----

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| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE |
|---|-----------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE |
|---|------------------------------------------------------------------------------|

| 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) |

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

|                            | Shares Outstanding |
|---------------------------------|--------------------|
| Class                           | at April 30, 2010  |
|                            |               |
| Common Stock, $250.00 par value | 23,661             |

----

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First 

|       |                                                                                             | Page   |
|------------|--------------------------------------------------------------------------------------------------|--------|
|       |                                                                                             |   |
| PART I.    | FINANCIAL INFORMATION                                                                            |   |
|       |                                                                                             |   |
| Item 1.    | Financial Statements:                                                                            |   |
|       |                                                                                             |   |
|       | Consolidated Balance Sheets                                                                      | 1      |
|       |                                                                                             |   |
|       | Consolidated Statements of Operations                                                            | 2      |
|       |                                                                                             |   |
|       | Consolidated Statements of Changes in Stockholders’ Equity and Comprehensive Income (Loss) | 3      |
|       |                                                                                             |   |
|       | Consolidated Statements of Cash Flows                                                            | 4      |
|       |                                                                                             |   |
|       | Notes to Consolidated Financial Statements                                                       | 6      |
|       |                                                                                             |   |
| Item 2.    | Management’s Discussion and Analysis of Financial Condition and Results of Operations      | 36     |
|       |                                                                                             |   |
| Item 3.    | Quantitative and Qualitative Disclosures about Market Risk                                       | 65     |
|       |                                                                                             |   |
| Item 4.    | Controls and Procedures                                                                          | 65     |
|       |                                                                                             |   |
| PART II.   | OTHER INFORMATION                                                                                |   |
|       |                                                                                             |   |
| Item 1.    | Legal Proceedings                                                                                | 66     |
|       |                                                                                             |   |
| Item 6.    | Exhibits                                                                                         | 66     |
|       |                                                                                             |   |
| SIGNATURES | 67                                                                                               |

----

Table of Contents

PART 

|                                                                                                                     |   | March 31, |      |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|--------------|--------|
|                                                                                                                     |   | 2010      |      |   | 2009         |   |
| ASSETS                                                                                                                   |   |      |      |   |         |   |
| Cash and cash equivalents:                                                                                               |   |      |      |   |         |   |
| Cash and due from banks                                                                                                  |   | $         | 123,303   |   |         |   | 143,731 |   |
| Short-term investments                                                                                                   |   |      | 1,340,955 |   |         |   | 2,372,520 |   |
| Total cash and cash equivalents                                                                                          |   |      | 1,464,258 |   |         |   | 2,516,251 |   |
| Investment securities:                                                                                                   |   |      |      |   |         |   |   |   |
| Available for sale                                                                                                       |   |      | 875,444   |   |         |   | 527,332 |   |
| Held to maturity (fair value of $14,608 and $15,258, respectively)                                                       |   |      | 13,493    |   |         |   | 14,225 |   |
| Total investment securities                                                                                              |   |      | 888,937   |   |         |   | 541,557 |   |
| Loans:                                                                                                                   |   |      |      |   |         |   |   |   |
| Commercial, financial and agricultural                                                                                   |   |      | 1,536,701 |   |         |   | 1,692,922 |   |
| Real estate construction and development                                                                                 |   |      | 970,524   |   |         |   | 1,052,922 |   |
| Real estate mortgage                                                                                                     |   |      | 3,618,566 |   |         |   | 3,771,582 |   |
| Consumer and installment                                                                                                 |   |      | 47,782    |   |         |   | 56,029 |   |
| Loans held for sale                                                                                                      |   |      | 34,883    |   |         |   | 42,684 |   |
| Total loans                                                                                                              |   |      | 6,208,456 |   |         |   | 6,616,139 |   |
| Unearned discount                                                                                                        |   |      | (9,541    | )      |         |   | (7,846 | ) |
| Allowance for loan losses                                                                                                |   |      | (250,064  | )      |         |   | (266,448 | ) |
| Net loans                                                                                                                |   |      | 5,948,851 |   |         |   | 6,341,845 |   |
| Federal Reserve Bank and Federal Home Loan Bank stock, at cost                                                           |   |      | 51,950    |   |         |   | 65,076 |   |
| Bank premises and equipment, net                                                                                         |   |      | 178,050   |   |         |   | 178,302 |   |
| Goodwill and other intangible assets                                                                                     |   |      | 143,364   |   |         |   | 144,439 |   |
| Bank-owned life insurance                                                                                                |   |      | 6,640     |   |         |   | 26,372 |   |
| Deferred income taxes                                                                                                    |   |      | 25,368    |   |         |   | 24,700 |   |
| Other real estate                                                                                                        |   |      | 134,236   |   |         |   | 125,226 |   |
| Other assets                                                                                                             |   |      | 87,426    |   |         |   | 83,197 |   |
| Assets held for sale                                                                                                     |   |      | 737       |   |         |   | 16,975 |   |
| Assets of discontinued operations                                                                                        |   |      | 141,630   |   |         |   | 518,056 |   |
| Total assets                                                                                                             |   | $         | 9,071,447 |   |         |   | 10,581,996 |   |
|                                                                                                                     |   |      |      |   |         |   |   |   |
| LIABILITIES                                                                                                              |   |      |      |   |         |   |   |   |
| Deposits:                                                                                                                |   |      |      |   |         |   |   |   |
| Noninterest-bearing demand                                                                                               |   | $         | 1,212,400 |   |         |   | 1,270,276 |   |
| Interest-bearing demand                                                                                                  |   |      | 918,903   |   |         |   | 914,020 |   |
| Savings and money market                                                                                                 |   |      | 2,289,924 |   |         |   | 2,260,869 |   |
| Time deposits of $100 or more                                                                                            |   |      | 971,286   |   |         |   | 931,151 |   |
| Other time deposits                                                                                                      |   |      | 1,631,063 |   |         |   | 1,687,657 |   |
| Total deposits                                                                                                           |   |      | 7,023,576 |   |         |   | 7,063,973 |   |
| Other borrowings                                                                                                         |   |      | 567,013   |   |         |   | 767,494 |   |
| Subordinated debentures                                                                                                  |   |      | 353,924   |   |         |   | 353,905 |   |
| Deferred income taxes                                                                                                    |   |      | 33,240    |   |         |   | 32,572 |   |
| Accrued expenses and other liabilities                                                                                   |   |      | 102,166   |   |         |   | 87,027 |   |
| Liabilities held for sale                                                                                                |   |      | —   |   |         |   | 24,381 |   |
| Liabilities of discontinued operations                                                                                   |   |      | 499,377   |   |         |   | 1,730,264 |   |
| Total liabilities                                                                                                        |   |      | 8,579,296 |   |         |   | 10,059,616 |   |
|                                                                                                                     |   |      |      |   |         |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                                               |   |      |      |   |         |   |   |   |
| First Banks, Inc. stockholders’ equity:                                                                            |   |      |      |   |         |   |   |   |
| Preferred stock:                                                                                                         |   |      |      |   |         |   |   |   |
| $1.00 par value, 4,689,830 shares authorized, no shares issued and outstanding                                           |   |      | —   |   |         |   | — |   |
| 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            |   |      | 282,189   |   |         |   | 281,356 |   |
| 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 earnings                                                                                                        |   |      | 58,708    |   |         |   | 91,271 |   |
| Accumulated other comprehensive loss                                                                                     |   |      | (526      | )      |         |   | (2,464 | ) |
| Total First Banks, Inc. stockholders’ equity                                                                       |   |      | 389,172   |   |         |   | 418,964 |   |
| Noncontrolling interest in subsidiaries                                                                                  |   |      | 102,979   |   |         |   | 103,416 |   |
| Total stockholders’ equity                                                                                         |   |      | 492,151   |   |         |   | 522,380 |   |
| Total liabilities and stockholders’ equity                                                                         |   | $         | 9,071,447 |   |         |   | 10,581,996 |   |

----

Table of Contents

First 

|                                                                         |   | Three Months Ended |      |
|------------------------------------------------------------------------------|--------|--------------------|-----------|
|                                                                         |   | March 31,          |      |
|                                                                         |   | 2010               |      |   | 2009 |   |
| Interest income:                                                             |   |               |      |   |   |   |
| Interest and fees on loans                                                   |   | $                  | 81,070    |   |   |   | 101,430 |   |
| Investment securities                                                        |   |               | 5,204     |   |   |   | 7,076 |   |
| FHLB and Federal Reserve Bank stock                                          |   |               | 583       |   |   |   | 401 |   |
| Short-term investments                                                       |   |               | 1,220     |   |   |   | 510 |   |
| Total interest income                                                        |   |               | 88,077    |   |   |   | 109,417 |   |
| Interest expense:                                                            |   |               |      |   |   |   |   |   |
| Deposits:                                                                    |   |               |      |   |   |   |   |   |
| Interest-bearing demand                                                      |   |               | 386       |   |   |   | 383 |   |
| Savings and money market                                                     |   |               | 4,215     |   |   |   | 8,083 |   |
| Time deposits of $100 or more                                                |   |               | 4,618     |   |   |   | 7,686 |   |
| Other time deposits                                                          |   |               | 8,267     |   |   |   | 14,760 |   |
| Other borrowings                                                             |   |               | 3,388     |   |   |   | 2,334 |   |
| Notes payable                                                                |   |               | —   |   |   |   | 19 |   |
| Subordinated debentures                                                      |   |               | 3,100     |   |   |   | 4,506 |   |
| Total interest expense                                                       |   |               | 23,974    |   |   |   | 37,771 |   |
| Net interest income                                                          |   |               | 64,103    |   |   |   | 71,646 |   |
| Provision for loan losses                                                    |   |               | 42,000    |   |   |   | 108,000 |   |
| Net interest income (loss) after provision for loan losses                   |   |               | 22,103    |   |   |   | (36,354 | ) |
| Noninterest income:                                                          |   |               |      |   |   |   |   |   |
| Service charges on deposit accounts and customer service fees                |   |               | 10,993    |   |   |   | 10,946 |   |
| Gain on loans sold and held for sale                                         |   |               | 920       |   |   |   | 4,113 |   |
| Net gain on investment securities                                            |   |               | —   |   |   |   | 532 |   |
| Bank-owned life insurance investment income                                  |   |               | 50        |   |   |   | 366 |   |
| Net (loss) gain on derivative instruments                                    |   |               | (1,327    | ) |   |   | 401 |   |
| Decrease in fair value of servicing rights                                   |   |               | (749      | ) |   |   | (1,985 | ) |
| Loan servicing fees                                                          |   |               | 2,262     |   |   |   | 2,180 |   |
| Other                                                                        |   |               | 4,040     |   |   |   | 3,750 |   |
| Total noninterest income                                                     |   |               | 16,189    |   |   |   | 20,303 |   |
| Noninterest expense:                                                         |   |               |      |   |   |   |   |   |
| Salaries and employee benefits                                               |   |               | 23,022    |   |   |   | 24,412 |   |
| Occupancy, net of rental income                                              |   |               | 7,555     |   |   |   | 7,304 |   |
| Furniture and equipment                                                      |   |               | 3,923     |   |   |   | 4,267 |   |
| Postage, printing and supplies                                               |   |               | 1,148     |   |   |   | 1,173 |   |
| Information technology fees                                                  |   |               | 7,373     |   |   |   | 8,207 |   |
| Legal, examination and professional fees                                     |   |               | 3,475     |   |   |   | 3,081 |   |
| Amortization of intangible assets                                            |   |               | 1,075     |   |   |   | 1,141 |   |
| Advertising and business development                                         |   |               | 430       |   |   |   | 767 |   |
| FDIC insurance                                                               |   |               | 5,455     |   |   |   | 3,388 |   |
| Write-downs and expenses on other real estate                                |   |               | 7,907     |   |   |   | 4,519 |   |
| Other                                                                        |   |               | 7,073     |   |   |   | 6,093 |   |
| Total noninterest expense                                                    |   |               | 68,436    |   |   |   | 64,352 |   |
| Loss from continuing operations, before provision (benefit) for income taxes |   |               | (30,144   | ) |   |   | (80,403 | ) |
| Provision (benefit) for income taxes                                         |   |               | 105       |   |   |   | (543 | ) |
| Net loss from continuing operations, net of tax                              |   |               | (30,249   | ) |   |   | (79,860 | ) |
| Income (loss) from discontinued operations, net of tax                       |   |               | 2,243     |   |   |   | (11,540 | ) |
| Net loss                                                                     |   |               | (28,006   | ) |   |   | (91,400 | ) |
| Less: net loss attributable to noncontrolling interest in subsidiaries       |   |               | (437      | ) |   |   | (1,994 | ) |
| Net loss attributable to First Banks, Inc.                                   |   | $                  | (27,569   | ) |   | $ | (89,406 | ) |
| Preferred stock dividends declared and undeclared                            |   |               | 4,161     |   |   |   | 4,221 |   |
| Accretion of discount on preferred stock                                     |   |               | 833       |   |   |   | 813 |   |
| Net loss available to common stockholders                                    |   | $                  | (32,563   | ) |   |   | (94,440 | ) |
|                                                                         |   |               |      |   |   |   |   |   |
| Basic loss per common share from continuing operations                       |   | $                  | (1,471.05 | ) |   |   | (3,503.67 | ) |
| Basic earnings (loss) per common share from discontinued operations          |   | $                  | 94.79     |   |   |   | (487.73 | ) |
| Basic loss per common share                                                  |   | $                  | (1,376.26 | ) |   |   | (3,991.40 | ) |
|                                                                         |   |               |      |   |   |   |   |   |
| Diluted loss per common share from continuing operations                     |   | $                  | (1,471.05 | ) |   |   | (3,503.67 | ) |
| Diluted earnings (loss) per common share from discontinued operations        |   | $                  | 94.79     |   |   |   | (487.73 | ) |
| Diluted loss per common share                                                |   | $                  | (1,376.26 | ) |   |   | (3,991.40 | ) |
|                                                                         |   |               |      |   |   |   |   |   |
| Weighted average shares of common stock outstanding                          |   |               | 23,661    |   |   |   | 23,661 |   |

----

Table of Contents

First Banks, Inc.

