Parent Company Financial Information

Following are statements of the parent company:



Statements of Condition	December 31
(Dollars in thousands)	2018			2017
Assets:
Cash	$	334,485		$	254,938
Securities available-for-sale (a)	—			1,836
Notes receivable	2,888			3,067
Allowance for loan losses	(925		)	(925		)
Investments in subsidiaries:
Bank	4,741,105			4,618,249
Non-bank	20,281			22,932
Other assets (a)	180,757			207,878
Total assets	$	5,278,591		$	5,107,975
Liabilities and equity:
Accrued employee benefits and other liabilities	$	158,648		$	149,124
Term borrowings	629,994			673,794
Total liabilities	788,642			822,918
Total equity	4,489,949			4,285,057
Total liabilities and equity	$	5,278,591		$	5,107,975

(a) Equity investments were reclassified to Other assets upon adoption of ASU 2016-01 on January 1, 2018.



Statements of Income	Year Ended December 31
(Dollars in thousands)	2018			2017			2016
Dividend income:
Bank	$	420,000		$	250,000		$	250,000
Non-bank	1,386			1,097			1,361
Total dividend income	421,386			251,097			251,361
Other income/(loss)	112			190			(207		)
Total income	421,498			251,287			251,154
Interest expense:
Term borrowings	31,315			17,936			14,238
Total interest expense	31,315			17,936			14,238
Compensation, employee benefits and other expense	53,401			43,783			38,926
Total expense	84,716			61,719			53,164
Income/(loss) before income taxes	336,782			189,568			197,990
Income tax(benefit)/expense	(38,509		)	512			(22,981		)
Income/(loss) before equity in undistributed net income of subsidiaries	375,291			189,056			220,971
Equity in undistributed net income/(loss) of subsidiaries:
Bank	170,939			(24,255		)	9,508
Non-bank	(1,188		)	714			(3,433		)
Net income/(loss) attributable to the controlling interest	$	545,042		$	165,515		$	227,046



Statements of Cash Flows	Year Ended December 31
(Dollars in thousands)		2018			2017			2016
Operating activities:
Net income/(loss)	$	545,042		$	165,515		$	227,046
Less undistributed net income/(loss) of subsidiaries		169,751			(23,541	)		6,075
Income/(loss) before undistributed net income of subsidiaries		375,291			189,056			220,971
Adjustments to reconcile income to net cash provided by operating activities:
Depreciation, amortization, and other		15			15			53
(Gain)/loss on securities		(28	)		(109	)		148
Provision for deferred income taxes		3,212			7,727			—
Stock-based compensation expense		22,398			19,625			16,719
Net (increase)/decrease in interest receivable and other assets		18,214			8,605			(2,228	)
Net (decrease)/increase in interest payable and other liabilities		(10,702	)		13,172			(2,842	)
Total adjustments		33,109			49,035			11,850
Net cash provided/(used) by operating activities		408,400			238,091			232,821
Investing activities:
Securities:
Sales and prepayments		65			318			275
Purchases		—			—			(400	)
Premises and equipment:
Sales/(purchases)		(43	)		7			(17	)
Return on investment in subsidiary		1,597			1,871			129
Investment in subsidiary					—			—
Cash paid for business combination, net		(39,916	)		(126,149	)		—
Net cash provided/(used) by investing activities		(38,297	)		(123,953	)		(13	)
Financing activities:
Preferred stock:
Cash dividends		(6,200	)		(6,200	)		(6,200	)
Common stock:
Exercise of stock options		4,482			6,132			22,479
Cash dividends		(138,706	)		(79,904	)		(63,504	)
Repurchase of shares		(104,768	)		(5,554	)		(97,396	)
Term borrowings:
Repayment of term borrowings		(45,364	)		—			—
Net cash (used)/provided by financing activities		(290,556	)		(85,526	)		(144,621	)
Net increase/(decrease) in cash and cash equivalents		79,547			28,612			88,187
Cash and cash equivalents at beginning of year		254,938			226,326			138,139
Cash and cash equivalents at end of year	$	334,485		$	254,938		$	226,326
Total interest paid	$	29,186		$	17,321		$	13,261
Income taxes received from subsidiaries		49,056			23,020			27,126