I need more information before I provide advice.
How old is the pond?
When was it stocked and with how many & what size fish added each time?
What was the neighbor using for bait? What size hook? How long did he fish?
What part and what depth was he fishing in the pond? Depth of the bait and depth of water under the ice hole?
Maximum depth of the pond?
"Catching 1/2 dozen small perch" What length range is a 'small perch'?
Did neighbor catch any large shiners?
Have the SMbass spawned?
How many times (springs) have the perch spawned?
Do you feed pellets? How many pounds each year so far?
What do you see eating the pellets?
What is the usual / most common water clarity during summer and now mid-winter?
You say "I saw/see many small fish (1-3") along the banks..." Are these all minnows / shiners?