|                                                                                         |   | First Banks, Inc. Stockholders’ Equity |    |   |        |   |    |                     |   |
|----------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|--------|-------------|--------|---------|--------------------------|--------|
|                                                                                         |   | PreferredStock                               |    |   | CommonStock |   |    | AdditionalPaid-InCapital |   |   | RetainedEarnings |   |   | Accu-mulated OtherCompre-hensive Income(Loss) |   |   | Non-Controlling Interest |   |   | Total Stock-holders’ Equity |   |
|                                                                                         |   |                                         |    |   |        |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                                                   |   | $                                            | 308,463 |   |        |   | 5,915   |                     |   |   | 9,685 |   |   |   | 536,714 |   |   |   | 6,195 |   |   |   | 129,383 |   |   |   | 996,355 |   |
| Comprehensive loss:                                                                          |   |                                         |    |   |        |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                     |   |                                         | — |   |        |   | — |                     |   |   | — |   |   |   | (427,621 | ) |   |   | — |   |   |   | (21,315 | ) |   |   | (448,936 | ) |
| Other comprehensive income (loss):                                                           |   |                                         |    |   |        |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gains on investment securities, net of tax                                        |   |                                         | — |   |        |   | — |                     |   |   | — |   |   |   | — |   |   |   | 5,874 |   |   |   | — |   |   |   | 5,874 |   |
| Reclassification adjustment for investment securities gains included in net loss, net of tax |   |                                         | — |   |        |   | — |                     |   |   | — |   |   |   | — |   |   |   | (5,004 | ) |   |   | — |   |   |   | (5,004 | ) |
| Change in unrealized gains on derivative instruments, net of tax                             |   |                                         | — |   |        |   | — |                     |   |   | — |   |   |   | — |   |   |   | (5,755 | ) |   |   | — |   |   |   | (5,755 | ) |
| Pension liability adjustment, net of tax                                                     |   |                                         | — |   |        |   | — |                     |   |   | — |   |   |   | — |   |   |   | (664 | ) |   |   | — |   |   |   | (664 | ) |
| Reclassification adjustments for deferred tax asset valuation allowance                      |   |                                         | — |   |        |   | — |                     |   |   | — |   |   |   | — |   |   |   | (3,110 | ) |   |   | — |   |   |   | (3,110 | ) |
| Total comprehensive loss                                                                     |   |                                         |    |   |        |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (457,595 | ) |
| Purchase of noncontrolling interest in SBLS LLC                                              |   |                                         | — |   |        |   | — |                     |   |   | 2,795 |   |   |   | — |   |   |   | — |   |   |   | (4,652 | ) |   |   | (1,857 | ) |
| Accretion of discount on preferred stock                                                     |   |                                         | 3,299   |   |        |   | — |                     |   |   | — |   |   |   | (3,299 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
| Preferred stock dividends declared                                                           |   |                                         | — |   |        |   | — |                     |   |   | — |   |   |   | (14,523 | ) |   |   | — |   |   |   | — |   |   |   | (14,523 | ) |
| Balance, December 31, 2009                                                                   |   |                                         | 311,762 |   |        |   | 5,915   |                     |   |   | 12,480 |   |   |   | 91,271 |   |   |   | (2,464 | ) |   |   | 103,416 |   |   |   | 522,380 |   |
| Comprehensive loss:                                                                          |   |                                         |    |   |        |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                     |   |                                         | — |   |        |   | — |                     |   |   | — |   |   |   | (27,569 | ) |   |   | — |   |   |   | (437 | ) |   |   | (28,006 | ) |
| Other comprehensive income (loss):                                                           |   |                                         |    |   |        |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gains on investment securities, net of tax                                        |   |                                         | — |   |        |   | — |                     |   |   | — |   |   |   | — |   |   |   | 2,486 |   |   |   | — |   |   |   | 2,486 |   |
| Change in unrealized gains on derivative instruments,                                        |   |                                         |    |   |        |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net of tax                                                                                   |   |                                         | — |   |        |   | — |                     |   |   | — |   |   |   | — |   |   |   | (1,245 | ) |   |   | — |   |   |   | (1,245 | ) |
| Pension liability adjustment, net of tax                                                     |   |                                         | — |   |        |   | — |                     |   |   | — |   |   |   | — |   |   |   | 64 |   |   |   | — |   |   |   | 64 |   |
| Reclassification adjustments for deferred tax asset valuation allowance                      |   |                                         | — |   |        |   | — |                     |   |   | — |   |   |   | — |   |   |   | 633 |   |   |   | — |   |   |   | 633 |   |
| Total comprehensive loss                                                                     |   |                                         |    |   |        |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (26,068 | ) |
| Accretion of discount on preferred stock                                                     |   |                                         | 833     |   |        |   | — |                     |   |   | — |   |   |   | (833 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
| Preferred stock dividends declared                                                           |   |                                         | — |   |        |   | — |                     |   |   | — |   |   |   | (4,161 | ) |   |   | — |   |   |   | — |   |   |   | (4,161 | ) |
| Balance, March 31, 2010                                                                      |   | $                                            | 312,595 |   |        |   | 5,915   |                     |   |   | 12,480 |   |   |   | 58,708 |   |   |   | (526 | ) |   |   | 102,979 |   |   |   | 492,151 |   |

----

Table of Contents

First 

|                                                                                                               |   | Three Months Ended |     |
|--------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                                               |   | March 31,          |     |
|                                                                                                               |   | 2010               |     |   | 2009 |   |
| Cash flows from operating activities:                                                                              |   |               |     |   |   |   |
| Net loss attributable to First Banks, Inc.                                                                         |   | $                  | (27,569  | ) |   |   | (89,406 | ) |
| Net loss attributable to noncontrolling interest in subsidiaries                                                   |   |               | (437     | ) |   |   | (1,994 | ) |
| Less:  net (loss) income from discontinued operations                                                    |   |               | (2,243   | ) |   |   | 11,540 |   |
| Net loss from continuing operations                                                                                |   |               | (25,763  | ) |   |   | (102,940 | ) |
|                                                                                                               |   |               |     |   |   |   |   |   |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                          |   |               |     |   |   |   |   |   |
| Depreciation and amortization of bank premises and equipment                                                       |   |               | 4,888    |   |   |   | 4,821 |   |
| Amortization of intangible assets                                                                                  |   |               | 1,075    |   |   |   | 1,141 |   |
| Originations of loans held for sale                                                                                |   |               | (61,575  | ) |   |   | (172,242 | ) |
| Proceeds from sales of loans held for sale                                                                         |   |               | 70,767   |   |   |   | 107,867 |   |
| Payments received on loans held for sale                                                                           |   |               | 299      |   |   |   | 635 |   |
| Provision for loan losses                                                                                          |   |               | 42,000   |   |   |   | 108,000 |   |
| Provision (benefit) for current income taxes                                                                       |   |               | 105      |   |   |   | (17,515 | ) |
| Benefit for deferred income taxes                                                                                  |   |               | (2,356   | ) |   |   | (20,623 | ) |
| Increase in deferred tax asset valuation allowance                                                                 |   |               | 2,356    |   |   |   | 37,595 |   |
| (Increase) decrease in accrued interest receivable                                                                 |   |               | (788     | ) |   |   | 1,615 |   |
| Increase (decrease) in accrued interest payable                                                                    |   |               | 808      |   |   |   | (1,756 | ) |
| Gain on loans sold and held for sale                                                                               |   |               | (920     | ) |   |   | (4,113 | ) |
| Net gain on investment securities                                                                                  |   |               | —  |   |   |   | (532 | ) |
| Net loss (gain) on derivative instruments                                                                          |   |               | 1,327    |   |   |   | (401 | ) |
| Decrease in fair value of servicing rights                                                                         |   |               | 749      |   |   |   | 1,985 |   |
| Write-downs on other real estate                                                                                   |   |               | 4,456    |   |   |   | 613 |   |
| Other operating activities, net                                                                                    |   |               | (15,980  | ) |   |   | (2,756 | ) |
| Net cash provided by (used in) operating activities – continuing operations                                  |   |               | 21,448   |   |   |   | (58,606 | ) |
| Net cash used in operating activities – discontinued operations                                              |   |               | (2,382   | ) |   |   | (14,306 | ) |
| Net cash provided by (used in) operating activities                                                                |   |               | 23,830   |   |   |   | (44,300 | ) |
|                                                                                                               |   |               |     |   |   |   |   |   |
| Cash flows from investing activities:                                                                              |   |               |     |   |   |   |   |   |
| Cash paid for sale of branches, net of cash and cash equivalents sold                                              |   |               | (8,408   | ) |   |   | — |   |
| Net cash paid for sale of assets and liabilities of discontinued operations, net of cash and cash equivalents sold |   |               | (834,841 | ) |   |   | — |   |
| Proceeds from sales of investment securities available for sale                                                    |   |               | —  |   |   |   | 20,616 |   |
| Maturities of investment securities available for sale                                                             |   |               | 47,006   |   |   |   | 39,528 |   |
| Maturities of investment securities held to maturity                                                               |   |               | 728      |   |   |   | 944 |   |
| Purchases of investment securities available for sale                                                              |   |               | (381,550 | ) |   |   | (119,327 | ) |
| Redemptions of FHLB and Federal Reserve Bank stock                                                                 |   |               | 13,239   |   |   |   | 178 |   |
| Purchases of FHLB and Federal Reserve Bank stock                                                                   |   |               | (113     | ) |   |   | (5,917 | ) |
| Proceeds from sales of commercial loans held for sale                                                              |   |               | 20,210   |   |   |   | — |   |
| Net decrease in loans                                                                                              |   |               | 252,144  |   |   |   | 132,557 |   |
| Recoveries of loans previously charged-off                                                                         |   |               | 30,255   |   |   |   | 3,151 |   |
| Purchases of bank premises and equipment                                                                           |   |               | (1,405   | ) |   |   | (9,161 | ) |
| Net proceeds from sales of other real estate owned                                                                 |   |               | 20,060   |   |   |   | 9,366 |   |
| Proceeds from termination of BOLI                                                                                  |   |               | 19,247   |   |   |   | — |   |
| Other investing activities, net                                                                                    |   |               | 441      |   |   |   | 781 |   |
| Net cash (used in) provided by investing activities – continuing operations                                  |   |               | (822,987 | ) |   |   | 72,716 |   |
| Net cash (used in) provided by investing activities – discontinued operations                                |   |               | (17,248  | ) |   |   | 33,462 |   |
| Net cash (used in) provided by investing activities                                                                |   |               | (805,739 | ) |   |   | 39,254 |   |

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|                                                                      |   | Three Months Ended |       |
|---------------------------------------------------------------------------|--------|--------------------|------------|
|                                                                      |   | March 31,          |       |
|                                                                      |   | 2010               |       |   | 2009 |   |
| Cash flows from financing activities:                                     |   |               |       |   |   |   |
| (Decrease) increase in demand, savings and money market deposits          |   |               | (24,491    | ) |   |   | 101,255 |   |
| Decrease in time deposits                                                 |   |               | (16,542    | ) |   |   | (138,490 | ) |
| Repayments of Federal Reserve Bank advances                               |   |               | —    |   |   |   | (100,000 | ) |
| Repayments of Federal Home Loan Bank advances                             |   |               | (200,000   | ) |   |   | (200,017 | ) |
| Decrease in securities sold under agreements to repurchase                |   |               | (481       | ) |   |   | (18,686 | ) |
| Payment of preferred stock dividends                                      |   |               | —    |   |   |   | (2,208 | ) |
| Net cash used in financing activities – continuing operations       |   |               | (241,514   | ) |   |   | (358,146 | ) |
| Net cash provided by financing activities – discontinued operations |   |               | 28,570     |   |   |   | 54,841 |   |
| Net cash used in financing activities                                     |   |               | (270,084   | ) |   |   | (412,987 | ) |
| Net decrease in cash and cash equivalents                                 |   |               | (1,051,993 | ) |   |   | (418,033 | ) |
| Cash and cash equivalents, beginning of period                            |   |               | 2,516,251  |   |   |   | 842,316 |   |
| Cash and cash equivalents, end of period                                  |   |               | 1,464,258  |   |   |   | 424,283 |   |
|                                                                      |   |               |       |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                        |   |               |       |   |   |   |   |   |
| Cash paid (received) during the period for:                               |   |               |       |   |   |   |   |   |
| Interest on liabilities                                                   |   | $                  | 23,166     |   |   |   | 39,527 |   |
| Income taxes                                                              |   |               | 15         |   |   |   | (25 | ) |
| Noncash investing and financing activities:                               |   |               |       |   |   |   |   |   |
| Loans transferred to other real estate                                    |   | $                  | 33,692     |   |   |   | 65,295 |   |

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|                                               |   | March 31, 2010 |    |   | December 31, 2009                |   |
|----------------------------------------------------|--------|----------------|---------|--------|----------------------------------|--------|
|                                               |   | Texas          |    |   | Chicago                          |   |   | Texas |   |   | WIUS |   |   | Total |   |
|                                               |   |           |    |   | (dollars expressed in thousands) |   |
|                                               |   |           |    |   |                             |   |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                            |   | $              | 5,123   |   |                             |   | 3,759 |   |   |   | 5,131 |   |   |   | — |   |   |   | 8,890 |   |
| Loans:                                             |   |           |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, financial and agricultural             |   |           | 43,168  |   |                             |   | 77,574 |   |   |   | 57,075 |   |   |   | 1,502 |   |   |   | 136,151 |   |
| Real estate construction and development           |   |           | 3,757   |   |                             |   | — |   |   |   | 4,352 |   |   |   | — |   |   |   | 4,352 |   |
| Residential real estate                            |   |           | 9,878   |   |                             |   | 36,594 |   |   |   | 4,264 |   |   |   | — |   |   |   | 40,858 |   |
| Multi-family residential                           |   |           | 1,060   |   |                             |   | 5,497 |   |   |   | 1,065 |   |   |   | — |   |   |   | 6,562 |   |
| Commercial real estate                             |   |           | 37,694  |   |                             |   | 188,978 |   |   |   | 36,029 |   |   |   | — |   |   |   | 225,007 |   |
| Consumer and installment, net of unearned discount |   |           | 2,553   |   |                             |   | 2,700 |   |   |   | 615 |   |   |   | — |   |   |   | 3,315 |   |
| Total loans                                        |   |           | 98,110  |   |                             |   | 311,343 |   |   |   | 103,400 |   |   |   | 1,502 |   |   |   | 416,245 |   |
| Bank premises and equipment, net                   |   |           | 18,154  |   |                             |   | 26,497 |   |   |   | 18,534 |   |   |   | — |   |   |   | 45,031 |   |
| Goodwill and other intangible assets               |   |           | 19,962  |   |                             |   | 26,273 |   |   |   | 19,962 |   |   |   | — |   |   |   | 46,235 |   |
| Other assets                                       |   |           | 281     |   |                             |   | 947 |   |   |   | 708 |   |   |   | — |   |   |   | 1,655 |   |
| Assets of discontinued operations                  |   | $              | 141,630 |   |                             |   | 368,819 |   |   |   | 147,735 |   |   |   | 1,502 |   |   |   | 518,056 |   |
| Deposits:                                          |   |           |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand                         |   | $              | 76,832  |   |                             |   | 92,513 |   |   |   | 87,064 |   |   |   | — |   |   |   | 179,577 |   |
| Interest-bearing demand                            |   |           | 60,398  |   |                             |   | 47,778 |   |   |   | 50,508 |   |   |   | — |   |   |   | 98,286 |   |
| Savings and money market                           |   |           | 159,807 |   |                             |   | 387,941 |   |   |   | 167,783 |   |   |   | — |   |   |   | 555,724 |   |
| Time deposits of $100 or more                      |   |           | 98,873  |   |                             |   | 225,635 |   |   |   | 91,779 |   |   |   | — |   |   |   | 317,414 |   |
| Other time deposits                                |   |           | 99,213  |   |                             |   | 465,541 |   |   |   | 100,661 |   |   |   | — |   |   |   | 566,202 |   |
| Total deposits                                     |   |           | 495,123 |   |                             |   | 1,219,408 |   |   |   | 497,795 |   |   |   | — |   |   |   | 1,717,203 |   |
| Other borrowings                                   |   |           | 3,778   |   |                             |   | 2,605 |   |   |   | 6,942 |   |   |   | — |   |   |   | 9,547 |   |
| Accrued expenses and other liabilities             |   |           | 476     |   |                             |   | 2,589 |   |   |   | 925 |   |   |   | — |   |   |   | 3,514 |   |
| Liabilities of discontinued operations             |   | $              | 499,377 |   |                             |   | 1,224,602 |   |   |   | 505,662 |   |   |   | — |   |   |   | 1,730,264 |   |

