Condensed Financial Statements of Parent Company |
NOTE 22 – CONDENSED FINANCIAL STATEMENTS OF PARENT
COMPANY
On September 17, 2011, Customers Bank and Customers Bancorp,
Inc. completed a Plan of Merger and reorganization pursuant to
which all of the issued and outstanding common stock of the Bank
was exchanged on a one-for-three basis for shares of common stock
and non-voting common stock of the Bancorp. Following is the
condensed balance sheet of Customers Bancorp, Inc. as of
December 31, 2013 and 2012 and the income statement and
statement of cash flows for each of the three years ending
December 31, 2013, 2012 and 2011:
Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2013 |
|
|
2012 |
|
|
|
(in thousands) |
|
Assets
|
|
|
|
|
|
|
|
|
Cash in subsidiary bank
|
|
$ |
13,254 |
|
|
$ |
44,679 |
|
Investment securities available for sale, at fair value
|
|
|
5 |
|
|
|
6 |
|
Investments in and receivables due from subsidiaries
|
|
|
432,064 |
|
|
|
225,150 |
|
Other assets
|
|
|
5,044 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
450,367 |
|
|
$ |
269,847 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ equity
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
63,744 |
|
|
|
372 |
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
63,744 |
|
|
|
372 |
|
Shareholders’ equity
|
|
|
386,623 |
|
|
|
269,475 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders’ Equity
|
|
$ |
450,367 |
|
|
$ |
269,847 |
|
|
|
|
|
|
|
|
|
|
Income Statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, |
|
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
|
(in thousands) |
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
$ |
758 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating income
|
|
|
758 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
1,923 |
|
|
|
0 |
|
|
|
0 |
|
Other
|
|
|
3,395 |
|
|
|
2,708 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expense
|
|
|
5,318 |
|
|
|
2,708 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before taxes and undistributed income of subsidiaries
|
|
|
(4,560 |
) |
|
|
(2,708 |
) |
|
|
0 |
|
Income tax benefit
|
|
|
1,596 |
|
|
|
948 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before undistributed income of subsidiaries
|
|
|
(2,964 |
) |
|
|
(1,760 |
) |
|
|
0 |
|
Equity in undistributed income of subsidiaries
|
|
|
35,658 |
|
|
|
25,578 |
|
|
|
4,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
32,694 |
|
|
|
23,818 |
|
|
|
4,034 |
|
Dividends on preferred stock
|
|
|
0 |
|
|
|
0 |
|
|
|
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders
|
|
$ |
32,694 |
|
|
$ |
23,818 |
|
|
$ |
3,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, |
|
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
|
(in thousands) |
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ |
32,694 |
|
|
$ |
23,818 |
|
|
$ |
4,034 |
|
Adjustments to reconcile net income to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in undistributed earnings of subsidiaries
|
|
|
(35,658 |
) |
|
|
(25,578 |
) |
|
|
(4,034 |
) |
Increase in other assets
|
|
|
(1,465 |
) |
|
|
(12 |
) |
|
|
0 |
|
(Decrease) increase in other liabilities
|
|
|
(281 |
) |
|
|
372 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Used in Operating Activities
|
|
|
(4,710 |
) |
|
|
(1,400 |
) |
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of investment securities available for sale
|
|
|
0 |
|
|
|
(6 |
) |
|
|
0 |
|
Payments for investments in and advances to subsidiaries
|
|
|
(177,068 |
) |
|
|
(53,500 |
) |
|
|
(4,420 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Used in Investing Activities
|
|
|
(177,068 |
) |
|
|
(53,506 |
) |
|
|
(4,420 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
97,507 |
|
|
|
94,586 |
|
|
|
13,000 |
|
Proceeds from issuance of long-term debt
|
|
|
60,336 |
|
|
|
0 |
|
|
|
0 |
|
Repayment of TARP
|
|
|
0 |
|
|
|
0 |
|
|
|
(3,037 |
) |
Payment of preferred dividends
|
|
|
0 |
|
|
|
0 |
|
|
|
(44 |
) |
Exercise and redemption of warrants
|
|
|
264 |
|
|
|
0 |
|
|
|
0 |
|
Purchase of treasury stock
|
|
|
(7,754 |
) |
|
|
0 |
|
|
|
(500 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Financing Activities
|
|
|
150,353 |
|
|
|
94,586 |
|
|
|
9,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Decrease) Increase in Cash and Cash Equivalents
|
|
|
(31,425 |
) |
|
|
39,680 |
|
|
|
4,999 |
|
Cash and Cash Equivalents – Beginning
|
|
|
44,679 |
|
|
|
4,999 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents – Ending
|
|
$ |
13,254 |
|
|
$ |
44,679 |
|
|
$ |
4,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|