| PARENT COMPANY FINANCIAL INFORMATION |
19.PARENT COMPANY FINANCIAL INFORMATION
The primary source of funds for the dividends paid by Union First Market Bankshares Corporation (for this note only, the “Parent Company”) is dividends received from its subsidiaries. The payments of dividends by the Bank to the Parent Company are subject to certain statutory limitations which contemplate that the current year earnings and earnings retained for the two preceding years may be paid to the Parent Company without regulatory approval. As of December 31, 2013, the aggregate amount of unrestricted funds, which could be transferred from the Company’s Bank to the Parent Company, without prior regulatory approval, totaled approximately $46.8 million, or 10.7%, of the consolidated net assets.
Financial information for the Parent Company is as follows:
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PARENT COMPANY
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BALANCE SHEETS
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AS OF DECEMBER 31, 2013 and 2012
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(Dollars in thousands)
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2013
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2012
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ASSETS
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Cash
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$ 10,092
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$ 6,505
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Bank premises and equipment, net
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12,673
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13,141
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Other assets
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6,662
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4,593
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Investment in subsidiaries
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486,168
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490,199
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Total assets
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$ 515,595
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$ 514,438
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LIABILITIES & STOCKHOLDERS' EQUITY
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Long-term borrowings
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$ 8,750
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$ 9,375
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Trust preferred capital notes
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60,310
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60,310
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Other liabilities
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8,296
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8,890
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Total liabilities
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77,356
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78,575
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Common stock
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33,020
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33,510
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Surplus
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170,770
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176,635
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Retained earnings
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236,639
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215,634
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Accumulated other comprehensive income (loss)
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(2,190)
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10,084
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Total stockholders' equity
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438,239
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435,863
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Total liabilities and stockholders' equity
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$ 515,595
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$ 514,438
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PARENT COMPANY
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STATEMENTS OF INCOME
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YEARS ENDED DECEMBER 31, 2013, 2012 and 2011
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(Dollars in thousands)
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2013
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2012
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2011
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Income:
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Interest and dividend income
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$ 6
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$ 8
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$ 624
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Dividends received from subsidiaries
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31,323
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23,141
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8,612
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Equity in undistributed net income from subsidiaries
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7,685
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15,158
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23,941
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Gains on sale of securities, net
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-
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-
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430
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Gains (losses) on sale of fixed assets, net
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-
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-
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(1)
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Other operating income
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1,155
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1,155
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1,616
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Total income
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40,169
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39,462
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35,222
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Expenses:
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Interest expense
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$ 3,060
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3,152
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2,627
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Occupancy expenses
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583
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586
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590
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Furniture and equipment expenses
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-
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-
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1,023
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Other operating expenses
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2,030
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313
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537
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Total expenses
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5,673
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4,051
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4,777
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Net income
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34,496
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35,411
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30,445
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Dividends paid on preferred stock
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$ -
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-
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1,499
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Amortization of discount on preferred stock
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$ -
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-
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1,177
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Net income available to common stockholders
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$ 34,496
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$ 35,411
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$ 27,769
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PARENT COMPANY
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CONDENSED STATEMENTS OF CASH FLOWS
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YEARS ENDED DECEMBER 31, 2013, 2012 and 2011
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(Dollars in thousands)
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2013
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2012
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2011
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Operating activities:
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Net income
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$ 34,496
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$ 35,411
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$ 30,445
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Adjustments to reconcile net income to net cash provided by operating activities:
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Equity in undistributed net income of subsidiaries
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(7,685)
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(15,158)
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(23,941)
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Depreciation of bank premises and equipment
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468
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473
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1,089
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Gains on sale of investment securities
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-
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-
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(430)
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Tax benefit from exercise of equity-based awards
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-
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-
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15
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Issuance of common stock grants for services
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477
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565
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564
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Net (increase) decrease in other assets
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(2,069)
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(756)
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811
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Net (decrease) increase in other liabilities
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1,737
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2,781
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1,744
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Net cash and cash equivalents provided by operating activities
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27,424
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23,316
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10,297
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Investing activities:
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Sale of securities available for sale
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-
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-
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13,588
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Net decrease (increase) in bank premises and equipment
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-
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(23)
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1,455
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Payments for equity method investment
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(2,000)
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-
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-
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Payments for investments in and advances to subsidiaries
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-
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-
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(2,391)
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Net cash and cash equivalents provided by (used in) investing activities
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(2,000)
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(23)
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12,652
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Financing activities:
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Payments on long-term borrowings
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(625)
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(625)
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(625)
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Cash dividends paid
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(12,535)
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(8,969)
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(9,245)
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Repurchase of preferred stock
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-
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-
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(35,595)
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Net Issuance (repurchase) of common stock
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(8,677)
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(14,469)
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574
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Net cash and cash equivalents used in financing activities
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(21,837)
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(24,063)
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(44,891)
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Net increase (decrease) in cash and cash equivalents
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3,587
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(770)
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(21,942)
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Cash and cash equivalents at beginning of the period
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6,505
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7,275
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29,217
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Cash and cash equivalents at end of the period
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$ 10,092
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$ 6,505
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$ 7,275
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