10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2013
[   ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to ________

Commission File Number: 001-31610

FIRST BANKS, INC.

(Exact name of registrant as specified in its charter)

MISSOURI	43-1175538
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
135 North Meramec, Clayton, Missouri	63105
(Address of principal executive offices)	(Zip code)

(314) 854-4600

(Registrant’s telephone number, including area code)

__________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

þ Yes      o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

þ Yes      o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer þ (Do not check if a smaller reporting company)	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

o Yes      þ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Shares Outstanding at October 31, 2013
Common Stock, $250.00 par value	23,661

FIRSTBANKS,INC.

TABLE OFCONTENTS

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Consolidated Balance Sheets	1
	Consolidated Statements of Operations	2
	Consolidated Statements of Comprehensive Income (Loss)	3
	Consolidated Statements of Changes in Stockholders’ Equity	4
	Consolidated Statements of Cash Flows	5
	Notes to Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	37
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	68
Item 4.	Controls and Procedures	68
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	69
Item 1A.	Risk Factors	69
Item 6.	Exhibits	70
SIGNATURES		71

PARTI–FINANCIALINFORMATION

ITEM1–FINANCIALSTATEMENTS

FIRSTBANKS,INC.

CONSOLIDATEDBALANCESHEETS–(UNAUDITED)

(dollars expressed in thousands, except share and per share data)

	September 30, 2013			December 31, 2012
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	135,032		114,841
Short-term investments	579,123			404,005
Total cash and cash equivalents	714,155			518,846
Investment securities:
Available for sale	1,604,287			2,043,727
Held to maturity (fair value of $748,478 and $637,024, respectively)	764,304			631,553
Total investment securities	2,368,591			2,675,280
Loans:
Commercial, financial and agricultural	583,539			610,301
Real estate construction and development	125,333			174,979
Real estate mortgage	2,031,284			2,060,131
Consumer and installment	18,773			19,262
Loans held for sale	28,313			66,133
Net deferred loan fees	(312		)	(59	)
Total loans	2,786,930			2,930,747
Allowance for loan losses	(84,277		)	(91,602	)
Net loans	2,702,653			2,839,145
Federal Reserve Bank and Federal Home Loan Bank stock	27,137			27,329
Bank premises and equipment, net	124,921			127,520
Goodwill	107,267			125,267
Deferred income taxes	15,733			29,042
Other real estate and repossessed assets	74,831			91,995
Other assets	63,529			67,996
Assets of discontinued operations	38,511			6,706
Total assets	$	6,237,328		6,509,126
LIABILITIES
Deposits:
Noninterest-bearing demand	$	1,224,595		1,327,183
Interest-bearing demand	677,900			1,000,666
Savings and money market	1,852,268			1,880,271
Time deposits of $100 or more	398,259			460,791
Other time deposits	682,400			823,936
Total deposits	4,835,422			5,492,847
Other borrowings	37,077			26,025
Subordinated debentures	354,191			354,133
Deferred income taxes	23,166			36,182
Accrued expenses and other liabilities	169,219			144,269
Liabilities of discontinued operations	549,155			155,711
Total liabilities	5,968,230			6,209,167
STOCKHOLDERS’ EQUITY
First Banks, Inc. stockholders’ equity:
Preferred stock:
Class A convertible, adjustable rate, $20.00 par value, 750,000 shares authorized, 641,082 shares issued and outstanding	12,822			12,822
Class B adjustable rate, $1.50 par value, 200,000 shares authorized, 160,505 shares issued and outstanding	241			241
Class C fixed rate, cumulative, perpetual, $1.00 par value, 295,400 shares authorized, issued and outstanding	294,482			291,757
Class D fixed rate, cumulative, perpetual, $1.00 par value, 14,770 shares authorized, issued and outstanding	17,343			17,343
Common stock, $250.00 par value, 25,000 shares authorized, 23,661 shares issued and outstanding	5,915			5,915
Additional paid-in capital	12,480			12,480
Retained deficit	(175,046		)	(179,513	)
Accumulated other comprehensive income	7,093			45,259
Total First Banks, Inc. stockholders’ equity	175,330			206,304
Noncontrolling interest in subsidiary	93,768			93,655
Total stockholders’ equity	269,098			299,959
Total liabilities and stockholders’ equity	$	6,237,328		6,509,126

The accompanying notes are an integral part of the consolidated financial statements.

1

FIRSTBANKS,INC.

CONSOLIDATEDSTATEMENTS OFOPERATIONS–(UNAUDITED)

(dollars expressed in thousands, except share and per share data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Interest income:
Interest and fees on loans	$	28,859		34,456			88,917			108,285
Investment securities	12,858			15,235			39,423			43,394
Federal Reserve Bank and Federal Home Loan Bank stock	303			290			913			850
Short-term investments	346			137			831			596
Total interest income	42,366			50,118			130,084			153,125
Interest expense:
Deposits:
Interest-bearing demand	83			107			233			320
Savings and money market	675			811			1,942			2,811
Time deposits of $100 or more	529			935			1,758			3,196
Other time deposits	860			1,577			2,941			5,462
Other borrowings	1			16			(11		)	57
Subordinated debentures	3,804			3,747			11,213			11,116
Total interest expense	5,952			7,193			18,076			22,962
Net interest income	36,414			42,925			112,008			130,163
Provision for loan losses	—			—			—			2,000
Net interest income after provision for loan losses	36,414			42,925			112,008			128,163
Noninterest income:
Service charges on deposit accounts and customer service fees	8,788			9,053			25,709			27,028
Gain on loans sold and held for sale	1,314			4,325			4,439			10,308
Net gain on investment securities	108			789			37			1,306
Increase (decrease) in fair value of servicing rights	283			(2,417		)	907			(4,608		)
Loan servicing fees	1,740			1,741			5,233			5,659
Other	3,296			3,156			13,542			9,833
Total noninterest income	15,529			16,647			49,867			49,526
Noninterest expense:
Salaries and employee benefits	19,777			18,906			58,973			56,474
Occupancy, net of rental income	5,602			5,929			17,371			16,352
Furniture and equipment	2,463			2,625			7,584			7,875
Postage, printing and supplies	533			611			1,872			1,956
Information technology fees	5,365			5,219			15,920			17,130
Legal, examination and professional fees	1,610			2,232			4,770			7,678
Advertising and business development	663			511			1,679			1,481
FDIC insurance	1,852			3,105			5,572			9,410
Write-downs and expenses on other real estate and repossessed assets	1,966			2,922			4,736			11,204
Other	5,474			6,779			15,018			18,638
Total noninterest expense	45,305			48,839			133,495			148,198
Income from continuing operations before (benefit) provision for income taxes	6,638			10,733			28,380			29,491
(Benefit) provision for income taxes	(65		)	(138		)	(45		)	78
Net income from continuing operations, net of tax	6,703			10,871			28,425			29,413
Loss from discontinued operations, net of tax	(881		)	(2,182		)	(6,279		)	(6,763		)
Net income	5,822			8,689			22,146			22,650
Less: net (loss) income attributable to noncontrolling interest in subsidiary	(38		)	216			113			(229		)
Net income attributable to First Banks, Inc.	$	5,860		8,473			22,033			22,879
Preferred stock dividends declared and undeclared	5,013			4,753			14,841			14,070
Accretion of discount on preferred stock	919			893			2,725			2,660
Net (loss) income available to common stockholders	$	(72	)	2,827			4,467			6,149
Basic and diluted earnings per common share from continuing operations	$	34.19		211.70			454.17			545.72
Basic and diluted loss per common share from discontinued operations	(37.23		)	(92.22		)	(265.37		)	(285.83		)
Basic and diluted (loss) earnings per common share	$	(3.04	)	$	119.48		$	188.80		$	259.89
Weighted average shares of common stock outstanding	23,661			23,661			23,661			23,661

The accompanying notes are an integral part of the consolidated financial statements.

2

FIRSTBANKS,INC.

CONSOLIDATEDSTATEMENTS OFCOMPREHENSIVEINCOME (LOSS) –(UNAUDITED)

(dollars expressed in thousands)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
Net income	$	5,822		8,689		22,146		22,650
Other comprehensive (loss) income:
Unrealized (losses) gains on available-for-sale investment securities, net of tax	(896		)	2,740		(19,699	)	14,610
Reclassification adjustment for available-for-sale investment securities gains included in net income, net of tax	(60		)	(422	)	(246	)	(758	)
Amortization of net unrealized gain associated with reclassification of available-for-sale investment securities to held-to-maturity investment securities, net of tax	(467		)	(474	)	(1,327	)	(474	)
Amortization of net loss related to pension liability, net of tax	30			21		90		63
Reclassification adjustment for deferred tax asset valuation allowance on investment securities	(1,141		)	7,086		(17,056	)	13,297
Reclassification adjustment for deferred tax asset valuation allowance on pension liability	24			15		72		46
Other comprehensive (loss) income	(2,510		)	8,966		(38,166	)	26,784
Comprehensive income (loss)	3,312			17,655		(16,020	)	49,434
Comprehensive (loss) income attributable to noncontrolling interest in subsidiary	(38		)	216		113		(229	)
Comprehensive income (loss) attributable to First Banks, Inc.	$	3,350		17,439		(16,133	)	49,663

The accompanying notes are an integral part of the consolidated financial statements.

3

FIRSTBANKS,INC.

CONSOLIDATEDSTATEMENTS OFCHANGES INSTOCKHOLDERS’EQUITY–(UNAUDITED)

Nine Months EndedSeptember 30, 2013 and Year Ended December 31, 2012

(dollars expressed in thousands)

	First Banks, Inc. Stockholders’ Equity
	Preferred Stock		Common Stock	Additional Paid-In Capital	Retained Earnings (Deficit)		Accumulated Other Comprehensive Income		Non- controlling Interest		Total Stockholders’ Equity
Balance, December 31, 2011	$	318,609	5,915	12,480	(183,351	)	16,066		93,952		263,671
Net income	—		—	—	26,278		—		(297	)	25,981
Other comprehensive income	—		—	—	—		29,193		—		29,193
Accretion of discount on preferred stock	3,554		—	—	(3,554	)	—		—		—
Preferred stock dividends declared and undeclared	—		—	—	(18,886	)	—		—		(18,886	)
Balance, December 31, 2012	322,163		5,915	12,480	(179,513	)	45,259		93,655		299,959
Net income	—		—	—	22,033		—		113		22,146
Other comprehensive loss	—		—	—	—		(38,166	)	—		(38,166	)
Accretion of discount on preferred stock	2,725		—	—	(2,725	)	—		—		—
Preferred stock dividends declared and undeclared	—		—	—	(14,841	)	—		—		(14,841	)
Balance, September 30, 2013	$	324,888	5,915	12,480	(175,046	)	7,093		93,768		269,098

The accompanying notes are an integral part of the consolidated financial statements.

4

FIRSTBANKS,INC.

CONSOLIDATEDSTATEMENTS OFCASHFLOWS–(UNAUDITED)

(dollars expressed in thousands)

	Nine Months Ended
	September 30,
	2013			2012
Cash flows from operating activities:
Net income attributable to First Banks, Inc.	$	22,033		22,879
Net income (loss) attributable to noncontrolling interest in subsidiary	113			(229	)
Less: net loss from discontinued operations, net of tax	(6,279		)	(6,763	)
Net income from continuing operations, net of tax	28,425			29,413
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of bank premises and equipment	8,710			9,095
Amortization and accretion of investment securities	19,692			11,471
Originations of loans held for sale	(233,259		)	(325,844	)
Proceeds from sales of loans held for sale	272,245			305,523
Provision for loan losses	—			2,000
(Benefit) provision for current income taxes	(248		)	186
Provision for deferred income taxes	6,715			5,516
Decrease in deferred tax asset valuation allowance	(6,512		)	(5,624	)
Decrease in accrued interest receivable	714			1,498
Increase in accrued interest payable	10,763			8,945
Gain on loans sold and held for sale	(4,439		)	(10,308	)
Net gain on investment securities	(37		)	(1,306	)
(Increase) decrease in fair value of servicing rights	(907		)	4,608
Write-downs on other real estate and repossessed assets	2,230			7,939
Other operating activities, net	4,426			9,819
Net cash provided by operating activities – continuing operations	108,518			52,931
Net cash used in operating activities – discontinued operations	(5,422		)	(6,421	)
Net cash provided by operating activities	103,096			46,510
Cash flows from investing activities:
Net cash paid for sale of assets and liabilities of discontinued operations, net of cash and cash equivalents sold	(115,044		)	—
Proceeds from sales of investment securities available for sale	143,675			315,238
Maturities of investment securities available for sale	314,707			576,635
Maturities of investment securities held to maturity	117,859			57,531
Purchases of investment securities available for sale	(306,063		)	(1,226,473	)
Purchases of investment securities held to maturity	(21,473		)	—
Net redemptions of Federal Reserve Bank and Federal Home Loan Bank stock	192			366
Proceeds from sales of commercial loans	7,681			20,386
Cash paid for purchase of one-to-four-family residential real estate loans	—			(141,048	)
Net decrease in loans	43,401			272,489
Recoveries of loans previously charged-off	13,469			22,819
Purchases of bank premises and equipment	(4,882		)	(4,042	)
Net proceeds from sales of other real estate and repossessed assets	25,557			33,837
Other investing activities, net	3,601			216
Net cash provided by (used in) investing activities – continuing operations	222,680			(72,046	)
Net cash provided by investing activities – discontinued operations	2,168			4,426
Net cash provided by (used in) investing activities	224,848			(67,620	)
Cash flows from financing activities:
Increase in demand, savings and money market deposits	21,751			8,236
Decrease in time deposits	(137,152		)	(183,780	)
Increase (decrease) in other borrowings	11,052			(22,622	)
Net cash used in financing activities – continuing operations	(104,349		)	(198,166	)
Net cash (used in) provided by financing activities – discontinued operations	(28,286		)	36,140
Net cash used in financing activities	(132,635		)	(162,026	)
Net increase (decrease) in cash and cash equivalents	195,309			(183,136	)
Cash and cash equivalents, beginning of period	518,846			474,158
Cash and cash equivalents, end of period	$	714,155		291,022
Supplemental disclosures of cash flow information:
Cash paid for interest on liabilities	$	7,313		14,017
Cash received for income taxes	213			458
Noncash investing and financing activities:
Reclassification of investment securities from available for sale to held to maturity	$	242,540		729,142
Loans transferred to other real estate and repossessed assets	8,217			21,788

The accompanying notes are an integral part of the consolidated financial statements.

5

FIRSTBANKS,INC.

NOTES TOCONSOLIDATEDFINANCIALSTATEMENTS

NOTE1–BASIS OFPRESENTATION

Basis of Presentation. The consolidated financial statements of First Banks, Inc. and subsidiaries (the Company) are unaudited and should be read in conjunction with the consolidated financial statements contained in the Company’s 2012 Annual Report on Form 10-K. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for the interim periods presented herein, have been included. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.

Certain reclassifications of 2012 amounts have been made to conform to the 2013 presentation.

All financial information is reported on a continuing operations basis, unless otherwise noted. See Note 2 to the consolidated financial statements for a discussion regarding discontinued operations.

Principles of Consolidation. The consolidated financial statements include the accounts of the parent company and its subsidiaries, giving effect to the noncontrolling interest in subsidiary, as more fully described below and in Note 16 to the consolidated financial statements. All significant intercompany accounts and transactions have been eliminated.

The Company operates through its wholly owned subsidiary bank holding company, The San Francisco Company (SFC), headquartered in St. Louis, Missouri, and SFC’s wholly owned subsidiary bank, First Bank, also headquartered in St. Louis, Missouri. First Bank operates through its branch banking offices and subsidiaries: First Bank Business Capital, Inc.; FB Holdings, LLC (FB Holdings); Small Business Loan Source LLC; ILSIS, Inc.; FBIN, Inc.; SBRHC, Inc.; HVIIHC, Inc.; FBSA Missouri, Inc.; FBSA California, Inc.; NT Resolution Corporation; and LC Resolution Corporation. All of the subsidiaries are wholly owned as of September 30, 2013, except FB Holdings, which is 53.23% owned by First Bank and 46.77% owned by First Capital America, Inc. (FCA), a corporation owned and operated by the Company’s Chairman of the Board and members of his immediate family, including Mr. Michael Dierberg, Vice Chairman of the Company, as further described in Note 16 to the consolidated financial statements. FB Holdings is included in the consolidated financial statements and the noncontrolling ownership interest is reported as a component of stockholders’ equity in the consolidated balance sheets as “noncontrolling interest in subsidiary” and the earnings or loss, net of tax, attributable to the noncontrolling ownership interest, is reported as “net income (loss) attributable to noncontrolling interest in subsidiary” in the consolidated statements of operations.

NOTE2–DISCONTINUEDOPERATIONS

Discontinued Operations. The assets and liabilities associated with the transactions described (and defined) below were previously reported in the First Bank segment and were sold as part of the Company’s Capital Optimization Plan (Capital Plan). The Company applied discontinued operations accounting in accordance with ASC Topic 205-20, “Presentation of Financial Statements – Discontinued Operations,” to the assets and liabilities associated with the Association Bank Services line of business as of September 30, 2013, to the assets and liabilities associated with the Northern Florida Region as of December 31, 2012, and to the operations of First Bank’s Association Bank Services line of business and Northern Florida Region for the three and nine months ended September 30, 2013 and 2012, as applicable. The Company did not allocate any consolidated interest that is not directly attributable to or related to discontinued operations. All financial information in the consolidated financial statements and notes to the consolidated financial statements is reported on a continuing operations basis, unless otherwise noted.

Association Bank Services. On May 13, 2013, First Bank entered into a Purchase and Assumption Agreement that provides for the sale of certain assets and the transfer of certain liabilities, primarily deposits, of First Bank's Association Bank Services (ABS) line of business, to Union Bank, N.A. (Union Bank), headquartered in San Francisco, California. ABS, headquartered in Vallejo, California, provides a full range of services to homeowners associations and community management companies. Under the terms of the agreement, Union Bank will assume approximately $549.1 million of deposits and will pay a premium on certain deposit accounts to be acquired in the transaction, which will be determined based on the average amount of certain deposits within ABS for the thirty (30) days prior to the closing date. Union Bank will also acquire certain assets, including loans of approximately $20.4 million at par value. Regulatory approval of the transaction was received on July 15, 2013 and, subject to satisfaction of other customary closing conditions, the transaction is expected to close during the fourth quarter of 2013. The assets and liabilities associated with ABS are reflected in assets and liabilities of discontinued operations in the consolidated balance sheets as of September 30, 2013. First Bank expects to record a gain on the transaction of approximately $26.0 million, after the estimated write-off of goodwill of $18.0 million allocated to the ABS line of business.

6

Northern Florida Region. On November 21, 2012, First Bank entered into a Branch Purchase and Assumption Agreement that provided for the sale of certain assets and the transfer of certain liabilities associated with eight of First Bank’s retail branches located in Pinellas County, Florida to HomeBanc National Association (HomeBanc), headquartered in Lake Mary, Florida. The transaction was completed on April 19, 2013. Under the terms of the agreement, HomeBanc assumed $120.3 million of deposits, purchased the premises and equipment, and assumed the leases associated with these eight retail branches. The transaction resulted in a gain of $408,000, after the write-off of goodwill of $700,000 allocated to the Northern Florida Region, during the second and third quarters of 2013.

On April 5, 2013, First Bank closed its three remaining retail branches located in Hillsborough County and in Pasco County. The closure of these three remaining retail branches in the Northern Florida Region resulted in expense of $2.3 million during the second quarter of 2013 attributable to continuing obligations under facility leasing arrangements.

The eight branches sold and three branches closed during the second quarter of 2013 are collectively defined as the Northern Florida Region. The assets and liabilities associated with the Northern Florida Region are reflected in assets and liabilities of discontinued operations in the consolidated balance sheets as of December 31, 2012.

Assets and liabilities of discontinued operations at September 30, 2013 and December 31, 2012 were as follows:

	September 30, 2013			December 31, 2012
	Association Bank Services			Northern Florida
	(dollars expressed in thousands)
Cash and due from banks	$	—		1,139
Loans:
Commercial, financial and agricultural	20,591			—
Consumer and installment	10			—
Net deferred loan fees	(208		)	—
Total loans	20,393			—
Bank premises and equipment, net	70			4,837
Goodwill	18,000			700
Other assets	48			30
Assets of discontinued operations	$	38,511		6,706
Deposits:
Noninterest-bearing demand	$	129,785		12,488
Interest-bearing demand	339,297			10,480
Savings and money market	18,455			67,686
Time deposits of $100 or more	23,931			27,034
Other time deposits	37,631			37,964
Total deposits	549,099			155,652
Accrued expenses and other liabilities	56			59
Liabilities of discontinued operations	$	549,155		155,711

7

Loss from discontinued operations, net of tax, for the three months ended September 30, 2013 and 2012 was as follows:

	Three Months Ended						Three Months Ended
	September 30, 2013						September 30, 2012
	Association Bank Services			Northern Florida	Total		Association Bank Services		Northern Florida		Total
				(dollars expressed in thousands)
Interest income:
Interest and fees on loans	$	332		—	332		418		—		418
Interest expense:
Interest on deposits	78			—	78		121		222		343
Net interest income (loss)	254			—	254		297		(222	)	75
Provision for loan losses	—			—	—		—		—		—
Net interest income (loss) after provision for loan losses	254			—	254		297		(222	)	75
Noninterest income:
Service charges and customer service fees	17			—	17		22		101		123
Other	28			—	28		27		3		30
Total noninterest income	45			—	45		49		104		153
Noninterest expense:
Salaries and employee benefits	753			—	753		625		559		1,184
Occupancy, net of rental income	1			—	1		2		437		439
Furniture and equipment	13			—	13		29		62		91
FDIC insurance	194			—	194		317		97		414
Other	233			—	233		204		78		282
Total noninterest expense	1,194			—	1,194		1,177		1,233		2,410
Loss from operations of discontinued operations	(895		)	—	(895	)	(831	)	(1,351	)	(2,182	)
Net gain on sale of discontinued operations	—			14	14		—		—		—
Benefit for income taxes	—			—	—		—		—		—
Net (loss) income from discontinued operations, net of tax	$	(895	)	14	(881	)	(831	)	(1,351	)	(2,182	)

Loss from discontinued operations, net of tax, for the nine months ended September 30, 2013 and 2012 was as follows:

	Nine Months Ended							Nine Months Ended
	September 30, 2013							September 30, 2012
	Association Bank Services			Northern Florida		Total		Association Bank Services		Northern Florida		Total
	(dollars expressed in thousands)
Interest income:
Interest and fees on loans	$	1,036		—		1,036		1,360		—		1,360
Interest expense:
Interest on deposits	248			233		481		375		769		1,144
Net interest income (loss)	788			(233	)	555		985		(769	)	216
Provision for loan losses	—			—		—		—		—		—
Net interest income (loss) after provision for loan losses	788			(233	)	555		985		(769	)	216
Noninterest income:
Service charges and customer service fees	74			134		208		106		332		438
Other	81			4		85		82		9		91
Total noninterest income	155			138		293		188		341		529
Noninterest expense:
Salaries and employee benefits	2,209			885		3,094		1,964		1,722		3,686
Occupancy, net of rental income	5			579		584		8		1,321		1,329
Furniture and equipment	34			40		74		74		223		297
FDIC insurance	603			53		656		928		300		1,228
Other	675			2,452		3,127		690		278		968
Total noninterest expense	3,526			4,009		7,535		3,664		3,844		7,508
Loss from operations of discontinued operations	(2,583		)	(4,104	)	(6,687	)	(2,491	)	(4,272	)	(6,763	)
Net gain on sale of discontinued operations	—			408		408		—		—		—
Benefit for income taxes	—			—		—		—		—		—
Net loss from discontinued operations, net of tax	$	(2,583	)	(3,696	)	(6,279	)	(2,491	)	(4,272	)	(6,763	)

8

NOTE3–INVESTMENTS INDEBT ANDEQUITYSECURITIES

Securities Available for Sale. The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities available for sale at September 30, 2013 and December 31, 2012 were as follows:

	Maturity									Total Amortized Cost	Gross				Weighted Average Yield
	1 Year			1-5		5-10		After			Unrealized			Fair
	or Less			Years		Years		10 Years			Gains	Losses		Value
	(dollars expressed in thousands)
September 30, 2013:
Carrying value:
U.S. Government sponsored agencies	$	—		48,784		88,769		136,582		274,135	3,067	(1,168	)	276,034	1.36	%
Residential mortgage-backed	—			23,581		138,415		933,135		1,095,131	17,245	(14,147	)	1,098,229	2.44
Commercial mortgage-backed	—			—		796		—		796	72	—		868	5.03
State and political subdivisions	1,042			3,060		201		28,448		32,751	98	(588	)	32,261	1.35
Corporate notes	4,960			140,342		45,133		—		190,435	5,350	(346	)	195,439	2.76
Equity investments	—			—		—		1,500		1,500	—	(44	)	1,456	2.19
Total	$	6,002		215,767		273,314		1,099,665		1,594,748	25,832	(16,293	)	1,604,287	2.27
Fair value:
Debt securities	$	6,064		222,057		273,224		1,101,486
Equity securities	—			—		—		1,456
Total	$	6,064		222,057		273,224		1,102,942
Weighted average yield	3.05		%	2.24	%	1.92	%	2.36	%
December 31, 2012:
Carrying value:
U.S. Government sponsored agencies	$	10,051		80,328		—		213,892		304,271	6,304	(146	)	310,429	1.42	%
Residential mortgage-backed	364			24,014		219,286		1,251,917		1,495,581	38,983	(497	)	1,534,067	2.32
Commercial mortgage-backed	—			—		806		—		806	109	—		915	4.86
State and political subdivisions	985			3,579		201		—		4,765	164	—		4,929	4.05
Corporate notes	—			137,090		49,704		—		186,794	6,192	(621	)	192,365	3.13
Equity investments	—			—		—		1,000		1,000	22	—		1,022	2.54
Total	$	11,400		245,011		269,997		1,466,809		1,993,217	51,774	(1,264	)	2,043,727	2.26
Fair value:
Debt securities	$	11,476		251,558		275,251		1,504,420
Equity securities	—			—		—		1,022
Total	$	11,476		251,558		275,251		1,505,442
Weighted average yield	2.01		%	2.17	%	2.65	%	2.21	%

9

Securities Held to Maturity. The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities held to maturity at September 30, 2013 and December 31, 2012 were as follows:

	Maturity									Total Amortized Cost	Gross				Weighted Average Yield
	1 Year			1-5		5-10		After			Unrealized			Fair
	or Less			Years		Years		10 Years			Gains	Losses		Value
	(dollars expressed in thousands)
September 30, 2013:
Carrying value:
U.S. Government sponsored agencies	$	—		—		18,665		—		18,665	—	(164	)	18,501	1.37	%
Residential mortgage-backed	—			17,167		186,341		538,970		742,478	679	(16,295	)	726,862	1.93
State and political subdivisions	1,021			1,019		55		1,066		3,161	8	(54	)	3,115	2.07
Total	$	1,021		18,186		205,061		540,036		764,304	687	(16,513	)	748,478	1.92
Fair value:
Debt securities	$	1,026		17,903		201,942		527,607
Weighted average yield	2.91		%	2.08	%	1.57	%	2.04	%
December 31, 2012:
Carrying value:
U.S. Government sponsored agencies	$	—		—		52,582		—		52,582	269	—		52,851	1.63	%
Residential mortgage-backed	—			—		108,420		466,863		575,283	6,142	(614	)	580,811	1.82
State and political subdivisions	826			1,099		252		1,511		3,688	51	(377	)	3,362	1.89
Total	$	826		1,099		161,254		468,374		631,553	6,462	(991	)	637,024	1.80
Fair value:
Debt securities	$	836		1,129		164,433		470,626
Weighted average yield	2.56		%	3.40	%	1.77	%	1.81	%

Proceeds from sales of available-for-sale investment securities were $25.1 million and $143.7 million for the three and nine months ended September 30, 2013, respectively, compared to $107.6 million and $315.2 million for the comparable periods in 2012. Gross realized gains and gross realized losses on investment securities for the three and nine months ended September 30, 2013 and 2012 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Gross realized gains on sales of available-for-sale securities	$	110		790		802		1,682
Gross realized losses on sales of available-for-sale securities	—			—		(354	)	(374	)
Other-than-temporary impairment	(2		)	(1	)	(411	)	(2	)
Net realized gain on investment securities	$	108		789		37		1,306

Other-than-temporary impairment for the nine months ended September 30, 2013 includes impairment of $407,000 recorded during the first quarter of 2013 on a municipal investment security classified as held-to-maturity. Investment securities with a carrying value of $314.8 million and $257.6 million at September 30, 2013 and December 31, 2012, respectively, were pledged in connection with deposits of public and trust funds, securities sold under agreements to repurchase and for other purposes as required by law.

During the first quarter of 2013, the Company reclassified certain of its available-for-sale investment securities to held-to-maturity investment securities at their respective fair values, which totaled $242.5 million, in aggregate. The determination of the reclassification was made by management based on the Company’s current and expected future liquidity levels and the resulting intent to hold such investment securities to maturity. The net gross unrealized gain on these available-for-sale investment securities at the time of transfer of $5.0 million, in aggregate, was recorded as additional premium on the securities and is being amortized over the remaining lives of the respective securities, as further described in Note 10 to the consolidated financial statements.

10

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2013 and December 31, 2012, were as follows:

	Less Than 12 Months				12 Months or More			Total
	Fair Value		Unrealized Losses		Fair Value	Unrealized Losses		Fair Value	Unrealized Losses
	(dollars expressed in thousands)
September 30, 2013:
Available for sale:
U.S. Government sponsored agencies	$	45,008	(960	)	19,939	(208	)	64,947	(1,168	)
Residential mortgage-backed	401,599		(14,043	)	6,373	(104	)	407,972	(14,147	)
State and political subdivisions	27,860		(588	)	—	—		27,860	(588	)
Corporate notes	34,794		(339	)	4,993	(7	)	39,787	(346	)
Equity investments	1,456		(44	)	—	—		1,456	(44	)
Total	$	510,717	(15,974	)	31,305	(319	)	542,022	(16,293	)
Held to maturity:
U.S. Government sponsored agencies	$	18,501	(164	)	—	—		18,501	(164	)
Residential mortgage-backed	662,903		(16,284	)	7,622	(11	)	670,525	(16,295	)
State and political subdivisions	1,012		(54	)	—	—		1,012	(54	)
Total	$	682,416	(16,502	)	7,622	(11	)	690,038	(16,513	)
December 31, 2012:
Available for sale:
U.S. Government sponsored agencies	$	20,018	(146	)	—	—		20,018	(146	)
Residential mortgage-backed	125,449		(441	)	270	(56	)	125,719	(497	)
Corporate notes	—		—		17,675	(621	)	17,675	(621	)
Total	$	145,467	(587	)	17,945	(677	)	163,412	(1,264	)
Held to maturity:
Residential mortgage-backed	$	66,011	(614	)	—	—		66,011	(614	)
State and political subdivisions	1,133		(377	)	—	—		1,133	(377	)
Total	$	67,144	(991	)	—	—		67,144	(991	)

The Company does not believe the investment securities that were in an unrealized loss position at September 30, 2013 are other-than-temporarily impaired. The unrealized losses on the investment securities were primarily attributable to fluctuations in interest rates. It is expected that the securities would not be settled at a price less than the amortized cost. Because the decline in fair value is attributable to changes in interest rates and not credit loss, and because the Company does not intend to sell these investments and it is more likely than not that First Bank will not be required to sell these securities before the anticipated recovery of the remaining amortized cost basis or maturity, these investments are not considered other-than-temporarily impaired. The unrealized losses for U.S. Government sponsored agencies for 12 months or more at September 30, 2013 included one security. The unrealized losses for residential mortgage-backed securities for 12 months or more at September 30, 2013 and December 31, 2012 included 11 and nine securities, respectively. The unrealized losses for corporate notes for 12 months or more at September 30, 2013 and December 31, 2012 included one and six securities, respectively.

NOTE4–LOANS ANDALLOWANCE FORLOANLOSSES

The following table summarizes the composition of the loan portfolio at September 30, 2013 and December 31, 2012:

	September 30, 2013			December 31, 2012
	(dollars expressed in thousands)
Commercial, financial and agricultural	$	583,539		610,301
Real estate construction and development	125,333			174,979
Real estate mortgage:
One-to-four-family residential	924,389			986,767
Multi-family residential	103,362			103,684
Commercial real estate	1,003,533			969,680
Consumer and installment	18,773			19,262
Loans held for sale	28,313			66,133
Net deferred loan fees	(312		)	(59	)
Total loans	$	2,786,930		2,930,747

11

Aging of Loans. The following table presents the aging of loans by loan classification at September 30, 2013 and December 31, 2012:

	30-59 Days		60-89 Days	Recorded Investment > 90 Days Accruing	Nonaccrual	Total Past Due	Current	Total Loans
	(dollars expressed in thousands)
September 30, 2013:
Commercial, financial and agricultural	$	104	899	—	11,897	12,900	570,639	583,539
Real estate construction and development	591		21	—	7,300	7,912	117,421	125,333
Real estate mortgage:
Bank portfolio	1,447		647	171	5,893	8,158	88,821	96,979
Mortgage Division portfolio	3,937		3,242	—	16,772	23,951	460,739	484,690
Home equity	3,252		698	334	6,145	10,429	332,291	342,720
Multi-family residential	—		—	—	1,810	1,810	101,552	103,362
Commercial real estate	3,506		409	4,235	21,310	29,460	974,073	1,003,533
Consumer and installment	93		39	—	6	138	18,323	18,461
Loans held for sale	—		—	—	—	—	28,313	28,313
Total	$	12,930	5,955	4,740	71,133	94,758	2,692,172	2,786,930
December 31, 2012:
Commercial, financial and agricultural	$	1,180	322	—	19,050	20,552	589,749	610,301
Real estate construction and development	93		—	—	32,152	32,245	142,734	174,979
Real estate mortgage:
Bank portfolio	1,871		1,121	874	6,910	10,776	111,562	122,338
Mortgage Division portfolio	6,264		4,375	—	19,780	30,419	479,552	509,971
Home equity	2,494		1,221	216	8,671	12,602	341,856	354,458
Multi-family residential	—		629	—	6,761	7,390	96,294	103,684
Commercial real estate	66		693	—	16,520	17,279	952,401	969,680
Consumer and installment	174		43	—	28	245	18,958	19,203
Loans held for sale	—		—	—	—	—	66,133	66,133
Total	$	12,142	8,404	1,090	109,872	131,508	2,799,239	2,930,747

Under the Company’s loan policy, loans are placed on nonaccrual status once principal or interest payments become 90 days past due. However, individual loan officers may submit written requests for approval to continue the accrual of interest on loans that become 90 days past due. These requests may be submitted for approval consistent with the authority levels provided in the Company’s credit approval policies, and they are only granted if an expected near term future event, such as a pending renewal or expected payoff, exists at the time the loan becomes 90 days past due. If the expected near term future event does not occur as anticipated, the loan is then placed on nonaccrual status.

Credit Quality Indicators. The Company’s credit management policies and procedures focus on identifying, measuring and controlling credit exposure. These procedures employ a lender-initiated system of rating credits, which is ratified in the loan approval process and subsequently tested in internal credit reviews, external audits and regulatory bank examinations. The system requires the rating of all loans at the time they are originated or acquired, except for homogeneous categories of loans, such as residential real estate mortgage loans and consumer loans. These homogeneous loans are assigned an initial rating based on the Company’s experience with each type of loan. The Company adjusts the ratings of the homogeneous loans based on payment experience subsequent to their origination.

The Company includes adversely rated credits, including loans requiring close monitoring that would not normally be considered classified credits by the Company’s regulators, on its monthly loan watch list. Loans may be added to the Company’s watch list for reasons that are temporary and correctable, such as the absence of current financial statements of the borrower or a deficiency in loan documentation. Loans may also be added to the Company’s watch list whenever any adverse circumstance is detected which might affect the borrower’s ability to comply with the contractual terms of the loan. The delinquency of a scheduled loan payment, deterioration in the borrower’s financial condition identified in a review of periodic financial statements, a decrease in the value of the collateral securing the loan, or a change in the economic environment within which the borrower operates could initiate the addition of a loan to the Company’s watch list. Loans on the Company’s watch list require periodic detailed loan status reports prepared by the responsible officer which are discussed in formal meetings with credit review and credit administration staff members. Upgrades and downgrades of loan risk ratings may be initiated by the responsible loan officer. However, upgrades of risk ratings associated with significant credit relationships and/or problem credit relationships may only be made with the concurrence of appropriate regional credit officers.

12

Under the Company’s risk rating system, special mention loans are those loans that do not currently expose the Company to sufficient risk to warrant classification as substandard, troubled debt restructuring (TDR) or nonaccrual, but possess weaknesses that deserve management’s close attention. Substandard loans include those loans characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. A loan is classified as a TDR when a borrower is experiencing financial difficulties that lead to the restructuring of a loan, and the Company grants concessions to the borrower in the restructuring that it would not otherwise consider. Loans classified as TDRs which are accruing interest are classified as performing TDRs. Loans classified as TDRs which are not accruing interest are classified as nonperforming TDRs and are included with all other nonaccrual loans for presentation purposes. Loans classified as nonaccrual have all the weaknesses inherent in those loans classified as substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans.

The following tables present the credit exposure of the loan portfolio by internally assigned credit grade and payment activity as of September 30, 2013 and December 31, 2012:

Commercial Loan Portfolio Credit Exposure by Internally Assigned Credit Grade	Commercial and Industrial		Real Estate Construction and Development	Multi-family	Commercial Real Estate	Total
			(dollars expressed in thousands)
September 30, 2013:
Pass	$	553,028	41,608	72,927	932,267	1,599,830
Special mention	11,170		3,140	—	28,040	42,350
Substandard	7,444		73,285	555	17,366	98,650
Performing troubled debt restructuring	—		—	28,070	4,550	32,620
Nonaccrual	11,897		7,300	1,810	21,310	42,317
Total	$	583,539	125,333	103,362	1,003,533	1,815,767
December 31, 2012:
Pass	$	572,248	45,356	67,690	858,101	1,543,395
Special mention	10,580		6,076	220	70,450	87,326
Substandard	8,423		81,364	773	13,868	104,428
Performing troubled debt restructuring	—		10,031	28,240	10,741	49,012
Nonaccrual	19,050		32,152	6,761	16,520	74,483
Total	$	610,301	174,979	103,684	969,680	1,858,644

One-to-Four-Family Residential Mortgage Bank and Home Equity Loan Portfolio Credit Exposure by Internally Assigned Credit Grade	Bank Portfolio		Home Equity	Total
	(dollars expressed in thousands)
September 30, 2013:
Pass	$	83,724	334,491	418,215
Special mention	6,465		334	6,799
Substandard	193		1,750	1,943
Performing troubled debt restructuring	704		—	704
Nonaccrual	5,893		6,145	12,038
Total	$	96,979	342,720	439,699
December 31, 2012:
Pass	$	107,625	342,321	449,946
Special mention	4,405		216	4,621
Substandard	1,787		3,250	5,037
Performing troubled debt restructuring	1,611		—	1,611
Nonaccrual	6,910		8,671	15,581
Total	$	122,338	354,458	476,796

13

One-to-Four-Family Residential Mortgage Division and Consumer and Installment Loan Portfolio Credit Exposure by Payment Activity	Mortgage Division Portfolio		Consumer and Installment	Total
	(dollars expressed in thousands)
September 30, 2013:
Pass	$	386,719	18,455	405,174
Substandard	4,291		—	4,291
Performing troubled debt restructuring	76,908		—	76,908
Nonaccrual	16,772		6	16,778
Total	$	484,690	18,461	503,151
December 31, 2012:
Pass	$	405,270	19,175	424,445
Substandard	6,627		—	6,627
Performing troubled debt restructuring	78,294		—	78,294
Nonaccrual	19,780		28	19,808
Total	$	509,971	19,203	529,174

Impaired Loans. Loans deemed to be impaired include performing TDRs and nonaccrual loans. Impaired loans with outstanding balances equal to or greater than $500,000 are evaluated individually for impairment. For these loans, the Company measures the level of impairment based on the present value of the estimated projected cash flows or the estimated value of the collateral. If the current valuation is lower than the current book balance of the loan, the amount of the difference is evaluated for possible charge-off. In instances where management determines that a charge-off is not appropriate, a specific reserve is established for the individual loan in question. This specific reserve is included as a part of the overall allowance for loan losses.

The following tables present the recorded investment, unpaid principal balance, related allowance for loan losses, average recorded investment and interest income recognized while on impaired status for impaired loans without a related allowance for loan losses and for impaired loans with a related allowance for loan losses by loan classification at September 30, 2013 and December 31, 2012:

	Recorded Investment		Unpaid Principal Balance	Related Allowance for Loan Losses	Average Recorded Investment	Interest Income Recognized
	(dollars expressed in thousands)
September 30, 2013:
With No Related Allowance Recorded:
Commercial, financial and agricultural	$	3,222	4,456	—	4,164	1
Real estate construction and development	5,619		23,133	—	24,620	418
Real estate mortgage:
Bank portfolio	—		—	—	—	34
Mortgage Division portfolio	9,098		18,483	—	9,365	—
Home equity	601		632	—	672	—
Multi-family residential	28,513		28,778	—	30,896	921
Commercial real estate	20,521		25,170	—	18,925	243
Consumer and installment	—		—	—	—	—
	67,574		100,652	—	88,642	1,617
With A Related Allowance Recorded:
Commercial, financial and agricultural	8,675		23,419	461	11,213	—
Real estate construction and development	1,681		4,246	369	7,365	—
Real estate mortgage:
Bank portfolio	6,597		8,295	301	7,489	—
Mortgage Division portfolio	84,582		94,399	10,562	87,061	1,481
Home equity	5,544		6,396	1,229	6,200	—
Multi-family residential	1,367		1,371	1,159	1,481	—
Commercial real estate	5,339		8,553	1,282	4,924	20
Consumer and installment	6		6	—	23	—
	113,791		146,685	15,363	125,756	1,501
Total:
Commercial, financial and agricultural	11,897		27,875	461	15,377	1
Real estate construction and development	7,300		27,379	369	31,985	418
Real estate mortgage:
Bank portfolio	6,597		8,295	301	7,489	34
Mortgage Division portfolio	93,680		112,882	10,562	96,426	1,481
Home equity	6,145		7,028	1,229	6,872	—
Multi-family residential	29,880		30,149	1,159	32,377	921
Commercial real estate	25,860		33,723	1,282	23,849	263
Consumer and installment	6		6	—	23	—
	$	181,365	247,337	15,363	214,398	3,118

14

	Recorded Investment		Unpaid Principal Balance	Related Allowance for Loan Losses	Average Recorded Investment	Interest Income Recognized
	(dollars expressed in thousands)
December 31, 2012:
With No Related Allowance Recorded:
Commercial, financial and agricultural	$	6,451	24,287	—	12,369	215
Real estate construction and development	39,706		74,044	—	59,094	561
Real estate mortgage:
Bank portfolio	1,611		1,690	—	2,166	32
Mortgage Division portfolio	10,255		22,102	—	10,308	—
Home equity	1,382		1,507	—	1,232	—
Multi-family residential	33,709		37,206	—	13,682	280
Commercial real estate	18,808		24,279	—	35,959	1,160
Consumer and installment	—		—	—	—	—
	111,922		185,115	—	134,810	2,248
With A Related Allowance Recorded:
Commercial, financial and agricultural	12,599		19,255	676	24,157	—
Real estate construction and development	2,477		10,221	1,452	3,687	114
Real estate mortgage:
Bank portfolio	6,910		8,655	284	9,288	—
Mortgage Division portfolio	87,819		96,931	11,574	88,277	2,050
Home equity	7,289		8,188	1,784	6,500	—
Multi-family residential	1,292		1,403	1,138	524	—
Commercial real estate	8,453		12,909	1,043	16,161	11
Consumer and installment	28		28	1	51	—
	126,867		157,590	17,952	148,645	2,175
Total:
Commercial, financial and agricultural	19,050		43,542	676	36,526	215
Real estate construction and development	42,183		84,265	1,452	62,781	675
Real estate mortgage:
Bank portfolio	8,521		10,345	284	11,454	32
Mortgage Division portfolio	98,074		119,033	11,574	98,585	2,050
Home equity	8,671		9,695	1,784	7,732	—
Multi-family residential	35,001		38,609	1,138	14,206	280
Commercial real estate	27,261		37,188	1,043	52,120	1,171
Consumer and installment	28		28	1	51	—
	$	238,789	342,705	17,952	283,455	4,423

Recorded investment represents the Company’s investment in its impaired loans reduced by cumulative charge-offs recorded against the allowance for loan losses on these same loans. At September 30, 2013 and December 31, 2012, the Company had recorded charge-offs of $66.0 million and $103.9 million, respectively, on its impaired loans, representing the difference between the unpaid principal balance and the recorded investment reflected in the tables above. The unpaid principal balance represents the principal amount contractually owed to the Company by the borrowers on the impaired loans.

Troubled Debt Restructurings. In the ordinary course of business, the Company modifies loan terms across loan types, including both consumer and commercial loans, for a variety of reasons. Modifications to consumer loans may include, but are not limited to, changes in interest rate, maturity, amortization and financial covenants. In the original underwriting, loan terms are established that represent the then current and projected financial condition of the borrower. Over any period of time, modifications to these loan terms may be required due to changes in the original underwriting assumptions. These changes may include the financial covenants of the borrower as well as underwriting standards.

Loan modifications are generally performed at the request of the borrower, whether commercial or consumer, and may include reductions in interest rates, changes in payments and maturity date extensions. Although the Company does not have formal, standardized loan modification programs for its commercial or consumer loan portfolios, it addresses loan modifications on a case-by-case basis and also participates in the U.S. Treasury’s Home Affordable Modification Program (HAMP). HAMP gives qualifying homeowners an opportunity to refinance into more affordable monthly payments, with the U.S. Treasury compensating the Company for a portion of the reduction in monthly amounts due from borrowers participating in this program. At September 30, 2013 and December 31, 2012, the Company had $73.7 million and $75.7 million, respectively, of modified loans in the HAMP program.

For a loan modification to be classified as a TDR, all of the following conditions must be present: (1) the borrower is experiencing financial difficulty, (2) the Company makes a concession to the original contractual loan terms and (3) the Company would not consider the concessions but for economic or legal reasons related to the borrower’s financial difficulty. Modifications of loan terms to borrowers experiencing financial difficulty are made in an attempt to protect as much of the investment in the loan as possible. These modifications are generally made to either prevent a loan from becoming nonaccrual or to return a nonaccrual

15

loan to performing status based on the expectations that the borrower can adequately perform in accordance with the modified terms.

The determination of whether a modification should be classified as a TDR requires significant judgment after taking into consideration all facts and circumstances surrounding the transaction. No single characteristic or factor, taken alone, is determinative of whether a modification should be classified as a TDR. The fact that a single characteristic is present is not considered sufficient to overcome the preponderance of contrary evidence. Assuming all of the TDR criteria are met, the Company considers one or more of the following concessions to the loan terms to represent a TDR: (1) a reduction of the stated interest rate, (2) an extension of the maturity date or dates at a stated interest rate lower than the current market rate for a new loan with similar terms or (3) forgiveness of principal or accrued interest.

Loans renegotiated at a rate equal to or greater than that of a new loan with comparable risk at the time the contract is modified are excluded from TDR classification in the calendar years subsequent to the renegotiation if the loan is in compliance with the modified terms for at least six months.

The Company does not accrue interest on any TDRs unless it believes collection of all principal and interest under the modified terms is reasonably assured. Generally, six months of consecutive payment performance by the borrower under the restructured terms is required before a TDR is returned to accrual status. However, the period could vary depending upon the individual facts and circumstances of the loan. TDRs accruing interest are classified as performing TDRs. The following table presents the categories of performing TDRs as of September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Performing Troubled Debt Restructurings:
Real estate construction and development	$	—	10,031
Real estate mortgage:
One-to-four-family residential	77,612		79,905
Multi-family residential	28,070		28,240
Commercial real estate	4,550		10,741
Total performing troubled debt restructurings	$	110,232	128,917

The Company does not accrue interest on TDRs which have been modified for a period less than six months or are not in compliance with the modified terms. These loans are considered nonperforming TDRs and are included with other nonaccrual loans for classification purposes. The following table presents the categories of loans considered nonperforming TDRs as of September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Nonperforming Troubled Debt Restructurings:
Commercial, financial and agricultural	$	726	1,004
Real estate construction and development	3,906		26,557
Real estate mortgage:
One-to-four-family residential	6,450		7,105
Multi-family residential	—		2,482
Commercial real estate	662		2,862
Total nonperforming troubled debt restructurings	$	11,744	40,010

Both performing and nonperforming TDRs are considered to be impaired loans. When an individual loan is determined to be a TDR, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less applicable selling costs. The impairment amount is either charged off as a reduction to the allowance for loan losses or provided for as a specific reserve within the allowance for loan losses. The allowance for loan losses allocated to TDRs was $8.8 million and $9.5 million at September 30, 2013 and December 31, 2012, respectively.

16

The following tables present loans classified as TDRs that were modified during the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30, 2013					Three Months Ended September 30, 2012
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars expressed in thousands)
Loan Modifications Classified as Troubled Debt Restructurings:
Commercial, financial and agricultural	—	$	—	$	—	1	$	640	$	640
Real estate construction and development	—	—		—		2	5,460		5,280
Real estate mortgage:
One-to-four-family residential	15	3,405		3,095		13	2,069		2,065
Commercial real estate	—	—		—		2	4,947		4,947

	Nine Months Ended September 30, 2013					Nine Months Ended September 30, 2012
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars expressed in thousands)
Loan Modifications Classified as Troubled Debt Restructurings:
Commercial, financial and agricultural	2	$	246	$	201	1	$	640	$	640
Real estate construction and development	—	—		—		4	6,263		5,670
Real estate mortgage:
One-to-four-family residential	35	8,275		7,637		42	7,496		7,443
Commercial real estate	—	—		—		3	9,965		9,965

The following tables present TDRs that defaulted within 12 months of modification during the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended			Three Months Ended
	September 30, 2013			September 30, 2012
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(dollars expressed in thousands)
Troubled Debt Restructurings That Subsequently Defaulted:
Commercial, financial and agricultural	1	$	156	—	$	—
Real estate construction and development	—	—		—	—
Real estate mortgage:
One-to-four-family residential	14	3,016		11	2,155

	Nine Months Ended			Nine Months Ended
	September 30, 2013			September 30, 2012
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(dollars expressed in thousands)
Troubled Debt Restructurings That Subsequently Defaulted:
Commercial, financial and agricultural	1	$	156	—	$	—
Real estate construction and development	—	—		3	1,364
Real estate mortgage:
One-to-four-family residential	43	7,937		39	8,049

Upon default of a TDR, which is considered to be 90 days or more past due under the modified terms, impairment is measured based on the fair value of the underlying collateral less applicable selling costs. The impairment amount is either charged off as a reduction to the allowance for loan losses or provided for as a specific reserve within the allowance for loan losses.

17

Allowance for Loan Losses. Changes in the allowance for loan losses for the three and nine months ended September 30, 2013 and 2012 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Balance, beginning of period	$	85,633		120,227		91,602		137,710
Loans charged-off	(7,040		)	(13,927	)	(20,794	)	(48,327	)
Recoveries of loans previously charged-off	5,684			7,902		13,469		22,819
Net loans charged-off	(1,356		)	(6,025	)	(7,325	)	(25,508	)
Provision for loan losses	—			—		—		2,000
Balance, end of period	$	84,277		114,202		84,277		114,202

The following table represents a summary of changes in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2013:

	Commercial and Industrial			Real Estate Construction and Development		One-to- Four-Family Residential		Multi- Family Residential		Commercial Real Estate		Consumer and Installment		Total
	(dollars expressed in thousands)
Three Months Ended September 30, 2013:
Allowance for loan losses:
Beginning balance	$	13,966		11,412		35,266		4,122		20,573		294		85,633
Charge-offs	(2,241		)	—		(2,256	)	—		(2,488	)	(55	)	(7,040	)
Recoveries	1,773			2,557		879		—		443		32		5,684
Provision (benefit) for loan losses	526			(4,967	)	824		39		3,551		27		—
Ending balance	$	14,024		9,002		34,713		4,161		22,079		298		84,277
Nine Months Ended September 30, 2013:
Allowance for loan losses:
Beginning balance	$	13,572		14,434		38,897		4,252		20,048		399		91,602
Charge-offs	(3,927		)	(448	)	(10,983	)	(162	)	(5,121	)	(153	)	(20,794	)
Recoveries	3,863			4,273		3,398		141		1,683		111		13,469
Provision (benefit) for loan losses	516			(9,257	)	3,401		(70	)	5,469		(59	)	—
Ending balance	$	14,024		9,002		34,713		4,161		22,079		298		84,277

The following table represents a summary of changes in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2012:

	Commercial and Industrial			Real Estate Construction and Development		One-to- Four-Family Residential		Multi- Family Residential		Commercial Real Estate		Consumer and Installment		Total
	(dollars expressed in thousands)
Three Months Ended September 30, 2012:
Allowance for loan losses:
Beginning balance	$	22,015		21,829		43,702		4,816		27,471		394		120,227
Charge-offs	(2,475		)	(2,495	)	(6,178	)	(143	)	(2,636	)	—		(13,927	)
Recoveries	4,907			534		1,579		1		827		54		7,902
Provision (benefit) for loan losses	(3,179		)	(37	)	3,311		388		(440	)	(43	)	—
Ending balance	$	21,268		19,831		42,414		5,062		25,222		405		114,202
Nine Months Ended September 30, 2012:
Allowance for loan losses:
Beginning balance	$	27,243		24,868		50,864		4,851		29,448		436		137,710
Charge-offs	(12,708		)	(8,918	)	(15,094	)	(1,312	)	(10,026	)	(269	)	(48,327	)
Recoveries	10,651			4,253		4,054		44		3,673		144		22,819
Provision (benefit) for loan losses	(3,918		)	(372	)	2,590		1,479		2,127		94		2,000
Ending balance	$	21,268		19,831		42,414		5,062		25,222		405		114,202

18

The following table represents a summary of the impairment method used by loan category at September 30, 2013 and December 31, 2012:

	Commercial and Industrial		Real Estate Construction and Development	One-to- Four-Family Residential	Multi- Family Residential	Commercial Real Estate	Consumer and Installment	Total
	(dollars expressed in thousands)
September 30, 2013:
Allowance for loan losses:
Impaired loans individually evaluated for impairment	$	—	86	2,945	—	279	—	3,310
Impaired loans collectively evaluated for impairment	461		283	9,147	1,159	1,003	—	12,053
All other loans collectively evaluated for impairment	13,563		8,633	22,621	3,002	20,797	298	68,914
Total	$	14,024	9,002	34,713	4,161	22,079	298	84,277
Financing receivables:
Impaired loans individually evaluated for impairment	$	3,587	5,911	12,310	28,756	20,805	—	71,369
Impaired loans collectively evaluated for impairment	8,310		1,389	94,112	1,124	5,055	6	109,996
All other loans collectively evaluated for impairment	571,642		118,033	817,967	73,482	977,673	18,455	2,577,252
Total	$	583,539	125,333	924,389	103,362	1,003,533	18,461	2,758,617
December 31, 2012:
Allowance for loan losses:
Impaired loans individually evaluated for impairment	$	75	121	3,187	33	182	—	3,598
Impaired loans collectively evaluated for impairment	601		1,331	10,455	1,105	861	1	14,354
All other loans collectively evaluated for impairment	12,896		12,982	25,255	3,114	19,005	398	73,650
Total	$	13,572	14,434	38,897	4,252	20,048	399	91,602
Financing receivables:
Impaired loans individually evaluated for impairment	$	7,884	39,155	16,843	34,636	20,965	—	119,483
Impaired loans collectively evaluated for impairment	11,166		3,028	98,423	365	6,296	28	119,306
All other loans collectively evaluated for impairment	591,251		132,796	871,501	68,683	942,419	19,175	2,625,825
Total	$	610,301	174,979	986,767	103,684	969,680	19,203	2,864,614

NOTE5–GOODWILL

Goodwill was $107.3 million and $125.3 million at September 30, 2013 and December 31, 2012, respectively. The Company allocated goodwill to the sale of the ABS line of business of $18.0 million, which is included in assets of discontinued operations at September 30, 2013. The Company allocated goodwill to the sale of the Northern Florida Region of $700,000, which was completed in April 2013 and is included in assets of discontinued operations at December 31, 2012. First Bank did not record goodwill impairment for the three or nine months ended September 30, 2013 and 2012.

NOTE6–SERVICINGRIGHTS

Mortgage Banking Activities. At September 30, 2013 and December 31, 2012, First Bank serviced mortgage loans for others totaling $1.32 billion and $1.27 billion, respectively. Changes in mortgage servicing rights for the three and nine months ended September 30, 2013 and 2012 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Balance, beginning of period	$	12,341		8,959		9,152		9,077
Originated mortgage servicing rights	942			1,329		3,059		3,322
Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1)	1,160			(1,484	)	3,467		(2,283	)
Other changes in fair value (2)	(593		)	(616	)	(1,828	)	(1,928	)
Balance, end of period	$	13,850		8,188		13,850		8,188

____________________

(1) The change in fair value resulting from changes in valuation inputs or assumptions used in valuation model primarily reflects the change in discount rates and prepayment speed assumptions, primarily due to changes in interest rates.

(2) Other changes in fair value reflect changes due to the collection/realization of expected cash flows over time.

19

Other Servicing Activities. At September 30, 2013 and December 31, 2012, First Bank serviced United States Small Business Administration (SBA) loans for others totaling $143.3 million and $159.6 million, respectively. Changes in SBA servicing rights for the three and nine months ended September 30, 2013 and 2012 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Balance, beginning of period	$	5,192		6,223		5,640		6,303
Originated SBA servicing rights	—			—		—		—
Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1)	(127		)	148		(163	)	437
Other changes in fair value (2)	(157		)	(465	)	(569	)	(834	)
Balance, end of period	$	4,908		5,906		4,908		5,906

____________________

(1) The change in fair value resulting from changes in valuation inputs or assumptions used in valuation model primarily reflects the change in discount rates and prepayment speed assumptions, primarily due to changes in interest rates.

(2) Other changes in fair value reflect changes due to the collection/realization of expected cash flows over time.

NOTE7–DERIVATIVEINSTRUMENTS

The Company utilizes derivative instruments to assist in the management of interest rate sensitivity by modifying the repricing, maturity and option characteristics of certain assets and liabilities. The following table summarizes derivative instruments held by the Company, their notional amount, estimated fair values and their location in the consolidated balance sheets at September 30, 2013 and December 31, 2012:

				Derivatives in Other Assets				Derivatives in Other Liabilities
	Notional Amount			Fair Value Gain (Loss)				Fair Value Loss
	September 30, 2013		December 31, 2012	September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Derivative Instruments Not Designated as Hedging Instruments:
Customer interest rate swap agreements	$	8,731	12,149	7		87		(7	)	(87	)
Interest rate lock commitments	27,118		59,932	743		1,837		—		—
Forward commitments to sell mortgage-backed securities	39,300		107,700	(637	)	(305	)	—		—
Total	$	75,149	179,781	113		1,619		(7	)	(87	)

Customer Interest Rate Swap Agreements. First Bank offers interest rate swap agreements to certain customers to assist in hedging their risks of adverse changes in interest rates. First Bank serves as an intermediary between its customers and the financial markets. Each interest rate swap agreement between First Bank and its customers is offset by an interest rate swap agreement between First Bank and various counterparties. These interest rate swap agreements do not qualify for hedge accounting treatment. Changes in the fair value are recognized in noninterest income on a monthly basis. Each customer contract is paired with an offsetting contract, and as such, there is no significant impact to net income. The notional amount of these interest rate swap agreement contracts at September 30, 2013 and December 31, 2012 was $8.7 million and $12.1 million, respectively.

Interest Rate Lock Commitments / Forward Commitments to Sell Mortgage-Backed Securities. Derivative instruments issued by the Company consist of interest rate lock commitments to originate fixed-rate loans to be sold. Commitments to originate fixed-rate loans consist primarily of residential real estate loans. These net loan commitments and loans held for sale are hedged with forward contracts to sell mortgage-backed securities, which expire in December 2013. The fair value of the interest rate lock commitments, which is included in other assets in the consolidated balance sheets, was an unrealized gain of $743,000 and $1.8 million at September 30, 2013 and December 31, 2012, respectively. The fair value of the forward contracts to sell mortgage-backed securities, which is included in other assets in the consolidated balance sheets, was an unrealized loss of $637,000 and $305,000 at September 30, 2013 and December 31, 2012, respectively. Changes in the fair value of interest rate lock commitments and forward commitments to sell mortgage-backed securities are recognized in noninterest income on a monthly basis.

20

The following table summarizes amounts included in the consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012 related to non-hedging derivative instruments:

Derivative Instruments Not Designated as Hedging Instruments:	Location of Gain (Loss) Recognized in Operations on Derivatives	Amount of Gain (Loss) Recognized in Operations on Derivatives
		Three Months Ended					Nine Months Ended
		September 30,					September 30,
		2013			2012		2013		2012
		(dollars expressed in thousands)
Interest rate swap agreements	Other noninterest income	$	—		(8	)	—		(49	)
Customer interest rate swap agreements	Other noninterest income	—			—		—		3
Interest rate lock commitments	Gain on loans sold and held for sale	675			1,192		(1,094	)	2,901
Forward commitments to sell mortgage-backed securities	Gain on loans sold and held for sale	(3,115		)	(1,165	)	(332	)	(1,593	)

NOTE8–NOTESPAYABLE ANDOTHERBORROWINGS

Notes Payable. On March 20, 2013, the Company entered into a Revolving Credit Note and a Stock Pledge Agreement (the Credit Agreement) with Investors of America Limited Partnership (Investors of America, LP), as further described in Note 16 to the consolidated financial statements. The agreement provides for a $5.0 million secured revolving line of credit to be utilized for general working capital needs. This borrowing arrangement, which has a maturity date of March 31, 2014 and an interest rate of LIBOR plus 300 basis points, 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.

Other Borrowings. Other borrowings were comprised solely of daily securities sold under agreement to repurchase of $37.1 million and $26.0 million at September 30, 2013 and December 31, 2012, respectively.

NOTE9–SUBORDINATEDDEBENTURES

As of September 30, 2013, the Company had 13 affiliated Delaware or Connecticut statutory and business trusts (collectively, the Trusts) that were created for the sole purpose of issuing trust preferred securities. The trust preferred securities were issued in private placements, with the exception of First Preferred Capital Trust IV, which was issued in a publicly underwritten offering. The following is a summary of the junior subordinated debentures issued to the Trusts in conjunction with the trust preferred securities offerings at September 30, 2013 and December 31, 2012:

Name of Trust	Issuance Date	Maturity Date	Call Date(1)	Interest Rate(2)	Trust Preferred Securities		Subordinated Debentures
					(dollars expressed in thousands)
Variable Rate
First Bank Statutory Trust II	September 2004	September 20, 2034	September 20, 2009	205.0 bp	$	20,000	$	20,619
Royal Oaks Capital Trust I	October 2004	January 7, 2035	January 7, 2010	240.0 bp	4,000		4,124
First Bank Statutory Trust III	November 2004	December 15, 2034	December 15, 2009	218.0 bp	40,000		41,238
First Bank Statutory Trust IV	March 2006	March 15, 2036	March 15, 2011	142.0 bp	40,000		41,238
First Bank Statutory Trust V	April 2006	June 15, 2036	June 15, 2011	145.0 bp	20,000		20,619
First Bank Statutory Trust VI	June 2006	July 7, 2036	July 7, 2011	165.0 bp	25,000		25,774
First Bank Statutory Trust VII	December 2006	December 15, 2036	December 15, 2011	185.0 bp	50,000		51,547
First Bank Statutory Trust VIII	February 2007	March 30, 2037	March 30, 2012	161.0 bp	25,000		25,774
First Bank Statutory Trust X	August 2007	September 15, 2037	September 15, 2012	230.0 bp	15,000		15,464
First Bank Statutory Trust IX	September 2007	December 15, 2037	December 15, 2012	225.0 bp	25,000		25,774
First Bank Statutory Trust XI	September 2007	December 15, 2037	December 15, 2012	285.0 bp	10,000		10,310
Fixed Rate
First Bank Statutory Trust	March 2003	March 20, 2033	March 20, 2008	8.10%	25,000		25,774
First Preferred Capital Trust IV	April 2003	June 30, 2033	June 30, 2008	8.15%	46,000		47,423

____________________

(1) The junior subordinated debentures are callable at the option of the Company on the call date shown at 100% of the principal amount plus accrued and unpaid interest.