|                                                       |   | Chicago                          |    |   | Texas  |   |    | WIUS   |   |   | MVP     |   |   | ANB    |    |   | Total  |   |
|------------------------------------------------------------|--------|----------------------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|
|                                                       |   | (dollars expressed in thousands) |    |
| Interest income:                                           |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |
| Interest and fees on loans                                 |   | $                                | 2,391   |   |   |   | 1,363   |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3,754 |   |
| Total interest income                                      |   |                             | 2,391   |   |   |   | 1,363   |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3,754 |   |
| Interest expense:                                          |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                       |   |                             | 2,550   |   |   |   | 1,366   |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3,916 |   |
| Other borrowings                                           |   |                             | — |   |   |   | 3       |   |   |   | 4       |   |   |   | — |   |   |   | — |   |   |   | 7 |   |
| Total interest expense                                     |   |                             | 2,550   |   |   |   | 1,369   |   |   |   | 4       |   |   |   | — |   |   |   | — |   |   |   | 3,923 |   |
| Net interest loss                                          |   |                             | (159    | )      |   |   | (6      | )      |   |   | (4      | )      |   |   | — |   |   |   | — |   |   |   | (169 | ) |
| Provision for loan losses                                  |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net interest loss after provision for loan losses          |   |                             | (159    | )      |   |   | (6      | )      |   |   | (4      | )      |   |   | — |   |   |   | — |   |   |   | (169 | ) |
| Noninterest income:                                        |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Service charges and customer service fees                  |   |                             | 523     |   |   |   | 900     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,423 |   |
| Investment management income                               |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | 689     |   |   |   | — |   |   |   | 689 |   |
| Loan servicing fees                                        |   |                             | — |   |   |   | 62      |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 62 |   |
| Other                                                      |   |                             | 254     |   |   |   | 15      |   |   |   | — |   |   |   | (1      | )      |   |   | — |   |   |   | 268 |   |
| Total noninterest income                                   |   |                             | 777     |   |   |   | 977     |   |   |   | — |   |   |   | 688     |   |   |   | — |   |   |   | 2,442 |   |
| Noninterest expense:                                       |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                             |   |                             | 2,137   |   |   |   | 1,837   |   |   |   | 32      |   |   |   | 421     |   |   |   | — |   |   |   | 4,427 |   |
| Occupancy, net of rental income                            |   |                             | 606     |   |   |   | 971     |   |   |   | — |   |   |   | 51      |   |   |   | — |   |   |   | 1,628 |   |
| Furniture and equipment                                    |   |                             | 178     |   |   |   | 233     |   |   |   | — |   |   |   | 13      |   |   |   | — |   |   |   | 424 |   |
| Legal, examination and professional fees                   |   |                             | 123     |   |   |   | 56      |   |   |   | 5       |   |   |   | 81      |   |   |   | — |   |   |   | 265 |   |
| FDIC insurance                                             |   |                             | 292     |   |   |   | 352     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 644 |   |
| Other                                                      |   |                             | 424     |   |   |   | 519     |   |   |   | 29      |   |   |   | 22      |   |   |   | — |   |   |   | 994 |   |
| Total noninterest expense                                  |   |                             | 3,760   |   |   |   | 3,968   |   |   |   | 66      |   |   |   | 588     |   |   |   | — |   |   |   | 8,382 |   |
| (Loss) income from operations of discontinued operations   |   |                             | (3,142  | )      |   |   | (2,997  | )      |   |   | (70     | )      |   |   | 100     |   |   |   | — |   |   |   | (6,109 | ) |
| Net gain (loss) on sale of discontinued operations         |   |                             | 8,440   |   |   |   | — |   |   |   | (88     | )      |   |   | — |   |   |   | — |   |   |   | 8,352 |   |
| Provision for income taxes                                 |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net income (loss) from discontinued operations, net of tax |   | $                                | 5,298   |   |   |   | (2,997  | )      |   |   | (158    | )      |   |   | 100     |   |   |   | — |   |   |   | 2,243 |   |

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|                                                       |   | Chicago                          |    |   | Texas  |   |    | WIUS   |   |   | MVP     |   |   | ANB    |    |   | Total  |   |
|------------------------------------------------------------|--------|----------------------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|
|                                                       |   | (dollars expressed in thousands) |    |
| Interest income:                                           |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |
| Interest and fees on loans                                 |   | $                                | 3,804   |   |   |   | 1,252   |   |   |   | 5,066   |   |   |   | — |   |   |   | — |   |   |   | 10,122 |   |
| Total interest income                                      |   |                             | 3,804   |   |   |   | 1,252   |   |   |   | 5,066   |   |   |   | — |   |   |   | — |   |   |   | 10,122 |   |
| Interest expense:                                          |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                       |   |                             | 7,966   |   |   |   | 2,359   |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 10,325 |   |
| Other borrowings                                           |   |                             | 1       |   |   |   | 2       |   |   |   | 4       |   |   |   | — |   |   |   | — |   |   |   | 7 |   |
| Total interest expense                                     |   |                             | 7,967   |   |   |   | 2,361   |   |   |   | 4       |   |   |   | — |   |   |   | — |   |   |   | 10,332 |   |
| Net interest (loss) income                                 |   |                             | (4,163  | )      |   |   | (1,109  | )      |   |   | 5,062   |   |   |   | — |   |   |   | — |   |   |   | (210 | ) |
| Provision for loan losses                                  |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net interest (loss) income after provision for loan losses |   |                             | (4,163  | )      |   |   | (1,109  | )      |   |   | 5,062   |   |   |   | — |   |   |   | — |   |   |   | (210 | ) |
| Noninterest income:                                        |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Service charges and customer service fees                  |   |                             | 956     |   |   |   | 1,074   |   |   |   | 195     |   |   |   | — |   |   |   | — |   |   |   | 2,225 |   |
| Investment management income                               |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | 527     |   |   |   | — |   |   |   | 527 |   |
| Insurance fee and commission income                        |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 2,242 |   |   |   | 2,242 |   |
| Loan servicing fees                                        |   |                             | — |   |   |   | 68      |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 68 |   |
| Other                                                      |   |                             | 110     |   |   |   | 20      |   |   |   | 5       |   |   |   | — |   |   |   | — |   |   |   | 135 |   |
| Total noninterest income                                   |   |                             | 1,066   |   |   |   | 1,162   |   |   |   | 200     |   |   |   | 527     |   |   |   | 2,242 |   |   |   | 5,197 |   |
| Noninterest expense:                                       |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                             |   |                             | 2,747   |   |   |   | 2,227   |   |   |   | 1,652   |   |   |   | 623     |   |   |   | 1,067 |   |   |   | 8,316 |   |
| Occupancy, net of rental income                            |   |                             | 1,100   |   |   |   | 1,010   |   |   |   | 86      |   |   |   | 48      |   |   |   | 103 |   |   |   | 2,347 |   |
| Furniture and equipment                                    |   |                             | 303     |   |   |   | 302     |   |   |   | 318     |   |   |   | 18      |   |   |   | 16 |   |   |   | 957 |   |
| Legal, examination and professional fees                   |   |                             | 81      |   |   |   | 47      |   |   |   | 606     |   |   |   | 113     |   |   |   | 189 |   |   |   | 1,036 |   |
| Amortization of intangible assets                          |   |                             | 283     |   |   |   | 540     |   |   |   | 302     |   |   |   | — |   |   |   | 72 |   |   |   | 1,197 |   |
| FDIC insurance                                             |   |                             | 477     |   |   |   | 229     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 706 |   |
| Other                                                      |   |                             | 566     |   |   |   | 685     |   |   |   | 490     |   |   |   | 29      |   |   |   | 169 |   |   |   | 1,939 |   |
| Total noninterest expense                                  |   |                             | 5,557   |   |   |   | 5,040   |   |   |   | 3,454   |   |   |   | 831     |   |   |   | 1,616 |   |   |   | 16,498 |   |
| (Loss) income from operations of discontinued operations   |   |                             | (8,654  | )      |   |   | (4,987  | )      |   |   | 1,808   |   |   |   | (304    | )      |   |   | 626 |   |   |   | (11,511 | ) |
| Provision for income taxes                                 |   |                             | — |   |   |   | — |   |   |   | 27      |   |   |   | — |   |   |   | 2 |   |   |   | 29 |   |
| Net (loss) income from discontinued operations, net of tax |   | $                                | (8,654  | )      |   |   | (4,987  | )      |   |   | 1,781   |   |   |   | (304    | )      |   |   | 624 |   |   |   | (11,540 | ) |

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|                               |   | Maturity                         |    |   | Total  |   |    | Gross  |   |   |     |   |   | Weighted  |    |
|------------------------------------|--------|----------------------------------|---------|--------|--------|--------|---------|--------|--------|--------|----------|--------|--------|-----------|---------|
|                               |   | 1 Year                           |    |   | 1-5    |   |    | 5-10   |   |   | After    |   |   | Amortized |    |   | Unrealized |   |   | Fair |   |   | Average |   |
|                               |   | or Less                          |    |   | Years  |   |    | Years  |   |   | 10 Years |   |   | Cost      |    |   | Gains |   |   | Losses |   |   | Value |   |   | Yield |   |
|                               |   | (dollars expressed in thousands) |    |
| March 31, 2010:                    |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Carrying value:                    |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government sponsored agencies |   | $                                | 500     |   |   |   | 11,530  |   |   |   | —  |   |   |      | — |   |   |   | 12,030 |   |   |   | 37 |   |   |   | (74 | ) |   |   | 11,993 |   |   |   | 1.97 | % |
| Residential mortgage-backed        |   |                             | 275     |   |   |   | 9,161   |   |   |   | 5,359    |   |   |      | 817,465 |   |   |   | 832,260 |   |   |   | 5,983 |   |   |   | (1,518 | ) |   |   | 836,725 |   |   |   | 3.12 |   |
| Commercial mortgage-backed         |   |                             | — |   |   |   | — |   |   |   | 990      |   |   |      | — |   |   |   | 990 |   |   |   | 4 |   |   |   | — |   |   |   | 994 |   |   |   | 3.73 |   |
| State and political subdivisions   |   |                             | 2,679   |   |   |   | 5,056   |   |   |   | 3,042    |   |   |      | — |   |   |   | 10,777 |   |   |   | 440 |   |   |   | — |   |   |   | 11,217 |   |   |   | 4.02 |   |
| Equity investments                 |   |                             | — |   |   |   | — |   |   |   | —  |   |   |      | 14,278  |   |   |   | 14,278 |   |   |   | 237 |   |   |   | — |   |   |   | 14,515 |   |   |   | 2.74 |   |
| Total                              |   | $                                | 3,454   |   |   |   | 25,747  |   |   |   | 9,391    |   |   |      | 831,743 |   |   |   | 870,335 |   |   |   | 6,701 |   |   |   | (1,592 | ) |   |   | 875,444 |   |   |   | 3.11 |   |
| Fair value:                        |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt securities                    |   | $                                | 3,528   |   |   |   | 26,161  |   |   |   | 9,745    |   |   |      | 821,495 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity securities                  |   |                             | — |   |   |   | — |   |   |   | —  |   |   |      | 14,515  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                              |   | $                                | 3,528   |   |   |   | 26,161  |   |   |   | 9,745    |   |   |      | 836,010 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average yield             |   |                             | 4.30    | %      |   |   | 3.06    | %      |   |   | 4.32     | %      |   |      | 3.09    | % |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009:                 |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Carrying value:                    |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government sponsored agencies |   | $                                | 500     |   |   |   | 1,000   |   |   |   | —  |   |   |      | — |   |   |   | 1,500 |   |   |   | 47 |   |   |   | — |   |   |   | 1,547 |   |   |   | 3.53 | % |
| Residential mortgage-backed        |   |                             | 353     |   |   |   | 10,449  |   |   |   | 5,782    |   |   |      | 480,875 |   |   |   | 497,459 |   |   |   | 2,788 |   |   |   | (1,899 | ) |   |   | 498,348 |   |   |   | 3.27 |   |
| Commercial mortgage-backed         |   |                             | — |   |   |   | — |   |   |   | 998      |   |   |      | — |   |   |   | 998 |   |   |   | — |   |   |   | (13 | ) |   |   | 985 |   |   |   | 3.90 |   |
| State and political subdivisions   |   |                             | 1,857   |   |   |   | 6,177   |   |   |   | 3,778    |   |   |      | — |   |   |   | 11,812 |   |   |   | 366 |   |   |   | (4 | ) |   |   | 12,174 |   |   |   | 4.14 |   |
| Equity investments                 |   |                             | — |   |   |   | — |   |   |   | —  |   |   |      | 14,278  |   |   |   | 14,278 |   |   |   | — |   |   |   | — |   |   |   | 14,278 |   |   |   | 2.76 |   |
| Total                              |   | $                                | 2,710   |   |   |   | 17,626  |   |   |   | 10,558   |   |   |      | 495,153 |   |   |   | 526,047 |   |   |   | 3,201 |   |   |   | (1,916 | ) |   |   | 527,332 |   |   |   | 3.28 |   |
| Fair value:                        |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt securities                    |   | $                                | 2,770   |   |   |   | 18,139  |   |   |   | 10,866   |   |   |      | 481,279 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity securities                  |   |                             | — |   |   |   | — |   |   |   | —  |   |   |      | 14,278  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                              |   | $                                | 2,770   |   |   |   | 18,139  |   |   |   | 10,866   |   |   |      | 495,557 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average yield             |   |                             | 4.31    | %      |   |   | 4.06    | %      |   |   | 4.37     | %      |   |      | 3.22    | % |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                             |   | Maturity                         |    |   | Total  |   |    | Gross  |   |   |     |   |   | Weighted  |    |
|----------------------------------|--------|----------------------------------|---------|--------|--------|--------|---------|--------|--------|--------|----------|--------|--------|-----------|---------|
|                             |   | 1 Year                           |    |   | 1-5    |   |    | 5-10   |   |   | After    |   |   | Amortized |    |   | Unrealized |   |   | Fair |   |   | Average |   |
|                             |   | or Less                          |    |   | Years  |   |    | Years  |   |   | 10 Years |   |   | Cost      |    |   | Gains |   |   | Losses |   |   | Value |   |   | Yield |   |
|                             |   | (dollars expressed in thousands) |    |
| March 31, 2010:                  |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Carrying value:                  |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed      |   | $                                | — |   |   |   | — |   |   |   | 1,301    |   |   |      | 1,964   |   |   |   | 3,265 |   |   |   | 219 |   |   |   | — |   |   |   | 3,484 |   |   |   | 5.24 | % |
| Commercial mortgage-backed       |   |                             | — |   |   |   | 6,526   |   |   |   | —  |   |   |      | — |   |   |   | 6,526 |   |   |   | 550 |   |   |   | — |   |   |   | 7,076 |   |   |   | 4.82 |   |
| State and political subdivisions |   |                             | 790     |   |   |   | 735     |   |   |   | 644      |   |   |      | 1,533   |   |   |   | 3,702 |   |   |   | 346 |   |   |   | — |   |   |   | 4,048 |   |   |   | 5.32 |   |
| Total                            |   | $                                | 790     |   |   |   | 7,261   |   |   |   | 1,945    |   |   |      | 3,497   |   |   |   | 13,493 |   |   |   | 1,115 |   |   |   | — |   |   |   | 14,608 |   |   |   | 5.06 |   |
| Fair value:                      |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt securities                  |   | $                                | 806     |   |   |   | 7,862   |   |   |   | 2,080    |   |   |      | 3,860   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average yield           |   |                             | 4.11    | %      |   |   | 4.68    | %      |   |   | 4.71     | %      |   |      | 6.24    | % |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                             |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009:               |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Carrying value:                  |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed      |   | $                                | — |   |   |   | — |   |   |   | 1,695    |   |   |      | 2,170   |   |   |   | 3,865 |   |   |   | 210 |   |   |   | — |   |   |   | 4,075 |   |   |   | 5.60 | % |
| Commercial mortgage-backed       |   |                             | — |   |   |   | 6,556   |   |   |   | —  |   |   |      | — |   |   |   | 6,556 |   |   |   | 500 |   |   |   | — |   |   |   | 7,056 |   |   |   | 5.16 |   |
| State and political subdivisions |   |                             | 891     |   |   |   | 736     |   |   |   | 644      |   |   |      | 1,533   |   |   |   | 3,804 |   |   |   | 323 |   |   |   | — |   |   |   | 4,127 |   |   |   | 5.26 |   |
| Total                            |   | $                                | 891     |   |   |   | 7,292   |   |   |   | 2,339    |   |   |      | 3,703   |   |   |   | 14,225 |   |   |   | 1,033 |   |   |   | — |   |   |   | 15,258 |   |   |   | 5.31 |   |
| Fair value:                      |   |                             |    |   |   |   |    |   |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt securities                  |   | $                                | 913     |   |   |   | 7,836   |   |   |   | 2,472    |   |   |      | 4,037   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average yield           |   |                             | 4.03    | %      |   |   | 5.00    | %      |   |   | 5.41     | %      |   |      | 6.17    | % |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                            |   | Three Months Ended               |    |
|---------------------------------|--------|----------------------------------|---------|
|                            |   | March 31, 2009                   |    |
|                            |   | (dollars expressed in thousands) |    |
|                            |   |                             |    |
| Gross realized gains on sales   |   | $                                | 518     |   |
| Gross realized losses on sales  |   |                             | — |   |
| Gross realized gains on calls   |   |                             | 15      |   |
| Other-than-temporary impairment |   |                             | (1      | ) |
| Net realized gains              |   | $                                | 532     |   |

