Note 19 - Parent Company Financial Information

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

19. 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, 2020 and 2019

(Dollars in thousands)

	December 31, 2020		December 31, 2019
ASSETS
Cash	$	22,872	$	6,327
Corporation-obligated mandatorily redeemable capital securities of subsidiary trust holding junior obligations of the corporation		341		341
Investment in subsidiaries		287,114		245,158
Other assets		9,347		8,640
Total Assets	$	319,674	$	260,466
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Accrued expenses	$	290	$	33
Corporation-obligated mandatorily redeemable securities of subsidiary trust holding solely junior subordinated debentures of the corporation		11,271		11,265
Total Liabilities		11,561		11,298
Shareholders’ Equity
Total Shareholders’ Equity		308,113		249,168
Total Liabilities and Shareholders’ Equity	$	319,674	$	260,466

Statements of Operations, Comprehensive Income, and Changes in Shareholders’ Equity

For the years ended December 31, 2020, 2019, and 2018

(Dollars in thousands)

	2020			2019			2018
Interest income	$	9		$	14		$	13
Total income		9			14			13
Trust preferred interest expense		297			476			441
Other expenses		2,805			3,662			4,972
Total expenses		3,102			4,138			5,413
Net loss before taxes		(3,093	)		(4,124	)		(5,400	)
Benefit for income taxes		(703	)		(917	)		(1,640	)
Loss before undistributed income of subsidiaries		(2,390	)		(3,207	)		(3,760	)
Equity in undistributed income of subsidiaries		7,444			(293	)		12,387
Net income (loss)	$	5,054		$	(3,500	)	$	8,627
Net income (loss)	$	5,054		$	(3,500	)	$	8,627
Total other comprehensive income (loss)		4,512			4,586			(2,778	)
Total comprehensive income	$	9,566		$	1,086		$	5,849
Shareholders’ equity, beginning of year	$	249,168		$	245,189		$	226,460
Stock based compensation		1,918			2,632			2,116
Exercise of stock options		41			261			670
Conversion of subordinated debt to common shares		-			-			10,094
Proceeds from shares issued under preferred stock offering (2,000,000 shares) net of offering costs of $1,675		48,325			-			-
Preferred stock dividends		(923	)		-			-
Return of short swing profit		18
Net income (loss)		5,054			(3,500	)		8,627
Total other comprehensive income (loss)		4,512			4,586			(2,778	)
Shareholders’ equity, end of year	$	308,113		$	249,168		$	245,189

Statements of Cash Flows

For the years ended December 31, 2020, 2019, and 2018

(Dollars in thousands)

	2020			2019			2018
Cash flows from operating activities:
Net income (loss)	$	5,054		$	(3,500	)	$	8,627
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Share based compensation		1,918			2,632			2,116
Amortization of debt issuance costs		6			6			6
Increase in other assets		(707	)		(1,069	)		(1,639	)
Net increase (decrease) in other liabilities		257			(18	)		20
Equity in undistributed income of subsidiaries		(7,444	)		293			(12,387	)
Net cash used in operating activities		(916	)		(1,656	)		(3,257	)
Cash flows from investing activities:
Investment in subsidiary		(30,000	)		(20,000	)		(30,000	)
Net cash used in investing activities		(30,000	)		(20,000	)		(30,000	)
Cash flows from financing activities:
Proceeds from shares issued under preferred stock offering (2,000,000 shares) net of offering costs of $1,675		48,325
Preferred share dividends		(923	)
Return of short swing profit		18
Exercise of stock options		41			261			670
Net cash provided by financing activities		47,461			261			670
Increase (decrease) in cash		16,545			(21,395	)		(32,587	)
Cash, beginning of period		6,327			27,722			60,309
Cash, end of period	$	22,872		$	6,327		$	27,722