Condensed Statements of Cash Flows Year Ended December 31,  (In thousands) 2002 2001 2000 Cash flows from operating activities: Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 232,931 $ 207,322 $ 186,245  Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . (26,425) (1,271) 24,014  Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,323  5,381 13,381 Total adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,102) 4,110 37,395 Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,829  211,432 223,640 Cash flows from investing activities: Net (increase) decrease in interest-bearing deposits with banks . . . . . . . . . . . . . . . 861  21,339 (21,357) Investments in subsidiaries, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – (6,000) –  Loan to deferred compensation plans, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,783 (4,646) (416) Purchases of premises and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (112) (273) (4,300) Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – 525 Net cash provided (used) by investing activities . . . . . . . . . . . . . . . . . . . . . . . . 10,532 10,420 (25,548) Cash flows from financing activities: Dividends paid on common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (86,430) (77,473) (66,101) Purchases of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (148,030) (148,043) (73,824) Net increase (decrease) in short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . 11,500  2,000 (64,357) Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 914  1,510 5,708 Net cash used by financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (222,046) (222,006) (198,574) Net increase (decrease) in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315  (154) (482) Cash at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37  191 673 Cash at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 352  $ 37 $ 191 Effective January 1, 2001, certain company-wide functions previously included in the parent company transferred, with related assets and liabilities, to TCF National Bank. From time to time, TCF is a party to legal proceedings arising out of its lending, leasing, deposit operations or other activities. TCF engages in foreclosure proceedings and other collection actions as part of its loan and leasing collection activities. From time to time, borrowers and other customers have also brought actions against TCF, in some cases claiming substantial amounts of damages. Some financial  services companies have been subjected to significant exposure in connection with litigation, including class action litigation and puni- tive damage claims, and it is possible that the Company could be sub- jected to such a claim in an amount which could be material. Based upon a review with its legal counsel, management believes that the ultimate disposition of pending litigation will not have a material effect on TCF’s financial condition. 28. Litigation and Contingent Liabilities page 75