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

12 Months Ended

Dec. 31, 2018

CONDENSED STATEMENTS OF FINANCIAL CONDITION

	December 31,
	2018		2017
	(In thousands)
ASSETS
Cash and due from banks	$	7,624	$	16,454
Interest bearing deposits - time		25,000		5,000
Investment in subsidiaries		343,872		271,315
Accrued income and other assets		2,857		8,375
Total Assets	$	379,353	$	301,144

LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated debentures	$	39,388	$	35,569
Accrued expenses and other liabilities		530		500
Shareholders’ equity		339,435		265,075
Total Liabilities and Shareholders’ Equity	$	379,353	$	301,144

CONDENSED STATEMENTS OF OPERATIONS

	Year Ended December 31,
	2018			2017		2016
	(In thousands)
OPERATING INCOME
Dividends from subsidiary	$	33,500		$	16,000	$	5,000
Interest income		160			29		27
Other income		56			41		153
Total Operating Income		33,716			16,070		5,180

OPERATING EXPENSES
Interest expense		1,924			1,347		1,167
Administrative and other expenses		748			714		554
Total Operating Expenses		2,672			2,061		1,721
Income Before Income Tax and Equity in Undistributed Net Income of Subsidiaries		31,044			14,009		3,459
Income tax expense (benefit)		(515	)		1,587		(615	)
Income Before Equity in Undistributed Net Income of Subsidiaries		31,559			12,422		4,074
Equity in undistributed net income of subsidiaries		8,280			8,053		18,692
Net Income	$	39,839		$	20,475	$	22,766

CONDENSED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2018			2017			2016
	(In thousands)
Net Income	$	39,839		$	20,475		$	22,766
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES
Deferred income tax expense (benefit)		6,620			2,146			(615	)
Share based compensation		53			45			29
Accretion of discount on subordinated debentures		51			-			-
(Increase) decrease in accrued income and other assets		(1,307	)		(32	)		246
Increase in accrued expenses and other liabilities		21			121			1
Equity in undistributed net income of subsidiaries		(8,280	)		(8,053	)		(18,692	)
Total Adjustments		(2,842	)		(5,773	)		(19,031	)
Net Cash From Operating Activities		36,997			14,702			3,735

CASH FLOW FROM (USED IN) INVESTING ACTIVITIES
Purchases of interest bearing deposits - time		(30,000	)		(10,000	)		(7,500	)
Maturity of interest bearing deposits - time		10,000			10,000			7,500
Acquisition of business, less cash received		431			-			-
Return of capital from subsidiary		-			-			18,000
Net Cash From (Used In) Investing Activities		(19,569	)		-			18,000

CASH FLOW USED IN FINANCING ACTIVITIES
Dividends paid		(14,055	)		(8,960	)		(7,274	)
Proceeds from issuance of common stock		1,945			1,776			1,735
Share based compensation withholding obligation		(1,467	)		(579	)		(627	)
Repurchase of common stock		(12,681	)		-			(16,854	)
Net Cash Used in Financing Activities		(26,258	)		(7,763	)		(23,020	)
Net Increase (Decrease) in Cash and Cash Equivalents		(8,830	)		6,939			(1,285	)
Cash and Cash Equivalents at Beginning of Year		16,454			9,515			10,800
Cash and Cash Equivalents at End of Year	$	7,624		$	16,454		$	9,515