PARENT COMPANY ONLY FINANCIAL INFORMATION

Condensed balance sheets of First Banks, Inc. as of December 31, 2013 and 2012 and condensed statements of operations and cash flows for the years ended December 31, 2013, 2012 and 2011 are shown below:

CONDENSED BALANCE SHEETS



	December 31,
	2013		2012
	(dollars expressed in thousands)
Assets
Cash deposited in First Bank (unrestricted cash)	$	1,864	2,744
Investment in common securities - TRuPS	10,678		10,678
Investment in subsidiaries	838,489		657,838
Other assets	42,982		3,583
Total assets	$	894,013	674,843

Liabilities and Stockholders’ Equity
Subordinated debentures	$	354,210	354,133
Accrued interest payable - TRuPS	62,855		47,878
Dividends payable	77,800		61,931
Accrued expenses and other liabilities	4,726		4,597
Total liabilities	499,591		468,539
First Banks, Inc. stockholders’ equity	394,422		206,304
Total liabilities and stockholders’ equity	$	894,013	674,843

CONDENSED STATEMENTS OF OPERATIONS



	Years Ended December 31,
	2013			2012		2011
	(dollars expressed in thousands)
Income:
Management fees from subsidiaries	$	23		3		28
Net loss on derivative instruments	—			(43	)	(194	)
Other	458			578		509
Total income	481			538		343
Expense:
Interest	15,054			14,847		13,623
Other	933			1,506		(374	)
Total expense	15,987			16,353		13,249
Loss before benefit for income taxes and equity in undistributed earnings (losses) of subsidiaries	(15,506		)	(15,815	)	(12,906	)
Benefit for income taxes	(38,841		)	(348	)	(46	)
Income (loss) before equity in undistributed earnings (losses) of subsidiaries	23,335			(15,467	)	(12,860	)
Equity in undistributed earnings (losses) of subsidiaries	218,409			41,745		(28,290	)
Net income (loss) attributable to First Banks, Inc.	$	241,744		26,278		(41,150	)

CONDENSED STATEMENTS OF CASH FLOWS



	Years Ended December 31,
	2013			2012		2011
	(dollars expressed in thousands)
Cash flows from operating activities:
Net income (loss) attributable to First Banks, Inc.	$	241,744		26,278		(41,150	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Net (income) loss of subsidiaries	(218,409		)	(41,745	)	28,290
Other, net	(24,215		)	15,410		12,042
Net cash used in operating activities	(880		)	(57	)	(818	)
Cash flows from financing activities:
Payment of preferred stock dividends	—			—		—
Net cash used in financing activities	—			—		—
Net decrease in unrestricted cash	(880		)	(57	)	(818	)
Unrestricted cash, beginning of year	2,744			2,801		3,619
Unrestricted cash, end of year	$	1,864		2,744		2,801
Noncash investing activities:
Cash paid for interest	$	—		—		—

The parent company’s unrestricted cash was $1.9 million and $2.7 million at December 31, 2013 and 2012, respectively. On March 20, 2013, the Company entered into a Credit Agreement that provides for a $5.0 million secured revolving line of credit to be utilized for general working capital needs, as further described in Note 11 and Note 20 to the consolidated financial statements. This borrowing arrangement is intended to supplement, on a contingent basis, the parent company’s overall level of unrestricted cash to cover the parent company’s projected operating expenses should the parent company's existing cash resources become insufficient in the future. There have been no balances outstanding under the Credit Agreement since its inception.

The Company’s obligations related to interest payments on its outstanding junior subordinated debentures relating to its $345.0 million of trust preferred securities and dividends on Class C Preferred Stock and Class D Preferred Stock have been deferred, as further described in Note 12 and Note 25 to the consolidated financial statements. The Company had until September 2014 to pay the cumulative deferred interest payments on its outstanding junior subordinated debentures without triggering a payment default or penalty. Such payment default or penalty would likely have a material adverse effect on the Company’s business, financial condition and/or results of operations.

On January 31, 2014, the Company received regulatory approval from the FRB, which grants First Bank the authority to pay a dividend to the Company, and the authority to the Company to utilize such funds, for the sole purpose of paying the accumulated deferred interest payments on the Company's outstanding junior subordinated debentures issued in connection with the Company's trust preferred securities. In February 2014, First Bank paid a dividend of $70.0 million to the Company and the Company notified the trustees of the trust preferred securities of its intention to pay all cumulative interest that has been deferred on the junior subordinated debentures relating to its trust preferred securities, on the regularly scheduled quarterly payment dates in March and April, 2014. The aggregate amount owed at the respective March and April, 2014 payment dates on all of the junior subordinated debentures relating to the trust preferred securities totals $66.4 million.