Parent Company Statements

12 Months Ended

Dec. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Parent Company Statements

Parent Company Statements

The Parent Company statements should be read in conjunction with the consolidated financial statements and the information set forth below. Investments in subsidiaries are accounted for using the equity method of accounting. The effective tax rate for the Parent Company is substantially less than the statutory rate due principally to tax-exempt dividends from subsidiaries.

Cash represents non-interest bearing deposits with PNB. Net cash provided by operating activities reflects cash payments (received from subsidiaries) for income taxes of $5.81 million, $2.54 million and $4.54 million in 2014, 2013 and 2012, respectively.

At December 31, 2014 and 2013, shareholders’ equity reflected in the Parent Company balance sheet includes $197.9 million and $196.0 million, respectively, of undistributed earnings of the Corporation’s subsidiaries which are restricted from transfer as dividends to the Corporation.

Balance Sheets
December 31, 2014 and 2013
(In thousands)	2014		2013
Assets:
Cash	$	98,671	$	106,942
Investment in subsidiaries	601,912		582,992
Debentures receivable from PNB	25,000		25,000
Other investments	2,344		2,297
Other assets	23,260		21,984
Total assets	$	751,187	$	739,215
Liabilities:
Subordinated notes	45,000		80,250
Other liabilities	7,589		7,218
Total liabilities	52,589		87,468
Total shareholders’ equity	698,598		651,747
Total liabilities and shareholders’ equity	$	751,187	$	739,215

Statements of Income
for the years ended December 31, 2014, 2013 and 2012
(In thousands)	2014		2013			2012
Income:
Dividends from subsidiaries	$	60,000	$	15,000		$	197,000
Interest and dividends	3,708		8,659			10,027
Other	262		531			232
Total income	63,970		24,190			207,259
Expense:
Other, net	13,807		13,413			11,869
Total expense	13,807		13,413			11,869
Income before federal taxes and equity in undistributed income (losses) of subsidiaries	50,163		10,777			195,390
Federal income tax benefit	4,787		2,826			1,806
Income before equity in undistributed income (losses) of subsidiaries	54,950		13,603			197,196
Equity in undistributed income (losses) of subsidiaries	29,140		63,624			(118,566		)
Net income	$	84,090	$	77,227		$	78,630
Other comprehensive income (loss) (1)	21,811		(17,901		)	(8,687		)
Comprehensive income	105,901		59,326			69,943

(1) See Consolidated Statements of Comprehensive Income for other comprehensive income detail

Statements of Cash Flows
for the years ended December 31, 2014, 2013 and 2012
(In thousands)	2014			2013			2012
Operating activities:
Net income	$	84,090		$	77,227		$	78,630
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed (income) losses of subsidiaries	(29,140		)	(63,624		)	118,566
Compensation expense for issuance of treasury stock to directors	801			850			407
Share-based compensation expense	458			—			—
(Decrease) increase in other assets	(1,292		)	(2,215		)	5,748
Increase (decrease) in other liabilities	298			(2,187		)	1,724
Net cash provided by operating activities	55,215			10,051			205,075
Investing activities:
Capital contribution in subsidiary	—			(45,000		)	(45,000		)
Purchase of debentures receivable from subsidiaries	—			—			(115,000		)
Repayment of investments in and advances to subsidiaries	32,000			101,960			52,000
Net cash provided by (used in) investing activities	32,000			56,960			(108,000		)
Financing activities:
Cash dividends paid	(57,876		)	(57,949		)	(60,154		)
Payment to repurchase warrants	—			—			(2,843		)
Payment to repurchase preferred shares	—			—			(100,000		)
Repayment of subordinated notes	(35,250		)	—			—
Repurchase of treasury shares	(2,355		)	(843		)	—
Proceeds from issuance of subordinated notes	—			—			30,000
Cash payment for fractional shares	(5		)	(3		)	(2		)
Net cash used in financing activities	(95,486		)	(58,795		)	(132,999		)
(Decrease) increase in cash	(8,271		)	8,216			(35,924		)
Cash at beginning of year	106,942			98,726			134,650
Cash at end of year	$	98,671		$	106,942		$	98,726