Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements.

Parent Company Only Financial Information

23. 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	2021		2020
	(Dollars in thousands)
Assets:
Cash and due from banks	$	16,038	$	28,033
Securities available for sale:
Other securities		1,695		1,295
Investment in Bank		843,866		726,802
Goodwill		2,185		2,185
Other assets		2,791		839
Total assets	$	866,575	$	759,154
Liabilities:
Subordinated debentures	$	122,885	$	90,180
Junior subordinated debentures, at fair value		56,472		43,136
Other liabilities		7,590		6,841
Total liabilities		186,947		140,157
Stockholders' Equity:
Common stock		341		341
Additional paid-in capital		263,375		261,533
Treasury stock, at average cost (3,561,270 shares and 3,311,769 at December 31, 2021 and 2020, respectively)		(75,293)		(69,400)
Retained earnings		497,889		442,789
Accumulated other comprehensive loss, net of taxes		(6,684)		(16,266)
Total equity		679,628		618,997
Total liabilities and equity	$	866,575	$	759,154

	For the years ended December 31,
Condensed Statements of Income	2021		2020		2019
	(In thousands)
Dividends from the Bank	$	5,000	$	78,833	$	32,000
Interest income		145		466		250
Interest expense		(6,215)		(5,858)		(6,677)
Net loss from fair value adjustments		(13,604)		(85)		(2,725)
Other operating expenses		(1,844)		(3,975)		(2,833)
(Loss) income before taxes and equity in undistributed earnings of subsidiary		(16,518)		69,381		20,015
Income tax benefit		5,403		2,274		3,173
(Loss) income before equity in undistributed earnings of subsidiary		(11,115)		71,655		23,188
Equity in undistributed earnings of the Bank		92,908		(36,981)		18,091
Net income		81,793		34,674		41,279
Other comprehensive income (loss), net of tax		9,582		(6,459)		2,945
Comprehensive net income	$	91,375	$	28,215	$	44,224

	For the years ended December 31,
Condensed Statements of Cash Flows	2021		2020		2019
	(In thousands)
Operating activities:
Net income	$	81,793	$	34,674	$	41,279
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of the Bank		(92,908)		36,981		(18,091)
Deferred income tax benefit		(3,939)		(291)		(769)
Fair value adjustments for financial assets and financial liabilities		13,604		85		2,725
Stock-based compensation expense		6,829		6,450		7,763
Net change in operating assets and liabilities		2,927		3,490		3,945
Net cash provided by operating activities		8,306		81,389		36,852
Investing activities:
Investment in Bank		(15,000)		—		—
Cash used in acquisition of Empire		—		(54,836)		—
Cash provided by acquisition of Empire		—		15,769		—
Net cash used in investing activities		(15,000)		(39,067)		—
Financing activities:
Proceeds from long-term borrowings		122,843		—		—
Repayment of long-term borrowings		(90,250)		—		—
Purchase of treasury stock		(11,370)		(3,877)		(2,656)
Cash dividends paid		(26,524)		(24,813)		(24,149)
Stock options exercised		—		—		3
Net cash used in financing activities		(5,301)		(28,690)		(26,802)
Net (decrease) increase in cash and cash equivalents		(11,995)		13,632		10,050
Cash and cash equivalents, beginning of year		28,033		14,401		4,351
Cash and cash equivalents, end of year	$	16,038	$	28,033	$	14,401