INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (FY)

12 Months Ended

Dec. 31, 2016

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

INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION

NOTE 24 – 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,
	2016		2015
	(In thousands)
ASSETS
Cash and due from banks	$	9,515	$	10,800
Interest bearing deposits - time		5,000		5,000
Investment in subsidiaries		259,883		261,016
Accrued income and other assets		10,489		10,120
Total Assets	$	284,887	$	286,936
LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated debentures	$	35,569	$	35,569
Accrued expenses and other liabilities		379		378
Shareholders’ equity		248,939		250,989
Total Liabilities and Shareholders’ Equity	$	284,887	$	286,936

CONDENSED STATEMENTS OF OPERATIONS

	Year Ended December 31,
	2016			2015			2014
	(In thousands)
OPERATING INCOME
Dividends from subsidiary	$	5,000		$	—		$	—
Interest income		27			72			64
Gain on extinguishment of debt		—			—			500
Gain on securities		—			—			295
Other income		153			31			35
Total Operating Income		5,180			103			894
OPERATING EXPENSES
Interest expense		1,167			1,021			1,462
Administrative and other expenses		554			560			527
Total Operating Expenses		1,721			1,581			1,989
Income (Loss) Before Income Tax and Equity in Undistributed Net Income of Subsidiaries		3,459			(1,478	)		(1,095	)
Income tax benefit		(615	)		(542	)		(383	)
Income (Loss) Before Equity in Undistributed Net Income of Subsidiaries		4,074			(936	)		(712	)
Equity in undistributed net income of subsidiaries		18,692			20,953			18,733
Net Income	$	22,766		$	20,017		$	18,021

CONDENSED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2016			2015			2014
	(In thousands)
Net Income	$	22,766		$	20,017		$	18,021
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM (USED) IN OPERATING ACTIVITIES
Deferred income tax benefit		(615	)		(542	)		(383	)
Share based compensation		29			21			46
Gain on extinguishment of debt		—			—			(500	)
Net gains on securities		—			—			(295	)
Decrease in accrued income and other assets		246			5			118
Increase (decrease) in accrued expenses and other liabilities		1			(6	)		287
Equity in undistributed net income of subsidiaries		(18,692	)		(20,953	)		(18,733	)
Total Adjustments		(19,031	)		(21,475	)		(19,460	)
Net Cash From (Used) in Operating Activities		3,735			(1,458	)		(1,439	)
CASH FLOW FROM INVESTING ACTIVITIES
Purchases of interest bearing deposits - time		(7,500	)		(5,000	)		(17,500	)
Maturity of interest bearing deposits - time		7,500			12,500			5,000
Return of capital from subsidiary		18,000			18,500			15,000
Net Cash From Investing Activities		18,000			26,000			2,500
CASH FLOW USED IN FINANCING ACTIVITIES
Repurchase of common stock		(16,854	)		(13,498	)		—
Dividends paid		(7,274	)		(5,896	)		(4,129	)
Proceeds from issuance of common stock		1,735			1,569			1,242
Share based compensation withholding obligation		(627	)		(1,091	)		—
Redemption of subordinated debt		—			—			(4,654	)
Net Cash Used in Financing Activities		(23,020	)		(18,916	)		(7,541	)
Net Increase (Decrease) in Cash and Cash Equivalents		(1,285	)		5,626			(6,480	)
Cash and Cash Equivalents at Beginning of Year		10,800			5,174			11,654
Cash and Cash Equivalents at End of Year	$	9,515		$	10,800		$	5,174