Parent Company Financial Information

The following financial statements for Republic First Bancorp, Inc. (Parent Company) should be read in conjunction with the consolidated financial statements and the other notes related to the consolidated financial statements.

Balance Sheet
December 31, 201 9 and 201 8
(Dollars in thousands)

	December 31, 201 9		December 31, 201 8
ASSETS
Cash	$	6,327	$	27,722
Corporation-obligated mandatorily redeemable capital securities of subsidiary trust holding junior obligations of the corporation		341		341
Investment in subsidiaries		245,158		220,864
Other assets		8,640		7,572
Total Assets	$	260,466	$	256,499

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Accrued expenses	$	33	$	51
Corporation-obligated mandatorily redeemable securities of subsidiary trust holding solely junior subordinated debentures of the corporation		11,265		11,259
Total Liabilities		11,298		11,310

Shareholders’ Equity
Total Shareholders’ Equity		249,168		245,189

Total Liabilities and Shareholders’ Equity	$	260,466	$	256,499

Statements of Operations , Comprehensive Income, and Changes in Shareholders’ Equity
For the years ended December 31, 201 9 , 201 8 , and 201 7
(Dollars in thousands)

	201 9			201 8			201 7

Interest income	$	14		$	13		$	37
Total income		14			13			37

Trust preferred interest expense		476			441			1,225
Other expenses		3,662			4,972			1,424
Total expenses		4,138			5,413			2,649
Net loss before taxes		(4,124	)		(5,400	)		(2,612	)

Benefit for income taxes		(917	)		(1,640	)		(914	)
Loss before undistributed income of subsidiaries		(3,207	)		(3,760	)		(1,698	)
Equity in undistributed income of subsidiaries		(293	)		12,387			10,603
Net income (loss)	$	(3,500	)	$	8,627		$	8,905

Net income (loss)	$	(3,500	)	$	8,627		$	8,905
Total other comprehensive income (loss)		4,586			(2,778	)		(215	)
Total comprehensive income	$	1,086		$	5,849		$	8,690

Shareholders’ equity, beginning of year	$	245,189		$	226,460		$	215,053
Stock based compensation		2,632			2,116			1,842
Exercise of stock options		261			670			646
Conversion of subordinated debt to common shares		-			10,094			229
Net income (loss)		(3,500	)		8,627			8,905
Total other comprehensive income (loss)		4,586			(2,778	)		(215	)
Shareholders’ equity, end of year	$	249,168		$	245,189		$	226,460

Statements of Cash Flows
For the years ended December 31, 201 9 , 201 8 , and 201 7
(Dollars in thousands)

	201 9			201 8			201 7
Cash flows from operating activities:
Net income (loss)	$	(3,500	)	$	8,627		$	8,905
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Share based compensation		2,632			2,116			1,842
Amortization of debt issuance costs		6			6			29
Increase in other assets		(1,069	)		(1,639	)		(1,342	)
Net increase (decrease) in other liabilities		(18	)		20			(179	)
Equity in undistributed income of subsidiaries		293			(12,387	)		(10,603	)
Net cash used in operating activities		(1,656	)		(3,257	)		(1,348	)

Cash flows from investing activities:
Investment in subsidiary		(20,000	)		(30,000	)		-
Net cash used in investing activities		(20,000	)		(30,000	)		-

Cash flows from financing activities:
Exercise of stock options		261			670			646
Net cash provided by financing activities		261			670			646

Decrease in cash		(21,395	)		(32,587	)		(702	)
Cash, beginning of period		27,722			60,309			61,011
Cash, end of period	$	6,327		$	27,722		$	60,309