22.

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:

	December 31,			December 31,
Condensed Statements of Financial Condition	2016			2015
	(Dollars in thousands)
Assets:
Cash and due from banks	$	13,972		$	5,654
Securities available for sale:
Other securities ($1,019 and $872 at fair value pursuant to the fair value option at December 31, 2016 and 2015, respectively)		1,317			1,170
Interest receivable		4			4
Investment in subsidiaries		612,374			502,798
Goodwill		2,185			2,185
Other assets		3,704			4,251
Total assets	$	633,556		$	516,062

Liabilities:
Subordinated debentures	$	73,414		$	-
Junior subordinated debentures, at fair value		33,959			29,018
Other liabilities		12,330			13,977
Total liabilities		119,703			42,995

Stockholders' Equity:
Preferred stock		-			-
Common stock		315			315
Additional paid-in capital		214,462			210,652
Treasury stock, at average cost (2,897,691 shares and 2,700,037 at December 31, 2016 and 2015, respectively)		(53,754	)		(48,868	)
Retained earnings		361,192			316,530
Accumulated other comprehensive loss, net of taxes		(8,362	)		(5,562	)
Total equity		513,853			473,067

Total liabilities and equity	$	633,556		$	516,062

	For the years ended December 31,
Condensed Statements of Income	2016			2015			2014
	(In thousands)
Dividends from the Bank	$	24,000		$	26,000		$	20,000
Interest income		247			242			512
Interest expense		(1,324	)		(1,075	)		(1,039	)
Net gain (loss) from fair value adjustments		(4,761	)		(231	)		779
Other operating expenses		(1,611	)		(1,298	)		(786	)
Income before taxes and equity in undistributed earnings of subsidiary		16,551			23,638			19,466
Income tax benefit		3,198			687			668
Income before equity in undistributed earnings of subsidiary		19,749			24,325			20,134
Equity in undistributed earnings of the Bank		45,167			21,884			24,105
Net income		64,916			46,209			44,239
Other comprehensive (loss) income, net of tax		(2,800	)		(2,655	)		8,468
Comprehensive income	$	62,116		$	43,554		$	52,707

	For the years ended December 31,
Condensed Statements of Cash Flows	2016			2015			2014
	(In thousands)
Operating activities:
Net income	$	64,916		$	46,209		$	44,239
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of the Bank		(45,167	)		(21,884	)		(24,105	)
Deferred income tax (benefit) provision		(2,316	)		575			17
Fair value adjustments for financial assets and financial liabilities		4,761			231			(779	)
Stock-based compensation expense		5,120			4,676			4,246
Net change in operating assets and liabilities		3,318			2,174			2,088
Net cash provided by operating activities		30,632			31,981			25,706

Investing activities:
Investment in Bank		(66,497	)		-			-
Purchases of securities available for sale		-			-			(22	)
Proceeds from sales and calls of securities available for sale		-			-			1,699
Net cash (used in) provided by investing activities		(66,497	)		-			1,677

Financing activities:
Issuance of subordinated debt, net		73,402			-			-
Purchase of treasury stock		(9,858	)		(15,605	)		(18,872	)
Cash dividends paid		(19,689	)		(18,616	)		(17,852	)
Stock options exercised		328			145			565
Net cash provided by (used in) financing activities		44,183			(34,076	)		(36,159	)

Net decrease in cash and cash equivalents		8,318			(2,095	)		(8,776	)
Cash and cash equivalents, beginning of year		5,654			7,749			16,525
Cash and cash equivalents, end of year	$	13,972		$	5,654		$	7,749