Annual report pursuant to Section 13 and 15(d)

PARENT COMPANY FINANCIAL INFORMATION

v3.8.0.1
PARENT COMPANY FINANCIAL INFORMATION
12 Months Ended
Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
PARENT COMPANY FINANCIAL INFORMATION
PARENT COMPANY FINANCIAL INFORMATION
 
The primary source of funds for the dividends paid by Union 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, 2017, the aggregate amount of unrestricted funds that could be transferred from the Bank to the Parent Company without prior regulatory approval totaled approximately $100.4 million, or 9.60%, of the consolidated net assets.
 
Financial information for the Parent Company is as follows:
 
PARENT COMPANY
CONDENSED BALANCE SHEETS
AS OF DECEMBER 31, 2017 and 2016
(Dollars in thousands)
 
 
2017
 
2016
ASSETS
 

 
 

Cash
$
2,611

 
$
10,681

Premises and equipment, net
11,061

 
11,470

Other assets
15,036

 
10,864

Investment in subsidiaries
1,263,545

 
1,213,484

Total assets
$
1,292,253

 
$
1,246,499

LIABILITIES AND STOCKHOLDERS' EQUITY
 

 
 

Long-term borrowings
148,201

 
148,000

Trust preferred capital notes
86,819

 
86,559

Other liabilities
10,904

 
10,908

Total liabilities
245,924

 
245,467

Total stockholders' equity
1,046,329

 
1,001,032

Total liabilities and stockholders' equity
$
1,292,253

 
$
1,246,499


 

PARENT COMPANY
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2017, 2016, and 2015
(Dollars in thousands)
 
 
2017
 
2016
 
2015
Income:
 

 
 

 
 

Interest and dividend income
$
3

 
$
23

 
$
8

Dividends received from subsidiaries
33,350

 
51,439

 
51,496

Other operating income
1,308

 
1,314

 
1,228

Total income
34,661

 
52,776

 
52,732

Expenses:
 

 
 

 
 

Interest expense
11,423

 
5,656

 
4,697

Other operating expenses
7,130

 
5,214

 
4,807

Total expenses
18,553

 
10,870

 
9,504

Income before income taxes and equity in undistributed net income from subsidiaries
16,108

 
41,906

 
43,228

Income tax benefit
(9,169
)
 
(3,586
)
 
(3,051
)
Equity in undistributed net income from subsidiaries
47,646

 
31,984

 
20,800

Net income
$
72,923

 
$
77,476

 
$
67,079

Comprehensive income
$
75,848

 
$
67,415

 
$
61,076


 
PARENT COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2017, 2016, and 2015
(Dollars in thousands)
 
 
2017
 
2016
 
2015
Operating activities:
 

 
 

 
 

Net income
$
72,923

 
$
77,476

 
$
67,079

Adjustments to reconcile net income to net cash provided by operating activities:
 

 
 

 
 

Equity in undistributed net income of subsidiaries
(47,646
)
 
(31,984
)
 
(20,800
)
Depreciation of premises and equipment
439

 
438

 
435

Acquisition accounting amortization, net
260

 
247

 
235

Issuance of common stock grants for services
724

 
533

 
564

Net (increase) decrease in other assets
(4,167
)
 
(2,402
)
 
902

Net increase in other liabilities
5,283

 
5,533

 
6,124

Net cash and cash equivalents provided by operating activities
27,816

 
49,841

 
54,539

Investing activities:
 

 
 

 
 

Net increase in premises and equipment
(35
)
 
(33
)
 
(35
)
Proceeds from (payments for) equity method investment
72

 

 
(355
)
Payments for investments in and advances to subsidiaries

 
(125,000
)
 

Repayment of investments in and advances to subsidiaries

 
540

 

Net cash and cash equivalents provided by (used in) investing activities
37

 
(124,493
)
 
(390
)
Financing activities:
 

 
 

 
 

Repayments of short-term borrowings

 

 
(8,000
)
Repayments of long-term borrowings

 
(7,500
)
 
(625
)
Proceeds from issuance of long-term borrowings

 
148,000

 

Cash dividends paid
(35,393
)
 
(33,672
)
 
(29,082
)
Issuance (repurchase) of common stock
1,037

 
(31,295
)
 
(15,332
)
Vesting of restricted stock, including tax effects
(1,567
)
 
(586
)
 
(416
)
Net cash and cash equivalents provided by (used in) financing activities
(35,923
)
 
74,947

 
(53,455
)
Net increase (decrease) in cash and cash equivalents
(8,070
)
 
295

 
694

Cash and cash equivalents at beginning of the period
10,681

 
10,386

 
9,692

Cash and cash equivalents at end of the period
$
2,611

 
$
10,681

 
$
10,386