|                               |   | March 31, 2010                   |    |
|------------------------------------|--------|----------------------------------|---------|
|                               |   | Less than 12 months              |    |   | 12 months or more |   |   | Total |   |
|                               |   | Fair                             |    |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                               |   | Value                            |    |   | Losses |   |   | Value |   |   | Losses |   |   | Value |   |   | Losses |   |
|                               |   | (dollars expressed in thousands) |    |
| Available for sale:                |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government sponsored agencies |   | $                                | 10,456  |   |   |   | (74 | ) |   |   | — |   |   |   | — |   |   |   | 10,456 |   |   |   | (74 | ) |
| Residential mortgage-backed        |   |                             | 314,744 |   |   |   | (1,379 | ) |   |   | 691 |   |   |   | (139 | ) |   |   | 315,435 |   |   |   | (1,518 | ) |
| Total                              |   | $                                | 325,200 |   |   |   | (1,453 | ) |   |   | 691 |   |   |   | (139 | ) |   |   | 325,891 |   |   |   | (1,592 | ) |

|                             |   | December 31, 2009                |    |
|----------------------------------|--------|----------------------------------|---------|
|                             |   | Less than 12 months              |    |   | 12 months or more |   |   | Total |   |
|                             |   | Fair                             |    |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                             |   | Value                            |    |   | Losses |   |   | Value |   |   | Losses |   |   | Value |   |   | Losses |   |
|                             |   | (dollars expressed in thousands) |    |
| Available for sale:              |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed      |   | $                                | 257,250 |   |   |   | (1,731 | ) |   |   | 726 |   |   |   | (168 | ) |   |   | 257,976 |   |   |   | (1,899 | ) |
| Commercial mortgage-backed       |   |                             | 837     |   |   |   | (12 | ) |   |   | 148 |   |   |   | (1 | ) |   |   | 985 |   |   |   | (13 | ) |
| State and political subdivisions |   |                             | 20      |   |   |   | — |   |   |   | 261 |   |   |   | (4 | ) |   |   | 281 |   |   |   | (4 | ) |
| Total                            |   | $                                | 258,107 |   |   |   | (1,743 | ) |   |   | 1,135 |   |   |   | (173 | ) |   |   | 259,242 |   |   |   | (1,916 | ) |

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|                                               |   | March 31,                        |      |   | December 31, |   |
|----------------------------------------------------|--------|----------------------------------|-----------|--------|--------------|--------|
|                                               |   | 2010                             |      |   | 2009         |   |
|                                               |   | (dollars expressed in thousands) |      |
|                                               |   |                             |      |   |         |   |
| Commercial, financial and agricultural             |   | $                                | 1,536,701 |   |         |   | 1,692,922 |   |
| Real estate construction and development           |   |                             | 970,524   |   |         |   | 1,052,922 |   |
| Real estate mortgage:                              |   |                             |      |   |         |   |   |   |
| One-to-four family residential                     |   |                             | 1,220,479 |   |         |   | 1,279,166 |   |
| Multi-family residential                           |   |                             | 207,685   |   |         |   | 223,044 |   |
| Commercial real estate                             |   |                             | 2,190,402 |   |         |   | 2,269,372 |   |
| Consumer and installment, net of unearned discount |   |                             | 38,241    |   |         |   | 48,183 |   |
| Loans held for sale                                |   |                             | 34,883    |   |         |   | 42,684 |   |
| Loans, net of unearned discount                    |   | $                                | 6,198,915 |   |         |   | 6,608,293 |   |

|                                              |   | Three Months Ended               |    |
|---------------------------------------------------|--------|----------------------------------|---------|
|                                              |   | March 31,                        |    |
|                                              |   | 2010                             |    |   | 2009 |   |
|                                              |   | (dollars expressed in thousands) |    |
|                                              |   |                             |    |   |   |   |
| Balance, beginning of period                      |   | $                                | 266,448 |   |   |   | 220,214 |   |
| Allowance for loan losses allocated to loans sold |   |                             | (257    | ) |   |   | — |   |
|                                              |   |                             | 266,191 |   |   |   | 220,214 |   |
| Loans charged-off                                 |   |                             | (88,382 | ) |   |   | (74,814 | ) |
| Recoveries of loans previously charged-off        |   |                             | 30,255  |   |   |   | 3,151 |   |
| Net loans charged-off                             |   |                             | (58,127 | ) |   |   | (71,663 | ) |
| Provision for loan losses                         |   |                             | 42,000  |   |   |   | 108,000 |   |
| Balance, end of period                            |   | $                                | 250,064 |   |   |   | 256,551 |   |

|                           |   | Three Months Ended               |   |
|--------------------------------|--------|----------------------------------|--------|
|                           |   | March 31,                        |   |
|                           |   | 2010                             |   |   | 2009 |   |
|                           |   | (dollars expressed in thousands) |   |
|                           |   |                             |   |   |   |   |
| Balance, beginning of period   |   | $                                | 1,945  |   |   |   | 9,997 |   |
| Transfers to other real estate |   |                             | (192   | ) |   |   | (2,774 | ) |
| Loans charged-off              |   |                             | (345   | ) |   |   | (2,548 | ) |
| Payments and settlements       |   |                             | (94    | ) |   |   | (232 | ) |
| Balance, end of period         |   | $                                | 1,314  |   |   |   | 4,443 |   |

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Table of Contents

|                           |   | March 31, 2010                   |    |   | December 31, 2009 |   |
|--------------------------------|--------|----------------------------------|---------|--------|-------------------|--------|
|                           |   | Gross                            |    |   |              |   |   | Gross |   |   |   |   |
|                           |   | Carrying                         |    |   | Accumulated       |   |   | Carrying |   |   | Accumulated |   |
|                           |   | Amount                           |    |   | Amortization      |   |   | Amount |   |   | Amortization |   |
|                           |   | (dollars expressed in thousands) |    |
| Amortized intangible assets:   |   |                             |    |   |              |   |   |   |   |   |   |   |
| Core deposit intangibles (1)   |   | $                                | 23,622  |   |              |   | (17,225 | ) |   |   | 23,622 |   |   |   | (16,150 | ) |
|                           |   |                             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Unamortized intangible assets: |   |                             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill (2)                   |   | $                                | 136,967 |   |              |   |   |   |   |   | 136,967 |   |   |   |   |   |

|   | (1) | The gross carrying amount and accumulated amortization for core deposit intangibles at March 31, 2010 have been reduced by $17.8 million and $13.8 million, respectively, or a net amount of $4.0 million, related to discontinued operations as further described in Note 2 to the consolidated financial statements. The gross carrying amount and accumulated amortization for core deposit intangibles at December 31, 2009 have been reduced by $17.8 million and $11.6 million, respectively, or a net amount of $6.2 million, related to discontinued operations. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Goodwill at March 31, 2010 and December 31, 2009 has been reduced by $16.0 million and $41.0 million, respectively, related to discontinued operations and assets held for sale, as further described below and in Note 2 to the consolidated financial statements. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | (dollars expressed in thousands) |   |
|--------------------------|--------|----------------------------------|--------|
| Year ending December 31: |   |                             |   |
| 2010 remaining           |   | $                                | 2,850  |   |
| 2011                     |   |                             | 3,074  |   |
| 2012                     |   |                             | 473    |   |
| Total                    |   | $                                | 6,397  |   |

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Table of Contents

|                                                                                                       |   | Three Months Ended               |   |
|------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                                       |   | March 31,                        |   |
|                                                                                                       |   | 2010                             |   |   | 2009 |   |
|                                                                                                       |   | (dollars expressed in thousands) |   |
|                                                                                                       |   |                             |   |   |   |   |
| Balance, beginning of period                                                                               |   | $                                | 12,130 |   |   |   | 7,418 |   |
| Originated mortgage servicing rights                                                                       |   |                             | 796    |   |   |   | 1,142 |   |
| Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1) |   |                             | 275    |   |   |   | 184 |   |
| Other changes in fair value (2)                                                                            |   |                             | (497   | ) |   |   | (903 | ) |
| Balance, end of period                                                                                     |   | $                                | 12,704 |   |   |   | 7,841 |   |

|   | (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. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|                                                                                                       |   | Three Months Ended               |   |
|------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                                       |   | March 31,                        |   |
|                                                                                                       |   | 2010                             |   |   | 2009 |   |
|                                                                                                       |   | (dollars expressed in thousands) |   |
|                                                                                                       |   |                             |   |   |   |   |
| Balance, beginning of period                                                                               |   | $                                | 8,478  |   |   |   | 8,963 |   |
| Originated SBA servicing rights                                                                            |   |                             | 21     |   |   |   | 208 |   |
| Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1) |   |                             | 106    |   |   |   | (909 | ) |
| Other changes in fair value (2)                                                                            |   |                             | (633   | ) |   |   | (357 | ) |
| Balance, end of period                                                                                     |   | $                                | 7,972  |   |   |   | 7,905 |   |

|   | (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. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

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|                                                                               |   | Three Months Ended                                            |      |
|------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|-----------|
|                                                                               |   | March 31,                                                     |      |
|                                                                               |   | 2010                                                          |      |   | 2009 |   |
|                                                                               |   |  (dollars in thousands, except share and per share data) |      |
|                                                                               |   |                                                          |      |   |   |   |
| Basic:                                                                             |   |                                                          |      |   |   |   |
| Net loss from continuing operations attributable to First Banks, Inc.              |   | $                                                             | (29,812   | ) |   |   | (77,866 | ) |
| Preferred stock dividends declared and undeclared                                  |   |                                                          | (4,161    | ) |   |   | (4,221 | ) |
| Accretion of discount on preferred stock                                           |   |                                                          | (833      | ) |   |   | (813 | ) |
| Net loss from continuing operations attributable to common stockholders            |   |                                                          | (34,806   | ) |   |   | (82,900 | ) |
| Net income (loss) from discontinued operations attributable to                     |   |                                                          |      |   |   |   |   |   |
| common stockholders                                                                |   |                                                          | 2,243     |   |   |   | (11,540 | ) |
| Net loss available to First Banks, Inc. common stockholders                        |   | $                                                             | (32,563   | ) |   |   | (94,440 | ) |
|                                                                               |   |                                                          |      |   |   |   |   |   |
| Weighted average shares of common stock outstanding                                |   |                                                          | 23,661    |   |   |   | 23,661 |   |
|                                                                               |   |                                                          |      |   |   |   |   |   |
| Basic loss per common share – continuing operations                          |   | $                                                             | (1,471.05 | ) |   |   | (3,503.67 | ) |
| Basic earnings (loss) per common share – discontinued operations             |   | $                                                             | 94.79     |   |   |   | (487.73 | ) |
| Basic loss per common share                                                        |   | $                                                             | (1,376.26 | ) |   |   | (3,991.40 | ) |
|                                                                               |   |                                                          |      |   |   |   |   |   |
|                                                                               |   |                                                          |      |   |   |   |   |   |
| Diluted:                                                                           |   |                                                          |      |   |   |   |   |   |
| Net loss from continuing operations attributable to common stockholders            |   | $                                                             | (34,806   | ) |   |   | (82,900 | ) |
| Net income (loss) from discontinued operations attributable to common stockholders |   |                                                          | 2,243     |   |   |   | (11,540 | ) |
| Net loss available to First Banks, Inc. common stockholders                        |   |                                                          | (32,563   | ) |   |   | (94,440 | ) |
| Effect of dilutive securities:                                                     |   |                                                          |      |   |   |   |   |   |
| Class A convertible preferred stock                                                |   |                                                          | —   |   |   |   | — |   |
| Diluted EPS – net loss available to First Banks, Inc. common stockholders    |   | $                                                             | (32,563   | ) |   |   | (94,440 | ) |
|                                                                               |   |                                                          |      |   |   |   |   |   |
| Weighted average shares of common stock outstanding                                |   |                                                          | 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 |   |
|                                                                               |   |                                                          |      |   |   |   |   |   |
| Diluted loss per common share – continuing operations                        |   | $                                                             | (1,471.05 | ) |   |   | (3,503.67 | ) |
| Diluted earnings (loss) per common share – discontinued operations           |   | $                                                             | 94.79     |   |   |   | (487.73 | ) |
| Diluted loss per common share                                                      |   | $                                                             | (1,376.26 | ) |   |   | (3,991.40 | ) |

