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

12 Months Ended

Dec. 31, 2020

CONDENSED STATEMENTS OF FINANCIAL CONDITION
	December 31,
	2020		2019
	(In thousands)
ASSETS
Cash and due from banks	$	10,466	$	10,505
Interest bearing deposits - time		40,000		10,000
Investment in subsidiaries		418,465		369,861
Accrued income and other assets		805		463
Total Assets	$	469,736	$	390,829

LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated debt	$	39,281	$	-
Subordinated debentures		39,524		39,456
Accrued expenses and other liabilities		684		575
Shareholders’ equity		390,247		350,798
Total Liabilities and Shareholders’ Equity	$	469,736	$	390,829

CONDENSED STATEMENTS OF OPERATIONS

	Year Ended December 31,
	2020			2019			2018
	(In thousands)
OPERATING INCOME
Dividends from subsidiary	$	24,000		$	29,000		$	33,500
Interest income		99			230			160
Other income		42			61			56
Total Operating Income		24,141			29,291			33,716

OPERATING EXPENSES
Interest expense		2,893			2,104			1,924
Administrative and other expenses		733			655			748
Total Operating Expenses		3,626			2,759			2,672
Income Before Income Tax and Equity in Undistributed Net Income of Subsidiaries		20,515			26,532			31,044
Income tax benefit		(937	)		(423	)		(515	)
Income Before Equity in Undistributed Net Income of Subsidiaries		21,452			26,955			31,559
Equity in undistributed net income of subsidiaries		34,700			19,480			8,280
Net Income	$	56,152		$	46,435		$	39,839

CONDENSED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2020			2019			2018
	(In thousands)
Net Income	$	56,152		$	46,435		$	39,839
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES
Deferred income tax (benefit) expense		(34	)		1,503			6,620
Share based compensation		89			65			53
Accretion of discount on subordinated debt and debentures		113			68			51
(Increase) decrease in accrued income and other assets		(307	)		891			(1,307	)
Increase in accrued expenses and other liabilities		109			45			21
Equity in undistributed net income of subsidiaries		(34,700	)		(19,480	)		(8,280	)
Total Adjustments		(34,730	)		(16,908	)		(2,842	)
Net Cash From Operating Activities		21,422			29,527			36,997

CASH FLOW FROM (USED IN) INVESTING ACTIVITIES
Purchases of interest bearing deposits - time		(85,000	)		(20,000	)		(30,000	)
Maturity of interest bearing deposits - time		55,000			35,000			10,000
Acquisition of business, less cash received		-			-			431
Net Cash From (Used In) Investing Activities		(30,000	)		15,000			(19,569	)

CASH FLOW FROM (USED IN) FINANCING ACTIVITIES
Proceeds from issuance of subordinated debt, net of issuance costs		39,236			-			-
Dividends paid		(17,618	)		(16,554	)		(14,055	)
Proceeds from issuance of common stock		1,907			2,074			1,945
Share based compensation withholding obligation		(755	)		(882	)		(1,467	)
Repurchase of common stock		(14,231	)		(26,284	)		(12,681	)
Net Cash From (Used In) Financing Activities		8,539			(41,646	)		(26,258	)
Net Increase (Decrease) in Cash and Cash Equivalents		(39	)		2,881			(8,830	)
Cash and Cash Equivalents at Beginning of Year		10,505			7,624			16,454
Cash and Cash Equivalents at End of Year	$	10,466		$	10,505		$	7,624