MISSOURI
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0-20632
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43-1175538
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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135 North Meramec, Clayton, Missouri
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63105
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(Address of principal executive offices)
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(Zip code)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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Item 5.07
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Submission of Matters to a Vote of Security Holders.
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Item 9.01
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Financial Statements and Exhibits.
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(d)
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Exhibits.
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Exhibit
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Number
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Description
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99
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Press Release issued on April 27, 2012 – filed herewith.
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FIRST BANKS, INC.
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||||
Date:
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April 27, 2012
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By:
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/s/
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Terrance M. McCarthy
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Terrance M. McCarthy
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||||
President and Chief Executive Officer
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Exhibit
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Number
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Description
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99
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Press Release issued on April 27, 2012.
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NEWS RELEASE
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Contacts:
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Terrance M. McCarthy
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Lisa K. Vansickle
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President and
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Executive Vice President and
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Chief Executive Officer
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Chief Financial Officer
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First Banks, Inc.
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First Banks, Inc.
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(314) 854-4600
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(314) 854-4600
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Traded:
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NYSE
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Symbol:
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FBSPrA – (First Preferred Capital Trust IV, an affiliated trust of First Banks, Inc.)
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FOR IMMEDIATE RELEASE:
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·
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Reduced the provision for loan losses to $2.0 million for the first quarter of 2012 as compared to $17.0 million for the fourth quarter of 2011 and $10.0 million for first quarter of 2011. The Company also reduced its overall level of nonperforming assets by $47.1 million, or 13.5%, as compared to December 31, 2011. Certain asset quality results as of or for the quarterly periods are summarized in the following table:
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March 31,
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December 31,
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March 31,
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|||||||||||
2012
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2011
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2011
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|||||||||||
(dollars expressed in thousands) | |||||||||||||
Provision for loan losses
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$
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2,000
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17,000
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10,000
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|||||||||
Nonaccrual loans
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185,122
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220,251
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382,006
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||||||||||
Performing troubled debt restructurings
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131,531
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126,442
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89,712
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||||||||||
Other real estate and repossessed assets
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117,927
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129,896
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126,625
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||||||||||
Potential problem loans
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205,527
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233,471
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361,522
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||||||||||
Net loan charge-offs
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9,362
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37,014
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27,060
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||||||||||
Allowance for loan losses as a percent of loans, net of deferred loan fees
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4.13
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%
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4.19
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4.44
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·
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Maintained First Bank’s regulatory capital ratios at “well capitalized” levels, reflecting continued and consistent improvement in each of the regulatory capital ratios, including an increase in First Bank’s Total Capital Ratio to 15.63% at March 31, 2012 from 14.98% at December 31, 2011. Regulatory capital ratios for First Bank and First Banks, Inc. are summarized in the table below:
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March 31,
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December 31,
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March 31,
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||||||||||
2012
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2011
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2011
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||||||||||
First Bank:
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||||||||||||
Total Capital Ratio
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15.63
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%
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14.98
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%
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13.78
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%
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||||||
Tier 1 Ratio
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14.35
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13.70
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12.49
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|||||||||
Leverage Ratio
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8.54
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8.19
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7.89
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|||||||||
First Banks, Inc.:
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||||||||||||
Total Capital Ratio
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2.09
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1.88
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4.29
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|||||||||
Tier 1 Ratio
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1.04
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0.94
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2.14
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|||||||||
Leverage Ratio
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0.62
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0.56
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1.35
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·
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Reduced noninterest expense to $52.1 million for the first quarter of 2012 as compared to $61.4 million for the fourth quarter of 2011 and $59.2 million for the first quarter of 2011, reflecting the successful completion of action items in our Profit Improvement Plan and reduced levels of expenses related to problem loans and other real estate.
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·
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The net interest margin was 2.86% for the first quarter of 2012, in comparison to 2.89% for the fourth quarter of 2011 and 2.90% for the first quarter of 2011. The net interest margin continues to be impacted by the change in the mix of our interest-earning assets, which have shifted from loans to cash and cash equivalents and investment securities.
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·
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The average yield on loans was 4.79% for the first quarter of 2012, in comparison to 4.83% for the fourth quarter of 2011 and 4.95% for the first quarter of 2011. Loan yields continue to be adversely impacted by low prime and LIBOR interest rates and highly competitive market conditions.