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|                                      |   |                                   |    |   |              |   |   |              |   |   |    |   |   |     |   |   | To be Well Capitalized Under |   |
|-------------------------------------------|--------|----------------------------------------|---------|--------|-------------------|--------|--------|-------------------|--------|--------|---------|--------|--------|----------|--------|--------|------------------------------|--------|
|                                      |   | Actual                                 |    |   | ForCapital        |   |   | Prompt Corrective |   |
|                                      |   | March 31, 2010                         |    |   | December 31, 2009 |   |   | Adequacy          |   |   | Action  |   |
|                                      |   | Amount                                 |    |   | Ratio             |   |   | Amount            |   |   | Ratio   |   |   | Purposes |   |   | Provisions                   |   |
|                                      |   |  (dollars expressed in thousands) |    |   |              |
|                                      |   |                                   |    |   |              |   |   |              |   |   |    |   |   |     |   |   |                         |   |
| Total capital (to risk-weighted assets):  |   |                                   |    |   |              |   |   |              |   |   |    |   |   |     |   |   |                         |   |
| First Banks                               |   | $                                      | 712,642 |   |              |   | 10.52  | %                 |   | $      | 740,560 |   |   |     | 9.78   | %      |                         |   | 8.0 | % |   |   | N/A |   |
| First Bank                                |   |                                   | 780,531 |   |              |   | 11.53  |              |   |   | 785,799 |   |   |     | 10.39  |   |                         |   | 8.0 |   |   |   | 10.0 | % |
|                                      |   |                                   |    |   |              |   |   |              |   |   |    |   |   |     |   |   |                         |   |   |   |   |   |   |   |
| Tier 1 capital (to risk-weighted assets): |   |                                   |    |   |              |   |   |              |   |   |    |   |   |     |   |   |                         |   |   |   |   |   |   |   |
| First Banks                               |   |                                   | 356,321 |   |              |   | 5.26   |              |   |   | 370,280 |   |   |     | 4.89   |   |                         |   | 4.0 |   |   |   | N/A |   |
| First Bank                                |   |                                   | 693,857 |   |              |   | 10.25  |              |   |   | 689,117 |   |   |     | 9.11   |   |                         |   | 4.0 |   |   |   | 6.0 |   |
|                                      |   |                                   |    |   |              |   |   |              |   |   |    |   |   |     |   |   |                         |   |   |   |   |   |   |   |
| Tier 1 capital (to average assets):       |   |                                   |    |   |              |   |   |              |   |   |    |   |   |     |   |   |                         |   |   |   |   |   |   |   |
| First Banks                               |   |                                   | 356,321 |   |              |   | 3.63   |              |   |   | 370,280 |   |   |     | 3.52   |   |                         |   | 4.0 |   |   |   | N/A |   |
| First Bank                                |   |                                   | 693,857 |   |              |   | 7.08   |              |   |   | 689,117 |   |   |     | 6.56   |   |                         |   | 4.0 |   |   |   | 5.0 |   |

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|                                   |   |                             |      |   |              |   |       | Corporate, Other    |   |   |         |   |   |      |     |
|----------------------------------------|--------|----------------------------------|-----------|--------|-------------------|--------|------------|---------------------|--------|--------|--------------|--------|--------|-----------|----------|
|                                   |   |                             |      |   |              |   |       | and Intercompany    |   |   |         |   |   |      |     |
|                                   |   | First Bank                       |      |   | Reclassifications |   |       | Consolidated Totals |   |
|                                   |   | March 31,                        |      |   | December 31,      |   |       | March 31,           |   |   | December 31, |   |   | March 31, |     |   | December 31, |   |
|                                   |   | 2010                             |      |   | 2009              |   |       | 2010                |   |   | 2009         |   |   | 2010      |     |   | 2009 |   |
|                                   |   | (dollars expressed in thousands) |      |
|                                   |   |                             |      |   |              |   |       |                |   |   |         |   |   |      |     |   |   |   |
| Balance sheet information:             |   |                             |      |   |              |   |       |                |   |   |         |   |   |      |     |   |   |   |
|                                   |   |                             |      |   |              |   |       |                |   |   |         |   |   |      |     |   |   |   |
| Investment securities                  |   | $                                | 874,423   |   |              |   | 527,279    |                |   |   | 14,514       |   |   |      | 14,278   |   |   |   | 888,937 |   |   |   | 541,557 |   |
| Loans, net of unearned discount        |   |                             | 6,198,915 |   |              |   | 6,608,293  |                |   |   | —      |   |   |      | —  |   |   |   | 6,198,915 |   |   |   | 6,608,293 |   |
| FHLB and FRB stock                     |   |                             | 51,950    |   |              |   | 65,076     |                |   |   | —      |   |   |      | —  |   |   |   | 51,950 |   |   |   | 65,076 |   |
| Goodwill and other intangible assets   |   |                             | 143,364   |   |              |   | 144,439    |                |   |   | —      |   |   |      | —  |   |   |   | 143,364 |   |   |   | 144,439 |   |
| Assets held for sale                   |   |                             | 737       |   |              |   | 16,975     |                |   |   | —      |   |   |      | —  |   |   |   | 737 |   |   |   | 16,975 |   |
| Assets of discontinued operations      |   |                             | 141,630   |   |              |   | 518,056    |                |   |   | —      |   |   |      | —  |   |   |   | 141,630 |   |   |   | 518,056 |   |
| Total assets                           |   |                             | 9,047,902 |   |              |   | 10,561,500 |                |   |   | 23,545       |   |   |      | 20,496   |   |   |   | 9,071,447 |   |   |   | 10,581,996 |   |
| Deposits                               |   |                             | 7,027,446 |   |              |   | 7,071,493  |                |   |   | (3,870       | )      |   |      | (7,520   | ) |   |   | 7,023,576 |   |   |   | 7,063,973 |   |
| Other borrowings                       |   |                             | 567,013   |   |              |   | 767,494    |                |   |   | —      |   |   |      | —  |   |   |   | 567,013 |   |   |   | 767,494 |   |
| Subordinated debentures                |   |                             | —   |   |              |   | —    |                |   |   | 353,924      |   |   |      | 353,905  |   |   |   | 353,924 |   |   |   | 353,905 |   |
| Liabilities held for sale              |   |                             | —   |   |              |   | 24,381     |                |   |   | —      |   |   |      | —  |   |   |   | — |   |   |   | 24,381 |   |
| Liabilities of discontinued operations |   |                             | 499,377   |   |              |   | 1,730,264  |                |   |   | —      |   |   |      | —  |   |   |   | 499,377 |   |   |   | 1,730,264 |   |
| Total stockholders’ equity       |   |                             | 856,453   |   |              |   | 878,277    |                |   |   | (364,302     | )      |   |      | (355,897 | ) |   |   | 492,151 |   |   |   | 522,380 |   |

|                                                                        |   | Corporate, Other                 |    |
|-----------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                        |   | and Intercompany                 |    |
|                                                                        |   | First Bank                       |    |   | Reclassifications |   |   | Consolidated Totals |   |
|                                                                        |   | Three Months Ended               |    |   | Three Months Ended |   |   | Three Months Ended |   |
|                                                                        |   | March 31,                        |    |   | March 31, |   |   | March 31, |   |
|                                                                        |   | 2010                             |    |   | 2009 |   |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                                                        |   | (dollars expressed in thousands) |    |
| Income statement information:                                               |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                             |   | $                                | 87,975  |   |   |   | 109,294 |   |   |   | 102 |   |   |   | 123 |   |   |   | 88,077 |   |   |   | 109,417 |   |
| Interest expense                                                            |   |                             | 20,879  |   |   |   | 33,345 |   |   |   | 3,095 |   |   |   | 4,426 |   |   |   | 23,974 |   |   |   | 37,771 |   |
| Net interest income                                                         |   |                             | 67,096  |   |   |   | 75,949 |   |   |   | (2,993 | ) |   |   | (4,303 | ) |   |   | 64,103 |   |   |   | 71,646 |   |
| Provision for loan losses                                                   |   |                             | 42,000  |   |   |   | 108,000 |   |   |   | — |   |   |   | — |   |   |   | 42,000 |   |   |   | 108,000 |   |
| Net interest income (loss) after provision for loan losses                  |   |                             | 25,096  |   |   |   | (32,051 | ) |   |   | (2,993 | ) |   |   | (4,303 | ) |   |   | 22,103 |   |   |   | (36,354 | ) |
| Noninterest income                                                          |   |                             | 17,515  |   |   |   | 20,301 |   |   |   | (1,326 | ) |   |   | 2 |   |   |   | 16,189 |   |   |   | 20,303 |   |
| Amortization of intangible assets                                           |   |                             | 1,075   |   |   |   | 1,141 |   |   |   | — |   |   |   | — |   |   |   | 1,075 |   |   |   | 1,141 |   |
| Other noninterest expense                                                   |   |                             | 67,281  |   |   |   | 63,770 |   |   |   | 80 |   |   |   | (559 | ) |   |   | 67,361 |   |   |   | 63,211 |   |
| Loss from continuing operations before provision (benefit) for income taxes |   |                             | (25,745 | ) |   |   | (76,661 | ) |   |   | (4,399 | ) |   |   | (3,742 | ) |   |   | (30,144 | ) |   |   | (80,403 | ) |
| Provision (benefit) for income taxes                                        |   |                             | 105     |   |   |   | (496 | ) |   |   | — |   |   |   | (47 | ) |   |   | 105 |   |   |   | (543 | ) |
| Net loss from continuing operations, net of tax                             |   |                             | (25,850 | ) |   |   | (76,165 | ) |   |   | (4,399 | ) |   |   | (3,695 | ) |   |   | (30,249 | ) |   |   | (79,860 | ) |
| Discontinued operations, net of tax                                         |   |                             | 2,243   |   |   |   | (11,540 | ) |   |   | — |   |   |   | — |   |   |   | 2,243 |   |   |   | (11,540 | ) |
| Net loss                                                                    |   |                             | (23,607 | ) |   |   | (87,705 | ) |   |   | (4,399 | ) |   |   | (3,695 | ) |   |   | (28,006 | ) |   |   | (91,400 | ) |
| Net loss attributable to noncontrolling interest in subsidiaries            |   |                             | (437    | ) |   |   | (1,994 | ) |   |   | — |   |   |   | — |   |   |   | (437 | ) |   |   | (1,994 | ) |
| Net loss attributable to First Banks, Inc.                                  |   | $                                | (23,170 | ) |   |   | (85,711 | ) |   |   | (4,399 | ) |   |   | (3,695 | ) |   |   | (27,569 | ) |   |   | (89,406 | ) |

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|                                            |   | March 31,                        |    |   | December 31, |   |
|-------------------------------------------------|--------|----------------------------------|---------|--------|--------------|--------|
|                                            |   | 2010                             |    |   | 2009         |   |
| Securities sold under agreements to repurchase: |   | (dollars expressed in thousands) |    |
| Daily                                           |   | $                                | 47,013  |   |         |   | 47,494 |   |
| Term                                            |   |                             | 120,000 |   |         |   | 120,000 |   |
| FHLB advances (1)                               |   |                             | 400,000 |   |         |   | 600,000 |   |
| Total                                           |   | $                                | 567,013 |   |         |   | 767,494 |   |

|   | (1) | In March 2010, First Bank prepaid two $100.0 million FHLB advances and incurred a prepayment penalty of $281,000, in aggregate. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

|               |   | March 31, 2010                   |    |   | December 31, 2009 |   |
|--------------------|--------|----------------------------------|---------|--------|-------------------|--------|
|               |   |                             |    |   | Interest          |   |   |   |   |   | Interest |   |
| Maturity Date      |   | Par Amount                       |    |   | Rate              |   |   | Par Amount |   |   | Rate |   |
|               |   | (dollars expressed in thousands) |    |
| Fixed Rate:        |   |                             |    |   |              |   |   |   |   |   |   |   |
| April 27, 2011     |   | $                                | 100,000 |   |              |   | 1.77 | % |   | $ | 100,000 |   |   |   | 1.77 | % |
| July 11, 2011      |   |                             | 100,000 |   |              |   | 1.49 |   |   |   | 100,000 |   |   |   | 1.49 |   |
| August 8, 2012     |   |                             | 100,000 |   |              |   | 2.20 |   |   |   | 100,000 |   |   |   | 2.20 |   |
| April 23, 2010 (1) |   |                             | — |   |              |   | — |   |   |   | 100,000 |   |   |   | 1.69 |   |
| July 9, 2010 (2)   |   |                             | — |   |              |   | — |   |   |   | 100,000 |   |   |   | 0.85 |   |
|               |   | $                                | 300,000 |   |              |   | 1.82 |   |   | $ | 500,000 |   |   |   | 1.60 |   |
| Variable Rate:     |   |                             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| September 23, 2016 |   | $                                | 100,000 |   |              |   | 0.32 | % |   | $ | 100,000 |   |   |   | 0.20 | % |

|   | (1) | On March 29, 2010, First Bank prepaid this FHLB advance and incurred a prepayment penalty of $104,000. |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (2) | On March 29, 2010, First Bank prepaid this FHLB advance and incurred a prepayment penalty of $177,000. |
|--------|-----|--------------------------------------------------------------------------------------------------------|

