Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2022

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	2022		2021
	(Dollars in thousands)
Assets:
Cash and due from banks	$	22,723	$	16,038
Securities available for sale:
Other securities		1,516		1,695
Investment in Bank		890,828		843,866
Goodwill		2,185		2,185
Other assets		3,681		2,791
Total assets	$	920,933	$	866,575
Liabilities:
Subordinated debentures	$	186,965	$	122,885
Junior subordinated debentures, at fair value		50,507		56,472
Other liabilities		6,304		7,590
Total liabilities		243,776		186,947
Stockholders' Equity:
Common stock		341		341
Additional paid-in capital		264,332		263,375
Treasury stock, at average cost (4,611,232 shares and 3,561,270 at December 31, 2022 and 2021, respectively)		(98,535)		(75,293)
Retained earnings		547,507		497,889
Accumulated other comprehensive loss, net of taxes		(36,488)		(6,684)
Total equity		677,157		679,628
Total liabilities and equity	$	920,933	$	866,575

	For the years ended December 31,
Condensed Statements of Income	2022		2021		2020
	(In thousands)
Dividends from the Bank	$	50,000	$	5,000	$	78,833
Interest income		468		145		466
Interest expense		(7,771)		(6,215)		(5,858)
Net gain (loss) from fair value adjustments		7,207		(13,604)		(85)
Other operating expenses		(1,645)		(1,844)		(3,975)
Income (loss) before taxes and equity in undistributed earnings of subsidiary		48,259		(16,518)		69,381
Income tax benefit		2,684		5,403		2,274
Income (loss) before equity in undistributed earnings of subsidiary		50,943		(11,115)		71,655
Equity (deficit) in undistributed earnings of the Bank		26,002		92,908		(36,981)
Net income		76,945		81,793		34,674
Other comprehensive (loss) income, net of tax		(29,804)		9,582		(6,459)
Comprehensive net income	$	47,141	$	91,375	$	28,215

	For the years ended December 31,
Condensed Statements of Cash Flows	2022		2021		2020
	(In thousands)
Operating activities:
Net income	$	76,945	$	81,793	$	34,674
Adjustments to reconcile net income to net cash provided by operating activities:
(Equity) deficit in undistributed earnings of the Bank		(26,002)		(92,908)		36,981
Deferred income tax provision (benefit)		2,111		(3,939)		(291)
Net gain (loss) from fair value adjustments		(7,207)		13,604		85
Stock-based compensation expense		6,807		6,829		6,450
Net change in operating assets and liabilities		(2,866)		2,927		3,490
Net cash provided by operating activities		49,788		8,306		81,389
Investing activities:
Investment in Bank		(50,000)		(15,000)		—
Cash used in acquisition of Empire		—		—		(54,836)
Cash provided by acquisition of Empire		—		—		15,769
Net cash used in investing activities		(50,000)		(15,000)		(39,067)
Financing activities:
Proceeds from long-term borrowings		63,603		122,843		—
Repayment of long-term borrowings		—		(90,250)		—
Purchase of treasury stock		(29,675)		(11,370)		(3,877)
Cash dividends paid		(27,031)		(26,524)		(24,813)
Net cash provided by (used in) financing activities		6,897		(5,301)		(28,690)
Net increase (decrease) in cash and cash equivalents		6,685		(11,995)		13,632
Cash and cash equivalents, beginning of year		16,038		28,033		14,401
Cash and cash equivalents, end of year	$	22,723	$	16,038	$	28,033