | | | | 11,939 | | | | 991 | |
Ending cash | | $ | 8,310 | | | $ | 17,622 | | | $ | 11,939 | |
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