Parent Company Statements

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

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 $4.13 million, $5.81 million and $2.54 million in 2015, 2014 and 2013, respectively.

At December 31, 2015 and 2014, shareholders’ equity reflected in the Parent Company balance sheet includes $199.4 million and $196.5 million, respectively, of undistributed earnings of the Corporation’s subsidiaries which are restricted from transfer as dividends to the Corporation.



Balance Sheets
December 31, 2015 and 2014
(In thousands)	2015		2014
Assets:
Cash	$	102,416	$	98,671
Investment in subsidiaries	613,383		599,855
Debentures receivable from PNB	25,000		25,000
Other investments	2,341		2,344
Other assets	23,443		23,260
Total assets	$	766,583	$	749,130
Liabilities:
Subordinated notes	45,000		45,000
Other liabilities	8,228		7,589
Total liabilities	53,228		52,589
Total shareholders’ equity	713,355		696,541
Total liabilities and shareholders’ equity	$	766,583	$	749,130



Statements of Income
for the years ended December 31, 2015, 2014 and 2013
(In thousands)	2015			2014		2013
Income:
Dividends from subsidiaries	$	60,000		$	60,000	$	15,000
Interest and dividends	2,561			3,708		8,659
Other	560			262		531
Total income	63,121			63,970		24,190
Expense:
Other, net	12,341			13,807		13,413
Total expense	12,341			13,807		13,413
Income before federal taxes and equity in undistributed income of subsidiaries	50,780			50,163		10,777
Federal income tax benefit	4,671			4,787		2,826
Income before equity in undistributed income of subsidiaries	55,451			54,950		13,603
Equity in undistributed income of subsidiaries	25,561			29,007		63,266
Net income	$	81,012		$	83,957	$	76,869
Other comprehensive (loss) income ⁽¹⁾	(2,035		)	21,811		(17,901		)
Comprehensive income	78,977			105,768		58,968

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



Statements of Cash Flows
for the years ended December 31, 2015, 2014 and 2013
(In thousands)	2015			2014			2013
Operating activities:
Net income	$	81,012		$	83,957		$	76,869
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed income of subsidiaries	(25,561		)	(29,007		)	(63,266		)
Compensation expense for issuance of treasury stock to directors	963			801			850
Share-based compensation expense	865			458			—
Decrease in other assets	(182		)	(1,292		)	(2,215		)
Increase (decrease) in other liabilities	485			298			(2,187		)
Net cash provided by operating activities	57,582			55,215			10,051
Investing activities:
Capital contribution in subsidiary	—			—			(45,000		)
Repayment of investments in and advances to subsidiaries	10,000			32,000			101,960
Net cash provided by investing activities	10,000			32,000			56,960
Financing activities:
Cash dividends paid	(57,776		)	(57,876		)	(57,949		)
Repayment of subordinated notes	—			(35,250		)	—
Repurchase of treasury shares	(6,058		)	(2,355		)	(843		)
Cash payment for fractional shares	(3		)	(5		)	(3		)
Net cash used in financing activities	(63,837		)	(95,486		)	(58,795		)
Increase (decrease) in cash	3,745			(8,271		)	8,216
Cash at beginning of year	98,671			106,942			98,726
Cash at end of year	$	102,416		$	98,671		$	106,942