(2) The interest rates paid on the trust preferred securities are based on either a variable rate or a fixed rate. The variable rate is based on the three-month LIBOR plus the basis point spread shown.

The Company’s distributions accrued on the junior subordinated debentures were $3.8 million and $11.2 million for the three and nine months ended September 30, 2013, respectively, and $3.7 million and $11.1 million for the comparable periods in 2012, and are included in interest expense in the consolidated statements of operations. The structure of the trust preferred securities currently satisfies the regulatory requirements for inclusion, subject to certain limitations, in the Company’s capital base, as further discussed in Note 11 to the consolidated financial statements.

21

On August 10, 2009, the Company announced the deferral of its regularly scheduled interest payments on its outstanding junior subordinated debentures relating to its $345.0 million of trust preferred securities beginning with the regularly scheduled quarterly interest payments that would otherwise have been made in September and October, 2009. The terms of the junior subordinated debentures and the related trust indentures allow the Company to defer such payments of interest for up to 20 consecutive quarterly periods without triggering a payment default or penalty. The current allowable 20 consecutive quarterly deferral period ends with the respective payment dates of the trust preferred securities in September and October, 2014. Thus, unless the Company resumes payment of interest on its junior subordinated debentures relating to its trust preferred securities and pays all cumulative interest that has been deferred by the respective payment dates of the trust preferred securities in September and October, 2014, the Company will trigger a payment default or penalty, and the trustee under the indentures will have the right and may elect to declare the entire outstanding amount of both principal and interest immediately due and payable. Such payment default or penalty would have a material adverse effect on our business, financial condition and results of operations.

The Company has deferred such payments for 17 quarterly periods as of September 30, 2013. The Company has deferred $52.9 million and $43.8 million of its regularly scheduled interest payments as of September 30, 2013 and December 31, 2012, respectively. In addition, the Company has accrued additional interest expense of $6.0 million and $3.9 million as of September 30, 2013 and December 31, 2012, respectively, on the regularly scheduled deferred interest payments based on the interest rate in effect for each junior subordinated note issuance in accordance with the respective terms of the underlying agreements. The Company currently lacks the source of income and the liquidity to make interest payments on the subordinated debentures associated with its trust preferred securities. Given restrictions placed upon First Bank, including regulatory restrictions, it may not be able to provide the Company with dividends in an amount sufficient to pay the cumulative deferred interest by the respective payment dates of the trust preferred securities in September and October, 2014. In such case, the Company would have to pursue alternative funding sources, but there can be no assurance that the Company will be able to identify and obtain alternative funding due to the uncertainty that such alternative funding sources would be available to the Company on terms and conditions that are acceptable to the Company.

During the deferral period, the Company may not, among other things and with limited exceptions, pay cash dividends on or repurchase its common stock or preferred stock nor make any payment on outstanding debt obligations that rank equally with or junior to the junior subordinated debentures. Accordingly, the Company also suspended the payment of cash dividends on its outstanding common stock and preferred stock beginning with the regularly scheduled quarterly dividend payments on the preferred stock that would otherwise have been made in August and September, 2009, as further described in Note 10 to the consolidated financial statements.

Under its agreement with the Federal Reserve Bank of St. Louis (FRB), the Company agreed, among other things, to provide certain information to the FRB, including, but not limited to, prior notice regarding the issuance of additional trust preferred securities. The Company also agreed not to make any distributions of interest or other sums on its outstanding trust preferred securities without the prior approval of the FRB, as further described in Note 11 to the consolidated financial statements. The Company is unable to predict whether or when the FRB will grant approval to the Company to make any such interest payments. As such, if the Company triggers a payment default or penalty, and the trustee under the indentures elects to declare the entire outstanding amount of both principal and interest immediately due and payable, there is a substantial risk that the Company would not be able to meet its financial commitments and related contractual obligations associated with its junior subordinated debentures, which would have a material adverse effect on our business, financial condition and results of operations.

NOTE10–STOCKHOLDERS’EQUITY

Common Stock. There is no established public trading market for the Company’s common stock. Various trusts, which were established by and are administered by and for the benefit of the Company’s Chairman of the Board and members of his immediate family (including Mr. Michael Dierberg, Vice Chairman of the Company), own all of the voting stock of the Company.

Preferred Stock. The Company has four classes of preferred stock outstanding. The Class A Convertible Adjustable Rate Preferred Stock, or Class A Preferred Stock, is convertible into shares of common stock at a rate based on the ratio of the par value of the preferred stock to the current market value of the common stock at the date of conversion, to be determined by independent appraisal at the time of conversion. Shares of Class A Preferred Stock may be redeemed by the Company at any time at 105.0% of par value. The Class B Non-Convertible Adjustable Rate Preferred Stock, or Class B Preferred Stock, may not be redeemed or converted. The holders of the Class A and Class B Preferred Stock have full voting rights. Dividends on the Class A and Class B Preferred Stock are adjustable quarterly based on the highest of the Treasury Bill Rate or the Ten Year Constant Maturity Rate for the two-week period immediately preceding the beginning of the quarter. This rate shall not be less than 6.0% nor more than 12.0% on the Class A Preferred Stock, or less than 7.0% nor more than 15.0% on the Class B Preferred Stock. Effective August 10, 2009, the Company suspended the declaration of dividends on its Class A and Class B Preferred Stock.

On December 31, 2008, the Company issued 295,400 shares of Class C Fixed Rate Cumulative Perpetual Preferred Stock (Class C Preferred Stock) and 14,770 shares of Class D Fixed Rate Cumulative Perpetual Preferred Stock (Class D Preferred Stock) to

22

the United States Department of the Treasury (U.S. Treasury) in conjunction with the U.S. Treasury’s Troubled Asset Relief Program’s Capital Purchase Program (CPP). The Class C Preferred Stock has a par value of $1.00 per share and a liquidation preference of $1,000 per share. The holders of the Class C Preferred Stock have no voting rights except in certain limited circumstances. The Class C Preferred Stock carries an annual dividend rate equal to 5% for the first five years and the annual dividend rate increases to 9% per annum on and after February 15, 2014, payable quarterly in arrears beginning February 15, 2009. The Class D Preferred Stock has a par value of $1.00 per share and a liquidation preference of $1,000 per share. The holders of the Class D Preferred Stock have no voting rights except in certain limited circumstances. The Class D Preferred Stock carries an annual dividend rate equal to 9%, payable quarterly in arrears beginning February 15, 2009. The Class C Preferred Stock and the Class D Preferred Stock qualify as Tier 1 capital. Effective February 17, 2009, the Class C Preferred Stock and the Class D Preferred Stock may be redeemed at any time without penalty and without the need to raise new capital, subject to consultation with the Company’s primary regulatory agency. The Class D Preferred Stock may not be redeemed until all of the outstanding shares of the Class C Preferred Stock have been redeemed. In addition, prior to the U.S. Treasury's sale of the Class C Preferred Stock and Class D Preferred Stock (as further described below), the U.S. Treasury had certain supervisory and oversight duties and responsibilities under the CPP and, pursuant to the terms of the agreement governing the issuance of the Class C Preferred Stock and the Class D Preferred Stock to the U.S. Treasury (Purchase Agreement), the U.S. Treasury was empowered to unilaterally amend any provision of the Purchase Agreement with the Company to the extent required to comply with any changes in applicable federal statutes. As a result of the Company’s deferral of dividends to the U.S. Treasury for an aggregate of six quarters, the U.S. Treasury had the right to elect two directors to the Company’s Board. On July 13, 2011, the U.S. Treasury elected two members to the Company’s Board of Directors.

During the third quarter of 2013, the U.S. Treasury completed two auctions that resulted in the sale of the Class C Preferred Stock and the Class D Preferred Stock to unaffiliated third party investors. On August 12, 2013, the U.S. Treasury completed its first auction, selling approximately 96% of the Class C Preferred Stock and all of the Class D Preferred Stock. On September 25, 2013, the U.S. Treasury completed its second auction of the remaining 4% of the Class C Preferred Stock. The Company did not receive any proceeds from the sale and the sale did not have any effect on the terms of the outstanding Class C Preferred Stock and Class D Preferred Stock, including the Company's obligation to satisfy accrued and unpaid dividends prior to the payment of any dividend or other distribution to holders of junior or parity stock (including the Company's common stock, Class A Preferred Stock and Class B Preferred Stock), and an increase in the dividend rate on the Class C Preferred Stock from 5% to 9%, commencing with the dividend payment date of February 15, 2014. Furthermore, the sale of the Class C Preferred Stock and the Class D Preferred Stock did not have any effect on the Company's regulatory capital, financial condition or results of operations.

The Company allocated the total proceeds received under the CPP of $295.4 million to the Class C Preferred Stock and the Class D Preferred Stock based on the relative fair values of the respective classes of preferred stock at the time of issuance. The discount on the Class C Preferred Stock of $17.3 million is being accreted to retained earnings on a level-yield basis over five years. Accretion of the discount on the Class C Preferred Stock was $919,000 and $2.7 million for the three and nine months ended September 30, 2013, respectively, compared to $893,000 and $2.7 million for the comparable periods in 2012.

The redemption of any issue of preferred stock requires the prior approval of the Federal Reserve. The Purchase Agreement that the Company entered into with the U.S. Treasury contains limitations on certain actions of the Company, including, but not limited to, payment of dividends and redemptions and acquisitions of the Company’s equity securities. In addition, the Company, under its agreement with the FRB, has agreed, among other things, to provide certain information to the FRB including, but not limited to, notice of plans to materially change its fundamental business and notice to raise additional equity capital. Furthermore, the Company agreed not to pay any dividends on its common or preferred stock without the prior approval of the FRB, as further described in Note 11 to the consolidated financial statements.

In conjunction with the deferral of its regularly scheduled interest payments on its outstanding junior subordinated debentures on August 10, 2009, as further described in Note 9 to the consolidated financial statements, the Company also began suspending the payment of cash dividends on its outstanding preferred stock beginning with the regularly scheduled quarterly dividend payments on the preferred stock that would otherwise have been made in August and September 2009. The Company has deferred such payments for 17 quarterly periods as of September 30, 2013. Consequently, the Company has suspended the declaration of dividends on its Class A and Class B preferred stock, but continues to declare and accumulate dividends on its Class C Preferred Stock and its Class D Preferred Stock. The Company has declared and deferred $68.4 million and $56.3 million of its regularly scheduled dividend payments on its Class C Preferred Stock and Class D Preferred Stock at September 30, 2013 and December 31, 2012, respectively, and has declared and accrued an additional $8.4 million and $5.6 million of cumulative dividends on such deferred dividend payments at September 30, 2013 and December 31, 2012, respectively.

During the first quarter of 2013, the Company reclassified certain of its available-for-sale investment securities to held-to-maturity investment securities at their respective fair values, which totaled $242.5 million, in aggregate, as further described in Note 3 to the consolidated financial statements. The gross unrealized gain on these available-for-sale investment securities at the time of transfer was $5.0 million. The unrealized gain included as a component of accumulated other comprehensive income was $2.8 million at the time of transfer, net of tax of $2.2 million. The fair value adjustment at the time of transfer of $5.0 million was

23

recorded as additional premium on the investment securities, and is being amortized as an adjustment to interest income on investment securities over the remaining lives of the respective securities. The amortization of the unrealized gain reported in stockholders’ equity is also being amortized as an adjustment to interest income on investment securities over the remaining lives of the respective securities. Consequently, the combined amortization of the additional premium and the unrealized gain have no net impact on interest income on investment securities.

Accumulated Other Comprehensive Income. The following table summarizes changes in accumulated other comprehensive income, net of tax, by component, for the three and nine months ended September 30, 2013:

	Investment Securities			Defined Benefit Pension Plan		Deferred Tax Asset Valuation Allowance		Total
				(dollars expressed in thousands)
Three Months Ended September 30, 2013:
Balance, beginning of period	$	15,337		(3,484	)	(2,250	)	9,603
Other comprehensive income (loss) before reclassifications	(1,363		)	30		(1,117	)	(2,450	)
Amounts reclassified from accumulated other comprehensive income (loss)	(60		)	—		—		(60	)
Net current period other comprehensive income (loss)	(1,423		)	30		(1,117	)	(2,510	)
Balance, end of period	$	13,914		(3,454	)	(3,367	)	7,093
Nine Months Ended September 30, 2013:
Balance, beginning of period	$	35,186		(3,544	)	13,617		45,259
Other comprehensive income (loss) before reclassifications	(21,026		)	90		(16,984	)	(37,920	)
Amounts reclassified from accumulated other comprehensive income (loss)	(246		)	—		—		(246	)
Net current period other comprehensive income (loss)	(21,272		)	90		(16,984	)	(38,166	)
Balance, end of period	$	13,914		(3,454	)	(3,367	)	7,093

The following table summarizes changes in accumulated other comprehensive income, net of tax, by component, for the three and nine months ended September 30, 2012:

	Investment Securities			Defined Benefit Pension Plan		Deferred Tax Asset Valuation Allowance		Total
				(dollars expressed in thousands)
Three Months Ended September 30, 2012:
Balance, beginning of period	$	30,971		(2,591	)	5,504		33,884
Other comprehensive income (loss) before reclassifications	2,266			21		7,101		9,388
Amounts reclassified from accumulated other comprehensive income (loss)	(422		)	—		—		(422	)
Net current period other comprehensive income (loss)	1,844			21		7,101		8,966
Balance, end of period	$	32,815		(2,570	)	12,605		42,850
Nine Months Ended September 30, 2012:
Balance, beginning of period	$	19,437		(2,633	)	(738	)	16,066
Other comprehensive income (loss) before reclassifications	14,136			63		13,343		27,542
Amounts reclassified from accumulated other comprehensive income (loss)	(758		)	—		—		(758	)
Net current period other comprehensive income (loss)	13,378			63		13,343		26,784
Balance, end of period	$	32,815		(2,570	)	12,605		42,850

NOTE11–REGULATORYCAPITAL AND OTHER REGULATORY MATTERS

Regulatory Capital. The Company and First Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the operations and financial condition of the Company and First Bank. Under these capital requirements, the Company and First Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and First Bank to maintain minimum amounts and ratios of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets, and of Tier 1 capital to average assets.

The Company did not meet the minimum regulatory capital standards established for bank holding companies by the Federal Reserve at September 30, 2013 and December 31, 2012. The Company must maintain minimum total regulatory, Tier 1 regulatory and Tier 1 leverage ratios as set forth in the table below in order to meet the minimum capital adequacy standards.

24

First Bank was categorized as well capitalized at September 30, 2013 and December 31, 2012 under the prompt corrective action provisions of the regulatory capital standards. First Bank must maintain minimum total regulatory, Tier 1 regulatory and Tier 1 leverage ratios as set forth in the table below in order to be categorized as well capitalized.

At September 30, 2013 and December 31, 2012, the Company's and First Bank’s required and actual capital ratios were as follows:

											To be Well Capitalized Under Prompt Corrective Action Provisions
	Actual								For Capital Adequacy Purposes
	September 30, 2013				December 31, 2012
	Amount		Ratio		Amount		Ratio
	(dollars expressed in thousands)
Total capital (to risk-weighted assets):
First Banks, Inc.	$	114,522	3.20	%	$	93,542	2.57	%	8.0	%	N/A
First Bank	659,624		18.42		626,177		17.18		8.0		10.0	%
Tier 1 capital (to risk-weighted assets):
First Banks, Inc.	57,261		1.60		46,771		1.28		4.0		N/A
First Bank	614,332		17.15		580,026		15.92		4.0		6.0
Tier 1 capital (to average assets):
First Banks, Inc.	57,261		0.94		46,771		0.73		4.0		N/A
First Bank	614,332		10.09		580,026		9.13		4.0		5.0

As noted above, the Company’s capital ratios are below the minimum regulatory capital standards established for bank holding companies, and therefore, the Company could be subject to additional actions by regulators that could have a direct material effect on the operations and financial condition of the Company and First Bank.

Regulatory Agreements. On March 24, 2010, the Company, SFC and First Bank entered into a Written Agreement (Agreement) with the FRB requiring the Company and First Bank to take certain steps intended to improve their overall financial condition. Pursuant to the Agreement, the Company prepared and filed with the FRB a number of specific plans designed to strengthen and/or address the following matters: (i) board oversight over the management and operations of the Company and First Bank; (ii) credit risk management practices; (iii) lending and credit administration policies and procedures; (iv) asset improvement; (v) capital; (vi) earnings and overall financial condition; and (vii) liquidity and funds management.

The Agreement requires, among other things, that the Company and First Bank obtain prior approval from the FRB in order to pay dividends. In addition, the Company must obtain prior approval from the FRB to: (i) take any other form of payment from First Bank representing a reduction in capital of First Bank; (ii) make any distributions of interest, principal or other sums on junior subordinated debentures or trust preferred securities; (iii) incur, increase or guarantee any debt; or (iv) purchase or redeem any shares of the Company’s stock. The FRB has complete discretion to grant any such approval and therefore, it is not known whether the FRB will approve any request, including a request to make interest payments on the Company's subordinated debentures associated with its trust preferred securities, at any time in the future. As further described in Note 9 to the consolidated financial statements, the Company will trigger a payment default or penalty on its junior subordinated debentures unless the Company resumes payment of interest and pays all cumulative interest that has been deferred by the respective payment dates in September and October, 2014.

Pursuant to the terms of the Agreement, the Company and First Bank submitted a written plan to the FRB to maintain sufficient capital at the Company, on a consolidated basis, and at First Bank, on a standalone basis. In addition, the Agreement also provides that the Company and First Bank must notify the FRB if the regulatory capital ratios of either entity fall below those set forth in the capital plans that were accepted by the FRB, and specifically if First Bank falls below the criteria for being well capitalized under the regulatory framework for prompt corrective action. The Company must also notify the FRB before appointing any new directors or senior executive officers or changing the responsibilities of any senior executive officer position. The Agreement also requires the Company and First Bank to comply with certain restrictions regarding indemnification and severance payments although First Bank has been notified, as of October 16, 2013, by the FRB that such restriction is no longer applicable to First Bank. The Agreement is specifically enforceable by the FRB in court.

Prior to entering into the Agreement on March 24, 2010, the Company and First Bank had entered into a memorandum of understanding and an informal agreement, respectively, with the FRB and the Missouri Division of Finance (MDOF). Each of the agreements were characterized by regulatory authorities as informal actions that were neither published nor made publicly available by the agencies and are used when circumstances warrant a milder form of action than a formal supervisory action, such as a written agreement or cease and desist order. The memorandum of understanding with the FRB was replaced and superseded by the Agreement. The informal agreement with the MDOF, dated September 18, 2008, was terminated effective September 11, 2013.

Under the terms of the prior memorandum of understanding with the FRB, the Company agreed, among other things, to provide certain information to the FRB including, but not limited to, financial performance updates, notice of plans to materially change

25

its fundamental business and notice to issue trust preferred securities or raise additional equity capital. In addition, the Company agreed not to pay any dividends on its common or preferred stock or make any distributions of interest or other sums on its trust preferred securities without the prior approval of the FRB.

First Bank, under its former informal agreement with the MDOF and the FRB, agreed to, among other things, prepare and submit plans and reports to the agencies regarding certain matters including, but not limited to, the performance of First Bank’s loan portfolio. In addition, First Bank agreed not to declare or pay any dividends or make certain other payments without the prior consent of the MDOF and the FRB, and was required to maintain its Tier 1 capital to total assets ratio at no less than 7.00%. First Bank’s Tier 1 capital to total assets ratio of 9.20% at December 31, 2012 exceeded the 7.00% minimum level required under the terms of the former informal agreement with the MDOF.

While the Company and First Bank intend to take such actions as may be necessary to comply with the requirements of the Agreement with the FRB, there can be no assurance that the Company and First Bank will be able to comply fully with the requirements of the Agreement, that compliance with the Agreement will not be more time consuming or more expensive than anticipated, that compliance with the Agreement will enable the Company and First Bank to maintain profitable operations, or that efforts to comply with the Agreement will not have adverse effects on the operations and financial condition of the Company or First Bank. If the Company or First Bank is unable to comply with the terms of the Agreement, the Company and First Bank could become subject to various requirements limiting the ability to develop new business lines, mandating additional capital, and/or requiring the sale of certain assets and liabilities. Failure of the Company or First Bank to meet these conditions could lead to further enforcement action by the regulatory agencies. The terms of any such additional regulatory actions, orders or agreements could have a materially adverse effect on the Company’s business, financial condition or results of operations.

NOTE12–FAIRVALUEDISCLOSURES

In accordance with ASC Topic 820, “Fair Value Measurements and Disclosures,” financial assets and financial liabilities that are measured at fair value subsequent to initial recognition are grouped into three levels of inputs or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the reliability of assumptions used to determine fair value. The three input levels of the valuation hierarchy are as follows:

Level 1 Inputs – Valuation is based on quoted prices in active markets for identical instruments in active markets.

Level 2 Inputs – Valuation is based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 Inputs – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

The following describes valuation methodologies used to measure financial assets and financial liabilities at fair value, as well as the general classification of such financial instruments pursuant to the valuation hierarchy:

Available-for-sale investment securities. Available-for-sale investment securities are recorded at fair value on a recurring basis. Available-for-sale investment securities included in Level 1 are valued using quoted market prices. Where quoted market prices are unavailable, the fair value included in Level 2 is based on quoted market prices of comparable instruments obtained from independent pricing vendors based on recent trading activity and other relevant information.

Loans held for sale. Mortgage loans held for sale are carried at fair value on a recurring basis. The determination of fair value is based on quoted market prices of comparable instruments obtained from independent pricing vendors based on recent trading activity and other relevant information. Other loans held for sale are carried at the lower of cost or market value, which is determined on an individual loan basis. The fair value is based on the prices secondary markets are offering for portfolios with similar characteristics. The Company classifies mortgage loans held for sale subjected to recurring fair value adjustments as recurring Level 2. The Company classifies other loans held for sale subjected to nonrecurring fair value adjustments as nonrecurring Level 2.

Impaired loans. The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans are considered impaired when, in the judgment of management based on current information and events, it is probable that payment of all amounts due under the contractual terms of the loan agreement will not be collected. Acquired impaired loans are classified as nonaccrual loans and are initially measured at fair value with no allocated allowance for loan losses. An allowance for loan losses is recorded to the extent there is further credit deterioration subsequent to the acquisition date. In accordance with ASC Topic 820, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. Once a loan is identified as impaired, management measures the impairment in accordance with ASC Topic 310-10-35, “Receivables.” Impairment is measured

26

by reference to an observable market price, if one exists, the expected future cash flows of an impaired loan discounted at the loan’s effective interest rate, or the fair value of the collateral for a collateral-dependent loan. In most cases, the Company measures fair value based on the value of the collateral securing the loan. Collateral may be in the form of real estate or personal property, including equipment and inventory. The vast majority of the collateral is real estate. The value of the collateral is determined based on third party appraisals as well as internal estimates. These measurements are classified as nonrecurring Level 3.

Other real estate and repossessed assets. Certain other real estate and repossessed assets, upon initial recognition, are re-measured and reported at fair value through a charge-off to the allowance for loan losses based upon the estimated fair value of the other real estate. The fair value of other real estate, upon initial recognition, is estimated using Level 3 inputs based on third party appraisals, and where applicable, discounted based on management’s judgment taking into account current market conditions, distressed or forced sale price comparisons and other factors in effect at the time of valuation. The Company classifies other real estate and repossessed assets subjected to nonrecurring fair value adjustments as Level 3.

Derivative instruments. Substantially all derivative instruments utilized by the Company are traded in over-the-counter markets where quoted market prices are not readily available. Derivative instruments utilized by the Company include interest rate swap agreements, interest rate lock commitments and forward commitments to sell mortgage-backed securities. For these derivative instruments, fair value is based on market observable inputs utilizing pricing systems and valuation models, and where applicable, the values are compared to the market values calculated independently by the respective counterparties. The Company classifies its derivative instruments as Level 2.

Servicing rights. The valuation of mortgage and SBA servicing rights is performed by an independent third party. The valuation models estimate the present value of estimated future net servicing income, using market-based discount rate assumptions, and utilize assumptions based on the predominant risk characteristics of the underlying loans, including principal balance, interest rate, weighted average life, and certain unobservable inputs, including cost to service, estimated prepayment speed rates and default rates. Changes in the fair value of servicing rights occur primarily due to the realization of expected cash flows, as well as changes in valuation inputs and assumptions. Significant increases (decreases) in any of the unobservable inputs would result in a significantly lower (higher) fair value of the servicing rights. The Company classifies its servicing rights as Level 3.

Nonqualified Deferred Compensation Plan. The Company’s nonqualified deferred compensation plan is recorded at fair value on a recurring basis. The unfunded plan allows participants to hypothetically invest in various specified investment options such as equity funds, international stock funds, capital appreciation funds, money market funds, bond funds, mid-cap value funds and growth funds. The nonqualified deferred compensation plan liability is valued based on quoted market prices of the underlying investments. The Company classifies its nonqualified deferred compensation plan liability as Level 1.

27

Items Measured on a Recurring Basis. Assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 are reflected in the following table:

	Fair Value Measurements
	Level 1		Level 2		Level 3	Fair Value
	(dollars expressed in thousands)
September 30, 2013:
Assets:
Available-for-sale investment securities:
U.S. Government sponsored agencies	$	—	276,034		—	276,034
Residential mortgage-backed	—		1,098,229		—	1,098,229
Commercial mortgage-backed	—		868		—	868
State and political subdivisions	—		32,261		—	32,261
Corporate notes	—		195,439		—	195,439
Equity investments	1,456		—		—	1,456
Mortgage loans held for sale	—		28,313		—	28,313
Derivative instruments:
Customer interest rate swap agreements	—		7		—	7
Interest rate lock commitments	—		743		—	743
Forward commitments to sell mortgage-backed securities	—		(637	)	—	(637	)
Servicing rights	—		—		18,758	18,758
Total	$	1,456	1,631,257		18,758	1,651,471
Liabilities:
Derivative instruments:
Customer interest rate swap agreements	$	—	7		—	7
Nonqualified deferred compensation plan	6,261		—		—	6,261
Total	$	6,261	7		—	6,268
December 31, 2012:
Assets:
Available-for-sale investment securities:
U.S. Government sponsored agencies	$	—	310,429		—	310,429
Residential mortgage-backed	—		1,534,067		—	1,534,067
Commercial mortgage-backed	—		915		—	915
State and political subdivisions	—		4,929		—	4,929
Corporate notes	—		192,365		—	192,365
Equity investments	1,022		—		—	1,022
Mortgage loans held for sale	—		66,133		—	66,133
Derivative instruments:
Customer interest rate swap agreements	—		87		—	87
Interest rate lock commitments	—		1,837		—	1,837
Forward commitments to sell mortgage-backed securities	—		(305	)	—	(305	)
Servicing rights	—		—		14,792	14,792
Total	$	1,022	2,110,457		14,792	2,126,271
Liabilities:
Derivative instruments:
Customer interest rate swap agreements	$	—	87		—	87
Nonqualified deferred compensation plan	6,443		—		—	6,443
Total	$	6,443	87		—	6,530

There were no transfers between Levels 1 and 2 of the fair value hierarchy for the three and nine months ended September 30, 2013 and 2012.

28

The following table presents the changes in Level 3 assets measured on a recurring basis for the three and nine months ended September 30, 2013 and 2012:

	Servicing Rights
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013	2012
	(dollars expressed in thousands)
Balance, beginning of period	$	17,533	15,182		14,792	15,380
Total gains or losses (realized/unrealized):
Included in earnings (1)	283		(2,417	)	907	(4,608	)
Included in other comprehensive income	—		—		—	—
Issuances	942		1,329		3,059	3,322
Transfers in and/or out of level 3	—		—		—	—
Balance, end of period	$	18,758	14,094		18,758	14,094

____________________

(1) Gains or losses (realized/unrealized) are included in noninterest income in the consolidated statements of operations.

Items Measured on a Nonrecurring Basis. From time to time, the Company measures certain assets at fair value on a nonrecurring basis. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis as of September 30, 2013 and December 31, 2012 are reflected in the following table:

	Fair Value Measurements
	Level 1		Level 2	Level 3	Fair Value
	(dollars expressed in thousands)
September 30, 2013:
Assets:
Impaired loans:
Commercial, financial and agricultural	$	—	—	11,436	11,436
Real estate construction and development	—		—	6,931	6,931
Real estate mortgage:
Bank portfolio	—		—	6,296	6,296
Mortgage Division portfolio	—		—	83,118	83,118
Home equity	—		—	4,916	4,916
Multi-family residential	—		—	28,721	28,721
Commercial real estate	—		—	24,578	24,578
Consumer and installment	—		—	6	6
Other real estate and repossessed assets	—		—	74,831	74,831
Total	$	—	—	240,833	240,833
December 31, 2012:
Assets:
Impaired loans:
Commercial, financial and agricultural	$	—	—	18,374	18,374
Real estate construction and development	—		—	40,731	40,731
Real estate mortgage:
Bank portfolio	—		—	8,237	8,237
Mortgage Division portfolio	—		—	86,500	86,500
Home equity	—		—	6,887	6,887
Multi-family residential	—		—	33,863	33,863
Commercial real estate	—		—	26,218	26,218
Consumer and installment	—		—	27	27
Other real estate and repossessed assets	—		—	91,995	91,995
Total	$	—	—	312,832	312,832

Non-Financial Assets and Non-Financial Liabilities. Certain non-financial assets measured at fair value on a nonrecurring basis include other real estate (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment.

Other real estate and repossessed assets measured at fair value upon initial recognition totaled$8.2 million and $21.8 million for the nine months ended September 30, 2013 and 2012, respectively. In addition to other real estate and repossessed assets measured at fair value upon initial recognition, the Company recorded write-downs to the balance of other real estate and repossessed assets of $1.4 million and $2.2 million to noninterest expense for the three and nine months ended September 30, 2013, respectively,

29

compared to $1.7 million and $7.9 million for the comparable periods in 2012. Other real estate and repossessed assets were $74.8 million at September 30, 2013, compared to $92.0 million at December 31, 2012.

Fair Value of Financial Instruments. The fair value of financial instruments is management’s estimate of the values at which the instruments could be exchanged in a transaction between willing parties. These estimates are subjective and may vary significantly from amounts that would be realized in actual transactions. In addition, other significant assets are not considered financial assets including deferred income tax assets, bank premises and equipment and goodwill. Furthermore, the income taxes that would be incurred if the Company were to realize any of the unrealized gains or unrealized losses indicated between the estimated fair values and corresponding carrying values could have a significant effect on the fair value estimates and have not been considered in any of the estimates.

The following summarizes the methods and assumptions used in estimating the fair value of all other financial instruments:

Cash and cash equivalents and accrued interest receivable. The carrying values reported in the consolidated balance sheets approximate fair value.

Held-to-maturity investment securities. The fair value of held-to-maturity investment securities is based on quoted market prices where available. If quoted market prices are not available, the fair value is based on quoted market prices of comparable instruments. The Company classifies its held-to-maturity investment securities as Level 2.

Loans. The fair value of loans held for portfolio uses an exit price concept and reflects discounts the Company believes are consistent with liquidity discounts in the market place. Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial and industrial, real estate construction and development, commercial real estate, one-to-four-family residential real estate, home equity and consumer and installment. The fair value of loans is estimated by discounting the future cash flows, utilizing assumptions for prepayment estimates over the loans’ remaining life and considerations for the current interest rate environment compared to the weighted average rate of the loan portfolio. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those factors a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate. The Company classifies its loans held for portfolio as Level 3.

FRB and FHLB stock. The carrying values reported in the consolidated balance sheets for FRB and FHLB stock, which are carried at cost, represent redemption value and approximate fair value.

Assets of discontinued operations. The carrying values reported in the consolidated balance sheets for assets of discontinued operations approximate fair value. The Company classifies its assets of discontinued operations as Level 2.

Deposits. The fair value of deposits payable on demand with no stated maturity (i.e., noninterest-bearing and interest-bearing demand, and savings and money market accounts) is considered equal to their respective carrying amounts as reported in the consolidated balance sheets. The fair value of demand deposits does not include the benefit that results from the low-cost funding provided by deposit liabilities compared to the cost of borrowing funds in the market. The fair value disclosed for time deposits is estimated utilizing a discounted cash flow calculation that applies interest rates currently being offered on similar deposits to a schedule of aggregated monthly maturities of time deposits. If the estimated fair value is lower than the carrying value, the carrying value is reported as the fair value of time deposits. The Company classifies its time deposits as Level 3.

Other borrowings and accrued interest payable. The carrying values reported in the consolidated balance sheets for variable rate borrowings approximate fair value. The fair value of fixed rate borrowings is based on quoted market prices where available. If quoted market prices are not available, the fair value is based on discounting contractual maturities using an estimate of current market rates for similar instruments. The Company classifies its other borrowings, comprised of securities sold under agreement to repurchase, as Level 1. The carrying values reported in the consolidated balance sheets for accrued interest payable approximate fair value.

Subordinated debentures. The fair value of subordinated debentures is based on quoted market prices of comparable instruments. The Company classifies its subordinated debentures as Level 3.

Liabilities of discontinued operations. The fair value of liabilities of discontinued operations reflects the negotiated purchase price at which the liabilities could be exchanged in a transaction between willing parties, as further described in Note 2 to the consolidated financial statements. The Company classifies its liabilities of discontinued operations as Level 2.

Off-Balance Sheet Financial Instruments. The fair value of commitments to extend credit, standby letters of credit and financial guarantees is based on estimated probable credit losses. The Company classifies its off-balance sheet financial instruments as Level 3.

30

The estimated fair value of the Company’s financial instruments at September 30, 2013 were as follows:

	September 30, 2013
				Estimated Fair Value
	Carrying Value			Level 1	Level 2	Level 3		Total
	(dollars expressed in thousands)
Financial Assets:
Cash and cash equivalents	$	714,155		714,155	—	—		714,155
Investment securities:
Available for sale	1,604,287			1,456	1,602,831	—		1,604,287
Held to maturity	764,304			—	748,478	—		748,478
Loans held for portfolio	2,674,340			—	—	2,478,309		2,478,309
Loans held for sale	28,313			—	28,313	—		28,313
FRB and FHLB stock	27,137			27,137	—	—		27,137
Derivative instruments	113			—	113	—		113
Accrued interest receivable	17,738			17,738	—	—		17,738
Assets of discontinued operations	38,511			—	38,511	—		38,511
Financial Liabilities:
Deposits:
Noninterest-bearing demand	$	1,224,595		1,224,595	—	—		1,224,595
Interest-bearing demand	677,900			677,900	—	—		677,900
Savings and money market	1,852,268			1,852,268	—	—		1,852,268
Time deposits	1,080,659			—	—	1,081,334		1,081,334
Other borrowings	37,077			37,077	—	—		37,077
Derivative instruments	7			—	7	—		7
Accrued interest payable	59,521			59,521	—	—		59,521
Subordinated debentures	354,191			—	—	269,610		269,610
Liabilities of discontinued operations	549,155			—	500,401	—		500,401
Off-Balance Sheet Financial Instruments:
Commitments to extend credit, standby letters of credit and financial guarantees	$	(2,715	)	—	—	(2,715	)	(2,715	)

The estimated fair value of the Company’s financial instruments at December 31, 2012 were as follows:

	December 31, 2012
				Estimated Fair Value
	Carrying Value			Level 1	Level 2	Level 3		Total
	(dollars expressed in thousands)
Financial Assets:
Cash and cash equivalents	$	518,846		518,846	—	—		518,846
Investment securities:
Available for sale	2,043,727			1,022	2,042,705	—		2,043,727
Held to maturity	631,553			—	637,024	—		637,024
Loans held for portfolio	2,773,012			—	—	2,572,256		2,572,256
Loans held for sale	66,133			—	66,133	—		66,133
FRB and FHLB stock	27,329			27,329	—	—		27,329
Derivative instruments	1,619			—	1,619	—		1,619
Accrued interest receivable	18,284			18,284	—	—		18,284
Assets of discontinued operations	6,706			—	6,706	—		6,706
Financial Liabilities:
Deposits:
Noninterest-bearing demand	$	1,327,183		1,327,183	—	—		1,327,183
Interest-bearing demand	1,000,666			1,000,666	—	—		1,000,666
Savings and money market	1,880,271			1,880,271	—	—		1,880,271
Time deposits	1,284,727			—	—	1,286,730		1,286,730
Other borrowings	26,025			26,025	—	—		26,025
Derivative instruments	87			—	87	—		87
Accrued interest payable	48,541			48,541	—	—		48,541
Subordinated debentures	354,133			—	—	254,984		254,984
Liabilities of discontinued operations	155,711			—	155,711	—		155,711
Off-Balance Sheet Financial Instruments:
Commitments to extend credit, standby letters of credit and financial guarantees	$	(2,779	)	—	—	(2,779	)	(2,779	)

31

NOTE13–INCOMETAXES

The realization of the Company’s net deferred tax assets is based on the expectation of future taxable income and the utilization of tax planning strategies. The Company has a full valuation allowance against its net deferred tax assets at September 30, 2013 and December 31, 2012. The deferred tax asset valuation allowance was recorded in accordance with ASC Topic 740, “Income Taxes.” Under ASC Topic 740, the Company is required to assess whether it is “more likely than not” that some portion, or all, of its deferred tax assets will not be realized. Pursuant to ASC Topic 740, concluding that a deferred tax asset valuation allowance is not required is difficult when there is significant evidence which is objective and verifiable, such as the lack of recoverable taxes, excess of reversing deductible differences over reversing taxable differences and cumulative losses in recent years. If, in the future, the Company generates taxable income on a sustained basis, management may conclude the deferred tax asset valuation allowance is no longer required, which would result in the reversal of a portion, or all, of the deferred tax asset valuation allowance, which would be reflected as a benefit for income taxes in the consolidated statements of operations.

A summary of the Company’s deferred tax assets and deferred tax liabilities at September 30, 2013 and December 31, 2012 is as follows:

	September 30, 2013			December 31, 2012
	(dollars expressed in thousands)
Gross deferred tax assets	$	407,292		405,266
Valuation allowance	(391,559		)	(376,224	)
Deferred tax assets, net of valuation allowance	15,733			29,042
Deferred tax liabilities	23,166			36,182
Net deferred tax liabilities	$	(7,433	)	(7,140	)

The Company’s valuation allowance was $391.6 million and $376.2 million at September 30, 2013 and December 31, 2012, respectively. At September 30, 2013 and December 31, 2012, for federal income tax purposes, the Company had net operating loss carryforwards of approximately $612.0 million and $597.7 million, respectively. At September 30, 2013 and December 31, 2012, for state income tax purposes, the Company had net operating loss carryforwards of approximately $836.5 million and $786.4 million, respectively, and a related deferred tax asset of $70.6 million and $65.9 million, respectively.

At September 30, 2013 and December 31, 2012, the Company’s unrecognized tax benefits for uncertain tax positions, excluding interest and penalties, were $858,000 and $1.1 million, respectively. At September 30, 2013 and December 31, 2012, the total amount of unrecognized tax benefits that would affect the provision for income taxes, prior to the consideration of the deferred tax asset valuation allowance, was $566,000 and $740,000, respectively. It is the Company’s policy to separately disclose any interest or penalties arising from the application of federal or state income taxes. Interest related to unrecognized tax benefits is included in interest expense and penalties related to unrecognized tax benefits are included in noninterest expense. At September 30, 2013 and December 31, 2012, interest accrued for unrecognized tax positions was $133,000 and $116,000, respectively. The Company recorded interest expense of $11,000 and $16,000 related to unrecognized tax benefits for the three and nine months endedSeptember 30, 2013, respectively, compared to interest expense of $15,000 and $51,000 for the comparable periods in 2012. There were no penalties for uncertain tax positions accrued at September 30, 2013 and December 31, 2012, nor did the Company recognize any expense for penalties during the three and nine months endedSeptember 30, 2013 and 2012.

The Company continually evaluates the unrecognized tax benefits associated with its uncertain tax positions. It is reasonably possible that the remaining total unrecognized tax benefits as of September 30, 2013 could decrease by an additional $165,000 by December 31, 2013 as a result of the lapse of statutes of limitations or potential settlements with the federal and state taxing authorities, of which the impact to the provision for income taxes, prior to the consideration of the deferred tax asset valuation allowance, is estimated to be approximately $108,000. It is also reasonably possible that this decrease could be substantially offset by new matters arising during the same period.

The Company files consolidated and separate income tax returns in the U.S. federal jurisdiction and in various state jurisdictions. Management of the Company believes the accrual for tax liabilities is adequate for all open audit years based on its assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter. This assessment relies on estimates and assumptions. The Company’s federal income tax returns through 2008 have been examined by the IRS. Years subsequent to 2008 could contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, timing or inclusion of revenue and expenses. The Company has recorded a tax benefit only for those positions that meet the “more likely than not” standard. The Company’s current estimate of the resolution of various state examinations, none of which are in process, is reflected in accrued income taxes; however, final settlement of the examinations or changes in the Company’s estimate may result in future income tax expense or benefit.

The Company is no longer subject to U.S. federal and Illinois income tax examination for the years prior to 2009 and is no longer subject to California, Florida, Missouri and various other state income tax examination by the tax authorities for the years prior to 2008. The Company had a federal tax examination for tax years through 2008, which was closed during 2010, and a California

32

tax examination for the 2004 and 2005 tax years, which was closed during 2008. An Illinois tax examination of the 2007 and 2008 tax years was completed during 2011 with no changes to the returns as originally filed. A California tax examination for the 2005 and 2006 tax years was completed during 2012 with no changes to the amended returns as filed. A Texas tax examination for the 2007 and 2008 tax years was completed during 2013, which resulted in minor changes to the returns as originally filed. While the statute of limitations for the 2008 and 2009 tax years has expired for the majority of the states in which the Company is subject to income tax, the Company generated net operating loss carryforwards in 2008 and 2009 which, if realized, are subject to examination in order to validate the net operating loss carryforward. Thus, while closed, the 2008 and 2009 tax years for these states is still subject to examination. The statute of limitations will expire for 2008 and 2009 when the statute of limitations expires for the year the net operating loss carryforward is realized.

NOTE14–EARNINGS(LOSS)PERCOMMONSHARE

The following is a reconciliation of basic and diluted earnings (loss) per share (EPS) for the three and nine months endedSeptember 30, 2013 and 2012:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars in thousands, except share and per share data)
Basic:
Net income from continuing operations attributable to First Banks, Inc.	$	6,741		10,655		28,312		29,642
Preferred stock dividends declared and undeclared	(5,013		)	(4,753	)	(14,841	)	(14,070	)
Accretion of discount on preferred stock	(919		)	(893	)	(2,725	)	(2,660	)
Net income from continuing operations attributable to common stockholders	809			5,009		10,746		12,912
Net loss from discontinued operations attributable to common stockholders	(881		)	(2,182	)	(6,279	)	(6,763	)
Net (loss) income available to First Banks, Inc. common stockholders	$	(72	)	2,827		4,467		6,149
Weighted average shares of common stock outstanding	23,661			23,661		23,661		23,661
Basic earnings per common share – continuing operations	$	34.19		211.70		454.17		545.72
Basic loss per common share – discontinued operations	$	(37.23	)	(92.22	)	(265.37	)	(285.83	)
Basic (loss) earnings per common share	$	(3.04	)	119.48		188.80		259.89
Diluted:
Net income from continuing operations attributable to common stockholders	$	809		5,009		10,746		12,912
Net loss from discontinued operations attributable to common stockholders	(881		)	(2,182	)	(6,279	)	(6,763	)
Net (loss) income available to First Banks, Inc. common stockholders	(72		)	2,827		4,467		6,149
Effect of dilutive securities – Class A convertible preferred stock	—			—		—		—
Diluted (loss) income available to First Banks, Inc. common stockholders	$	(72	)	2,827		4,467		6,149
Weighted average shares of common stock outstanding	23,661			23,661		23,661		23,661
Effect of dilutive securities – Class A convertible preferred stock	—			—		—		—
Weighted average diluted shares of common stock outstanding	23,661			23,661		23,661		23,661
Diluted earnings per common share – continuing operations	$	34.19		211.70		454.17		545.72
Diluted loss per common share – discontinued operations	$	(37.23	)	(92.22	)	(265.37	)	(285.83	)
Diluted (loss) earnings per common share	$	(3.04	)	119.48		188.80		259.89

NOTE15–BUSINESSSEGMENTRESULTS

The Company’s business segment is First Bank. The reportable business segment is consistent with the management structure of the Company, First Bank and the internal reporting system that monitors performance. First Bank provides similar products and services in its defined geographic areas through its branch network. The products and services offered include a broad range of commercial and personal deposit products, including demand, savings, money market and time deposit accounts. In addition, First Bank markets combined basic services for various customer groups, including packaged accounts for more affluent customers, and sweep accounts, lock-box deposits and cash management products for commercial customers. First Bank also offers consumer and commercial loans. Consumer lending includes residential real estate, home equity and installment lending. Commercial lending includes commercial, financial and agricultural loans, real estate construction and development loans, commercial real estate loans and small business lending. Other financial services include mortgage banking, debit cards, brokerage services, internet banking, remote deposit, mobile banking, ATMs, telephone banking, safe deposit boxes, and trust and private banking services. The revenues

33

generated by First Bank and its subsidiaries consist primarily of interest income generated from the loan and investment security portfolios, service charges and fees generated from deposit products and services, and fees generated by the Company’s mortgage banking and trust and private banking business units. The Company’s products and services are offered to customers primarily within its geographic areas, which include eastern Missouri, southern Illinois, southern and northern California, and Florida’s Bradenton, Palmetto and Longboat Key communities. Certain loan products are available nationwide.

The business segment results are consistent with the Company’s internal reporting system and, in all material respects, with GAAP and practices predominant in the banking industry. The business segment results are summarized as follows:

	First Bank			Corporate, Other and Intercompany Reclassifications				ConsolidatedTotals
	September 30, 2013		December 31, 2012	September 30, 2013		December 31, 2012		September 30, 2013	December 31, 2012
	(dollars expressed in thousands)
Balance sheet information:
Investment securities	$	2,368,591	2,675,280	—		—		2,368,591	2,675,280
Total loans	2,786,930		2,930,747	—		—		2,786,930	2,930,747
FRB and FHLB stock	27,137		27,329	—		—		27,137	27,329
Goodwill	107,267		125,267	—		—		107,267	125,267
Assets of discontinued operations	38,511		6,706	—		—		38,511	6,706
Total assets	6,222,567		6,495,226	14,761		13,900		6,237,328	6,509,126
Deposits	4,837,493		5,495,624	(2,071	)	(2,777	)	4,835,422	5,492,847
Other borrowings	37,077		26,025	—		—		37,077	26,025
Subordinated debentures	—		—	354,191		354,133		354,191	354,133
Liabilities of discontinued operations	549,155		155,711	—		—		549,155	155,711
Stockholders’ equity	746,716		751,252	(477,618	)	(451,293	)	269,098	299,959

	First Bank					Corporate, Other and Intercompany Reclassifications				Consolidated Totals
	Three Months Ended					Three Months Ended				Three Months Ended
	September 30,					September 30,				September 30,
	2013			2012		2013		2012		2013		2012
	(dollars expressed in thousands)
Income statement information:
Interest income	$	42,366		50,018		—		100		42,366		50,118
Interest expense	2,149			3,448		3,803		3,745		5,952		7,193
Net interest income (loss)	40,217			46,570		(3,803	)	(3,645	)	36,414		42,925
Provision for loan losses	—			—		—		—		—		—
Net interest income (loss) after provision for loan losses	40,217			46,570		(3,803	)	(3,645	)	36,414		42,925
Noninterest income	15,414			16,541		115		106		15,529		16,647
Noninterest expense	44,994			48,448		311		391		45,305		48,839
Income (loss) from continuing operations before (benefit) provision for income taxes	10,637			14,663		(3,999	)	(3,930	)	6,638		10,733
(Benefit) provision for income taxes	(64		)	666		(1	)	(804	)	(65	)	(138	)
Net income (loss) from continuing operations, net of tax	10,701			13,997		(3,998	)	(3,126	)	6,703		10,871
Loss from discontinued operations, net of tax	(881		)	(2,182	)	—		—		(881	)	(2,182	)
Net income (loss)	9,820			11,815		(3,998	)	(3,126	)	5,822		8,689
Net (loss) income attributable to noncontrolling interest in subsidiary	(38		)	216		—		—		(38	)	216
Net income (loss) attributable to First Banks, Inc.	$	9,858		11,599		(3,998	)	(3,126	)	5,860		8,473

34

	First Bank					Corporate, Other and Intercompany Reclassifications				Consolidated Totals
	Nine Months Ended					Nine Months Ended				Nine Months Ended
	September 30,					September 30,				September 30,
	2013			2012		2013		2012		2013		2012
	(dollars expressed in thousands)
Income statement information:
Interest income	$	130,084		153,004		—		121		130,084		153,125
Interest expense	6,866			11,853		11,210		11,109		18,076		22,962
Net interest income (loss)	123,218			141,151		(11,210	)	(10,988	)	112,008		130,163
Provision for loan losses	—			2,000		—		—		—		2,000
Net interest income (loss) after provision for loan losses	123,218			139,151		(11,210	)	(10,988	)	112,008		128,163
Noninterest income	49,529			49,239		338		287		49,867		49,526
Noninterest expense	132,882			147,098		613		1,100		133,495		148,198
Income (loss) from continuing operations before (benefit) provision for income taxes	39,865			41,292		(11,485	)	(11,801	)	28,380		29,491
(Benefit) provision for income taxes	(44		)	447		(1	)	(369	)	(45	)	78
Net income (loss) from continuing operations, net of tax	39,909			40,845		(11,484	)	(11,432	)	28,425		29,413
Loss from discontinued operations, net of tax	(6,279		)	(6,763	)	—		—		(6,279	)	(6,763	)
Net income (loss)	33,630			34,082		(11,484	)	(11,432	)	22,146		22,650
Net income (loss) attributable to noncontrolling interest in subsidiary	113			(229	)	—		—		113		(229	)
Net income (loss) attributable to First Banks, Inc.	$	33,517		34,311		(11,484	)	(11,432	)	22,033		22,879

NOTE16–TRANSACTIONSWITHRELATEDPARTIES

First Services, L.P. First Services, L.P. (First Services), a limited partnership indirectly owned by the Company’s Chairman and members of his immediate family, including Mr. Michael Dierberg, Vice Chairman of the Company, provides information technology, item processing and various related services to the Company and First Bank. Fees paid under agreements with First Services were $5.1 million and $15.0 million for the three and nine months ended September 30, 2013, respectively, and $4.9 million and $16.2 million for the comparable periods in 2012. First Services leases information technology and other equipment from First Bank. First Services paid First Bank rental fees for the use of such equipment of $283,000 and $820,000 during the three and nine months ended September 30, 2013, respectively, and $322,000 and $1.0 million for the comparable periods in 2012. In addition, First Services paid $435,000 and $1.3 million for the three and nine months ended September 30, 2013, respectively, and $435,000 and $1.4 million for the comparable periods in 2012, in rental payments to First Bank for occupancy of certain First Bank premises from which business is conducted.

First Services has an Affiliate Services Agreement with the Company and First Bank that relates to various services provided to First Services, including certain human resources, payroll, employee benefit and training services, insurance services and vendor payment processing services. Fees accrued under the Affiliate Services Agreement by First Services were $46,000 and $137,000 for the three and nine months ended September 30, 2013, respectively, and $44,000 and $133,000 for the comparable periods in 2012.

First Brokerage America, L.L.C. First Brokerage America, L.L.C. (First Brokerage), a limited liability company indirectly owned by the Company’s Chairman and members of his immediate family, including Mr. Michael Dierberg, Vice Chairman of the Company, received$943,000 and $3.4 million for the three and nine months ended September 30, 2013, respectively, and $914,000 and $3.3 million for the comparable periods in 2012, in gross commissions paid by unaffiliated third-party companies. The commissions received primarily resulted from sales of annuities, securities and other insurance products to customers of First Bank. First Brokerage paid $98,000 and $343,000 for the three and nine months ended September 30, 2013, respectively, and $100,000 and $325,000 for the comparable periods in 2012, to First Bank in rental payments for occupancy of certain First Bank premises from which brokerage business is conducted.

Dierbergs Markets, Inc. First Bank leases certain of its in-store branch offices and automated teller machine (ATM) sites from Dierbergs Markets, Inc., a grocery store chain headquartered in St. Louis, Missouri that is owned and operated by the brother of the Company’s Chairman and members of his immediate family. Total rent expense incurred by First Bank under the lease obligation contracts was $124,000 and $368,000 for the three and nine months ended September 30, 2013, respectively, and $129,000 and $373,000 for the comparable periods in 2012.

First Capital America, Inc. / FB Holdings, LLC. The Company formed FB Holdings, a limited liability company organized in the state of Missouri, in May 2008. FB Holdings operates as a majority-owned subsidiary of First Bank and was formed for the primary purpose of holding and managing certain nonperforming loans and assets to allow the liquidation of such assets at a time that was more economically advantageous to First Bank and to permit an efficient vehicle for the investment of additional capital

35

by the Company’s sole owner of its Class A and Class B preferred stock. First Bank contributed cash of $9.0 million and nonperforming loans and assets with a fair value of approximately $133.3 million and FCA contributed cash of $125.0 million to FB Holdings during 2008. As a result, First Bank owned 53.23% and FCA owned the remaining 46.77% of FB Holdings as of September 30, 2013. The contribution of cash by FCA is reflected as a component of stockholders’ equity in the consolidated balance sheets and, consequently, increased the Company’s and First Bank’s regulatory capital ratios under then-existing regulatory guidelines, subject to certain limitations.

FB Holdings receives various services provided by First Bank, including loan servicing and special assets services as well as various other financial, legal, human resources and property management services. Fees paid under the agreement by FB Holdings to First Bank were $3,000 and $19,000 for the three and nine months ended September 30, 2013, respectively, and $27,000 and $105,000 for the comparable periods in 2012.

Investors of America Limited Partnership. On March 20, 2013, the Company entered into a $5.0 million Credit Agreement with Investors of America, LP, as further described in Note 8 to the consolidated financial statements. Investors of America, LP is a Nevada limited partnership that was created by and for the benefit of the Company’s Chairman and members of his immediate family. There have been no balances outstanding under the Credit Agreement since its inception.

Loans to Directors and/or their Affiliates. First Bank has had in the past, and may have in the future, loan transactions in the ordinary course of business with its directors and/or their affiliates. These loan transactions have been made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unaffiliated persons and did not involve more than the normal risk of collectability or present other unfavorable features. Loans to directors, their affiliates and executive officers of the Company were $14.8 million and $9.1 million at September 30, 2013 and December 31, 2012, respectively. First Bank does not extend credit to its officers or to officers of the Company, except extensions of credit secured by mortgages on personal residences, loans to purchase automobiles, personal credit card accounts and deposit account overdraft protection under a plan whereby a credit limit has been established in accordance with First Bank’s standard credit criteria.

Depositary Accounts of Directors and/or their Affiliates. Certain directors and/or their affiliates maintain funds on deposit with First Bank in the ordinary course of business. These deposit transactions include demand, savings and time accounts, and have been established on the same terms, including interest rates, as those prevailing at the time for comparable transactions with unaffiliated persons.

NOTE17–CONTINGENTLIABILITIES

In the ordinary course of business, the Company and its subsidiaries become involved in legal proceedings, including litigation arising out of the Company’s efforts to collect outstanding loans. It is not uncommon for collection efforts to lead to so-called “lender liability” suits in which borrowers may assert various claims against the Company. From time to time, the Company is party to other legal matters arising in the normal course of business. While some matters pending against the Company specify damages claimed by plaintiffs, others do not seek a specified amount of damages or are at very early stages of the legal process. The Company records a loss accrual for all legal matters for which it deems a loss is probable and can be reasonably estimated. Management, after consultation with legal counsel, believes the ultimate resolution of these existing proceedings is not reasonably likely to have a material adverse effect on the business, financial condition or results of operations of the Company and/or its subsidiaries and the range of possible additional loss in excess of amounts accrued is not material.

The Company and First Bank have entered into agreements with the FRB and MDOF, as further described in Note 11 to the consolidated financial statements. The informal agreement with the MDOF was terminated effective September 11, 2013.

36

ITEM2–MANAGEMENT’SDISCUSSION ANDANALYSIS OFFINANCIALCONDITION ANDRESULTS OFOPERATIONS

Forward-Looking Statements and Factors that Could Affect Future Results

The discussion set forth in Management’s Discussion and Analysis of Financial Condition and Results of Operations contains certain forward-looking statements with respect to our financial condition, results of operations and business. Generally, forward-looking statements may be identified through the use of words such as: “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning or future or conditional terms such as: “will,” “would,” “should,” “could,” “may,” “likely,” “probably,” or “possibly.” Examples of forward-looking statements include, but are not limited to, estimates or projections with respect to our future financial condition and earnings including the ability of the Company to remain profitable, and expected or anticipated revenues with respect to our results of operations and our business. These forward-looking statements are subject to certain risks and uncertainties, not all of which can be predicted or anticipated. Factors that may cause our actual results to differ materially from those contemplated by the forward-looking statements herein include market conditions as well as conditions affecting the banking industry generally and factors having a specific impact on us, including but not limited to, the following factors whose order is not indicative of likelihood or significance of impact:

• Our ability to raise sufficient capital, absent the successful completion of all or a significant portion of our Capital Plan, as further discussed under “Overview – Capital Plan;”

• Our ability to maintain capital at levels necessary or desirable to support our operations;

• The risks associated with implementing our business strategy, including our ability to preserve and access sufficient capital to continue to execute our strategy;

• Regulatory actions that impact First Banks, Inc. and First Bank, including the regulatory agreements entered into among First Banks, Inc., First Bank, and the Federal Reserve Bank of St. Louis, as further discussed under “Overview – Regulatory Agreements;”

• Our ability to comply with the terms of an agreement with our regulators pursuant to which we have agreed to take certain corrective actions to improve our financial condition and results of operations;

• The effects of and changes in trade and monetary and fiscal policies and laws, including, but not limited to, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the interest rate policies of the Federal Open Market Committee of the Federal Reserve Board of Governors and the U.S. Treasury’s Capital Purchase Program and Troubled Asset Relief Program authorized by the Emergency Economic Stabilization Act of 2008;

• The risks associated with the high concentration of commercial real estate loans in our loan portfolio;

• The decline in commercial and residential real estate sales volume and the likely potential for continuing lack of liquidity in the real estate markets;

• The uncertainties in estimating the fair value of developed real estate and undeveloped land in light of reduced market demand for such assets and a general lack of liquidity in the real estate markets;

• Negative developments and disruptions in the credit and lending markets, including the impact of the adverse credit crisis on our business and on the businesses of our customers as well as other banks and lending institutions with which we have commercial relationships;

• The appropriateness of our allowance for loan losses to absorb the amount of actual losses inherent in our existing loan portfolio;

• The accuracy of assumptions underlying the establishment of our allowance for loan losses and the estimation of values of collateral or cash flow projections and the potential resulting impact on the carrying value of various financial assets and liabilities;

• Credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio including certain large individual loans;

• Possible changes in the creditworthiness of customers and the possible impairment of collectability of loans;

• Liquidity risks;

• Inaccessibility of funding sources on the same or similar terms on which we have historically relied if we are unable to maintain sufficient capital ratios;

• Implementation of the Basel III regulatory capital reforms and changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act will include significant changes to bank capital, leverage and liquidity requirements, as further discussed under “Overview – Basel III Regulatory Capital Reforms;”

• The ability to successfully acquire low cost deposits or alternative funding;

• The effects of increased Federal Deposit Insurance Corporation deposit insurance assessments;

• The effects of the expiration of unlimited Federal Deposit Insurance Corporation deposit insurance on noninterest-bearing transaction accounts over the $250,000 maximum available to depositors;

• Changes in consumer spending, borrowings and savings habits;

• The ability of First Bank to pay dividends to its parent holding company;

37

• Our ability to pay cash dividends on our preferred stock and interest on our junior subordinated debentures;

• High unemployment and the resulting impact on our customers’ savings rates and their ability to service debt obligations;

• Possible changes in interest rates may increase our funding costs and reduce earning asset yields, thus reducing our margins;

• The impact of possible future goodwill and other material impairment charges;

• The ability to attract and retain senior management experienced in the banking and financial services industry;

• Changes in the economic environment, competition, or other factors that may influence loan demand, deposit flows, the quality of our loan portfolio and loan and deposit pricing;

• The impact on our financial condition of unknown and/or unforeseen liabilities arising from legal or administrative proceedings;

• The threat of future terrorist activities, existing and potential wars and/or military actions related thereto, and domestic responses to terrorism or threats of terrorism;

• Possible changes in general economic and business conditions in the United States in general and particularly in the communities and market segments we serve;

• Volatility and disruption in national and international financial markets;

• Government intervention in the U.S. financial system;

• The impact of laws and regulations applicable to us and changes therein;

• The impact of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters;

• The impact of litigation generally and specifically arising out of our efforts to collect outstanding customer loans;

• Competitive conditions in the markets in which we conduct our operations, including competition from banking and non-banking companies with substantially greater resources than us, some of which may offer and develop products and services not offered by us;

• Our ability to control the composition of our loan portfolio without adversely affecting interest income and credit default risk;

• The geographic dispersion of our offices;

• The impact our hedging activities may have on our operating results;

• The highly regulated environment in which we operate; and

• Our ability to respond to changes in technology or an interruption or breach in security of our information systems.

Actual events or our actual future results may differ materially from any forward-looking statement due to these and other risks, uncertainties and significant factors. For a discussion of these and other risk factors that may impact these forward-looking statements, please refer to our 2012 Annual Report on Form 10-K, as filed with the United States Securities and Exchange Commission on March 26, 2013 and Item 1A of Part II of this Report. We wish to caution readers of this Quarterly Report on Form 10-Q that the foregoing list of important factors may not be all-inclusive and specifically decline to undertake any obligation to publicly revise any forward-looking statements that have been made to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. We do not have a duty to and will not update these forward-looking statements. Readers of this Quarterly Report on Form 10-Q should therefore consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on these statements.

38

OVERVIEW AND RECENT DEVELOPMENTS

We, or the Company, are a registered bank holding company incorporated in Missouri in 1978 and headquartered in St. Louis, Missouri. We operate through our wholly owned subsidiary bank holding company, The San Francisco Company, or SFC, headquartered in St. Louis, Missouri, and SFC’s wholly owned subsidiary bank, First Bank, also headquartered in St. Louis, Missouri. First Bank operates through its branch banking offices and subsidiaries: First Bank Business Capital, Inc.; FB Holdings, LLC, or FB Holdings; Small Business Loan Source LLC, or SBLS LLC; ILSIS, Inc.; FBIN, Inc.; SBRHC, Inc.; HVIIHC, Inc.; FBSA Missouri, Inc.; FBSA California, Inc.; NT Resolution Corporation; and LC Resolution Corporation. First Bank’s subsidiaries are wholly owned at September 30, 2013 except for FB Holdings, which is 53.23% owned by First Bank and 46.77% owned by First Capital America, Inc., or FCA, a corporation owned and operated by the Company’s Chairman of the Board and members of his immediate family, including Mr. Michael Dierberg, Vice Chairman of the Company, as further described in Note 16 to our consolidated financial statements.