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|                                 |   |           |   |               |   |               |   |     |    |    | Trust                            |   |   |         |   |
|--------------------------------------|--------|----------------|--------|--------------------|--------|--------------------|--------|----------|---------|---------|----------------------------------|--------|--------|--------------|--------|
|                                 |   | Issuance       |   | Maturity           |   | Call               |   | Interest |    |    | Preferred                        |   |   | Subordinated |   |
| Name of Trust                        |   | Date           |   | Date               |   | Date (1)      |   | Rate(2)  |    |    | Securities                       |   |   | 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 (3a) |                             |   | 25,000 |         |   |   | 25,774 |   |
| First Bank Statutory Trust VII  |   | December 2006  |   | December 15, 2036  |   | December 15, 2011  |   |     | + 185.0 | bp (3b) |                             |   | 50,000 |         |   |   | 51,547 |   |
| First Bank Statutory Trust VIII      |   | February 2007  |   | March 30, 2037     |   | March 30, 2012     |   |     | + 161.0 | bp (3c) |                             |   | 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 (3d) |                             |   | 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 subordinated debentures are callable at the option of First Banks 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 for the outstanding subordinated debentures is based on the three-month LIBOR plus the basis point spread shown. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | In March 2008, First Banks executed four interest rate swap agreements, which were designated as cash flow hedges prior to August 10, 2009, to effectively convert the interest payments on these subordinated debentures from variable rate to fixed rate to the respective call dates as follows: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | $25.0 million notional amount with a maturity date of July 7, 2011 that converts the interest rate from a variable rate of LIBOR plus 165 basis points to a fixed rate of 4.40%; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | $50.0 million notional amount with a maturity date of December 15, 2011 that converts the interest rate from a variable rate of LIBOR plus 185 basis points to a fixed rate of 4.905%; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | $25.0 million notional amount with a maturity date of March 30, 2012 that converts the interest rate from a variable rate of LIBOR plus 161 basis points to a fixed rate of 4.71%; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | $25.0 million notional amount with a maturity date of December 15, 2012 that converts the interest rate from a variable rate of LIBOR plus 225 basis points to a fixed rate of 5.565%. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                            |   | Three Months Ended               |    |
|-------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                                            |   | March 31,                        |    |
|                                                                                            |   | 2010                             |    |   | 2009 |   |
|                                                                                            |   | (dollars expressed in thousands) |    |
|                                                                                            |   |                             |    |   |   |   |
| Net loss                                                                                        |   | $                                | (28,006 | ) |   |   | (91,400 | ) |
| Other comprehensive income (loss):                                                              |   |                             |    |   |   |   |   |   |
| Unrealized gains on investment securities, net of tax                                           |   |                             | 2,486   |   |   |   | 3,613 |   |
| Reclassification adjustment for investment securities gains included in net loss, net of tax    |   |                             | — |   |   |   | (346 | ) |
| Reclassification adjustment for deferred tax asset valuation allowance on investment securities |   |                             | 1,256   |   |   |   | (257 | ) |
| Change in unrealized gains on derivative instruments, net of tax                                |   |                             | (1,245  | ) |   |   | (2,840 | ) |
| Reclassification adjustment for deferred tax asset valuation allowance on derivatives           |   |                             | (670    | ) |   |   | (151 | ) |
| Amortization of net loss related to pension plan, net of tax                                    |   |                             | 64      |   |   |   | 36 |   |
| Reclassification adjustment for deferred tax asset valuation allowance on pension liability     |   |                             | 47      |   |   |   | — |   |
| Comprehensive loss                                                                              |   |                             | (26,068 | ) |   |   | (91,345 | ) |
| Comprehensive loss attributable to noncontrolling interest in subsidiaries                      |   |                             | (437    | ) |   |   | (1,994 | ) |
| Comprehensive loss attributable to First Banks, Inc.                                            |   | $                                | (25,631 | ) |   |   | (89,351 | ) |

|                                            |   | March 31,                        |     |   | December 31, |   |
|-------------------------------------------------|--------|----------------------------------|----------|--------|--------------|--------|
|                                            |   | 2010                             |     |   | 2009         |   |
|                                            |   | (dollars expressed in thousands) |     |
|                                            |   |                             |     |   |         |   |
| Gross deferred tax assets                       |   | $                                | 321,134  |   |         |   | 319,767 |   |
| Valuation allowance                             |   |                             | (295,766 | )      |         |   | (295,067 | ) |
| Deferred tax assets, net of valuation allowance |   |                             | 25,368   |   |         |   | 24,700 |   |
| Deferred tax liabilities                        |   |                             | 33,240   |   |         |   | 32,572 |   |
| Net deferred tax liabilities                    |   | $                                | (7,872   | )      |         |   | (7,872 | ) |

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|   | 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. |
|--------|------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                   |   | Fair Value Measurements                      |    |
|--------------------------------------------------------|--------|----------------------------------------------|---------|
|                                                   |   | March 31, 2010                               |    |
|                                                   |   |                                         |    |   |   |   |   |   |   |   |   |   |
|                                                   |   | Level 1                                      |    |   | Level 2 |   |   | Level 3 |   |   | Fair Value |   |
|                                                   |   |   (dollars expressed in thousands) |    |
| Assets:                                                |   |                                         |    |   |   |   |   |   |   |   |   |   |
| Available-for-sale investment securities:              |   |                                         |    |   |   |   |   |   |   |   |   |   |
| U.S. Government sponsored agencies                     |   | $                                            | — |   |   |   | 11,993 |   |   |   | — |   |   |   | 11,993 |   |
| Residential mortgage-backed                            |   |                                         | — |   |   |   | 836,725 |   |   |   | — |   |   |   | 836,725 |   |
| Commercial mortgage-backed                             |   |                                         | — |   |   |   | 994 |   |   |   | — |   |   |   | 994 |   |
| State and political subdivisions                       |   |                                         | — |   |   |   | 11,217 |   |   |   | — |   |   |   | 11,217 |   |
| Equity investments                                     |   |                                         | 3,837   |   |   |   | 10,678 |   |   |   | — |   |   |   | 14,515 |   |
| Mortgage loans held for sale                           |   |                                         | — |   |   |   | 27,757 |   |   |   | — |   |   |   | 27,757 |   |
| Derivative instruments:                                |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer interest rate swap agreements                 |   |                                         | — |   |   |   | 673 |   |   |   | — |   |   |   | 673 |   |
| Interest rate lock commitments                         |   |                                         | — |   |   |   | 500 |   |   |   | — |   |   |   | 500 |   |
| Forward commitments to sell mortgage-backed securities |   |                                         | — |   |   |   | 35 |   |   |   | — |   |   |   | 35 |   |
| Servicing rights                                       |   |                                         | — |   |   |   | — |   |   |   | 20,676 |   |   |   | 20,676 |   |
| Total                                                  |   | $                                            | 3,837   |   |   |   | 900,572 |   |   |   | 20,676 |   |   |   | 925,085 |   |
|                                                   |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                           |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative instruments:                                |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap agreements                          |   | $                                            | — |   |   |   | 4,623 |   |   |   | — |   |   |   | 4,623 |   |
| Customer interest rate swap agreements                 |   |                                         | — |   |   |   | 450 |   |   |   | — |   |   |   | 450 |   |
| Nonqualified deferred compensation plan                |   |                                         | 7,761   |   |   |   | — |   |   |   | — |   |   |   | 7,761 |   |
| Total                                                  |   | $                                            | 7,761   |   |   |   | 5,073 |   |   |   | — |   |   |   | 12,834 |   |

|                                                   |   | Fair Value Measurements          |    |
|--------------------------------------------------------|--------|----------------------------------|---------|
|                                                   |   | December 31, 2009                |    |
|                                                   |   |                             |    |   |   |   |   |   |   |   |   |   |
|                                                   |   | Level 1                          |    |   | Level 2 |   |   | Level 3 |   |   | Fair Value |   |
|                                                   |   | (dollars expressed in thousands) |    |
| Assets:                                                |   |                             |    |   |   |   |   |   |   |   |   |   |
| Available-for-sale investment securities:              |   |                             |    |   |   |   |   |   |   |   |   |   |
| U.S. Government sponsored agencies                     |   | $                                | — |   |   |   | 1,547 |   |   |   | — |   |   |   | 1,547 |   |
| Residential mortgage-backed                            |   |                             | — |   |   |   | 498,348 |   |   |   | — |   |   |   | 498,348 |   |
| Commercial mortgage-backed                             |   |                             | — |   |   |   | 985 |   |   |   | — |   |   |   | 985 |   |
| State and political subdivisions                       |   |                             | — |   |   |   | 12,174 |   |   |   | — |   |   |   | 12,174 |   |
| Equity investments                                     |   |                             | 3,600   |   |   |   | 10,678 |   |   |   | — |   |   |   | 14,278 |   |
| Mortgage loans held for sale                           |   |                             | — |   |   |   | 35,562 |   |   |   | — |   |   |   | 35,562 |   |
| Derivative instruments:                                |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer interest rate swap agreements                 |   |                             | — |   |   |   | 589 |   |   |   | — |   |   |   | 589 |   |
| Interest rate lock commitments                         |   |                             | — |   |   |   | 369 |   |   |   | — |   |   |   | 369 |   |
| Forward commitments to sell mortgage-backed securities |   |                             | — |   |   |   | 647 |   |   |   | — |   |   |   | 647 |   |
| Servicing rights                                       |   |                             | — |   |   |   | — |   |   |   | 20,608 |   |   |   | 20,608 |   |
| Total                                                  |   | $                                | 3,600   |   |   |   | 560,899 |   |   |   | 20,608 |   |   |   | 585,107 |   |
|                                                   |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                           |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative instruments:                                |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap agreements                          |   |                             | — |   |   |   | 4,171 |   |   |   | — |   |   |   | 4,171 |   |
| Customer interest rate swap agreements                 |   |                             | — |   |   |   | 345 |   |   |   | — |   |   |   | 345 |   |
| Nonqualified deferred compensation plan                |   |                             | 9,013   |   |   |   | — |   |   |   | — |   |   |   | 9,013 |   |
| Total                                                  |   | $                                | 9,013   |   |   |   | 4,516 |   |   |   | — |   |   |   | 13,529 |   |

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|                                         |   | Servicing Rights                 |    |
|----------------------------------------------|--------|----------------------------------|---------|
|                                         |   | Three Months Ended               |    |
|                                         |   | March 31,                        |    |
|                                         |   | 2010                             |    |   | 2009 |   |
|                                         |   |                             |    |   |   |   |
|                                         |   | (dollars expressed in thousands) |    |
|                                         |   |                             |    |   |   |   |
| Balance, beginning of period                 |   | $                                | 20,608  |   |   |   | 16,381 |   |
| Total gains or losses (realized/unrealized): |   |                             |    |   |   |   |   |   |
| Included in earnings (1)                     |   |                             | (749    | ) |   |   | (1,985 | ) |
| Included in other comprehensive income       |   |                             | — |   |   |   | — |   |
| Purchases, issuances and settlements         |   |                             | 817     |   |   |   | 1,350 |   |
| Transfers in and/or out of level 3           |   |                             | — |   |   |   | — |   |
| Balance, end of period                       |   | $                                | 20,676  |   |   |   | 15,746 |   |

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

|                |   | Fair Value Measurements          |    |
|---------------------|--------|----------------------------------|---------|
|                |   | March 31, 2010                   |    |
|                |   | Level 1                          |    |   | Level 2 |   |   | Level 3 |   |   | Fair Value |   |
|                |   | (dollars expressed in thousands) |    |
|                |   |                             |    |   |   |   |   |   |   |   |   |   |
| Assets:             |   |                             |    |   |   |   |   |   |   |   |   |   |
| Loans held for sale |   | $                                | — |   |   |   | 7,126 |   |   |   | — |   |   |   | 7,126 |   |
| Impaired loans      |   |                             | — |   |   |   | — |   |   |   | 630,226 |   |   |   | 630,226 |   |
| Total               |   | $                                | — |   |   |   | 7,126 |   |   |   | 630,226 |   |   |   | 637,352 |   |

|                |   | Fair Value Measurements          |    |
|---------------------|--------|----------------------------------|---------|
|                |   | December 31, 2009                |    |
|                |   | Level 1                          |    |   | Level 2 |   |   | Level 3 |   |   | Fair Value |   |
|                |   | (dollars expressed in thousands) |    |
|                |   |                             |    |   |   |   |   |   |   |   |   |   |
| Assets:             |   |                             |    |   |   |   |   |   |   |   |   |   |
| Loans held for sale |   | $                                | — |   |   |   | 7,122 |   |   |   | — |   |   |   | 7,122 |   |
| Impaired loans      |   |                             | — |   |   |   | — |   |   |   | 662,080 |   |   |   | 662,080 |   |
| Total               |   | $                                | — |   |   |   | 7,122 |   |   |   | 662,080 |   |   |   | 669,202 |   |

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|                                                                             |   | March 31, 2010                         |      |   | December 31, 2009 |   |
|----------------------------------------------------------------------------------|--------|----------------------------------------|-----------|--------|-------------------|--------|
|                                                                             |   | Carrying                               |      |   | Estimated         |   |   | Carrying |   |   | Estimated |   |
|                                                                             |   | Value                                  |      |   | Fair Value        |   |   | Value |   |   | Fair Value |   |
|                                                                             |   |  (dollars expressed in thousands) |      |
| Financial Assets:                                                                |   |                                   |      |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                        |   | $                                      | 1,464,258 |   |              |   | 1,464,258 |   |   |   | 2,516,251 |   |   |   | 2,516,251 |   |
| Investment securities:                                                           |   |                                   |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Available for sale                                                               |   |                                   | 875,444   |   |              |   | 875,444 |   |   |   | 527,332 |   |   |   | 527,332 |   |
| Held to maturity                                                                 |   |                                   | 13,493    |   |              |   | 14,608 |   |   |   | 14,225 |   |   |   | 15,258 |   |
| Loans held for portfolio                                                         |   |                                   | 5,913,968 |   |              |   | 5,568,095 |   |   |   | 6,299,161 |   |   |   | 5,902,354 |   |
| Loans held for sale                                                              |   |                                   | 34,883    |   |              |   | 34,883 |   |   |   | 42,684 |   |   |   | 42,684 |   |
| FHLB and Federal Reserve Bank stock                                              |   |                                   | 51,950    |   |              |   | 51,950 |   |   |   | 65,076 |   |   |   | 65,076 |   |
| Derivative instruments                                                           |   |                                   | 1,208     |   |              |   | 1,208 |   |   |   | 1,605 |   |   |   | 1,605 |   |
| Bank-owned life insurance                                                        |   |                                   | 6,640     |   |              |   | 6,640 |   |   |   | 26,372 |   |   |   | 26,372 |   |
| Accrued interest receivable                                                      |   |                                   | 27,522    |   |              |   | 27,522 |   |   |   | 25,731 |   |   |   | 25,731 |   |
| Assets held for sale                                                             |   |                                   | 737       |   |              |   | 750 |   |   |   | 16,975 |   |   |   | 16,975 |   |
| Assets of discontinued operations                                                |   |                                   | 141,630   |   |              |   | 141,630 |   |   |   | 518,056 |   |   |   | 518,056 |   |
|                                                                             |   |                                   |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities:                                                           |   |                                   |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                        |   |                                   |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand                                                       |   | $                                      | 1,212,400 |   |              |   | 1,212,400 |   |   |   | 1,270,276 |   |   |   | 1,270,276 |   |
| Interest-bearing demand                                                          |   |                                   | 918,903   |   |              |   | 918,903 |   |   |   | 914,020 |   |   |   | 914,020 |   |
| Savings and money market                                                         |   |                                   | 2,289,924 |   |              |   | 2,289,924 |   |   |   | 2,260,869 |   |   |   | 2,260,869 |   |
| Time deposits                                                                    |   |                                   | 2,602,349 |   |              |   | 2,625,342 |   |   |   | 2,618,808 |   |   |   | 2,640,741 |   |
| Other borrowings                                                                 |   |                                   | 567,013   |   |              |   | 575,845 |   |   |   | 767,494 |   |   |   | 764,992 |   |
| Derivative instruments                                                           |   |                                   | 5,073     |   |              |   | 5,073 |   |   |   | 4,516 |   |   |   | 4,516 |   |
| Accrued interest payable                                                         |   |                                   | 14,860    |   |              |   | 14,860 |   |   |   | 12,196 |   |   |   | 12,196 |   |
| Subordinated debentures                                                          |   |                                   | 353,924   |   |              |   | 272,007 |   |   |   | 353,905 |   |   |   | 272,007 |   |
| Liabilities held for sale                                                        |   |                                   | —   |   |              |   | — |   |   |   | 24,381 |   |   |   | 23,164 |   |
| Liabilities of discontinued operations                                           |   |                                   | 499,377   |   |              |   | 472,458 |   |   |   | 1,730,264 |   |   |   | 1,660,206 |   |
|                                                                             |   |                                   |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Off-Balance Sheet Financial Instruments:                                         |   |                                   |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to extend credit, standby letters of credit and financial guarantees |   | $                                      | (685      | )      |              |   | (685 | ) |   |   | (738 | ) |   |   | (738 | ) |

