Parent Company Statements

12 Months Ended

Dec. 31, 2016

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.

Cash represents non-interest bearing deposits with PNB. Net cash provided by operating activities reflects cash payments (received from subsidiaries) for income taxes of $4.4 million, $4.1 million and $5.8 million in 2016, 2015 and 2014, respectively.

At December 31, 2016 and 2015, shareholders’ equity reflected in the Parent Company balance sheet includes $259.7 million and $199.4 million, respectively, of undistributed earnings of the Corporation’s subsidiaries which are restricted from transfer as dividends to the Corporation.

Balance Sheets
December 31, 2016 and 2015
(In thousands)	2016		2015
Assets:
Cash	$	112,067	$	102,416
Investment in subsidiaries	626,569		613,383
Debentures receivable from PNB	25,000		25,000
Other investments	2,962		2,341
Other assets	26,651		23,443
Total assets	$	793,249	$	766,583
Liabilities:
Subordinated notes	45,000		45,000
Other liabilities	6,009		8,228
Total liabilities	51,009		53,228
Total shareholders’ equity	742,240		713,355
Total liabilities and shareholders’ equity	$	793,249	$	766,583

Statements of Income
for the years ended December 31, 2016, 2015 and 2014
(In thousands)	2016			2015			2014
Income:
Dividends from subsidiaries	$	60,000		$	60,000		$	60,000
Interest and dividends	2,164			2,561			3,708
Other	1,081			560			262
Total income	63,245			63,121			63,970
Expense:
Other, net	12,159			12,341			13,807
Total expense	12,159			12,341			13,807
Income before federal taxes and equity in undistributed income of subsidiaries	51,086			50,780			50,163
Federal income tax benefit	4,357			4,671			4,787
Income before equity in undistributed income of subsidiaries	55,443			55,451			54,950
Equity in undistributed income of subsidiaries	30,692			25,561			29,007
Net income	$	86,135		$	81,012		$	83,957
Other comprehensive (loss) income (1)	(2,102		)	(2,035		)	21,811
Comprehensive income	84,033			78,977			105,768

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

Statements of Cash Flows
for the years ended December 31, 2016, 2015 and 2014
(In thousands)	2016			2015			2014
Operating activities:
Net income	$	86,135		$	81,012		$	83,957
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed income of subsidiaries	(30,692		)	(25,561		)	(29,007		)
Compensation expense for issuance of treasury stock to directors	950			963			801
Share-based compensation expense	1,864			865			458
Increase in other assets	(3,425		)	(182		)	(1,292		)
(Decrease) increase in other liabilities	(2,524		)	485			298
Net cash provided by operating activities	52,308			57,582			55,215
Investing activities:
Repayment of investments in and advances to subsidiaries	15,000			10,000			32,000
Net cash provided by investing activities	15,000			10,000			32,000
Financing activities:
Cash dividends paid	(57,653		)	(57,776		)	(57,876		)
Repayment of subordinated notes	—			—			(35,250		)
Repurchase of treasury shares	—			(6,058		)	(2,355		)
Cash payment for fractional shares	(4		)	(3		)	(5		)
Net cash used in financing activities	(57,657		)	(63,837		)	(95,486		)
Increase (decrease) in cash	9,651			3,745			(8,271		)
Cash at beginning of year	102,416			98,671			106,942
Cash at end of year	$	112,067		$	102,416		$	98,671