First Bank currently operates 130 branch banking offices in California, Florida, Illinois and Missouri. Through First Bank, we offer a broad range of financial services, including commercial and personal deposit products, commercial and consumer lending, and many other financial products and services.

Discontinued Operations. The assets and liabilities associated with the transactions described (and defined) below were previously reported in the First Bank segment and were sold or will be sold as part of our Capital Optimization Plan, or Capital Plan. We have applied discontinued operations accounting in accordance with Accounting Standards Codification™, or ASC, Topic 205-20, “Presentation of Financial Statements - Discontinued Operations,” to the assets and liabilities associated with our Association Bank Services line of business as of September 30, 2013, to the assets and liabilities associated with our Northern Florida Region as of December 31, 2012, and to the operations of our Association Bank Services line of business and our Northern Florida Region for the three and nine months ended September 30, 2013 and 2012, as applicable. All financial information in this Quarterly Report on Form 10-Q is reported on a continuing operations basis, unless otherwise noted. See Note 2 to our consolidated financial statements for further discussion regarding discontinued operations.

Association Bank Services. On May 13, 2013, First Bank entered into a Purchase and Assumption Agreement that provides for the sale of certain assets and the transfer of certain liabilities, primarily deposits, of First Bank's Association Bank Services, or ABS, line of business, to Union Bank, N.A., or Union Bank, headquartered in San Francisco, California, as further described in Note 2 to our consolidated financial statements. ABS, headquartered in Vallejo, California, provides a full range of services to homeowners associations and community management companies. Under the terms of the agreement, Union Bank will assume approximately $549.1 million of deposits and will pay a premium on certain deposit accounts to be acquired in the transaction, which will be determined based on the average amount of certain deposits within ABS for the thirty (30) days prior to the closing date. Union Bank will also acquire certain assets, including loans of approximately $20.4 million at par value. Regulatory approval of the transaction was received on July 15, 2013 and, subject to satisfaction of other customary closing conditions, the transaction is expected to close during the fourth quarter of 2013. The assets and liabilities associated with ABS are reflected in assets and liabilities of discontinued operations in the consolidated balance sheets as of September 30, 2013. First Bank expects to record a gain on the transaction of approximately $26.0 million, after the estimated write-off of goodwill of $18.0 million allocated to the ABS line of business.

Northern Florida Region. On November 21, 2012, we entered into a Branch Purchase and Assumption Agreement that provided for the sale of certain assets and the transfer of certain liabilities associated with eight of our retail branches located in Pinellas County, Florida to HomeBanc National Association, or HomeBanc, headquartered in Lake Mary, Florida. The transaction was completed on April 19, 2013, as further described in Note 2 to our consolidated financial statements. Under the terms of the agreement, HomeBanc assumed $120.3 million of deposits, purchased the premises and equipment, and assumed the leases associated with these eight retail branches. The transaction resulted in a gain of $408,000, after the write-off of goodwill of $700,000 allocated to the Northern Florida Region, during the second quarter of 2013.

Furthermore, on April 5, 2013, we closed our remaining three retail branches in Northern Florida, as further described in Note 2 to our consolidated financial statements. The closure of these three retail branches resulted in expense of $2.3 million during the second quarter of 2013 attributable to continuing obligations under facility leasing arrangements.

The eight branches sold and the three branches closed are collectively defined as the Northern Florida Region. The assets and liabilities associated with the Northern Florida Region were reflected in assets and liabilities of discontinued operations in the consolidated balance sheets as of December 31, 2012.

Sale of Class C Fixed Rate Cumulative Perpetual Preferred Stock and Class D Fixed Rate Cumulative Perpetual Preferred Stock by the United States Department of the Treasury. During the third quarter of 2013, the United States Department of the Treasury, or U.S. Treasury, completed two auctions that resulted in the sale of our Class C Fixed Rate Cumulative Perpetual Preferred Stock, or Class C Preferred Stock, and our Class D Fixed Rate Cumulative Perpetual Preferred Stock, or Class D Preferred Stock,issued in conjunction with the U.S. Treasury's Troubled Asset Relief Program's Capital Purchase Program, to unaffiliated

39

third party investors. On August 12, 2013, the U.S. Treasury completed its first auction, selling approximately 96% of our Class C Preferred Stock and all of our Class D Preferred Stock. On September 25, 2013, the U.S. Treasury completed its second auction of the remaining 4% of our Class C Preferred Stock. The Company did not receive any proceeds from the sale and the sale did not have any effect on the terms of the outstanding Class C Preferred Stock and Class D Preferred Stock, including the Company's obligation to satisfy accrued and unpaid dividends prior to the payment of any dividend or other distribution to holders of junior or parity stock (including the Company's common stock, Class A Convertible Adjustable Rate Preferred Stock and Class B Non-Convertible Adjustable Rate Preferred Stock), and an increase in the dividend rate on our Class C Preferred Stock from 5% to 9%, commencing with the dividend payment date of February 15, 2014. Furthermore, the sale of the Class C Preferred Stock and the Class D Preferred Stock did not have any effect on the Company's regulatory capital, financial condition or results of operations.

Final Basel III Capital Rule. On July 3, 2013, the Board of Governors of the Federal Reserve System, or Federal Reserve, adopted a final rule, Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective Action, Standardized Approach for Risk-weighted Assets, Market Discipline and Disclosure Requirements, Advanced Approaches Risk-Based Capital Rule, and Market Risk Capital Rule.” This final rule incorporates certain revisions to the Basel capital framework, including Basel III and other elements. The final rule increases risk-based capital requirements and makes selected changes to the calculation of risk-weighted assets. The final rule:

• Includes a new minimum common equity Tier 1 capital ratio of 4.5% of risk-weighted assets and raises the minimum Tier 1 capital ratio from 4.0% to 6.0% of risk-weighted assets;

• Requires institutions to maintain a capital conservation buffer composed of common equity Tier 1 capital of 2.5% above the minimum risk-based capital requirements in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers;

• Implements new constraints on the inclusion of minority interests, mortgage servicing assets, deferred tax assets and certain investments in the capital of unconsolidated financial institutions in Tier 1 capital;

• Increases risk-weightings for past-due loans, certain commercial real estate loans and some equity exposures;

• Requires trust preferred securities and cumulative perpetual preferred stock to be phased out of Tier 1 capital for banks with assets greater than $15.0 billion as of December 31, 2009; and

• Allows non-advanced banking organizations, such as us, a one-time option to filter certain accumulated other comprehensive income components, such as unrealized gains and losses on available-for-sale investment securities, out of regulatory capital.

The final rule becomes effective for us on January 1, 2015. We are evaluating the impact the final Basel III capital rule may have on our regulatory capital levels and capital planning strategies.

Regulatory Agreements. On March 24, 2010, the Company, SFC and First Bank entered into a Written Agreement, or Agreement, with the Federal Reserve Bank of St. Louis, or FRB, requiring the Company and First Bank to take certain steps intended to improve their overall financial condition. Pursuant to the Agreement, the Company prepared and filed with the FRB a number of specific plans designed to strengthen and/or address the following matters: (i) board oversight over the management and operations of the Company and First Bank; (ii) credit risk management practices; (iii) lending and credit administration policies and procedures; (iv) asset improvement; (v) capital; (vi) earnings and overall financial condition; and (vii) liquidity and funds management.

The Agreement requires, among other things, that the Company and First Bank obtain prior approval from the FRB in order to pay dividends. In addition, the Company must obtain prior approval from the FRB to: (i) take any other form of payment from First Bank representing a reduction in capital of First Bank; (ii) make any distributions of interest, principal or other sums on junior subordinated debentures or trust preferred securities; (iii) incur, increase or guarantee any debt; or (iv) purchase or redeem any shares of the Company's stock. The FRB has complete discretion to grant any such approval and therefore, it is not known whether the FRB will approve any request, including a request to make interest payments on the Company's subordinated debentures associated with its trust preferred securities, at any time in the future. As further described in Note 9 to the consolidated financial statements, the Company will trigger a payment default or penalty on its junior subordinated debentures unless the Company resumes payment of interest and pays all cumulative interest that has been deferred by the respective payment dates in September and October, 2014.

Pursuant to the terms of the Agreement, the Company and First Bank submitted a written plan to the FRB to maintain sufficient capital at the Company, on a consolidated basis, and at First Bank, on a standalone basis. In addition, the Agreement also provides that the Company and First Bank must notify the FRB if the regulatory capital ratios of either entity fall below those set forth in the capital plans that were accepted by the FRB, and specifically if First Bank falls below the criteria for being well capitalized under the regulatory framework for prompt corrective action. The Company must also notify the FRB before appointing any new directors or senior executive officers or changing the responsibilities of any senior executive officer position. The Agreement also requires the Company and First Bank to comply with certain restrictions regarding indemnification and severance payments

40

although First Bank has been notified, as of October 16, 2013, by the FRB that such restriction is no longer applicable to First Bank. The Agreement is specifically enforceable by the FRB in court.

The Company and First Bank must furnish periodic progress reports to the FRB regarding compliance with the Agreement. As of the date of this filing, the Company and First Bank have provided progress reports and other reports, as required under the Agreement. The Company and First Bank have received, and may receive in the future, additional requests from the FRB regarding compliance with the Agreement, which may include, but are not limited to, updates and modifications to the Company's Asset Quality Improvement, Profit Improvement and Capital Plans. Management has responded promptly to any such requests and intends to do so in the future. The Agreement will remain in effect until stayed, modified, terminated or suspended by the FRB.

Prior to entering into the Agreement on March 24, 2010, the Company and First Bank had entered into a memorandum of understanding and an informal agreement, respectively, with the FRB and the State of Missouri Division of Finance, or the MDOF. Each of the agreements were characterized by regulatory authorities as informal actions that were neither published nor made publicly available by the agencies and are used when circumstances warrant a milder form of action than a formal supervisory action, such as a written agreement or cease and desist order. The memorandum of understanding with the FRB was replaced and superseded by the Agreement. The informal agreement with the MDOF, dated September 18, 2008, was terminated effective September 11, 2013.

Under the terms of the prior memorandum of understanding with the FRB, the Company agreed, among other things, to provide certain information to the FRB including, but not limited to, financial performance updates, notice of plans to materially change its fundamental business and notice to issue trust preferred securities or raise additional equity capital. In addition, the Company agreed not to pay any dividends on its common or preferred stock or make any distributions of interest or other sums on its trust preferred securities without the prior approval of the FRB.

First Bank, under its former informal agreement with the MDOF and the FRB, agreed to, among other things, prepare and submit plans and reports to the agencies regarding certain matters including, but not limited to, the performance of First Bank's loan portfolio. In addition, First Bank agreed not to declare or pay any dividends or make certain other payments without the prior consent of the MDOF and the FRB and was required to maintain a Tier 1 capital to total assets ratio of no less than 7.00%. As further described in Note 11 to our consolidated financial statements, First Bank's Tier 1 capital to total assets ratio of 9.20% at December 31, 2012 exceeded the 7.00% minimum level required under the terms of the former informal agreement with the MDOF.

While the Company and First Bank intend to take such actions as may be necessary to comply with the requirements of the Agreement with the FRB, there can be no assurance that the Company and First Bank will be able to comply fully with the requirements of the Agreement, that compliance with the Agreement will not be more time consuming or more expensive than anticipated, that compliance with the Agreement will enable the Company and First Bank to maintain profitable operations, or that efforts to comply with the Agreement will not have adverse effects on the operations and financial condition of the Company or First Bank. If the Company or First Bank is unable to comply with the terms of the Agreement, the Company and First Bank could become subject to various requirements limiting our ability to develop new business lines, mandating additional capital, and/or requiring the sale of certain assets and liabilities. Failure of the Company or First Bank to meet these conditions could lead to further enforcement action by the regulatory agencies. The terms of any such additional regulatory actions, orders or agreements could have a materially adverse effect on our business, financial condition or results of operations.

41

Capital Plan. We have been working since the beginning of 2008 to strengthen our capital ratios and improve our financial performance. Additionally, on August 10, 2009, we announced the adoption of our Capital Optimization Plan, designed to improve our capital ratios and financial performance through certain divestiture activities, asset reductions and expense reductions. We adopted our Capital Plan in order to, among other things, preserve our regulatory capital. A summary of the primary initiatives completed as of September 30, 2013 is shown in the table below. See Note 2 to our consolidated financial statements for a discussion of initiatives associated with our Capital Plan that were completed, or are in the process of completion, during the nine months ended September 30, 2013 and 2012.

	Gain (Loss) on Sale			Decrease in Intangible Assets	Decrease in Risk-Weighted Assets	Total Regulatory Capital Benefit(1)
	(dollars expressed in thousands)
Sale of Northern Florida Region	$	408		700	3,400	1,400
Reduction in other risk-weighted assets	—			—	58,800	5,100
Total 2013 capital initiatives	$	408		700	62,200	6,500
Reduction in other risk-weighted assets	$	—		—	287,700	25,200
Total 2012 capital initiatives	$	—		—	287,700	25,200
Sale of remaining Northern Illinois Region	$	425		1,558	33,800	4,900
Sale of Edwardsville branch	263			500	1,400	900
Reduction in other risk-weighted assets	—			—	877,900	76,800
Total 2011 capital initiatives	$	688		2,058	913,100	82,600
Partial sale of Northern Illinois Region	$	6,355		9,683	141,800	28,500
Sale of Texas Region	4,984			19,962	116,300	35,100
Sale of Missouri Valley Partners, Inc.	(156		)	—	800	(100	)
Sale of Chicago Region	8,414			26,273	342,600	64,700
Sale of Lawrenceville branch	168			1,000	11,400	2,200
Reduction in other risk-weighted assets	—			—	2,111,400	184,700
Total 2010 capital initiatives	$	19,765		56,918	2,724,300	315,100
Sale of WIUS, Inc. loans	$	(13,077	)	19,982	146,700	19,700
Sale of restaurant franchise loans	(1,149		)	—	64,400	4,500
Sale of asset-based lending loans	(6,147		)	—	119,300	4,300
Sale of Springfield branch	309			1,000	900	1,400
Sale of Adrian N. Baker & Company	120			13,013	1,300	13,200
Reduction in other risk-weighted assets	—			—	1,580,400	138,300
Total 2009 capital initiatives	$	(19,944	)	33,995	1,913,000	181,400
Total completed capital initiatives	$	917		93,671	5,900,300	610,800

____________________

(1) Calculated as the sum of the gain (loss) on sale plus the reduction in intangible assets plus 8.75% of the reduction in risk-weighted assets.

In addition to the action items identified above with respect to our Capital Plan, we are also focused on the following actions which, if consummated, would further improve our regulatory capital ratios and/or result in a reduction of our risk-weighted assets:

• Successful implementation of the action items contained within our Performance Enhancement Plan;

• Reduction in the overall level of our nonperforming assets and potential problem loans;

• Sale, merger or closure of individual branches or selected branch groupings; and

• Exploration of possible capital planning strategies to increase the overall level of Tier 1 regulatory capital at our holding company.

We believe the successful completion of our Capital Plan would substantially improve our capital position. However, no assurance can be made that we will be able to successfully complete all, or any portion, of our Capital Plan, or that our Capital Plan will not be materially modified in the future. Our decision to implement the Capital Plan reflects the adverse effect that the severe downturn in the commercial and residential real estate markets has had on our financial condition and results of operations. If we are not able to successfully complete substantially all of our Capital Plan, our business, financial condition, including regulatory capital ratios, and results of operations may be materially and adversely affected and our ability to withstand continued adverse economic uncertainty could be threatened.

42

RESULTS OFOPERATIONS

Overview. We recorded net income, including discontinued operations, of $5.9 million and $22.0 million for the three and nine months ended September 30, 2013, respectively, compared to $8.5 million and $22.9 million for the comparable periods in 2012. Our results of operations reflect the following:

• Net interest income of $36.4 million and $112.0 million for the three and nine months ended September 30, 2013, respectively, compared to $42.9 million and $130.2 million for the comparable periods in 2012, which contributed to a decline in our net interest margin to 2.49% and 2.56% for the three and nine months ended September 30, 2013, respectively, compared to 2.80% and 2.84% for the comparable periods in 2012;

• A provision for loan losses of zero for the three and nine months ended September 30, 2013, compared to a provision for loan losses of zero and $2.0 million for the three and nine months ended September 30, 2012;

• Noninterest income of $15.5 million and $49.9 million for the three and nine months ended September 30, 2013, respectively, compared to $16.6 million and $49.5 million for the comparable periods in 2012;

• Noninterest expense of $45.3 million and $133.5 million for the three and nine months ended September 30, 2013, respectively, compared to $48.8 million and $148.2 million for the comparable periods in 2012;

• A benefit for income taxes of $65,000 and $45,000 for the three and nine months ended September 30, 2013, compared to a benefit for income taxes of $138,000 and a provision for income taxes of $78,000 for the comparable periods in 2012;

• A net loss from discontinued operations, net of tax, of $881,000 and $6.3 million for the three and nine months ended September 30, 2013, respectively, compared to a net loss from discontinued operations, net of tax, of $2.2 million and $6.8 million for the comparable periods in 2012; and

• A net loss attributable to noncontrolling interest in subsidiary of $38,000 and net income attributable to noncontrolling interest in subsidiary of $113,000 for the three and nine months ended September 30, 2013, respectively, compared to net income attributable to noncontrolling interest in subsidiary of $216,000 and a net loss attributable to noncontrolling interest in subsidiary of $229,000 for the comparable periods in 2012.

43

Net Interest Income and Average Balance Sheets. The primary source of our income is net interest income. The following table sets forth, on a tax-equivalent basis, certain information on a continuing operations basis relating to our average balance sheets, and reflects the average yield earned on our interest-earning assets, the average cost of our interest-bearing liabilities and the resulting net interest income for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30,										Nine Months Ended September 30,
	2013					2012					2013						2012
	Average Balance		Interest Income/ Expense	Yield/ Rate		Average Balance		Interest Income/ Expense	Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense	Yield/ Rate
	(dollars expressed in thousands)
ASSETS
Interest-earning assets:
Loans (1)(2)(3)	$	2,807,856	28,871	4.08	%	$	2,978,616	34,470	4.60	%	$	2,818,916	88,955		4.22	%	$	3,077,694	108,329	4.70	%
Investment securities (3)	2,428,050		12,892	2.11		2,895,814		15,290	2.10		2,575,119		39,526		2.05		2,723,204		43,560	2.14
FRB and FHLB stock	27,382		303	4.39		26,518		290	4.35		27,484		913		4.44		26,475		850	4.29
Short-term investments	539,438		346	0.25		214,763		137	0.25		431,143		831		0.26		314,203		596	0.25
Total interest-earning assets	5,802,726		42,412	2.90		6,115,711		50,187	3.26		5,852,662		130,225		2.97		6,141,576		153,335	3.33
Nonearning assets	391,396					407,809					406,253						409,434
Assets of discontinued operations	39,467					48,315					42,486						50,172
Total assets	$	6,233,589				$	6,571,835				$	6,301,401					$	6,601,182
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand	$	671,924	83	0.05	%	$	628,292	107	0.07	%	$	653,154	233		0.05	%	$	615,710	320	0.07	%
Savings and money market	1,862,525		675	0.14		1,903,048		811	0.17		1,854,886		1,942		0.14		1,929,595		2,811	0.19
Time deposits of $100 or more	376,061		529	0.56		467,666		935	0.80		395,980		1,758		0.59		493,353		3,196	0.87
Other time deposits	697,117		860	0.49		845,637		1,577	0.74		730,303		2,941		0.54		885,931		5,462	0.82
Total interest-bearing deposits	3,607,627		2,147	0.24		3,844,643		3,430	0.35		3,634,323		6,874		0.25		3,924,589		11,789	0.40
Other borrowings	35,758		1	0.01		32,641		16	0.20		32,246		(11	)	(0.05	)	36,025		57	0.21
Subordinated debentures	354,181		3,804	4.26		354,105		3,747	4.21		354,162		11,213		4.23		354,086		11,116	4.19
Total interest-bearing liabilities	3,997,566		5,952	0.59		4,231,389		7,193	0.68		4,020,731		18,076		0.60		4,314,700		22,962	0.71
Noninterest-bearing liabilities:
Demand deposits	1,221,751					1,178,864					1,191,794						1,156,038
Other liabilities	188,649					165,037					188,719						155,262
Liabilities of discontinued operations	558,532					705,586					614,684						696,040
Total liabilities	5,966,498					6,280,876					6,015,928						6,322,040
Stockholders’ equity	267,091					290,959					285,473						279,142
Total liabilities and stockholders’ equity	$	6,233,589				$	6,571,835				$	6,301,401					$	6,601,182
Net interest income			36,460					42,994					112,149						130,373
Interest rate spread				2.31					2.58						2.37					2.62
Net interest margin (4)				2.49	%				2.80	%					2.56	%				2.84	%

____________________

(1) For purposes of these computations, nonaccrual loans are included in the average loan amounts.

(2) Interest income on loans includes loan fees.

(3) Information is presented on a tax-equivalent basis assuming a tax rate of 35%. The tax-equivalent adjustments were $46,000 and $141,000 for the three and nine months ended September 30, 2013, respectively, and $69,000 and $210,000 for the comparable periods in 2012.

(4) Net interest margin is the ratio of net interest income (expressed on a tax-equivalent basis) to average interest-earning assets.

Our balance sheet is presently asset sensitive, and as such, our net interest margin has been negatively impacted by the low interest rate environment. Our asset-sensitive position, coupled with the level of our nonperforming assets, the increased level of average lower-yielding short-term investments and investment securities, the lower level of average loans and the additional interest expense accrued on our regularly scheduled deferred interest payments on our junior subordinated debentures has negatively impacted our net interest income and is expected to continue to impact the level of our net interest income in the future. We continue

44

our efforts to reduce nonperforming and potential problem loans and re-define our overall strategy and business plans with respect to our loan portfolio in light of ongoing changes in market conditions in our markets, focusing on loan growth initiatives to offset the impact of the decrease in problem loans and other loan relationships.

Net interest income, expressed on a tax-equivalent basis, decreased to $36.5 million and $112.1 million for the three and nine months ended September 30, 2013, respectively, compared to $43.0 million and $130.4 million for the comparable periods in 2012. Our net interest margin decreased31 and 28 basis points to 2.49% and 2.56% for the three and nine months ended September 30, 2013, respectively, from 2.80% and 2.84% for the comparable periods in 2012. We attribute the decrease in our net interest margin and net interest income for the three and nine months ended September 30, 2013, as compared to the comparable periods in 2012, to a lower average balance of interest-earning assets, a change in the mix of our interest-earning assets, which has shifted from loans and investment securities to low-yielding cash and cash equivalents in anticipation of the expected sale of our ABS line of business in the fourth quarter of 2013, and a decrease in the average yield on loans, partially offset by a decrease in interest-bearing liabilities and the average rate paid on our interest-bearing liabilities. The average yield earned on our interest-earning assets decreased 36 basis points to 2.90% and 2.97% for the three and nine months ended September 30, 2013, respectively, compared to 3.26% and 3.33% for the comparable periods in 2012, while the average rate paid on our interest-bearing liabilities decreased nine and 11 basis points to 0.59% and 0.60% for the three and nine months ended September 30, 2013, respectively, compared to 0.68% and 0.71% for the comparable periods in 2012. Average interest-earning assets decreased $313.0 million and $288.9 million to $5.80 billion and $5.85 billion for the three and nine months ended September 30, 2013, respectively, compared to $6.12 billion and $6.14 billion for the comparable periods in 2012. Average interest-bearing liabilities decreased $233.8 million and $294.0 million to $4.00 billion and $4.02 billion for the three and nine months ended September 30, 2013, respectively, compared to $4.23 billion and $4.31 billion for the comparable periods in 2012. Our net interest margin is expected to continue to remain at lower levels until loan balances stabilize and consistent loan origination returns within our core markets.

Interest income on our loan portfolio, expressed on a tax-equivalent basis, decreased $5.6 million and $19.4 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. Average loans decreased $170.8 million and $258.8 million to $2.81 billion and $2.82 billion for the three and nine months ended September 30, 2013, respectively, from $2.98 billion and $3.08 billion for the comparable periods in 2012. The decrease in average loans primarily reflects a substantial level of loan payoffs and principal payments and the exit of certain of our problem credit relationships. The yield on our loan portfolio decreased 52 and 48 basis points to 4.08% and 4.22% for the three and nine months ended September 30, 2013, respectively, from 4.60% and 4.70% for the comparable periods in 2012. The yield on our loan portfolio continues to be adversely impacted by the lower levels of prime and LIBOR interest rates, as a significant portion of our loan portfolio is priced to these indices. We experienced a significant increase in new loan production volumes during the first nine months of 2013, as compared to the first nine months of 2012, and we continue to focus on loan growth initiatives.

Interest income on our investment securities, expressed on a tax-equivalent basis, decreased $2.4 million and $4.0 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. Average investment securities decreased $467.8 million and $148.1 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. The decrease in our average investment securities primarily reflects the reinvestment of proceeds from sales and maturities of certain investment securities into cash and cash equivalents in anticipation of the expected sale of our ABS line of business during the fourth quarter of 2013. The yield earned on our investment securities portfolio increased one basis point to 2.11% for the three months ended September 30, 2013, as compared to 2.10% for the comparable period in 2012, and decreased nine basis points to 2.05% for the nine months ended September 30, 2013, as compared to 2.14% for the comparable period in 2012.

Interest income on our short-term investments increased $209,000 and $235,000 for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. Average short-term investments increased $324.7 million and $116.9 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. The increase in average short-term investments reflects the utilization of funds available from the decline in our loan portfolio and sales and maturities of investment securities to increase our liquidity position in anticipation of the expected sale of our ABS line of business during the fourth quarter of 2013, partially offset by a decline in average deposit balances. The yield on our short-term investments was 0.25% and 0.26% for the three and nine months ended September 30, 2013, respectively, as compared to 0.25% for the comparable periods in 2012, reflecting the investment of the majority of funds in our short-term investments in our correspondent bank account with the FRB, which currently earns 0.25%. The high level of short-term investments, while necessary to complete certain transactions associated with our Capital Plan and to maintain significant balance sheet liquidity in light of uncertain economic conditions, has negatively impacted our net interest margin and will negatively impact our net interest margin in future periods until we complete the expected sale of our ABS line of business during the fourth quarter of 2013, in addition to reducing our short-term investments through deployment of such funds into other higher-yielding assets.

Interest expense on our interest-bearing deposits decreased $1.3 million and $4.9 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. Average total deposits decreased $194.1 million

45

and $254.5 million to $4.83 billion for the three and nine months ended September 30, 2013, from $5.02 billion and $5.08 billion for the comparable periods in 2012, respectively. Average interest-bearing deposits decreased $237.0 million and $290.3 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. The decrease in average interest-bearing deposits primarily reflects anticipated reductions of higher rate certificates of deposit and promotional money market deposits, partially offset by organic growth in demand deposits through deposit development programs, including marketing campaigns and enhanced product and service offerings. The mix in our deposit portfolio volumes for the three and nine months ended September 30, 2013, as compared to the comparable periods in 2012, primarily reflects a shift from time deposits and savings and money market deposits to interest-bearing and noninterest-bearing demand deposits. Decreases in our average time deposits, and savings and money market deposits of $253.0 million and $74.7 million, respectively, for the nine months ended September 30, 2013, as compared to the comparable period in 2012, were partially offset by increases in average interest-bearing and noninterest-bearing demand deposits of $37.4 million and $35.8 million, respectively, for the nine months ended September 30, 2013, as compared to the comparable period in 2012. The aggregate weighted average rate paid on our interest-bearing deposit portfolio decreased 11 and 15 basis points to 0.24% and 0.25% for the three and nine months ended September 30, 2013, respectively, from 0.35% and 0.40% for the comparable periods in 2012, reflecting the re-pricing of certificate of deposit accounts to current market interest rates upon maturity and our efforts to reduce deposit costs across our deposit portfolio. The weighted average rate paid on our time deposit portfolio declined to 0.51% and 0.56% for the three and nine months ended September 30, 2013, respectively, from 0.76% and 0.84% for the comparable periods in 2012; the weighted average rate paid on our savings and money market deposit portfolio declined to 0.14% for the three and nine months ended September 30, 2013, from 0.17% and 0.19%, respectively, for the comparable periods in 2012; and the weighted average rate paid on our interest-bearing demand deposits declined to 0.05% for the three and nine months ended September 30, 2013, from 0.07% for the comparable periods in 2012.

Interest expense on our other borrowings decreased $15,000 and $68,000 for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. Average other borrowings increased $3.1 million for the three months ended September 30, 2013, as compared to the comparable period in 2012, and decreased $3.8 million for the nine months ended September 30, 2013, as compared to the comparable period in 2012. Average other borrowings were comprised solely of daily repurchase agreements utilized by our commercial deposit customers as an alternative deposit product in connection with cash management activities. The aggregate weighted average rate paid on our other borrowings decreased 19 and 26 basis points for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. Interest expense on other borrowings also reflects the timing of interest accruals associated with uncertain tax positions.

Interest expense on our junior subordinated debentures increased $57,000 and $97,000 for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. Average junior subordinated debentures were $354.2 million for the three and nine months ended September 30, 2013, as compared to $354.1 million for the comparable periods in 2012. The aggregate weighted average rate paid on our junior subordinated debentures increased to 4.26% and 4.23% for the three and nine months ended September 30, 2013, respectively, from 4.21% and 4.19% for the comparable periods in 2012. The aggregate weighted average rates reflect additional interest expense accrued on the regularly scheduled deferred interest payments on our junior subordinated debentures of $728,000 and $2.0 million for the three and nine months ended September 30, 2013, respectively, compared to $537,000 and $1.5 million for the comparable periods in 2012, as further discussed in Note 9 to our consolidated financial statements. The additional interest expense accrued on the regularly scheduled deferred interest payments increased the weighted average rate paid on our junior subordinated debentures by approximately 82 and 76 basis points for the three and nine months ended September 30, 2013, respectively, as compared to 60 and 55 basis points for the comparable periods in 2012. The increase in additional interest expense accrued on the regularly scheduled deferred interest payments was partially offset by a decline in LIBOR rates, as approximately 79.4% of our junior subordinated debentures are variable rate.

Rate / Volume. The following table indicates, on a tax-equivalent basis, the changes in interest income and interest expense on a continuing basis that are attributable to changes in average volume and changes in average rates, for the three and nine months ended September 30, 2013, as compared to the three and nine months ended September 30, 2012. The change in interest due to the combined rate/volume variance has been allocated to rate and volume changes in proportion to the dollar amounts of the change in each.

46

	Increase (Decrease) Attributable to Change in:
	Three Months Ended September 30, 2013 Compared to 2012							Nine Months Ended September 30, 2013 Compared to 2012
	Volume			Rate		Net Change		Volume		Rate		Net Change
	(dollars expressed in thousands)
Interest earned on:
Loans (1) (2) (3)	$	(1,884	)	(3,715	)	(5,599	)	(8,748	)	(10,626	)	(19,374	)
Investment securities (3)	(2,471		)	73		(2,398	)	(2,275	)	(1,759	)	(4,034	)
FRB and FHLB stock	10			3		13		33		30		63
Short-term investments	209			—		209		212		23		235
Total interest income	(4,136		)	(3,639	)	(7,775	)	(10,778	)	(12,332	)	(23,110	)
Interest paid on:
Interest-bearing demand deposits	8			(32	)	(24	)	17		(104	)	(87	)
Savings and money market deposits	(15		)	(121	)	(136	)	(111	)	(758	)	(869	)
Time deposits	(401		)	(722	)	(1,123	)	(1,405	)	(2,554	)	(3,959	)
Other borrowings	1			(16	)	(15	)	(5	)	(63	)	(68	)
Subordinated debentures	1			56		57		2		95		97
Total interest expense	(406		)	(835	)	(1,241	)	(1,502	)	(3,384	)	(4,886	)
Net interest income	$	(3,730	)	(2,804	)	(6,534	)	(9,276	)	(8,948	)	(18,224	)

____________________

(1) For purposes of these computations, nonaccrual loans are included in the average loan amounts.

(2) Interest income on loans includes loan fees.

(3) Information is presented on a tax-equivalent basis assuming a tax rate of 35%.

Net interest income, expressed on a tax-equivalent basis, decreased $6.5 million and $18.2 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012, and reflects decreases due to volume of $3.7 million and $9.3 million, respectively, and decreases due to rate of $2.8 million and $8.9 million, respectively. The decrease in net interest income, expressed on a tax-equivalent basis, for the nine months ended September 30, 2013, as compared to the comparable period in 2012, due to volume was primarily driven by a decrease in the volume of loans and investment securities, partially offset by a decrease in the volume of interest-bearing deposits. The decrease in loans is further discussed under “—Loans and Allowance for Loan Losses.” The decrease in net interest income, expressed on a tax-equivalent basis, for the nine months ended September 30, 2013, as compared to the comparable period in 2012, due to rate was primarily driven by a decrease in our loan and investment securities yields, reflective of overall market conditions and competition during these periods, partially offset by a decline in the cost of our interest-bearing deposits.

Provision for Loan Losses. We did not record a provision for loan losses for the three and nine months ended September 30, 2013. We recorded a provision for loan losses of zero and $2.0 million for the three and nine months ended September 30, 2012, respectively. The decrease in the provision for loan losses for the nine months ended September 30, 2013, as compared to the comparable period in 2012, was primarily driven by the continued decrease in our overall level of nonaccrual loans and potential problem loans, a decrease in net loan charge-offs and a lower level of asset migration to classified asset categories during the first nine months of2013 than the migration levels experienced during the first nine months of2012, as further discussed under “—Loans and Allowance for Loan Losses.”

Our nonaccrual loans were $71.1 million at September 30, 2013, compared to $89.0 million at June 30, 2013, $109.9 million at December 31, 2012 and $131.6 million at September 30, 2012, reflecting a 45.9% decrease in nonaccrual loans year-over-year. The decrease in the overall level of nonaccrual loans was primarily driven by resolution of certain nonaccrual loans, gross loan charge-offs, and transfers to other real estate and repossessed assets exceeding net additions to nonaccrual loans, as further discussed under “—Loans and Allowance for Loan Losses,” and reflects our continued progress with respect to the implementation of our asset quality improvement initiatives, designed to reduce the overall balance of nonaccrual and other potential problem loans and assets.

Our net loan charge-offs decreased to $1.4 million and $7.3 million for the three and nine months ended September 30, 2013, respectively, from $6.0 million and $25.5 million for the comparable periods in 2012. Our annualized net loan charge-offs were 0.19% and 0.35% of average loans for the three and nine months ended September 30, 2013, respectively, compared to 0.80% and 1.11% of average loans for the comparable periods in 2012. Loan charge-offs were $7.0 million and $20.8 million for the three and nine months ended September 30, 2013, respectively, compared to $13.9 million and $48.3 million for the comparable periods in 2012, and loan recoveries were $5.7 million and $13.5 million for the three and nine months ended September 30, 2013, respectively, compared to $7.9 million and $22.8 million for the comparable periods in 2012.

Tables summarizing nonperforming assets, past due loans and charge-off and recovery experience are presented under “—Loans and Allowance for Loan Losses.”

47

Noninterest Income. Noninterest income decreased $1.1 million and increased $341,000 to $15.5 million and $49.9 million for the three and nine months ended September 30, 2013, respectively, from $16.6 million and $49.5 million for the comparable periods in 2012. The following table summarizes noninterest income for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended								Nine Months Ended
	September 30,				Increase (Decrease)				September 30,				Increase (Decrease)
	2013		2012		Amount		%		2013		2012		Amount		%
	(dollars expressed in thousands)
Noninterest income:
Service charges on deposit accounts and customer service fees	$	8,788	9,053		(265	)	(2.9	)%	$	25,709	27,028		(1,319	)	(4.9	)%
Gain on loans sold and held for sale	1,314		4,325		(3,011	)	(69.6	)	4,439		10,308		(5,869	)	(56.9	)
Net gain on investment securities	108		789		(681	)	(86.3	)	37		1,306		(1,269	)	(97.2	)
Increase (decrease) in fair value of servicing rights	283		(2,417	)	2,700		111.7		907		(4,608	)	5,515		119.7
Loan servicing fees	1,740		1,741		(1	)	(0.1	)	5,233		5,659		(426	)	(7.5	)
Other	3,296		3,156		140		4.4		13,542		9,833		3,709		37.7
Total noninterest income	$	15,529	16,647		(1,118	)	(6.7	)	$	49,867	49,526		341		0.7

Service charges on deposit accounts and customer service fees decreased $265,000 and $1.3 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012, primarily reflecting reduced non-sufficient funds and returned check fee income on retail and commercial accounts coupled with changes in our deposit mix.

Gains on residential mortgage loans sold and held for sale decreased $3.0 million and $5.9 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. The decrease was primarily attributable to a decline in loan production volume in our mortgage banking division as new interest rate lock commitments decreased to $67.7 million and $268.2 million for the three and nine months ended September 30, 2013, respectively, as compared to $170.8 million and $458.8 million for the comparable periods in 2012. The decline in loan production volume was associated with a decrease in refinancing activity in our mortgage banking division.

We recorded net gains on investment securities of $108,000 and $37,000 for the three and nine months ended September 30, 2013, respectively, as compared to $789,000 and $1.3 million for the comparable periods in 2012. The net gain on investment securities for the three and nine months ended September 30, 2013 was attributable to the sale of certain investment securities in anticipation of the expected sale of our ABS line of business during the fourth quarter of 2013, as more fully described in Note 2 to our consolidated financial statements. The net gain for the nine months ended September 30, 2013 was partially offset by other-than-temporary impairment of $407,000 recorded during the first quarter of 2013 on a single municipal investment security classified as held-to-maturity. Proceeds from sales of available-for-sale investment securities were $25.1 million and $143.7 million for the three and nine months ended September 30, 2013, respectively, as compared to $107.6 million and $315.2 million for the comparable periods in 2012. During the third quarter of 2012, we sold $106.8 million of mortgage-backed securities at a gain of $786,000 to partially fund the purchase of $141.0 million of seasoned, performing one-to-four-family residential real estate loans.

Net gains (losses) associated with changes in the fair value of mortgage and SBA servicing rights increased to $283,000 and $907,000 for the three and nine months ended September 30, 2013, respectively, from $(2.4) million and $(4.6) million for the comparable periods in 2012. The changes in the fair value of mortgage and SBA servicing rights during the periods primarily reflect changes in mortgage interest rates and the related changes in estimated prepayment speeds, as well as changes in cash flow assumptions underlying SBA loans serviced for others.

Loan servicing fees decreased $1,000 and $426,000 for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. Loan servicing fees are primarily comprised of fee income generated from the servicing of real estate mortgage loans owned by investors and originated by our mortgage banking division, as well as SBA loans originated to small business concerns, in addition to unused commitment fees received from lending customers. The level of such fees is primarily impacted by the balance of loans serviced and interest shortfall on serviced residential mortgage loans. Interest shortfall represents the difference between the interest collected from a loan servicing customer upon prepayment of the loan and the full month of interest that is required to be remitted to the security owner. The decrease in the level of loan servicing fees was primarily associated with declining volumes of SBA loans serviced for others in addition to unused commitment fees associated with declining loan and unused commitment amounts.

Other income increased $140,000 and $3.7 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. The increase in other income primarily reflects the following:

• Net gains on sales of other real estate and repossessed assets of $795,000 and $4.8 million for the three and nine months ended September 30, 2013, respectively, including a gain of $2.7 million on the sale of a single property in the second quarter of 2013, as compared to net gains on sales of other real estate and repossessed assets of $1.1 million and $1.4 million for the comparable periods in 2012;

48

• Income of $1.2 million recognized on the call of an SBA loan securitization in the first quarter of 2013; and

• Losses on sales of certain bank-owned properties of $841,000 and $1.1 million for the three and nine months ended September 30, 2012; partially offset by

• The receipt of a litigation settlement of $561,000 in the first quarter of 2012; and

• A gain on the sale of a CRA investment of $402,000 in the first quarter of 2012.

Noninterest Expense. Noninterest expense decreased $3.5 million and $14.7 million to $45.3 million and $133.5 million for the three and nine months ended September 30, 2013, respectively, from $48.8 million and $148.2 million for the comparable periods in 2012. The decrease in our noninterest expense was primarily attributable to a lower level of expenses associated with our nonperforming assets and potential problem loans, decreased FDIC insurance expense and the implementation of certain measures intended to improve efficiency through the reduction of operating expenses, partially offset by an increase in salaries and employee benefits expenses. The following table summarizes noninterest expense for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended							Nine Months Ended
	September 30,			Increase (Decrease)				September 30,			Increase (Decrease)
	2013		2012	Amount		%		2013		2012	Amount		%
	(dollars expressed in thousands)
Noninterest expense:
Salaries and employee benefits	$	19,777	18,906	871		4.6	%	$	58,973	56,474	2,499		4.4	%
Occupancy, net of rental income, and furniture and equipment	8,065		8,554	(489	)	(5.7	)	24,955		24,227	728		3.0
Postage, printing and supplies	533		611	(78	)	(12.8	)	1,872		1,956	(84	)	(4.3	)
Information technology fees	5,365		5,219	146		2.8		15,920		17,130	(1,210	)	(7.1	)
Legal, examination and professional fees	1,610		2,232	(622	)	(27.9	)	4,770		7,678	(2,908	)	(37.9	)
Advertising and business development	663		511	152		29.7		1,679		1,481	198		13.4
FDIC insurance	1,852		3,105	(1,253	)	(40.4	)	5,572		9,410	(3,838	)	(40.8	)
Write-downs and expenses on other real estate and repossessed assets	1,966		2,922	(956	)	(32.7	)	4,736		11,204	(6,468	)	(57.7	)
Other	5,474		6,779	(1,305	)	(19.3	)	15,018		18,638	(3,620	)	(19.4	)
Total noninterest expense	$	45,305	48,839	(3,534	)	(7.2	)	$	133,495	148,198	(14,703	)	(9.9	)

Salaries and employee benefits expense increased $871,000 and $2.5 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. The overall increase in salaries and employee benefits expense reflects normal compensation increases and an increase in severance expense associated with certain initiatives in our Capital Plan, partially offset by a decline year-over-year in the overall level of our full-time equivalent employees, or FTEs. Our FTEs, excluding discontinued operations, were 1,134 at September 30, 2013, compared to 1,140 at December 31, 2012 and 1,151 at September 30, 2012, representing decreases of 0.5% and 1.5%, respectively.

Occupancy, net of rental income, and furniture and equipment expense decreased $489,000 and increased $728,000 for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. The increase for the nine months ended September 30, 2013, as compared to the comparable period in 2012, primarily resulted from a $787,000 decrease in rent expense during the first quarter of 2012 associated with the transfer of a lease obligation to an unaffiliated third party and the related reversal of the corresponding straight-line rent liability.

Information technology fees increased $146,000 and decreased $1.2 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. The decrease in information technology fees for the nine months ended September 30, 2013, as compared to the comparable period in 2012, is primarily due to the implementation of certain profit improvement initiatives and related fee reductions with First Services, L.P. As more fully described in Note 16 to our consolidated financial statements, First Services, L.P., a limited partnership indirectly owned by our Chairman and members of his immediate family, including Mr. Michael Dierberg, Vice Chairman of the Company, provides information technology and various operational support services to our subsidiaries and us. Information technology fees also include fees paid to outside servicers associated with our mortgage lending, trust and small business lending divisions as well as our payroll processing department.

Legal, examination and professional fees decreased $622,000 and $2.9 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. The decrease in legal, examination and professional fees reflects a decline in legal expenses associated with loan collection activities, divestiture activities and litigation matters in comparison to the level of such expenses during the first nine months of 2012. Despite the decline in legal fees, we anticipate legal, examination and professional fees will remain at higher-than-historical levels in the near term, primarily as a result of elevated levels of legal and professional fees associated with ongoing collection efforts on commercial and consumer problem loans, ongoing matters associated with our Capital Plan, and certain litigation matters.

49

FDIC insurance expense decreased $1.3 million and $3.8 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. The decrease in FDIC insurance expense is reflective of a reduction in our assessment rate, effective October 2, 2012, in addition to reduced deposit levels and total assets during the first nine months of 2013, as compared to the comparable period in 2012.

Write-downs and expenses on other real estate and repossessed assets decreased $956,000 and $6.5 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. Write-downs related to the re-valuation of certain other real estate properties and repossessed assets decreased $265,000 and $5.7 million to $1.4 million and $2.2 million for the three and nine months ended September 30, 2013, respectively, from $1.7 million and $7.9 million for the comparable periods in 2012. Other real estate and repossessed asset expenses, exclusive of write-downs, such as taxes, insurance, and repairs and maintenance, were $545,000 and $2.5 million for the three and nine months ended September 30, 2013, respectively , as compared to $1.2 million and $3.3 million for the comparable periods in 2012. The balance of our other real estate and repossessed assets declined to $74.8 million at September 30, 2013, from $78.2 million at June 30, 2013, $92.0 million at December 31, 2012 and $110.4 million at September 30, 2012. The overall higher-than-historical level of expenses on other real estate and repossessed assets is associated with ongoing foreclosure activity, including current and delinquent real estate taxes paid on other real estate properties, as well as other property preservation related expenses. Although we continue to reduce the overall number and balance of other real estate properties and repossessed assets, we expect the level of write-downs and expenses on our other real estate and repossessed assets to continue to remain at elevated levels in the near term as a result of the high level of our other real estate and repossessed assets.

Other expense decreased $1.3 million and $3.6 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. Other expense encompasses numerous general and administrative expenses including communications, insurance, freight and courier services, correspondent bank charges, loan expenses, miscellaneous losses and recoveries, memberships and subscriptions, transfer agent fees, sales taxes, travel, meals and entertainment, overdraft losses and other nonrecurring expenses. The decrease in the overall level of other expense is reflective of the following:

• Profit improvement initiatives and management's efforts to reduce overall expense levels;

• Accruals and cash payments associated with certain litigation and other matters of $300,000 for the three and nine months ended September 30, 2013, as compared to $375,000 and $1.1 million for the three and nine months ended September 30, 2012, respectively;

• Loan expenses related to collection matters of $836,000 and $2.1 million for the three and nine months ended September 30, 2013, respectively, as compared to $1.3 million and $2.6 million for the comparable periods in 2012.

• Amortization expense and losses associated with CRA investments of $163,000 and $488,000 for the three and nine months ended September 30, 2013, respectively, as compared to $156,000 and $1.0 million for the comparable periods in 2012; and

• Accruals and cash payments associated with repurchase losses in our Mortgage Division, resulting in expense of $250,000 and $1.1 million for the three and nine months ended September 30, 2013, respectively, as compared to $1.1 million and $2.3 million for the comparable periods in 2012. We have sold significant amounts of residential mortgage loans directly to government-sponsored enterprises, Fannie Mae (FNMA) and Freddie Mac (FHLMC) (collectively, the GSEs), and to investors other than GSEs, as whole loans. In connection with these sales, we make or have made various representations and warranties, breaches of which may result in a requirement that we repurchase the mortgage loans, or otherwise make whole or provide other remedies to the counterparties. We have recorded an estimated liability related to possible mortgage repurchase losses of $2.5 million and $2.0 million as of September 30, 2013 and December 31, 2012, respectively. Our estimated liability for possible loss is based on then-currently available information and is dependent on various factors, including our historical claims and settlement experience, projections of future defaults, and significant judgment and assumptions that are subject to change. As such, the future possible loss related to our representations and warranties may materially change in the future based on factors beyond our control or if actual experiences are different from our assumptions, including, without limitation, estimated repurchase rates, economic conditions, estimated home prices, consumer and counterparty behavior, and a variety of other judgmental factors. Adverse developments with respect to one or more of the assumptions underlying the estimated liability and the corresponding estimated range of possible loss could result in significant increases to future provisions and/or the estimated range of possible loss. If future losses occur in excess of our recorded liability and estimated range of possible loss, such losses could have a material adverse effect on our cash flows, financial condition and results of operations.

(Benefit) Provision for Income Taxes. We recorded a benefit for income taxes of $65,000 and $45,000 for the three and nine months ended September 30, 2013, respectively. We recorded a benefit for income taxes of $138,000 and a provision for income taxes of $78,000 for the three and nine months ended September 30, 2012, respectively. The (benefit) provision for income taxes during the three and nine months ended September 30, 2013 and 2012 reflects the establishment of a full deferred tax asset valuation allowance during 2008 and the resulting inability to record tax benefits on our net loss in 2011 due to existing federal and state net operating loss carryforwards on which the realization of the related tax benefits is not presently “more likely than not,” as

50

further described in Note 13 to our consolidated financial statements. The deferred tax asset valuation allowance was primarily established as a result of our three-year cumulative operating loss for the years ended December 31, 2008, 2007 and 2006, after considering all available objective evidence and potential tax planning strategies related to the amount of the deferred tax assets that are “more likely than not” to be realized. Effective January 1, 2013, an increase in the blended state tax rate was applied to the deferred state tax assets and liabilities which resulted in an increase to the net state deferred tax liabilities during the first quarter of 2013. A state income tax provision of $451,000, net of the federal benefit of $158,000, representing the effect of the change, was recognized in income from continuing operations during the first quarter of 2013. The benefit for income taxes for the nine months ended September 30, 2013 also reflects various state income tax adjustments.

Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expenses. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and results of recent operations. In projecting future taxable income, we begin with historical results adjusted for the results of discontinued operations and changes in accounting policies and incorporate assumptions including the amount of future state and federal pre-tax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts and future taxable income and are consistent with the plans and estimates we are using to manage the underlying business. In evaluating the objective evidence that historical results provide, we consider three years of cumulative operating income (loss).

After analysis of all available positive and negative evidence, we believe it is reasonably possible to reverse a portion, or all, of our deferred tax asset valuation allowance in the future. Historical and forecasted positive evidence includes: pre-tax operating income for the nine months ended September 30, 2013 and the year ended December 31, 2012; forecasted cumulative pre-tax operating income for the three years ending December 31, 2013; continued improvement in asset quality metrics; and certain other relevant factors. Any determination to reverse a portion, or all, of our deferred tax asset valuation allowance would be subject to ongoing evaluation and discussions with our advisors and subject to changes in circumstances and then-current available information.

Loss from Discontinued Operations, Net of Tax. We recorded a loss from discontinued operations, net of tax, of $881,000 and $6.3 million for the three and nine months ended September 30, 2013, respectively, compared to a loss from discontinued operations, net of tax, of $2.2 million and $6.8 million for the comparable periods in 2012. The loss from discontinued operations, net of tax, for the three and nine months ended September 30, 2013 and 2012 is reflective of the following:

• A gain of $408,000 associated with the sale of eight of our retail branches in our Northern Florida Region on April 19, 2013, after the write-off of goodwill of $700,000 allocated to the Northern Florida Region;

• A loss of $2.3 million during the second quarter of 2013 related to the closure of three retail branches in our Northern Florida Region on April 5, 2013 that was attributable to continuing obligations under facility leasing arrangements; and

• Other income (loss) from all discontinued operations during the respective periods, as further described in Note 2 to our consolidated financial statements.

Net (Loss) Income Attributable to Noncontrolling Interest in Subsidiary. Net (loss) income attributable to noncontrolling interest in subsidiary was $(38,000) and $113,000 for the three and nine months ended September 30, 2013, respectively, compared to net income (loss) attributable to noncontrolling interest in subsidiary of $216,000 and $(229,000) for the comparable periods in 2012, and was comprised of the noncontrolling interest in the net income (losses) of FB Holdings. The net income attributable to noncontrolling interest in subsidiary for the nine months ended September 30, 2013, as compared to the net loss for the comparable period in 2012, is primarily reflective of reduced expenses and write-downs on other real estate properties associated with the reduction of loans and other real estate balances held in FB Holdings, partially offset by lower gain on sales of other real estate properties. Noncontrolling interest in subsidiary is more fully described in Note 1 and Note 16 to our consolidated financial statements.

FINANCIALCONDITION

Total assets decreased$271.8 million to $6.24 billion at September 30, 2013, from $6.51 billion at December 31, 2012. The decrease in our total assets was attributable to decreases in our investment securities portfolio, loan portfolio, goodwill, deferred income taxes, and other real estate and repossessed assets; partially offset by an increase in our cash and cash equivalents and assets of discontinued operations.

Cash and cash equivalents, which are comprised of cash and short-term investments, increased$195.3 million to $714.2 million at September 30, 2013, from $518.8 million at December 31, 2012, reflecting efforts to build liquidity in anticipation of the expected sale of our ABS line of business in the fourth quarter of 2013, which is expected to result in a cash outflow of approximately $480.0 million. The majority of funds in our short-term investments were maintained in our correspondent bank account with the

51

FRB, as further discussed under “—Liquidity Management.” The increase in our cash and cash equivalents was primarily attributable to the following:

• A net decrease in our investment securities portfolio of $248.7 million, excluding the fair value adjustment on available-for-sale investment securities;

• A decrease in loans of $94.4 million, exclusive of loan charge-offs, transfers of loans to other real estate and repossessed assets, and the reclassification of $20.4 million of loans associated with our ABS line of business to assets of discontinued operations;

• Recoveries of loans previously charged off of $13.5 million;

• Proceeds from the sales of other real estate and repossessed assets of $25.6 million;

• A net increase in our other borrowings of $11.1 million, consisting of changes in our daily repurchase agreements utilized by customers as an alternative deposit product; and

• Cash generated by operating earnings; partially offset by

• A decrease in deposits of $108.3 million, exclusive of the reclassification of $549.1 million of deposits associated with our ABS line of business to liabilities of discontinued operations; and

• The sale of eight of our Northern Florida retail branches on April 19, 2013, resulting in a cash outflow of $114.5 million.

Investment securities decreased$306.7 million to $2.37 billion at September 30, 2013, from $2.68 billion at December 31, 2012. The decrease primarily reflects proceeds from sales and maturities of investment securities in anticipation of the expected sale of our ABS line of business during the fourth quarter of 2013, which is expected to result in a cash outflow of approximately $480.0 million. The decrease also reflects a decrease in the fair value adjustment of approximately $35.9 million on our available-for-sale investment securities resulting from an increase in market interest rates during the period in addition to net amortization. During the first quarter of 2013, we also reclassified certain of our available-for-sale investment securities to held-to-maturity investment securities at their respective fair values, which totaled $242.5 million in aggregate, as further described in Note 3 to our consolidated financial statements and under “— Liquidity Management.”

Loans, net of net deferred loan fees, or total loans, decreased$143.8 million to $2.79 billion at September 30, 2013, from $2.93 billion at December 31, 2012. The decrease reflects the reclassification of $20.4 million of loans associated with our ABS line of business to assets of discontinued operations at September 30, 2013, as further discussed in Note 2 to our consolidated financial statements, gross loan charge-offs of $20.8 million, transfers of loans to other real estate and repossessed assets of $8.2 million, and other net loan activity of $94.4 million, including principal repayments and/or payoffs on nonperforming, potential problem and other loans as well as loan runoff in problem loans and loans in markets we previously exited, as further discussed under “— Loans and Allowance for Loan Losses.” These decreases are partially offset by new loan production as a result of successful efforts to expand existing loan relationships and develop new loan relationships.

Goodwill decreased$18.0 million to $107.3 million at September 30, 2013, from $125.3 million at December 31, 2012. The decrease reflects the allocation of $18.0 million of goodwill associated with our ABS line of business to assets of discontinued operations at September 30, 2013.

Other real estate and repossessed assets decreased$17.2 million to $74.8 million at September 30, 2013, from $92.0 million at December 31, 2012. The decrease in other real estate and repossessed assets was primarily attributable to the sale of other real estate properties and repossessed assets with a carrying value of $22.4 million at a net gain of $4.8 million, and write-downs of other real estate properties and repossessed assets of $2.2 million primarily attributable to declining real estate values on certain properties. These decreases were partially offset by foreclosures and additions to other real estate and repossessed assets aggregating $8.2 million, as further discussed under “— Loans and Allowance for Loan Losses.”

Deferred income tax assets decreased$13.3 million to $15.7 million at September 30, 2013, from $29.0 million at December 31, 2012. The decrease primarily resulted from a decrease in deferred tax liabilities associated with the corresponding decrease in the fair value adjustment on our available-for-sale investment securities, as further discussed below, and a corresponding increase in the deferred tax asset valuation allowance.

Assets and liabilities of discontinued operations were $38.5 million and $549.2 million, respectively, at September 30, 2013 and represent the assets and liabilities of our ABS line of business expected to be sold during the fourth quarter of 2013. Assets and liabilities of discontinued operations were $6.7 million and $155.7 million, respectively, at December 31, 2012, and represent the assets and liabilities associated with our three Northern Florida Region branches closed on April 5, 2013 and our eight Northern Florida Region branches sold on April 19, 2013. See Note 2 to our consolidated financial statements for further discussion of discontinued operations.

Deposits decreased$657.4 million to $4.84 billion at September 30, 2013, from $5.49 billion at December 31, 2012. The decrease reflects the reclassification of $549.1 million of deposits associated with our ABS line of business to liabilities of discontinued operations at September 30, 2013, as further discussed in Note 2 to our consolidated financial statements. Exclusive of this transaction, total deposits decreased $108.3 million, which was primarily attributable to reductions of higher rate certificates of deposit and a decrease in savings and money market deposits, partially offset by an increase in demand deposits attributable to

52

seasonal fluctuations. Time deposits and savings and money market deposits decreased $142.5 million and $9.5 million, respectively, and demand deposits increased $43.7 million.

Other borrowings, which are comprised of daily securities sold under agreements to repurchase (in connection with cash management activities of our commercial deposit customers), increased$11.1 million to $37.1 million at September 30, 2013, from $26.0 million at December 31, 2012, reflecting changes in customer balances associated with this product segment.

Deferred income tax liabilities decreased$13.0 million to $23.2 million at September 30, 2013, from $36.2 million at December 31, 2012. The decrease primarily resulted from a decrease in deferred tax liabilities associated with the corresponding decrease in the fair value adjustment of our available-for-sale investment securities as a result of an increase in market interest rates during the nine months ended September 30, 2013.

Accrued expenses and other liabilities increased$25.0 million to $169.2 million at September 30, 2013, from $144.3 million at December 31, 2012. The increase was primarily attributable to an increase of $14.8 million in dividends payable on our Class C Preferred Stock and our Class D Preferred Stock, to $76.8 million at September 30, 2013, and an increase of $11.2 million in accrued interest payable on our junior subordinated debentures to $59.0 million at September 30, 2013, as further discussed in Notes 9 and 10 to our consolidated financial statements.

Stockholders' equity, including noncontrolling interest in subsidiary, decreased$30.9 million to $269.1 million at September 30, 2013, from $300.0 million at December 31, 2012. The decrease reflects a decrease in accumulated other comprehensive income of $38.2 million associated with a decrease in unrealized gains on available-for-sale investment securities, resulting from the increase in market interest rates experienced during the year, and dividends declared and undeclared of $14.8 million, partially offset by net income, including discontinued operations, of $22.0 million.

Loans and Allowance for Loan Losses

Loan Portfolio Composition. Total loans represented 44.7% of our assets as of September 30, 2013, compared to 45.0% of our assets at December 31, 2012. Total loans decreased$143.8 million to $2.79 billion at September 30, 2013 from $2.93 billion at December 31, 2012. The following table summarizes the composition of our loan portfolio by category at September 30, 2013 and December 31, 2012:

	September 30, 2013			December 31, 2012
	(dollars expressed in thousands)
Commercial, financial and agricultural	$	583,539		610,301
Real estate construction and development	125,333			174,979
Real estate mortgage:
One-to-four-family residential	924,389			986,767
Multi-family residential	103,362			103,684
Commercial real estate	1,003,533			969,680
Consumer and installment	18,773			19,262
Loans held for sale	28,313			66,133
Net deferred loan fees	(312		)	(59	)
Total loans	$	2,786,930		2,930,747

The following table summarizes the composition of our loan portfolio by geographic region and/or business segment at September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Mortgage Division	$	518,796	582,021
Florida	59,841		65,582
Northern California	329,108		383,519
Southern California	935,786		922,191
Chicago	100,813		122,508
Missouri	538,206		528,168
Texas	27,297		41,951
Northern and Southern Illinois	222,534		212,177
Other	54,549		72,630
Total	$	2,786,930	2,930,747

53

The net decrease in our loan portfolio during the first nine months of2013 primarily reflects the following:

• A decrease of $26.8 million, or 4.4%, in our commercial, financial and agricultural portfolio, primarily attributable to the reclassification of $20.6 million of such loans associated with our ABS line of business to assets of discontinued operations at September 30, 2013; partially offset by new loan production within this portfolio segment;

• A decrease of $49.6 million, or 28.4%, in our real estate construction and development portfolio, primarily attributable to our continued efforts to reduce the overall level of our special mention, potential problem and nonaccrual loans within this portfolio segment. During the third quarter of 2013, we received a payoff of $29.6 million on a single credit relationship in our Northern California region, of which $19.6 million of the loan relationship was on nonaccrual status and $10.0 million was considered a performing troubled debt restructuring, or performing TDR. The payoff of this loan relationship also resulted in a recovery to the allowance for loan losses of $2.2 million. The following table summarizes the composition of our real estate construction and development portfolio by region as of September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Northern California	$	795	30,388
Southern California	91,020		88,893
Chicago	10,344		21,024
Missouri	4,936		9,791
Texas	4,692		9,927
Florida	853		378
Northern and Southern Illinois	6,495		8,260
Other	6,198		6,318
Total	$	125,333	174,979

We have reduced our exposure to our real estate construction and development portfolio over the past several years due primarily to weak economic conditions and declines in real estate values in certain of our market areas which resulted in higher levels of charge-offs and foreclosures during these periods. Of the remaining portfolio balance of $125.3 million, $7.3 million, or 5.8%, of these loans were on nonaccrual status as of September 30, 2013 and $73.3 million, or 58.5%, of these loans were considered potential problem loans, including a $60.2 million loan relationship in our Southern California region, as further discussed below;

• A decrease of $62.4 million, or 6.3%, in our one-to-four-family residential real estate loan portfolio primarily attributable to gross loan charge-offs of $11.0 million, transfers to other real estate of $5.0 million and principal payments; partially offset by new loan production. The following table summarizes the composition of our one-to-four-family residential real estate loan portfolio as of September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
One-to-four-family residential real estate:
Bank portfolio	$	96,979	122,338
Mortgage Division portfolio, excluding Florida	409,180		427,759
Florida Mortgage Division portfolio	75,510		82,212
Home equity portfolio	342,720		354,458
Total	$	924,389	986,767

Our Bank portfolio consists of mortgage loans originated to customers from our retail branch banking network. The decrease in this portfolio of $25.4 million, or 20.7%, during the first nine months of2013 is primarily attributable to principal payments resulting from loan refinancings in the ongoing low, but recently increasing, mortgage interest rate environment. As of September 30, 2013, approximately $6.6 million, or 6.8%, of this portfolio is considered impaired, consisting of nonaccrual loans of $5.9 million and performing TDRs of $704,000.

Our Mortgage Division portfolio, excluding Florida, consists of both prime mortgage loans and Alt A and sub-prime mortgage loans that were originated prior to our discontinuation of Alt A and sub-prime loan products in 2007. The decrease in this portfolio of $18.6 million, or 4.3%, during the first nine months of2013 is primarily attributable to principal payments, gross loan charge-offs of $5.7 million and transfers to other real estate, partially offset by the addition of approximately $52.7 million of new loan production into this portfolio, consisting of jumbo adjustable rate and 10 and 15-year fixed rate mortgages. As of September 30, 2013, approximately $82.0 million, or 20.0%, of this portfolio is considered impaired, consisting of nonaccrual loans of $13.8 million and performing TDRs of $68.2 million, including loans modified in the Home Affordable Modification Program, or HAMP, of $62.5 million.