|                                                   |   | March 31, 2010                   |    |   | December 31, 2009 |   |
|--------------------------------------------------------|--------|----------------------------------|---------|--------|-------------------|--------|
|                                                   |   | Notional                         |    |   | Credit            |   |   | Notional |   |   | Credit |   |
|                                                   |   | Amount                           |    |   | Exposure          |   |   | Amount |   |   | Exposure |   |
|                                                   |   | (dollars expressed in thousands) |    |
|                                                   |   |                             |    |   |              |   |   |   |   |   |   |   |
| Cash flow hedges – subordinated debentures (1)   |   | $                                | 125,000 |   |              |   | — |   |   |   | 125,000 |   |   |   | — |   |
| Customer interest rate swap contracts                  |   |                             | 58,633  |   |              |   | 759 |   |   |   | 80,194 |   |   |   | 683 |   |
| Interest rate lock commitments                         |   |                             | 29,000  |   |              |   | 500 |   |   |   | 36,000 |   |   |   | 369 |   |
| Forward commitments to sell mortgage-backed securities |   |                             | 49,000  |   |              |   | 35 |   |   |   | 61,000 |   |   |   | 647 |   |

|   | (1) | In August 2009, First Banks discontinued hedge accounting following the announcement of the deferral of interest payments on the underlying trust preferred securities associated with its subordinated debentures. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|               |   | Notional                         |    |   | Interest Rate |   |   | Interest Rate |   |   | Fair   |   |
|--------------------|--------|----------------------------------|---------|--------|---------------|--------|--------|---------------|--------|--------|--------|--------|
| Maturity Date      |   | Amount                           |    |   | Paid          |   |   | Received      |   |   | Value  |   |
|               |   | (dollars expressed in thousands) |    |
| March 31, 2010:    |   |                             |    |   |          |   |   |          |   |   |   |   |
| July 7, 2011       |   | $                                | 25,000  |   |          |   | 4.40   | %             |   |   | 1.90   | %      |   | $ | (655 | ) |
| December 15, 2011  |   |                             | 50,000  |   |          |   | 4.91   |          |   |   | 2.11   |   |   |   | (1,810 | ) |
| March 30, 2012     |   |                             | 25,000  |   |          |   | 4.71   |          |   |   | 1.90   |   |   |   | (982 | ) |
| December 15, 2012  |   |                             | 25,000  |   |          |   | 5.57   |          |   |   | 2.51   |   |   |   | (1,176 | ) |
|               |   | $                                | 125,000 |   |          |   | 4.90   |          |   |   | 2.11   |   |   | $ | (4,623 | ) |
| December 31, 2009: |   |                             |    |   |          |   |   |          |   |   |   |   |   |   |   |   |
| July 7, 2011       |   | $                                | 25,000  |   |          |   | 4.40   | %             |   |   | 1.93   | %      |   | $ | (644 | ) |
| December 15, 2011  |   |                             | 50,000  |   |          |   | 4.91   |          |   |   | 2.10   |   |   |   | (1,668 | ) |
| March 30, 2012     |   |                             | 25,000  |   |          |   | 4.71   |          |   |   | 1.86   |   |   |   | (884 | ) |
| December 15, 2012  |   |                             | 25,000  |   |          |   | 5.57   |          |   |   | 2.50   |   |   |   | (975 | ) |
|               |   | $                                | 125,000 |   |          |   | 4.90   |          |   |   | 2.10   |   |   | $ | (4,171 | ) |

|   | Ø | In 2006, First Banks entered into a $200.0 million notional amount three-year interest rate swap agreement and a $200.0 million notional amount four-year interest rate swap agreement. The underlying hedged assets were certain variable rate loans within First Banks’ commercial loan portfolio. The swap agreements provided for First Banks to receive a fixed rate of interest and pay an adjustable rate of interest equivalent to the weighted average prime lending rate minus 2.86%. The terms of the swap agreements provided for First Banks to pay and receive interest on a quarterly basis. In December 2008, First Banks terminated these swap agreements. The pre-tax gain of $20.8 million, in aggregate, is being amortized as an increase to interest and fees on loans in the consolidated statements of operations over the remaining terms of the respective interest rate swap agreements, which had contractual maturity dates of September 18, 2009 and September 20, 2010. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                        | March 31, 2010                   |   | December 31, 2009 |   |
|---------------------------------------------------------------------------------------------|----------------------------------|--------|-------------------|--------|
|                                                                                        | Balance Sheet                    |   | Fair Value        |   | Balance Sheet |   | Fair Value |   |
|                                                                                        | Location                         |   | Gain (Loss)       |   | Location |   | Gain (Loss) |   |
|                                                                                        | (dollars expressed in thousands) |   |
| Derivative financial instruments not designated as hedging instruments under ASC Topic 815: |                             |   |              |   |   |   |   |   |
|                                                                                        |                             |   |              |   |   |   |   |   |
| Customer interest rate swap agreements                                                      | Other assets                     |   | $                 | 673    |   | Other assets |   | $ | 589 |   |
| Interest rate lock commitments                                                              | Other assets                     |   |              | 500    |   | Other assets |   |   | 369 |   |
| Forward commitments to sell mortgage-backed securities                                      | Other assets                     |   |              | 35     |   | Other assets |   |   | 647 |   |
| Total derivatives in other assets                                                           |                             |   | $                 | 1,208  |   |   |   | $ | 1,605 |   |
|                                                                                        |                             |   |              |   |   |   |   |   |   |   |
| Interest rate swap agreements – subordinated debentures                               | Other liabilities                |   | $                 | (4,623 | ) | Other liabilities |   | $ | (4,171 | ) |
| Customer interest rate swap agreements                                                      | Other liabilities                |   |              | (450   | ) | Other liabilities |   |   | (345 | ) |
| Total derivatives in other liabilities                                                      |                             |   | $                 | (5,073 | ) |   |   | $ | (4,516 | ) |

|                                                                                                         |   | Three Months Ended               |    |
|--------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                                                         |   | March 31,                        |    |
|                                                                                                         |   | 2010                             |    |   | 2009 |   |
|                                                                                                         |   | (dollars expressed in thousands) |    |
|                                                                                                         |   |                             |    |   |   |   |
| Derivative financial instruments designated as hedging instruments under ASC Topic 815:                      |   |                             |    |   |   |   |
|                                                                                                         |   |                             |    |   |   |   |
| Cash flow hedges – loans:                                                                              |   |                             |    |   |   |   |
| Amount reclassified from accumulated other comprehensive income to interest income on loans                  |   | $                                | 1,915   |   |   |   | 3,938 |   |
|                                                                                                         |   |                             |    |   |   |   |   |   |
| Cash flow hedges – subordinated debentures(1):                                                         |   |                             |    |   |   |   |   |   |
| Amount reclassified from accumulated other comprehensive loss to interest expense on subordinated debentures |   |                             | — |   |   |   | 428 |   |
| Amount of unrealized loss recognized in other comprehensive loss                                             |   |                             | — |   |   |   | (859 | ) |

| (1) | In August 2009, First Banks discontinued hedge accounting following the announcement of the deferral of interest payments on the underlying trust preferred securities associated with its subordinated debentures. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                        |   | Three Months Ended               |   |
|---------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                        |   | March 31,                        |   |
|                                                                                        |   | 2010                             |   |   | 2009 |   |
|                                                                                        |   | (dollars expressed in thousands) |   |
| Derivative financial instruments not designated as hedging instruments under ASC Topic 815: |   |                             |   |   |   |   |
|                                                                                        |   |                             |   |   |   |   |
| Interest rate swap agreements – subordinated debentures:                              |   |                             |   |   |   |   |
| Net loss on derivative instruments                                                          |   | $                                | (1,328 | ) |   |   | — |   |
|                                                                                        |   |                             |   |   |   |   |   |   |
| Customer interest rate swap agreements:                                                     |   |                             |   |   |   |   |   |   |
| Net gain on derivative instruments                                                          |   |                             | 1      |   |   |   | 401 |   |
|                                                                                        |   |                             |   |   |   |   |   |   |
| Interest rate lock commitments:                                                             |   |                             |   |   |   |   |   |   |
| Gain on loans sold and held for sale                                                        |   |                             | 131    |   |   |   | 1,084 |   |
|                                                                                        |   |                             |   |   |   |   |   |   |
| Forward commitments to sell mortgage-backed securities:                                     |   |                             |   |   |   |   |   |   |
| Gain on loans sold and held for sale                                                        |   |                             | (612   | ) |   |   | (1,348 | ) |

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Item 

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

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

|   | Ø | The uncertainties in estimating the fair value of developed real estate and undeveloped land in light of declining demand for such assets and continuing lack of liquidity in the real estate markets; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Negative developments and disruptions in the credit and lending markets, including the impact of the ongoing 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; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | 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; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | Ø | Rising unemployment and its impact on our customers’ savings rates and their ability to service debt obligations; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | Ø | The sufficiency of our allowance for loan losses to absorb the amount of actual losses inherent in our existing loan portfolio; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | 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; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Liquidity risks; |
|--------|--------|------------------|

|   | Ø | The ability to successfully acquire low cost deposits or alternative funding; |
|--------|--------|-------------------------------------------------------------------------------|

|   | Ø | 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; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | Ø | The ability of First Bank to pay dividends to its parent holding company; |
|--------|--------|---------------------------------------------------------------------------|

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

|   | Ø | The impact of possible future goodwill and other material impairment charges; |
|--------|--------|-------------------------------------------------------------------------------|

|   | Ø | The effects of increased Federal Deposit Insurance Corporation deposit insurance assessments; |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | Ø | 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; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Our ability to raise sufficient capital, absent the successful completion of all or a significant portion of our Capital Plan, as further discussed under “ 3⁄4Recent Developments – Capital Plan;” |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | 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; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The effects of and changes in trade and monetary and fiscal policies and laws, including, but not limited to, the interest rate policies of the Federal Open Market Committee of the Federal Reserve Board of Governors, the Federal Deposit Insurance Corporation's Temporary Liquidity Guarantee Program and the U.S. Treasury's Capital Purchase Program and Troubled Asset Relief Program authorized by the Emergency Economic Stabilization Act of 2008. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | Ø | Volatility and disruption in national and international financial markets; |
|--------|--------|----------------------------------------------------------------------------|

|   | Ø | Government intervention in the U.S. financial system; |
|--------|--------|-------------------------------------------------------|

|   | Ø | Changes in consumer spending, borrowings and savings habits; |
|--------|--------|--------------------------------------------------------------|

|   | Ø | The impact of laws and regulations applicable to us and changes therein; |
|--------|--------|--------------------------------------------------------------------------|

|   | Ø | 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; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | Ø | 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; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Our ability to control the composition of our loan portfolio without adversely affecting interest income; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | Ø | Possible changes in the creditworthiness of customers and the possible impairment of collectability of loans; |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | Ø | The geographic dispersion of our offices; |
|--------|--------|-------------------------------------------|

|   | Ø | The impact our hedging activities may have on our operating results; |
|--------|--------|----------------------------------------------------------------------|

|   | Ø | The highly regulated environment in which we operate; |
|--------|--------|-------------------------------------------------------|

|   | Ø | Regulatory actions that impact First Banks, Inc. and First Bank, including the regulatory agreements entered into between the Company, First Bank, the Federal Reserve Bank of St. Louis and the State of Missouri Division of Finance, as further discussed under “ 3⁄4Recent Developments – Regulatory Matters;” and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | Ø | First Bank Business Capital, Inc., or FBBC; |
|--------|--------|---------------------------------------------|

|   | Ø | Missouri Valley Partners, Inc., or MVP; |
|--------|--------|-----------------------------------------|

|   | Ø | WIUS, Inc. and its wholly owned subsidiary, WIUS of California, Inc., collectively WIUS (formerly UPAC); |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | Ø | FB Holdings, LLC, or FB Holdings; |
|--------|--------|-----------------------------------|

|   | Ø | Small Business Loan Source LLC, or SBLS LLC; |
|--------|--------|----------------------------------------------|

