Independent Bank Corporation (Parent Company Only) Financial Information

12 Months Ended

Dec. 31, 2022

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,
	2022		2021
	(In thousands)
ASSETS
Cash and due from banks	$	10,502	$	6,093
Interest bearing deposits - time	40,000		40,000
Investment in subsidiaries	376,930		432,949
Accrued income and other assets	6,220		96
Total Assets	$	433,652	$	479,138

LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated debt	$	39,433	$	39,357
Subordinated debentures	39,660		39,592
Accrued expenses and other liabilities	6,048		844
Shareholders’ equity	348,511		399,345
Total Liabilities and Shareholders’ Equity	$	433,652	$	479,138

CONDENSED STATEMENTS OF OPERATIONS


	Year Ended December 31,
	2022		2021		2020
	(In thousands)
OPERATING INCOME
Dividends from subsidiary	$	30,000	$	32,000	$	24,000
Interest income	199		55		99
Other income	54		33		42
Total Operating Income	30,253		32,088		24,141

OPERATING EXPENSES
Interest expense	4,311		3,625		2,893
Administrative and other expenses	892		787		733
Total Operating Expenses	5,203		4,412		3,626
Income Before Income Tax and Equity in Undistributed Net Income of Subsidiaries	25,050		27,676		20,515
Income tax benefit	(1,108)		(1,048)		(937)
Income Before Equity in Undistributed Net Income of Subsidiaries	26,158		28,724		21,452
Equity in undistributed net income of subsidiaries	37,193		34,171		34,700
Net Income	$	63,351	$	62,895	$	56,152

CONDENSED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
	2022		2021		2020
	(In thousands)
Net Income	$	63,351	$	62,895	$	56,152
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES
Deferred income tax benefit	(110)		(81)		(34)
Share based compensation	95		95		89
Accretion of discount on subordinated debt and debentures	144		144		113
(Increase) decrease in accrued income and other assets	(6,012)		788		(307)
Increase in accrued expenses and other liabilities	5,205		159		109
Equity in undistributed net income of subsidiaries	(37,193)		(34,171)		(34,700)
Total Adjustments	(37,871)		(33,066)		(34,730)
Net Cash From Operating Activities	25,480		29,829		21,422

CASH FLOW USED IN INVESTING ACTIVITIES
Purchases of interest bearing deposits - time	(115,000)		(160,000)		(85,000)
Maturity of interest bearing deposits - time	115,000		160,000		55,000
Net Cash Used In Investing Activities	—		—		(30,000)

CASH FLOW FROM (USED IN) FINANCING ACTIVITIES
Proceeds from issuance of subordinated debt, net of issuance costs	—		—		39,236
Dividends paid	(18,565)		(18,155)		(17,618)
Proceeds from issuance of common stock	2,124		1,913		1,907
Share based compensation withholding obligation	(620)		(691)		(755)
Repurchase of common stock	(4,010)		(17,269)		(14,231)
Net Cash From (Used In) Financing Activities	(21,071)		(34,202)		8,539
Net Increase (Decrease) in Cash and Cash Equivalents	4,409		(4,373)		(39)
Cash and Cash Equivalents at Beginning of Year	6,093		10,466		10,505
Cash and Cash Equivalents at End of Year	$	10,502	$	6,093	$	10,466