Exhibit 99.1
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) 854-4600 (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. Announces Sale of Texas Branches
St. Louis, Missouri, August 10, 2009. First Banks, Inc. ("First Banks" or
the "Company"), the parent company of First Bank, today announced the signing of
a Purchase and Assumption Agreement (the "Agreement") providing for the sale of
certain assets and the transfer of certain liabilities of its Texas franchise to
Sterling Bank, headquartered in Houston, Texas.
Under the terms of the Agreement, Sterling Bank is to assume approximately
$500.0 million of deposits associated with First Bank's 19 Texas retail
branches, including certain commercial deposit relationships, for a premium of
6.0%, or approximately $30.0 million. Sterling Bank is also expected to purchase
in excess of $230.0 million of loans as well as certain other assets, including
premises and equipment associated with First Bank's Texas operations. The
acquired deposits and loans represent approximately 5.8% and 2.8% of First
Bank's total deposits and loans at June 30, 2009, respectively. The transaction,
which is subject to regulatory approvals and certain closing conditions, is
expected to be completed during the fourth quarter of 2009.
Terrance M. McCarthy, President and Chief Executive Officer of First Banks,
said, "We are proud of our Texas franchise that we have built throughout the
last several years. This transaction, however, will allow us the opportunity to
redeploy approximately $52.0 million of risk-based capital throughout our
California, Florida, Illinois and Missouri markets. We would like to thank our
Texas based employees for their dedication and hard work and our customers for
their loyalty since First Bank's entrance into Texas in 1994. We have thoroughly
enjoyed developing our banking relationships with our many customers and would
like to extend our sincere gratitude and appreciation to our employees and our
customers and wish them much continued success in the future. We are confident
our customers and employees will be well served by joining the Sterling Bank
organization that already has a strong presence and reputation in the Houston
and Dallas markets."
Hovde Financial, Inc. served as financial adviser to First Banks and
Sterling Bank was advised by The Carson Medlin Company.
First Banks had assets of $10.40 billion at June 30, 2009 and currently
operates 210 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, as filed with the Securities and Exchange Commission ("SEC") and
available at the SEC's internet site (http://www.sec.gov). The forward-looking
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statements in this press release speak 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.