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Note 17 - Condensed Financial Statements of Parent Company
12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Note 17 â€“ 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 
         

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 
             

Interest expense

            

Borrowings

  1,491   645   239 
             

Net interest income

  (1,464)  5,490   12,716 
             

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)
             

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