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·
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The average yield on investment securities was 2.17% for the first quarter of 2012, in comparison to 2.17% for the fourth quarter of 2011 and 2.21% for the first quarter of 2011.
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·
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The average cost of interest-bearing deposits was 0.43% for the first quarter of 2012, in comparison to 0.52% for the fourth quarter of 2011 and 0.81% for the first quarter of 2011, and reflects the continued re-pricing of money market relationships and certificates of deposit to current market interest rates upon maturity.
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·
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The provision for loan losses was $2.0 million for the first quarter of 2012, in comparison to $17.0 million for the fourth quarter of 2011 and $10.0 million for the first quarter of 2011. The decrease in the provision for loan losses for the first quarter of 2012, as compared to the fourth quarter of 2011, was primarily attributable to the decrease in the overall level of nonaccrual loans and potential problem loans, lower net charge-offs and less severe asset quality migration, partially resulting from an ongoing decline in construction and non-owner occupied commercial real estate loans.
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·
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Net loan charge-offs were $9.4 million for the first quarter of 2012, compared to $37.0 million for the fourth quarter of 2011 and $27.1 million for the first quarter of 2011.
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·
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Nonaccrual loans decreased $35.1 million during the first quarter of 2012 to $185.1 million at March 31, 2012 compared to $220.3 million at December 31, 2011 and $382.0 million at March 31, 2011, representing a 51.5% decrease in nonaccrual loans year-over-year. Nonaccrual loans have been reduced by $506.0 million, or 73.2%, from their peak level of $691.1 million at December 31, 2009. The reduction in nonaccrual loans is reflective of continued progress regarding the implementation of the Company’s initiatives included in its Asset Quality Improvement Plan, such as sales and other actions designed to decrease the overall balance of nonaccrual and other potential problem loans and assets.
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·
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Noninterest income was $17.2 million for the first quarter of 2012, in comparison to $16.0 million for the fourth quarter of 2011 and $14.4 million for the first quarter of 2011.
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·
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The gain on sale of loans was $2.4 million, $1.2 million and $386,000 for the first quarter of 2012, the fourth quarter of 2011 and the first quarter of 2011, respectively, primarily reflecting an increase in loan origination volume in our mortgage division during the first quarter of 2012.
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·
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Noninterest expense was $52.1 million for the first quarter of 2012 compared to $61.4 million for the fourth quarter of 2011 and $59.2 million for the first quarter of 2011. The decrease in noninterest expense is primarily reflective of a lower level of expenses related to nonperforming assets and potential problem loans and the implementation of certain measures intended to improve efficiency in conjunction with the restructuring of the Company to a smaller footprint.
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·
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Write-downs and expenses on other real estate properties and repossessed assets were $3.6 million, $10.0 million and $4.9 million for the first quarter of 2012, the fourth quarter of 2011 and the first quarter of 2011, respectively, reflecting improvement in reducing the overall level of other real estate properties and related expenses associated with such properties.
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·
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The Company recorded a provision for income taxes of $95,000 for the first quarter of 2012, compared to $803,000 for the fourth quarter of 2011 and $52,000 for the first quarter of 2011. The Company maintains a full valuation allowance against its net deferred tax assets.
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·
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Cash and cash equivalents were $499.4 million at March 31, 2012 compared to $474.2 million at December 31, 2011 and $955.3 million at March 31, 2011. The increase in cash and cash equivalents of $25.2 million during the first quarter of 2012 primarily resulted from an increase in deposits of $59.0 million and a net decrease in loans of $127.9 million, partially offset by an increase in the investment securities portfolio of $179.8 million.
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·
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Cash, cash equivalents and unpledged securities were $2.92 billion and comprised 43.8% of total assets at March 31, 2012, compared to $2.72 billion and 41.1% of total assets at December 31, 2011.
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·
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Investment securities increased to $2.65 billion at March 31, 2012 from $2.47 billion at December 31, 2011 and $1.75 billion at March 31, 2011. The Company is continuing to utilize a portion of its higher level of cash and cash equivalents balances to fund gradual and planned increases in its investment securities portfolio.
