PARENT COMPANY ONLY FINANCIAL INFORMATION

Condensed balance sheets of First Banks, Inc. as of December 31, 2014 and 2013 and condensed statements of income and cash flows for the years ended December 31, 2014, 2013 and 2012 are shown below:

CONDENSED BALANCE SHEETS



	December 31,
(dollars in thousands)	2014		2013
Assets
Cash deposited in First Bank	$	21,616	1,864
Investment in common securities - TRuPS	10,678		10,678
Investment in subsidiaries	778,306		838,489
Deferred income taxes	42,445		41,095
Accrued interest receivable - TRuPS	11		1,887
Total assets	$	853,056	894,013

Liabilities and Stockholders’ Equity
Subordinated debentures	$	354,286	354,210
Accrued interest payable - TRuPS	374		62,855
Dividends payable	77,800		77,800
Accrued expenses and other liabilities	1,910		4,726
Total liabilities	434,370		499,591
First Banks, Inc. stockholders’ equity	418,686		394,422
Total liabilities and stockholders’ equity	$	853,056	894,013

CONDENSED STATEMENTS OF INCOME



(dollars in thousands)	Years Ended December 31,
(dollars in thousands)	2014			2013		2012
Income:
Dividends from subsidiaries	$	95,000		—		—
Management fees from subsidiaries	9			23		3
Other	498			458		535
Total income	95,507			481		538
Expense:
Interest	12,935			15,054		14,847
Other	690			933		1,506
Total expense	13,625			15,987		16,353
Income (loss) before benefit for income taxes and equity in undistributed (losses) earnings of subsidiaries	81,882			(15,506	)	(15,815	)
Benefit for income taxes	(2,565		)	(38,841	)	(348	)
Income (loss) before equity in undistributed (losses) earnings of subsidiaries	84,447			23,335		(15,467	)
Equity in undistributed (losses) earnings of subsidiaries	(62,792		)	218,409		41,745
Net income attributable to First Banks, Inc.	$	21,655		241,744		26,278

CONDENSED STATEMENTS OF CASH FLOWS



(dollars in thousands)	Years Ended December 31,
(dollars in thousands)	2014			2013		2012
Cash flows from operating activities:
Net income attributable to First Banks, Inc.	$	21,655		241,744		26,278
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net income of subsidiaries	(32,208		)	(218,409	)	(41,745	)
Dividends from subsidiaries	95,000			—		—
(Decrease) increase in accrued interest payable - TRuPS	(62,481		)	14,977		14,771
Other, net	(2,214		)	(39,192	)	639
Net cash provided by (used in) operating activities	19,752			(880	)	(57	)
Cash flows from financing activities:
Payment of preferred stock dividends	—			—		—
Net cash used in financing activities	—			—		—
Net increase (decrease) in unrestricted cash	19,752			(880	)	(57	)
Unrestricted cash, beginning of year	1,864			2,744		2,801
Unrestricted cash, end of year	$	21,616		1,864		2,744

Supplemental disclosures of cash flow information:
Cash paid for interest	$	75,340		—		—

The parent company’s unrestricted cash was $21.6 million and $1.9 million at December 31, 2014 and 2013, respectively. The Company's $5.0 million Credit Agreement matured on March 31, 2014, as further described in Note 11 and Note 20 to the consolidated financial statements. There were no balances outstanding under the Credit Agreement since its origination date through its maturity date.

The Company’s obligations related to dividends on its Class C Preferred Stock and Class D Preferred Stock have been deferred, as further described in Note 13 to the consolidated financial statements.

On January 31, 2014, the Company received regulatory approval from the FRB under the then-existing Written Agreement, subject to certain conditions, which granted 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 $345.0 million of trust preferred securities. The aggregate amount owed on all of the junior subordinated debentures relating to the trust preferred securities at the respective March and April, 2014 payments totaled $66.4 million, as further described in Note 12 to the consolidated financial statements. In February 2014, First Bank paid a dividend of $70.0 million to the Company. On March 14, 2014, the Company paid interest on the junior subordinated debentures of $66.4 million to the respective trustees, which was subsequently distributed to the trust preferred securities holders on the respective interest payment dates in March and April, 2014. Since that time, the Company has continued to pay interest on its junior subordinated debentures to the respective trustees on the regularly scheduled quarterly payment dates. Such interest payments have been funded through additional dividends from First Bank.