Condensed Financial Information - Parent Company Only

Condensed financial statements of the Corporation, parent company only, follow:



(Dollars in thousands)	At December 31,
Balance Sheets	2015		2014
Assets:
Cash and due from banks	$	17,096	$	3,120
Investments in securities	807		1,336
Investments in subsidiaries, at equity in net assets:
Bank	392,304		283,166
Non-banks	—		—
Other assets	24,950		21,115
Total assets	$	435,157	$	308,737
Liabilities:
Dividends payable	$	3,905	$	3,243
Subordinated notes	49,377		—
Other liabilities	20,301		20,940
Total liabilities	73,583		24,183
Shareholders' equity:	361,574		284,554
Total liabilities and shareholders' equity	$	435,157	$	308,737

The Corporation’s condensed Balance Sheet at December 31, 2015 reflects the issuance of common stock valued at approximately $77 million related to the acquisition of Valley Green Bank on January 1, 2015 and the push down to the Bank subsidiary.



(Dollars in thousands)	For the Years Ended December 31,
Statements of Income	2015			2014		2013
Dividends from Bank	$	26,523		$	12,482	$	18,482
Dividends from non-bank	—			—		—
Net gain on sales of securities	285			306		644
Loss on termination of interest rate swap	—			—		(1,866		)
Other income	18,428			18,334		18,306
Total operating income	45,236			31,122		35,566
Operating expenses	21,833			16,924		19,203
Income before income tax (benefit) expense and equity in undistributed income (loss) of subsidiaries	23,403			14,198		16,363
Income tax (benefit) expense	(728		)	880		(903		)
Income before equity in undistributed income (loss) of subsidiaries	24,131			13,318		17,266
Equity in undistributed income (loss) of subsidiaries:
Bank	3,137			8,913		3,929
Non-banks	—			—		(6		)
Net income	$	27,268		$	22,231	$	21,189



(Dollars in thousands)	For the Years Ended December 31,
Statements of Cash Flows	2015			2014			2013
Cash flows from operating activities:
Net income	$	27,268		$	22,231		$	21,189
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net (income) loss of subsidiaries	(3,137		)	(8,913		)	(3,923		)
Net gain on sales of securities	(285		)	(306		)	(644		)
Loss on termination of interest rate swap	—			—			1,866
Bank owned life insurance income	(5		)	(238		)	(1,070		)
Depreciation of premises and equipment	275			364			344
Stock based compensation	1,421			1,141			978
Contributions to pension and other postretirement benefit plans	(2,271		)	(254		)	(2,243		)
(Increase) decrease in other assets	(4,268		)	714			671
Increase (decrease) in other liabilities	2,027			(639		)	(2,426		)
Net cash provided by operating activities	21,025			14,100			14,742
Cash flow from investing activities:
Investments in subsidiaries	(30,000		)	—			—
Proceeds from sales of securities	708			1,131			1,244
Liquidation of subsidiary, net of cash acquired	—			—			15,011
Proceeds from bank owned life insurance	—			—			772
Other, net	(1,640		)	(281		)	(713		)
Net cash (used in) provided by investing activities	(30,932		)	850			16,314
Cash flows from financing activities:
Proceeds from issuance of subordinated notes	49,267			—			—
Repayment of long-term debt	—			—			(375		)
Payment for repurchase of trust preferred securities	—			—			(20,619		)
Purchases of treasury stock	(13,342		)	(4,605		)	(12,012		)
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit plans	2,434			2,462			2,422
Proceeds from exercise of stock options, including excess tax benefits	534			310			—
Cash dividends paid	(15,010		)	(12,996		)	(10,029		)
Net cash provided by (used in) financing activities	23,883			(14,829		)	(40,613		)
Net increase (decrease) in cash and due from financial institutions	13,976			121			(9,557		)
Cash and due from financial institutions at beginning of year	3,120			2,999			12,556
Cash and due from financial institutions at end of year	$	17,096		$	3,120		$	2,999
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest	$	1,275		$	2		$	754
Income tax, net of refunds received	1,770			5,300			5,017