Exhibit 99
First Banks, Inc.
St. Louis, Missouri
Contacts: Terrance M. McCarthy Lisa K. Vansickle
President and Senior Vice President and
Chief Executive Officer Chief Financial Officer
First Banks, Inc. First Banks, Inc.
(314) 592-5000 (314) 592-5000
Traded: NYSE
Symbol: FBSPrA - (First Preferred Capital Trust IV, an affiliated trust of
First Banks, Inc.)
FOR IMMEDIATE RELEASE:
First Banks, Inc. Receives Approval and Funding for
Participation in the U.S. Treasury Capital Purchase Program
St. Louis, Missouri, December 31, 2008. First Banks, Inc. ("First Banks" or
the "Company") announced today that it has received approval and funding from
the United States Department of the Treasury ("Treasury") to participate in its
Troubled Asset Relief Program Capital Purchase Program ("Capital Purchase
Program") authorized by the Emergency Economic Stabilization Act of 2008, which
authorizes the Treasury to purchase preferred stock and warrants from U.S.
financial institutions.
First Banks issued $295.4 million of senior preferred stock and a related
warrant to the Treasury pursuant to the standard Capital Purchase Program terms
and conditions for non-public companies as described and set forth in the
Securities Purchase Agreement - Standard Terms. First Banks is privately held by
the St. Louis based Dierberg family which controls all of the voting stock of
the Company through various trusts created by and for the benefit of members of
the Dierberg family. The Company intends to use the proceeds from the sale of
the preferred stock for general corporate purposes, including additional capital
to expand lending operations and strengthen its balance sheet.
Under the Capital Purchase Program, First Banks issued newly created senior
preferred stock at a five percent annual dividend rate for the first five years
and a nine percent annual dividend rate thereafter. The Treasury also received a
10-year warrant, which was immediately exercised, to purchase a separate class
of newly created senior preferred stock at a nine percent annual dividend rate.
Details of the terms of the Treasury's Capital Purchase Program may be found on
the Treasury's website at "http://treas.gov/initiatives/eesa" and in the
Company's Current Report on Form 8-K as of December 31, 2008, as filed with the
United States Securities and Exchange Commission.
Terrance M. McCarthy, President and Chief Executive Officer of First Banks,
said, "We are pleased to have completed the funding of an additional $295.4
million of capital through the U.S. Treasury's TARP Capital Purchase Program.
With the $295.4 million, along with previous capital raised through our
shareholders, we have added over $400.0 million of new capital in 2008. As a
result, we have greatly strengthened our balance sheet and are well positioned
to deploy the additional capital to pursue appropriate loan growth
opportunities, and to continue to aggressively manage the resolution of problem
assets in our loan portfolio. The significant addition of capital will allow us
to continue to pursue attractive loan opportunities within our business segments
and our mortgage loan segments, which are located in some of the largest and
robust financial markets in the nation."
First Banks was well capitalized under the regulatory framework for prompt
corrective action at September 30, 2008, with a Tier 1 capital to risk-weighted
assets ratio and a total capital to risk-weighted assets ratio of 6.97% and
10.31%, respectively. After the issuance of $295.4 million of preferred stock to
the Treasury, First Banks' Tier 1 capital to risk-weighted assets ratio and its
total capital to risk-weighted assets ratio were approximately 10.97% and
13.31%, respectively, based on risk-weighted assets as of September 30, 2008.
First Banks had assets of $10.8 billion at September 30, 2008 and currently
operates 217 branch banking offices in California, Florida, Illinois, Missouri
and Texas. Through its subsidiary bank, First Bank, the Company offers a broad
range of financial products and services to consumers, businesses and
institutions. Visit First Banks on the web at www.firstbanks.com.
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This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements include, but
are not limited to, statements about First Banks' plans, objectives, estimates
or projections with respect to our future financial condition, expected or
anticipated revenues with respect to our results of operations and our business,
expectations and intentions and other statements that are not historical facts.
Such statements are based upon the current beliefs and expectations of First
Banks' management and are subject to significant risks and uncertainties which
may cause actual results to differ materially from those contemplated in the
forward-looking statements. The following factors, among others, could cause
actual results to differ from those set forth in the forward-looking statements:
increased competition and its effect on pricing, spending, third-party
relationships and revenues; changes in interest rates and overall economic
conditions; and the risk of new and changing regulation. Additional factors
which may cause First Banks' results to differ materially from those described
in the forward-looking statements may be found in First Banks' Annual Report on
Form 10-K and subsequently filed Amendment No. 1 to the Annual Report on Form
10-K and Quarterly Reports on Form 10-Q, as filed with the Securities and
Exchange Commission ("SEC") and available at the SEC's internet site
(http://www.sec.gov). The forward-looking statements in this press release speak
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only as of the date of the press release, and First Banks does not assume any
obligation to update the forward-looking statements or to update the reasons why
actual results could differ from those contained in the forward-looking
statements.