This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

First Banks, Inc. Announces Fourth Quarter 2012 Results

First Banks, Inc. (the “Company”) (NYSE:FBSPRA), the holding company of First Bank, today announced earnings of $3.4 million for the three months ended December 31, 2012 as compared to a net loss of $15.9 million for the three months ended December 31, 2011. For the year ended December 31, 2012, the Company recorded earnings of $26.3 million as compared to a net loss of $41.2 million for the year ended December 31, 2011. First Bank recorded earnings of $7.4 million and $41.7 million for the three months and year ended December 31, 2012, respectively, as compared to net losses of $12.3 million and $28.3 million for the three months and year ended December 31, 2011, respectively.

Terrance M. McCarthy, President and Chief Executive Officer of the Company, said, “We are very pleased to report our fourth consecutive quarter of earnings in addition to a full year of profitability. The quarterly and annual earnings performance is a direct result of our ability to significantly improve asset quality in the fourth quarter and over the course of 2012. We expect to continue to improve earnings, asset quality and capital levels in 2013.”

Key Points for the Quarter:
  • The Company did not record a provision for loan losses for the fourth quarter of 2012, primarily as a result of the decrease in nonaccrual and potential problem loans. The Company reduced its overall level of nonperforming assets by $40.1 million, or 16.6%, during the fourth quarter of 2012 and $148.3 million, or 42.3%, during the year. During the fourth quarter of 2012, the Company sold $47.7 million of special mention, potential problem and nonaccrual loans resulting in a net charge-off of $13.3 million. As a result of this loan sale and other actions, the Company has reduced its ratio of nonaccrual loans to total loans to 3.75% at December 31, 2012 from 6.71% at December 31, 2011 while maintaining an allowance for loan losses to nonaccrual loans and total loans at 83.37% and 3.13%, respectively. Certain asset quality metrics as of or for the quarterly periods are summarized in the following table:
December 31, September 30, December 31,
2012 2012 2011
(dollars expressed in thousands)
Provision for loan losses $ 17,000
Nonaccrual loans 109,872 131,595 220,251
Performing troubled debt restructurings 128,917 118,909 126,442
Other real estate and repossessed assets 91,995 110,353 129,896
Potential problem loans 116,092 183,703 233,471
Net loan charge-offs 22,600 6,025 37,014
Ratio of:
Nonaccrual loans to loans 3.75 % 4.27 6.71
Nonperforming assets to total assets 3.10 3.71 5.30
Allowance for loan losses to loans 3.13 3.71 4.19
Allowance for loan losses to nonaccrual loans 83.37 86.78 62.52
  • The Company executed a Purchase and Assumption Agreement to sell eight branches in the Tampa and St. Petersburg, Florida market area to HomeBanc National Association, headquartered in Lake Mary, Florida. This transaction is expected to be completed in the second quarter of 2013. The Company also announced plans to close three other branch offices in Florida and consolidate two branch locations in Illinois and two branch locations in California. The Company believes these transactions have the potential to improve core earnings performance during 2013 and future years.
  • Increased First Bank’s regulatory capital ratios, reflecting continued and consistent improvement in each of the regulatory capital ratios, including an increase in First Bank’s Total Capital Ratio to 17.18% at December 31, 2012, from 16.40% at September 30, 2012 and 14.98% at December 31, 2011. Regulatory capital ratios for First Bank and First Banks, Inc. are summarized in the following table:
December 31, September 30, December 31,
2012 2012 2011

First Bank:
Total Capital Ratio   17.18 % 16.40 % 14.98 %
Tier 1 Ratio 15.92 15.13 13.70
Leverage Ratio 9.13 8.96 8.19

First Banks, Inc.:
Total Capital Ratio 2.57 2.57 1.88
Tier 1 Ratio 1.28 1.29 0.94
Leverage Ratio 0.73 0.76 0.56

Net Interest Income:

Net interest income was $41.1 million for the fourth quarter of 2012, in comparison to $43.0 million for the third quarter of 2012 and $45.9 million for the fourth quarter of 2011.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.10 -0.56%
FB $118.16 0.08%
GOOG $697.75 0.29%
TSLA $213.16 -4.20%
YHOO $37.00 2.80%


Chart of I:DJI
DOW 17,690.09 +38.83 0.22%
S&P 500 2,057.30 +6.18 0.30%
NASDAQ 4,732.1250 +6.4860 0.14%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs