CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY (Tables)

12 Months Ended

Dec. 31, 2016

CONDENSED BALANCE SHEETS



	December 31,
(In thousands)	2016		2015
Assets
Cash due from Berkshire Bank	$	43,018	$	36,082
Investment in subsidiaries	1,127,706		931,171
Securities available for sale, at fair value	23,651		726
Other assets	1,372		10,179
Total assets	$	1,195,747	$	978,158

Liabilities and Shareholders’ Equity
Short term debt	$	10,000	$	—
Subordinated notes	89,161		88,983
Accrued expenses	3,288		1,986
Shareholders’ equity	1,093,298		887,189
Total liabilities and shareholders’ equity	$	1,195,747	$	978,158

CONDENSED STATEMENTS OF INCOME



	Years Ended December 31,
(In thousands)	2016			2015			2014
Income:
Dividends from subsidiaries	$	33,000		$	34,000		$	12,000
Other	4,072			2,763			2,317
Total income	37,072			36,763			14,317
Interest expense	5,743			5,674			5,847
Non-interest expenses	3,740			3,670			2,286
Total expense	9,483			9,344			8,133
Income before income taxes and equity in undistributed income of subsidiaries	27,589			27,419			6,184
Income tax benefit	(2,123		)	(2,518		)	(2,330		)
Income before equity in undistributed income of subsidiaries	29,712			29,937			8,514
Equity in undistributed income of subsidiaries	28,958			19,581			25,230

Net income	$	58,670		$	49,518		$	33,744

CONDENSED STATEMENTS OF CASH FLOWS



	Years Ended December 31,
(In thousands)	2016			2015			2014
Cash flows from operating activities:
Net income	$	58,670		$	49,518		$	33,744
Adjustments to reconcile net income to net cash (used) provided by operating activities:
Equity in undistributed income of subsidiaries	(28,958		)	(19,581		)	(25,230		)
Other, net	1,988			10,904			3,247
Net cash provided by operating activities	31,700			40,841			11,761

Cash flows from investing activities:
Acquisitions, net of cash paid	—			(3,293		)	—
Purchase of securities	(18,016		)	(18		)	—
Other, net	9,728			—			—
Net cash (used) provided by investing activities	(8,288		)	(3,311		)	—

Cash flows from financing activities:
Proceed from issuance of short term debt	9,349			(9,935		)	—
Net proceeds from common stock	3,712			—			—
Net proceeds from reissuance of treasury stock	—			240			1,064
Payment to repurchase common stock	(4,632		)	(550		)	(2,468		)
Common stock cash dividends paid	(24,916		)	(21,903		)	(18,075		)
Other, net	11			167			(1,903		)
Net cash provided (used) by financing activities	(16,476		)	(31,981		)	(21,382		)

Net change in cash and cash equivalents	6,936			5,549			(9,621		)

Cash and cash equivalents at beginning of year	36,082			30,533			40,154

Cash and cash equivalents at end of year	$	43,018		$	36,082		$	30,533