54

Our Florida Mortgage Division portfolio, the majority of which was acquired in November 2007 through our acquisition of Coast Bank, consists primarily of prime mortgage loans and Alt A mortgage loans. The decrease in this portfolio of $6.7 million, or 8.2%, is primarily attributable to principal payments, gross loan charge-offs of $1.8 million and transfers to other real estate. As of September 30, 2013, approximately $11.7 million, or 15.5%, of this portfolio is considered impaired, consisting of performing TDRs of $8.7 million, including loans modified in HAMP of $6.7 million, and nonaccrual loans of $3.0 million. Our Mortgage Division portfolio, excluding Florida, and our Florida Mortgage Division portfolio are collectively defined as our Mortgage Division portfolio unless otherwise noted.

Our home equity portfolio consists of loans originated to customers from our retail branch banking network. The decrease in this portfolio of $11.7 million, or 3.3%, during the first nine months of2013 is primarily attributable to principal payments, gross loan charge-offs of $2.4 million and ordinary and seasonal fluctuations experienced within this loan product type. As of September 30, 2013, approximately $6.1 million, or 1.8%, of this portfolio is on nonaccrual status;

• A decrease of $322,000, or 0.3%, in our multi-family residential real estate portfolio. As of September 30, 2013, approximately $29.9 million, or 28.9%, of this portfolio is considered impaired, consisting of nonaccrual loans of $1.8 million and performing TDRs of $28.1 million, consisting solely of one loan relationship in our Chicago region (as further described below under Performing Troubled Debt Restructurings);

• An increase of $33.9 million, or 3.5%, in our commercial real estate portfolio primarily attributable to new loan production within this portfolio segment, partially offset by our efforts to reduce the overall level of our special mention, potential problem and nonaccrual loans within this portfolio segment, including the payoff of a $5.2 million performing TDR in the second quarter of 2013. The following table summarizes the composition of our commercial real estate portfolio by loan type as of September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Farmland	$	17,938	17,784
Owner occupied	525,371		552,983
Non-owner occupied	460,224		398,913
Total	$	1,003,533	969,680

• A decrease of $489,000, or 2.5%, in our consumer and installment portfolio, primarily reflecting portfolio runoff; and

• A decrease of $37.8 million, or 57.2%, in our loans held for sale portfolio primarily resulting from a decline in origination volumes and the timing of subsequent sales into the secondary mortgage market.

55

Nonperforming Assets. Nonperforming assets include nonaccrual loans and other real estate and repossessed assets. The following table presents the categories of nonperforming assets and certain ratios as of September 30, 2013 and December 31, 2012:

	September 30, 2013			December 31, 2012
	(dollars expressed in thousands)
Nonperforming Assets:
Nonaccrual loans:
Commercial, financial and agricultural	$	11,897		19,050
Real estate construction and development	7,300			32,152
One-to-four-family residential real estate:
Bank portfolio	5,893			6,910
Mortgage Division portfolio	16,772			19,780
Home equity portfolio	6,145			8,671
Multi-family residential	1,810			6,761
Commercial real estate	21,310			16,520
Consumer and installment	6			28
Total nonaccrual loans	71,133			109,872
Other real estate and repossessed assets	74,831			91,995
Total nonperforming assets	$	145,964		201,867
Total loans	$	2,786,930		2,930,747
Performing troubled debt restructurings	$	110,232		128,917
Loans past due 90 days or more and still accruing	$	4,740		1,090
Ratio of:
Allowance for loan losses to loans	3.02		%	3.13	%
Nonaccrual loans to loans	2.55			3.75
Allowance for loan losses to nonaccrual loans	118.48			83.37
Nonperforming assets to loans, other real estate and repossessed assets	5.10			6.68

Our nonperforming assets, consisting of nonaccrual loans, other real estate and repossessed assets, decreased$55.9 million, or 27.7%, to $146.0 million at September 30, 2013, from $201.9 million at December 31, 2012.

We attribute the $38.7 million, or 35.3%, net decrease in our nonaccrual loans during the first nine months of2013 to the following:

• A decrease in nonaccrual loans of $7.2 million, or 37.5%, in our commercial, financial and agricultural portfolio;

• A decrease in nonaccrual loans of $24.9 million, or 77.3%, in our real estate construction and development loan portfolio, reflecting our continued efforts to reduce the overall level of our special mention, potential problem and nonaccrual loans within this portfolio segment, including the payoff of $19.6 million of nonaccrual loans associated with a single credit relationship in our Northern California region during the third quarter of 2013, as previously discussed, a $6.5 million paydown on a large loan relationship in our Southern California region during the third quarter of 2013 and slowing in the level of deterioration in this portfolio due in part to the decline in the total portfolio balance;

• A decrease in nonaccrual loans of $6.6 million, or 18.5%, in our one-to-four-family residential real estate loan portfolio driven by gross loan charge-offs of $11.0 million, transfers to other real estate of $5.0 million and payments received, partially offset by additions to nonaccrual loans during the period;

• A decrease in nonaccrual loans of $5.0 million, or 73.2%, in our multi-family residential loan portfolio, primarily reflecting a $2.5 million payoff on a nonperforming TDR during the second quarter of 2013; and

• An increase in nonaccrual loans of $4.8 million, or 29.0%, in our commercial real estate portfolio primarily driven by additions to nonaccrual loans during the period, including a $13.5 million commercial real estate loan in our Southern California region during the third quarter of 2013. The increase in nonaccrual loans is partially offset by gross loan charge-offs of $5.1 million, transfers to other real estate of $2.5 million and payments received.

The decrease in other real estate and repossessed assets of $17.2 million, or 18.7%, during the first nine months of2013 was primarily driven by the sale of other real estate properties with an aggregate carrying value of $22.4 million at a net gain of $4.8 million and write-downs of other real estate and repossessed assets of $2.2 million attributable to declining real estate values on certain properties, partially offset by foreclosures and other additions to other real estate aggregating $8.2 million. Of the $74.8 million of other real estate and repossessed assets at September 30, 2013, $28.0 million and $46.7 million consisted of properties

56

with the most recent appraisal date being in 2013 and 2012, respectively. The remaining $130,000 of other real estate and repossessed assets at September 30, 2013 consisted of properties with the most recent appraisal date being in 2011 and 2010.

The following table summarizes the composition of our nonperforming assets by region / business segment at September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Mortgage Division	$	19,215	22,507
Florida	2,242		2,308
Northern California	572		25,661
Southern California	61,917		62,130
Chicago	5,132		18,126
Missouri	31,319		36,411
Texas	6,109		9,194
Northern and Southern Illinois	10,442		13,362
Other	9,016		12,168
Total nonperforming assets	$	145,964	201,867

During the first nine months of2013, we experienced a decline in nonperforming assets in all of our regions. We have been successful in reducing our overall level of nonperforming assets as a result of the completion of several asset quality improvement initiatives.

As of September 30, 2013 and December 31, 2012, loans identified by management as TDRs aggregating $11.7 million and $40.0 million, respectively, were on nonaccrual status and were classified as nonperforming loans.

While we continue our efforts to reduce nonperforming and potential problem loans, we expect market conditions in certain of our geographic sectors to remain uncertain, which may continue to impact the overall level of our nonperforming and potential problem loans, loan charge-offs, provision for loan losses and other real estate and repossessed assets balances.

Performing Troubled Debt Restructurings. The following table presents the categories of performing TDRs as of September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Real estate construction and development	$	—	10,031
Real estate mortgage:
One-to-four-family residential	77,612		79,905
Multi-family residential	28,070		28,240
Commercial real estate	4,550		10,741
Total performing troubled debt restructurings	$	110,232	128,917

Performing TDRs decreased$18.7 million, or 14.5%, during the first nine months of2013, primarily attributable to the payoff of $10.0 million of real estate construction and development performing TDRs associated with a single credit relationship in our Northern California region during the third quarter of 2013, as previously discussed, and the payoff of a $5.2 million commercial real estate loan in our Southern California region during the second quarter of 2013. Our multi-family residential performing TDRs include a single $28.1 million loan relationship in our Chicago region that was restructured during the fourth quarter of 2012. We are closely monitoring this loan relationship, and while facts and circumstances are subject to change in the future, the borrower continued to service this obligation in accordance with the existing terms and conditions of the restructured credit agreement as of September 30, 2013.

57

Potential Problem Loans. As of September 30, 2013 and December 31, 2012, loans aggregating $104.9 million and $116.1 million, respectively, which were not classified as nonperforming assets or performing TDRs, were identified by management as having potential credit problems, or potential problem loans. These loans are generally defined as loans having an internally assigned grade of substandard and loans in the Mortgage Division which are 30-89 days past due. The following table presents the categories of our potential problem loans as of September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Commercial, financial and agricultural	$	7,444	8,423
Real estate construction and development	73,285		81,364
Real estate mortgage:
One-to-four-family residential	6,234		11,664
Multi-family residential	555		773
Commercial real estate	17,366		13,868
Total potential problem loans	$	104,884	116,092

Potential problem loans decreased$11.2 million, or 9.7%, during the first nine months of2013. The decrease in potential problem loans reflects transfers of certain potential problem loans to special mention status, transfers to nonaccrual status and payment activity. Potential problem loans at September 30, 2013 include a $60.2 million real estate construction and development credit relationship in our Southern California region. We received a payment of $6.5 million during the third quarter of 2013 on this credit relationship and we continue to closely monitor this loan relationship. Based on recent valuations of the underlying collateral securing this loan relationship, we have determined that it is currently adequately secured. While facts and circumstances are subject to change in the future, the borrower continued to service this obligation in accordance with the existing terms and conditions of the credit agreement as of September 30, 2013.

The following table summarizes the composition of our potential problem loans by region / business segment at September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Mortgage Division	$	4,291	6,627
Florida	2,322		4,443
Northern California	5,622		860
Southern California	74,082		88,690
Chicago	5,484		1,835
Missouri	5,743		7,391
Texas	578		842
Northern and Southern Illinois	3,847		4,775
Other	2,915		629
Total potential problem loans	$	104,884	116,092

During the first nine months of2013, we experienced a decline in potential problem loans in most of our regions, with the exception of our Northern California and Chicago regions. We have generally been successful in reducing the overall level of our potential problem loans as a result of the completion of several asset quality improvement initiatives.

Our credit risk management policies and procedures, as further described under “—Allowance for Loan Losses,” focus on identifying potential problem loans. Potential problem loans may be identified by the assigned lender, the credit administration department or the internal credit review department. Specifically, the originating loan officers have primary responsibility for monitoring and overseeing their respective credit relationships, including, but not limited to: (a) periodic reviews of financial statements; (b) periodic site visits to inspect and evaluate loan collateral; (c) ongoing communication with primary borrower representatives; and (d) appropriately monitoring and adjusting the risk rating of the respective credit relationships should ongoing conditions or circumstances associated with the relationship warrant such adjustments. In addition, in the current weakened economic environment, our credit administration department and our internal credit review department are reviewing all loans with credit exposure over certain thresholds in loan portfolio segments in which we, or other financial institutions, have experienced significant loan charge-offs, such as real estate construction and development and one-to-four-family residential real estate loans, and on loan portfolio segments that appear to be most likely to generate additional loan charge-offs in the future, such as commercial real estate. We include adversely rated credits, including potential problem loans, on our monthly loan watch list. Loans on our watch list require regular detailed loan status reports prepared by the responsible officer which are discussed in formal meetings with internal credit review and credit administration staff members that are generally conducted on a quarterly basis. The primary

58

purpose of these meetings is to closely monitor these loan relationships and further develop, modify and oversee appropriate action plans with respect to the ultimate and timely resolution of the individual loan relationships.

Each loan is assigned an FDIC collateral code at the time of origination which provides management with information regarding the nature and type of the underlying collateral supporting all individual loans, including potential problem loans. Upon identification of a potential problem loan, management makes a determination of the value of the underlying collateral via a third party appraisal and/or an assessment of value from our internal appraisal review department. The estimated value of the underlying collateral is a significant factor in the risk rating and allowance for loan losses allocation assigned to potential problem loans.

Potential problem loans are regularly evaluated for impaired loan status by lenders, the credit administration department and the internal credit review department. When management makes the determination that a loan should be considered impaired, an initial specific reserve is allocated to the impaired loan, if necessary, until the loan is charged down to the appraised value of the underlying collateral, typically within 30 to 90 days of becoming impaired. Management typically utilizes appraisals performed no earlier than 180 days prior to the charge-off, and in most cases, appraisals utilized are dated within 60 days of the charge-off. As such, management typically addresses collateral shortfalls through charge-offs as opposed to recording specific reserves on individual loans. Once a loan is charged down to the appraised value of the underlying collateral, management regularly monitors the carrying value of the loan for any additional deterioration and records additional reserves or charge-offs as necessary. As a general guideline, management orders new appraisals on any impaired loan or other real estate property in which the most recent appraisal is more than 18 months old; however, management also orders new appraisals on impaired loans or other real estate properties if management determines new appraisals are prudent based on many different factors, such as a rapid change in market conditions in a particular region.

We continue our efforts to reduce nonperforming and potential problem loans and re-define our overall strategy and business plans with respect to our loan portfolio as deemed necessary in light of ongoing changes in market conditions in the markets in which we operate.

Allowance for Loan Losses. Our allowance for loan losses decreased to $84.3 million at September 30, 2013, from $91.6 million at December 31, 2012. The decrease in our allowance for loan losses of $7.3 million during the first nine months of2013 was primarily attributable to net charge-offs of $7.3 million, in addition to the decrease in nonaccrual loans of $38.7 million and the $143.8 milliondecrease in the overall level of our loan portfolio.

Our allowance for loan losses as a percentage of total loans was 3.02% and 3.13% at September 30, 2013 and December 31, 2012, respectively. The decrease in the allowance for loan losses as a percentage of total loans during the first nine months of2013 was primarily attributable to the decrease in our nonaccrual loans, which generally require a higher allowance for loan losses relative to the amount of the loans than the remainder of the loan portfolio, in addition to a decrease in our historical net loan charge-off experience as a result of declining charge-off levels during the first nine months of2013 and the year ended December 31, 2012, as compared to previous periods.

Our allowance for loan losses as a percentage of nonaccrual loans was 118.48% and 83.37% at September 30, 2013 and December 31, 2012, respectively. The increase in the allowance for loan losses as a percentage of nonaccrual loans during the first nine months of2013 was primarily attributable to the decrease in nonaccrual loans, a portion of which did not carry a specific allowance for loan losses as these loans had been charged down to the estimated fair value of the related collateral less estimated costs to sell.

59

The following table summarizes the changes in the allowance for loan losses for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Allowance for loan losses, beginning of period	$	85,633		120,227		91,602		137,710
Loans charged-off:
Commercial, financial and agricultural	(2,241		)	(2,475	)	(3,927	)	(12,708	)
Real estate construction and development	—			(2,495	)	(448	)	(8,918	)
Real estate mortgage:
One-to-four-family residential loans:
Bank portfolio	(109		)	(346	)	(1,074	)	(1,788	)
Mortgage Division portfolio	(1,716		)	(4,355	)	(7,490	)	(8,998	)
Home equity portfolio	(431		)	(1,477	)	(2,419	)	(4,308	)
Multi-family residential loans	—			(143	)	(162	)	(1,312	)
Commercial real estate loans	(2,488		)	(2,636	)	(5,121	)	(10,026	)
Consumer and installment	(55		)	—		(153	)	(269	)
Total	(7,040		)	(13,927	)	(20,794	)	(48,327	)
Recoveries of loans previously charged-off:
Commercial, financial and agricultural	1,773			4,907		3,863		10,651
Real estate construction and development	2,557			534		4,273		4,253
Real estate mortgage:
One-to-four-family residential loans:
Bank portfolio	94			191		442		835
Mortgage Division portfolio	684			1,259		2,594		2,781
Home equity portfolio	101			129		362		438
Multi-family residential loans	—			1		141		44
Commercial real estate loans	443			827		1,683		3,673
Consumer and installment	32			54		111		144
Total	5,684			7,902		13,469		22,819
Net loans charged-off	(1,356		)	(6,025	)	(7,325	)	(25,508	)
Provision for loan losses	—			—		—		2,000
Allowance for loan losses, end of period	$	84,277		114,202		84,277		114,202

Our net loan charge-offs were $1.4 million and $7.3 million for the three and nine months ended September 30, 2013, respectively, as compared to $6.0 million and $25.5 million for the comparable periods in 2012. Our annualized net loan charge-offs as a percentage of average loans were 0.19% and 0.35% for the three and nine months ended September 30, 2013, respectively, compared to 0.80% and 1.11% for the comparable periods in 2012. During the first nine months of2013, as compared to the comparable period in 2012, we experienced a decrease in net loan charge-offs in all of our loan categories. The decrease in our overall net loan charge-off levels for the three and nine months ended September 30, 2013, as compared to the comparable periods in 2012, is primarily attributable to the following:

• An increase in net loan charge-offs associated with our commercial, financial and agricultural portfolio of $2.9 million and a decrease in net loan charge-offs of $2.0 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. Net loan charge-offs associated with this portfolio were $468,000 and $64,000 for the three and nine months ended September 30, 2013, respectively, as compared to net loan recoveries of $2.4 million and net loan charge-offs of $2.1 million for the comparable periods in 2012;

• A decrease in net loan charge-offs associated with our real estate construction and development portfolio of $4.5 million and $8.5 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. Net loan recoveries associated with this portfolio were $2.6 million and $3.8 million for the three and nine months ended September 30, 2013, respectively, as compared to net loan charge-offs of $2.0 million and $4.7 million for the comparable periods in 2012. Net loan recoveries for the third quarter of 2013 include a $2.2 million recovery associated with the payoff of a $29.6 million credit relationship in our Northern California region; and

• An increase in net loan charge-offs associated with our commercial real estate portfolio of $236,000 and a decrease in net loan charge-offs of $2.9 million for the three and nine months ended September 30, 2013, respectively, as compared to the comparable periods in 2012. Net loan charge-offs associated with this portfolio were $2.0 million and $3.4 million for the three and nine months ended September 30, 2013, respectively, as compared to net loan charge-offs of $1.8 million and $6.4 million for the comparable periods in 2012. Net loan charge-offs for the third quarter of 2013 include a $2.1 million

60

charge-off associated with the transfer of a $13.5 million potential problem loan in our Southern California region to nonaccrual status.

The following table summarizes the composition of our net loan charge-offs (recoveries) by region / business segment for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Mortgage Division	$	1,032		3,098		4,896		6,217
Florida	281			780		1,586		1,775
Northern California	(2,059		)	1,035		(2,161	)	4,146
Southern California	1,328			1,240		1,422		4,164
Chicago	105			759		422		694
Missouri	277			(2,829	)	997		1,771
Texas	(44		)	(17	)	(274	)	974
Northern and Southern Illinois	343			971		1,021		2,848
Other	93			988		(584	)	2,919
Total net loan charge-offs	$	1,356		6,025		7,325		25,508

We continue to closely monitor our loan portfolio and address the ongoing challenges posed by the weakened economic environment that has directly impacted and continues to impact many of our market segments. Specifically, we continue to focus on loan portfolio segments in which we have experienced significant loan charge-offs, such as real estate construction and development and one-to-four-family residential, and on loan portfolio segments that could generate additional loan charge-offs in the future, such as commercial real estate and commercial and industrial. We consider these factors in our overall assessment of the adequacy of our allowance for loan losses.

Each month, the credit administration department provides management with detailed lists of loans on the watch list and summaries of the entire loan portfolio by risk rating. These are coupled with analyses of changes in the risk profile of the portfolio, changes in past-due and nonperforming loans and changes in watch list and classified loans over time. In this manner, we continually monitor the overall increases or decreases in the level of risk in our loan portfolio. Factors are applied to the loan portfolio for each category of loan risk to determine acceptable levels of allowance for loan losses. Furthermore, management has implemented additional procedures to analyze concentrations in our real estate portfolio in light of economic and market conditions. These procedures include enhanced reporting to track land, lot, construction and finished inventory levels within our real estate construction and development portfolio. In addition, a quarterly evaluation of each lending unit is performed based on certain factors, such as lending personnel experience, recent credit reviews, loan concentrations and other factors. Based on this evaluation, changes to the allowance for loan losses may be required due to the perceived risk of particular portfolios. In addition, management exercises a certain degree of judgment in its analysis of the overall adequacy of the allowance for loan losses. In its analysis, management considers the changes in the portfolio, including growth, composition, the ratio of net loans to total assets, and the economic conditions of the regions in which we operate. Based on this quantitative and qualitative analysis, adjustments are made to the allowance for loan losses. Such adjustments are reflected in our consolidated statements of operations.

We record charge-offs on nonperforming loans typically within 30 to 90 days of the credit relationship reaching nonperforming loan status. We measure impairment and the resulting charge-off amount based primarily on third party appraisals. As such, rather than carrying specific reserves on nonperforming loans, we generally recognize a loan loss through a charge to the allowance for loan losses once the credit relationship reaches nonperforming loan status.

The allocation of the allowance for loan losses by loan category is a result of the application of our risk rating system augmented by historical loss data by loan type and other qualitative analysis. Consequently, the distribution of the allowance for loan losses will change from period to period due to the following factors:

• Changes in the aggregate loan balances by loan category;

• Changes in the identified risk in individual loans in our loan portfolio over time, excluding those homogeneous categories of loans such as consumer and installment loans and residential real estate mortgage loans for which risk ratings are changed based on payment performance;

• Changes in historical loss data as a result of recent charge-off experience by loan type; and

• Changes in qualitative factors such as changes in economic conditions, the volume of nonaccrual and potential problem loans by loan category and geographical location, and changes in the value of the underlying collateral for collateral-dependent loans.

61

The following table is a summary of the allocation for loan losses to loans by category as of September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
Commercial, financial and agricultural	2.40	%	2.22	%
Real estate construction and development	7.18		8.25
Real estate mortgage:
One-to-four-family residential loans	3.76		3.94
Multi-family residential loans	4.03		4.10
Commercial real estate loans	2.20		2.07
Consumer and installment	1.61		2.08
Total	3.02		3.13

The changes in the percentage of the allocated allowance for loan losses to loans in these portfolio segments are reflective of changes in the overall level of special mention loans, potential problem loans, performing TDRs and nonaccrual loans within each of these portfolio segments, in addition to other qualitative and quantitative factors, including loan growth in certain portfolio segments.

INTERESTRATERISKMANAGEMENT

The maintenance of a satisfactory level of net interest income is a primary factor in our ability to achieve acceptable income levels. However, the maturity and repricing characteristics of our loan and investment portfolios may differ significantly from those within our deposit structure. The nature of the loan and deposit markets within which we operate, and our objectives for business development within those markets at any point in time, influence these characteristics. In addition, the ability of borrowers to repay loans and the possibility of depositors withdrawing funds prior to stated maturity dates introduces divergent option characteristics that fluctuate as interest rates change. These factors cause various elements of our balance sheet to react in different manners and at different times relative to changes in interest rates, potentially leading to increases or decreases in net interest income over time. Depending upon the direction and magnitude of interest rate movements and their effect on the specific components of our balance sheet, the effects on net interest income can be substantial. Consequently, it is critical that we establish effective control over our exposure to changes in interest rates. We strive to manage our interest rate risk by:

• Maintaining an Asset Liability Committee, or ALCO, responsible to our Board of Directors and Executive Management, to review the overall interest rate risk management activity and approve actions taken to reduce risk;

• Employing a financial simulation model to determine our exposure to changes in interest rates;

• Coordinating the lending, investing and deposit-generating functions to control the assumption of interest rate risk; and

• Utilizing various financial instruments, including derivatives, to offset inherent interest rate risk should it become excessive.

The objective of these procedures is to limit the adverse impact that changes in interest rates may have on our net interest income.

The ALCO has overall responsibility for the effective management of interest rate risk and the approval of policy guidelines. The ALCO includes our President and Chief Executive Officer, Chief Financial Officer, Controller, Chief Investment Officer, the Acting Chief Credit Officer, Chief Banking Officer, Director of Risk Management and Audit, and certain other senior officers. The Asset Liability Management Group, which monitors interest rate risk, supports the ALCO, prepares analyses for review by the ALCO and implements actions that are either specifically directed by the ALCO or established by policy guidelines.

In managing sensitivity, we strive to reduce the adverse impact on earnings by managing interest rate risk within internal policy constraints. Our policy is to manage exposure to potential risks associated with changing interest rates by maintaining a balance sheet posture in which annual net interest income is not significantly impacted by reasonably possible near-term changes in interest rates. To measure the effect of interest rate changes, we project our net income over a two-year horizon on a pro forma basis. The analysis assumes various scenarios for increases and decreases in interest rates including both instantaneous and gradual, and parallel and non-parallel, shifts in the yield curve, in varying amounts. For purposes of arriving at reasonably possible near-term changes in interest rates, we include scenarios based on actual changes in interest rates, which have occurred over a two-year period, simulating both a declining and rising interest rate scenario.

We are “asset-sensitive,” indicating that our assets would generally re-price with changes in interest rates more rapidly than our liabilities, and our simulation model indicates a loss of projected net interest income should interest rates decline. While a decline in interest rates of less than 50 basis points was projected to have a relatively minimal impact on our net interest income, an instantaneous parallel decline in the interest yield curve of 50 basis points indicates a pre-tax projected loss of approximately 6.9% of net interest income, based on assets and liabilities at September 30, 2013. At September 30, 2013, we remain in an asset-sensitive position and thus, remain subject to a higher level of risk in a declining interest rate environment. Although we do not anticipate that instantaneous shifts in the yield curve, as projected in our simulation model, are likely, these are indications of the effects that changes in interest rates would have over time. Our asset-sensitive position, coupled with the effect of significant declines in

62

interest rates that began in late 2007 and continued throughout 2008 and 2009 to historically low levels that remain prevalent in the current marketplace, and the overall level of our nonperforming assets, has negatively impacted our net interest income and is expected to continue to impact the level of our net interest income throughout the near future.

We also prepare and review a more traditional interest rate sensitivity position in conjunction with the results of our simulation model. The following table presents the projected maturities and periods to repricing of our rate sensitive assets and liabilities as of September 30, 2013, adjusted to account for anticipated prepayments:

	Three Months or Less			Over Three through Six Months		Over Six through Twelve Months		Over One through Five Years	Over Five Years	Total
	(dollars expressed in thousands)
Interest-earning assets:
Loans (1)	$	1,334,940		157,372		268,266		853,932	172,420	2,786,930
Investment securities	86,989			81,367		160,126		1,238,140	801,969	2,368,591
FRB and FHLB stock	27,137			—		—		—	—	27,137
Short-term investments	579,123			—		—		—	—	579,123
Total interest-earning assets	$	2,028,189		238,739		428,392		2,092,072	974,389	5,761,781
Interest-bearing liabilities:
Interest-bearing demand deposits	$	250,823		155,917		101,685		74,569	94,906	677,900
Money market deposits	1,567,231			—		—		—	—	1,567,231
Savings deposits	48,457			39,905		34,204		48,456	114,015	285,037
Time deposits	317,195			211,480		268,942		282,957	85	1,080,659
Other borrowings	37,077			—		—		—	—	37,077
Subordinated debentures	282,481			—		—		—	71,710	354,191
Total interest-bearing liabilities	$	2,503,264		407,302		404,831		405,982	280,716	4,002,095
Interest-sensitivity gap:
Periodic	$	(475,075	)	(168,563	)	23,561		1,686,090	693,673	1,759,686
Cumulative	(475,075		)	(643,638	)	(620,077	)	1,066,013	1,759,686
Ratio of interest-sensitive assets to interest-sensitive liabilities:
Periodic	0.81			0.59		1.06		5.15	3.47	1.44
Cumulative	0.81			0.78		0.81		1.29	1.44

____________________

(1) Loans are presented net of net deferred loan fees.

Management made certain assumptions in preparing the foregoing table. These assumptions included:

• Loans will repay at projected repayment rates;

• Mortgage-backed securities, included in investment securities, will repay at projected repayment rates;

• Interest-bearing demand accounts and savings deposits will behave in a projected manner with regard to their interest rate sensitivity; and

• Fixed maturity deposits will not be withdrawn prior to maturity.

A significant variance in actual results from one or more of these assumptions could materially affect the results reflected in the foregoing table.

We were in an overall asset-sensitive position of $1.76 billion, or 28.2% of our total assets at September 30, 2013. We were in an overall liability-sensitive position on a cumulative basis through the twelve-month time horizon of $620.1 million, or 9.9% of our total assets at September 30, 2013.

The interest-sensitivity position is one of several measurements of the impact of interest rate changes on net interest income. Its usefulness in assessing the effect of potential changes in net interest income varies with the constant change in the composition of our assets and liabilities and changes in interest rates. For this reason, we place greater emphasis on our simulation model for monitoring our interest rate risk exposure.

As previously discussed, we utilize derivative instruments to assist in our management of interest rate sensitivity by modifying the repricing, maturity and option characteristics of certain assets and liabilities. We also sell interest rate swap agreement contracts to certain customers who wish to modify their interest rate sensitivity. We offset the interest rate risk of these swap agreements by simultaneously purchasing matching interest rate swap agreement contracts with offsetting pay/receive rates from other financial institutions. Because of the matching terms of the offsetting contracts, the net effect of the changes in the fair value of the paired swaps is minimal.

63

The derivative instruments we held as of September 30, 2013 and December 31, 2012 are summarized as follows:

	September 30, 2013			December 31, 2012
	Notional Amount		Credit Exposure	Notional Amount	Credit Exposure
	(dollars expressed in thousands)
Customer interest rate swap agreements	$	8,731	26	12,149	115
Interest rate lock commitments	27,118		743	59,932	1,837
Forward commitments to sell mortgage-backed securities	39,300		—	107,700	—

The notional amounts of our derivative instruments do not represent amounts exchanged by the parties and, therefore, are not a measure of our credit exposure through our use of these instruments. The credit exposure represents the loss we would incur in the event the counterparties failed completely to perform according to the terms of the derivative instruments and the collateral held to support the credit exposure was of no value.

Our derivative instruments are more fully described in Note 7 to our consolidated financial statements.

LIQUIDITYMANAGEMENT

First Bank. Our liquidity is the ability to maintain a cash flow that is adequate to fund operations, service debt obligations and meet obligations and other commitments on a timely basis. First Bank receives funds for liquidity from customer deposits, loan payments, maturities of loans and investments, sales of investments and earnings before provision for loan losses. In addition, we may avail ourselves of other sources of funds by issuing certificates of deposit in denominations of $100,000 or more (including certificates issued through the Certificate of Deposit Account Registry Service, or CDARS program), selling securities under agreements to repurchase, and utilizing borrowings from the FHLB, the FRB and other borrowings.

As a financial intermediary, we are subject to liquidity risk. We closely monitor our liquidity position through our Liquidity Management Committee and we continue to implement actions deemed necessary to maintain an appropriate level of liquidity in light of ongoing unstable market conditions, changes in loan funding needs, operating and debt service requirements, current deposit trends and events that may occur in conjunction with our Capital Plan. We continue to seek opportunities to improve our overall liquidity position, and we maintain an efficient collateral management process that allows us to maximize our overall collateral position related to our alternative borrowing sources. In conjunction with our liquidity management process, we analyze and manage short-term and long-term liquidity through an ongoing review of internal funding sources, projected cash flows from loans, securities and customer deposits, internal and competitor deposit pricing structures and maturity profiles of current borrowing sources. We utilize planning, management reporting and adverse stress scenarios to monitor sources and uses of funds on a daily basis to assess cash levels to ensure adequate funds are available to meet normal business operating requirements and to supplement liquidity needs to meet unusual demands for funds that may result from an unexpected change in customer deposit levels or potential planned or unexpected liquidity events that may arise from time to time.

First Bank continues to maintain a significant amount of available balance sheet liquidity to provide funds for future loan growth initiatives and in anticipation of the expected sale of our ABS line of business, which is expected to be completed during the fourth quarter of 2013 and require a cash outlay of approximately $480.0 million. Our cash and cash equivalents were $714.2 million and $518.8 million at September 30, 2013 and December 31, 2012, respectively. The majority of these funds were maintained in our correspondent bank account with the FRB. The increase in our cash and cash equivalents of $195.3 million is further discussed under “— Financial Condition.”

Our unpledged investment securities decreased$413.4 million to $2.01 billion at September 30, 2013, from $2.42 billion at December 31, 2012, and are mostly comprised of highly liquid and readily marketable available-for-sale investment securities. The combined level of cash and cash equivalents and unpledged investment securities provided us with total available liquidity of $2.72 billion and $2.94 billion at September 30, 2013 and December 31, 2012, respectively. Our available liquidity of $2.72 billion represents 43.7% of total assets at September 30, 2013, in comparison to $2.94 billion, or 45.2% of total assets, at December 31, 2012. Our loan-to-deposit ratio increased to 57.6% at September 30, 2013 from 53.4% at December 31, 2012, primarily as a result of the reclassification of $549.1 million of deposits associated with our ABS line of business to liabilities of discontinued operations at September 30, 2013.

During the first quarter of 2013, we reclassified certain of our available-for-sale investment securities to held-to-maturity investment securities at their respective fair values, which totaled $242.5 million in aggregate, as further described in Note 3 to our consolidated financial statements. The net gross unrealized gain on these available-for-sale investment securities at the time of transfer was $5.0 million, in aggregate, and was recorded as additional premium on the investment securities and is being amortized over the remaining lives of the respective securities. The unrealized gain included as a component of accumulated other comprehensive income at the time of transfer was $2.8 million, in aggregate, net of tax of $2.2 million, in aggregate. The amortization of the unrealized gain reported in stockholders' equity is being amortized as an adjustment to interest income on investment securities over the remaining lives of the respective securities. Consequently, the combined amortization of the additional premium and the

64

unrealized gain have no impact on interest income on investment securities. The determination of the reclassification was made by management based on our current and expected future liquidity levels and the resulting intent to hold those investment securities to maturity.

During the first nine months of2013, we reduced our aggregate funds acquired from other sources of funds by $51.5 million to $435.3 million at September 30, 2013, from $486.8 million at December 31, 2012. These other sources of funds include certificates of deposit of $100,000 or more and other borrowings, which are comprised of daily securities sold under agreements to repurchase. The decrease was attributable to a reduction in certificates of deposit of $100,000 or more of $62.5 million, partially offset by an increase in our daily repurchase agreements of $11.1 million. The reduction in certificates of deposit of $100,000 or more was primarily attributable to a planned reduction of higher rate, single-service certificate of deposit relationships. The following table presents the maturity structure of these other sources of funds at September 30, 2013:

	Certificates of Deposit of $100,000 or More		Other Borrowings	Total
	(dollars expressed in thousands)
Three months or less	$	118,626	37,077	155,703
Over three months through six months	74,566		—	74,566
Over six months through twelve months	90,336		—	90,336
Over twelve months	114,731		—	114,731
Total	$	398,259	37,077	435,336

In addition to these sources of funds, First Bank has established a borrowing relationship with the FRB. First Bank's borrowing capacity through its relationship with the FRB was approximately $301.6 million and $344.0 million at September 30, 2013 and December 31, 2012, respectively. This borrowing relationship, which is secured primarily by commercial loans, provides an additional liquidity facility that may be utilized for contingency liquidity purposes. First Bank did not have any FRB borrowings outstanding at September 30, 2013 or December 31, 2012.

First Bank also has a borrowing relationship with the FHLB. First Bank's borrowing capacity through its relationship with the FHLB was approximately $394.4 million and $363.2 million at September 30, 2013 and December 31, 2012, respectively. The borrowing relationship is secured by one-to-four-family residential, multi-family residential and commercial real estate loans. First Bank requests advances and/or repays advances from the FHLB based on its current and future projected liquidity needs. First Bank did not have any FHLB advances outstanding at September 30, 2013 or December 31, 2012.

As a means of further contingency funding, First Bank may use broker dealers to acquire deposits to fund both short-term and long-term funding needs, including brokered money market accounts, and has available funding, subject to certain limits, through the CDARS program. Exclusive of the CDARS program, First Bank does not generally utilize broker dealers to acquire deposits.

We believe First Bank has sufficient liquidity to meet its current and future near-term liquidity needs; however, no assurance can be made that First Bank's liquidity position will not be materially, adversely affected in the future.

First Banks, Inc. First Banks, Inc. is a separate and distinct legal entity from its subsidiaries. The Company's liquidity position is affected by dividends received from its subsidiaries and the amount of cash and other liquid assets on hand, payment of interest and dividends on debt and equity instruments issued by the Company (all of which are presently suspended or deferred), capital contributions the Company makes into its subsidiaries, any redemption of debt for cash issued by the Company, and proceeds the Company raises through the issuance of debt and/or equity instruments, if any. The Company's unrestricted cash totaled $2.0 million and $2.7 million at September 30, 2013 and December 31, 2012, respectively.

On March 20, 2013, the Company entered into a Revolving Credit Note and a Stock Pledge Agreement with Investors of America Limited Partnership, or Investors of America, LP, as further described in Note 8 and Note 16 to our consolidated financial statements. The agreement provides for a $5.0 million secured revolving line of credit to be utilized for general working capital needs and replaced a previous credit agreement that matured on December 31, 2012. This borrowing arrangement, which has a maturity date of March 31, 2014 and an interest rate of LIBOR plus 300 basis points, 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 this borrowing arrangement since its inception.

We cannot be assured of our ability to access future liquidity through debt markets. The Company's ability to access debt markets on terms satisfactory to us will depend on our financial performance and conditions in the capital markets, economic conditions and a number of other factors, many of which are outside of our control.

Additional long-term funding is provided by our junior subordinated debentures, as further described in Note 9 to our consolidated financial statements. As of September 30, 2013, we had 13 affiliated Delaware or Connecticut statutory and business trusts that were created for the sole purpose of issuing trust preferred securities. The sole assets of the statutory and business trusts are our junior subordinated debentures.

65

We agreed, among other things, not to pay any dividends on our common or preferred stock or make any distributions of interest or other sums on our trust preferred securities without the prior approval of the FRB, as previously discussed under “Overview —Regulatory Agreements.”

In August, 2009, we announced the deferral of our regularly scheduled interest payments on our outstanding junior subordinated debentures relating to our $345.0 million of trust preferred securities beginning with the regularly scheduled quarterly interest payments that would otherwise have been made in September and October, 2009. The terms of the junior subordinated debentures and the related trust indentures allow us to defer such payments of interest for up to 20 consecutive quarterly periods without triggering a payment default or penalty. The current allowable 20 consecutive quarterly deferral period ends with the respective payment dates of the trust preferred securities in September and October, 2014. Thus, unless we resume payment of interest on our junior subordinated debentures relating to our trust preferred securities and pay all cumulative interest that has been deferred by the respective payment dates of the trust preferred securities in September and October, 2014, the Company will trigger a payment default or penalty, and the trustee under the indentures will have the right and may elect to declare the entire outstanding amount of both principal and interest immediately due and payable. Such payment default or penalty would have a material adverse effect on our business, financial condition and results of operations.

The Company has deferred such payments for 17 quarterly periods as of September 30, 2013. These deferred payments aggregated $58.9 million at September 30, 2013, as more fully described in Note 9 to our consolidated financial statements. The Company currently lacks the source of income and the liquidity to make interest payments on the subordinated debentures associated with its trust preferred securities. Given restrictions placed upon First Bank, including regulatory restrictions, it may not be able to provide the Company with dividends in an amount sufficient to pay the cumulative deferred interest by the respective payment dates of the trust preferred securities in September and October, 2014. In such case, the Company would have to pursue alternative funding sources, but there can be no assurance that the Company will be able to identify and obtain alternative funding due to the uncertainty that such alternative funding sources would be available to the Company on terms and conditions that are acceptable to the Company.

During the deferral period, we may not, among other things and with limited exceptions, pay cash dividends on or repurchase our common stock or preferred stock nor make any payment on outstanding debt obligations that rank equally with or junior to our junior subordinated debentures. Accordingly, we also suspended the payment of cash dividends on our outstanding common stock and preferred stock beginning with the regularly scheduled quarterly dividend payments on our preferred stock that would otherwise have been made in August and September, 2009, as further described in Note 10 to our consolidated financial statements. We have declared and deferred $68.4 million of regularly scheduled dividend payments on our Class C Preferred Stock and Class D Preferred Stock, and have declared and accrued an additional $8.4 million of cumulative dividends on such deferred dividend payments at September 30, 2013. As such, the aggregate amount of these deferred and accrued dividend payments was $76.8 million at September 30, 2013.

The Company's financial position will be adversely affected if it experiences increased liquidity needs and any of the following events occur:

• First Bank continues to be unable or prohibited by its regulators to pay a dividend to the Company sufficient to satisfy the Company's operating cash flow needs. The Company's ability to receive future dividends from First Bank to assist the Company in meeting its operating requirements, both on a short-term and long-term basis, is currently subject to regulatory approval, as further described above and under “Overview —Regulatory Agreements;”

• We deem it advisable, or are required by regulatory authorities, to use cash maintained by the Company to support the capital position of First Bank;

• First Bank fails to remain “well-capitalized” and, accordingly, First Bank is required to pledge additional collateral against its borrowings and is unable to do so. As discussed above, First Bank has no outstanding borrowings at September 30, 2013, with the exception of $37.1 million of daily repurchase agreements utilized by customers as an alternative deposit product, and has substantial borrowing capacity through its relationships with the FHLB and the FRB, as previously discussed; or

• The Company has difficulty raising cash through the future issuance of debt or equity instruments or by accessing additional sources of credit, as further described above.

• The Company continues to be unable or prohibited by its regulators to make any interest payments on its outstanding junior subordinated debentures.The Company is unable to predict whether or when the FRB will grant approval to the Company to make any such interest payments. As such, if the Company triggers a payment default or penalty, and the trustee under the indentures elects to declare the entire outstanding amount of both principal and interest immediately due and payable, the Company may not be able to meet its financial commitments and related contractual obligations associated with its junior subordinated debentures.

The Company's financial flexibility will be severely constrained if we are unable to maintain our access to funding or if adequate financing on terms acceptable to us is not available in the marketplace. If we are required to rely more heavily on more expensive funding sources to support our business, our revenues may not increase proportionately to cover our costs. In this case, our operating

66

margins would be materially adversely affected. A lack of liquidity and/or cost-effective funding alternatives could lead to the Company's inability to meet its financial commitments and related contractual obligations associated with its junior subordinated debentures, which would have a material adverse affect on our business, financial condition and results of operations.

Other Commitments and Contractual Obligations. We have entered into long-term leasing arrangements and other commitments and contractual obligations in conjunction with our ongoing operating activities. The required payments under such leasing arrangements, other commitments and contractual obligations at September 30, 2013 were as follows:

	Less Than 1 Year		1-3 Years	3-5 Years	Over 5 Years	Total (1)
	(dollars expressed in thousands)
Operating leases	$	8,727	12,799	6,876	11,612	40,014
Certificates of deposit (2)	796,631		245,978	37,965	85	1,080,659
Other borrowings	37,077		—	—	—	37,077
Subordinated debentures (3)	—		—	—	354,191	354,191
Preferred stock issued under the CPP (3) (4)	—		—	—	310,170	310,170
Other contractual obligations	366		6	—	—	372
Total	$	842,801	258,783	44,841	676,058	1,822,483

____________________

(1) Amounts exclude ASC Topic 740 unrecognized tax liabilities of $858,000 and related accrued interest expense of $133,000 for which the timing of payment of such liabilities cannot be reasonably estimated as of September 30, 2013.

(2) Amounts exclude the related accrued interest expense on certificates of deposit of $381,000 as of September 30, 2013.

(3) Amounts exclude the accrued interest expense on junior subordinated debentures and the accrued dividends declared and undeclared on preferred stock issued under the CPP of $59.0 million and $76.8 million, respectively, as of September 30, 2013. As further described under “Overview – Regulatory Agreements,” we currently may not make any distributions of interest or other sums on our junior subordinated debentures and related underlying trust preferred securities without the prior approval of the FRB.

(4) Represents amounts payable upon redemption of the Class C Preferred Stock and the Class D Preferred Stock issued under the CPP of $295.4 million and $14.8 million, respectively.

EFFECTS OFNEWACCOUNTINGSTANDARDS

In July 2012, the FASB issued ASU 2012-02 - Intangibles - Goodwill and Other (Topic 350) - Testing Indefinite-Lived Intangible Assets for Impairment. The provisions of this ASU permit an entity to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform a quantitative impairment test in accordance with Subtopic 350-30, Intangibles - Goodwill and Other - General Intangibles Other Than Goodwill. This ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. We adopted the requirements of this ASU on January 1, 2013, which did not have a material impact on our consolidated financial statements or results of operations or the disclosures presented in our consolidated financial statements.

In October 2012, the FASB issued ASU 2012-06 - Business Combinations (Topic 805) - Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution (a consensus of the FASB Emerging Issues Task Force). This ASU clarifies the applicable guidance for subsequently measuring an indemnification asset recognized as a result of a government-assisted acquisition of a financial institution. Under this ASU, when a reporting entity recognizes an indemnification asset as a result of a government-assisted acquisition of a financial institution and, subsequently, a change in the cash flows expected to be collected on the indemnification asset occurs (as a result of a change in cash flows expected to be collected on the assets subject to indemnification), the reporting entity should subsequently account for the change in the measurement of the indemnification asset on the same basis as the change in the assets subject to indemnification. Any amortization of changes in value should be limited to the contractual term of the indemnification agreement (that is, the lesser of the term of the indemnification agreement and the remaining life of the indemnified assets). This ASU is effective for interim and annual periods beginning after December 15, 2012, and is required to be applied prospectively. We adopted the requirements of this ASU on January 1, 2013, which did not have a material impact on our consolidated financial statements or results of operations or the disclosures presented in our consolidated financial statements.

In February 2013, the FASB issued ASU 2013-02 -Comprehensive Income (ASC Topic 220)-Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU requires an entity to provide, either on the face of the statement where net income is presented or in the notes to financial statements, information about the amounts reclassified out of accumulated other comprehensive income by component. An entity is required to include significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. Amounts not required under GAAP to be reclassified in their entirety to net income are required to be cross-referenced to other disclosures required under GAAP that provide additional detail on those amounts. The amendments of this ASU are effective for interim and annual periods beginning after December 15, 2012, and are required to be applied prospectively. We adopted the requirements of this ASU on January 1, 2013, which did not have a

67

material impact on our consolidated financial statements or results of operations or the disclosures presented in our consolidated financial statements.

In July 2013, the FASB issued ASU 2013-11 - Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU clarifies guidance to eliminate diversity in practice on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exists at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this ASU do not require new recurring financial disclosures. This ASU is effective for interim and annual periods beginning after December 15, 2013. Early adoption is permitted. We are currently evaluating the requirements of this ASU and its impact on our consolidated financial statements, results of operations and the disclosures presented in our consolidated financial statements.

ITEM3–QUANTITATIVE ANDQUALITATIVEDISCLOSURES ABOUTMARKETRISK

The quantitative and qualitative disclosures about market risk are included under “Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations — Interest Rate Risk Management,” appearing on pages 62 through 64 of this report.

ITEM4–CONTROLS ANDPROCEDURES

The Company’s management, including our President and Chief Executive Officer and our Chief Financial Officer, have evaluated the effectiveness of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, or the Exchange Act), as of the end of the period covered by this report. Based on such evaluation, our President and Chief Executive Officer and our Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective as of that date to provide reasonable assurance that the information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that information required to be disclosed by the Company in the reports its files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its President and Chief Executive Officer and its Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

68

PART II – OTHER INFORMATION

ITEM1–LEGALPROCEEDINGS

The information required by this item is set forth in Part I, Item 1 – Financial Statements, under Note 17, Contingent Liabilities, to our consolidated financial statements appearing elsewhere in this report and is incorporated herein by reference.

In the ordinary course of business, we and our subsidiaries become involved in legal proceedings, including litigation arising out of our efforts to collect outstanding loans. It is not uncommon for collection efforts to lead to so-called “lender liability” suits in which borrowers may assert various claims against us. From time to time, we are party to other legal matters arising in the normal course of business. While some matters pending against us specify damages claimed by plaintiffs, others do not seek a specified amount of damages or are at very early stages of the legal process. We record a loss accrual for all legal matters for which we deem a loss is probable and can be reasonably estimated. We are not presently party to any legal proceedings the resolution of which we believe would have a material adverse effect on our business, financial condition or results of operations.

The Company and First Bank entered into agreements with the FRB and MDOF, as further described under “Item 2 —Management’s Discussion and Analysis of Financial Condition and Results of Operations —Regulatory Agreements” and in Note 11 to our consolidated financial statements.

ITEM1A–RISKFACTORS

Readers of our Quarterly Report on Form 10-Q should consider certain risk factors in conjunction with the other information included in this Quarterly Report on Form 10-Q. Refer to “Item 1A — Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2012 for a discussion of these risks.

The Company, SFC and First Bank entered into an Agreement with the FRB. As further described under "Management's Discussion and Analysis of Financial Condition and Results of Operations — Overview and Recent Developments — Regulatory Agreements," the Company, SFC and First Bank entered into an Agreement with the FRB on March 24, 2010. Although we cannot predict the ramifications that would result from the failure to comply with each of the provisions of the Agreement, the failure to comply could have a material adverse effect on our business, financial condition, results of operations and cash flows. Furthermore, under the Agreement, the Company, SFC and First Bank must receive approval from the FRB prior to paying any dividends on capital stock or making any interest payments on the Company's outstanding junior subordinated debentures, which represent the source of distributions to holders of trust preferred securities.

As noted above and as further described in Note 11 to the Company's consolidated financial statements, the Company continues to be subject to the Agreement, which restricts the Company's ability to make any interest payments on the Company's outstanding junior subordinated debentures. The Company is unable to predict whether or when the FRB will grant approval to the Company to make any such interest payments. As further described in Note 9 to the Company's consolidated financial statements and under "Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity Management," if the Company is unable to resume payment of interest on its junior subordinated debentures relating to its trust preferred securities and pay all cumulative interest that has been deferred by the respective payment dates of the trust preferred securities in September and October, 2014, the Company will trigger a payment default or penalty, and the trustee under the indentures will have the right and may elect to declare the entire outstanding amount of both principal and interest immediately due and payable. As such, if the Company triggers a payment default or penalty, and the trustee under the indentures elects to declare the entire outstanding amount of both principal and interest immediately due and payable, there is a substantial risk that the Company would not be able to meet its financial commitments and related contractual obligations associated with its junior subordinated debentures, which would have a material adverse effect on our business, financial condition and results of operations. 

69

ITEM6–EXHIBITS

The exhibits are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K.

Exhibit Number	Description
31.1	Rule 13a-14(a) / 15d-14(a) Certifications of Chief Executive Officer – filed herewith.
31.2	Rule 13a-14(a) / 15d-14(a) Certifications of Chief Financial Officer – filed herewith.
32.1	Section 1350 Certifications of Chief Executive Officer – furnished herewith.
32.2	Section 1350 Certifications of Chief Financial Officer – furnished herewith.
101	Financial information from the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2013, formatted in XBRL interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statements of Comprehensive Income (Loss); (iv) Consolidated Statements of Changes in Stockholders’ Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements – furnished herewith.

70

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: November 8, 2013

FIRST BANKS, INC.
By:	/s/	Terrance M. McCarthy
		Terrance M. McCarthy
		President and Chief Executive Officer
		(Principal Executive Officer)
By:	/s/	Lisa K. Vansickle
		Lisa K. Vansickle
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

71

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS REQUIRED BY

RULE 13a-14(a) OR RULE 15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Terrance M. McCarthy, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q (the “Report”) of First Banks, Inc. (the “Registrant”);

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report;

4. The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

d) Disclosed in this Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: November 8, 2013

FIRST BANKS, INC.
By:	/s/	Terrance M. McCarthy
		Terrance M. McCarthy
		President and Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS REQUIRED BY

RULE 13a-14(a) OR RULE 15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Lisa K. Vansickle, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q (the “Report”) of First Banks, Inc. (the “Registrant”);

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report;

4. The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

d) Disclosed in this Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: November 8, 2013

FIRST BANKS, INC.
By:	/s/	Lisa K. Vansickle
		Lisa K. Vansickle
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350

I, Terrance M. McCarthy, President and Chief Executive Officer of First Banks, Inc. (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1) The Quarterly Report on Form 10-Q of the Company for the quarterly period ended September 30, 2013 (the “Report”) fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 8, 2013

By:	/s/	Terrance M. McCarthy
		Terrance M. McCarthy
		President and Chief Executive Officer
		(Principal Executive Officer)

EX-32.2

EXHIBIT 32.2

CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350

I, Lisa K. Vansickle, Executive Vice President and Chief Financial Officer of First Banks, Inc. (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1) The Quarterly Report on Form 10-Q of the Company for the quarterly period ended September 30, 2013 (the “Report”) fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 8, 2013

By:	/s/	Lisa K. Vansickle
		Lisa K. Vansickle
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

XML

INCOME TAXES (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Gross deferred tax assets	$ 407,292	$ 405,266
Valuation allowance	(391,559)	(376,224)
Deferred tax assets, net of valuation allowance	15,733	29,042
Deferred tax liabilities	23,166	36,182
Net deferred tax liabilities	$ (7,433)	$ (7,140)

XML

EARNINGS (LOSS) PER COMMON SHARE (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Class of Stock [Line Items]
Net income from continuing operations attributable to First Banks, Inc.	$ 6,741	$ 10,655	$ 28,312	$ 29,642
Preferred stock dividends declared and undeclared	(5,013)	(4,753)	(14,841)	(14,070)
Accretion of discount on preferred stock	(919)	(893)	(2,725)	(2,660)
Net income from continuing operations attributable to common stockholders	809	5,009	10,746	12,912
Net loss from discontinued operations attributable to common stockholders	(881)	(2,182)	(6,279)	(6,763)
Net (loss) income available to common stockholders	(72)	2,827	4,467	6,149
Weighted average shares of common stock outstanding (in shares)	23,661	23,661	23,661	23,661
Basic earnings per common share - continuing operations (in dollars per share)	$ 34.19	$ 211.70	$ 454.17	$ 545.72
Basic loss per common share - discontinued operations (in dollars per share)	$ (37.23)	$ (92.22)	$ (265.37)	$ (285.83)
Basic (loss) earnings per common share (in dollars per share)	$ (3.04)	$ 119.48	$ 188.80	$ 259.89
Net income from continuing operations attributable to common stockholders	809	5,009	10,746	12,912
Net loss from discontinued operations attributable to common stockholders	(881)	(2,182)	(6,279)	(6,763)
Diluted (loss) income available to First Banks, Inc. common stockholders	(72)	2,827	4,467	6,149
Weighted average diluted shares of common stock outstanding (in shares)	23,661	23,661	23,661	23,661
Diluted earnings per common share - continuing operations (in dollars per share)	$ 34.19	$ 211.70	$ 454.17	$ 545.72
Diluted loss per common share - discontinued operations (in dollars per share)	$ (37.23)	$ (92.22)	$ (265.37)	$ (285.83)
Diluted (loss) earnings per common share	$ (3.04)	$ 119.48	$ 188.80	$ 259.89
Class A Convertible Adjustable Rate Preferred Stock [Member]
Class of Stock [Line Items]
Effect of dilutive securities – Class A convertible preferred stock	$ 0	$ 0	$ 0	$ 0
Effect of dilutive securities – Class A convertible preferred stock	0	0	0	0

XML

STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’EQUITY

Common Stock. There is no established public trading market for the Company’s common stock. Various trusts, which were established by and are administered by and for the benefit of the Company’s Chairman of the Board and members of his immediate family (including Mr. Michael Dierberg, Vice Chairman of the Company), own all of the voting stock of the Company.

Preferred Stock. The Company has four classes of preferred stock outstanding. The Class A Convertible Adjustable Rate Preferred Stock, or Class A Preferred Stock, is convertible into shares of common stock at a rate based on the ratio of the par value of the preferred stock to the current market value of the common stock at the date of conversion, to be determined by independent appraisal at the time of conversion. Shares of Class A Preferred Stock may be redeemed by the Company at any time at 105.0% of par value. The Class B Non-Convertible Adjustable Rate Preferred Stock, or Class B Preferred Stock, may not be redeemed or converted. The holders of the Class A and Class B Preferred Stock have full voting rights. Dividends on the Class A and Class B Preferred Stock are adjustable quarterly based on the highest of the Treasury Bill Rate or the Ten Year Constant Maturity Rate for the two-week period immediately preceding the beginning of the quarter. This rate shall not be less than 6.0% nor more than 12.0% on the Class A Preferred Stock, or less than 7.0% nor more than 15.0% on the Class B Preferred Stock. Effective August 10, 2009, the Company suspended the declaration of dividends on its Class A and Class B Preferred Stock.

On December 31, 2008, the Company issued 295,400 shares of Class C Fixed Rate Cumulative Perpetual Preferred Stock (Class C Preferred Stock) and 14,770 shares of Class D Fixed Rate Cumulative Perpetual Preferred Stock (Class D Preferred Stock) to the United States Department of the Treasury (U.S. Treasury) in conjunction with the U.S. Treasury’s Troubled Asset Relief Program’s Capital Purchase Program (CPP). The Class C Preferred Stock has a par value of $1.00 per share and a liquidation preference of $1,000 per share. The holders of the Class C Preferred Stock have no voting rights except in certain limited circumstances. The Class C Preferred Stock carries an annual dividend rate equal to 5% for the first five years and the annual dividend rate increases to 9% per annum on and after February 15, 2014, payable quarterly in arrears beginning February 15, 2009. The Class D Preferred Stock has a par value of $1.00 per share and a liquidation preference of $1,000 per share. The holders of the Class D Preferred Stock have no voting rights except in certain limited circumstances. The Class D Preferred Stock carries an annual dividend rate equal to 9%, payable quarterly in arrears beginning February 15, 2009. The Class C Preferred Stock and the Class D Preferred Stock qualify as Tier 1 capital. Effective February 17, 2009, the Class C Preferred Stock and the Class D Preferred Stock may be redeemed at any time without penalty and without the need to raise new capital, subject to consultation with the Company’s primary regulatory agency. The Class D Preferred Stock may not be redeemed until all of the outstanding shares of the Class C Preferred Stock have been redeemed. In addition, prior to the U.S. Treasury's sale of the Class C Preferred Stock and Class D Preferred Stock (as further described below), the U.S. Treasury had certain supervisory and oversight duties and responsibilities under the CPP and, pursuant to the terms of the agreement governing the issuance of the Class C Preferred Stock and the Class D Preferred Stock to the U.S. Treasury (Purchase Agreement), the U.S. Treasury was empowered to unilaterally amend any provision of the Purchase Agreement with the Company to the extent required to comply with any changes in applicable federal statutes. As a result of the Company’s deferral of dividends to the U.S. Treasury for an aggregate of six quarters, the U.S. Treasury had the right to elect two directors to the Company’s Board. On July 13, 2011, the U.S. Treasury elected two members to the Company’s Board of Directors.

During the third quarter of 2013, the U.S. Treasury completed two auctions that resulted in the sale of the Class C Preferred Stock and the Class D Preferred Stock to unaffiliated third party investors. On August 12, 2013, the U.S. Treasury completed its first auction, selling approximately 96% of the Class C Preferred Stock and all of the Class D Preferred Stock. On September 25, 2013, the U.S. Treasury completed its second auction of the remaining 4% of the Class C Preferred Stock. The Company did not receive any proceeds from the sale and the sale did not have any effect on the terms of the outstanding Class C Preferred Stock and Class D Preferred Stock, including the Company's obligation to satisfy accrued and unpaid dividends prior to the payment of any dividend or other distribution to holders of junior or parity stock (including the Company's common stock, Class A Preferred Stock and Class B Preferred Stock), and an increase in the dividend rate on the Class C Preferred Stock from 5% to 9%, commencing with the dividend payment date of February 15, 2014. Furthermore, the sale of the Class C Preferred Stock and the Class D Preferred Stock did not have any effect on the Company's regulatory capital, financial condition or results of operations.

The Company allocated the total proceeds received under the CPP of $295.4 million to the Class C Preferred Stock and the Class D Preferred Stock based on the relative fair values of the respective classes of preferred stock at the time of issuance. The discount on the Class C Preferred Stock of $17.3 million is being accreted to retained earnings on a level-yield basis over five years. Accretion of the discount on the Class C Preferred Stock was $919,000 and $2.7 million for the three and nine months ended September 30, 2013, respectively, compared to $893,000 and $2.7 million for the comparable periods in 2012.

The redemption of any issue of preferred stock requires the prior approval of the Federal Reserve. The Purchase Agreement that the Company entered into with the U.S. Treasury contains limitations on certain actions of the Company, including, but not limited to, payment of dividends and redemptions and acquisitions of the Company’s equity securities. In addition, the Company, under its agreement with the FRB, has agreed, among other things, to provide certain information to the FRB including, but not limited to, notice of plans to materially change its fundamental business and notice to raise additional equity capital. Furthermore, the Company agreed not to pay any dividends on its common or preferred stock without the prior approval of the FRB, as further described in Note 11 to the consolidated financial statements.

In conjunction with the deferral of its regularly scheduled interest payments on its outstanding junior subordinated debentures on August 10, 2009, as further described in Note 9 to the consolidated financial statements, the Company also began suspending the payment of cash dividends on its outstanding preferred stock beginning with the regularly scheduled quarterly dividend payments on the preferred stock that would otherwise have been made in August and September 2009. The Company has deferred such payments for 17 quarterly periods as of September 30, 2013. Consequently, the Company has suspended the declaration of dividends on its Class A and Class B preferred stock, but continues to declare and accumulate dividends on its Class C Preferred Stock and its Class D Preferred Stock. The Company has declared and deferred $68.4 million and $56.3 million of its regularly scheduled dividend payments on its Class C Preferred Stock and Class D Preferred Stock at September 30, 2013 and December 31, 2012, respectively, and has declared and accrued an additional $8.4 million and $5.6 million of cumulative dividends on such deferred dividend payments at September 30, 2013 and December 31, 2012, respectively.

During the first quarter of 2013, the Company reclassified certain of its available-for-sale investment securities to held-to-maturity investment securities at their respective fair values, which totaled $242.5 million, in aggregate, as further described in Note 3 to the consolidated financial statements. The gross unrealized gain on these available-for-sale investment securities at the time of transfer was $5.0 million. The unrealized gain included as a component of accumulated other comprehensive income was $2.8 million at the time of transfer, net of tax of $2.2 million. The fair value adjustment at the time of transfer of $5.0 million was recorded as additional premium on the investment securities, and is being amortized as an adjustment to interest income on investment securities over the remaining lives of the respective securities. The amortization of the unrealized gain reported in stockholders’ equity is also being amortized as an adjustment to interest income on investment securities over the remaining lives of the respective securities. Consequently, the combined amortization of the additional premium and the unrealized gain have no net impact on interest income on investment securities.

