Note 21 - Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2012

Condensed Financial Statements [Text Block]

21. Parent Company Only Financial Information

Earnings of the Bank are recognized by the Holding Company using the equity method of accounting. Accordingly, earnings of the Bank are recorded as increases in the Holding Company’s investment, any dividends would reduce the Holding Company’s investment in the Bank, and any changes in the Bank’s unrealized gain or loss on securities available for sale, net of taxes, would increase or decrease, respectively, the Holding Company’s investment in the Bank. The condensed financial statements for the Holding Company are presented below:

Condensed Statements of Financial Condition	December 31, 2012			December 31, 2011
	(Dollars in thousands)
Assets:
Cash and due from banks	$	21,041		$	18,798
Securities available for sale:
Other securities ($2,359 and $2,410 at fair value pursuant to the fair value option at December 31, 2012 and 2011, respectively)		3,165			3,180
Interest receivable		13			12
Investment in subsidiaries		451,190			429,353
Goodwill		2,185			2,185
Other assets		4,418			4,521
Total assets	$	482,012		$	458,049
Liabilities:
Borrowings (at fair value pursuant to the fair value option at December 31, 2012 and 2011)	$	23,923		$	26,311
Other liabilities		15,724			14,827
Total liabilities		39,647			41,138
Stockholders' Equity:
Preferred stock		-			-
Common stock		315			315
Additional paid-in capital		198,314			195,628
Treasury stock, at average cost (787,266 shares and 626,418 at December 31, 2012 and 2011, respectively)		(10,257	)		(7,355	)
Retained earnings		241,856			223,510
Accumulated other comprehensive income, net of taxes		12,137			4,813
Total equity		442,365			416,911
Total liabilities and equity	$	482,012		$	458,049

	For the years ended December 31,
Condensed Statements of Income	2012			2011			2010
	(In thousands)
Dividends from the Bank	$	20,000		$	20,000		$	10,000
Interest income		694			753			750
Interest expense		(2,957	)		(4,325	)		(4,324	)
Net gain from fair value adjustments		1,991			5,725			2,253
Other operating expenses		(730	)		(746	)		(737	)
Income before taxes and equity in undistributed earnings of subsidiary		18,998			21,407			7,942
Income tax (expense) benefit		498			(585	)		972
Income before equity in undistributed earnings of subsidiary		19,496			20,822			8,914
Equity in undistributed earnings of the Bank		14,835			14,526			29,921
Net income	$	34,331		$	35,348		$	38,835

	For the years ended December 31,
Condensed Statements of Cash Flows	2012			2011			2010
	(In thousands)
Operating activities:
Net income	$	34,331		$	35,348		$	38,835
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of the Bank		(14,835	)		(14,526	)		(29,921	)
Deferred income tax provision		858			3,003			972
Fair value adjustments for financial assets and financial liabilities		(1,991	)		(5,726	)		(2,253	)
Stock based compensation expense		3,105			2,720			2,154
Net change in operating assets and liabilities		1,287			1,542			1,499
Net cash provided by operating activities		22,755			22,361			11,286
Investing activities:
Purchases of securities available for sale		(29	)		(37	)		(62	)
Proceeds from sales and calls of securities available for sale		-			-			750
Net cash provided by (used in) investing activities		(29	)		(37	)		688
Financing activities:
Purchase of treasury stock		(5,622	)		(7,722	)		(347	)
Cash dividends paid		(15,817	)		(15,910	)		(15,788	)
Stock options exercised		956			2,040			458
Net cash used in  financing activities		(20,483	)		(21,592	)		(15,677	)
Net (decrease) increase in cash and cash equivalents		2,243			732			(3,703	)
Cash and cash equivalents, beginning of year		18,798			18,066			21,769
Cash and cash equivalents, end of year	$	21,041		$	18,798		$	18,066