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·
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Loans, net of deferred loan fees, decreased to $3.16 billion at March 31, 2012 from $3.28 billion at December 31, 2011 and $4.14 billion at March 31, 2011. The reduction in loan balances of $127.9 million during the first quarter of 2012 reflects expected customer payments and other activity such as foreclosures and charge-offs. The Company will continue to focus on loan growth initiatives throughout the remainder of 2012 to partially offset the impact of the decrease in nonaccrual, potential problem and other loan relationships in future periods.
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·
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The Company’s loan-to-deposit ratio was 53.89% at March 31, 2012, as compared to 56.65% at December 31, 2011 and 65.21% at March 31, 2011.
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·
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Total assets were $6.68 billion at March 31, 2012 as compared to $6.61 billion at December 31, 2011 and $7.21 billion at March 31, 2011. The increase in total assets during the first quarter of 2012 is reflective of an increase in cash and cash equivalents and the investment securities portfolio, partially offset by a decrease in the loan portfolio.
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·
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Deposits were $5.86 billion at March 31, 2012, in comparison to $5.80 billion at December 31, 2011 and $6.35 billion at March 31, 2011. The increase in deposits of $59.0 million during the first quarter of 2012 is reflective of an increase in demand and savings deposits, partially offset by the Company’s efforts to exit certain certificate of deposit and money market relationships and reduce deposit costs.
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FINANCIAL SUMMARY
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(dollars expressed in thousands, except per share data)
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(UNAUDITED)
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SELECTED OPERATING DATA
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Three Months Ended
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||||||||||||
March 31,
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December 31,
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March 31,
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||||||||||
2012
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2011
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2011
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||||||||||
Interest income
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$
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52,341
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55,429
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62,776
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||||||||
Interest expense
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8,569
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9,533
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13,952
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|||||||||
Net interest income
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43,772
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45,896
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48,824
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|||||||||
Provision for loan losses
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2,000
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17,000
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10,000
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|||||||||
Net interest income after provision for loan losses
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41,772
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28,896
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38,824
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|||||||||
Noninterest income
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17,219
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16,006
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14,386
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|||||||||
Noninterest expense
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52,058
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61,398
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59,241
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|||||||||
Income (loss) before provision for income taxes
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6,933
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(16,496
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)
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(6,031
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)
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|||||||
Provision for income taxes
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95
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803
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52
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|||||||||
Net income (loss)
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6,838
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(17,299
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)
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(6,083
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)
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|||||||
Less: net (loss) income attributable to noncontrolling interest in subsidiary
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(60
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)
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(1,420
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)
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65
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|||||||
Net income (loss) attributable to First Banks, Inc.
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$
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6,898
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(15,879
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)
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(6,148
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)
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Basic and diluted earnings (loss) per common share
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$
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58.63
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(901.04
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)
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(481.41
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)
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SELECTED FINANCIAL DATA
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March 31,
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December 31,
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March 31,
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||||||||||
2012
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2011
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2011
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||||||||||
Total assets
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$
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6,678,238
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6,608,913
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7,209,396
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||||||||
Cash and cash equivalents
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499,361
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474,158
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955,282
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|||||||||
Investment securities
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2,650,537
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2,470,704
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1,749,307
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|||||||||
Loans, net of deferred loan fees
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3,156,413
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3,284,279
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4,142,639
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|||||||||
Allowance for loan losses
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130,348
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137,710
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183,973
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|||||||||
Goodwill and other intangible assets
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125,967
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125,967
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130,313
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|||||||||
Deposits
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5,856,718
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5,797,704
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6,353,005
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|||||||||
Other borrowings
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37,877
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51,182
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39,404
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|||||||||
Subordinated debentures
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354,076
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354,057
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354,000
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|||||||||
Stockholders’ equity
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275,732
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263,671
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299,972
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|||||||||
Nonperforming assets
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303,049
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350,147
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508,631
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SELECTED FINANCIAL RATIOS
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Three Months Ended
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||||||||||||
March 31,
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December 31,
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March 31,
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||||||||||
2012
|
2011
|
2011
|
||||||||||
Net interest margin
|
2.86
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%
|
2.89
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%
|
2.90
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%
|
||||||
Yield on loans
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4.79
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4.83
|
4.95
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|||||||||
Cost of interest-bearing deposits
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0.43
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0.52
|
0.81
|
|||||||||
Loan-to-deposit ratio
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53.89
|
56.65
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65.21
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