Accumulated Other Comprehensive Income. The following table summarizes changes in accumulated other comprehensive income, net of tax, by component, for the three and nine months ended September 30, 2013:

	Investment Securities			Defined Benefit Pension Plan		Deferred Tax Asset Valuation Allowance		Total
				(dollars expressed in thousands)
Three Months Ended September 30, 2013:
Balance, beginning of period	$	15,337		(3,484	)	(2,250	)	9,603
Other comprehensive income (loss) before reclassifications	(1,363		)	30		(1,117	)	(2,450	)
Amounts reclassified from accumulated other comprehensive income (loss)	(60		)	—		—		(60	)
Net current period other comprehensive income (loss)	(1,423		)	30		(1,117	)	(2,510	)
Balance, end of period	$	13,914		(3,454	)	(3,367	)	7,093
Nine Months Ended September 30, 2013:
Balance, beginning of period	$	35,186		(3,544	)	13,617		45,259
Other comprehensive income (loss) before reclassifications	(21,026		)	90		(16,984	)	(37,920	)
Amounts reclassified from accumulated other comprehensive income (loss)	(246		)	—		—		(246	)
Net current period other comprehensive income (loss)	(21,272		)	90		(16,984	)	(38,166	)
Balance, end of period	$	13,914		(3,454	)	(3,367	)	7,093

The following table summarizes changes in accumulated other comprehensive income, net of tax, by component, for the three and nine months ended September 30, 2012:

	Investment Securities			Defined Benefit Pension Plan		Deferred Tax Asset Valuation Allowance		Total
				(dollars expressed in thousands)
Three Months Ended September 30, 2012:
Balance, beginning of period	$	30,971		(2,591	)	5,504		33,884
Other comprehensive income (loss) before reclassifications	2,266			21		7,101		9,388
Amounts reclassified from accumulated other comprehensive income (loss)	(422		)	—		—		(422	)
Net current period other comprehensive income (loss)	1,844			21		7,101		8,966
Balance, end of period	$	32,815		(2,570	)	12,605		42,850
Nine Months Ended September 30, 2012:
Balance, beginning of period	$	19,437		(2,633	)	(738	)	16,066
Other comprehensive income (loss) before reclassifications	14,136			63		13,343		27,542
Amounts reclassified from accumulated other comprehensive income (loss)	(758		)	—		—		(758	)
Net current period other comprehensive income (loss)	13,378			63		13,343		26,784
Balance, end of period	$	32,815		(2,570	)	12,605		42,850

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES - Loans Modified as TDRs that Subsequently Defaulted (Details 7) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013 contracts	Sep. 30, 2012 contracts	Sep. 30, 2013 contracts	Sep. 30, 2012 contracts
Commercial, financial and agricultural [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts	1	0	1	0
Recorded Investment, Subsequently Defaulted	$ 156	$ 0	$ 156	$ 0
Real estate construction and development [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts	0	0	0	3
Recorded Investment, Subsequently Defaulted	0	0	0	1,364
One-to-four-family residential [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts	14	11	43	39
Recorded Investment, Subsequently Defaulted	$ 3,016	$ 2,155	$ 7,937	$ 8,049

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Interest income:
Interest and fees on loans	$ 28,859	$ 34,456	$ 88,917	$ 108,285
Investment securities	12,858	15,235	39,423	43,394
Federal Reserve Bank and Federal Home Loan Bank stock	303	290	913	850
Short-term investments	346	137	831	596
Total interest income	42,366	50,118	130,084	153,125
Interest expense:
Interest-bearing demand	83	107	233	320
Savings and money market	675	811	1,942	2,811
Time deposits of $100 or more	529	935	1,758	3,196
Other time deposits	860	1,577	2,941	5,462
Other borrowings	1	16	(11)	57
Subordinated debentures	3,804	3,747	11,213	11,116
Total interest expense	5,952	7,193	18,076	22,962
Net interest income	36,414	42,925	112,008	130,163
Provision for loan losses	0	0	0	2,000
Net interest income after provision for loan losses	36,414	42,925	112,008	128,163
Noninterest income:
Service charges on deposit accounts and customer service fees	8,788	9,053	25,709	27,028
Gain on loans sold and held for sale	1,314	4,325	4,439	10,308
Net gain on investment securities	108	789	37	1,306
Increase (decrease) in fair value of servicing rights	283	(2,417)	907	(4,608)
Loan servicing fees	1,740	1,741	5,233	5,659
Other	3,296	3,156	13,542	9,833
Total noninterest income	15,529	16,647	49,867	49,526
Noninterest expense:
Salaries and employee benefits	19,777	18,906	58,973	56,474
Occupancy, net of rental income	5,602	5,929	17,371	16,352
Furniture and equipment	2,463	2,625	7,584	7,875
Postage, printing and supplies	533	611	1,872	1,956
Information technology fees	5,365	5,219	15,920	17,130
Legal, examination and professional fees	1,610	2,232	4,770	7,678
Advertising and business development	663	511	1,679	1,481
FDIC insurance	1,852	3,105	5,572	9,410
Write-downs and expenses on other real estate and repossessed assets	1,966	2,922	4,736	11,204
Other	5,474	6,779	15,018	18,638
Total noninterest expense	45,305	48,839	133,495	148,198
Income from continuing operations before (benefit) provision for income taxes	6,638	10,733	28,380	29,491
(Benefit) provision for income taxes	(65)	(138)	(45)	78
Net income from continuing operations, net of tax	6,703	10,871	28,425	29,413
Loss from discontinued operations, net of tax	(881)	(2,182)	(6,279)	(6,763)
Net income	5,822	8,689	22,146	22,650
Less: net (loss) income attributable to noncontrolling interest in subsidiary	(38)	216	113	(229)
Net income attributable to First Banks, Inc.	5,860	8,473	22,033	22,879
Preferred stock dividends declared and undeclared	5,013	4,753	14,841	14,070
Accretion of discount on preferred stock	919	893	2,725	2,660
Net (loss) income available to common stockholders	$ (72)	$ 2,827	$ 4,467	$ 6,149
Basic and diluted earnings per common share from continuing operations	$ 34.19	$ 211.70	$ 454.17	$ 545.72
Basic and diluted loss per common share from discontinued operations	$ (37.23)	$ (92.22)	$ (265.37)	$ (285.83)
Basic and diluted (loss) earnings per common share	$ (3.04)	$ 119.48	$ 188.80	$ 259.89
Weighted average shares of common stock outstanding	23,661	23,661	23,661	23,661

XML

INVESTMENTS IN DEBT AND EQUITY SECURITIES

9 Months Ended

Sep. 30, 2013

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS IN DEBT AND EQUITY SECURITIES

INVESTMENTS INDEBT ANDEQUITYSECURITIES

Securities Available for Sale. The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities available for sale at September 30, 2013 and December 31, 2012 were as follows:

	Maturity									Total Amortized Cost	Gross				Weighted Average Yield
	1 Year			1-5		5-10		After			Unrealized			Fair
	or Less			Years		Years		10 Years			Gains	Losses		Value
	(dollars expressed in thousands)
September 30, 2013:
Carrying value:
U.S. Government sponsored agencies	$	—		48,784		88,769		136,582		274,135	3,067	(1,168	)	276,034	1.36	%
Residential mortgage-backed	—			23,581		138,415		933,135		1,095,131	17,245	(14,147	)	1,098,229	2.44
Commercial mortgage-backed	—			—		796		—		796	72	—		868	5.03
State and political subdivisions	1,042			3,060		201		28,448		32,751	98	(588	)	32,261	1.35
Corporate notes	4,960			140,342		45,133		—		190,435	5,350	(346	)	195,439	2.76
Equity investments	—			—		—		1,500		1,500	—	(44	)	1,456	2.19
Total	$	6,002		215,767		273,314		1,099,665		1,594,748	25,832	(16,293	)	1,604,287	2.27
Fair value:
Debt securities	$	6,064		222,057		273,224		1,101,486
Equity securities	—			—		—		1,456
Total	$	6,064		222,057		273,224		1,102,942
Weighted average yield	3.05		%	2.24	%	1.92	%	2.36	%
December 31, 2012:
Carrying value:
U.S. Government sponsored agencies	$	10,051		80,328		—		213,892		304,271	6,304	(146	)	310,429	1.42	%
Residential mortgage-backed	364			24,014		219,286		1,251,917		1,495,581	38,983	(497	)	1,534,067	2.32
Commercial mortgage-backed	—			—		806		—		806	109	—		915	4.86
State and political subdivisions	985			3,579		201		—		4,765	164	—		4,929	4.05
Corporate notes	—			137,090		49,704		—		186,794	6,192	(621	)	192,365	3.13
Equity investments	—			—		—		1,000		1,000	22	—		1,022	2.54
Total	$	11,400		245,011		269,997		1,466,809		1,993,217	51,774	(1,264	)	2,043,727	2.26
Fair value:
Debt securities	$	11,476		251,558		275,251		1,504,420
Equity securities	—			—		—		1,022
Total	$	11,476		251,558		275,251		1,505,442
Weighted average yield	2.01		%	2.17	%	2.65	%	2.21	%

Securities Held to Maturity. The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities held to maturity at September 30, 2013 and December 31, 2012 were as follows:

	Maturity									Total Amortized Cost	Gross				Weighted Average Yield
	1 Year			1-5		5-10		After			Unrealized			Fair
	or Less			Years		Years		10 Years			Gains	Losses		Value
	(dollars expressed in thousands)
September 30, 2013:
Carrying value:
U.S. Government sponsored agencies	$	—		—		18,665		—		18,665	—	(164	)	18,501	1.37	%
Residential mortgage-backed	—			17,167		186,341		538,970		742,478	679	(16,295	)	726,862	1.93
State and political subdivisions	1,021			1,019		55		1,066		3,161	8	(54	)	3,115	2.07
Total	$	1,021		18,186		205,061		540,036		764,304	687	(16,513	)	748,478	1.92
Fair value:
Debt securities	$	1,026		17,903		201,942		527,607
Weighted average yield	2.91		%	2.08	%	1.57	%	2.04	%
December 31, 2012:
Carrying value:
U.S. Government sponsored agencies	$	—		—		52,582		—		52,582	269	—		52,851	1.63	%
Residential mortgage-backed	—			—		108,420		466,863		575,283	6,142	(614	)	580,811	1.82
State and political subdivisions	826			1,099		252		1,511		3,688	51	(377	)	3,362	1.89
Total	$	826		1,099		161,254		468,374		631,553	6,462	(991	)	637,024	1.80
Fair value:
Debt securities	$	836		1,129		164,433		470,626
Weighted average yield	2.56		%	3.40	%	1.77	%	1.81	%

Proceeds from sales of available-for-sale investment securities were $25.1 million and $143.7 million for the three and nine months ended September 30, 2013, respectively, compared to $107.6 million and $315.2 million for the comparable periods in 2012. Gross realized gains and gross realized losses on investment securities for the three and nine months ended September 30, 2013 and 2012 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Gross realized gains on sales of available-for-sale securities	$	110		790		802		1,682
Gross realized losses on sales of available-for-sale securities	—			—		(354	)	(374	)
Other-than-temporary impairment	(2		)	(1	)	(411	)	(2	)
Net realized gain on investment securities	$	108		789		37		1,306

Other-than-temporary impairment for the nine months ended September 30, 2013 includes impairment of $407,000 recorded during the first quarter of 2013 on a municipal investment security classified as held-to-maturity. Investment securities with a carrying value of $314.8 million and $257.6 million at September 30, 2013 and December 31, 2012, respectively, were pledged in connection with deposits of public and trust funds, securities sold under agreements to repurchase and for other purposes as required by law.

During the first quarter of 2013, the Company reclassified certain of its available-for-sale investment securities to held-to-maturity investment securities at their respective fair values, which totaled $242.5 million, in aggregate. The determination of the reclassification was made by management based on the Company’s current and expected future liquidity levels and the resulting intent to hold such investment securities to maturity. The net gross unrealized gain on these available-for-sale investment securities at the time of transfer of $5.0 million, in aggregate, was recorded as additional premium on the securities and is being amortized over the remaining lives of the respective securities, as further described in Note 10 to the consolidated financial statements.

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2013 and December 31, 2012, were as follows:

	Less Than 12 Months				12 Months or More			Total
	Fair Value		Unrealized Losses		Fair Value	Unrealized Losses		Fair Value	Unrealized Losses
	(dollars expressed in thousands)
September 30, 2013:
Available for sale:
U.S. Government sponsored agencies	$	45,008	(960	)	19,939	(208	)	64,947	(1,168	)
Residential mortgage-backed	401,599		(14,043	)	6,373	(104	)	407,972	(14,147	)
State and political subdivisions	27,860		(588	)	—	—		27,860	(588	)
Corporate notes	34,794		(339	)	4,993	(7	)	39,787	(346	)
Equity investments	1,456		(44	)	—	—		1,456	(44	)
Total	$	510,717	(15,974	)	31,305	(319	)	542,022	(16,293	)
Held to maturity:
U.S. Government sponsored agencies	$	18,501	(164	)	—	—		18,501	(164	)
Residential mortgage-backed	662,903		(16,284	)	7,622	(11	)	670,525	(16,295	)
State and political subdivisions	1,012		(54	)	—	—		1,012	(54	)
Total	$	682,416	(16,502	)	7,622	(11	)	690,038	(16,513	)
December 31, 2012:
Available for sale:
U.S. Government sponsored agencies	$	20,018	(146	)	—	—		20,018	(146	)
Residential mortgage-backed	125,449		(441	)	270	(56	)	125,719	(497	)
Corporate notes	—		—		17,675	(621	)	17,675	(621	)
Total	$	145,467	(587	)	17,945	(677	)	163,412	(1,264	)
Held to maturity:
Residential mortgage-backed	$	66,011	(614	)	—	—		66,011	(614	)
State and political subdivisions	1,133		(377	)	—	—		1,133	(377	)
Total	$	67,144	(991	)	—	—		67,144	(991	)

The Company does not believe the investment securities that were in an unrealized loss position at September 30, 2013 are other-than-temporarily impaired. The unrealized losses on the investment securities were primarily attributable to fluctuations in interest rates. It is expected that the securities would not be settled at a price less than the amortized cost. Because the decline in fair value is attributable to changes in interest rates and not credit loss, and because the Company does not intend to sell these investments and it is more likely than not that First Bank will not be required to sell these securities before the anticipated recovery of the remaining amortized cost basis or maturity, these investments are not considered other-than-temporarily impaired. The unrealized losses for U.S. Government sponsored agencies for 12 months or more at September 30, 2013 included one security. The unrealized losses for residential mortgage-backed securities for 12 months or more at September 30, 2013 and December 31, 2012 included 11 and nine securities, respectively. The unrealized losses for corporate notes for 12 months or more at September 30, 2013 and December 31, 2012 included one and six securities, respectively.

XML

CONTINGENT LIABILITIES

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

CONTINGENT LIABILITIES

CONTINGENTLIABILITIES

In the ordinary course of business, the Company and its subsidiaries become involved in legal proceedings, including litigation arising out of the Company’s efforts to collect outstanding loans. It is not uncommon for collection efforts to lead to so-called “lender liability” suits in which borrowers may assert various claims against the Company. From time to time, the Company is party to other legal matters arising in the normal course of business. While some matters pending against the Company specify damages claimed by plaintiffs, others do not seek a specified amount of damages or are at very early stages of the legal process. The Company records a loss accrual for all legal matters for which it deems a loss is probable and can be reasonably estimated. Management, after consultation with legal counsel, believes the ultimate resolution of these existing proceedings is not reasonably likely to have a material adverse effect on the business, financial condition or results of operations of the Company and/or its subsidiaries and the range of possible additional loss in excess of amounts accrued is not material.

The Company and First Bank have entered into agreements with the FRB and MDOF, as further described in Note 11 to the consolidated financial statements. The informal agreement with the MDOF was terminated effective September 11, 2013.

XML

STOCKHOLDERS' EQUITY (Schedule of Accumulated Other Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period	$ 9,603	$ 33,884	$ 45,259	$ 16,066	$ 16,066
Other comprehensive income (loss) before reclassifications	(2,450)	9,388	(37,920)	27,542
Amounts reclassified from accumulated other comprehensive income (loss)	(60)	(422)	(246)	(758)
Net current period other comprehensive income (loss)	(2,510)	8,966	(38,166)	26,784	29,193
Balance, end of period	7,093	42,850	7,093	42,850	45,259
Investment Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period	15,337	30,971	35,186	19,437	19,437
Other comprehensive income (loss) before reclassifications	(1,363)	2,266	(21,026)	14,136
Amounts reclassified from accumulated other comprehensive income (loss)	(60)	(422)	(246)	(758)
Net current period other comprehensive income (loss)	(1,423)	1,844	(21,272)	13,378
Balance, end of period	13,914	32,815	13,914	32,815
Defined Benefit Pension Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period	(3,484)	(2,591)	(3,544)	(2,633)	(2,633)
Other comprehensive income (loss) before reclassifications	30	21	90	63
Amounts reclassified from accumulated other comprehensive income (loss)	0	0	0	0
Net current period other comprehensive income (loss)	30	21	90	63
Balance, end of period	(3,454)	(2,570)	(3,454)	(2,570)
Deferred Tax Asset Valuation Allowance [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period	(2,250)	5,504	13,617	(738)	(738)
Other comprehensive income (loss) before reclassifications	(1,117)	7,101	(16,984)	13,343
Amounts reclassified from accumulated other comprehensive income (loss)	0	0	0	0
Net current period other comprehensive income (loss)	(1,117)	7,101	(16,984)	13,343
Balance, end of period	$ (3,367)	$ 12,605	$ (3,367)	$ 12,605

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 10) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
Allowance for loan losses:
Ending balance: impaired loans individually evaluated for impairment	$ 3,310		$ 3,598
Ending balance: impaired loans collectively evaluated for impairment	12,053		14,354
Ending balance: all other loans collectively evaluated for impairment	68,914		73,650
Ending balance	84,277	85,633	91,602	114,202	120,227	137,710
Financing receivables:
Ending balance: impaired loans individually evaluated for impairment	71,369		119,483
Ending balance: impaired loans collectively evaluated for impairment	109,996		119,306
Ending balance: all other loans collectively evaluated for impairment	2,577,252		2,625,825
Ending balance	2,758,617		2,864,614
Commercial, financial and agricultural [Member]
Allowance for loan losses:
Ending balance: impaired loans individually evaluated for impairment	0		75
Ending balance: impaired loans collectively evaluated for impairment	461		601
Ending balance: all other loans collectively evaluated for impairment	13,563		12,896
Ending balance	14,024	13,966	13,572	21,268	22,015	27,243
Financing receivables:
Ending balance: impaired loans individually evaluated for impairment	3,587		7,884
Ending balance: impaired loans collectively evaluated for impairment	8,310		11,166
Ending balance: all other loans collectively evaluated for impairment	571,642		591,251
Ending balance	583,539		610,301
Real estate construction and development [Member]
Allowance for loan losses:
Ending balance: impaired loans individually evaluated for impairment	86		121
Ending balance: impaired loans collectively evaluated for impairment	283		1,331
Ending balance: all other loans collectively evaluated for impairment	8,633		12,982
Ending balance	9,002	11,412	14,434	19,831	21,829	24,868
Financing receivables:
Ending balance: impaired loans individually evaluated for impairment	5,911		39,155
Ending balance: impaired loans collectively evaluated for impairment	1,389		3,028
Ending balance: all other loans collectively evaluated for impairment	118,033		132,796
Ending balance	125,333		174,979
One-to-four-family residential [Member]
Allowance for loan losses:
Ending balance: impaired loans individually evaluated for impairment	2,945		3,187
Ending balance: impaired loans collectively evaluated for impairment	9,147		10,455
Ending balance: all other loans collectively evaluated for impairment	22,621		25,255
Ending balance	34,713	35,266	38,897	42,414	43,702	50,864
Financing receivables:
Ending balance: impaired loans individually evaluated for impairment	12,310		16,843
Ending balance: impaired loans collectively evaluated for impairment	94,112		98,423
Ending balance: all other loans collectively evaluated for impairment	817,967		871,501
Ending balance	924,389		986,767
Multi-family residential [Member]
Allowance for loan losses:
Ending balance: impaired loans individually evaluated for impairment	0		33
Ending balance: impaired loans collectively evaluated for impairment	1,159		1,105
Ending balance: all other loans collectively evaluated for impairment	3,002		3,114
Ending balance	4,161	4,122	4,252	5,062	4,816	4,851
Financing receivables:
Ending balance: impaired loans individually evaluated for impairment	28,756		34,636
Ending balance: impaired loans collectively evaluated for impairment	1,124		365
Ending balance: all other loans collectively evaluated for impairment	73,482		68,683
Ending balance	103,362		103,684
Commercial real estate [Member]
Allowance for loan losses:
Ending balance: impaired loans individually evaluated for impairment	279		182
Ending balance: impaired loans collectively evaluated for impairment	1,003		861
Ending balance: all other loans collectively evaluated for impairment	20,797		19,005
Ending balance	22,079	20,573	20,048	25,222	27,471	29,448
Financing receivables:
Ending balance: impaired loans individually evaluated for impairment	20,805		20,965
Ending balance: impaired loans collectively evaluated for impairment	5,055		6,296
Ending balance: all other loans collectively evaluated for impairment	977,673		942,419
Ending balance	1,003,533		969,680
Consumer and Installment [Member]
Allowance for loan losses:
Ending balance: impaired loans individually evaluated for impairment	0		0
Ending balance: impaired loans collectively evaluated for impairment	0		1
Ending balance: all other loans collectively evaluated for impairment	298		398
Ending balance	298	294	399	405	394	436
Financing receivables:
Ending balance: impaired loans individually evaluated for impairment	0		0
Ending balance: impaired loans collectively evaluated for impairment	6		28
Ending balance: all other loans collectively evaluated for impairment	18,455		19,175
Ending balance	$ 18,461		$ 19,203

XML

REGULATORY CAPITAL AND OTHER REGULATORY MATTERS

9 Months Ended

Sep. 30, 2013

Banking and Thrift [Abstract]

REGULATORY CAPITAL AND OTHER REGULATORY MATTERS

REGULATORYCAPITAL AND OTHER REGULATORY MATTERS

Regulatory Capital. The Company and First Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the operations and financial condition of the Company and First Bank. Under these capital requirements, the Company and First Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and First Bank to maintain minimum amounts and ratios of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets, and of Tier 1 capital to average assets.

The Company did not meet the minimum regulatory capital standards established for bank holding companies by the Federal Reserve at September 30, 2013 and December 31, 2012. The Company must maintain minimum total regulatory, Tier 1 regulatory and Tier 1 leverage ratios as set forth in the table below in order to meet the minimum capital adequacy standards.

First Bank was categorized as well capitalized at September 30, 2013 and December 31, 2012 under the prompt corrective action provisions of the regulatory capital standards. First Bank must maintain minimum total regulatory, Tier 1 regulatory and Tier 1 leverage ratios as set forth in the table below in order to be categorized as well capitalized.

At September 30, 2013 and December 31, 2012, the Company's and First Bank’s required and actual capital ratios were as follows:

											To be Well Capitalized Under Prompt Corrective Action Provisions
	Actual								For Capital Adequacy Purposes
	September 30, 2013				December 31, 2012
	Amount		Ratio		Amount		Ratio
	(dollars expressed in thousands)
Total capital (to risk-weighted assets):
First Banks, Inc.	$	114,522	3.20	%	$	93,542	2.57	%	8.0	%	N/A
First Bank	659,624		18.42		626,177		17.18		8.0		10.0	%
Tier 1 capital (to risk-weighted assets):
First Banks, Inc.	57,261		1.60		46,771		1.28		4.0		N/A
First Bank	614,332		17.15		580,026		15.92		4.0		6.0
Tier 1 capital (to average assets):
First Banks, Inc.	57,261		0.94		46,771		0.73		4.0		N/A
First Bank	614,332		10.09		580,026		9.13		4.0		5.0

As noted above, the Company’s capital ratios are below the minimum regulatory capital standards established for bank holding companies, and therefore, the Company could be subject to additional actions by regulators that could have a direct material effect on the operations and financial condition of the Company and First Bank.

Regulatory Agreements. On March 24, 2010, the Company, SFC and First Bank entered into a Written Agreement (Agreement) with the FRB requiring the Company and First Bank to take certain steps intended to improve their overall financial condition. Pursuant to the Agreement, the Company prepared and filed with the FRB a number of specific plans designed to strengthen and/or address the following matters: (i) board oversight over the management and operations of the Company and First Bank; (ii) credit risk management practices; (iii) lending and credit administration policies and procedures; (iv) asset improvement; (v) capital; (vi) earnings and overall financial condition; and (vii) liquidity and funds management.

The Agreement requires, among other things, that the Company and First Bank obtain prior approval from the FRB in order to pay dividends. In addition, the Company must obtain prior approval from the FRB to: (i) take any other form of payment from First Bank representing a reduction in capital of First Bank; (ii) make any distributions of interest, principal or other sums on junior subordinated debentures or trust preferred securities; (iii) incur, increase or guarantee any debt; or (iv) purchase or redeem any shares of the Company’s stock. The FRB has complete discretion to grant any such approval and therefore, it is not known whether the FRB will approve any request, including a request to make interest payments on the Company's subordinated debentures associated with its trust preferred securities, at any time in the future. As further described in Note 9 to the consolidated financial statements, the Company will trigger a payment default or penalty on its junior subordinated debentures unless the Company resumes payment of interest and pays all cumulative interest that has been deferred by the respective payment dates in September and October, 2014.

Pursuant to the terms of the Agreement, the Company and First Bank submitted a written plan to the FRB to maintain sufficient capital at the Company, on a consolidated basis, and at First Bank, on a standalone basis. In addition, the Agreement also provides that the Company and First Bank must notify the FRB if the regulatory capital ratios of either entity fall below those set forth in the capital plans that were accepted by the FRB, and specifically if First Bank falls below the criteria for being well capitalized under the regulatory framework for prompt corrective action. The Company must also notify the FRB before appointing any new directors or senior executive officers or changing the responsibilities of any senior executive officer position. The Agreement also requires the Company and First Bank to comply with certain restrictions regarding indemnification and severance payments although First Bank has been notified, as of October 16, 2013, by the FRB that such restriction is no longer applicable to First Bank. The Agreement is specifically enforceable by the FRB in court.

Prior to entering into the Agreement on March 24, 2010, the Company and First Bank had entered into a memorandum of understanding and an informal agreement, respectively, with the FRB and the Missouri Division of Finance (MDOF). Each of the agreements were characterized by regulatory authorities as informal actions that were neither published nor made publicly available by the agencies and are used when circumstances warrant a milder form of action than a formal supervisory action, such as a written agreement or cease and desist order. The memorandum of understanding with the FRB was replaced and superseded by the Agreement. The informal agreement with the MDOF, dated September 18, 2008, was terminated effective September 11, 2013.

Under the terms of the prior memorandum of understanding with the FRB, the Company agreed, among other things, to provide certain information to the FRB including, but not limited to, financial performance updates, notice of plans to materially change its fundamental business and notice to issue trust preferred securities or raise additional equity capital. In addition, the Company agreed not to pay any dividends on its common or preferred stock or make any distributions of interest or other sums on its trust preferred securities without the prior approval of the FRB.

First Bank, under its former informal agreement with the MDOF and the FRB, agreed to, among other things, prepare and submit plans and reports to the agencies regarding certain matters including, but not limited to, the performance of First Bank’s loan portfolio. In addition, First Bank agreed not to declare or pay any dividends or make certain other payments without the prior consent of the MDOF and the FRB, and was required to maintain its Tier 1 capital to total assets ratio at no less than 7.00%. First Bank’s Tier 1 capital to total assets ratio of 9.20% at December 31, 2012 exceeded the 7.00% minimum level required under the terms of the former informal agreement with the MDOF.

While the Company and First Bank intend to take such actions as may be necessary to comply with the requirements of the Agreement with the FRB, there can be no assurance that the Company and First Bank will be able to comply fully with the requirements of the Agreement, that compliance with the Agreement will not be more time consuming or more expensive than anticipated, that compliance with the Agreement will enable the Company and First Bank to maintain profitable operations, or that efforts to comply with the Agreement will not have adverse effects on the operations and financial condition of the Company or First Bank. If the Company or First Bank is unable to comply with the terms of the Agreement, the Company and First Bank could become subject to various requirements limiting the ability to develop new business lines, mandating additional capital, and/or requiring the sale of certain assets and liabilities. Failure of the Company or First Bank to meet these conditions could lead to further enforcement action by the regulatory agencies. The terms of any such additional regulatory actions, orders or agreements could have a materially adverse effect on the Company’s business, financial condition or results of operations.

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	$ 2,786,930	$ 2,930,747
Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	1,815,767	1,858,644
One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	439,699	476,796
One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	503,151	529,174
Commercial And Industrial [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	583,539	610,301
Real estate construction and development [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	125,333	174,979
Real estate construction and development [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	125,333	174,979
Multi-family residential [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	103,362	103,684
Multi-family residential [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	103,362	103,684
Commercial real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	1,003,533	969,680
Commercial real estate [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	1,003,533	969,680
Bank Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	96,979	122,338
Bank Portfolio [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	96,979	122,338
Home Equity [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	342,720	354,458
Home Equity [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	342,720	354,458
Mortgage Division Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	484,690	509,971
Mortgage Division Portfolio [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	484,690	509,971
Consumer and Installment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	18,461	19,203
Consumer and Installment [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	18,461	19,203
Pass [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	1,599,830	1,543,395
Pass [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	418,215	449,946
Pass [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	405,174	424,445
Pass [Member] | Commercial And Industrial [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	553,028	572,248
Pass [Member] | Real estate construction and development [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	41,608	45,356
Pass [Member] | Multi-family residential [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	72,927	67,690
Pass [Member] | Commercial real estate [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	932,267	858,101
Pass [Member] | Bank Portfolio [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	83,724	107,625
Pass [Member] | Home Equity [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	334,491	342,321
Pass [Member] | Mortgage Division Portfolio [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	386,719	405,270
Pass [Member] | Consumer and Installment [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	18,455	19,175
Special Mention [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	42,350	87,326
Special Mention [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	6,799	4,621
Special Mention [Member] | Commercial And Industrial [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	11,170	10,580
Special Mention [Member] | Real estate construction and development [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	3,140	6,076
Special Mention [Member] | Multi-family residential [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	0	220
Special Mention [Member] | Commercial real estate [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	28,040	70,450
Special Mention [Member] | Bank Portfolio [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	6,465	4,405
Special Mention [Member] | Home Equity [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	334	216
Substandard [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	98,650	104,428
Substandard [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	1,943	5,037
Substandard [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	4,291	6,627
Substandard [Member] | Commercial And Industrial [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	7,444	8,423
Substandard [Member] | Real estate construction and development [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	73,285	81,364
Substandard [Member] | Multi-family residential [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	555	773
Substandard [Member] | Commercial real estate [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	17,366	13,868
Substandard [Member] | Bank Portfolio [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	193	1,787
Substandard [Member] | Home Equity [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	1,750	3,250
Substandard [Member] | Mortgage Division Portfolio [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	4,291	6,627
Substandard [Member] | Consumer and Installment [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	0	0
Performing TDR [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	32,620	49,012
Performing TDR [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	704	1,611
Performing TDR [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	76,908	78,294
Performing TDR [Member] | Commercial And Industrial [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	0	0
Performing TDR [Member] | Real estate construction and development [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	0	10,031
Performing TDR [Member] | Multi-family residential [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	28,070	28,240
Performing TDR [Member] | Commercial real estate [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	4,550	10,741
Performing TDR [Member] | Bank Portfolio [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	704	1,611
Performing TDR [Member] | Home Equity [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	0	0
Performing TDR [Member] | Mortgage Division Portfolio [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	76,908	78,294
Performing TDR [Member] | Consumer and Installment [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	0	0
Non Accrual [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	42,317	74,483
Non Accrual [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	12,038	15,581
Non Accrual [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	16,778	19,808
Non Accrual [Member] | Commercial And Industrial [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	11,897	19,050
Non Accrual [Member] | Real estate construction and development [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	7,300	32,152
Non Accrual [Member] | Multi-family residential [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	1,810	6,761
Non Accrual [Member] | Commercial real estate [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	21,310	16,520
Non Accrual [Member] | Bank Portfolio [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	5,893	6,910
Non Accrual [Member] | Home Equity [Member] | One-To-Four-Family Residential Mortgage Bank Portfolio And Home Equity Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	6,145	8,671
Non Accrual [Member] | Mortgage Division Portfolio [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	16,772	19,780
Non Accrual [Member] | Consumer and Installment [Member] | One To Four Family Residential Mortgage Division Portfolio And Consumer And Installment Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	$ 6	$ 28

XML

TRANSACTIONS WITH RELATED PARTIES (Details Textual) (USD $)	3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2013 First Services L P [Member]	Sep. 30, 2012 First Services L P [Member]	Sep. 30, 2013 First Services L P [Member]	Sep. 30, 2012 First Services L P [Member]	Sep. 30, 2013 First Services L P [Member] Affiliate Services Agreement [Member]	Sep. 30, 2012 First Services L P [Member] Affiliate Services Agreement [Member]	Sep. 30, 2013 First Services L P [Member] Affiliate Services Agreement [Member]	Sep. 30, 2012 First Services L P [Member] Affiliate Services Agreement [Member]	Sep. 30, 2013 First Services L P [Member] Equipment [Member]	Sep. 30, 2012 First Services L P [Member] Equipment [Member]	Sep. 30, 2013 First Services L P [Member] Equipment [Member]	Sep. 30, 2012 First Services L P [Member] Equipment [Member]	Sep. 30, 2013 First Services L P [Member] Premises [Member]	Sep. 30, 2012 First Services L P [Member] Premises [Member]	Sep. 30, 2013 First Services L P [Member] Premises [Member]	Sep. 30, 2012 First Services L P [Member] Premises [Member]	Sep. 30, 2013 First Brokerage America L L C [Member]	Sep. 30, 2012 First Brokerage America L L C [Member]	Sep. 30, 2013 First Brokerage America L L C [Member]	Sep. 30, 2012 First Brokerage America L L C [Member]	Sep. 30, 2013 First Brokerage America L L C [Member] Premises [Member]	Sep. 30, 2012 First Brokerage America L L C [Member] Premises [Member]	Sep. 30, 2013 First Brokerage America L L C [Member] Premises [Member]	Sep. 30, 2012 First Brokerage America L L C [Member] Premises [Member]	Sep. 30, 2013 Dierbergs Markets Inc [Member]	Sep. 30, 2012 Dierbergs Markets Inc [Member]	Sep. 30, 2013 Dierbergs Markets Inc [Member]	Sep. 30, 2012 Dierbergs Markets Inc [Member]	Sep. 30, 2013 FB Holdings LLC [Member]	Sep. 30, 2012 FB Holdings LLC [Member]	Sep. 30, 2013 FB Holdings LLC [Member]	Sep. 30, 2012 FB Holdings LLC [Member]	Dec. 31, 2008 FB Holdings LLC [Member]	Dec. 31, 2008 First Capital America Inc [Member]	Sep. 30, 2013 First Capital America Inc [Member]	Sep. 30, 2013 First Bank [Member]	Mar. 20, 2013 Investors Of America Limited Partnership [Member] Revolving Credit Facility [Member]	Sep. 30, 2013 Directors Affliates and Executive Officers [Member]	Dec. 31, 2012 Directors Affliates and Executive Officers [Member]
Related Party Transaction [Line Items]
Service Fees Paid	$ 5,100,000	$ 4,900,000	$ 15,000,000	$ 16,200,000
Proceeds from Rental Payments									283,000	322,000	820,000	1,000,000									98,000	100,000	343,000	325,000
Payments for Rent													435,000	435,000	1,300,000	1,400,000
Fees Receivable					46,000	44,000	137,000	133,000
Commissions Received From Unaffliated Third Party Companies																	943,000	914,000	3,400,000	3,300,000
Operating Leases, Rent Expense, Net																									124,000	129,000	368,000	373,000
Proceeds from Contributions from Parent																																	9,000,000
Contribution of Assets from Parent																																	133,300,000
Proceeds from Contributions from Affiliates																																		125,000,000
Noncontrolling Interest, Ownership Percentage by Parent																																			46.77%	53.23%
Service Fees Received																													3,000	27,000	19,000	105,000
Revolving Credit Note Borrowing Capacity																																					5,000,000
Loans and Leases Receivable, Related Parties																																						$ 14,800,000	$ 9,100,000

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Textual) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Impaired Financing Receivable Individually Evaluated For Impairment	$ 71,369,000	$ 119,483,000
Allowance allocated to Troubled Debt Restructurings	15,363,000	17,952,000
Minimum [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Impaired Financing Receivable Individually Evaluated For Impairment	500,000
Troubled Debt Restructurings [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance allocated to Troubled Debt Restructurings	8,800,000	9,500,000
Impaired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Accumulated Write-downs	66,000,000	103,900,000
Hamp Program [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Troubled Debt Restructurings under HAMP Program	$ 73,700,000	$ 75,700,000

XML

BASIS OF PRESENTATION (Details Textual)	Sep. 30, 2013
First Bank [Member]
Noncontrolling Interest [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	53.23%
First Capital America Inc [Member]
Noncontrolling Interest [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	46.77%

XML

INVESTMENTS IN DEBT AND EQUITY SECURITIES (Tables)

9 Months Ended

Sep. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Available-for-sale Securities [Table Text Block]

The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities available for sale at September 30, 2013 and December 31, 2012 were as follows:

	Maturity									Total Amortized Cost	Gross				Weighted Average Yield
	1 Year			1-5		5-10		After			Unrealized			Fair
	or Less			Years		Years		10 Years			Gains	Losses		Value
	(dollars expressed in thousands)
September 30, 2013:
Carrying value:
U.S. Government sponsored agencies	$	—		48,784		88,769		136,582		274,135	3,067	(1,168	)	276,034	1.36	%
Residential mortgage-backed	—			23,581		138,415		933,135		1,095,131	17,245	(14,147	)	1,098,229	2.44
Commercial mortgage-backed	—			—		796		—		796	72	—		868	5.03
State and political subdivisions	1,042			3,060		201		28,448		32,751	98	(588	)	32,261	1.35
Corporate notes	4,960			140,342		45,133		—		190,435	5,350	(346	)	195,439	2.76
Equity investments	—			—		—		1,500		1,500	—	(44	)	1,456	2.19
Total	$	6,002		215,767		273,314		1,099,665		1,594,748	25,832	(16,293	)	1,604,287	2.27
Fair value:
Debt securities	$	6,064		222,057		273,224		1,101,486
Equity securities	—			—		—		1,456
Total	$	6,064		222,057		273,224		1,102,942
Weighted average yield	3.05		%	2.24	%	1.92	%	2.36	%
December 31, 2012:
Carrying value:
U.S. Government sponsored agencies	$	10,051		80,328		—		213,892		304,271	6,304	(146	)	310,429	1.42	%
Residential mortgage-backed	364			24,014		219,286		1,251,917		1,495,581	38,983	(497	)	1,534,067	2.32
Commercial mortgage-backed	—			—		806		—		806	109	—		915	4.86
State and political subdivisions	985			3,579		201		—		4,765	164	—		4,929	4.05
Corporate notes	—			137,090		49,704		—		186,794	6,192	(621	)	192,365	3.13
Equity investments	—			—		—		1,000		1,000	22	—		1,022	2.54
Total	$	11,400		245,011		269,997		1,466,809		1,993,217	51,774	(1,264	)	2,043,727	2.26
Fair value:
Debt securities	$	11,476		251,558		275,251		1,504,420
Equity securities	—			—		—		1,022
Total	$	11,476		251,558		275,251		1,505,442
Weighted average yield	2.01		%	2.17	%	2.65	%	2.21	%

Held-to-maturity Securities [Table Text Block]

The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities held to maturity at September 30, 2013 and December 31, 2012 were as follows:

	Maturity									Total Amortized Cost	Gross				Weighted Average Yield
	1 Year			1-5		5-10		After			Unrealized			Fair
	or Less			Years		Years		10 Years			Gains	Losses		Value
	(dollars expressed in thousands)
September 30, 2013:
Carrying value:
U.S. Government sponsored agencies	$	—		—		18,665		—		18,665	—	(164	)	18,501	1.37	%
Residential mortgage-backed	—			17,167		186,341		538,970		742,478	679	(16,295	)	726,862	1.93
State and political subdivisions	1,021			1,019		55		1,066		3,161	8	(54	)	3,115	2.07
Total	$	1,021		18,186		205,061		540,036		764,304	687	(16,513	)	748,478	1.92
Fair value:
Debt securities	$	1,026		17,903		201,942		527,607
Weighted average yield	2.91		%	2.08	%	1.57	%	2.04	%
December 31, 2012:
Carrying value:
U.S. Government sponsored agencies	$	—		—		52,582		—		52,582	269	—		52,851	1.63	%
Residential mortgage-backed	—			—		108,420		466,863		575,283	6,142	(614	)	580,811	1.82
State and political subdivisions	826			1,099		252		1,511		3,688	51	(377	)	3,362	1.89
Total	$	826		1,099		161,254		468,374		631,553	6,462	(991	)	637,024	1.80
Fair value:
Debt securities	$	836		1,129		164,433		470,626
Weighted average yield	2.56		%	3.40	%	1.77	%	1.81	%

Schedule of Realized Gain (Loss) [Table Text Block]

Gross realized gains and gross realized losses on investment securities for the three and nine months ended September 30, 2013 and 2012 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Gross realized gains on sales of available-for-sale securities	$	110		790		802		1,682
Gross realized losses on sales of available-for-sale securities	—			—		(354	)	(374	)
Other-than-temporary impairment	(2		)	(1	)	(411	)	(2	)
Net realized gain on investment securities	$	108		789		37		1,306

Schedule of Unrealized Loss on Investments [Table Text Block]

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2013 and December 31, 2012, were as follows:

	Less Than 12 Months				12 Months or More			Total
	Fair Value		Unrealized Losses		Fair Value	Unrealized Losses		Fair Value	Unrealized Losses
	(dollars expressed in thousands)
September 30, 2013:
Available for sale:
U.S. Government sponsored agencies	$	45,008	(960	)	19,939	(208	)	64,947	(1,168	)
Residential mortgage-backed	401,599		(14,043	)	6,373	(104	)	407,972	(14,147	)
State and political subdivisions	27,860		(588	)	—	—		27,860	(588	)
Corporate notes	34,794		(339	)	4,993	(7	)	39,787	(346	)
Equity investments	1,456		(44	)	—	—		1,456	(44	)
Total	$	510,717	(15,974	)	31,305	(319	)	542,022	(16,293	)
Held to maturity:
U.S. Government sponsored agencies	$	18,501	(164	)	—	—		18,501	(164	)
Residential mortgage-backed	662,903		(16,284	)	7,622	(11	)	670,525	(16,295	)
State and political subdivisions	1,012		(54	)	—	—		1,012	(54	)
Total	$	682,416	(16,502	)	7,622	(11	)	690,038	(16,513	)
December 31, 2012:
Available for sale:
U.S. Government sponsored agencies	$	20,018	(146	)	—	—		20,018	(146	)
Residential mortgage-backed	125,449		(441	)	270	(56	)	125,719	(497	)
Corporate notes	—		—		17,675	(621	)	17,675	(621	)
Total	$	145,467	(587	)	17,945	(677	)	163,412	(1,264	)
Held to maturity:
Residential mortgage-backed	$	66,011	(614	)	—	—		66,011	(614	)
State and political subdivisions	1,133		(377	)	—	—		1,133	(377	)
Total	$	67,144	(991	)	—	—		67,144	(991	)

XML

DISCONTINUED OPERATIONS (Tables)

9 Months Ended

Sep. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Schedule Of Disposal Groups Including Discontinued Operations Balance Sheet [Table Text Block]

Assets and liabilities of discontinued operations at September 30, 2013 and December 31, 2012 were as follows:

	September 30, 2013			December 31, 2012
	Association Bank Services			Northern Florida
	(dollars expressed in thousands)
Cash and due from banks	$	—		1,139
Loans:
Commercial, financial and agricultural	20,591			—
Consumer and installment	10			—
Net deferred loan fees	(208		)	—
Total loans	20,393			—
Bank premises and equipment, net	70			4,837
Goodwill	18,000			700
Other assets	48			30
Assets of discontinued operations	$	38,511		6,706
Deposits:
Noninterest-bearing demand	$	129,785		12,488
Interest-bearing demand	339,297			10,480
Savings and money market	18,455			67,686
Time deposits of $100 or more	23,931			27,034
Other time deposits	37,631			37,964
Total deposits	549,099			155,652
Accrued expenses and other liabilities	56			59
Liabilities of discontinued operations	$	549,155		155,711

Loss from discontinued operations, net of tax, for the three months ended September 30, 2013 and 2012 was as follows:

	Three Months Ended						Three Months Ended
	September 30, 2013						September 30, 2012
	Association Bank Services			Northern Florida	Total		Association Bank Services		Northern Florida		Total
				(dollars expressed in thousands)
Interest income:
Interest and fees on loans	$	332		—	332		418		—		418
Interest expense:
Interest on deposits	78			—	78		121		222		343
Net interest income (loss)	254			—	254		297		(222	)	75
Provision for loan losses	—			—	—		—		—		—
Net interest income (loss) after provision for loan losses	254			—	254		297		(222	)	75
Noninterest income:
Service charges and customer service fees	17			—	17		22		101		123
Other	28			—	28		27		3		30
Total noninterest income	45			—	45		49		104		153
Noninterest expense:
Salaries and employee benefits	753			—	753		625		559		1,184
Occupancy, net of rental income	1			—	1		2		437		439
Furniture and equipment	13			—	13		29		62		91
FDIC insurance	194			—	194		317		97		414
Other	233			—	233		204		78		282
Total noninterest expense	1,194			—	1,194		1,177		1,233		2,410
Loss from operations of discontinued operations	(895		)	—	(895	)	(831	)	(1,351	)	(2,182	)
Net gain on sale of discontinued operations	—			14	14		—		—		—
Benefit for income taxes	—			—	—		—		—		—
Net (loss) income from discontinued operations, net of tax	$	(895	)	14	(881	)	(831	)	(1,351	)	(2,182	)

Loss from discontinued operations, net of tax, for the nine months ended September 30, 2013 and 2012 was as follows:

	Nine Months Ended							Nine Months Ended
	September 30, 2013							September 30, 2012
	Association Bank Services			Northern Florida		Total		Association Bank Services		Northern Florida		Total
	(dollars expressed in thousands)
Interest income:
Interest and fees on loans	$	1,036		—		1,036		1,360		—		1,360
Interest expense:
Interest on deposits	248			233		481		375		769		1,144
Net interest income (loss)	788			(233	)	555		985		(769	)	216
Provision for loan losses	—			—		—		—		—		—
Net interest income (loss) after provision for loan losses	788			(233	)	555		985		(769	)	216
Noninterest income:
Service charges and customer service fees	74			134		208		106		332		438
Other	81			4		85		82		9		91
Total noninterest income	155			138		293		188		341		529
Noninterest expense:
Salaries and employee benefits	2,209			885		3,094		1,964		1,722		3,686
Occupancy, net of rental income	5			579		584		8		1,321		1,329
Furniture and equipment	34			40		74		74		223		297
FDIC insurance	603			53		656		928		300		1,228
Other	675			2,452		3,127		690		278		968
Total noninterest expense	3,526			4,009		7,535		3,664		3,844		7,508
Loss from operations of discontinued operations	(2,583		)	(4,104	)	(6,687	)	(2,491	)	(4,272	)	(6,763	)
Net gain on sale of discontinued operations	—			408		408		—		—		—
Benefit for income taxes	—			—		—		—		—		—
Net loss from discontinued operations, net of tax	$	(2,583	)	(3,696	)	(6,279	)	(2,491	)	(4,272	)	(6,763	)

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial, financial and agricultural	$ 583,539	$ 610,301
Real estate construction and development	125,333	174,979
Real estate mortgage:
Real estate mortgage	2,031,284	2,060,131
Consumer and installment	18,773	19,262
Loans held for sale	28,313	66,133
Net deferred loan fees	(312)	(59)
Total loans	2,786,930	2,930,747
One-to-four-family residential [Member]
Real estate mortgage:
Real estate mortgage	924,389	986,767
Multi-family residential [Member]
Real estate mortgage:
Real estate mortgage	103,362	103,684
Total loans	103,362	103,684
Commercial real estate [Member]
Real estate mortgage:
Real estate mortgage	1,003,533	969,680
Total loans	$ 1,003,533	$ 969,680

XML

FAIR VALUE DISCLOSURES (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 are reflected in the following table:

	Fair Value Measurements
	Level 1		Level 2		Level 3	Fair Value
	(dollars expressed in thousands)
September 30, 2013:
Assets:
Available-for-sale investment securities:
U.S. Government sponsored agencies	$	—	276,034		—	276,034
Residential mortgage-backed	—		1,098,229		—	1,098,229
Commercial mortgage-backed	—		868		—	868
State and political subdivisions	—		32,261		—	32,261
Corporate notes	—		195,439		—	195,439
Equity investments	1,456		—		—	1,456
Mortgage loans held for sale	—		28,313		—	28,313
Derivative instruments:
Customer interest rate swap agreements	—		7		—	7
Interest rate lock commitments	—		743		—	743
Forward commitments to sell mortgage-backed securities	—		(637	)	—	(637	)
Servicing rights	—		—		18,758	18,758
Total	$	1,456	1,631,257		18,758	1,651,471
Liabilities:
Derivative instruments:
Customer interest rate swap agreements	$	—	7		—	7
Nonqualified deferred compensation plan	6,261		—		—	6,261
Total	$	6,261	7		—	6,268
December 31, 2012:
Assets:
Available-for-sale investment securities:
U.S. Government sponsored agencies	$	—	310,429		—	310,429
Residential mortgage-backed	—		1,534,067		—	1,534,067
Commercial mortgage-backed	—		915		—	915
State and political subdivisions	—		4,929		—	4,929
Corporate notes	—		192,365		—	192,365
Equity investments	1,022		—		—	1,022
Mortgage loans held for sale	—		66,133		—	66,133
Derivative instruments:
Customer interest rate swap agreements	—		87		—	87
Interest rate lock commitments	—		1,837		—	1,837
Forward commitments to sell mortgage-backed securities	—		(305	)	—	(305	)
Servicing rights	—		—		14,792	14,792
Total	$	1,022	2,110,457		14,792	2,126,271
Liabilities:
Derivative instruments:
Customer interest rate swap agreements	$	—	87		—	87
Nonqualified deferred compensation plan	6,443		—		—	6,443
Total	$	6,443	87		—	6,530

Schedule Of Servicing Assets At Fair Value Measured At Level 3 On Recurring Basis [Table Text Block]

The following table presents the changes in Level 3 assets measured on a recurring basis for the three and nine months ended September 30, 2013 and 2012:

	Servicing Rights
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013	2012
	(dollars expressed in thousands)
Balance, beginning of period	$	17,533	15,182		14,792	15,380
Total gains or losses (realized/unrealized):
Included in earnings (1)	283		(2,417	)	907	(4,608	)
Included in other comprehensive income	—		—		—	—
Issuances	942		1,329		3,059	3,322
Transfers in and/or out of level 3	—		—		—	—
Balance, end of period	$	18,758	14,094		18,758	14,094

____________________

(1) Gains or losses (realized/unrealized) are included in noninterest income in the consolidated statements of operations.

Fair Value Measurements, Nonrecurring [Table Text Block]

Assets measured at fair value on a nonrecurring basis as of September 30, 2013 and December 31, 2012 are reflected in the following table:

	Fair Value Measurements
	Level 1		Level 2	Level 3	Fair Value
	(dollars expressed in thousands)
September 30, 2013:
Assets:
Impaired loans:
Commercial, financial and agricultural	$	—	—	11,436	11,436
Real estate construction and development	—		—	6,931	6,931
Real estate mortgage:
Bank portfolio	—		—	6,296	6,296
Mortgage Division portfolio	—		—	83,118	83,118
Home equity	—		—	4,916	4,916
Multi-family residential	—		—	28,721	28,721
Commercial real estate	—		—	24,578	24,578
Consumer and installment	—		—	6	6
Other real estate and repossessed assets	—		—	74,831	74,831
Total	$	—	—	240,833	240,833
December 31, 2012:
Assets:
Impaired loans:
Commercial, financial and agricultural	$	—	—	18,374	18,374
Real estate construction and development	—		—	40,731	40,731
Real estate mortgage:
Bank portfolio	—		—	8,237	8,237
Mortgage Division portfolio	—		—	86,500	86,500
Home equity	—		—	6,887	6,887
Multi-family residential	—		—	33,863	33,863
Commercial real estate	—		—	26,218	26,218
Consumer and installment	—		—	27	27
Other real estate and repossessed assets	—		—	91,995	91,995
Total	$	—	—	312,832	312,832

Fair Value, by Balance Sheet Grouping [Table Text Block]

The estimated fair value of the Company’s financial instruments at September 30, 2013 were as follows:

	September 30, 2013
				Estimated Fair Value
	Carrying Value			Level 1	Level 2	Level 3		Total
	(dollars expressed in thousands)
Financial Assets:
Cash and cash equivalents	$	714,155		714,155	—	—		714,155
Investment securities:
Available for sale	1,604,287			1,456	1,602,831	—		1,604,287
Held to maturity	764,304			—	748,478	—		748,478
Loans held for portfolio	2,674,340			—	—	2,478,309		2,478,309
Loans held for sale	28,313			—	28,313	—		28,313
FRB and FHLB stock	27,137			27,137	—	—		27,137
Derivative instruments	113			—	113	—		113
Accrued interest receivable	17,738			17,738	—	—		17,738
Assets of discontinued operations	38,511			—	38,511	—		38,511
Financial Liabilities:
Deposits:
Noninterest-bearing demand	$	1,224,595		1,224,595	—	—		1,224,595
Interest-bearing demand	677,900			677,900	—	—		677,900
Savings and money market	1,852,268			1,852,268	—	—		1,852,268
Time deposits	1,080,659			—	—	1,081,334		1,081,334
Other borrowings	37,077			37,077	—	—		37,077
Derivative instruments	7			—	7	—		7
Accrued interest payable	59,521			59,521	—	—		59,521
Subordinated debentures	354,191			—	—	269,610		269,610
Liabilities of discontinued operations	549,155			—	500,401	—		500,401
Off-Balance Sheet Financial Instruments:
Commitments to extend credit, standby letters of credit and financial guarantees	$	(2,715	)	—	—	(2,715	)	(2,715	)

The estimated fair value of the Company’s financial instruments at December 31, 2012 were as follows:

	December 31, 2012
				Estimated Fair Value
	Carrying Value			Level 1	Level 2	Level 3		Total
	(dollars expressed in thousands)
Financial Assets:
Cash and cash equivalents	$	518,846		518,846	—	—		518,846
Investment securities:
Available for sale	2,043,727			1,022	2,042,705	—		2,043,727
Held to maturity	631,553			—	637,024	—		637,024
Loans held for portfolio	2,773,012			—	—	2,572,256		2,572,256
Loans held for sale	66,133			—	66,133	—		66,133
FRB and FHLB stock	27,329			27,329	—	—		27,329
Derivative instruments	1,619			—	1,619	—		1,619
Accrued interest receivable	18,284			18,284	—	—		18,284
Assets of discontinued operations	6,706			—	6,706	—		6,706
Financial Liabilities:
Deposits:
Noninterest-bearing demand	$	1,327,183		1,327,183	—	—		1,327,183
Interest-bearing demand	1,000,666			1,000,666	—	—		1,000,666
Savings and money market	1,880,271			1,880,271	—	—		1,880,271
Time deposits	1,284,727			—	—	1,286,730		1,286,730
Other borrowings	26,025			26,025	—	—		26,025
Derivative instruments	87			—	87	—		87
Accrued interest payable	48,541			48,541	—	—		48,541
Subordinated debentures	354,133			—	—	254,984		254,984
Liabilities of discontinued operations	155,711			—	155,711	—		155,711
Off-Balance Sheet Financial Instruments:
Commitments to extend credit, standby letters of credit and financial guarantees	$	(2,779	)	—	—	(2,779	)	(2,779	)

XML

DISCONTINUED OPERATIONS (Details Textual) (USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Apr. 19, 2013	Apr. 05, 2013 offices	Dec. 31, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net gain on sale of discontinued operations	$ 14,000		$ 0	$ 408,000	$ 0
Northern Florida Region [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total loans								0
Net gain on sale of discontinued operations	14,000		0	408,000	0
Goodwill						700,000		700,000
Number of Branch Offices Closed							3
Other expense from branch closures associated with discontinued operations		2,300,000
Northern Florida Region [Member] | HomeBanc National Association [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of Branch Offices Sold Pursuant to Sales Agreement						8
Deposits assumed or to be assumed						120,300,000
Association Bank Services [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total loans	20,393,000			20,393,000
Estimated future gain on sale of disposal group	26,000,000			26,000,000
Net gain on sale of discontinued operations	0		0	0	0
Goodwill	18,000,000			18,000,000
Association Bank Services [Member] | Union Bank, N.A. [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Deposits assumed or to be assumed	549,100,000			549,100,000
Total loans	$ 20,393,000			$ 20,393,000

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Loan and Lease Receivables, Impaired [Abstract]
With No Related Allowance Recorded: Recorded Investment	$ 67,574	$ 111,922
With No Related Allowance Recorded: Unpaid Principal Balance	100,652	185,115
With No Related Allowance Recorded: Related Allowance for Loan Losses	0	0
With No Related Allowance Recorded: Average Recorded Investment	88,642	134,810
With No Related Allowance Recorded: Interest Income Recognized	1,617	2,248
With A Related Allowance Recorded: Recorded Investment	113,791	126,867
With A Related Allowance Recorded: Unpaid Principal Balance	146,685	157,590
With A Related Allowance Recorded: Related Allowance for Loan Losses	15,363	17,952
With A Related Allowance Recorded: Average Recorded Investment	125,756	148,645
With A Related Allowance Recorded: Interest Income Recognized	1,501	2,175
Recorded Investment, Total	181,365	238,789
Unpaid Principal Balance, Total	247,337	342,705
Related Allowance for Loan Losses, Total	15,363	17,952
Average Recorded Investment, Total	214,398	283,455
Interest Income Recognized, Total	3,118	4,423
Commercial, financial and agricultural [Member]
Loan and Lease Receivables, Impaired [Abstract]
With No Related Allowance Recorded: Recorded Investment	3,222	6,451
With No Related Allowance Recorded: Unpaid Principal Balance	4,456	24,287
With No Related Allowance Recorded: Related Allowance for Loan Losses	0	0
With No Related Allowance Recorded: Average Recorded Investment	4,164	12,369
With No Related Allowance Recorded: Interest Income Recognized	1	215
With A Related Allowance Recorded: Recorded Investment	8,675	12,599
With A Related Allowance Recorded: Unpaid Principal Balance	23,419	19,255
With A Related Allowance Recorded: Related Allowance for Loan Losses	461	676
With A Related Allowance Recorded: Average Recorded Investment	11,213	24,157
With A Related Allowance Recorded: Interest Income Recognized	0	0
Recorded Investment, Total	11,897	19,050
Unpaid Principal Balance, Total	27,875	43,542
Related Allowance for Loan Losses, Total	461	676
Average Recorded Investment, Total	15,377	36,526
Interest Income Recognized, Total	1	215
Real estate construction and development [Member]
Loan and Lease Receivables, Impaired [Abstract]
With No Related Allowance Recorded: Recorded Investment	5,619	39,706
With No Related Allowance Recorded: Unpaid Principal Balance	23,133	74,044
With No Related Allowance Recorded: Related Allowance for Loan Losses	0	0
With No Related Allowance Recorded: Average Recorded Investment	24,620	59,094
With No Related Allowance Recorded: Interest Income Recognized	418	561
With A Related Allowance Recorded: Recorded Investment	1,681	2,477
With A Related Allowance Recorded: Unpaid Principal Balance	4,246	10,221
With A Related Allowance Recorded: Related Allowance for Loan Losses	369	1,452
With A Related Allowance Recorded: Average Recorded Investment	7,365	3,687
With A Related Allowance Recorded: Interest Income Recognized	0	114
Recorded Investment, Total	7,300	42,183
Unpaid Principal Balance, Total	27,379	84,265
Related Allowance for Loan Losses, Total	369	1,452
Average Recorded Investment, Total	31,985	62,781
Interest Income Recognized, Total	418	675
Bank Portfolio [Member]
Loan and Lease Receivables, Impaired [Abstract]
With No Related Allowance Recorded: Recorded Investment	0	1,611
With No Related Allowance Recorded: Unpaid Principal Balance	0	1,690
With No Related Allowance Recorded: Related Allowance for Loan Losses	0	0
With No Related Allowance Recorded: Average Recorded Investment	0	2,166
With No Related Allowance Recorded: Interest Income Recognized	34	32
With A Related Allowance Recorded: Recorded Investment	6,597	6,910
With A Related Allowance Recorded: Unpaid Principal Balance	8,295	8,655
With A Related Allowance Recorded: Related Allowance for Loan Losses	301	284
With A Related Allowance Recorded: Average Recorded Investment	7,489	9,288
With A Related Allowance Recorded: Interest Income Recognized	0	0
Recorded Investment, Total	6,597	8,521
Unpaid Principal Balance, Total	8,295	10,345
Related Allowance for Loan Losses, Total	301	284
Average Recorded Investment, Total	7,489	11,454
Interest Income Recognized, Total	34	32
Mortgage Division Portfolio [Member]
Loan and Lease Receivables, Impaired [Abstract]
With No Related Allowance Recorded: Recorded Investment	9,098	10,255
With No Related Allowance Recorded: Unpaid Principal Balance	18,483	22,102
With No Related Allowance Recorded: Related Allowance for Loan Losses	0	0
With No Related Allowance Recorded: Average Recorded Investment	9,365	10,308
With No Related Allowance Recorded: Interest Income Recognized	0	0
With A Related Allowance Recorded: Recorded Investment	84,582	87,819
With A Related Allowance Recorded: Unpaid Principal Balance	94,399	96,931
With A Related Allowance Recorded: Related Allowance for Loan Losses	10,562	11,574
With A Related Allowance Recorded: Average Recorded Investment	87,061	88,277
With A Related Allowance Recorded: Interest Income Recognized	1,481	2,050
Recorded Investment, Total	93,680	98,074
Unpaid Principal Balance, Total	112,882	119,033
Related Allowance for Loan Losses, Total	10,562	11,574
Average Recorded Investment, Total	96,426	98,585
Interest Income Recognized, Total	1,481	2,050
Home Equity [Member]
Loan and Lease Receivables, Impaired [Abstract]
With No Related Allowance Recorded: Recorded Investment	601	1,382
With No Related Allowance Recorded: Unpaid Principal Balance	632	1,507
With No Related Allowance Recorded: Related Allowance for Loan Losses	0	0
With No Related Allowance Recorded: Average Recorded Investment	672	1,232
With No Related Allowance Recorded: Interest Income Recognized	0	0
With A Related Allowance Recorded: Recorded Investment	5,544	7,289
With A Related Allowance Recorded: Unpaid Principal Balance	6,396	8,188
With A Related Allowance Recorded: Related Allowance for Loan Losses	1,229	1,784
With A Related Allowance Recorded: Average Recorded Investment	6,200	6,500
With A Related Allowance Recorded: Interest Income Recognized	0	0
Recorded Investment, Total	6,145	8,671
Unpaid Principal Balance, Total	7,028	9,695
Related Allowance for Loan Losses, Total	1,229	1,784
Average Recorded Investment, Total	6,872	7,732
Interest Income Recognized, Total	0	0
Multi-family residential [Member]
Loan and Lease Receivables, Impaired [Abstract]
With No Related Allowance Recorded: Recorded Investment	28,513	33,709
With No Related Allowance Recorded: Unpaid Principal Balance	28,778	37,206
With No Related Allowance Recorded: Related Allowance for Loan Losses	0	0
With No Related Allowance Recorded: Average Recorded Investment	30,896	13,682
With No Related Allowance Recorded: Interest Income Recognized	921	280
With A Related Allowance Recorded: Recorded Investment	1,367	1,292
With A Related Allowance Recorded: Unpaid Principal Balance	1,371	1,403
With A Related Allowance Recorded: Related Allowance for Loan Losses	1,159	1,138
With A Related Allowance Recorded: Average Recorded Investment	1,481	524
With A Related Allowance Recorded: Interest Income Recognized	0	0
Recorded Investment, Total	29,880	35,001
Unpaid Principal Balance, Total	30,149	38,609
Related Allowance for Loan Losses, Total	1,159	1,138
Average Recorded Investment, Total	32,377	14,206
Interest Income Recognized, Total	921	280
Commercial real estate [Member]
Loan and Lease Receivables, Impaired [Abstract]
With No Related Allowance Recorded: Recorded Investment	20,521	18,808
With No Related Allowance Recorded: Unpaid Principal Balance	25,170	24,279
With No Related Allowance Recorded: Related Allowance for Loan Losses	0	0
With No Related Allowance Recorded: Average Recorded Investment	18,925	35,959
With No Related Allowance Recorded: Interest Income Recognized	243	1,160
With A Related Allowance Recorded: Recorded Investment	5,339	8,453
With A Related Allowance Recorded: Unpaid Principal Balance	8,553	12,909
With A Related Allowance Recorded: Related Allowance for Loan Losses	1,282	1,043
With A Related Allowance Recorded: Average Recorded Investment	4,924	16,161
With A Related Allowance Recorded: Interest Income Recognized	20	11
Recorded Investment, Total	25,860	27,261
Unpaid Principal Balance, Total	33,723	37,188
Related Allowance for Loan Losses, Total	1,282	1,043
Average Recorded Investment, Total	23,849	52,120
Interest Income Recognized, Total	263	1,171
Consumer and Installment [Member]
Loan and Lease Receivables, Impaired [Abstract]
With No Related Allowance Recorded: Recorded Investment	0	0
With No Related Allowance Recorded: Unpaid Principal Balance	0	0
With No Related Allowance Recorded: Related Allowance for Loan Losses	0	0
With No Related Allowance Recorded: Average Recorded Investment	0	0
With No Related Allowance Recorded: Interest Income Recognized	0	0
With A Related Allowance Recorded: Recorded Investment	6	28
With A Related Allowance Recorded: Unpaid Principal Balance	6	28
With A Related Allowance Recorded: Related Allowance for Loan Losses	0	1
With A Related Allowance Recorded: Average Recorded Investment	23	51
With A Related Allowance Recorded: Interest Income Recognized	0	0
Recorded Investment, Total	6	28
Unpaid Principal Balance, Total	6	28
Related Allowance for Loan Losses, Total	0	1
Average Recorded Investment, Total	23	51
Interest Income Recognized, Total	$ 0	$ 0

XML

SUBORDINATED DEBENTURES (Tables)

9 Months Ended

Sep. 30, 2013

Subordinated Borrowings [Abstract]

Summary Of Junior Subordinated Debentures Issued To Trusts [Table Text Block]

The following is a summary of the junior subordinated debentures issued to the Trusts in conjunction with the trust preferred securities offerings at September 30, 2013 and December 31, 2012:

Name of Trust	Issuance Date	Maturity Date	Call Date(1)	Interest Rate(2)	Trust Preferred Securities		Subordinated Debentures
					(dollars expressed in thousands)
Variable Rate
First Bank Statutory Trust II	September 2004	September 20, 2034	September 20, 2009	205.0 bp	$	20,000	$	20,619
Royal Oaks Capital Trust I	October 2004	January 7, 2035	January 7, 2010	240.0 bp	4,000		4,124
First Bank Statutory Trust III	November 2004	December 15, 2034	December 15, 2009	218.0 bp	40,000		41,238
First Bank Statutory Trust IV	March 2006	March 15, 2036	March 15, 2011	142.0 bp	40,000		41,238
First Bank Statutory Trust V	April 2006	June 15, 2036	June 15, 2011	145.0 bp	20,000		20,619
First Bank Statutory Trust VI	June 2006	July 7, 2036	July 7, 2011	165.0 bp	25,000		25,774
First Bank Statutory Trust VII	December 2006	December 15, 2036	December 15, 2011	185.0 bp	50,000		51,547
First Bank Statutory Trust VIII	February 2007	March 30, 2037	March 30, 2012	161.0 bp	25,000		25,774
First Bank Statutory Trust X	August 2007	September 15, 2037	September 15, 2012	230.0 bp	15,000		15,464
First Bank Statutory Trust IX	September 2007	December 15, 2037	December 15, 2012	225.0 bp	25,000		25,774
First Bank Statutory Trust XI	September 2007	December 15, 2037	December 15, 2012	285.0 bp	10,000		10,310
Fixed Rate
First Bank Statutory Trust	March 2003	March 20, 2033	March 20, 2008	8.10%	25,000		25,774
First Preferred Capital Trust IV	April 2003	June 30, 2033	June 30, 2008	8.15%	46,000		47,423

____________________

(1) The junior subordinated debentures are callable at the option of the Company on the call date shown at 100% of the principal amount plus accrued and unpaid interest.

