SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
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January 22, 1997
Date of Report (Date of earliest event reported): (January 21, 1997)
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FIRST BANKS, INC.
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(Exact name of registrant as specified in its charter)
MISSOURI
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(State or other jurisdiction of incorporation)
0-20632 43-1175538
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(Commission File Number) (IRS Employer Identification No.)
135 NORTH MERAMEC AVENUE, ST. LOUIS, MISSOURI 63105
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (314) 854-4600
Not Applicable
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(Former name or former address, if changed since last report)
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Items 1-4. Not applicable
Item 5. Other Events.
On January 21, 1997, First Banks, Inc. issued a Press Release announcing
its fourth quarter and full year 1996 financial results. A copy of the Press
Release is attached hereto as Exhibit 99(a).
Item 6. Not applicable
Item 7. Financial Statements
Pro Forma Financial Statements and Exhibits.
(a)-(b) Not applicable.
(c) Exhibits Required by Item 601 of Regulation S-K:
99(a) Press Release issued by First Banks, Inc. on January 21,
1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
Dated: January 22, 1997.
FIRST BANKS, INC.
By: /s/ Allen H. Blake
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Allen H. Blake
Executive Vice President and
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
99(a) Press Release issued by First Banks, Inc. on January 21, 1997.
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First Banks, Inc.
St. Louis, Missouri
Contact: Allen Blake Traded: NASDAQ/NMS
Executive Vice President Symbol: FBNKP
& Chief Financial Officer
(314) 995-8700
FOR IMMEDIATE RELEASE:
First Banks, Inc. Announces
Fourth Quarter and Year End 1996 Results
St. Louis, Missouri, January 21, 1997. First Banks, Inc. has reported earnings
of $8.78 million for the fourth quarter of 1996 in comparison to $4.88 million
for the same period in 1995, representing an increase of 80%.
Mr. James F. Dierberg, Chairman and President of First Banks stated, "The
improved earnings for the fourth quarter of 1996 reflect the culmination of our
external growth during 1995 and 1994 and assimilation of those banking entities
into First Banks' systems and operating culture." During 1995 and 1994, First
Banks experienced substantial growth through the acquisition of twelve banks and
thrifts, providing assets of $1.96 billion and 43 banking locations. These
acquisitions, and the acquisition of Sunrise Bank of California, which was
completed on November 1, 1996, provided three locations in Missouri, 13
locations in Illinois, six locations in Texas and 24 locations in California.
Mr. Dierberg added, "While the acquisitions provided First Banks access into
several new major market areas and, accordingly, an attractive opportunity for
future growth and profitability, they also presented several immediate
challenges. The most immediate challenge being the asset quality problems of
certain acquired entities, particularly those in California. While the asset
quality problems had been identified and considered in the acquisition pricing,
these problems led to a substantial increase in the level of First Banks'
nonperforming assets and continue to require substantial dedication of
management and other resources to control." Nonperforming assets were $41.3
million and $47.1 million at December 31, 1996 and 1995, respectively. This
compares to historical levels of nonperforming assets of $22.9 million and $14.8
million at December 31, 1994 and 1993, respectively.
First Banks' return on average stockholders' equity and return on average assets
ratios for the fourth quarter of 1996 were 14.3% and .98%, respectively. This
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compares to a return on average stockholders' equity and average assets for the
nine months ended September 30, 1996 of 6.40% and .43%, respectively. Mr.
Dierberg reported, "The improved operating ratios substantiate our progress in
managing the recent growth. While improvement is apparent, much work remains in
improving the net interest income, particularly within First Banks' thrift
subsidiary, lowering the overall costs of operations, and reducing the level of
nonperforming assets."
For the year ended December 31, 1996, net income was $20.2 million, after
payment of the one-time Savings Association Insurance Fund ("SAIF") special
assessment of $8.2 million, which represented a return on average stockholders'
equity and a return on average assets of 8.4% and .57%, respectively. Excluding
the one-time SAIF special assessment, net income for the year ended December 31,
1996, would have been $25.5 million, which represents a return on average
stockholders' equity and a return on average assets of 10.6% and .72%,
respectively. This compares to net income of $24.5 million for 1995, which
represented a return on average stockholders' equity and average assets of
10.79% and .70%, respectively. In addition to the SAIF recapitalization charge
during 1996, which affected all financial institutions with deposits insured by
the SAIF, the operating results for 1996 and 1995 were adversely affected by the
loss of interest income and additional costs associated with the level of
nonperforming assets, various expenses attributable to the amalgamation of the
13 acquisitions into First Banks' systems and operating culture, and other
non-recurring items. Mr. Dierberg stated, "As a result of this one-time special
assessment, First Banks' deposit insurance cost for SAIF deposits is expected to
decrease by approximately $2.0 million for 1997 in comparison to 1996, excluding
the special assessment."
Mr. Dierberg concluded by stating, "As we begin 1997, we remain committed to the
interests of our customers and stockholders. To this end, First Banks reiterates
its unconditional guarantee that the organization is "Not For Sale" and will
continue as an independent bank for the benefit of our customers, communities,
stockholders and employees."
First Banks currently has assets of $3.7 billion and operates 126 banking
locations in Missouri, Illinois, Texas and California.
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FIRST BANKS, INC.
Condensed Consolidated Statements of Income
December 31, 1996 and 1995
(dollars expressed in thousands, except earnings per share)
(unaudited)
<TABLE>
<CAPTION>
Three months ended For the year ended
December 31, December 31,
1996 1995 1996 1995
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<S> <C> <C> <C> <C>
Interest Income.................................... $ 69,013 69,570 266,021 261,621
Interest Expense................................... 35,090 38,595 141,670 144,945
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Net interest income........................... 33,923 30,975 124,351 116,676
Provision for possible loan losses................. 2,720 1,912 11,494 10,361
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Net interest income after
provision for loan losses..................... 31,203 29,063 112,857 106,315
Noninterest income................................. 4,923 1,765 20,721 19,407
Noninterest expense................................ 24,504 24,865 105,741 91,566
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Income before provision for income
taxes and minority interest in
loss (income) of subsidiaries.............. 11,622 5,963 27,837 34,156
Provision for income taxes......................... 2,656 1,624 6,960 11,038
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Income before minority interest in loss
(income) of subsidiaries................... 8,966 4,339 20,877 23,118
Minority interest in (income)
loss of subsidiaries.......................... (187) 537 (659) 1,353
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Net income.................................... $ 8,779 4,876 20,218 24,471
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Earnings per common share:
Primary....................................... $ 308.07 142.74 612.46 791.82
Fully diluted................................. 295.74 141.31 598.54 758.66
======= ======= ====== =======
</TABLE>
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FIRST BANKS, INC.
Condensed Consolidated Balance Sheet Information
December 31, 1996 and 1995
(dollars expressed in thousands)
(unaudited)
1996 1995
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Net Loans...................................... $ 2,721,188 2,691,554
Total Assets................................... 3,689,154 3,622,962
Total Deposits................................. 3,238,567 3,183,691
Total Stockholders' Equity..................... 251,389 234,605
Reserves to Nonperforming Loans 152.27% 133.70%
Nonperforming Assets to Loans
and Foreclosed Assets..................... 1.49% 1.71%
