Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements.

Parent Company Only Financial Information

24. 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	2020		2019
	(Dollars in thousands)
Assets:
Cash and due from banks	$	28,033	$	14,401
Securities available for sale:
Other securities		1,295		1,332
Investment in Bank		726,802		684,643
Goodwill		2,185		2,185
Other assets		839		1,897
Total assets	$	759,154	$	704,458
Liabilities:
Subordinated debentures	$	90,180	$	74,319
Junior subordinated debentures, at fair value		43,136		44,384
Other liabilities		6,841		6,083
Total liabilities		140,157		124,786
Stockholders' Equity:
Common stock		341		315
Additional paid-in capital		261,533		226,691
Treasury stock, at average cost (3,311,769 shares and 3,373,389 at December 31, 2020 and 2019, respectively)		(69,400)		(71,487)
Retained earnings		442,789		433,960
Accumulated other comprehensive loss, net of taxes		(16,266)		(9,807)
Total equity		618,997		579,672
Total liabilities and equity	$	759,154	$	704,458

	For the years ended December 31,
Condensed Statements of Income	2020		2019		2018
	(In thousands)
Dividends from the Bank	$	78,833	$	32,000	$	34,000
Interest income		466		250		275
Interest expense		(5,858)		(6,677)		(6,479)
Net loss from fair value adjustments		(85)		(2,725)		(4,769)
Other operating expenses		(3,975)		(2,833)		(1,391)
Income before taxes and equity in undistributed earnings of subsidiary		69,381		20,015		21,636
Income tax benefit		2,274		3,173		3,907
Income before equity in undistributed earnings of subsidiary		71,655		23,188		25,543
Equity in undistributed earnings of the Bank		(36,981)		18,091		29,547
Net income		34,674		41,279		55,090
Other comprehensive gain (loss), net of tax		(6,459)		2,945		(2,472)
Comprehensive net income	$	28,215	$	44,224	$	52,618

	For the years ended December 31,
Condensed Statements of Cash Flows	2020		2019		2018
	(In thousands)
Operating activities:
Net income	$	34,674	$	41,279	$	55,090
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of the Bank		36,981		(18,091)		(29,547)
Deferred income tax benefit		(291)		(769)		(1,915)
Fair value adjustments for financial assets and financial liabilities		85		2,725		4,769
Stock-based compensation expense		6,450		7,763		7,016
Net change in operating assets and liabilities		3,490		3,945		4,246
Net cash provided by operating activities		81,389		36,852		39,659
Investing activities:
Cash used in acquisition of Empire		(54,836)
Cash provided by acquisition of Empire		15,769		—		—
Net cash used in investing activities		(39,067)		—		—
Financing activities:
Purchase of treasury stock		(3,877)		(2,656)		(22,585)
Cash dividends paid		(24,813)		(24,149)		(22,927)
Stock options exercised		—		3		6
Net cash used in financing activities		(28,690)		(26,802)		(45,506)
Net increase (decrease) in cash and cash equivalents		13,632		10,050		(5,847)
Cash and cash equivalents, beginning of year		14,401		4,351		10,198
Cash and cash equivalents, end of year	$	28,033	$	14,401	$	4,351