(2) The interest rates paid on the trust preferred securities are based on either a variable rate or a fixed rate. The variable rate is based on the three-month LIBOR plus the basis point spread shown.

XML

NOTES PAYABLE AND OTHER BORROWINGS (Details Textual) (USD $)			9 Months Ended		9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013 Revolving Credit Facility [Member] Investors Of America Limited Partnership [Member]	Mar. 20, 2013 Revolving Credit Facility [Member] Investors Of America Limited Partnership [Member]	Sep. 30, 2013 London Interbank Offered Rate (LIBOR) [Member] Revolving Credit Facility [Member] Investors Of America Limited Partnership [Member]
Short-term Debt [Line Items]
Revolving Credit Note Borrowing Capacity				$ 5,000,000
Debt Instrument, Basis Spread on Variable Rate					3.00%
Debt Instrument, Description of Variable Rate Basis (LIBOR plus 300 basis points)			LIBOR plus 300 basis points
Other borrowings	$ 37,077,000	$ 26,025,000

XML

FAIR VALUE DISCLOSURES (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012
Total gains or losses (realized/unrealized):
Included in earnings	$ 283		$ (2,417)		$ 907		$ (4,608)
Fair Value, Inputs, Level 3 [Member]
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance, beginning of period	17,533		15,182		14,792		15,380
Total gains or losses (realized/unrealized):
Included in earnings	283	[1]	(2,417)	[1]	907	[1]	(4,608)	[1]
Included in other comprehensive income	0		0		0		0
Issuances	942		1,329		3,059		3,322
Transfers in and/or out of level 3	0		0		0		0
Balance, end of period	$ 18,758		$ 14,094		$ 18,758		$ 14,094

[1] Gains or losses (realized/unrealized) are included in noninterest income in the consolidated statements of operations.

XML

DERIVATIVE INSTRUMENTS (Details Textual) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Customer interest rate swap agreements [Member]
Derivative [Line Items]
Derivative, Notional Amount	$ 8,731	$ 12,149
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount	75,149	179,781
Not Designated as Hedging Instrument [Member] | Customer interest rate swap agreements [Member]
Derivative [Line Items]
Derivative, Notional Amount	8,731	12,149
Not Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivative [Line Items]
Derivative Assets	113	1,619
Not Designated as Hedging Instrument [Member] | Other Assets [Member] | Customer interest rate swap agreements [Member]
Derivative [Line Items]
Derivative Assets	7	87
Forward commitments to sell mortgage-backed securities [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivative [Line Items]
Derivative Assets	(637)	(305)
Interest rate lock commitments [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivative [Line Items]
Derivative Assets	$ 743	$ 1,837

XML

INVESTMENTS IN DEBT AND EQUITY SECURITIES - Schedule of Realized Gain (Loss) on Investments (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Investments, Debt and Equity Securities [Abstract]
Gross realized gains on sales of available-for-sale securities	$ 110	$ 790	$ 802	$ 1,682
Gross realized losses on sales of available-for-sale securities	0	0	(354)	(374)
Other-than-temporary impairment	(2)	(1)	(411)	(2)
Net realized gain on investment securities	$ 108	$ 789	$ 37	$ 1,306

XML

REGULATORY CAPITAL AND OTHER REGULATORY MATTERS (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
First Banks Inc [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital	$ 114,522	$ 93,542
Total Capital to Risk-Weighted Assets	3.20%	2.57%
Total Capital Required for Capital Adequacy	8.00%
Tier One Capital	57,261	46,771
Tier One Capital to Risk-Weighted Assets	1.60%	1.28%
Tier One Capital Required for Capital Adequacy	4.00%
Tier One Leverage Capital	57,261	46,771
Tier One Leverage Capital to Average Assets	0.94%	0.73%
Tier One Leverage Capital Required for Capital Adequacy	4.00%
First Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital	659,624	626,177
Total Capital to Risk-Weighted Assets	18.42%	17.18%
Total Capital Required for Capital Adequacy	8.00%
Total Capital Required to be Well Capitalized	10.00%
Tier One Capital	614,332	580,026
Tier One Capital to Risk-Weighted Assets	17.15%	15.92%
Tier One Capital Required for Capital Adequacy	4.00%
Tier One Capital Required to be Well Capitalized	6.00%
Tier One Leverage Capital	$ 614,332	$ 580,026
Tier One Leverage Capital to Average Assets	10.09%	9.13%
Tier One Leverage Capital Required for Capital Adequacy	4.00%
Tier One Leverage Capital Required to be Well Capitalized	5.00%

XML

BASIS OF PRESENTATION (Policies)

9 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting

The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results could differ from those estimates.

Principals of Consolidation

Principles of Consolidation. The consolidated financial statements include the accounts of the parent company and its subsidiaries, giving effect to the noncontrolling interest in subsidiary, as more fully described below and in Note 16 to the consolidated financial statements. All significant intercompany accounts and transactions have been eliminated.

The Company operates through its wholly owned subsidiary bank holding company, The San Francisco Company (SFC), headquartered in St. Louis, Missouri, and SFC’s wholly owned subsidiary bank, First Bank, also headquartered in St. Louis, Missouri. First Bank operates through its branch banking offices and subsidiaries: First Bank Business Capital, Inc.; FB Holdings, LLC (FB Holdings); Small Business Loan Source LLC; ILSIS, Inc.; FBIN, Inc.; SBRHC, Inc.; HVIIHC, Inc.; FBSA Missouri, Inc.; FBSA California, Inc.; NT Resolution Corporation; and LC Resolution Corporation. All of the subsidiaries are wholly owned as of September 30, 2013, except FB Holdings, which is 53.23% owned by First Bank and 46.77% owned by First Capital America, Inc. (FCA), a corporation owned and operated by the Company’s Chairman of the Board and members of his immediate family, including Mr. Michael Dierberg, Vice Chairman of the Company, as further described in Note 16 to the consolidated financial statements. FB Holdings is included in the consolidated financial statements and the noncontrolling ownership interest is reported as a component of stockholders’ equity in the consolidated balance sheets as “noncontrolling interest in subsidiary” and the earnings or loss, net of tax, attributable to the noncontrolling ownership interest, is reported as “net income (loss) attributable to noncontrolling interest in subsidiary” in the consolidated statements of operations.

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (USD $) In Thousands, unless otherwise specified	Total	First Banks, Inc. Stockholders’ Equity, Preferred Stock [Member]	First Banks, Inc. Stockholders’ Equity, Common Stock [Member]	First Banks, Inc. Stockholders’ Equity, Additional Paid-In Capital [Member]	First Banks, Inc. Stockholders’ Equity, Retained Earnings (Deficit) [Member]	First Banks, Inc. Stockholders’ Equity, Accumulated Other Comprehensive Income [Member]	Noncontrolling Interest [Member]
Balance at Dec. 31, 2011	$ 263,671	$ 318,609	$ 5,915	$ 12,480	$ (183,351)	$ 16,066	$ 93,952
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	25,981				26,278		(297)
Other comprehensive income (loss)	29,193					29,193
Accretion of discount on preferred stock	0	3,554			(3,554)
Preferred stock dividends declared and undeclared	(18,886)				(18,886)
Balance at Dec. 31, 2012	299,959	322,163	5,915	12,480	(179,513)	45,259	93,655
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	22,146				22,033		113
Other comprehensive income (loss)	(38,166)					(38,166)
Accretion of discount on preferred stock	0	2,725			(2,725)
Preferred stock dividends declared and undeclared	(14,841)				(14,841)
Balance at Sep. 30, 2013	$ 269,098	$ 324,888	$ 5,915	$ 12,480	$ (175,046)	$ 7,093	$ 93,768

XML

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OFPRESENTATION

Basis of Presentation. The consolidated financial statements of First Banks, Inc. and subsidiaries (the Company) are unaudited and should be read in conjunction with the consolidated financial statements contained in the Company’s 2012 Annual Report on Form 10-K. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for the interim periods presented herein, have been included. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.

Certain reclassifications of 2012 amounts have been made to conform to the 2013 presentation.

All financial information is reported on a continuing operations basis, unless otherwise noted. See Note 2 to the consolidated financial statements for a discussion regarding discontinued operations.

Principles of Consolidation. The consolidated financial statements include the accounts of the parent company and its subsidiaries, giving effect to the noncontrolling interest in subsidiary, as more fully described below and in Note 16 to the consolidated financial statements. All significant intercompany accounts and transactions have been eliminated.

The Company operates through its wholly owned subsidiary bank holding company, The San Francisco Company (SFC), headquartered in St. Louis, Missouri, and SFC’s wholly owned subsidiary bank, First Bank, also headquartered in St. Louis, Missouri. First Bank operates through its branch banking offices and subsidiaries: First Bank Business Capital, Inc.; FB Holdings, LLC (FB Holdings); Small Business Loan Source LLC; ILSIS, Inc.; FBIN, Inc.; SBRHC, Inc.; HVIIHC, Inc.; FBSA Missouri, Inc.; FBSA California, Inc.; NT Resolution Corporation; and LC Resolution Corporation. All of the subsidiaries are wholly owned as of September 30, 2013, except FB Holdings, which is 53.23% owned by First Bank and 46.77% owned by First Capital America, Inc. (FCA), a corporation owned and operated by the Company’s Chairman of the Board and members of his immediate family, including Mr. Michael Dierberg, Vice Chairman of the Company, as further described in Note 16 to the consolidated financial statements. FB Holdings is included in the consolidated financial statements and the noncontrolling ownership interest is reported as a component of stockholders’ equity in the consolidated balance sheets as “noncontrolling interest in subsidiary” and the earnings or loss, net of tax, attributable to the noncontrolling ownership interest, is reported as “net income (loss) attributable to noncontrolling interest in subsidiary” in the consolidated statements of operations.

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

LOANS AND ALLOWANCE FOR LOAN LOSSES

LOANS ANDALLOWANCE FORLOANLOSSES

The following table summarizes the composition of the loan portfolio at September 30, 2013 and December 31, 2012:

	September 30, 2013			December 31, 2012
	(dollars expressed in thousands)
Commercial, financial and agricultural	$	583,539		610,301
Real estate construction and development	125,333			174,979
Real estate mortgage:
One-to-four-family residential	924,389			986,767
Multi-family residential	103,362			103,684
Commercial real estate	1,003,533			969,680
Consumer and installment	18,773			19,262
Loans held for sale	28,313			66,133
Net deferred loan fees	(312		)	(59	)
Total loans	$	2,786,930		2,930,747

Aging of Loans. The following table presents the aging of loans by loan classification at September 30, 2013 and December 31, 2012:

	30-59 Days		60-89 Days	Recorded Investment > 90 Days Accruing	Nonaccrual	Total Past Due	Current	Total Loans
	(dollars expressed in thousands)
September 30, 2013:
Commercial, financial and agricultural	$	104	899	—	11,897	12,900	570,639	583,539
Real estate construction and development	591		21	—	7,300	7,912	117,421	125,333
Real estate mortgage:
Bank portfolio	1,447		647	171	5,893	8,158	88,821	96,979
Mortgage Division portfolio	3,937		3,242	—	16,772	23,951	460,739	484,690
Home equity	3,252		698	334	6,145	10,429	332,291	342,720
Multi-family residential	—		—	—	1,810	1,810	101,552	103,362
Commercial real estate	3,506		409	4,235	21,310	29,460	974,073	1,003,533
Consumer and installment	93		39	—	6	138	18,323	18,461
Loans held for sale	—		—	—	—	—	28,313	28,313
Total	$	12,930	5,955	4,740	71,133	94,758	2,692,172	2,786,930
December 31, 2012:
Commercial, financial and agricultural	$	1,180	322	—	19,050	20,552	589,749	610,301
Real estate construction and development	93		—	—	32,152	32,245	142,734	174,979
Real estate mortgage:
Bank portfolio	1,871		1,121	874	6,910	10,776	111,562	122,338
Mortgage Division portfolio	6,264		4,375	—	19,780	30,419	479,552	509,971
Home equity	2,494		1,221	216	8,671	12,602	341,856	354,458
Multi-family residential	—		629	—	6,761	7,390	96,294	103,684
Commercial real estate	66		693	—	16,520	17,279	952,401	969,680
Consumer and installment	174		43	—	28	245	18,958	19,203
Loans held for sale	—		—	—	—	—	66,133	66,133
Total	$	12,142	8,404	1,090	109,872	131,508	2,799,239	2,930,747

Under the Company’s loan policy, loans are placed on nonaccrual status once principal or interest payments become 90 days past due. However, individual loan officers may submit written requests for approval to continue the accrual of interest on loans that become 90 days past due. These requests may be submitted for approval consistent with the authority levels provided in the Company’s credit approval policies, and they are only granted if an expected near term future event, such as a pending renewal or expected payoff, exists at the time the loan becomes 90 days past due. If the expected near term future event does not occur as anticipated, the loan is then placed on nonaccrual status.

Credit Quality Indicators. The Company’s credit management policies and procedures focus on identifying, measuring and controlling credit exposure. These procedures employ a lender-initiated system of rating credits, which is ratified in the loan approval process and subsequently tested in internal credit reviews, external audits and regulatory bank examinations. The system requires the rating of all loans at the time they are originated or acquired, except for homogeneous categories of loans, such as residential real estate mortgage loans and consumer loans. These homogeneous loans are assigned an initial rating based on the Company’s experience with each type of loan. The Company adjusts the ratings of the homogeneous loans based on payment experience subsequent to their origination.

The Company includes adversely rated credits, including loans requiring close monitoring that would not normally be considered classified credits by the Company’s regulators, on its monthly loan watch list. Loans may be added to the Company’s watch list for reasons that are temporary and correctable, such as the absence of current financial statements of the borrower or a deficiency in loan documentation. Loans may also be added to the Company’s watch list whenever any adverse circumstance is detected which might affect the borrower’s ability to comply with the contractual terms of the loan. The delinquency of a scheduled loan payment, deterioration in the borrower’s financial condition identified in a review of periodic financial statements, a decrease in the value of the collateral securing the loan, or a change in the economic environment within which the borrower operates could initiate the addition of a loan to the Company’s watch list. Loans on the Company’s watch list require periodic detailed loan status reports prepared by the responsible officer which are discussed in formal meetings with credit review and credit administration staff members. Upgrades and downgrades of loan risk ratings may be initiated by the responsible loan officer. However, upgrades of risk ratings associated with significant credit relationships and/or problem credit relationships may only be made with the concurrence of appropriate regional credit officers.

Under the Company’s risk rating system, special mention loans are those loans that do not currently expose the Company to sufficient risk to warrant classification as substandard, troubled debt restructuring (TDR) or nonaccrual, but possess weaknesses that deserve management’s close attention. Substandard loans include those loans characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. A loan is classified as a TDR when a borrower is experiencing financial difficulties that lead to the restructuring of a loan, and the Company grants concessions to the borrower in the restructuring that it would not otherwise consider. Loans classified as TDRs which are accruing interest are classified as performing TDRs. Loans classified as TDRs which are not accruing interest are classified as nonperforming TDRs and are included with all other nonaccrual loans for presentation purposes. Loans classified as nonaccrual have all the weaknesses inherent in those loans classified as substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans.

The following tables present the credit exposure of the loan portfolio by internally assigned credit grade and payment activity as of September 30, 2013 and December 31, 2012:

Commercial Loan Portfolio Credit Exposure by Internally Assigned Credit Grade	Commercial and Industrial		Real Estate Construction and Development	Multi-family	Commercial Real Estate	Total
			(dollars expressed in thousands)
September 30, 2013:
Pass	$	553,028	41,608	72,927	932,267	1,599,830
Special mention	11,170		3,140	—	28,040	42,350
Substandard	7,444		73,285	555	17,366	98,650
Performing troubled debt restructuring	—		—	28,070	4,550	32,620
Nonaccrual	11,897		7,300	1,810	21,310	42,317
Total	$	583,539	125,333	103,362	1,003,533	1,815,767
December 31, 2012:
Pass	$	572,248	45,356	67,690	858,101	1,543,395
Special mention	10,580		6,076	220	70,450	87,326
Substandard	8,423		81,364	773	13,868	104,428
Performing troubled debt restructuring	—		10,031	28,240	10,741	49,012
Nonaccrual	19,050		32,152	6,761	16,520	74,483
Total	$	610,301	174,979	103,684	969,680	1,858,644

One-to-Four-Family Residential Mortgage Bank and Home Equity Loan Portfolio Credit Exposure by Internally Assigned Credit Grade	Bank Portfolio		Home Equity	Total
	(dollars expressed in thousands)
September 30, 2013:
Pass	$	83,724	334,491	418,215
Special mention	6,465		334	6,799
Substandard	193		1,750	1,943
Performing troubled debt restructuring	704		—	704
Nonaccrual	5,893		6,145	12,038
Total	$	96,979	342,720	439,699
December 31, 2012:
Pass	$	107,625	342,321	449,946
Special mention	4,405		216	4,621
Substandard	1,787		3,250	5,037
Performing troubled debt restructuring	1,611		—	1,611
Nonaccrual	6,910		8,671	15,581
Total	$	122,338	354,458	476,796

One-to-Four-Family Residential Mortgage Division and Consumer and Installment Loan Portfolio Credit Exposure by Payment Activity	Mortgage Division Portfolio		Consumer and Installment	Total
	(dollars expressed in thousands)
September 30, 2013:
Pass	$	386,719	18,455	405,174
Substandard	4,291		—	4,291
Performing troubled debt restructuring	76,908		—	76,908
Nonaccrual	16,772		6	16,778
Total	$	484,690	18,461	503,151
December 31, 2012:
Pass	$	405,270	19,175	424,445
Substandard	6,627		—	6,627
Performing troubled debt restructuring	78,294		—	78,294
Nonaccrual	19,780		28	19,808
Total	$	509,971	19,203	529,174

Impaired Loans. Loans deemed to be impaired include performing TDRs and nonaccrual loans. Impaired loans with outstanding balances equal to or greater than $500,000 are evaluated individually for impairment. For these loans, the Company measures the level of impairment based on the present value of the estimated projected cash flows or the estimated value of the collateral. If the current valuation is lower than the current book balance of the loan, the amount of the difference is evaluated for possible charge-off. In instances where management determines that a charge-off is not appropriate, a specific reserve is established for the individual loan in question. This specific reserve is included as a part of the overall allowance for loan losses.

The following tables present the recorded investment, unpaid principal balance, related allowance for loan losses, average recorded investment and interest income recognized while on impaired status for impaired loans without a related allowance for loan losses and for impaired loans with a related allowance for loan losses by loan classification at September 30, 2013 and December 31, 2012:

	Recorded Investment		Unpaid Principal Balance	Related Allowance for Loan Losses	Average Recorded Investment	Interest Income Recognized
	(dollars expressed in thousands)
September 30, 2013:
With No Related Allowance Recorded:
Commercial, financial and agricultural	$	3,222	4,456	—	4,164	1
Real estate construction and development	5,619		23,133	—	24,620	418
Real estate mortgage:
Bank portfolio	—		—	—	—	34
Mortgage Division portfolio	9,098		18,483	—	9,365	—
Home equity	601		632	—	672	—
Multi-family residential	28,513		28,778	—	30,896	921
Commercial real estate	20,521		25,170	—	18,925	243
Consumer and installment	—		—	—	—	—
	67,574		100,652	—	88,642	1,617
With A Related Allowance Recorded:
Commercial, financial and agricultural	8,675		23,419	461	11,213	—
Real estate construction and development	1,681		4,246	369	7,365	—
Real estate mortgage:
Bank portfolio	6,597		8,295	301	7,489	—
Mortgage Division portfolio	84,582		94,399	10,562	87,061	1,481
Home equity	5,544		6,396	1,229	6,200	—
Multi-family residential	1,367		1,371	1,159	1,481	—
Commercial real estate	5,339		8,553	1,282	4,924	20
Consumer and installment	6		6	—	23	—
	113,791		146,685	15,363	125,756	1,501
Total:
Commercial, financial and agricultural	11,897		27,875	461	15,377	1
Real estate construction and development	7,300		27,379	369	31,985	418
Real estate mortgage:
Bank portfolio	6,597		8,295	301	7,489	34
Mortgage Division portfolio	93,680		112,882	10,562	96,426	1,481
Home equity	6,145		7,028	1,229	6,872	—
Multi-family residential	29,880		30,149	1,159	32,377	921
Commercial real estate	25,860		33,723	1,282	23,849	263
Consumer and installment	6		6	—	23	—
	$	181,365	247,337	15,363	214,398	3,118

	Recorded Investment		Unpaid Principal Balance	Related Allowance for Loan Losses	Average Recorded Investment	Interest Income Recognized
	(dollars expressed in thousands)
December 31, 2012:
With No Related Allowance Recorded:
Commercial, financial and agricultural	$	6,451	24,287	—	12,369	215
Real estate construction and development	39,706		74,044	—	59,094	561
Real estate mortgage:
Bank portfolio	1,611		1,690	—	2,166	32
Mortgage Division portfolio	10,255		22,102	—	10,308	—
Home equity	1,382		1,507	—	1,232	—
Multi-family residential	33,709		37,206	—	13,682	280
Commercial real estate	18,808		24,279	—	35,959	1,160
Consumer and installment	—		—	—	—	—
	111,922		185,115	—	134,810	2,248
With A Related Allowance Recorded:
Commercial, financial and agricultural	12,599		19,255	676	24,157	—
Real estate construction and development	2,477		10,221	1,452	3,687	114
Real estate mortgage:
Bank portfolio	6,910		8,655	284	9,288	—
Mortgage Division portfolio	87,819		96,931	11,574	88,277	2,050
Home equity	7,289		8,188	1,784	6,500	—
Multi-family residential	1,292		1,403	1,138	524	—
Commercial real estate	8,453		12,909	1,043	16,161	11
Consumer and installment	28		28	1	51	—
	126,867		157,590	17,952	148,645	2,175
Total:
Commercial, financial and agricultural	19,050		43,542	676	36,526	215
Real estate construction and development	42,183		84,265	1,452	62,781	675
Real estate mortgage:
Bank portfolio	8,521		10,345	284	11,454	32
Mortgage Division portfolio	98,074		119,033	11,574	98,585	2,050
Home equity	8,671		9,695	1,784	7,732	—
Multi-family residential	35,001		38,609	1,138	14,206	280
Commercial real estate	27,261		37,188	1,043	52,120	1,171
Consumer and installment	28		28	1	51	—
	$	238,789	342,705	17,952	283,455	4,423

Recorded investment represents the Company’s investment in its impaired loans reduced by cumulative charge-offs recorded against the allowance for loan losses on these same loans. At September 30, 2013 and December 31, 2012, the Company had recorded charge-offs of $66.0 million and $103.9 million, respectively, on its impaired loans, representing the difference between the unpaid principal balance and the recorded investment reflected in the tables above. The unpaid principal balance represents the principal amount contractually owed to the Company by the borrowers on the impaired loans.

Troubled Debt Restructurings. In the ordinary course of business, the Company modifies loan terms across loan types, including both consumer and commercial loans, for a variety of reasons. Modifications to consumer loans may include, but are not limited to, changes in interest rate, maturity, amortization and financial covenants. In the original underwriting, loan terms are established that represent the then current and projected financial condition of the borrower. Over any period of time, modifications to these loan terms may be required due to changes in the original underwriting assumptions. These changes may include the financial covenants of the borrower as well as underwriting standards.

Loan modifications are generally performed at the request of the borrower, whether commercial or consumer, and may include reductions in interest rates, changes in payments and maturity date extensions. Although the Company does not have formal, standardized loan modification programs for its commercial or consumer loan portfolios, it addresses loan modifications on a case-by-case basis and also participates in the U.S. Treasury’s Home Affordable Modification Program (HAMP). HAMP gives qualifying homeowners an opportunity to refinance into more affordable monthly payments, with the U.S. Treasury compensating the Company for a portion of the reduction in monthly amounts due from borrowers participating in this program. At September 30, 2013 and December 31, 2012, the Company had $73.7 million and $75.7 million, respectively, of modified loans in the HAMP program.

For a loan modification to be classified as a TDR, all of the following conditions must be present: (1) the borrower is experiencing financial difficulty, (2) the Company makes a concession to the original contractual loan terms and (3) the Company would not consider the concessions but for economic or legal reasons related to the borrower’s financial difficulty. Modifications of loan terms to borrowers experiencing financial difficulty are made in an attempt to protect as much of the investment in the loan as possible. These modifications are generally made to either prevent a loan from becoming nonaccrual or to return a nonaccrual loan to performing status based on the expectations that the borrower can adequately perform in accordance with the modified terms.

The determination of whether a modification should be classified as a TDR requires significant judgment after taking into consideration all facts and circumstances surrounding the transaction. No single characteristic or factor, taken alone, is determinative of whether a modification should be classified as a TDR. The fact that a single characteristic is present is not considered sufficient to overcome the preponderance of contrary evidence. Assuming all of the TDR criteria are met, the Company considers one or more of the following concessions to the loan terms to represent a TDR: (1) a reduction of the stated interest rate, (2) an extension of the maturity date or dates at a stated interest rate lower than the current market rate for a new loan with similar terms or (3) forgiveness of principal or accrued interest.

Loans renegotiated at a rate equal to or greater than that of a new loan with comparable risk at the time the contract is modified are excluded from TDR classification in the calendar years subsequent to the renegotiation if the loan is in compliance with the modified terms for at least six months.

The Company does not accrue interest on any TDRs unless it believes collection of all principal and interest under the modified terms is reasonably assured. Generally, six months of consecutive payment performance by the borrower under the restructured terms is required before a TDR is returned to accrual status. However, the period could vary depending upon the individual facts and circumstances of the loan. TDRs accruing interest are classified as performing TDRs. The following table presents the categories of performing TDRs as of September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Performing Troubled Debt Restructurings:
Real estate construction and development	$	—	10,031
Real estate mortgage:
One-to-four-family residential	77,612		79,905
Multi-family residential	28,070		28,240
Commercial real estate	4,550		10,741
Total performing troubled debt restructurings	$	110,232	128,917

The Company does not accrue interest on TDRs which have been modified for a period less than six months or are not in compliance with the modified terms. These loans are considered nonperforming TDRs and are included with other nonaccrual loans for classification purposes. The following table presents the categories of loans considered nonperforming TDRs as of September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Nonperforming Troubled Debt Restructurings:
Commercial, financial and agricultural	$	726	1,004
Real estate construction and development	3,906		26,557
Real estate mortgage:
One-to-four-family residential	6,450		7,105
Multi-family residential	—		2,482
Commercial real estate	662		2,862
Total nonperforming troubled debt restructurings	$	11,744	40,010

Both performing and nonperforming TDRs are considered to be impaired loans. When an individual loan is determined to be a TDR, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less applicable selling costs. The impairment amount is either charged off as a reduction to the allowance for loan losses or provided for as a specific reserve within the allowance for loan losses. The allowance for loan losses allocated to TDRs was $8.8 million and $9.5 million at September 30, 2013 and December 31, 2012, respectively.

The following tables present loans classified as TDRs that were modified during the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30, 2013					Three Months Ended September 30, 2012
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars expressed in thousands)
Loan Modifications Classified as Troubled Debt Restructurings:
Commercial, financial and agricultural	—	$	—	$	—	1	$	640	$	640
Real estate construction and development	—	—		—		2	5,460		5,280
Real estate mortgage:
One-to-four-family residential	15	3,405		3,095		13	2,069		2,065
Commercial real estate	—	—		—		2	4,947		4,947

	Nine Months Ended September 30, 2013					Nine Months Ended September 30, 2012
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars expressed in thousands)
Loan Modifications Classified as Troubled Debt Restructurings:
Commercial, financial and agricultural	2	$	246	$	201	1	$	640	$	640
Real estate construction and development	—	—		—		4	6,263		5,670
Real estate mortgage:
One-to-four-family residential	35	8,275		7,637		42	7,496		7,443
Commercial real estate	—	—		—		3	9,965		9,965

The following tables present TDRs that defaulted within 12 months of modification during the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended			Three Months Ended
	September 30, 2013			September 30, 2012
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(dollars expressed in thousands)
Troubled Debt Restructurings That Subsequently Defaulted:
Commercial, financial and agricultural	1	$	156	—	$	—
Real estate construction and development	—	—		—	—
Real estate mortgage:
One-to-four-family residential	14	3,016		11	2,155

	Nine Months Ended			Nine Months Ended
	September 30, 2013			September 30, 2012
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(dollars expressed in thousands)
Troubled Debt Restructurings That Subsequently Defaulted:
Commercial, financial and agricultural	1	$	156	—	$	—
Real estate construction and development	—	—		3	1,364
Real estate mortgage:
One-to-four-family residential	43	7,937		39	8,049

Upon default of a TDR, which is considered to be 90 days or more past due under the modified terms, impairment is measured based on the fair value of the underlying collateral less applicable selling costs. The impairment amount is either charged off as a reduction to the allowance for loan losses or provided for as a specific reserve within the allowance for loan losses.

Allowance for Loan Losses. Changes in the allowance for loan losses for the three and nine months ended September 30, 2013 and 2012 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Balance, beginning of period	$	85,633		120,227		91,602		137,710
Loans charged-off	(7,040		)	(13,927	)	(20,794	)	(48,327	)
Recoveries of loans previously charged-off	5,684			7,902		13,469		22,819
Net loans charged-off	(1,356		)	(6,025	)	(7,325	)	(25,508	)
Provision for loan losses	—			—		—		2,000
Balance, end of period	$	84,277		114,202		84,277		114,202

The following table represents a summary of changes in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2013:

	Commercial and Industrial			Real Estate Construction and Development		One-to- Four-Family Residential		Multi- Family Residential		Commercial Real Estate		Consumer and Installment		Total
	(dollars expressed in thousands)
Three Months Ended September 30, 2013:
Allowance for loan losses:
Beginning balance	$	13,966		11,412		35,266		4,122		20,573		294		85,633
Charge-offs	(2,241		)	—		(2,256	)	—		(2,488	)	(55	)	(7,040	)
Recoveries	1,773			2,557		879		—		443		32		5,684
Provision (benefit) for loan losses	526			(4,967	)	824		39		3,551		27		—
Ending balance	$	14,024		9,002		34,713		4,161		22,079		298		84,277
Nine Months Ended September 30, 2013:
Allowance for loan losses:
Beginning balance	$	13,572		14,434		38,897		4,252		20,048		399		91,602
Charge-offs	(3,927		)	(448	)	(10,983	)	(162	)	(5,121	)	(153	)	(20,794	)
Recoveries	3,863			4,273		3,398		141		1,683		111		13,469
Provision (benefit) for loan losses	516			(9,257	)	3,401		(70	)	5,469		(59	)	—
Ending balance	$	14,024		9,002		34,713		4,161		22,079		298		84,277

The following table represents a summary of changes in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2012:

	Commercial and Industrial			Real Estate Construction and Development		One-to- Four-Family Residential		Multi- Family Residential		Commercial Real Estate		Consumer and Installment		Total
	(dollars expressed in thousands)
Three Months Ended September 30, 2012:
Allowance for loan losses:
Beginning balance	$	22,015		21,829		43,702		4,816		27,471		394		120,227
Charge-offs	(2,475		)	(2,495	)	(6,178	)	(143	)	(2,636	)	—		(13,927	)
Recoveries	4,907			534		1,579		1		827		54		7,902
Provision (benefit) for loan losses	(3,179		)	(37	)	3,311		388		(440	)	(43	)	—
Ending balance	$	21,268		19,831		42,414		5,062		25,222		405		114,202
Nine Months Ended September 30, 2012:
Allowance for loan losses:
Beginning balance	$	27,243		24,868		50,864		4,851		29,448		436		137,710
Charge-offs	(12,708		)	(8,918	)	(15,094	)	(1,312	)	(10,026	)	(269	)	(48,327	)
Recoveries	10,651			4,253		4,054		44		3,673		144		22,819
Provision (benefit) for loan losses	(3,918		)	(372	)	2,590		1,479		2,127		94		2,000
Ending balance	$	21,268		19,831		42,414		5,062		25,222		405		114,202

The following table represents a summary of the impairment method used by loan category at September 30, 2013 and December 31, 2012:

	Commercial and Industrial		Real Estate Construction and Development	One-to- Four-Family Residential	Multi- Family Residential	Commercial Real Estate	Consumer and Installment	Total
	(dollars expressed in thousands)
September 30, 2013:
Allowance for loan losses:
Impaired loans individually evaluated for impairment	$	—	86	2,945	—	279	—	3,310
Impaired loans collectively evaluated for impairment	461		283	9,147	1,159	1,003	—	12,053
All other loans collectively evaluated for impairment	13,563		8,633	22,621	3,002	20,797	298	68,914
Total	$	14,024	9,002	34,713	4,161	22,079	298	84,277
Financing receivables:
Impaired loans individually evaluated for impairment	$	3,587	5,911	12,310	28,756	20,805	—	71,369
Impaired loans collectively evaluated for impairment	8,310		1,389	94,112	1,124	5,055	6	109,996
All other loans collectively evaluated for impairment	571,642		118,033	817,967	73,482	977,673	18,455	2,577,252
Total	$	583,539	125,333	924,389	103,362	1,003,533	18,461	2,758,617
December 31, 2012:
Allowance for loan losses:
Impaired loans individually evaluated for impairment	$	75	121	3,187	33	182	—	3,598
Impaired loans collectively evaluated for impairment	601		1,331	10,455	1,105	861	1	14,354
All other loans collectively evaluated for impairment	12,896		12,982	25,255	3,114	19,005	398	73,650
Total	$	13,572	14,434	38,897	4,252	20,048	399	91,602
Financing receivables:
Impaired loans individually evaluated for impairment	$	7,884	39,155	16,843	34,636	20,965	—	119,483
Impaired loans collectively evaluated for impairment	11,166		3,028	98,423	365	6,296	28	119,306
All other loans collectively evaluated for impairment	591,251		132,796	871,501	68,683	942,419	19,175	2,625,825
Total	$	610,301	174,979	986,767	103,684	969,680	19,203	2,864,614

XML

FAIR VALUE DISCLOSURES (Details 2) (Fair Value, Measurements, Nonrecurring [Member], USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 240,833	$ 312,832
Commercial, financial and agricultural [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	11,436	18,374
Real estate construction and development [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	6,931	40,731
Bank Portfolio [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	6,296	8,237
Mortgage Division Portfolio [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	83,118	86,500
Home Equity [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	4,916	6,887
Multi-family residential [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	28,721	33,863
Commercial real estate [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	24,578	26,218
Consumer and Installment [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	6	27
Other Real Estate and Repossessed Assets [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	74,831	91,995
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 1 [Member] | Commercial, financial and agricultural [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 1 [Member] | Real estate construction and development [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 1 [Member] | Bank Portfolio [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 1 [Member] | Mortgage Division Portfolio [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 1 [Member] | Home Equity [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 1 [Member] | Multi-family residential [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 1 [Member] | Commercial real estate [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 1 [Member] | Consumer and Installment [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 1 [Member] | Other Real Estate and Repossessed Assets [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 2 [Member] | Commercial, financial and agricultural [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 2 [Member] | Real estate construction and development [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 2 [Member] | Bank Portfolio [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 2 [Member] | Mortgage Division Portfolio [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 2 [Member] | Home Equity [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 2 [Member] | Multi-family residential [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 2 [Member] | Commercial real estate [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 2 [Member] | Consumer and Installment [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 2 [Member] | Other Real Estate and Repossessed Assets [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	240,833	312,832
Fair Value, Inputs, Level 3 [Member] | Commercial, financial and agricultural [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	11,436	18,374
Fair Value, Inputs, Level 3 [Member] | Real estate construction and development [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	6,931	40,731
Fair Value, Inputs, Level 3 [Member] | Bank Portfolio [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	6,296	8,237
Fair Value, Inputs, Level 3 [Member] | Mortgage Division Portfolio [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	83,118	86,500
Fair Value, Inputs, Level 3 [Member] | Home Equity [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	4,916	6,887
Fair Value, Inputs, Level 3 [Member] | Multi-family residential [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	28,721	33,863
Fair Value, Inputs, Level 3 [Member] | Commercial real estate [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	24,578	26,218
Fair Value, Inputs, Level 3 [Member] | Consumer and Installment [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	6	27
Fair Value, Inputs, Level 3 [Member] | Other Real Estate and Repossessed Assets [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 74,831	$ 91,995

XML

DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUEDOPERATIONS

Discontinued Operations. The assets and liabilities associated with the transactions described (and defined) below were previously reported in the First Bank segment and were sold as part of the Company’s Capital Optimization Plan (Capital Plan). The Company applied discontinued operations accounting in accordance with ASC Topic 205-20, “Presentation of Financial Statements – Discontinued Operations,” to the assets and liabilities associated with the Association Bank Services line of business as of September 30, 2013, to the assets and liabilities associated with the Northern Florida Region as of December 31, 2012, and to the operations of First Bank’s Association Bank Services line of business and Northern Florida Region for the three and nine months ended September 30, 2013 and 2012, as applicable. The Company did not allocate any consolidated interest that is not directly attributable to or related to discontinued operations. All financial information in the consolidated financial statements and notes to the consolidated financial statements is reported on a continuing operations basis, unless otherwise noted.

Association Bank Services. On May 13, 2013, First Bank entered into a Purchase and Assumption Agreement that provides for the sale of certain assets and the transfer of certain liabilities, primarily deposits, of First Bank's Association Bank Services (ABS) line of business, to Union Bank, N.A. (Union Bank), headquartered in San Francisco, California. ABS, headquartered in Vallejo, California, provides a full range of services to homeowners associations and community management companies. Under the terms of the agreement, Union Bank will assume approximately $549.1 million of deposits and will pay a premium on certain deposit accounts to be acquired in the transaction, which will be determined based on the average amount of certain deposits within ABS for the thirty (30) days prior to the closing date. Union Bank will also acquire certain assets, including loans of approximately $20.4 million at par value. Regulatory approval of the transaction was received on July 15, 2013 and, subject to satisfaction of other customary closing conditions, the transaction is expected to close during the fourth quarter of 2013. The assets and liabilities associated with ABS are reflected in assets and liabilities of discontinued operations in the consolidated balance sheets as of September 30, 2013. First Bank expects to record a gain on the transaction of approximately $26.0 million, after the estimated write-off of goodwill of $18.0 million allocated to the ABS line of business.

Northern Florida Region. On November 21, 2012, First Bank entered into a Branch Purchase and Assumption Agreement that provided for the sale of certain assets and the transfer of certain liabilities associated with eight of First Bank’s retail branches located in Pinellas County, Florida to HomeBanc National Association (HomeBanc), headquartered in Lake Mary, Florida. The transaction was completed on April 19, 2013. Under the terms of the agreement, HomeBanc assumed $120.3 million of deposits, purchased the premises and equipment, and assumed the leases associated with these eight retail branches. The transaction resulted in a gain of $408,000, after the write-off of goodwill of $700,000 allocated to the Northern Florida Region, during the second and third quarters of 2013.

On April 5, 2013, First Bank closed its three remaining retail branches located in Hillsborough County and in Pasco County. The closure of these three remaining retail branches in the Northern Florida Region resulted in expense of $2.3 million during the second quarter of 2013 attributable to continuing obligations under facility leasing arrangements.

The eight branches sold and three branches closed during the second quarter of 2013 are collectively defined as the Northern Florida Region. The assets and liabilities associated with the Northern Florida Region are reflected in assets and liabilities of discontinued operations in the consolidated balance sheets as of December 31, 2012.

Assets and liabilities of discontinued operations at September 30, 2013 and December 31, 2012 were as follows:

	September 30, 2013			December 31, 2012
	Association Bank Services			Northern Florida
	(dollars expressed in thousands)
Cash and due from banks	$	—		1,139
Loans:
Commercial, financial and agricultural	20,591			—
Consumer and installment	10			—
Net deferred loan fees	(208		)	—
Total loans	20,393			—
Bank premises and equipment, net	70			4,837
Goodwill	18,000			700
Other assets	48			30
Assets of discontinued operations	$	38,511		6,706
Deposits:
Noninterest-bearing demand	$	129,785		12,488
Interest-bearing demand	339,297			10,480
Savings and money market	18,455			67,686
Time deposits of $100 or more	23,931			27,034
Other time deposits	37,631			37,964
Total deposits	549,099			155,652
Accrued expenses and other liabilities	56			59
Liabilities of discontinued operations	$	549,155		155,711

Loss from discontinued operations, net of tax, for the three months ended September 30, 2013 and 2012 was as follows:

	Three Months Ended						Three Months Ended
	September 30, 2013						September 30, 2012
	Association Bank Services			Northern Florida	Total		Association Bank Services		Northern Florida		Total
				(dollars expressed in thousands)
Interest income:
Interest and fees on loans	$	332		—	332		418		—		418
Interest expense:
Interest on deposits	78			—	78		121		222		343
Net interest income (loss)	254			—	254		297		(222	)	75
Provision for loan losses	—			—	—		—		—		—
Net interest income (loss) after provision for loan losses	254			—	254		297		(222	)	75
Noninterest income:
Service charges and customer service fees	17			—	17		22		101		123
Other	28			—	28		27		3		30
Total noninterest income	45			—	45		49		104		153
Noninterest expense:
Salaries and employee benefits	753			—	753		625		559		1,184
Occupancy, net of rental income	1			—	1		2		437		439
Furniture and equipment	13			—	13		29		62		91
FDIC insurance	194			—	194		317		97		414
Other	233			—	233		204		78		282
Total noninterest expense	1,194			—	1,194		1,177		1,233		2,410
Loss from operations of discontinued operations	(895		)	—	(895	)	(831	)	(1,351	)	(2,182	)
Net gain on sale of discontinued operations	—			14	14		—		—		—
Benefit for income taxes	—			—	—		—		—		—
Net (loss) income from discontinued operations, net of tax	$	(895	)	14	(881	)	(831	)	(1,351	)	(2,182	)

Loss from discontinued operations, net of tax, for the nine months ended September 30, 2013 and 2012 was as follows:

	Nine Months Ended							Nine Months Ended
	September 30, 2013							September 30, 2012
	Association Bank Services			Northern Florida		Total		Association Bank Services		Northern Florida		Total
	(dollars expressed in thousands)
Interest income:
Interest and fees on loans	$	1,036		—		1,036		1,360		—		1,360
Interest expense:
Interest on deposits	248			233		481		375		769		1,144
Net interest income (loss)	788			(233	)	555		985		(769	)	216
Provision for loan losses	—			—		—		—		—		—
Net interest income (loss) after provision for loan losses	788			(233	)	555		985		(769	)	216
Noninterest income:
Service charges and customer service fees	74			134		208		106		332		438
Other	81			4		85		82		9		91
Total noninterest income	155			138		293		188		341		529
Noninterest expense:
Salaries and employee benefits	2,209			885		3,094		1,964		1,722		3,686
Occupancy, net of rental income	5			579		584		8		1,321		1,329
Furniture and equipment	34			40		74		74		223		297
FDIC insurance	603			53		656		928		300		1,228
Other	675			2,452		3,127		690		278		968
Total noninterest expense	3,526			4,009		7,535		3,664		3,844		7,508
Loss from operations of discontinued operations	(2,583		)	(4,104	)	(6,687	)	(2,491	)	(4,272	)	(6,763	)
Net gain on sale of discontinued operations	—			408		408		—		—		—
Benefit for income taxes	—			—		—		—		—		—
Net loss from discontinued operations, net of tax	$	(2,583	)	(3,696	)	(6,279	)	(2,491	)	(4,272	)	(6,763	)

XML

INVESTMENTS IN DEBT AND EQUITY SECURITIES - Available-for-sale Securities (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities Maturities With In One Year Amortized Cost	$ 6,002	$ 11,400
Available-for-sale Securities Maturities After One Through Five Years Amortized Cost	215,767	245,011
Available-for-sale Securities Maturities After Five Through Ten Years Amortized Cost	273,314	269,997
Available-for-sale Securities Maturities After Ten Years Amortized Cost	1,099,665	1,466,809
Available-for-sale Securities, Amortized Cost Basis	1,594,748	1,993,217
Available-for-sale Securities, Gross Unrealized Gains	25,832	51,774
Available-for-sale Securities, Gross Unrealized Losses	(16,293)	(1,264)
Available-for-sale Securities	1,604,287	2,043,727
Available-for-sale Securities Weighted Average Yield	2.27%	2.26%
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	6,064	11,476
Available-for-sale Securities, Debt Maturities, Year One Through Five, Fair Value	222,057	251,558
Available-for-sale Securities, Debt Maturities, Year Five Through Ten, Fair Value	273,224	275,251
Available-for-sale Securities, Debt Maturities, After Ten Years, Fair Value	1,102,942	1,505,442
Available-for-sale Securities Weighted Average Yield With In One Year	3.05%	2.01%
Available-for-sale Securities Weighted Average Yield After One Through Five Years	2.24%	2.17%
Available-for-sale Securities Weighted Average Yield After Five Through Ten Years	1.92%	2.65%
Available-for-sale Securities Weighted Average Yield After Ten Years	2.36%	2.21%
U.S. Government sponsored agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities Maturities With In One Year Amortized Cost	0	10,051
Available-for-sale Securities Maturities After One Through Five Years Amortized Cost	48,784	80,328
Available-for-sale Securities Maturities After Five Through Ten Years Amortized Cost	88,769	0
Available-for-sale Securities Maturities After Ten Years Amortized Cost	136,582	213,892
Available-for-sale Securities, Amortized Cost Basis	274,135	304,271
Available-for-sale Securities, Gross Unrealized Gains	3,067	6,304
Available-for-sale Securities, Gross Unrealized Losses	(1,168)	(146)
Available-for-sale Securities	276,034	310,429
Available-for-sale Securities Weighted Average Yield	1.36%	1.42%
Residential mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities Maturities With In One Year Amortized Cost	0	364
Available-for-sale Securities Maturities After One Through Five Years Amortized Cost	23,581	24,014
Available-for-sale Securities Maturities After Five Through Ten Years Amortized Cost	138,415	219,286
Available-for-sale Securities Maturities After Ten Years Amortized Cost	933,135	1,251,917
Available-for-sale Securities, Amortized Cost Basis	1,095,131	1,495,581
Available-for-sale Securities, Gross Unrealized Gains	17,245	38,983
Available-for-sale Securities, Gross Unrealized Losses	(14,147)	(497)
Available-for-sale Securities	1,098,229	1,534,067
Available-for-sale Securities Weighted Average Yield	2.44%	2.32%
Commercial mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities Maturities With In One Year Amortized Cost	0	0
Available-for-sale Securities Maturities After One Through Five Years Amortized Cost	0	0
Available-for-sale Securities Maturities After Five Through Ten Years Amortized Cost	796	806
Available-for-sale Securities Maturities After Ten Years Amortized Cost	0	0
Available-for-sale Securities, Amortized Cost Basis	796	806
Available-for-sale Securities, Gross Unrealized Gains	72	109
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities	868	915
Available-for-sale Securities Weighted Average Yield	5.03%	4.86%
State and political subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities Maturities With In One Year Amortized Cost	1,042	985
Available-for-sale Securities Maturities After One Through Five Years Amortized Cost	3,060	3,579
Available-for-sale Securities Maturities After Five Through Ten Years Amortized Cost	201	201
Available-for-sale Securities Maturities After Ten Years Amortized Cost	28,448	0
Available-for-sale Securities, Amortized Cost Basis	32,751	4,765
Available-for-sale Securities, Gross Unrealized Gains	98	164
Available-for-sale Securities, Gross Unrealized Losses	(588)	0
Available-for-sale Securities	32,261	4,929
Available-for-sale Securities Weighted Average Yield	1.35%	4.05%
Corporate notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities Maturities With In One Year Amortized Cost	4,960	0
Available-for-sale Securities Maturities After One Through Five Years Amortized Cost	140,342	137,090
Available-for-sale Securities Maturities After Five Through Ten Years Amortized Cost	45,133	49,704
Available-for-sale Securities Maturities After Ten Years Amortized Cost	0	0
Available-for-sale Securities, Amortized Cost Basis	190,435	186,794
Available-for-sale Securities, Gross Unrealized Gains	5,350	6,192
Available-for-sale Securities, Gross Unrealized Losses	(346)	(621)
Available-for-sale Securities	195,439	192,365
Available-for-sale Securities Weighted Average Yield	2.76%	3.13%
Equity investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities Maturities With In One Year Amortized Cost	0	0
Available-for-sale Securities Maturities After One Through Five Years Amortized Cost	0	0
Available-for-sale Securities Maturities After Five Through Ten Years Amortized Cost	0	0
Available-for-sale Securities Maturities After Ten Years Amortized Cost	1,500	1,000
Available-for-sale Securities, Amortized Cost Basis	1,500	1,000
Available-for-sale Securities, Gross Unrealized Gains	0	22
Available-for-sale Securities, Gross Unrealized Losses	(44)	0
Available-for-sale Securities	1,456	1,022
Available-for-sale Securities Weighted Average Yield	2.19%	2.54%
Debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	6,064	11,476
Available-for-sale Securities, Debt Maturities, Year One Through Five, Fair Value	222,057	251,558
Available-for-sale Securities, Debt Maturities, Year Five Through Ten, Fair Value	273,224	275,251
Available-for-sale Securities, Debt Maturities, After Ten Years, Fair Value	1,101,486	1,504,420
Equity securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	0	0
Available-for-sale Securities, Debt Maturities, Year One Through Five, Fair Value	0	0
Available-for-sale Securities, Debt Maturities, Year Five Through Ten, Fair Value	0	0
Available-for-sale Securities, Debt Maturities, After Ten Years, Fair Value	$ 1,456	$ 1,022

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The following table summarizes the composition of the loan portfolio at September 30, 2013 and December 31, 2012:

	September 30, 2013			December 31, 2012
	(dollars expressed in thousands)
Commercial, financial and agricultural	$	583,539		610,301
Real estate construction and development	125,333			174,979
Real estate mortgage:
One-to-four-family residential	924,389			986,767
Multi-family residential	103,362			103,684
Commercial real estate	1,003,533			969,680
Consumer and installment	18,773			19,262
Loans held for sale	28,313			66,133
Net deferred loan fees	(312		)	(59	)
Total loans	$	2,786,930		2,930,747

Past Due Financing Receivables [Table Text Block]

The following table presents the aging of loans by loan classification at September 30, 2013 and December 31, 2012:

	30-59 Days		60-89 Days	Recorded Investment > 90 Days Accruing	Nonaccrual	Total Past Due	Current	Total Loans
	(dollars expressed in thousands)
September 30, 2013:
Commercial, financial and agricultural	$	104	899	—	11,897	12,900	570,639	583,539
Real estate construction and development	591		21	—	7,300	7,912	117,421	125,333
Real estate mortgage:
Bank portfolio	1,447		647	171	5,893	8,158	88,821	96,979
Mortgage Division portfolio	3,937		3,242	—	16,772	23,951	460,739	484,690
Home equity	3,252		698	334	6,145	10,429	332,291	342,720
Multi-family residential	—		—	—	1,810	1,810	101,552	103,362
Commercial real estate	3,506		409	4,235	21,310	29,460	974,073	1,003,533
Consumer and installment	93		39	—	6	138	18,323	18,461
Loans held for sale	—		—	—	—	—	28,313	28,313
Total	$	12,930	5,955	4,740	71,133	94,758	2,692,172	2,786,930
December 31, 2012:
Commercial, financial and agricultural	$	1,180	322	—	19,050	20,552	589,749	610,301
Real estate construction and development	93		—	—	32,152	32,245	142,734	174,979
Real estate mortgage:
Bank portfolio	1,871		1,121	874	6,910	10,776	111,562	122,338
Mortgage Division portfolio	6,264		4,375	—	19,780	30,419	479,552	509,971
Home equity	2,494		1,221	216	8,671	12,602	341,856	354,458
Multi-family residential	—		629	—	6,761	7,390	96,294	103,684
Commercial real estate	66		693	—	16,520	17,279	952,401	969,680
Consumer and installment	174		43	—	28	245	18,958	19,203
Loans held for sale	—		—	—	—	—	66,133	66,133
Total	$	12,142	8,404	1,090	109,872	131,508	2,799,239	2,930,747

Financing Receivable Credit Quality Indicators [Table Text Block]

The following tables present the credit exposure of the loan portfolio by internally assigned credit grade and payment activity as of September 30, 2013 and December 31, 2012:

Commercial Loan Portfolio Credit Exposure by Internally Assigned Credit Grade	Commercial and Industrial		Real Estate Construction and Development	Multi-family	Commercial Real Estate	Total
			(dollars expressed in thousands)
September 30, 2013:
Pass	$	553,028	41,608	72,927	932,267	1,599,830
Special mention	11,170		3,140	—	28,040	42,350
Substandard	7,444		73,285	555	17,366	98,650
Performing troubled debt restructuring	—		—	28,070	4,550	32,620
Nonaccrual	11,897		7,300	1,810	21,310	42,317
Total	$	583,539	125,333	103,362	1,003,533	1,815,767
December 31, 2012:
Pass	$	572,248	45,356	67,690	858,101	1,543,395
Special mention	10,580		6,076	220	70,450	87,326
Substandard	8,423		81,364	773	13,868	104,428
Performing troubled debt restructuring	—		10,031	28,240	10,741	49,012
Nonaccrual	19,050		32,152	6,761	16,520	74,483
Total	$	610,301	174,979	103,684	969,680	1,858,644

One-to-Four-Family Residential Mortgage Bank and Home Equity Loan Portfolio Credit Exposure by Internally Assigned Credit Grade	Bank Portfolio		Home Equity	Total
	(dollars expressed in thousands)
September 30, 2013:
Pass	$	83,724	334,491	418,215
Special mention	6,465		334	6,799
Substandard	193		1,750	1,943
Performing troubled debt restructuring	704		—	704
Nonaccrual	5,893		6,145	12,038
Total	$	96,979	342,720	439,699
December 31, 2012:
Pass	$	107,625	342,321	449,946
Special mention	4,405		216	4,621
Substandard	1,787		3,250	5,037
Performing troubled debt restructuring	1,611		—	1,611
Nonaccrual	6,910		8,671	15,581
Total	$	122,338	354,458	476,796

One-to-Four-Family Residential Mortgage Division and Consumer and Installment Loan Portfolio Credit Exposure by Payment Activity	Mortgage Division Portfolio		Consumer and Installment	Total
	(dollars expressed in thousands)
September 30, 2013:
Pass	$	386,719	18,455	405,174
Substandard	4,291		—	4,291
Performing troubled debt restructuring	76,908		—	76,908
Nonaccrual	16,772		6	16,778
Total	$	484,690	18,461	503,151
December 31, 2012:
Pass	$	405,270	19,175	424,445
Substandard	6,627		—	6,627
Performing troubled debt restructuring	78,294		—	78,294
Nonaccrual	19,780		28	19,808
Total	$	509,971	19,203	529,174

Impaired Financing Receivables [Table Text Block]

The following tables present the recorded investment, unpaid principal balance, related allowance for loan losses, average recorded investment and interest income recognized while on impaired status for impaired loans without a related allowance for loan losses and for impaired loans with a related allowance for loan losses by loan classification at September 30, 2013 and December 31, 2012:

	Recorded Investment		Unpaid Principal Balance	Related Allowance for Loan Losses	Average Recorded Investment	Interest Income Recognized
	(dollars expressed in thousands)
September 30, 2013:
With No Related Allowance Recorded:
Commercial, financial and agricultural	$	3,222	4,456	—	4,164	1
Real estate construction and development	5,619		23,133	—	24,620	418
Real estate mortgage:
Bank portfolio	—		—	—	—	34
Mortgage Division portfolio	9,098		18,483	—	9,365	—
Home equity	601		632	—	672	—
Multi-family residential	28,513		28,778	—	30,896	921
Commercial real estate	20,521		25,170	—	18,925	243
Consumer and installment	—		—	—	—	—
	67,574		100,652	—	88,642	1,617
With A Related Allowance Recorded:
Commercial, financial and agricultural	8,675		23,419	461	11,213	—
Real estate construction and development	1,681		4,246	369	7,365	—
Real estate mortgage:
Bank portfolio	6,597		8,295	301	7,489	—
Mortgage Division portfolio	84,582		94,399	10,562	87,061	1,481
Home equity	5,544		6,396	1,229	6,200	—
Multi-family residential	1,367		1,371	1,159	1,481	—
Commercial real estate	5,339		8,553	1,282	4,924	20
Consumer and installment	6		6	—	23	—
	113,791		146,685	15,363	125,756	1,501
Total:
Commercial, financial and agricultural	11,897		27,875	461	15,377	1
Real estate construction and development	7,300		27,379	369	31,985	418
Real estate mortgage:
Bank portfolio	6,597		8,295	301	7,489	34
Mortgage Division portfolio	93,680		112,882	10,562	96,426	1,481
Home equity	6,145		7,028	1,229	6,872	—
Multi-family residential	29,880		30,149	1,159	32,377	921
Commercial real estate	25,860		33,723	1,282	23,849	263
Consumer and installment	6		6	—	23	—
	$	181,365	247,337	15,363	214,398	3,118

	Recorded Investment		Unpaid Principal Balance	Related Allowance for Loan Losses	Average Recorded Investment	Interest Income Recognized
	(dollars expressed in thousands)
December 31, 2012:
With No Related Allowance Recorded:
Commercial, financial and agricultural	$	6,451	24,287	—	12,369	215
Real estate construction and development	39,706		74,044	—	59,094	561
Real estate mortgage:
Bank portfolio	1,611		1,690	—	2,166	32
Mortgage Division portfolio	10,255		22,102	—	10,308	—
Home equity	1,382		1,507	—	1,232	—
Multi-family residential	33,709		37,206	—	13,682	280
Commercial real estate	18,808		24,279	—	35,959	1,160
Consumer and installment	—		—	—	—	—
	111,922		185,115	—	134,810	2,248
With A Related Allowance Recorded:
Commercial, financial and agricultural	12,599		19,255	676	24,157	—
Real estate construction and development	2,477		10,221	1,452	3,687	114
Real estate mortgage:
Bank portfolio	6,910		8,655	284	9,288	—
Mortgage Division portfolio	87,819		96,931	11,574	88,277	2,050
Home equity	7,289		8,188	1,784	6,500	—
Multi-family residential	1,292		1,403	1,138	524	—
Commercial real estate	8,453		12,909	1,043	16,161	11
Consumer and installment	28		28	1	51	—
	126,867		157,590	17,952	148,645	2,175
Total:
Commercial, financial and agricultural	19,050		43,542	676	36,526	215
Real estate construction and development	42,183		84,265	1,452	62,781	675
Real estate mortgage:
Bank portfolio	8,521		10,345	284	11,454	32
Mortgage Division portfolio	98,074		119,033	11,574	98,585	2,050
Home equity	8,671		9,695	1,784	7,732	—
Multi-family residential	35,001		38,609	1,138	14,206	280
Commercial real estate	27,261		37,188	1,043	52,120	1,171
Consumer and installment	28		28	1	51	—
	$	238,789	342,705	17,952	283,455	4,423

Troubled Debt Restructurings On Performing Financing Receivables [Table Text Block]

The following table presents the categories of performing TDRs as of September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Performing Troubled Debt Restructurings:
Real estate construction and development	$	—	10,031
Real estate mortgage:
One-to-four-family residential	77,612		79,905
Multi-family residential	28,070		28,240
Commercial real estate	4,550		10,741
Total performing troubled debt restructurings	$	110,232	128,917

Troubled Debt Restructurings On Non Performing Financing Receivables [Table Text Block]

The following table presents the categories of loans considered nonperforming TDRs as of September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Nonperforming Troubled Debt Restructurings:
Commercial, financial and agricultural	$	726	1,004
Real estate construction and development	3,906		26,557
Real estate mortgage:
One-to-four-family residential	6,450		7,105
Multi-family residential	—		2,482
Commercial real estate	662		2,862
Total nonperforming troubled debt restructurings	$	11,744	40,010

