PARENT COMPANY FINANCIALS ONLY

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

PARENT COMPANY FINANCIAL STATEMENTS

PARENT COMPANY FINANCIAL STATEMENTS

Condensed financial information relative to the Parent Company’s balance sheets at December 31, 2016 and 2015 and the related statements of income and cash flows for the years ended December 31, 2016, 2015, and 2014 are presented below. The statement of stockholders’ equity is not presented below as the parent company’s stockholders’ equity is that of the consolidated Company.

BALANCE SHEETS

	December 31
	2016		2015
	(Dollars in thousands)
Assets
Cash (1)	$	42,596	$	35,428
Investments in subsidiaries(2)	935,778		851,743
Prepaid income taxes	625		530
Deferred tax asset	216		2,229
Derivative instruments(1)	1,364		—
Total assets	$	980,579	$	889,930
Liabilities and stockholders’ equity
Dividends payable	$	7,834	$	6,824
Junior subordinated debentures	73,107		73,306
Subordinated debentures	34,635		34,589
Derivative instruments(1)	—		2,109
Other liabilities	313		1,639
Total liabilities	115,889		118,467
Stockholders’ equity	864,690		771,463
Total liabilities and stockholders’ equity	$	980,579	$	889,930

(1) Entire balance eliminates in consolidation.

(2) $933.6 million and $849.5 million eliminate in consolidation at December 31, 2016 and 2015, respectively.

STATEMENTS OF INCOME

	Years Ended December 31
	2016			2015			2014
	(Dollars in thousands)
Income
Dividends received from subsidiaries(1)	$	44,598		$	38,153		$	40,170
Interest income(2)	98			78			57
Total income	44,696			38,231			40,227
Expenses
Interest expense	5,901			5,769			4,225
Other expenses	—			29			—
Total expenses	5,901			5,798			4,225
Income before income taxes and equity in undistributed income of subsidiaries	38,795			32,433			36,002
Income tax benefit	(1,791		)	(2,301		)	(1,298		)
Income of parent company	40,586			34,734			37,300
Equity in undistributed income of subsidiaries	36,062			30,226			22,545
Net income	$	76,648		$	64,960		$	59,845

(1) Income of $62,000, $55,000 and $53,000 was not eliminated in consolidation for the years ended December 31, 2016, 2015, and 2014, respectively.

(2) Entire balance eliminated in consolidation.

STATEMENTS OF CASH FLOWS

	Years Ended December 31
	2016			2015			2014
	(Dollars in thousands)
Cash flows from operating activities
Net income	$	76,648		$	64,960		$	59,845
Adjustments to reconcile net income to cash provided by operating activities
Accretion	(154		)	(150		)	(194		)
Deferred income tax expense	678			3,266			293
Change in other assets	423			7,488			—
Change in other liabilities	(5,532		)	(254		)	(267		)
Equity in undistributed income of subsidiaries	(36,062		)	(30,226		)	(22,545		)
Net cash provided by operating activities	36,001			45,084			37,132
Cash flows used in investing activities
Cash paid for acquisitions, net of cash acquired (1)	(950		)	(51,680		)	—
Net cash used in investing activities	(950		)	(51,680		)	—
Cash flows provided by (used in) financing activities
Repayment of short-term borrowings	—			—			(5,000		)
Proceeds from issuance of subordinated debentures	—			—			35,000
Restricted stock awards issued, net of awards surrendered	(696		)	(657		)	(641		)
Net proceeds from exercise of stock options	201			1,367			2,333
Proceeds from shares issued under the direct stock purchase plan	2,323			2,695			1,555
Common dividends paid	(29,711		)	(26,172		)	(22,443		)
Net cash provided by (used in) financing activities	(27,883		)	(22,767		)	10,804
Net increase (decrease) in cash and cash equivalents	7,168			(29,363		)	47,936
Cash and cash equivalents at the beginning of the year	35,428			64,791			16,855
Cash and cash equivalents at the end of the year	$	42,596		$	35,428		$	64,791

(1) The majority of the net assets acquired at the parent company represented New England Bancorp Inc.'s investment in its wholly owned subsidiary, Bank of Cape Cod, which was eliminated in consolidation.