INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2011

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

INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION

NOTE 25 - 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,
	2011		2010
	(In thousands)
ASSETS
Cash and due from banks	$	2,138	$	4,719
Investment in subsidiaries		154,494		171,493
Other assets		619		528
Total Assets	$	157,251	$	176,740
LIABILITIES AND SHAREHOLDERS' EQUITY
Subordinated debentures	$	50,175	$	50,175
Other liabilities		4,986		8,112
Shareholders' equity		102,090		118,453
Total Liabilities and Shareholders' Equity	$	157,251	$	176,740

CONDENSED STATEMENTS OF OPERATIONS

	Year Ended December 31,
	2011			2010			2009
	(In thousands)
OPERATING INCOME
Decrease in fair value of U.S. Treasury warrant	$	1,137		$	393		$	-
Gain on extinguishment of debt		-			18,066			-
Other income		64			107			175
Total Operating Income		1,201			18,566			175
OPERATING EXPENSES
Interest expense		2,729			4,470			6,620
Administrative and other expenses		958			2,273			904
Total Operating Expenses		3,687			6,743			7,524
Income (Loss) Before Income Tax and Equity in Undistributed Net Loss of Subsidiaries		(2,486	)		11,823			(7,349	)
Income tax expense		(2	)		-			(287	)
Income (Loss) Before Equity in Undistributed Net Loss of Subsidiaries		(2,488	)		11,823			(7,636	)
Equity in undistributed net loss of subsidiaries		(17,712	)		(28,532	)		(82,591	)
Net Loss	$	(20,200	)	$	(16,709	)	$	(90,227	)

CONDENSED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Net Loss	$	(20,200	)	$	(16,709	)	$	(90,227	)
ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH USED IN OPERATING ACTIVITIES
Share based compensation		157			-			-
Gain on extinguishment of debt		-			(18,066	)		-
Depreciation, amortization of intangible assets and premiums, and accretion of discounts on securities and loans		1			2			2
Increase in other assets		(92	)		(618	)		(411	)
Increase (decrease) in other liabilities		(2,404	)		1,977			4,531
Equity in undistributed net loss of subsidiaries' operations		17,712			28,532			82,591
Total Adjustments		15,374			11,827			86,713
Net Cash Used in Operating Activities		(4,826	)		(4,882	)		(3,514	)
CASH FLOW USED IN INVESTING ACTIVITIES
Investment in subsidiaries		-			-			(13,000	)
CASH FLOW FROM (USED IN) FINANCING ACTIVITIES
Proceeds from issuance of common stock		2,245			1,118			1,852
Extinguishment of debt, net		-			(1,005	)		-
Dividends paid		-			-			(3,384	)
Net Cash From (Used in) Financing Activities		2,245			113			(1,532	)
Net Decrease in Cash and Cash Equivalents		(2,581	)		(4,769	)		(18,046	)
Cash and Cash Equivalents at Beginning of Year		4,719			9,488			27,534
Cash and Cash Equivalents at End of Year	$	2,138		$	4,719		$	9,488