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The following tables present loans classified as TDRs that were modified during the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30, 2013					Three Months Ended September 30, 2012
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars expressed in thousands)
Loan Modifications Classified as Troubled Debt Restructurings:
Commercial, financial and agricultural	—	$	—	$	—	1	$	640	$	640
Real estate construction and development	—	—		—		2	5,460		5,280
Real estate mortgage:
One-to-four-family residential	15	3,405		3,095		13	2,069		2,065
Commercial real estate	—	—		—		2	4,947		4,947

	Nine Months Ended September 30, 2013					Nine Months Ended September 30, 2012
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars expressed in thousands)
Loan Modifications Classified as Troubled Debt Restructurings:
Commercial, financial and agricultural	2	$	246	$	201	1	$	640	$	640
Real estate construction and development	—	—		—		4	6,263		5,670
Real estate mortgage:
One-to-four-family residential	35	8,275		7,637		42	7,496		7,443
Commercial real estate	—	—		—		3	9,965		9,965

Troubled Debt Restructurings That Subsequently Defaulted On Financing Receivables [Table Text Block]

The following tables present TDRs that defaulted within 12 months of modification during the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended			Three Months Ended
	September 30, 2013			September 30, 2012
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(dollars expressed in thousands)
Troubled Debt Restructurings That Subsequently Defaulted:
Commercial, financial and agricultural	1	$	156	—	$	—
Real estate construction and development	—	—		—	—
Real estate mortgage:
One-to-four-family residential	14	3,016		11	2,155

	Nine Months Ended			Nine Months Ended
	September 30, 2013			September 30, 2012
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(dollars expressed in thousands)
Troubled Debt Restructurings That Subsequently Defaulted:
Commercial, financial and agricultural	1	$	156	—	$	—
Real estate construction and development	—	—		3	1,364
Real estate mortgage:
One-to-four-family residential	43	7,937		39	8,049

Allowance for Credit Losses on Financing Receivables [Table Text Block]

Changes in the allowance for loan losses for the three and nine months ended September 30, 2013 and 2012 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Balance, beginning of period	$	85,633		120,227		91,602		137,710
Loans charged-off	(7,040		)	(13,927	)	(20,794	)	(48,327	)
Recoveries of loans previously charged-off	5,684			7,902		13,469		22,819
Net loans charged-off	(1,356		)	(6,025	)	(7,325	)	(25,508	)
Provision for loan losses	—			—		—		2,000
Balance, end of period	$	84,277		114,202		84,277		114,202

The following table represents a summary of changes in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2013:

	Commercial and Industrial			Real Estate Construction and Development		One-to- Four-Family Residential		Multi- Family Residential		Commercial Real Estate		Consumer and Installment		Total
	(dollars expressed in thousands)
Three Months Ended September 30, 2013:
Allowance for loan losses:
Beginning balance	$	13,966		11,412		35,266		4,122		20,573		294		85,633
Charge-offs	(2,241		)	—		(2,256	)	—		(2,488	)	(55	)	(7,040	)
Recoveries	1,773			2,557		879		—		443		32		5,684
Provision (benefit) for loan losses	526			(4,967	)	824		39		3,551		27		—
Ending balance	$	14,024		9,002		34,713		4,161		22,079		298		84,277
Nine Months Ended September 30, 2013:
Allowance for loan losses:
Beginning balance	$	13,572		14,434		38,897		4,252		20,048		399		91,602
Charge-offs	(3,927		)	(448	)	(10,983	)	(162	)	(5,121	)	(153	)	(20,794	)
Recoveries	3,863			4,273		3,398		141		1,683		111		13,469
Provision (benefit) for loan losses	516			(9,257	)	3,401		(70	)	5,469		(59	)	—
Ending balance	$	14,024		9,002		34,713		4,161		22,079		298		84,277

The following table represents a summary of changes in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2012:

	Commercial and Industrial			Real Estate Construction and Development		One-to- Four-Family Residential		Multi- Family Residential		Commercial Real Estate		Consumer and Installment		Total
	(dollars expressed in thousands)
Three Months Ended September 30, 2012:
Allowance for loan losses:
Beginning balance	$	22,015		21,829		43,702		4,816		27,471		394		120,227
Charge-offs	(2,475		)	(2,495	)	(6,178	)	(143	)	(2,636	)	—		(13,927	)
Recoveries	4,907			534		1,579		1		827		54		7,902
Provision (benefit) for loan losses	(3,179		)	(37	)	3,311		388		(440	)	(43	)	—
Ending balance	$	21,268		19,831		42,414		5,062		25,222		405		114,202
Nine Months Ended September 30, 2012:
Allowance for loan losses:
Beginning balance	$	27,243		24,868		50,864		4,851		29,448		436		137,710
Charge-offs	(12,708		)	(8,918	)	(15,094	)	(1,312	)	(10,026	)	(269	)	(48,327	)
Recoveries	10,651			4,253		4,054		44		3,673		144		22,819
Provision (benefit) for loan losses	(3,918		)	(372	)	2,590		1,479		2,127		94		2,000
Ending balance	$	21,268		19,831		42,414		5,062		25,222		405		114,202

Impairment Method by Loan Category [Table Text Block]

The following table represents a summary of the impairment method used by loan category at September 30, 2013 and December 31, 2012:

	Commercial and Industrial		Real Estate Construction and Development	One-to- Four-Family Residential	Multi- Family Residential	Commercial Real Estate	Consumer and Installment	Total
	(dollars expressed in thousands)
September 30, 2013:
Allowance for loan losses:
Impaired loans individually evaluated for impairment	$	—	86	2,945	—	279	—	3,310
Impaired loans collectively evaluated for impairment	461		283	9,147	1,159	1,003	—	12,053
All other loans collectively evaluated for impairment	13,563		8,633	22,621	3,002	20,797	298	68,914
Total	$	14,024	9,002	34,713	4,161	22,079	298	84,277
Financing receivables:
Impaired loans individually evaluated for impairment	$	3,587	5,911	12,310	28,756	20,805	—	71,369
Impaired loans collectively evaluated for impairment	8,310		1,389	94,112	1,124	5,055	6	109,996
All other loans collectively evaluated for impairment	571,642		118,033	817,967	73,482	977,673	18,455	2,577,252
Total	$	583,539	125,333	924,389	103,362	1,003,533	18,461	2,758,617
December 31, 2012:
Allowance for loan losses:
Impaired loans individually evaluated for impairment	$	75	121	3,187	33	182	—	3,598
Impaired loans collectively evaluated for impairment	601		1,331	10,455	1,105	861	1	14,354
All other loans collectively evaluated for impairment	12,896		12,982	25,255	3,114	19,005	398	73,650
Total	$	13,572	14,434	38,897	4,252	20,048	399	91,602
Financing receivables:
Impaired loans individually evaluated for impairment	$	7,884	39,155	16,843	34,636	20,965	—	119,483
Impaired loans collectively evaluated for impairment	11,166		3,028	98,423	365	6,296	28	119,306
All other loans collectively evaluated for impairment	591,251		132,796	871,501	68,683	942,419	19,175	2,625,825
Total	$	610,301	174,979	986,767	103,684	969,680	19,203	2,864,614

XML

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Accumulated Other Comprehensive Income. The following table summarizes changes in accumulated other comprehensive income, net of tax, by component, for the three and nine months ended September 30, 2013:

	Investment Securities			Defined Benefit Pension Plan		Deferred Tax Asset Valuation Allowance		Total
				(dollars expressed in thousands)
Three Months Ended September 30, 2013:
Balance, beginning of period	$	15,337		(3,484	)	(2,250	)	9,603
Other comprehensive income (loss) before reclassifications	(1,363		)	30		(1,117	)	(2,450	)
Amounts reclassified from accumulated other comprehensive income (loss)	(60		)	—		—		(60	)
Net current period other comprehensive income (loss)	(1,423		)	30		(1,117	)	(2,510	)
Balance, end of period	$	13,914		(3,454	)	(3,367	)	7,093
Nine Months Ended September 30, 2013:
Balance, beginning of period	$	35,186		(3,544	)	13,617		45,259
Other comprehensive income (loss) before reclassifications	(21,026		)	90		(16,984	)	(37,920	)
Amounts reclassified from accumulated other comprehensive income (loss)	(246		)	—		—		(246	)
Net current period other comprehensive income (loss)	(21,272		)	90		(16,984	)	(38,166	)
Balance, end of period	$	13,914		(3,454	)	(3,367	)	7,093

The following table summarizes changes in accumulated other comprehensive income, net of tax, by component, for the three and nine months ended September 30, 2012:

	Investment Securities			Defined Benefit Pension Plan		Deferred Tax Asset Valuation Allowance		Total
				(dollars expressed in thousands)
Three Months Ended September 30, 2012:
Balance, beginning of period	$	30,971		(2,591	)	5,504		33,884
Other comprehensive income (loss) before reclassifications	2,266			21		7,101		9,388
Amounts reclassified from accumulated other comprehensive income (loss)	(422		)	—		—		(422	)
Net current period other comprehensive income (loss)	1,844			21		7,101		8,966
Balance, end of period	$	32,815		(2,570	)	12,605		42,850
Nine Months Ended September 30, 2012:
Balance, beginning of period	$	19,437		(2,633	)	(738	)	16,066
Other comprehensive income (loss) before reclassifications	14,136			63		13,343		27,542
Amounts reclassified from accumulated other comprehensive income (loss)	(758		)	—		—		(758	)
Net current period other comprehensive income (loss)	13,378			63		13,343		26,784
Balance, end of period	$	32,815		(2,570	)	12,605		42,850

XML

FAIR VALUE DISCLOSURES (Details) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	$ 1,651,471	$ 2,126,271
Liabilities, Fair Value Disclosure, Recurring	6,268	6,530
U.S. Government sponsored agencies [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	276,034	310,429
Residential mortgage-backed [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	1,098,229	1,534,067
Commercial mortgage-backed [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	868	915
State and political subdivisions [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	32,261	4,929
Corporate notes [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	195,439	192,365
Equity investments [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	1,456	1,022
Mortgage loans held for sale [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	28,313	66,133
Customer interest rate swap agreements [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	7	87
Liabilities, Fair Value Disclosure, Recurring	7	87
Interest rate lock commitments [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	743	1,837
Forward commitments to sell mortgage-backed securities [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	(637)	(305)
Servicing rights [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	18,758	14,792
Nonqualified deferred compensation plan [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, Fair Value Disclosure, Recurring	6,261	6,443
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	1,456	1,022
Liabilities, Fair Value Disclosure, Recurring	6,261	6,443
Fair Value, Inputs, Level 1 [Member] | U.S. Government sponsored agencies [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 1 [Member] | Residential mortgage-backed [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 1 [Member] | Commercial mortgage-backed [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 1 [Member] | State and political subdivisions [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 1 [Member] | Corporate notes [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 1 [Member] | Equity investments [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	1,456	1,022
Fair Value, Inputs, Level 1 [Member] | Mortgage loans held for sale [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 1 [Member] | Customer interest rate swap agreements [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Liabilities, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 1 [Member] | Interest rate lock commitments [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 1 [Member] | Forward commitments to sell mortgage-backed securities [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 1 [Member] | Servicing rights [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 1 [Member] | Nonqualified deferred compensation plan [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, Fair Value Disclosure, Recurring	6,261	6,443
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	1,631,257	2,110,457
Liabilities, Fair Value Disclosure, Recurring	7	87
Fair Value, Inputs, Level 2 [Member] | U.S. Government sponsored agencies [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	276,034	310,429
Fair Value, Inputs, Level 2 [Member] | Residential mortgage-backed [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	1,098,229	1,534,067
Fair Value, Inputs, Level 2 [Member] | Commercial mortgage-backed [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	868	915
Fair Value, Inputs, Level 2 [Member] | State and political subdivisions [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	32,261	4,929
Fair Value, Inputs, Level 2 [Member] | Corporate notes [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	195,439	192,365
Fair Value, Inputs, Level 2 [Member] | Equity investments [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 2 [Member] | Mortgage loans held for sale [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	28,313	66,133
Fair Value, Inputs, Level 2 [Member] | Customer interest rate swap agreements [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	7	87
Liabilities, Fair Value Disclosure, Recurring	7	87
Fair Value, Inputs, Level 2 [Member] | Interest rate lock commitments [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	743	1,837
Fair Value, Inputs, Level 2 [Member] | Forward commitments to sell mortgage-backed securities [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	(637)	(305)
Fair Value, Inputs, Level 2 [Member] | Servicing rights [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 2 [Member] | Nonqualified deferred compensation plan [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	18,758	14,792
Liabilities, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 3 [Member] | U.S. Government sponsored agencies [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 3 [Member] | Residential mortgage-backed [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 3 [Member] | Commercial mortgage-backed [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 3 [Member] | State and political subdivisions [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 3 [Member] | Corporate notes [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 3 [Member] | Equity investments [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 3 [Member] | Mortgage loans held for sale [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 3 [Member] | Customer interest rate swap agreements [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Liabilities, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 3 [Member] | Interest rate lock commitments [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 3 [Member] | Forward commitments to sell mortgage-backed securities [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Inputs, Level 3 [Member] | Servicing rights [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	18,758	14,792
Fair Value, Inputs, Level 3 [Member] | Nonqualified deferred compensation plan [Member]
Fair Value, Assests and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, Fair Value Disclosure, Recurring	$ 0	$ 0

XML

BUSINESS SEGMENT RESULTS (Tables)

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The business segment results are consistent with the Company’s internal reporting system and, in all material respects, with GAAP and practices predominant in the banking industry. The business segment results are summarized as follows:

	First Bank			Corporate, Other and Intercompany Reclassifications				ConsolidatedTotals
	September 30, 2013		December 31, 2012	September 30, 2013		December 31, 2012		September 30, 2013	December 31, 2012
	(dollars expressed in thousands)
Balance sheet information:
Investment securities	$	2,368,591	2,675,280	—		—		2,368,591	2,675,280
Total loans	2,786,930		2,930,747	—		—		2,786,930	2,930,747
FRB and FHLB stock	27,137		27,329	—		—		27,137	27,329
Goodwill	107,267		125,267	—		—		107,267	125,267
Assets of discontinued operations	38,511		6,706	—		—		38,511	6,706
Total assets	6,222,567		6,495,226	14,761		13,900		6,237,328	6,509,126
Deposits	4,837,493		5,495,624	(2,071	)	(2,777	)	4,835,422	5,492,847
Other borrowings	37,077		26,025	—		—		37,077	26,025
Subordinated debentures	—		—	354,191		354,133		354,191	354,133
Liabilities of discontinued operations	549,155		155,711	—		—		549,155	155,711
Stockholders’ equity	746,716		751,252	(477,618	)	(451,293	)	269,098	299,959

	First Bank					Corporate, Other and Intercompany Reclassifications				Consolidated Totals
	Three Months Ended					Three Months Ended				Three Months Ended
	September 30,					September 30,				September 30,
	2013			2012		2013		2012		2013		2012
	(dollars expressed in thousands)
Income statement information:
Interest income	$	42,366		50,018		—		100		42,366		50,118
Interest expense	2,149			3,448		3,803		3,745		5,952		7,193
Net interest income (loss)	40,217			46,570		(3,803	)	(3,645	)	36,414		42,925
Provision for loan losses	—			—		—		—		—		—
Net interest income (loss) after provision for loan losses	40,217			46,570		(3,803	)	(3,645	)	36,414		42,925
Noninterest income	15,414			16,541		115		106		15,529		16,647
Noninterest expense	44,994			48,448		311		391		45,305		48,839
Income (loss) from continuing operations before (benefit) provision for income taxes	10,637			14,663		(3,999	)	(3,930	)	6,638		10,733
(Benefit) provision for income taxes	(64		)	666		(1	)	(804	)	(65	)	(138	)
Net income (loss) from continuing operations, net of tax	10,701			13,997		(3,998	)	(3,126	)	6,703		10,871
Loss from discontinued operations, net of tax	(881		)	(2,182	)	—		—		(881	)	(2,182	)
Net income (loss)	9,820			11,815		(3,998	)	(3,126	)	5,822		8,689
Net (loss) income attributable to noncontrolling interest in subsidiary	(38		)	216		—		—		(38	)	216
Net income (loss) attributable to First Banks, Inc.	$	9,858		11,599		(3,998	)	(3,126	)	5,860		8,473

	First Bank					Corporate, Other and Intercompany Reclassifications				Consolidated Totals
	Nine Months Ended					Nine Months Ended				Nine Months Ended
	September 30,					September 30,				September 30,
	2013			2012		2013		2012		2013		2012
	(dollars expressed in thousands)
Income statement information:
Interest income	$	130,084		153,004		—		121		130,084		153,125
Interest expense	6,866			11,853		11,210		11,109		18,076		22,962
Net interest income (loss)	123,218			141,151		(11,210	)	(10,988	)	112,008		130,163
Provision for loan losses	—			2,000		—		—		—		2,000
Net interest income (loss) after provision for loan losses	123,218			139,151		(11,210	)	(10,988	)	112,008		128,163
Noninterest income	49,529			49,239		338		287		49,867		49,526
Noninterest expense	132,882			147,098		613		1,100		133,495		148,198
Income (loss) from continuing operations before (benefit) provision for income taxes	39,865			41,292		(11,485	)	(11,801	)	28,380		29,491
(Benefit) provision for income taxes	(44		)	447		(1	)	(369	)	(45	)	78
Net income (loss) from continuing operations, net of tax	39,909			40,845		(11,484	)	(11,432	)	28,425		29,413
Loss from discontinued operations, net of tax	(6,279		)	(6,763	)	—		—		(6,279	)	(6,763	)
Net income (loss)	33,630			34,082		(11,484	)	(11,432	)	22,146		22,650
Net income (loss) attributable to noncontrolling interest in subsidiary	113			(229	)	—		—		113		(229	)
Net income (loss) attributable to First Banks, Inc.	$	33,517		34,311		(11,484	)	(11,432	)	22,033		22,879

XML

REGULATORY CAPITAL AND OTHER REGULATORY MATTERS (Details Textual) (First Bank [Member])	Dec. 31, 2012
Tier One Capital to Total Assets	9.20%
Minimum [Member]
Tier One Capital to Total Assets	7.00%

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 9) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Allowance for loan losses:
Beginning balance	$ 85,633	$ 120,227	$ 91,602	$ 137,710
Charge-offs	(7,040)	(13,927)	(20,794)	(48,327)
Recoveries	5,684	7,902	13,469	22,819
Provision (benefit) for loan losses	0	0	0	2,000
Balance, end of period	84,277	114,202	84,277	114,202
Commercial, financial and agricultural [Member]
Allowance for loan losses:
Beginning balance	13,966	22,015	13,572	27,243
Charge-offs	(2,241)	(2,475)	(3,927)	(12,708)
Recoveries	1,773	4,907	3,863	10,651
Provision (benefit) for loan losses	526	(3,179)	516	(3,918)
Balance, end of period	14,024	21,268	14,024	21,268
Real estate construction and development [Member]
Allowance for loan losses:
Beginning balance	11,412	21,829	14,434	24,868
Charge-offs	0	(2,495)	(448)	(8,918)
Recoveries	2,557	534	4,273	4,253
Provision (benefit) for loan losses	(4,967)	(37)	(9,257)	(372)
Balance, end of period	9,002	19,831	9,002	19,831
One-to-four-family residential [Member]
Allowance for loan losses:
Beginning balance	35,266	43,702	38,897	50,864
Charge-offs	(2,256)	(6,178)	(10,983)	(15,094)
Recoveries	879	1,579	3,398	4,054
Provision (benefit) for loan losses	824	3,311	3,401	2,590
Balance, end of period	34,713	42,414	34,713	42,414
Multi-family residential [Member]
Allowance for loan losses:
Beginning balance	4,122	4,816	4,252	4,851
Charge-offs	0	(143)	(162)	(1,312)
Recoveries	0	1	141	44
Provision (benefit) for loan losses	39	388	(70)	1,479
Balance, end of period	4,161	5,062	4,161	5,062
Commercial real estate [Member]
Allowance for loan losses:
Beginning balance	20,573	27,471	20,048	29,448
Charge-offs	(2,488)	(2,636)	(5,121)	(10,026)
Recoveries	443	827	1,683	3,673
Provision (benefit) for loan losses	3,551	(440)	5,469	2,127
Balance, end of period	22,079	25,222	22,079	25,222
Consumer and Installment [Member]
Allowance for loan losses:
Beginning balance	294	394	399	436
Charge-offs	(55)	0	(153)	(269)
Recoveries	32	54	111	144
Provision (benefit) for loan losses	27	(43)	(59)	94
Balance, end of period	$ 298	$ 405	$ 298	$ 405

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) (Performing Troubled Debt Restructurings [Member], USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Modifications [Line Items]
Total performing troubled debt restructuring	$ 110,232	$ 128,917
Real estate construction and development [Member]
Financing Receivable, Modifications [Line Items]
Total performing troubled debt restructuring	0	10,031
One-to-four-family residential [Member]
Financing Receivable, Modifications [Line Items]
Total performing troubled debt restructuring	77,612	79,905
Multi-family residential [Member]
Financing Receivable, Modifications [Line Items]
Total performing troubled debt restructuring	28,070	28,240
Commercial real estate [Member]
Financing Receivable, Modifications [Line Items]
Total performing troubled debt restructuring	$ 4,550	$ 10,741

XML

INVESTMENTS IN DEBT AND EQUITY SECURITIES (Details Textual) (USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2013	Mar. 31, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Proceeds from sales of investment securities available for sale	$ 25,092,000		$ 107,619,000	$ 143,675,000	$ 315,238,000
Securities pledged as collateral	314,800,000			314,800,000		257,600,000
Reclassification of investment securities from available for sale to held to maturity		242,540,000		242,540,000	729,142,000
Gross unrealized gain on reclassification of available-for-sale securities to held-to-maturity securities		5,000,000
State and political subdivisions [Member]
Other-than--temporary impairment losses, held-to-maturity securities		$ 407,000
U.S. Government sponsored agencies [Member]
Number of available-for-sale securities in unrealized loss positions for twelve months or more	1			1
Residential mortgage-backed [Member]
Number of available-for-sale securities in unrealized loss positions for twelve months or more	11			11		9
Corporate notes [Member]
Number of available-for-sale securities in unrealized loss positions for twelve months or more	1			1		6

XML

CONSOLIDATED BALANCE SHEETS (UNAUDITED) [Parenthetical] (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Held-to-maturity securities, fair value (in dollars)	$ 748,478	$ 637,024
Common stock, par value (in dollars per share)	$ 250	$ 250
Common stock, shares authorized	25,000	25,000
Common stock, shares issued	23,661	23,661
Common stock, shares outstanding	23,661	23,661
Class A Convertible Adjustable Rate Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 20	$ 20
Preferred stock, shares authorized	750,000	750,000
Preferred stock, shares issued	641,082	641,082
Preferred stock, shares outstanding	641,082	641,082
Class B Adjustable Rate Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1.50	$ 1.50
Preferred stock, shares authorized	200,000	200,000
Preferred stock, shares issued	160,505	160,505
Preferred stock, shares outstanding	160,505	160,505
Class C Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	295,400	295,400
Preferred stock, shares issued	295,400	295,400
Preferred stock, shares outstanding	295,400	295,400
Class D Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	14,770	14,770
Preferred stock, shares issued	14,770	14,770
Preferred stock, shares outstanding	14,770	14,770

XML

DERIVATIVE INSTRUMENTS

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

DERIVATIVEINSTRUMENTS

The Company utilizes derivative instruments to assist in the management of interest rate sensitivity by modifying the repricing, maturity and option characteristics of certain assets and liabilities. The following table summarizes derivative instruments held by the Company, their notional amount, estimated fair values and their location in the consolidated balance sheets at September 30, 2013 and December 31, 2012:

				Derivatives in Other Assets				Derivatives in Other Liabilities
	Notional Amount			Fair Value Gain (Loss)				Fair Value Loss
	September 30, 2013		December 31, 2012	September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Derivative Instruments Not Designated as Hedging Instruments:
Customer interest rate swap agreements	$	8,731	12,149	7		87		(7	)	(87	)
Interest rate lock commitments	27,118		59,932	743		1,837		—		—
Forward commitments to sell mortgage-backed securities	39,300		107,700	(637	)	(305	)	—		—
Total	$	75,149	179,781	113		1,619		(7	)	(87	)

Customer Interest Rate Swap Agreements. First Bank offers interest rate swap agreements to certain customers to assist in hedging their risks of adverse changes in interest rates. First Bank serves as an intermediary between its customers and the financial markets. Each interest rate swap agreement between First Bank and its customers is offset by an interest rate swap agreement between First Bank and various counterparties. These interest rate swap agreements do not qualify for hedge accounting treatment. Changes in the fair value are recognized in noninterest income on a monthly basis. Each customer contract is paired with an offsetting contract, and as such, there is no significant impact to net income. The notional amount of these interest rate swap agreement contracts at September 30, 2013 and December 31, 2012 was $8.7 million and $12.1 million, respectively.

Interest Rate Lock Commitments / Forward Commitments to Sell Mortgage-Backed Securities. Derivative instruments issued by the Company consist of interest rate lock commitments to originate fixed-rate loans to be sold. Commitments to originate fixed-rate loans consist primarily of residential real estate loans. These net loan commitments and loans held for sale are hedged with forward contracts to sell mortgage-backed securities, which expire in December 2013. The fair value of the interest rate lock commitments, which is included in other assets in the consolidated balance sheets, was an unrealized gain of $743,000 and $1.8 million at September 30, 2013 and December 31, 2012, respectively. The fair value of the forward contracts to sell mortgage-backed securities, which is included in other assets in the consolidated balance sheets, was an unrealized loss of $637,000 and $305,000 at September 30, 2013 and December 31, 2012, respectively. Changes in the fair value of interest rate lock commitments and forward commitments to sell mortgage-backed securities are recognized in noninterest income on a monthly basis.

The following table summarizes amounts included in the consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012 related to non-hedging derivative instruments:

Derivative Instruments Not Designated as Hedging Instruments:	Location of Gain (Loss) Recognized in Operations on Derivatives	Amount of Gain (Loss) Recognized in Operations on Derivatives
		Three Months Ended					Nine Months Ended
		September 30,					September 30,
		2013			2012		2013		2012
		(dollars expressed in thousands)
Interest rate swap agreements	Other noninterest income	$	—		(8	)	—		(49	)
Customer interest rate swap agreements	Other noninterest income	—			—		—		3
Interest rate lock commitments	Gain on loans sold and held for sale	675			1,192		(1,094	)	2,901
Forward commitments to sell mortgage-backed securities	Gain on loans sold and held for sale	(3,115		)	(1,165	)	(332	)	(1,593	)

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net income	$ 5,822	$ 8,689	$ 22,146	$ 22,650
Other comprehensive (loss) income:
Unrealized (losses) gains on available-for-sale investment securities, net of tax	(896)	2,740	(19,699)	14,610
Reclassification adjustment for available-for-sale investment securities gains included in net income, net of tax	(60)	(422)	(246)	(758)
Amortization of net unrealized gain associated with reclassification of available-for-sale investment securities to held-to-maturity investment securities, net of tax	(467)	(474)	(1,327)	(474)
Amortization of net loss related to pension liability, net of tax	30	21	90	63
Reclassification adjustment for deferred tax asset valuation allowance on investment securities	(1,141)	7,086	(17,056)	13,297
Reclassification adjustment for deferred tax asset valuation allowance on pension liability	24	15	72	46
Net current period other comprehensive income (loss)	(2,510)	8,966	(38,166)	26,784
Comprehensive income (loss)	3,312	17,655	(16,020)	49,434
Comprehensive (loss) income attributable to noncontrolling interest in subsidiary	(38)	216	113	(229)
Comprehensive income (loss) attributable to First Banks, Inc.	$ 3,350	$ 17,439	$ (16,133)	$ 49,663

XML

GOODWILL (Details Textual) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013 Association Bank Services [Member]	Apr. 19, 2013 Northern Florida Region [Member]	Dec. 31, 2012 Northern Florida Region [Member]
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 107,267	$ 125,267
Goodwill [Line Items]
Goodwill			$ 18,000	$ 700	$ 700

XML

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
ASSETS
Cash and due from banks	$ 135,032	$ 114,841
Short-term investments	579,123	404,005
Total cash and cash equivalents	714,155	518,846
Investment securities:
Available for sale	1,604,287	2,043,727
Held to maturity (fair value of $748,478 and $637,024, respectively)	764,304	631,553
Total investment securities	2,368,591	2,675,280
Loans:
Commercial, financial and agricultural	583,539	610,301
Real estate construction and development	125,333	174,979
Real estate mortgage	2,031,284	2,060,131
Consumer and installment	18,773	19,262
Loans held for sale	28,313	66,133
Net deferred loan fees	(312)	(59)
Total loans	2,786,930	2,930,747
Allowance for loan losses	(84,277)	(91,602)
Net loans	2,702,653	2,839,145
Federal Reserve Bank and Federal Home Loan Bank stock	27,137	27,329
Bank premises and equipment, net	124,921	127,520
Goodwill	107,267	125,267
Deferred income taxes	15,733	29,042
Other real estate and repossessed assets	74,831	91,995
Other assets	63,529	67,996
Assets of discontinued operations	38,511	6,706
Total assets	6,237,328	6,509,126
LIABILITIES
Noninterest-bearing demand	1,224,595	1,327,183
Interest-bearing demand	677,900	1,000,666
Savings and money market	1,852,268	1,880,271
Time deposits of $100 or more	398,259	460,791
Other time deposits	682,400	823,936
Total deposits	4,835,422	5,492,847
Other borrowings	37,077	26,025
Subordinated debentures	354,191	354,133
Deferred income taxes	23,166	36,182
Accrued expenses and other liabilities	169,219	144,269
Liabilities of discontinued operations	549,155	155,711
Total liabilities	5,968,230	6,209,167
STOCKHOLDERS’ EQUITY
Common stock, $250.00 par value, 25,000 shares authorized, 23,661 shares issued and outstanding	5,915	5,915
Additional paid-in capital	12,480	12,480
Retained deficit	(175,046)	(179,513)
Accumulated other comprehensive income	7,093	45,259
Total First Banks, Inc. stockholders’ equity	175,330	206,304
Noncontrolling interest in subsidiary	93,768	93,655
Total stockholders’ equity	269,098	299,959
Total liabilities and stockholders’ equity	6,237,328	6,509,126
Class A Convertible Adjustable Rate Preferred Stock [Member]
STOCKHOLDERS’ EQUITY
Preferred stock	12,822	12,822
Class B Adjustable Rate Preferred Stock [Member]
STOCKHOLDERS’ EQUITY
Preferred stock	241	241
Class C Fixed Rate Cumulative Perpetual Preferred Stock [Member]
STOCKHOLDERS’ EQUITY
Preferred stock	294,482	291,757
Class D Fixed Rate Cumulative Perpetual Preferred Stock [Member]
STOCKHOLDERS’ EQUITY
Preferred stock	$ 17,343	$ 17,343

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) (Nonperforming Troubled Debt Restructurings [Member], USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Modifications [Line Items]
Total nonperforming troubled debt restructurings	$ 11,744	$ 40,010
Commercial, financial and agricultural [Member]
Financing Receivable, Modifications [Line Items]
Total nonperforming troubled debt restructurings	726	1,004
Real estate construction and development [Member]
Financing Receivable, Modifications [Line Items]
Total nonperforming troubled debt restructurings	3,906	26,557
One-to-four-family residential [Member]
Financing Receivable, Modifications [Line Items]
Total nonperforming troubled debt restructurings	6,450	7,105
Multi-family residential [Member]
Financing Receivable, Modifications [Line Items]
Total nonperforming troubled debt restructurings	0	2,482
Commercial real estate [Member]
Financing Receivable, Modifications [Line Items]
Total nonperforming troubled debt restructurings	$ 662	$ 2,862

XML

BUSINESS SEGMENT RESULTS (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
Investment securities	$ 2,368,591		$ 2,368,591		$ 2,675,280
Total loans	2,786,930		2,786,930		2,930,747
FRB and FHLB stock	27,137		27,137		27,329
Goodwill	107,267		107,267		125,267
Assets of discontinued operations	38,511		38,511		6,706
Total assets	6,237,328		6,237,328		6,509,126
Deposits	4,835,422		4,835,422		5,492,847
Other borrowings	37,077		37,077		26,025
Subordinated debentures	354,191		354,191		354,133
Liabilities of discontinued operations	549,155		549,155		155,711
Stockholders' equity	269,098		269,098		299,959	263,671
Interest income	42,366	50,118	130,084	153,125
Interest expense	5,952	7,193	18,076	22,962
Net interest income (loss)	36,414	42,925	112,008	130,163
Provision for loan losses	0	0	0	2,000
Net interest income (loss) after provision for loan losses	36,414	42,925	112,008	128,163
Noninterest income	15,529	16,647	49,867	49,526
Noninterest expense	45,305	48,839	133,495	148,198
Income (loss) from continuing operations before (benefit) provision for income taxes	6,638	10,733	28,380	29,491
(Benefit) provision for income taxes	(65)	(138)	(45)	78
Net income (loss) from continuing operations, net of tax	6,703	10,871	28,425	29,413
Loss from discontinued operations, net of tax	(881)	(2,182)	(6,279)	(6,763)
Net income (loss)	5,822	8,689	22,146	22,650	25,981
Net income (loss) attributable to noncontrolling interest in subsidiary	(38)	216	113	(229)
Net income (loss) attributable to First Banks, Inc.	5,860	8,473	22,033	22,879
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Investment securities	0		0		0
Total loans	0		0		0
FRB and FHLB stock	0		0		0
Goodwill	0		0		0
Assets of discontinued operations	0		0		0
Total assets	14,761		14,761		13,900
Deposits	(2,071)		(2,071)		(2,777)
Other borrowings	0		0		0
Subordinated debentures	354,191		354,191		354,133
Liabilities of discontinued operations	0		0		0
Stockholders' equity	(477,618)		(477,618)		(451,293)
Interest income	0	100	0	121
Interest expense	3,803	3,745	11,210	11,109
Net interest income (loss)	(3,803)	(3,645)	(11,210)	(10,988)
Provision for loan losses	0	0	0	0
Net interest income (loss) after provision for loan losses	(3,803)	(3,645)	(11,210)	(10,988)
Noninterest income	115	106	338	287
Noninterest expense	311	391	613	1,100
Income (loss) from continuing operations before (benefit) provision for income taxes	(3,999)	(3,930)	(11,485)	(11,801)
(Benefit) provision for income taxes	(1)	(804)	(1)	(369)
Net income (loss) from continuing operations, net of tax	(3,998)	(3,126)	(11,484)	(11,432)
Loss from discontinued operations, net of tax	0	0	0	0
Net income (loss)	(3,998)	(3,126)	(11,484)	(11,432)
Net income (loss) attributable to noncontrolling interest in subsidiary	0	0	0	0
Net income (loss) attributable to First Banks, Inc.	(3,998)	(3,126)	(11,484)	(11,432)
First Bank [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Investment securities	2,368,591		2,368,591		2,675,280
Total loans	2,786,930		2,786,930		2,930,747
FRB and FHLB stock	27,137		27,137		27,329
Goodwill	107,267		107,267		125,267
Assets of discontinued operations	38,511		38,511		6,706
Total assets	6,222,567		6,222,567		6,495,226
Deposits	4,837,493		4,837,493		5,495,624
Other borrowings	37,077		37,077		26,025
Subordinated debentures	0		0		0
Liabilities of discontinued operations	549,155		549,155		155,711
Stockholders' equity	746,716		746,716		751,252
Interest income	42,366	50,018	130,084	153,004
Interest expense	2,149	3,448	6,866	11,853
Net interest income (loss)	40,217	46,570	123,218	141,151
Provision for loan losses	0	0	0	2,000
Net interest income (loss) after provision for loan losses	40,217	46,570	123,218	139,151
Noninterest income	15,414	16,541	49,529	49,239
Noninterest expense	44,994	48,448	132,882	147,098
Income (loss) from continuing operations before (benefit) provision for income taxes	10,637	14,663	39,865	41,292
(Benefit) provision for income taxes	(64)	666	(44)	447
Net income (loss) from continuing operations, net of tax	10,701	13,997	39,909	40,845
Loss from discontinued operations, net of tax	(881)	(2,182)	(6,279)	(6,763)
Net income (loss)	9,820	11,815	33,630	34,082
Net income (loss) attributable to noncontrolling interest in subsidiary	(38)	216	113	(229)
Net income (loss) attributable to First Banks, Inc.	$ 9,858	$ 11,599	$ 33,517	$ 34,311

XML

FAIR VALUE DISCLOSURES (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Fair Value Disclosures [Abstract]
Loans transferred to other real estate and repossessed assets			$ 8,217	$ 21,788
Write-downs on other real estate and repossessed assets	(1,421)	(1,686)	(2,230)	(7,939)
Other real estate and repossessed assets	$ 74,831		$ 74,831		$ 91,995

XML

SERVICING RIGHTS (Tables)

9 Months Ended

Sep. 30, 2013

Mortgage Banking [Member]

Servicing Assets at Fair Value [Line Items]

Schedule of Servicing Assets at Fair Value [Table Text Block]

Changes in mortgage servicing rights for the three and nine months ended September 30, 2013 and 2012 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Balance, beginning of period	$	12,341		8,959		9,152		9,077
Originated mortgage servicing rights	942			1,329		3,059		3,322
Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1)	1,160			(1,484	)	3,467		(2,283	)
Other changes in fair value (2)	(593		)	(616	)	(1,828	)	(1,928	)
Balance, end of period	$	13,850		8,188		13,850		8,188

____________________

(1) The change in fair value resulting from changes in valuation inputs or assumptions used in valuation model primarily reflects the change in discount rates and prepayment speed assumptions, primarily due to changes in interest rates.

(2) Other changes in fair value reflect changes due to the collection/realization of expected cash flows over time.

SBA [Member]

Servicing Assets at Fair Value [Line Items]

Schedule of Servicing Assets at Fair Value [Table Text Block]

Changes in SBA servicing rights for the three and nine months ended September 30, 2013 and 2012 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Balance, beginning of period	$	5,192		6,223		5,640		6,303
Originated SBA servicing rights	—			—		—		—
Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1)	(127		)	148		(163	)	437
Other changes in fair value (2)	(157		)	(465	)	(569	)	(834	)
Balance, end of period	$	4,908		5,906		4,908		5,906

____________________

(1) The change in fair value resulting from changes in valuation inputs or assumptions used in valuation model primarily reflects the change in discount rates and prepayment speed assumptions, primarily due to changes in interest rates.

(2) Other changes in fair value reflect changes due to the collection/realization of expected cash flows over time.

XML

TRANSACTIONS WITH RELATED PARTIES

9 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

TRANSACTIONS WITH RELATED PARTIES

TRANSACTIONSWITHRELATEDPARTIES

First Services, L.P. First Services, L.P. (First Services), a limited partnership indirectly owned by the Company’s Chairman and members of his immediate family, including Mr. Michael Dierberg, Vice Chairman of the Company, provides information technology, item processing and various related services to the Company and First Bank. Fees paid under agreements with First Services were $5.1 million and $15.0 million for the three and nine months ended September 30, 2013, respectively, and $4.9 million and $16.2 million for the comparable periods in 2012. First Services leases information technology and other equipment from First Bank. First Services paid First Bank rental fees for the use of such equipment of $283,000 and $820,000 during the three and nine months ended September 30, 2013, respectively, and $322,000 and $1.0 million for the comparable periods in 2012. In addition, First Services paid $435,000 and $1.3 million for the three and nine months ended September 30, 2013, respectively, and $435,000 and $1.4 million for the comparable periods in 2012, in rental payments to First Bank for occupancy of certain First Bank premises from which business is conducted.

First Services has an Affiliate Services Agreement with the Company and First Bank that relates to various services provided to First Services, including certain human resources, payroll, employee benefit and training services, insurance services and vendor payment processing services. Fees accrued under the Affiliate Services Agreement by First Services were $46,000 and $137,000 for the three and nine months ended September 30, 2013, respectively, and $44,000 and $133,000 for the comparable periods in 2012.

First Brokerage America, L.L.C. First Brokerage America, L.L.C. (First Brokerage), a limited liability company indirectly owned by the Company’s Chairman and members of his immediate family, including Mr. Michael Dierberg, Vice Chairman of the Company, received$943,000 and $3.4 million for the three and nine months ended September 30, 2013, respectively, and $914,000 and $3.3 million for the comparable periods in 2012, in gross commissions paid by unaffiliated third-party companies. The commissions received primarily resulted from sales of annuities, securities and other insurance products to customers of First Bank. First Brokerage paid $98,000 and $343,000 for the three and nine months ended September 30, 2013, respectively, and $100,000 and $325,000 for the comparable periods in 2012, to First Bank in rental payments for occupancy of certain First Bank premises from which brokerage business is conducted.

Dierbergs Markets, Inc. First Bank leases certain of its in-store branch offices and automated teller machine (ATM) sites from Dierbergs Markets, Inc., a grocery store chain headquartered in St. Louis, Missouri that is owned and operated by the brother of the Company’s Chairman and members of his immediate family. Total rent expense incurred by First Bank under the lease obligation contracts was $124,000 and $368,000 for the three and nine months ended September 30, 2013, respectively, and $129,000 and $373,000 for the comparable periods in 2012.

First Capital America, Inc. / FB Holdings, LLC. The Company formed FB Holdings, a limited liability company organized in the state of Missouri, in May 2008. FB Holdings operates as a majority-owned subsidiary of First Bank and was formed for the primary purpose of holding and managing certain nonperforming loans and assets to allow the liquidation of such assets at a time that was more economically advantageous to First Bank and to permit an efficient vehicle for the investment of additional capital by the Company’s sole owner of its Class A and Class B preferred stock. First Bank contributed cash of $9.0 million and nonperforming loans and assets with a fair value of approximately $133.3 million and FCA contributed cash of $125.0 million to FB Holdings during 2008. As a result, First Bank owned 53.23% and FCA owned the remaining 46.77% of FB Holdings as of September 30, 2013. The contribution of cash by FCA is reflected as a component of stockholders’ equity in the consolidated balance sheets and, consequently, increased the Company’s and First Bank’s regulatory capital ratios under then-existing regulatory guidelines, subject to certain limitations.

FB Holdings receives various services provided by First Bank, including loan servicing and special assets services as well as various other financial, legal, human resources and property management services. Fees paid under the agreement by FB Holdings to First Bank were $3,000 and $19,000 for the three and nine months ended September 30, 2013, respectively, and $27,000 and $105,000 for the comparable periods in 2012.

Investors of America Limited Partnership. On March 20, 2013, the Company entered into a $5.0 million Credit Agreement with Investors of America, LP, as further described in Note 8 to the consolidated financial statements. Investors of America, LP is a Nevada limited partnership that was created by and for the benefit of the Company’s Chairman and members of his immediate family. There have been no balances outstanding under the Credit Agreement since its inception.

Loans to Directors and/or their Affiliates. First Bank has had in the past, and may have in the future, loan transactions in the ordinary course of business with its directors and/or their affiliates. These loan transactions have been made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unaffiliated persons and did not involve more than the normal risk of collectability or present other unfavorable features. Loans to directors, their affiliates and executive officers of the Company were $14.8 million and $9.1 million at September 30, 2013 and December 31, 2012, respectively. First Bank does not extend credit to its officers or to officers of the Company, except extensions of credit secured by mortgages on personal residences, loans to purchase automobiles, personal credit card accounts and deposit account overdraft protection under a plan whereby a credit limit has been established in accordance with First Bank’s standard credit criteria.

Depositary Accounts of Directors and/or their Affiliates. Certain directors and/or their affiliates maintain funds on deposit with First Bank in the ordinary course of business. These deposit transactions include demand, savings and time accounts, and have been established on the same terms, including interest rates, as those prevailing at the time for comparable transactions with unaffiliated persons.

XML

INVESTMENTS IN DEBT AND EQUITY SECURITIES - Schedule of Continuous Unrealized Loss Positions (Details 3) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 510,717	$ 145,467
Available-for-sale Securities, Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses	(15,974)	(587)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	31,305	17,945
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer Aggregate Losses	(319)	(677)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	542,022	163,412
Available-for-sale Securities, Continuous Unrealized Loss Position Aggregate Losses	(16,293)	(1,264)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	682,416	67,144
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(16,502)	(991)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	7,622	0
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(11)	0
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	690,038	67,144
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses	(16,513)	(991)
U.S. Government sponsored agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	45,008	20,018
Available-for-sale Securities, Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses	(960)	(146)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	19,939	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer Aggregate Losses	(208)	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	64,947	20,018
Available-for-sale Securities, Continuous Unrealized Loss Position Aggregate Losses	(1,168)	(146)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	18,501
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(164)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	0
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	18,501
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses	(164)
Residential mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	401,599	125,449
Available-for-sale Securities, Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses	(14,043)	(441)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	6,373	270
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer Aggregate Losses	(104)	(56)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	407,972	125,719
Available-for-sale Securities, Continuous Unrealized Loss Position Aggregate Losses	(14,147)	(497)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	662,903	66,011
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(16,284)	(614)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	7,622	0
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(11)	0
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	670,525	66,011
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses	(16,295)	(614)
State and political subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	27,860
Available-for-sale Securities, Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses	(588)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer Aggregate Losses	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	27,860
Available-for-sale Securities, Continuous Unrealized Loss Position Aggregate Losses	(588)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	1,012	1,133
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(54)	(377)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	0	0
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	1,012	1,133
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses	(54)	(377)
Corporate notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	34,794	0
Available-for-sale Securities, Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses	(339)	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	4,993	17,675
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer Aggregate Losses	(7)	(621)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	39,787	17,675
Available-for-sale Securities, Continuous Unrealized Loss Position Aggregate Losses	(346)	(621)
Equity investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	1,456
Available-for-sale Securities, Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses	(44)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer Aggregate Losses	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,456
Available-for-sale Securities, Continuous Unrealized Loss Position Aggregate Losses	$ (44)

XML

INCOME TAXES (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Schedule of Income Taxes [Line Items]
Deferred Tax Assets, Valuation Allowance	$ 391,559,000		$ 391,559,000		$ 376,224,000
Unrecognized Tax Benefits	858,000		858,000		1,100,000
Unrecognized Tax Benefits That Would Affect Provision For Income Taxes	566,000		566,000		740,000
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	133,000		133,000		116,000
Unrecognized Tax Benefits, Interest on Income Taxes Expense	11,000	15,000	16,000	51,000
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	(165,000)		(165,000)
Estimated Provision For Income Taxes Before Deferred Tax Asset Valuation Allowance Resulting From Lapse Of Applicable Statute Of Limitations	108,000		108,000
Internal Revenue Service (IRS) [Member]
Schedule of Income Taxes [Line Items]
Operating Loss Carryforwards	612,000,000		612,000,000		597,700,000
State and Local Jurisdiction [Member]
Schedule of Income Taxes [Line Items]
Operating Loss Carryforwards	836,500,000		836,500,000		786,400,000
Deferred Tax Asset Related to Net Operating Loss	$ 70,600,000		$ 70,600,000		$ 65,900,000

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 8) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 85,633	$ 120,227	$ 91,602	$ 137,710
Loans charged-off	(7,040)	(13,927)	(20,794)	(48,327)
Recoveries of loans previously charged-off	5,684	7,902	13,469	22,819
Net loans charged-off	(1,356)	(6,025)	(7,325)	(25,508)
Provision for loan losses	0	0	0	2,000
Balance, end of period	$ 84,277	$ 114,202	$ 84,277	$ 114,202

XML

SUBORDINATED DEBENTURES (Details) (USD $) In Thousands, unless otherwise specified			9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013 First Bank Statutory Trust II [Member]		Sep. 30, 2013 Royal Oaks Capital Trust I [Member]		Sep. 30, 2013 First Bank Statutory Trust III [Member]		Sep. 30, 2013 First Bank Statutory Trust IV [Member]		Sep. 30, 2013 First Bank Statutory Trust V [Member]		Sep. 30, 2013 First Bank Statutory Trust VI [Member]		Sep. 30, 2013 First Bank Statutory Trust VII [Member]		Sep. 30, 2013 First Bank Statutory Trust VIII [Member]		Sep. 30, 2013 First Bank Statutory Trust X [Member]		Sep. 30, 2013 First Bank Statutory Trust IX [Member]		Sep. 30, 2013 First Bank Statutory Trust XI [Member]		Sep. 30, 2013 First Bank Statutory Trust [Member]		Sep. 30, 2013 First Preferred Capital Trust IV [Member]		Sep. 30, 2013 Three-Month London Interbank Offered Rate (LIBOR) [Member] First Bank Statutory Trust II [Member]		Sep. 30, 2013 Three-Month London Interbank Offered Rate (LIBOR) [Member] Royal Oaks Capital Trust I [Member]		Sep. 30, 2013 Three-Month London Interbank Offered Rate (LIBOR) [Member] First Bank Statutory Trust III [Member]		Sep. 30, 2013 Three-Month London Interbank Offered Rate (LIBOR) [Member] First Bank Statutory Trust IV [Member]		Sep. 30, 2013 Three-Month London Interbank Offered Rate (LIBOR) [Member] First Bank Statutory Trust V [Member]		Sep. 30, 2013 Three-Month London Interbank Offered Rate (LIBOR) [Member] First Bank Statutory Trust VI [Member]		Sep. 30, 2013 Three-Month London Interbank Offered Rate (LIBOR) [Member] First Bank Statutory Trust VII [Member]		Sep. 30, 2013 Three-Month London Interbank Offered Rate (LIBOR) [Member] First Bank Statutory Trust VIII [Member]		Sep. 30, 2013 Three-Month London Interbank Offered Rate (LIBOR) [Member] First Bank Statutory Trust X [Member]		Sep. 30, 2013 Three-Month London Interbank Offered Rate (LIBOR) [Member] First Bank Statutory Trust IX [Member]		Sep. 30, 2013 Three-Month London Interbank Offered Rate (LIBOR) [Member] First Bank Statutory Trust XI [Member]
Debt Instrument [Line Items]
Issuance Date			Sep. 01, 2004		Oct. 01, 2004		Nov. 01, 2004		Mar. 01, 2006		Apr. 01, 2006		Jun. 01, 2006		Dec. 01, 2006		Feb. 01, 2007		Aug. 01, 2007		Sep. 01, 2007		Sep. 01, 2007		Mar. 01, 2003		Apr. 01, 2003
Maturity Date			Sep. 20, 2034		Jan. 07, 2035		Dec. 15, 2034		Mar. 15, 2036		Jun. 15, 2036		Jul. 07, 2036		Dec. 15, 2036		Mar. 30, 2037		Sep. 15, 2037		Dec. 15, 2037		Dec. 15, 2037		Mar. 20, 2033		Jun. 30, 2033
Call Date			Sep. 20, 2009	[1]	Jan. 07, 2010	[1]	Dec. 15, 2009	[1]	Mar. 15, 2011	[1]	Jun. 15, 2011	[1]	Jul. 07, 2011	[1]	Dec. 15, 2011	[1]	Mar. 30, 2012	[1]	Sep. 15, 2012	[1]	Dec. 15, 2012	[1]	Dec. 15, 2012	[1]	Mar. 20, 2008	[1]	Jun. 30, 2008	[1]
Debt Instrument, Basis Spread on Variable Rate																													2.05%	[2]	2.40%	[2]	2.18%	[2]	1.42%	[2]	1.45%	[2]	1.65%	[2]	1.85%	[2]	1.61%	[2]	2.30%	[2]	2.25%	[2]	2.85%	[2]
Debt Instrument, Interest Rate, Stated Percentage																									8.10%	[2]	8.15%	[2]
Trust Preferred Securities			$ 20,000		$ 4,000		$ 40,000		$ 40,000		$ 20,000		$ 25,000		$ 50,000		$ 25,000		$ 15,000		$ 25,000		$ 10,000		$ 25,000		$ 46,000
Subordinated debentures	$ 354,191	$ 354,133	$ 20,619		$ 4,124		$ 41,238		$ 41,238		$ 20,619		$ 25,774		$ 51,547		$ 25,774		$ 15,464		$ 25,774		$ 10,310		$ 25,774		$ 47,423

[1] The junior subordinated debentures are callable at the option of the Company on the call date shown at 100% of the principal amount plus accrued and unpaid interest.

[2] The interest rates paid on the trust preferred securities are based on either a variable rate or a fixed rate. The variable rate is based on the three-month LIBOR plus the basis point spread shown.

XML

DISCONTINUED OPERATIONS (Discontinued Operations Balance Sheet and Income Statement) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Apr. 19, 2013	Dec. 31, 2012
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]
Assets of discontinued operations	$ 38,511		$ 38,511			$ 6,706
Deposits:
Liabilities of discontinued operations	549,155		549,155			155,711
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Interest and fees on loans	332	418	1,036	1,360
Interest on deposits	78	343	481	1,144
Net interest income (loss)	254	75	555	216
Provision for loan losses	0	0	0	0
Net interest income (loss) after provision for loan losses	254	75	555	216
Service charges and customer service fees	17	123	208	438
Other	28	30	85	91
Total noninterest income	45	153	293	529
Salaries and employee benefits	753	1,184	3,094	3,686
Occupancy, net of rental income	1	439	584	1,329
Furniture and equipment	13	91	74	297
FDIC insurance	194	414	656	1,228
Other	233	282	3,127	968
Total noninterest expense	1,194	2,410	7,535	7,508
Loss from operations of discontinued operations	(895)	(2,182)	(6,687)	(6,763)
Net gain on sale of discontinued operations	14	0	408	0
Benefit for income taxes	0	0	0	0
Net loss from discontinued operations, net of tax	(881)	(2,182)	(6,279)	(6,763)
Association Bank Services [Member]
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]
Cash and due from banks	0		0
Commercial, financial and agricultural	20,591		20,591
Consumer and installment	10		10
Net deferred loan fees	(208)		(208)
Total loans	20,393		20,393
Bank premises and equipment, net	70		70
Goodwill	18,000		18,000
Other assets	48		48
Assets of discontinued operations	38,511		38,511
Deposits:
Noninterest-bearing demand	129,785		129,785
Interest-bearing demand	339,297		339,297
Savings and money market	18,455		18,455
Time deposits of $100 or more	23,931		23,931
Other time deposits	37,631		37,631
Total deposits	549,099		549,099
Accrued expenses and other liabilities	56		56
Liabilities of discontinued operations	549,155		549,155
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Interest and fees on loans	332	418	1,036	1,360
Interest on deposits	78	121	248	375
Net interest income (loss)	254	297	788	985
Provision for loan losses	0	0	0	0
Net interest income (loss) after provision for loan losses	254	297	788	985
Service charges and customer service fees	17	22	74	106
Other	28	27	81	82
Total noninterest income	45	49	155	188
Salaries and employee benefits	753	625	2,209	1,964
Occupancy, net of rental income	1	2	5	8
Furniture and equipment	13	29	34	74
FDIC insurance	194	317	603	928
Other	233	204	675	690
Total noninterest expense	1,194	1,177	3,526	3,664
Loss from operations of discontinued operations	(895)	(831)	(2,583)	(2,491)
Net gain on sale of discontinued operations	0	0	0	0
Benefit for income taxes	0	0	0	0
Net loss from discontinued operations, net of tax	(895)	(831)	(2,583)	(2,491)
Northern Florida Region [Member]
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]
Cash and due from banks						1,139
Commercial, financial and agricultural						0
Consumer and installment						0
Net deferred loan fees						0
Total loans						0
Bank premises and equipment, net						4,837
Goodwill					700	700
Other assets						30
Assets of discontinued operations						6,706
Deposits:
Noninterest-bearing demand						12,488
Interest-bearing demand						10,480
Savings and money market						67,686
Time deposits of $100 or more						27,034
Other time deposits						37,964
Total deposits						155,652
Accrued expenses and other liabilities						59
Liabilities of discontinued operations						155,711
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Interest and fees on loans	0	0	0	0
Interest on deposits	0	222	233	769
Net interest income (loss)	0	(222)	(233)	(769)
Provision for loan losses	0	0	0	0
Net interest income (loss) after provision for loan losses	0	(222)	(233)	(769)
Service charges and customer service fees	0	101	134	332
Other	0	3	4	9
Total noninterest income	0	104	138	341
Salaries and employee benefits	0	559	885	1,722
Occupancy, net of rental income	0	437	579	1,321
Furniture and equipment	0	62	40	223
FDIC insurance	0	97	53	300
Other	0	78	2,452	278
Total noninterest expense	0	1,233	4,009	3,844
Loss from operations of discontinued operations	0	(1,351)	(4,104)	(4,272)
Net gain on sale of discontinued operations	14	0	408	0
Benefit for income taxes	0	0	0	0
Net loss from discontinued operations, net of tax	$ 14	$ (1,351)	$ (3,696)	$ (4,272)

XML

INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

A summary of the Company’s deferred tax assets and deferred tax liabilities at September 30, 2013 and December 31, 2012 is as follows:

	September 30, 2013			December 31, 2012
	(dollars expressed in thousands)
Gross deferred tax assets	$	407,292		405,266
Valuation allowance	(391,559		)	(376,224	)
Deferred tax assets, net of valuation allowance	15,733			29,042
Deferred tax liabilities	23,166			36,182
Net deferred tax liabilities	$	(7,433	)	(7,140	)

XML

EARNINGS (LOSS) PER COMMON SHARE (Tables)

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation [Table Text Block]

The following is a reconciliation of basic and diluted earnings (loss) per share (EPS) for the three and nine months endedSeptember 30, 2013 and 2012:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars in thousands, except share and per share data)
Basic:
Net income from continuing operations attributable to First Banks, Inc.	$	6,741		10,655		28,312		29,642
Preferred stock dividends declared and undeclared	(5,013		)	(4,753	)	(14,841	)	(14,070	)
Accretion of discount on preferred stock	(919		)	(893	)	(2,725	)	(2,660	)
Net income from continuing operations attributable to common stockholders	809			5,009		10,746		12,912
Net loss from discontinued operations attributable to common stockholders	(881		)	(2,182	)	(6,279	)	(6,763	)
Net (loss) income available to First Banks, Inc. common stockholders	$	(72	)	2,827		4,467		6,149
Weighted average shares of common stock outstanding	23,661			23,661		23,661		23,661
Basic earnings per common share – continuing operations	$	34.19		211.70		454.17		545.72
Basic loss per common share – discontinued operations	$	(37.23	)	(92.22	)	(265.37	)	(285.83	)
Basic (loss) earnings per common share	$	(3.04	)	119.48		188.80		259.89
Diluted:
Net income from continuing operations attributable to common stockholders	$	809		5,009		10,746		12,912
Net loss from discontinued operations attributable to common stockholders	(881		)	(2,182	)	(6,279	)	(6,763	)
Net (loss) income available to First Banks, Inc. common stockholders	(72		)	2,827		4,467		6,149
Effect of dilutive securities – Class A convertible preferred stock	—			—		—		—
Diluted (loss) income available to First Banks, Inc. common stockholders	$	(72	)	2,827		4,467		6,149
Weighted average shares of common stock outstanding	23,661			23,661		23,661		23,661
Effect of dilutive securities – Class A convertible preferred stock	—			—		—		—
Weighted average diluted shares of common stock outstanding	23,661			23,661		23,661		23,661
Diluted earnings per common share – continuing operations	$	34.19		211.70		454.17		545.72
Diluted loss per common share – discontinued operations	$	(37.23	)	(92.22	)	(265.37	)	(285.83	)
Diluted (loss) earnings per common share	$	(3.04	)	119.48		188.80		259.89

XML

SERVICING RIGHTS

9 Months Ended

Sep. 30, 2013

Servicing Asset [Abstract]

SERVICING RIGHTS

SERVICINGRIGHTS

Mortgage Banking Activities. At September 30, 2013 and December 31, 2012, First Bank serviced mortgage loans for others totaling $1.32 billion and $1.27 billion, respectively. Changes in mortgage servicing rights for the three and nine months ended September 30, 2013 and 2012 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Balance, beginning of period	$	12,341		8,959		9,152		9,077
Originated mortgage servicing rights	942			1,329		3,059		3,322
Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1)	1,160			(1,484	)	3,467		(2,283	)
Other changes in fair value (2)	(593		)	(616	)	(1,828	)	(1,928	)
Balance, end of period	$	13,850		8,188		13,850		8,188

____________________

(1) The change in fair value resulting from changes in valuation inputs or assumptions used in valuation model primarily reflects the change in discount rates and prepayment speed assumptions, primarily due to changes in interest rates.

(2) Other changes in fair value reflect changes due to the collection/realization of expected cash flows over time.

Other Servicing Activities. At September 30, 2013 and December 31, 2012, First Bank serviced United States Small Business Administration (SBA) loans for others totaling $143.3 million and $159.6 million, respectively. Changes in SBA servicing rights for the three and nine months ended September 30, 2013 and 2012 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars expressed in thousands)
Balance, beginning of period	$	5,192		6,223		5,640		6,303
Originated SBA servicing rights	—			—		—		—
Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1)	(127		)	148		(163	)	437
Other changes in fair value (2)	(157		)	(465	)	(569	)	(834	)
Balance, end of period	$	4,908		5,906		4,908		5,906

____________________

(1) The change in fair value resulting from changes in valuation inputs or assumptions used in valuation model primarily reflects the change in discount rates and prepayment speed assumptions, primarily due to changes in interest rates.

(2) Other changes in fair value reflect changes due to the collection/realization of expected cash flows over time.

