PARENT COMPANY FINANCIAL STATEMENTS

The parent company only condensed statements of financial condition as of December 31, 2015 and 2014, and the related condensed statements of operations and condensed statements of cash flows for the years ended December 31, 2015, 2014, and 2013 are presented below:

Condensed Statements of Financial Condition



	December 31,
	2015		2014
	(In thousands)
ASSETS
Cash and cash equivalents	$	149,541	$	31,362
FHLB and other bank stock	78		78
Loans and leases receivable	626		635
Other assets	13,087		35,222
Investment in subsidiaries	776,986		541,050
Total assets	$	940,318	$	608,347
LIABILITIES AND STOCKHOLDERS’ EQUITY
Notes payable, net	261,876		93,569
Accrued expenses and other liabilities	26,037		11,463
Stockholders’ equity	652,405		503,315
Total liabilities and stockholders’ equity	$	940,318	$	608,347

Condensed Statements of Operations



	Year Ended December 31,
	2015			2014			2013
	(In thousands)
Income
Dividends from subsidiaries	$	8,500		$	—		$	—
Interest income on loans	5			361			159
Gain on sale of loans	—			209			—
Other operating income	—			8			5
Total income	8,505			578			164
Expenses
Interest expense for notes payable	14,659			7,861			6,941
Other operating expense	13,810			12,478			14,015
Total expenses	28,469			20,339			20,956
Loss before income taxes and equity in undistributed earnings of subsidiaries	(19,964		)	(19,761		)	(20,792		)
Income tax (benefit) expense	(8,431		)	(18,226		)	20
Loss before equity in undistributed earnings of subsidiaries	(11,533		)	(1,535		)	(20,812		)
Equity in undistributed earnings of subsidiaries	73,605			31,740			20,728
Net income (loss)	$	62,072		$	30,205		$	(84	)

Condensed Statements of Cash Flows



	Year Ended December 31,
	2015			2014			2013
	(In thousands)
Cash flows from operating activities:
Net income (loss)	$	62,072		$	30,205		$	(84	)
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Equity in undistributed earnings of subsidiaries	(73,605		)	(31,740		)	(20,728		)
Stock option compensation expense	336			260			121
Stock award compensation expense	2,635			1,824			806
Stock appreciation right expense	202			1,889			1,072
Amortization of debt issuance cost	727			686			385
Net gain on sale of loans	—			(209		)	—
Amortization of premiums and discounts on purchased loans	—			(298		)	—
Deferred income tax (benefit) expense	(3,575		)	(1,298		)	—
Net change in other assets and liabilities	37,515			(26,471		)	8,601
Net cash provided by (used in) operating activities	26,307			(25,152		)	(9,827		)
Cash flows from investing activities:
Loan purchases from bank and principal collections, net	9			568			(6,043		)
Proceeds from sale of loans held-for-investment	—			5,347			—
Capital contribution to bank subsidiary	(160,000		)	(127,000		)	(81,000		)
Capital contribution to non-bank subsidiary	—			—			(100		)
Investment in acquired business	—			—			(29,465		)
Net cash used in investing activities	(159,991		)	(121,085		)	(116,608		)
Cash flows from financing activities:
Net proceeds from issuance of long term debt	172,304			—			—
Net proceeds from issuance of tangible equity units	—			64,959			—
Net proceeds from issuance of common stock	—			103,656			67,792
Net proceeds from issuance of preferred stock	110,873			—			37,943
Payment of Amortizing Debt	(4,715		)	(2,157		)	—
Purchase of treasury stock	—			(280		)	(5,005		)
Proceeds from exercise of stock options	501			993			540
Dividends paid on stock appreciation rights	(699		)	(471		)	—
Dividends paid on common stock	(16,955		)	(10,669		)	(6,736		)
Dividends paid on preferred stock	(9,446		)	(3,652		)	(2,185		)
Net cash provided by financing activities	251,863			152,379			92,349
Net change in cash and cash equivalents	118,179			6,142			(34,086		)
Cash and cash equivalents at beginning of year	31,362			25,220			59,306
Cash and cash equivalents at end of year	$	149,541		$	31,362		$	25,220