XML

DERIVATIVE INSTRUMENTS (Details 1) (Not Designated as Hedging Instrument [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Interest Rate Swap Agreements Subordinated Debentures [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other noninterest income	$ 0	$ (8)	$ 0	$ (49)
Customer interest rate swap agreements [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other noninterest income	0	0	0	3
Interest rate lock commitments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain on loans sold and held for sale	675	1,192	(1,094)	2,901
Forward commitments to sell mortgage-backed securities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain on loans sold and held for sale	$ (3,115)	$ (1,165)	$ (332)	$ (1,593)

XML

DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments [Table Text Block]

The following table summarizes derivative instruments held by the Company, their notional amount, estimated fair values and their location in the consolidated balance sheets at September 30, 2013 and December 31, 2012:

				Derivatives in Other Assets				Derivatives in Other Liabilities
	Notional Amount			Fair Value Gain (Loss)				Fair Value Loss
	September 30, 2013		December 31, 2012	September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012
	(dollars expressed in thousands)
Derivative Instruments Not Designated as Hedging Instruments:
Customer interest rate swap agreements	$	8,731	12,149	7		87		(7	)	(87	)
Interest rate lock commitments	27,118		59,932	743		1,837		—		—
Forward commitments to sell mortgage-backed securities	39,300		107,700	(637	)	(305	)	—		—
Total	$	75,149	179,781	113		1,619		(7	)	(87	)

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The following table summarizes amounts included in the consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012 related to non-hedging derivative instruments:

Derivative Instruments Not Designated as Hedging Instruments:	Location of Gain (Loss) Recognized in Operations on Derivatives	Amount of Gain (Loss) Recognized in Operations on Derivatives
		Three Months Ended					Nine Months Ended
		September 30,					September 30,
		2013			2012		2013		2012
		(dollars expressed in thousands)
Interest rate swap agreements	Other noninterest income	$	—		(8	)	—		(49	)
Customer interest rate swap agreements	Other noninterest income	—			—		—		3
Interest rate lock commitments	Gain on loans sold and held for sale	675			1,192		(1,094	)	2,901
Forward commitments to sell mortgage-backed securities	Gain on loans sold and held for sale	(3,115		)	(1,165	)	(332	)	(1,593	)

XML

INVESTMENTS IN DEBT AND EQUITY SECURITIES - Held-to-maturity Securities (Details 1) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Debt Maturities, Within One Year, Net Carrying Amount	$ 1,021	$ 826
Held-to-maturity Securities, Debt Maturities, After One Through Five Years, Net Carrying Amount	18,186	1,099
Held-to-maturity Securities, Debt Maturities, After Five Through Ten Years, Net Carrying Amount	205,061	161,254
Held-to-maturity Securities, Debt Maturities, After Ten Years, Net Carrying Amount	540,036	468,374
Held-to-maturity Securities, Amortized Cost Before Other Than Temporary Impairment	764,304	631,553
Held-to-maturity Securities, Gross Unrealized Gains	687	6,462
Held-to-maturity Securities, Gross Unrealized Losses	(16,513)	(991)
Held-to-maturity Securities, Fair Value	748,478	637,024
Held-to-maturity Securities Weighted Average Yield	1.92%	1.80%
Held-to-maturity Securities Weighted Average Yield With In One Year	2.91%	2.56%
Held-to-maturity Securities Weighted Average Yield After One Through Five Years	2.08%	3.40%
Held-to-maturity Securities Weighted Average Yield After Five Through Ten Years	1.57%	1.77%
Held-to-maturity Securities Weighted Average Yield After Ten Years	2.04%	1.81%
U.S. Government sponsored agencies [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Debt Maturities, Within One Year, Net Carrying Amount	0	0
Held-to-maturity Securities, Debt Maturities, After One Through Five Years, Net Carrying Amount	0	0
Held-to-maturity Securities, Debt Maturities, After Five Through Ten Years, Net Carrying Amount	18,665	52,582
Held-to-maturity Securities, Debt Maturities, After Ten Years, Net Carrying Amount	0	0
Held-to-maturity Securities, Amortized Cost Before Other Than Temporary Impairment	18,665	52,582
Held-to-maturity Securities, Gross Unrealized Gains	0	269
Held-to-maturity Securities, Gross Unrealized Losses	(164)	0
Held-to-maturity Securities, Fair Value	18,501	52,851
Held-to-maturity Securities Weighted Average Yield	1.37%	1.63%
Residential mortgage-backed [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Debt Maturities, Within One Year, Net Carrying Amount	0	0
Held-to-maturity Securities, Debt Maturities, After One Through Five Years, Net Carrying Amount	17,167	0
Held-to-maturity Securities, Debt Maturities, After Five Through Ten Years, Net Carrying Amount	186,341	108,420
Held-to-maturity Securities, Debt Maturities, After Ten Years, Net Carrying Amount	538,970	466,863
Held-to-maturity Securities, Amortized Cost Before Other Than Temporary Impairment	742,478	575,283
Held-to-maturity Securities, Gross Unrealized Gains	679	6,142
Held-to-maturity Securities, Gross Unrealized Losses	(16,295)	(614)
Held-to-maturity Securities, Fair Value	726,862	580,811
Held-to-maturity Securities Weighted Average Yield	1.93%	1.82%
State and political subdivisions [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Debt Maturities, Within One Year, Net Carrying Amount	1,021	826
Held-to-maturity Securities, Debt Maturities, After One Through Five Years, Net Carrying Amount	1,019	1,099
Held-to-maturity Securities, Debt Maturities, After Five Through Ten Years, Net Carrying Amount	55	252
Held-to-maturity Securities, Debt Maturities, After Ten Years, Net Carrying Amount	1,066	1,511
Held-to-maturity Securities, Amortized Cost Before Other Than Temporary Impairment	3,161	3,688
Held-to-maturity Securities, Gross Unrealized Gains	8	51
Held-to-maturity Securities, Gross Unrealized Losses	(54)	(377)
Held-to-maturity Securities, Fair Value	3,115	3,362
Held-to-maturity Securities Weighted Average Yield	2.07%	1.89%
Debt securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Debt Maturities, Within One Year, Fair Value	1,026	836
Held-to-maturity Securities, Debt Maturities, After One Through Five Years, Fair Value	17,903	1,129
Held-to-maturity Securities, Debt Maturities, After Five Through Ten Years, Fair Value	201,942	164,433
Held-to-maturity Securities, Debt Maturities, After Ten Years, Fair Value	$ 527,607	$ 470,626

XML

SUBORDINATED DEBENTURES

9 Months Ended

Sep. 30, 2013

Subordinated Borrowings [Abstract]

SUBORDINATED DEBENTURES

SUBORDINATEDDEBENTURES

As of September 30, 2013, the Company had 13 affiliated Delaware or Connecticut statutory and business trusts (collectively, the Trusts) that were created for the sole purpose of issuing trust preferred securities. The trust preferred securities were issued in private placements, with the exception of First Preferred Capital Trust IV, which was issued in a publicly underwritten offering. The following is a summary of the junior subordinated debentures issued to the Trusts in conjunction with the trust preferred securities offerings at September 30, 2013 and December 31, 2012:

Name of Trust	Issuance Date	Maturity Date	Call Date(1)	Interest Rate(2)	Trust Preferred Securities		Subordinated Debentures
					(dollars expressed in thousands)
Variable Rate
First Bank Statutory Trust II	September 2004	September 20, 2034	September 20, 2009	205.0 bp	$	20,000	$	20,619
Royal Oaks Capital Trust I	October 2004	January 7, 2035	January 7, 2010	240.0 bp	4,000		4,124
First Bank Statutory Trust III	November 2004	December 15, 2034	December 15, 2009	218.0 bp	40,000		41,238
First Bank Statutory Trust IV	March 2006	March 15, 2036	March 15, 2011	142.0 bp	40,000		41,238
First Bank Statutory Trust V	April 2006	June 15, 2036	June 15, 2011	145.0 bp	20,000		20,619
First Bank Statutory Trust VI	June 2006	July 7, 2036	July 7, 2011	165.0 bp	25,000		25,774
First Bank Statutory Trust VII	December 2006	December 15, 2036	December 15, 2011	185.0 bp	50,000		51,547
First Bank Statutory Trust VIII	February 2007	March 30, 2037	March 30, 2012	161.0 bp	25,000		25,774
First Bank Statutory Trust X	August 2007	September 15, 2037	September 15, 2012	230.0 bp	15,000		15,464
First Bank Statutory Trust IX	September 2007	December 15, 2037	December 15, 2012	225.0 bp	25,000		25,774
First Bank Statutory Trust XI	September 2007	December 15, 2037	December 15, 2012	285.0 bp	10,000		10,310
Fixed Rate
First Bank Statutory Trust	March 2003	March 20, 2033	March 20, 2008	8.10%	25,000		25,774
First Preferred Capital Trust IV	April 2003	June 30, 2033	June 30, 2008	8.15%	46,000		47,423

____________________

(1) The junior subordinated debentures are callable at the option of the Company on the call date shown at 100% of the principal amount plus accrued and unpaid interest.

(2) The interest rates paid on the trust preferred securities are based on either a variable rate or a fixed rate. The variable rate is based on the three-month LIBOR plus the basis point spread shown.

The Company’s distributions accrued on the junior subordinated debentures were $3.8 million and $11.2 million for the three and nine months ended September 30, 2013, respectively, and $3.7 million and $11.1 million for the comparable periods in 2012, and are included in interest expense in the consolidated statements of operations. The structure of the trust preferred securities currently satisfies the regulatory requirements for inclusion, subject to certain limitations, in the Company’s capital base, as further discussed in Note 11 to the consolidated financial statements.

On August 10, 2009, the Company announced the deferral of its regularly scheduled interest payments on its outstanding junior subordinated debentures relating to its $345.0 million of trust preferred securities beginning with the regularly scheduled quarterly interest payments that would otherwise have been made in September and October, 2009. The terms of the junior subordinated debentures and the related trust indentures allow the Company to defer such payments of interest for up to 20 consecutive quarterly periods without triggering a payment default or penalty. The current allowable 20 consecutive quarterly deferral period ends with the respective payment dates of the trust preferred securities in September and October, 2014. Thus, unless the Company resumes payment of interest on its junior subordinated debentures relating to its trust preferred securities and pays all cumulative interest that has been deferred by the respective payment dates of the trust preferred securities in September and October, 2014, the Company will trigger a payment default or penalty, and the trustee under the indentures will have the right and may elect to declare the entire outstanding amount of both principal and interest immediately due and payable. Such payment default or penalty would have a material adverse effect on our business, financial condition and results of operations.

The Company has deferred such payments for 17 quarterly periods as of September 30, 2013. The Company has deferred $52.9 million and $43.8 million of its regularly scheduled interest payments as of September 30, 2013 and December 31, 2012, respectively. In addition, the Company has accrued additional interest expense of $6.0 million and $3.9 million as of September 30, 2013 and December 31, 2012, respectively, on the regularly scheduled deferred interest payments based on the interest rate in effect for each junior subordinated note issuance in accordance with the respective terms of the underlying agreements. The Company currently lacks the source of income and the liquidity to make interest payments on the subordinated debentures associated with its trust preferred securities. Given restrictions placed upon First Bank, including regulatory restrictions, it may not be able to provide the Company with dividends in an amount sufficient to pay the cumulative deferred interest by the respective payment dates of the trust preferred securities in September and October, 2014. In such case, the Company would have to pursue alternative funding sources, but there can be no assurance that the Company will be able to identify and obtain alternative funding due to the uncertainty that such alternative funding sources would be available to the Company on terms and conditions that are acceptable to the Company.

During the deferral period, the Company may not, among other things and with limited exceptions, pay cash dividends on or repurchase its common stock or preferred stock nor make any payment on outstanding debt obligations that rank equally with or junior to the junior subordinated debentures. Accordingly, the Company also suspended the payment of cash dividends on its outstanding common stock and preferred stock beginning with the regularly scheduled quarterly dividend payments on the preferred stock that would otherwise have been made in August and September, 2009, as further described in Note 10 to the consolidated financial statements.

Under its agreement with the Federal Reserve Bank of St. Louis (FRB), the Company agreed, among other things, to provide certain information to the FRB, including, but not limited to, prior notice regarding the issuance of additional trust preferred securities. The Company also agreed not to make any distributions of interest or other sums on its outstanding trust preferred securities without the prior approval of the FRB, as further described in Note 11 to the consolidated financial statements. The Company is unable to predict whether or when the FRB will grant approval to the Company to make any such interest payments. As such, if the Company triggers a payment default or penalty, and the trustee under the indentures elects to declare the entire outstanding amount of both principal and interest immediately due and payable, there is a substantial risk that the Company would not be able to meet its financial commitments and related contractual obligations associated with its junior subordinated debentures, which would have a material adverse effect on our business, financial condition and results of operations.

XML

FAIR VALUE DISCLOSURES (Details 3) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Investment securities [Abstract]
Available for sale	$ 1,604,287	$ 2,043,727
Held-to-maturity Securities, Estimated Fair Value	748,478	637,024
Estimate of Fair Value, Fair Value Disclosure [Member]
Financial Assets:
Cash and Cash Equivalents, Fair Value Disclosure	714,155	518,846
Investment securities [Abstract]
Available for sale	1,604,287	2,043,727
Held-to-maturity Securities, Estimated Fair Value	748,478	637,024
Loans held for portfolio, Estimated Fair Value	2,478,309	2,572,256
Loans Held-for-sale, Estimated Fair Value	28,313	66,133
FRB and FHLB stock, Estimated Fair Value	27,137	27,329
Derivative assets, Estimated Fair Value	113	1,619
Accrued interest receivable, Estimated Fair Value	17,738	18,284
Assets Of discontinued operations, Estimated Fair Value	38,511	6,706
Financial Liabilities:
Noninterest-bearing demand Estimated Fair Value	1,224,595	1,327,183
Interest-bearing demand, Estimated Fair Value	677,900	1,000,666
Savings and money market, Estimated Fair Value	1,852,268	1,880,271
Time deposits, Estimated Fair Value	1,081,334	1,286,730
Other borrowings, Estimated Fair Value	37,077	26,025
Derivative liabilities, Estimated Fair Value	7	87
Accrued interest payable, Estimated Fair Value	59,521	48,541
Subordinated debentures, Estimated Fair Value	269,610	254,984
Liabilities Of discontinued operations, Estimated Fair Value	500,401	155,711
Off-Balance Sheet Financial Instruments:
Commitments to extend credit, standby letters of credit and financial guarantees, Estimated Fair Value	(2,715)	(2,779)
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member]
Financial Assets:
Cash and Cash Equivalents, Fair Value Disclosure	714,155	518,846
Investment securities [Abstract]
Available for sale	1,456	1,022
Held-to-maturity Securities, Estimated Fair Value	0	0
Loans held for portfolio, Estimated Fair Value	0	0
Loans Held-for-sale, Estimated Fair Value	0	0
FRB and FHLB stock, Estimated Fair Value	27,137	27,329
Derivative assets, Estimated Fair Value	0	0
Accrued interest receivable, Estimated Fair Value	17,738	18,284
Assets Of discontinued operations, Estimated Fair Value	0	0
Financial Liabilities:
Noninterest-bearing demand Estimated Fair Value	1,224,595	1,327,183
Interest-bearing demand, Estimated Fair Value	677,900	1,000,666
Savings and money market, Estimated Fair Value	1,852,268	1,880,271
Time deposits, Estimated Fair Value	0	0
Other borrowings, Estimated Fair Value	37,077	26,025
Derivative liabilities, Estimated Fair Value	0	0
Accrued interest payable, Estimated Fair Value	59,521	48,541
Subordinated debentures, Estimated Fair Value	0	0
Liabilities Of discontinued operations, Estimated Fair Value	0	0
Off-Balance Sheet Financial Instruments:
Commitments to extend credit, standby letters of credit and financial guarantees, Estimated Fair Value	0	0
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Assets:
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Investment securities [Abstract]
Available for sale	1,602,831	2,042,705
Held-to-maturity Securities, Estimated Fair Value	748,478	637,024
Loans held for portfolio, Estimated Fair Value	0	0
Loans Held-for-sale, Estimated Fair Value	28,313	66,133
FRB and FHLB stock, Estimated Fair Value	0	0
Derivative assets, Estimated Fair Value	113	1,619
Accrued interest receivable, Estimated Fair Value	0	0
Assets Of discontinued operations, Estimated Fair Value	38,511	6,706
Financial Liabilities:
Noninterest-bearing demand Estimated Fair Value	0	0
Interest-bearing demand, Estimated Fair Value	0	0
Savings and money market, Estimated Fair Value	0	0
Time deposits, Estimated Fair Value	0	0
Other borrowings, Estimated Fair Value	0	0
Derivative liabilities, Estimated Fair Value	7	87
Accrued interest payable, Estimated Fair Value	0	0
Subordinated debentures, Estimated Fair Value	0	0
Liabilities Of discontinued operations, Estimated Fair Value	500,401	155,711
Off-Balance Sheet Financial Instruments:
Commitments to extend credit, standby letters of credit and financial guarantees, Estimated Fair Value	0	0
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Assets:
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Investment securities [Abstract]
Available for sale	0	0
Held-to-maturity Securities, Estimated Fair Value	0	0
Loans held for portfolio, Estimated Fair Value	2,478,309	2,572,256
Loans Held-for-sale, Estimated Fair Value	0	0
FRB and FHLB stock, Estimated Fair Value	0	0
Derivative assets, Estimated Fair Value	0	0
Accrued interest receivable, Estimated Fair Value	0	0
Assets Of discontinued operations, Estimated Fair Value	0	0
Financial Liabilities:
Noninterest-bearing demand Estimated Fair Value	0	0
Interest-bearing demand, Estimated Fair Value	0	0
Savings and money market, Estimated Fair Value	0	0
Time deposits, Estimated Fair Value	1,081,334	1,286,730
Other borrowings, Estimated Fair Value	0	0
Derivative liabilities, Estimated Fair Value	0	0
Accrued interest payable, Estimated Fair Value	0	0
Subordinated debentures, Estimated Fair Value	269,610	254,984
Liabilities Of discontinued operations, Estimated Fair Value	0	0
Off-Balance Sheet Financial Instruments:
Commitments to extend credit, standby letters of credit and financial guarantees, Estimated Fair Value	(2,715)	(2,779)
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Financial Assets:
Cash and Cash Equivalents, Fair Value Disclosure	714,155	518,846
Investment securities [Abstract]
Available for sale	1,604,287	2,043,727
Held-to-maturity Securities, Estimated Fair Value	764,304	631,553
Loans held for portfolio, Estimated Fair Value	2,674,340	2,773,012
Loans Held-for-sale, Estimated Fair Value	28,313	66,133
FRB and FHLB stock, Estimated Fair Value	27,137	27,329
Derivative assets, Estimated Fair Value	113	1,619
Accrued interest receivable, Estimated Fair Value	17,738	18,284
Assets Of discontinued operations, Estimated Fair Value	38,511	6,706
Financial Liabilities:
Noninterest-bearing demand Estimated Fair Value	1,224,595	1,327,183
Interest-bearing demand, Estimated Fair Value	677,900	1,000,666
Savings and money market, Estimated Fair Value	1,852,268	1,880,271
Time deposits, Estimated Fair Value	1,080,659	1,284,727
Other borrowings, Estimated Fair Value	37,077	26,025
Derivative liabilities, Estimated Fair Value	7	87
Accrued interest payable, Estimated Fair Value	59,521	48,541
Subordinated debentures, Estimated Fair Value	354,191	354,133
Liabilities Of discontinued operations, Estimated Fair Value	549,155	155,711
Off-Balance Sheet Financial Instruments:
Commitments to extend credit, standby letters of credit and financial guarantees, Estimated Fair Value	$ (2,715)	$ (2,779)

XML

GOODWILL

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

Goodwill was $107.3 million and $125.3 million at September 30, 2013 and December 31, 2012, respectively. The Company allocated goodwill to the sale of the ABS line of business of $18.0 million, which is included in assets of discontinued operations at September 30, 2013. The Company allocated goodwill to the sale of the Northern Florida Region of $700,000, which was completed in April 2013 and is included in assets of discontinued operations at December 31, 2012. First Bank did not record goodwill impairment for the three or nine months ended September 30, 2013 and 2012.

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net income attributable to First Banks, Inc.	$ 22,033	$ 22,879
Net income (loss) attributable to noncontrolling interest in subsidiary	113	(229)
Less: net loss from discontinued operations, net of tax	(6,279)	(6,763)
Net income from continuing operations, net of tax	28,425	29,413
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of bank premises and equipment	8,710	9,095
Amortization and accretion of investment securities	19,692	11,471
Originations of loans held for sale	(233,259)	(325,844)
Proceeds from sales of loans held for sale	272,245	305,523
Provision for loan losses	0	2,000
(Benefit) provision for current income taxes	(248)	186
Provision for deferred income taxes	6,715	5,516
Decrease in deferred tax asset valuation allowance	(6,512)	(5,624)
Decrease in accrued interest receivable	714	1,498
Increase in accrued interest payable	10,763	8,945
Gain on loans sold and held for sale	(4,439)	(10,308)
Net gain on investment securities	(37)	(1,306)
(Increase) decrease in fair value of servicing rights	(907)	4,608
Write-downs on other real estate and repossessed assets	2,230	7,939
Other operating activities, net	4,426	9,819
Net cash provided by operating activities – continuing operations	108,518	52,931
Net cash used in operating activities – discontinued operations	(5,422)	(6,421)
Net cash provided by operating activities	103,096	46,510
Cash flows from investing activities:
Net cash paid for sale of assets and liabilities of discontinued operations, net of cash and cash equivalents sold	(115,044)	0
Proceeds from sales of investment securities available for sale	143,675	315,238
Maturities of investment securities available for sale	314,707	576,635
Maturities of investment securities held to maturity	117,859	57,531
Purchases of investment securities available for sale	(306,063)	(1,226,473)
Purchases of investment securities held to maturity	(21,473)	0
Net redemptions of Federal Reserve Bank and Federal Home Loan Bank stock	192	366
Proceeds from sales of commercial loans	7,681	20,386
Cash paid for purchase of one-to-four-family residential real estate loans	0	141,048
Net decrease in loans	43,401	272,489
Recoveries of loans previously charged-off	13,469	22,819
Purchases of bank premises and equipment	(4,882)	(4,042)
Net proceeds from sales of other real estate and repossessed assets	25,557	33,837
Other investing activities, net	3,601	216
Net cash provided by (used in) investing activities – continuing operations	222,680	(72,046)
Net cash provided by investing activities – discontinued operations	2,168	4,426
Net cash provided by (used in) investing activities	224,848	(67,620)
Cash flows from financing activities:
Increase in demand, savings and money market deposits	21,751	8,236
Decrease in time deposits	(137,152)	(183,780)
Increase (decrease) in other borrowings	11,052	(22,622)
Net cash used in financing activities – continuing operations	(104,349)	(198,166)
Net cash (used in) provided by financing activities – discontinued operations	(28,286)	36,140
Net cash used in financing activities	(132,635)	(162,026)
Net increase (decrease) in cash and cash equivalents	195,309	(183,136)
Cash and cash equivalents, beginning of period	518,846	474,158
Cash and cash equivalents, end of period	714,155	291,022
Supplemental disclosures of cash flow information:
Cash paid for interest on liabilities	7,313	14,017
Cash received for income taxes	213	458
Noncash investing and financing activities:
Reclassification of investment securities from available for sale to held to maturity	242,540	729,142
Loans transferred to other real estate and repossessed assets	$ 8,217	$ 21,788

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES - Loans Modified as TDRs (Details 6) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013 contracts	Sep. 30, 2012 contracts	Sep. 30, 2013 contracts	Sep. 30, 2012 contracts
Commercial, financial and agricultural [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts	0	1	2	1
Pre-Modification Outstanding Recorded Investment	$ 0	$ 640	$ 246	$ 640
Post-Modification Outstanding Recorded Investment	0	640	201	640
Real estate construction and development [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts	0	2	0	4
Pre-Modification Outstanding Recorded Investment	0	5,460	0	6,263
Post-Modification Outstanding Recorded Investment	0	5,280	0	5,670
One-to-four-family residential [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts	15	13	35	42
Pre-Modification Outstanding Recorded Investment	3,405	2,069	8,275	7,496
Post-Modification Outstanding Recorded Investment	3,095	2,065	7,637	7,443
Commercial real estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts	0	2	0	3
Pre-Modification Outstanding Recorded Investment	0	4,947	0	9,965
Post-Modification Outstanding Recorded Investment	$ 0	$ 4,947	$ 0	$ 9,965

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days	$ 12,930	$ 12,142
60-89 Days	5,955	8,404
Recorded Investment > 90 Days Accruing	4,740	1,090
Nonaccrual	71,133	109,872
Total Past Due	94,758	131,508
Current	2,692,172	2,799,239
Total loans	2,786,930	2,930,747
Commercial, financial and agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days	104	1,180
60-89 Days	899	322
Recorded Investment > 90 Days Accruing	0	0
Nonaccrual	11,897	19,050
Total Past Due	12,900	20,552
Current	570,639	589,749
Total loans	583,539	610,301
Real estate construction and development [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days	591	93
60-89 Days	21	0
Recorded Investment > 90 Days Accruing	0	0
Nonaccrual	7,300	32,152
Total Past Due	7,912	32,245
Current	117,421	142,734
Total loans	125,333	174,979
Bank Portfolio [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days	1,447	1,871
60-89 Days	647	1,121
Recorded Investment > 90 Days Accruing	171	874
Nonaccrual	5,893	6,910
Total Past Due	8,158	10,776
Current	88,821	111,562
Total loans	96,979	122,338
Mortgage Division Portfolio [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days	3,937	6,264
60-89 Days	3,242	4,375
Recorded Investment > 90 Days Accruing	0	0
Nonaccrual	16,772	19,780
Total Past Due	23,951	30,419
Current	460,739	479,552
Total loans	484,690	509,971
Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days	3,252	2,494
60-89 Days	698	1,221
Recorded Investment > 90 Days Accruing	334	216
Nonaccrual	6,145	8,671
Total Past Due	10,429	12,602
Current	332,291	341,856
Total loans	342,720	354,458
Multi-family residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days	0	0
60-89 Days	0	629
Recorded Investment > 90 Days Accruing	0	0
Nonaccrual	1,810	6,761
Total Past Due	1,810	7,390
Current	101,552	96,294
Total loans	103,362	103,684
Commercial real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days	3,506	66
60-89 Days	409	693
Recorded Investment > 90 Days Accruing	4,235	0
Nonaccrual	21,310	16,520
Total Past Due	29,460	17,279
Current	974,073	952,401
Total loans	1,003,533	969,680
Consumer and Installment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days	93	174
60-89 Days	39	43
Recorded Investment > 90 Days Accruing	0	0
Nonaccrual	6	28
Total Past Due	138	245
Current	18,323	18,958
Total loans	18,461	19,203
Loans Held For Sale [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days	0	0
60-89 Days	0	0
Recorded Investment > 90 Days Accruing	0	0
Nonaccrual	0	0
Total Past Due	0	0
Current	28,313	66,133
Total loans	$ 28,313	$ 66,133

XML

REGULATORY CAPITAL AND OTHER REGULATORY MATTERS (Tables)

9 Months Ended

Sep. 30, 2013

Banking and Thrift [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

At September 30, 2013 and December 31, 2012, the Company's and First Bank’s required and actual capital ratios were as follows:

											To be Well Capitalized Under Prompt Corrective Action Provisions
	Actual								For Capital Adequacy Purposes
	September 30, 2013				December 31, 2012
	Amount		Ratio		Amount		Ratio
	(dollars expressed in thousands)
Total capital (to risk-weighted assets):
First Banks, Inc.	$	114,522	3.20	%	$	93,542	2.57	%	8.0	%	N/A
First Bank	659,624		18.42		626,177		17.18		8.0		10.0	%
Tier 1 capital (to risk-weighted assets):
First Banks, Inc.	57,261		1.60		46,771		1.28		4.0		N/A
First Bank	614,332		17.15		580,026		15.92		4.0		6.0
Tier 1 capital (to average assets):
First Banks, Inc.	57,261		0.94		46,771		0.73		4.0		N/A
First Bank	614,332		10.09		580,026		9.13		4.0		5.0

XML

SUBORDINATED DEBENTURES (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013 installment trust	Sep. 30, 2012	Sep. 30, 2013 installment trust	Sep. 30, 2012	Aug. 10, 2009	Sep. 30, 2013 Regularly Scheduled Deferred Interest Payments Accrued [Member]	Dec. 31, 2012 Regularly Scheduled Deferred Interest Payments Accrued [Member]	Sep. 30, 2013 Additional Deferred Interest Payments Accrued [Member]	Dec. 31, 2012 Additional Deferred Interest Payments Accrued [Member]
Debt Instrument [Line Items]
Number Of Trusts Created For Issuing Trust Preferred Securities	13		13
Percent of Principal Amount Callable at Call Date			100.00%
Distributions Accrued On Junior Subordinated Debentures	$ 3.8	$ 3.7	$ 11.2	$ 11.1
Trust Preferred Securities Value					345.0
Number Of Quarterly Periods For Deferral Of Cash Interest Payments On Junior Subordinated Debt	17		17
Interest Payable						$ 52.9	$ 43.8	$ 6.0	$ 3.9

XML

SERVICING RIGHTS (Schedule of Servicing Assets at Fair Value (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012
Mortgage Banking [Member]
Servicing Assets at Fair Value [Line Items]
Balance, beginning of period	$ 12,341		$ 8,959		$ 9,152		$ 9,077
Originated servicing rights	942		1,329		3,059		3,322
Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model	1,160	[1]	(1,484)	[1]	3,467	[1]	(2,283)	[1]
Other changes in fair value	(593)	[2]	(616)	[2]	(1,828)	[2]	(1,928)	[2]
Balance, end of period	13,850		8,188		13,850		8,188
SBA [Member]
Servicing Assets at Fair Value [Line Items]
Balance, beginning of period	5,192		6,223		5,640		6,303
Originated servicing rights	0		0		0		0
Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model	(127)	[1]	148	[1]	(163)	[1]	437	[1]
Other changes in fair value	(157)	[2]	(465)	[2]	(569)	[2]	(834)	[2]
Balance, end of period	$ 4,908		$ 5,906		$ 4,908		$ 5,906

[1] The change in fair value resulting from changes in valuation inputs or assumptions used in valuation model primarily reflects the change in discount rates and prepayment speed assumptions, primarily due to changes in interest rates.

[2] Other changes in fair value reflect changes due to the collection/realization of expected cash flows over time.

XML

FAIR VALUE DISCLOSURES

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

FAIR VALUE DISCLOSURES

FAIRVALUEDISCLOSURES

In accordance with ASC Topic 820, “Fair Value Measurements and Disclosures,” financial assets and financial liabilities that are measured at fair value subsequent to initial recognition are grouped into three levels of inputs or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the reliability of assumptions used to determine fair value. The three input levels of the valuation hierarchy are as follows:

Level 1 Inputs – Valuation is based on quoted prices in active markets for identical instruments in active markets.

Level 2 Inputs – Valuation is based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 Inputs – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

The following describes valuation methodologies used to measure financial assets and financial liabilities at fair value, as well as the general classification of such financial instruments pursuant to the valuation hierarchy:

Available-for-sale investment securities. Available-for-sale investment securities are recorded at fair value on a recurring basis. Available-for-sale investment securities included in Level 1 are valued using quoted market prices. Where quoted market prices are unavailable, the fair value included in Level 2 is based on quoted market prices of comparable instruments obtained from independent pricing vendors based on recent trading activity and other relevant information.

Loans held for sale. Mortgage loans held for sale are carried at fair value on a recurring basis. The determination of fair value is based on quoted market prices of comparable instruments obtained from independent pricing vendors based on recent trading activity and other relevant information. Other loans held for sale are carried at the lower of cost or market value, which is determined on an individual loan basis. The fair value is based on the prices secondary markets are offering for portfolios with similar characteristics. The Company classifies mortgage loans held for sale subjected to recurring fair value adjustments as recurring Level 2. The Company classifies other loans held for sale subjected to nonrecurring fair value adjustments as nonrecurring Level 2.

Impaired loans. The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans are considered impaired when, in the judgment of management based on current information and events, it is probable that payment of all amounts due under the contractual terms of the loan agreement will not be collected. Acquired impaired loans are classified as nonaccrual loans and are initially measured at fair value with no allocated allowance for loan losses. An allowance for loan losses is recorded to the extent there is further credit deterioration subsequent to the acquisition date. In accordance with ASC Topic 820, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. Once a loan is identified as impaired, management measures the impairment in accordance with ASC Topic 310-10-35, “Receivables.” Impairment is measured by reference to an observable market price, if one exists, the expected future cash flows of an impaired loan discounted at the loan’s effective interest rate, or the fair value of the collateral for a collateral-dependent loan. In most cases, the Company measures fair value based on the value of the collateral securing the loan. Collateral may be in the form of real estate or personal property, including equipment and inventory. The vast majority of the collateral is real estate. The value of the collateral is determined based on third party appraisals as well as internal estimates. These measurements are classified as nonrecurring Level 3.

Other real estate and repossessed assets. Certain other real estate and repossessed assets, upon initial recognition, are re-measured and reported at fair value through a charge-off to the allowance for loan losses based upon the estimated fair value of the other real estate. The fair value of other real estate, upon initial recognition, is estimated using Level 3 inputs based on third party appraisals, and where applicable, discounted based on management’s judgment taking into account current market conditions, distressed or forced sale price comparisons and other factors in effect at the time of valuation. The Company classifies other real estate and repossessed assets subjected to nonrecurring fair value adjustments as Level 3.

Derivative instruments. Substantially all derivative instruments utilized by the Company are traded in over-the-counter markets where quoted market prices are not readily available. Derivative instruments utilized by the Company include interest rate swap agreements, interest rate lock commitments and forward commitments to sell mortgage-backed securities. For these derivative instruments, fair value is based on market observable inputs utilizing pricing systems and valuation models, and where applicable, the values are compared to the market values calculated independently by the respective counterparties. The Company classifies its derivative instruments as Level 2.

Servicing rights. The valuation of mortgage and SBA servicing rights is performed by an independent third party. The valuation models estimate the present value of estimated future net servicing income, using market-based discount rate assumptions, and utilize assumptions based on the predominant risk characteristics of the underlying loans, including principal balance, interest rate, weighted average life, and certain unobservable inputs, including cost to service, estimated prepayment speed rates and default rates. Changes in the fair value of servicing rights occur primarily due to the realization of expected cash flows, as well as changes in valuation inputs and assumptions. Significant increases (decreases) in any of the unobservable inputs would result in a significantly lower (higher) fair value of the servicing rights. The Company classifies its servicing rights as Level 3.

Nonqualified Deferred Compensation Plan. The Company’s nonqualified deferred compensation plan is recorded at fair value on a recurring basis. The unfunded plan allows participants to hypothetically invest in various specified investment options such as equity funds, international stock funds, capital appreciation funds, money market funds, bond funds, mid-cap value funds and growth funds. The nonqualified deferred compensation plan liability is valued based on quoted market prices of the underlying investments. The Company classifies its nonqualified deferred compensation plan liability as Level 1.

Items Measured on a Recurring Basis. Assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 are reflected in the following table:

	Fair Value Measurements
	Level 1		Level 2		Level 3	Fair Value
	(dollars expressed in thousands)
September 30, 2013:
Assets:
Available-for-sale investment securities:
U.S. Government sponsored agencies	$	—	276,034		—	276,034
Residential mortgage-backed	—		1,098,229		—	1,098,229
Commercial mortgage-backed	—		868		—	868
State and political subdivisions	—		32,261		—	32,261
Corporate notes	—		195,439		—	195,439
Equity investments	1,456		—		—	1,456
Mortgage loans held for sale	—		28,313		—	28,313
Derivative instruments:
Customer interest rate swap agreements	—		7		—	7
Interest rate lock commitments	—		743		—	743
Forward commitments to sell mortgage-backed securities	—		(637	)	—	(637	)
Servicing rights	—		—		18,758	18,758
Total	$	1,456	1,631,257		18,758	1,651,471
Liabilities:
Derivative instruments:
Customer interest rate swap agreements	$	—	7		—	7
Nonqualified deferred compensation plan	6,261		—		—	6,261
Total	$	6,261	7		—	6,268
December 31, 2012:
Assets:
Available-for-sale investment securities:
U.S. Government sponsored agencies	$	—	310,429		—	310,429
Residential mortgage-backed	—		1,534,067		—	1,534,067
Commercial mortgage-backed	—		915		—	915
State and political subdivisions	—		4,929		—	4,929
Corporate notes	—		192,365		—	192,365
Equity investments	1,022		—		—	1,022
Mortgage loans held for sale	—		66,133		—	66,133
Derivative instruments:
Customer interest rate swap agreements	—		87		—	87
Interest rate lock commitments	—		1,837		—	1,837
Forward commitments to sell mortgage-backed securities	—		(305	)	—	(305	)
Servicing rights	—		—		14,792	14,792
Total	$	1,022	2,110,457		14,792	2,126,271
Liabilities:
Derivative instruments:
Customer interest rate swap agreements	$	—	87		—	87
Nonqualified deferred compensation plan	6,443		—		—	6,443
Total	$	6,443	87		—	6,530

There were no transfers between Levels 1 and 2 of the fair value hierarchy for the three and nine months ended September 30, 2013 and 2012.

The following table presents the changes in Level 3 assets measured on a recurring basis for the three and nine months ended September 30, 2013 and 2012:

	Servicing Rights
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013	2012
	(dollars expressed in thousands)
Balance, beginning of period	$	17,533	15,182		14,792	15,380
Total gains or losses (realized/unrealized):
Included in earnings (1)	283		(2,417	)	907	(4,608	)
Included in other comprehensive income	—		—		—	—
Issuances	942		1,329		3,059	3,322
Transfers in and/or out of level 3	—		—		—	—
Balance, end of period	$	18,758	14,094		18,758	14,094

____________________

(1) Gains or losses (realized/unrealized) are included in noninterest income in the consolidated statements of operations.

Items Measured on a Nonrecurring Basis. From time to time, the Company measures certain assets at fair value on a nonrecurring basis. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis as of September 30, 2013 and December 31, 2012 are reflected in the following table:

	Fair Value Measurements
	Level 1		Level 2	Level 3	Fair Value
	(dollars expressed in thousands)
September 30, 2013:
Assets:
Impaired loans:
Commercial, financial and agricultural	$	—	—	11,436	11,436
Real estate construction and development	—		—	6,931	6,931
Real estate mortgage:
Bank portfolio	—		—	6,296	6,296
Mortgage Division portfolio	—		—	83,118	83,118
Home equity	—		—	4,916	4,916
Multi-family residential	—		—	28,721	28,721
Commercial real estate	—		—	24,578	24,578
Consumer and installment	—		—	6	6
Other real estate and repossessed assets	—		—	74,831	74,831
Total	$	—	—	240,833	240,833
December 31, 2012:
Assets:
Impaired loans:
Commercial, financial and agricultural	$	—	—	18,374	18,374
Real estate construction and development	—		—	40,731	40,731
Real estate mortgage:
Bank portfolio	—		—	8,237	8,237
Mortgage Division portfolio	—		—	86,500	86,500
Home equity	—		—	6,887	6,887
Multi-family residential	—		—	33,863	33,863
Commercial real estate	—		—	26,218	26,218
Consumer and installment	—		—	27	27
Other real estate and repossessed assets	—		—	91,995	91,995
Total	$	—	—	312,832	312,832

Non-Financial Assets and Non-Financial Liabilities. Certain non-financial assets measured at fair value on a nonrecurring basis include other real estate (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment.

Other real estate and repossessed assets measured at fair value upon initial recognition totaled$8.2 million and $21.8 million for the nine months ended September 30, 2013 and 2012, respectively. In addition to other real estate and repossessed assets measured at fair value upon initial recognition, the Company recorded write-downs to the balance of other real estate and repossessed assets of $1.4 million and $2.2 million to noninterest expense for the three and nine months ended September 30, 2013, respectively, compared to $1.7 million and $7.9 million for the comparable periods in 2012. Other real estate and repossessed assets were $74.8 million at September 30, 2013, compared to $92.0 million at December 31, 2012.

Fair Value of Financial Instruments. The fair value of financial instruments is management’s estimate of the values at which the instruments could be exchanged in a transaction between willing parties. These estimates are subjective and may vary significantly from amounts that would be realized in actual transactions. In addition, other significant assets are not considered financial assets including deferred income tax assets, bank premises and equipment and goodwill. Furthermore, the income taxes that would be incurred if the Company were to realize any of the unrealized gains or unrealized losses indicated between the estimated fair values and corresponding carrying values could have a significant effect on the fair value estimates and have not been considered in any of the estimates.

The following summarizes the methods and assumptions used in estimating the fair value of all other financial instruments:

Cash and cash equivalents and accrued interest receivable. The carrying values reported in the consolidated balance sheets approximate fair value.

Held-to-maturity investment securities. The fair value of held-to-maturity investment securities is based on quoted market prices where available. If quoted market prices are not available, the fair value is based on quoted market prices of comparable instruments. The Company classifies its held-to-maturity investment securities as Level 2.

Loans. The fair value of loans held for portfolio uses an exit price concept and reflects discounts the Company believes are consistent with liquidity discounts in the market place. Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial and industrial, real estate construction and development, commercial real estate, one-to-four-family residential real estate, home equity and consumer and installment. The fair value of loans is estimated by discounting the future cash flows, utilizing assumptions for prepayment estimates over the loans’ remaining life and considerations for the current interest rate environment compared to the weighted average rate of the loan portfolio. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those factors a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate. The Company classifies its loans held for portfolio as Level 3.

FRB and FHLB stock. The carrying values reported in the consolidated balance sheets for FRB and FHLB stock, which are carried at cost, represent redemption value and approximate fair value.

Assets of discontinued operations. The carrying values reported in the consolidated balance sheets for assets of discontinued operations approximate fair value. The Company classifies its assets of discontinued operations as Level 2.

Deposits. The fair value of deposits payable on demand with no stated maturity (i.e., noninterest-bearing and interest-bearing demand, and savings and money market accounts) is considered equal to their respective carrying amounts as reported in the consolidated balance sheets. The fair value of demand deposits does not include the benefit that results from the low-cost funding provided by deposit liabilities compared to the cost of borrowing funds in the market. The fair value disclosed for time deposits is estimated utilizing a discounted cash flow calculation that applies interest rates currently being offered on similar deposits to a schedule of aggregated monthly maturities of time deposits. If the estimated fair value is lower than the carrying value, the carrying value is reported as the fair value of time deposits. The Company classifies its time deposits as Level 3.

Other borrowings and accrued interest payable. The carrying values reported in the consolidated balance sheets for variable rate borrowings approximate fair value. The fair value of fixed rate borrowings is based on quoted market prices where available. If quoted market prices are not available, the fair value is based on discounting contractual maturities using an estimate of current market rates for similar instruments. The Company classifies its other borrowings, comprised of securities sold under agreement to repurchase, as Level 1. The carrying values reported in the consolidated balance sheets for accrued interest payable approximate fair value.

Subordinated debentures. The fair value of subordinated debentures is based on quoted market prices of comparable instruments. The Company classifies its subordinated debentures as Level 3.

Liabilities of discontinued operations. The fair value of liabilities of discontinued operations reflects the negotiated purchase price at which the liabilities could be exchanged in a transaction between willing parties, as further described in Note 2 to the consolidated financial statements. The Company classifies its liabilities of discontinued operations as Level 2.

Off-Balance Sheet Financial Instruments. The fair value of commitments to extend credit, standby letters of credit and financial guarantees is based on estimated probable credit losses. The Company classifies its off-balance sheet financial instruments as Level 3.

The estimated fair value of the Company’s financial instruments at September 30, 2013 were as follows:

	September 30, 2013
				Estimated Fair Value
	Carrying Value			Level 1	Level 2	Level 3		Total
	(dollars expressed in thousands)
Financial Assets:
Cash and cash equivalents	$	714,155		714,155	—	—		714,155
Investment securities:
Available for sale	1,604,287			1,456	1,602,831	—		1,604,287
Held to maturity	764,304			—	748,478	—		748,478
Loans held for portfolio	2,674,340			—	—	2,478,309		2,478,309
Loans held for sale	28,313			—	28,313	—		28,313
FRB and FHLB stock	27,137			27,137	—	—		27,137
Derivative instruments	113			—	113	—		113
Accrued interest receivable	17,738			17,738	—	—		17,738
Assets of discontinued operations	38,511			—	38,511	—		38,511
Financial Liabilities:
Deposits:
Noninterest-bearing demand	$	1,224,595		1,224,595	—	—		1,224,595
Interest-bearing demand	677,900			677,900	—	—		677,900
Savings and money market	1,852,268			1,852,268	—	—		1,852,268
Time deposits	1,080,659			—	—	1,081,334		1,081,334
Other borrowings	37,077			37,077	—	—		37,077
Derivative instruments	7			—	7	—		7
Accrued interest payable	59,521			59,521	—	—		59,521
Subordinated debentures	354,191			—	—	269,610		269,610
Liabilities of discontinued operations	549,155			—	500,401	—		500,401
Off-Balance Sheet Financial Instruments:
Commitments to extend credit, standby letters of credit and financial guarantees	$	(2,715	)	—	—	(2,715	)	(2,715	)

The estimated fair value of the Company’s financial instruments at December 31, 2012 were as follows:

	December 31, 2012
				Estimated Fair Value
	Carrying Value			Level 1	Level 2	Level 3		Total
	(dollars expressed in thousands)
Financial Assets:
Cash and cash equivalents	$	518,846		518,846	—	—		518,846
Investment securities:
Available for sale	2,043,727			1,022	2,042,705	—		2,043,727
Held to maturity	631,553			—	637,024	—		637,024
Loans held for portfolio	2,773,012			—	—	2,572,256		2,572,256
Loans held for sale	66,133			—	66,133	—		66,133
FRB and FHLB stock	27,329			27,329	—	—		27,329
Derivative instruments	1,619			—	1,619	—		1,619
Accrued interest receivable	18,284			18,284	—	—		18,284
Assets of discontinued operations	6,706			—	6,706	—		6,706
Financial Liabilities:
Deposits:
Noninterest-bearing demand	$	1,327,183		1,327,183	—	—		1,327,183
Interest-bearing demand	1,000,666			1,000,666	—	—		1,000,666
Savings and money market	1,880,271			1,880,271	—	—		1,880,271
Time deposits	1,284,727			—	—	1,286,730		1,286,730
Other borrowings	26,025			26,025	—	—		26,025
Derivative instruments	87			—	87	—		87
Accrued interest payable	48,541			48,541	—	—		48,541
Subordinated debentures	354,133			—	—	254,984		254,984
Liabilities of discontinued operations	155,711			—	155,711	—		155,711
Off-Balance Sheet Financial Instruments:
Commitments to extend credit, standby letters of credit and financial guarantees	$	(2,779	)	—	—	(2,779	)	(2,779	)

XML

NOTES PAYABLE AND OTHER BORROWINGS

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

NOTES PAYABLE AND OTHER BORROWINGS

NOTESPAYABLE ANDOTHERBORROWINGS

Notes Payable. On March 20, 2013, the Company entered into a Revolving Credit Note and a Stock Pledge Agreement (the Credit Agreement) with Investors of America Limited Partnership (Investors of America, LP), as further described in Note 16 to the consolidated financial statements. The agreement provides for a $5.0 million secured revolving line of credit to be utilized for general working capital needs. This borrowing arrangement, which has a maturity date of March 31, 2014 and an interest rate of LIBOR plus 300 basis points, 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.

Other Borrowings. Other borrowings were comprised solely of daily securities sold under agreement to repurchase of $37.1 million and $26.0 million at September 30, 2013 and December 31, 2012, respectively.

XML

STOCKHOLDERS' EQUITY (Details Textual) (USD $)	3 Months Ended			9 Months Ended						12 Months Ended			12 Months Ended		9 Months Ended
	Sep. 30, 2013 quarters	Mar. 31, 2013	Sep. 30, 2012	Sep. 30, 2013 class quarters	Sep. 30, 2012	Sep. 30, 2013 Preferred Class A [Member] Minimum [Member]	Sep. 30, 2013 Preferred Class A [Member] Maximum [Member]	Sep. 30, 2013 Preferred Class B [Member] Minimum [Member]	Sep. 30, 2013 Preferred Class B [Member] Maximum [Member]	Dec. 31, 2008 Preferred Class C [Member] U.S. Treasury's Troubled Asset Relief Program's Capital Purchase Program [Member]	Sep. 25, 2013 Preferred Class C [Member] U.S. Treasury's Troubled Asset Relief Program's Capital Purchase Program [Member]	Aug. 12, 2013 Preferred Class C [Member] U.S. Treasury's Troubled Asset Relief Program's Capital Purchase Program [Member]	Dec. 31, 2008 Preferred Class D [Member] U.S. Treasury's Troubled Asset Relief Program's Capital Purchase Program [Member]	Aug. 12, 2013 Preferred Class D [Member] U.S. Treasury's Troubled Asset Relief Program's Capital Purchase Program [Member]	Sep. 30, 2013 Preferred Class C D [Member]	Sep. 30, 2013 Regularly Scheduled Dividend Payments [Member] Preferred Class C D [Member]	Dec. 31, 2012 Regularly Scheduled Dividend Payments [Member] Preferred Class C D [Member]	Sep. 30, 2013 Cumulative Dividends On Unpaid Regular Dividends [Member] Preferred Class C D [Member]	Dec. 31, 2012 Cumulative Dividends On Unpaid Regular Dividends [Member] Preferred Class C D [Member]
Class of Stock [Line Items]
Number of Classes of Preferred Stock				4
Percentage Of Preferred Stock Redeemed Par Value	105.00%			105.00%
Preferred Stock, Dividend Rate, Percentage						6.00%	12.00%	7.00%	15.00%				9.00%
Percentage Of Shares Sold											4.00%	96.00%		100.00%
Preferred stock, shares issued										295,400			14,770
Preferred Stock, Liquidation Preference Per Share										$ 1,000			$ 1,000
Preferred stock, par value (in dollars per share)										$ 1.00			$ 1.00
Preferred Stock Dividend Rate Percentage One To Five Years										5.00%
Preferred Stock Dividend Rate Percentage Year Six and Thereafter										9.00%
Preferred Stock, Dividend Payment Terms										Class C Preferred Stock carries an annual dividend rate equal to 5% for the first five years and the annual dividend rate increases to 9% per annum on and after February 15, 2014, payable quarterly in arrears beginning February 15, 2009.			Class D Preferred Stock carries an annual dividend rate equal to 9%, payable quarterly in arrears beginning February 15, 2009
Preferred stock										$ 295,400,000
Discount On Preferred Stock Accreted To Retained Earnings On Level Yield Basis															17,300,000
Preferred Stock, Period of Accretion of Discount				5 years
Accretion of discount on preferred stock	919,000		893,000	2,725,000	2,660,000
Number Of Quarterly Periods For Deferral Of Cash Dividend Payments On Preferred Stock	17			17
Dividends Payable																68,400,000	56,300,000	8,400,000	5,600,000
Reclassification of investment securities from available for sale to held to maturity		242,540,000		242,540,000	729,142,000
Gross unrealized gain on reclassification of available-for-sale securities to held-to-maturity securities		5,000,000
Gross Unrealized Gain, net of taxes, on Reclassification of Available For Sale Securities to Held To Maturity Securities		2,800,000
Deferred Tax Liability Associated with Gross Unrealized Gain on Reclassification of Available For Sale Securities to Held To Maturity Securities		$ 2,200,000

XML

BUSINESS SEGMENT RESULTS

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

BUSINESS SEGMENT RESULTS

BUSINESSSEGMENTRESULTS

The Company’s business segment is First Bank. The reportable business segment is consistent with the management structure of the Company, First Bank and the internal reporting system that monitors performance. First Bank provides similar products and services in its defined geographic areas through its branch network. The products and services offered include a broad range of commercial and personal deposit products, including demand, savings, money market and time deposit accounts. In addition, First Bank markets combined basic services for various customer groups, including packaged accounts for more affluent customers, and sweep accounts, lock-box deposits and cash management products for commercial customers. First Bank also offers consumer and commercial loans. Consumer lending includes residential real estate, home equity and installment lending. Commercial lending includes commercial, financial and agricultural loans, real estate construction and development loans, commercial real estate loans and small business lending. Other financial services include mortgage banking, debit cards, brokerage services, internet banking, remote deposit, mobile banking, ATMs, telephone banking, safe deposit boxes, and trust and private banking services. The revenues generated by First Bank and its subsidiaries consist primarily of interest income generated from the loan and investment security portfolios, service charges and fees generated from deposit products and services, and fees generated by the Company’s mortgage banking and trust and private banking business units. The Company’s products and services are offered to customers primarily within its geographic areas, which include eastern Missouri, southern Illinois, southern and northern California, and Florida’s Bradenton, Palmetto and Longboat Key communities. Certain loan products are available nationwide.

The business segment results are consistent with the Company’s internal reporting system and, in all material respects, with GAAP and practices predominant in the banking industry. The business segment results are summarized as follows:

	First Bank			Corporate, Other and Intercompany Reclassifications				ConsolidatedTotals
	September 30, 2013		December 31, 2012	September 30, 2013		December 31, 2012		September 30, 2013	December 31, 2012
	(dollars expressed in thousands)
Balance sheet information:
Investment securities	$	2,368,591	2,675,280	—		—		2,368,591	2,675,280
Total loans	2,786,930		2,930,747	—		—		2,786,930	2,930,747
FRB and FHLB stock	27,137		27,329	—		—		27,137	27,329
Goodwill	107,267		125,267	—		—		107,267	125,267
Assets of discontinued operations	38,511		6,706	—		—		38,511	6,706
Total assets	6,222,567		6,495,226	14,761		13,900		6,237,328	6,509,126
Deposits	4,837,493		5,495,624	(2,071	)	(2,777	)	4,835,422	5,492,847
Other borrowings	37,077		26,025	—		—		37,077	26,025
Subordinated debentures	—		—	354,191		354,133		354,191	354,133
Liabilities of discontinued operations	549,155		155,711	—		—		549,155	155,711
Stockholders’ equity	746,716		751,252	(477,618	)	(451,293	)	269,098	299,959

	First Bank					Corporate, Other and Intercompany Reclassifications				Consolidated Totals
	Three Months Ended					Three Months Ended				Three Months Ended
	September 30,					September 30,				September 30,
	2013			2012		2013		2012		2013		2012
	(dollars expressed in thousands)
Income statement information:
Interest income	$	42,366		50,018		—		100		42,366		50,118
Interest expense	2,149			3,448		3,803		3,745		5,952		7,193
Net interest income (loss)	40,217			46,570		(3,803	)	(3,645	)	36,414		42,925
Provision for loan losses	—			—		—		—		—		—
Net interest income (loss) after provision for loan losses	40,217			46,570		(3,803	)	(3,645	)	36,414		42,925
Noninterest income	15,414			16,541		115		106		15,529		16,647
Noninterest expense	44,994			48,448		311		391		45,305		48,839
Income (loss) from continuing operations before (benefit) provision for income taxes	10,637			14,663		(3,999	)	(3,930	)	6,638		10,733
(Benefit) provision for income taxes	(64		)	666		(1	)	(804	)	(65	)	(138	)
Net income (loss) from continuing operations, net of tax	10,701			13,997		(3,998	)	(3,126	)	6,703		10,871
Loss from discontinued operations, net of tax	(881		)	(2,182	)	—		—		(881	)	(2,182	)
Net income (loss)	9,820			11,815		(3,998	)	(3,126	)	5,822		8,689
Net (loss) income attributable to noncontrolling interest in subsidiary	(38		)	216		—		—		(38	)	216
Net income (loss) attributable to First Banks, Inc.	$	9,858		11,599		(3,998	)	(3,126	)	5,860		8,473

	First Bank					Corporate, Other and Intercompany Reclassifications				Consolidated Totals
	Nine Months Ended					Nine Months Ended				Nine Months Ended
	September 30,					September 30,				September 30,
	2013			2012		2013		2012		2013		2012
	(dollars expressed in thousands)
Income statement information:
Interest income	$	130,084		153,004		—		121		130,084		153,125
Interest expense	6,866			11,853		11,210		11,109		18,076		22,962
Net interest income (loss)	123,218			141,151		(11,210	)	(10,988	)	112,008		130,163
Provision for loan losses	—			2,000		—		—		—		2,000
Net interest income (loss) after provision for loan losses	123,218			139,151		(11,210	)	(10,988	)	112,008		128,163
Noninterest income	49,529			49,239		338		287		49,867		49,526
Noninterest expense	132,882			147,098		613		1,100		133,495		148,198
Income (loss) from continuing operations before (benefit) provision for income taxes	39,865			41,292		(11,485	)	(11,801	)	28,380		29,491
(Benefit) provision for income taxes	(44		)	447		(1	)	(369	)	(45	)	78
Net income (loss) from continuing operations, net of tax	39,909			40,845		(11,484	)	(11,432	)	28,425		29,413
Loss from discontinued operations, net of tax	(6,279		)	(6,763	)	—		—		(6,279	)	(6,763	)
Net income (loss)	33,630			34,082		(11,484	)	(11,432	)	22,146		22,650
Net income (loss) attributable to noncontrolling interest in subsidiary	113			(229	)	—		—		113		(229	)
Net income (loss) attributable to First Banks, Inc.	$	33,517		34,311		(11,484	)	(11,432	)	22,033		22,879

XML

INCOME TAXES

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOMETAXES

The realization of the Company’s net deferred tax assets is based on the expectation of future taxable income and the utilization of tax planning strategies. The Company has a full valuation allowance against its net deferred tax assets at September 30, 2013 and December 31, 2012. The deferred tax asset valuation allowance was recorded in accordance with ASC Topic 740, “Income Taxes.” Under ASC Topic 740, the Company is required to assess whether it is “more likely than not” that some portion, or all, of its deferred tax assets will not be realized. Pursuant to ASC Topic 740, concluding that a deferred tax asset valuation allowance is not required is difficult when there is significant evidence which is objective and verifiable, such as the lack of recoverable taxes, excess of reversing deductible differences over reversing taxable differences and cumulative losses in recent years. If, in the future, the Company generates taxable income on a sustained basis, management may conclude the deferred tax asset valuation allowance is no longer required, which would result in the reversal of a portion, or all, of the deferred tax asset valuation allowance, which would be reflected as a benefit for income taxes in the consolidated statements of operations.

A summary of the Company’s deferred tax assets and deferred tax liabilities at September 30, 2013 and December 31, 2012 is as follows:

	September 30, 2013			December 31, 2012
	(dollars expressed in thousands)
Gross deferred tax assets	$	407,292		405,266
Valuation allowance	(391,559		)	(376,224	)
Deferred tax assets, net of valuation allowance	15,733			29,042
Deferred tax liabilities	23,166			36,182
Net deferred tax liabilities	$	(7,433	)	(7,140	)

The Company’s valuation allowance was $391.6 million and $376.2 million at September 30, 2013 and December 31, 2012, respectively. At September 30, 2013 and December 31, 2012, for federal income tax purposes, the Company had net operating loss carryforwards of approximately $612.0 million and $597.7 million, respectively. At September 30, 2013 and December 31, 2012, for state income tax purposes, the Company had net operating loss carryforwards of approximately $836.5 million and $786.4 million, respectively, and a related deferred tax asset of $70.6 million and $65.9 million, respectively.

At September 30, 2013 and December 31, 2012, the Company’s unrecognized tax benefits for uncertain tax positions, excluding interest and penalties, were $858,000 and $1.1 million, respectively. At September 30, 2013 and December 31, 2012, the total amount of unrecognized tax benefits that would affect the provision for income taxes, prior to the consideration of the deferred tax asset valuation allowance, was $566,000 and $740,000, respectively. It is the Company’s policy to separately disclose any interest or penalties arising from the application of federal or state income taxes. Interest related to unrecognized tax benefits is included in interest expense and penalties related to unrecognized tax benefits are included in noninterest expense. At September 30, 2013 and December 31, 2012, interest accrued for unrecognized tax positions was $133,000 and $116,000, respectively. The Company recorded interest expense of $11,000 and $16,000 related to unrecognized tax benefits for the three and nine months endedSeptember 30, 2013, respectively, compared to interest expense of $15,000 and $51,000 for the comparable periods in 2012. There were no penalties for uncertain tax positions accrued at September 30, 2013 and December 31, 2012, nor did the Company recognize any expense for penalties during the three and nine months endedSeptember 30, 2013 and 2012.

The Company continually evaluates the unrecognized tax benefits associated with its uncertain tax positions. It is reasonably possible that the remaining total unrecognized tax benefits as of September 30, 2013 could decrease by an additional $165,000 by December 31, 2013 as a result of the lapse of statutes of limitations or potential settlements with the federal and state taxing authorities, of which the impact to the provision for income taxes, prior to the consideration of the deferred tax asset valuation allowance, is estimated to be approximately $108,000. It is also reasonably possible that this decrease could be substantially offset by new matters arising during the same period.

The Company files consolidated and separate income tax returns in the U.S. federal jurisdiction and in various state jurisdictions. Management of the Company believes the accrual for tax liabilities is adequate for all open audit years based on its assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter. This assessment relies on estimates and assumptions. The Company’s federal income tax returns through 2008 have been examined by the IRS. Years subsequent to 2008 could contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, timing or inclusion of revenue and expenses. The Company has recorded a tax benefit only for those positions that meet the “more likely than not” standard. The Company’s current estimate of the resolution of various state examinations, none of which are in process, is reflected in accrued income taxes; however, final settlement of the examinations or changes in the Company’s estimate may result in future income tax expense or benefit.

The Company is no longer subject to U.S. federal and Illinois income tax examination for the years prior to 2009 and is no longer subject to California, Florida, Missouri and various other state income tax examination by the tax authorities for the years prior to 2008. The Company had a federal tax examination for tax years through 2008, which was closed during 2010, and a California tax examination for the 2004 and 2005 tax years, which was closed during 2008. An Illinois tax examination of the 2007 and 2008 tax years was completed during 2011 with no changes to the returns as originally filed. A California tax examination for the 2005 and 2006 tax years was completed during 2012 with no changes to the amended returns as filed. A Texas tax examination for the 2007 and 2008 tax years was completed during 2013, which resulted in minor changes to the returns as originally filed. While the statute of limitations for the 2008 and 2009 tax years has expired for the majority of the states in which the Company is subject to income tax, the Company generated net operating loss carryforwards in 2008 and 2009 which, if realized, are subject to examination in order to validate the net operating loss carryforward. Thus, while closed, the 2008 and 2009 tax years for these states is still subject to examination. The statute of limitations will expire for 2008 and 2009 when the statute of limitations expires for the year the net operating loss carryforward is realized.

XML

DOCUMENT AND ENTITY INFORMATION	9 Months Ended
	Sep. 30, 2013	Oct. 31, 2013
Entity Registrant Name	FIRST BANKS, INC
Entity Central Index Key	0000710507
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	fbspra
Entity Common Stock, Shares Outstanding		23,661
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2013
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2013

XML

EARNINGS (LOSS) PER COMMON SHARE

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER COMMON SHARE

EARNINGS(LOSS)PERCOMMONSHARE

The following is a reconciliation of basic and diluted earnings (loss) per share (EPS) for the three and nine months endedSeptember 30, 2013 and 2012:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013		2012
	(dollars in thousands, except share and per share data)
Basic:
Net income from continuing operations attributable to First Banks, Inc.	$	6,741		10,655		28,312		29,642
Preferred stock dividends declared and undeclared	(5,013		)	(4,753	)	(14,841	)	(14,070	)
Accretion of discount on preferred stock	(919		)	(893	)	(2,725	)	(2,660	)
Net income from continuing operations attributable to common stockholders	809			5,009		10,746		12,912
Net loss from discontinued operations attributable to common stockholders	(881		)	(2,182	)	(6,279	)	(6,763	)
Net (loss) income available to First Banks, Inc. common stockholders	$	(72	)	2,827		4,467		6,149
Weighted average shares of common stock outstanding	23,661			23,661		23,661		23,661
Basic earnings per common share – continuing operations	$	34.19		211.70		454.17		545.72
Basic loss per common share – discontinued operations	$	(37.23	)	(92.22	)	(265.37	)	(285.83	)
Basic (loss) earnings per common share	$	(3.04	)	119.48		188.80		259.89
Diluted:
Net income from continuing operations attributable to common stockholders	$	809		5,009		10,746		12,912
Net loss from discontinued operations attributable to common stockholders	(881		)	(2,182	)	(6,279	)	(6,763	)
Net (loss) income available to First Banks, Inc. common stockholders	(72		)	2,827		4,467		6,149
Effect of dilutive securities – Class A convertible preferred stock	—			—		—		—
Diluted (loss) income available to First Banks, Inc. common stockholders	$	(72	)	2,827		4,467		6,149
Weighted average shares of common stock outstanding	23,661			23,661		23,661		23,661
Effect of dilutive securities – Class A convertible preferred stock	—			—		—		—
Weighted average diluted shares of common stock outstanding	23,661			23,661		23,661		23,661
Diluted earnings per common share – continuing operations	$	34.19		211.70		454.17		545.72
Diluted loss per common share – discontinued operations	$	(37.23	)	(92.22	)	(265.37	)	(285.83	)
Diluted (loss) earnings per common share	$	(3.04	)	119.48		188.80		259.89

XML

DERIVATIVE INSTRUMENTS (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Customer interest rate swap agreements [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	$ 8,731	$ 12,149
Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	75,149	179,781
Not Designated as Hedging Instrument [Member] | Customer interest rate swap agreements [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	8,731	12,149
Not Designated as Hedging Instrument [Member] | Interest rate lock commitments [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Notional Amount	27,118	59,932
Not Designated as Hedging Instrument [Member] | Forward commitments to sell mortgage-backed securities [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Notional Amount	39,300	107,700
Other Assets [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	113	1,619
Other Assets [Member] | Not Designated as Hedging Instrument [Member] | Customer interest rate swap agreements [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	7	87
Other Assets [Member] | Not Designated as Hedging Instrument [Member] | Interest rate lock commitments [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	743	1,837
Other Assets [Member] | Not Designated as Hedging Instrument [Member] | Forward commitments to sell mortgage-backed securities [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	(637)	(305)
Other Liabilities [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(7)	(87)
Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Customer interest rate swap agreements [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(7)	(87)
Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Interest rate lock commitments [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	0
Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Forward commitments to sell mortgage-backed securities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ 0	$ 0

XML

SERVICING RIGHTS (Details Textual) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Mortgage Banking [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Portfolio	$ 1,320.0	$ 1,270.0
SBA [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Portfolio	$ 143.3	$ 159.6