|   | Ø | ILSIS, Inc.; and |
|--------|--------|------------------|

|   | Ø | FBIN, Inc. |
|--------|--------|------------|

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|   | Ø | The sale of certain assets and the transfer of certain liabilities of our Northern Illinois operations to First Mid-Illinois Bank & Trust, N.A., or First Mid-Illinois, under a Branch Purchase and Assumption Agreement dated May 7, 2010. Under the terms of the agreement, First Mid-Illinois is to assume approximately $350.0 million of deposits associated with 10 of our Northern Illinois retail branches, including certain commercial deposit relationships, for a premium of approximately 4.77%. First Mid-Illinois is also expected to purchase approximately $150.0 million of loans as well as certain other assets at par value, including premises and equipment, associated with our Northern Illinois operations. The transaction, which is subject to regulatory approvals and certain closing conditions, is expected to be completed during the third quarter of 2010. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of certain assets and the transfer of certain liabilities of our Texas operations, or Texas Region, to Prosperity Bank, or Prosperity, under a Purchase and Assumption Agreement dated February 8, 2010. We completed the transaction with Prosperity on April 30, 2010. Under the terms of the agreement, Prosperity assumed approximately $492.2 million of deposits associated with our 19 Texas retail branches, including certain commercial deposit relationships, for a premium of approximately 5.5%, or $26.9 million. Prosperity also purchased approximately $96.7 million of loans as well as certain other assets at par value, including premises and equipment, associated with our Texas operations. We recognized a pre-tax gain on sale related to this transaction of approximately $5.0 million during the second quarter of 2010 after the write-off of goodwill and intangible assets allocated to Texas of approximately $20.0 million. In addition, this transaction reduced our risk-weighted assets by approximately $117.0 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of certain assets and the transfer of certain liabilities of our Chicago operations, or Chicago, to FirstMerit Bank, N.A., or FirstMerit, under a Purchase and Assumption Agreement, dated November 11, 2009. We completed the transaction with FirstMerit on February 19, 2010. Under the terms of the agreement, FirstMerit purchased approximately $301.2 million in loans as well as certain other assets at par value, including premises and equipment, associated with our Chicago operations. FirstMerit also assumed substantially all of the deposits associated with our 24 Chicago retail branches, including certain commercial deposit relationships, which totaled approximately $1.20 billion, for a premium of 3.50%, or approximately $42.1 million. We recognized a gain on sale related to this transaction of approximately $8.4 million during the first quarter of 2010 after the write-off of goodwill and intangible assets allocated to Chicago of approximately $26.3 million. In addition, this transaction reduced our risk-weighted assets by approximately $346.0 million. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of certain asset-based lending loans to FirstMerit in conjunction with the Chicago transaction. On November 11, 2009, FBBC, First Bank’s wholly owned asset based lending subsidiary, entered into a Loan Purchase Agreement that provided for the sale of certain loans to FirstMerit. Under the terms of the agreement, FirstMerit purchased approximately $101.5 million of loans at a discount of approximately 8.5%. In conjunction with this transaction, which we completed on December 16, 2009, we recorded a loss on the sale of loans of $6.1 million during the fourth quarter of 2009 and reduced our risk-weighted assets by approximately $115.0 million. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Ø | The sale of approximately $141.3 million of loans associated with our premium financing subsidiary, UPAC, to PFS Holding Company, Inc., Premium Financing Specialists, Inc., Premium Financing Specialists of California, Inc. and Premium Financing Specialists of the South, Inc., under a Purchase and Sale Agreement, dated December 3, 2009. We completed the sale on December 31, 2009 which resulted in a pre-tax loss on the sale of approximately $13.1 million during the fourth quarter of 2009 after the write-off of goodwill and intangible assets allocated to the sale of approximately $20.0 million. This transaction also reduced our risk-weighted assets by approximately $146.0 million. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of approximately $64.4 million of restaurant franchise loans during the fourth quarter of 2009 to another financial institution at a small discount. We completed the sale of these loans on December 30, 2009 which resulted in a pre-tax loss of approximately $1.1 million during the fourth quarter of 2009. In addition, this transaction reduced our risk-weighted assets by approximately $64.4 million. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of Adrian N. Baker & Company, or ANB, to AHM Corporation Holdings, Inc., or AHM, under a Stock Purchase Agreement dated September 18, 2009. Under the terms of the agreement, AHM purchased all of the capital stock of ANB for a purchase price of approximately $14.3 million. We completed the sale of ANB on September 30, 2009 and recorded a pre-tax gain of approximately $120,000 during 2009 after the write-off of goodwill and intangible assets allocated to ANB of approximately $13.0 million. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of MVP to Stifel Financial Corp., or Stifel, under a Stock Purchase Letter Agreement dated March 5, 2010. Under the terms of the agreement, Stifel purchased all of the capital stock of MVP for a purchase price of $100,000. We completed the sale of MVP on April 15, 2010. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of two of our Illinois branch offices. On August 27, 2009, we entered into a Branch Purchase and Assumption Agreement providing for the sale of our Lawrenceville, Illinois branch office, or Lawrenceville Branch, to The Peoples State Bank of Newton, or Peoples. Under the terms of the agreement, Peoples assumed approximately $23.7 million of deposits for a premium of 5.0% as well as certain other liabilities, and purchased approximately $13.5 million of loans as well as certain other assets, including premises and equipment, at par value. We completed the transaction on January 22, 2010, which resulted in a pre-tax gain of approximately $168,000 during the first quarter of 2010 after the write-off of goodwill allocated to the sale of approximately $1.0 million. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | On August 31, 2009, we entered into a Branch Purchase and Assumption Agreement providing for the sale of our Springfield, Illinois branch office, or Springfield Branch, to First Bankers Trust Company, National Association, a subsidiary of First Bankers Trustshares, Inc., or First Bankers. Under the terms of the agreement, First Bankers assumed approximately $20.1 million of deposits for a premium of 5.01% as well as certain other liabilities, and purchased approximately $887,000 of loans as well as certain other assets, including premises and equipment, at par value. We completed the transaction on November 19, 2009, which resulted in a pre-tax gain of approximately $309,000 during the fourth quarter of 2009 after the write-off of goodwill allocated to the sale of approximately $1.0 million. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The reduction of First Banks’ net risk-weighted assets to $6.78 billion at March 31, 2010, representing decreases of $793.7 million from $7.56 billion at December 31, 2009, $2.71 billion from $9.48 billion at December 31, 2008 and $3.47 billion from $10.25 billion at December 31, 2007. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Significant reductions in certain controllable expenses including, but not limited to, compensation, marketing and business development, information technology fees, travel and entertainment and office supplies. These expense reductions resulted from a number of profit improvement initiatives that we implemented in conjunction with our Profit Improvement Plan. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Reduction of our concentration in real estate lending and further diversification of our loan portfolio from real estate lending to commercial and industrial lending; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Reduction of our unfunded loan commitments with an original maturity greater than one year; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | Ø | Sale, merger or closure of individual branches or selected branch groupings; |
|--------|--------|------------------------------------------------------------------------------|

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|   | Ø | Sale and/or aggressive reduction of the retained assets and liabilities associated with our Chicago and Texas Regions; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Exploration of possible capital planning strategies to increase the overall level of Tier 1 risk-based capital at our holding company. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

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|   | Ø | The sale of our Chicago Region on February 19, 2010, resulting in a cash outlay of approximately $832.5 million; |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | Ø | An increase in our investment securities portfolio of $347.4 million during the three months ended March 31, 2010; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The prepayment of $200.0 million of FHLB advances; partially offset by |
|--------|--------|------------------------------------------------------------------------|

|   | Ø | Customer repayments on loans significantly exceeding the decrease in our deposit balances of $40.4 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

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|   | Ø | A net loss, including discontinued operations, of $27.6 million; |
|--------|--------|------------------------------------------------------------------|

|   | Ø | Dividends declared of $4.2 million on our Class C Preferred Stock and Class D Preferred Stock; and |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | Ø | A decrease in noncontrolling interest in subsidiaries of $437,000 associated with net losses in FB Holdings; partially offset by |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A reduction in accumulated other comprehensive loss of $1.9 million primarily associated with changes in unrealized gains and losses on derivative financial instruments and available-for-sale investment securities. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A provision for loan losses of $42.0 million for the three months ended March 31, 2010, compared to $108.0 million for the comparable period in 2009; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Net interest income of $64.1 million for the three months ended March 31, 2010, compared to $71.6 million for the comparable period in 2009, which contributed to a decline in our net interest margin to 2.85% for the three months ended March 31, 2010, compared to 3.19% for the comparable period in 2009; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Ø | Noninterest income of $16.2 million for the three months ended March 31, 2010, compared to $20.3 million for the comparable period in 2009; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Noninterest expense of $68.4 million for the three months ended March 31, 2010, compared to $64.4 million for the comparable period in 2009; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A provision for income taxes of $105,000 for the three months ended March 31, 2010, compared to a benefit for income taxes of $543,000 for the comparable period in 2009; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Income from discontinued operations, net of tax, of $2.2 million for the three months ended March 31, 2010, compared to a net loss from discontinued operations of $11.5 million for the comparable period in 2009. See Note 2 to our consolidated financial statements for further discussion of discontinued operations; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A net loss attributable to noncontrolling interest in subsidiaries of $437,000 for the three months ended March 31, 2010, compared to $2.0 million for the comparable period in 2009. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                             |   | Three Months Ended March 31,     |      |
|--------------------------------------------------|--------|----------------------------------|-----------|
|                                             |   | 2010                             |      |   | 2009 |   |
|                                             |   |                             |      |   | Interest |   |   |   |   |   |   |   |   | Interest |   |   |   |   |
|                                             |   | Average                          |      |   | Income/ |   |   | Yield/ |   |   | Average |   |   | Income/ |   |   | Yield/ |   |
|                                             |   | Balance                          |      |   | Expense |   |   | Rate |   |   | Balance |   |   | Expense |   |   | Rate |   |
|                                             |   | (dollars expressed in thousands) |      |
| ASSETS                                           |   |                             |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |                             |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                         |   |                             |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans (1) (2) (3) (4)                            |   | $                                | 6,454,297 |   |   |   | 81,120 |   |   |   | 5.10 | % |   | $ | 7,997,825 |   |   |   | 101,524 |   |   |   | 5.15 | % |
| Investment securities (4)                        |   |                             | 676,395   |   |   |   | 5,290 |   |   |   | 3.17 |   |   |   | 607,047 |   |   |   | 7,230 |   |   |   | 4.83 |   |
| FHLB and FRB stock                               |   |                             | 62,132    |   |   |   | 583 |   |   |   | 3.81 |   |   |   | 51,243 |   |   |   | 401 |   |   |   | 3.17 |   |
| Short-term investments                           |   |                             | 1,952,830 |   |   |   | 1,220 |   |   |   | 0.25 |   |   |   | 485,319 |   |   |   | 510 |   |   |   | 0.43 |   |
| Total interest-earning assets                    |   |                             | 9,145,654 |   |   |   | 88,213 |   |   |   | 3.91 |   |   |   | 9,141,434 |   |   |   | 109,665 |   |   |   | 4.87 |   |
| Nonearning assets                                |   |                             | 479,995   |   |   |   |   |   |   |   |   |   |   |   | 734,953 |   |   |   |   |   |   |   |   |   |
| Assets of discontinued operations                |   |                             | 361,625   |   |   |   |   |   |   |   |   |   |   |   | 707,279 |   |   |   |   |   |   |   |   |   |
| Total assets                                     |   | $                                | 9,987,274 |   |   |   |   |   |   |   |   |   |   | $ | 10,583,666 |   |   |   |   |   |   |   |   |   |
|                                             |   |                             |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND                                  |   |                             |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY                       |   |                             |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |                             |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                    |   |                             |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits:                       |   |                             |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand                          |   | $                                | 915,629   |   |   |   | 386 |   |   |   | 0.17 | % |   | $ | 839,993 |   |   |   | 383 |   |   |   | 0.18 | % |
| Savings and money market                         |   |                             | 2,274,980 |   |   |   | 4,215 |   |   |   | 0.75 |   |   |   | 2,281,456 |   |   |   | 8,083 |   |   |   | 1.44 |   |
| Time deposits of $100 or more                    |   |                             | 943,934   |   |   |   | 4,618 |   |   |   | 1.98 |   |   |   | 926,860 |   |   |   | 7,686 |   |   |   | 3.36 |   |
| Other time deposits                              |   |                             | 1,683,924 |   |   |   | 8,267 |   |   |   | 1.99 |   |   |   | 1,818,789 |   |   |   | 14,760 |   |   |   | 3.29 |   |
| Total interest-bearing deposits                  |   |                             | 5,818,467 |   |   |   | 17,486 |   |   |   | 1.22 |   |   |   | 5,867,098 |   |   |   | 30,912 |   |   |   | 2.14 |   |
| Other borrowings                                 |   |                             | 758,719   |   |   |   | 3,388 |   |   |   | 1.81 |   |   |   | 446,684 |   |   |   | 2,334 |   |   |   | 2.12 |   |
| Notes payable (5)                                |   |                             | —   |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 19 |   |   |   | — |   |
| Subordinated debentures (3)                      |   |                             | 353,915   |   |   |   | 3,100 |   |   |   | 3.55 |   |   |   | 353,838 |   |   |   | 4,506 |   |   |   | 5.16 |   |
| Total interest-bearing liabilities               |   |                             | 6,931,101 |   |   |   | 23,974 |   |   |   | 1.40 |   |   |   | 6,667,620 |   |   |   | 37,771 |   |   |   | 2.30 |   |
| Noninterest-bearing liabilities:                 |   |                             |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                  |   |                             | 1,223,864 |   |   |   |   |   |   |   |   |   |   |   | 1,074,977 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                |   |                             | 99,246    |   |   |   |   |   |   |   |   |   |   |   | 102,427 |   |   |   |   |   |   |   |   |   |
| Liabilities of discontinued operations           |   |                             | 1,217,080 |   |   |   |   |   |   |   |   |   |   |   | 1,755,404 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                |   |                             | 9,471,291 |   |   |   |   |   |   |   |   |   |   |   | 9,600,428 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                       |   |                             | 515,983   |   |   |   |   |   |   |   |   |   |   |   | 983,238 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity |   | $                                | 9,987,274 |   |   |   |   |   |   |   |   |   |   | $ | 10,583,666 |   |   |   |   |   |   |   |   |   |
| Net interest income                              |   |                             |      |   |   |   | 64,239 |   |   |   |   |   |   |   |   |   |   |   | 71,894 |   |   |   |   |   |
| Interest rate spread                             |   |                             |      |   |   |   |   |   |   |   | 2.51 |   |   |   |   |   |   |   |   |   |   |   | 2.57 |   |
| Net interest margin (6)                          |   |                             |      |   |   |   |   |   |   |   | 2.85 | % |   |   |   |   |   |   |   |   |   |   | 3.19 | % |

| (1) | For purposes of these calculations, nonaccrual loans are included in average loan amounts. |
|-----|--------------------------------------------------------------------------------------------|

| (2) | Interest income on loans includes loan fees. |
|-----|----------------------------------------------|

| (3) | Interest income and interest expense includes the effects of interest rate swap agreements. |
|-----|---------------------------------------------------------------------------------------------|

| (4) | Information is presented on a tax-equivalent basis assuming a tax rate of 35%. The tax-equivalent adjustments were approximately $136,000 and $248,000 for the three months ended March 31, 2010 and 2009, respectively. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Interest expense on our notes payable reflects commitment fees for the three months ended March 31, 2009. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (6) | Net interest margin is the ratio of net interest income (expressed on a tax-equivalent basis) to average interest-earning assets. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

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|                              |   | Increase (Decrease) Attributable to Change in: |    |
|-----------------------------------|--------|------------------------------------------------|---------|
|                              |   | Three Months Ended March 31,                   |    |
|                              |   | 2010 Compared to 2009                          |    |
|                              |   |                                           |    |   |   |   |   | Net |   |
|                              |   | Volume                                         |    |   | Rate |   |   | Change |   |
|                              |   | (dollars expressed in thousands)               |    |
|                              |   |                                           |    |   |   |   |   |   |   |
| Interest earned on:               |   |                                           |    |   |   |   |   |   |   |
| Loans: (1) (2) (3)                |   |                                           |    |   |   |   |   |   |   |
| Taxable                           |   | $                                              | (19,115 | ) |   |   | (1,164 | ) |   |   | (20,279 | ) |
| Tax-exempt (4)                    |   |                                           | (262    | ) |   |   | 137 |   |   |   | (125 | ) |
| Investment securities:            |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Taxable                           |   |                                           | 881     |   |   |   | (2,627 | ) |   |   | (1,746 | ) |
| Tax-exempt (4)                    |   |                                           | (236    | ) |   |   | 42 |   |   |   | (194 | ) |
| FHLB and FRB stock                |   |                                           | 93      |   |   |   | 89 |   |   |   | 182 |   |
| Short-term investments            |   |                                           | 1,002   |   |   |   | (292 | ) |   |   | 710 |   |
| Total interest income             |   |                                           | (17,637 | ) |   |   | (3,815 | ) |   |   | (21,452 | ) |
| Interest paid on:                 |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits  |   |                                           | 27      |   |   |   | (24 | ) |   |   | 3 |   |
| Savings and money market deposits |   |                                           | (23     | ) |   |   | (3,845 | ) |   |   | (3,868 | ) |
| Time deposits                     |   |                                           | (925    | ) |   |   | (8,636 | ) |   |   | (9,561 | ) |
| Other borrowings                  |   |                                           | 1,436   |   |   |   | (382 | ) |   |   | 1,054 |   |
| Notes payable (5)                 |   |                                           | (19     | ) |   |   | — |   |   |   | (19 | ) |
| Subordinated debentures (3)       |   |                                           | 1       |   |   |   | (1,407 | ) |   |   | (1,406 | ) |
| Total interest expense            |   |                                           | 497     |   |   |   | (14,294 | ) |   |   | (13,797 | ) |
| Net interest income               |   | $                                              | (18,134 | ) |   |   | 10,479 |   |   |   | (7,655 | ) |

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

|   | (2) | Interest income on loans includes loan fees. |
|--------|-----|----------------------------------------------|

|   | (3) | Interest income and interest expense include the effect of interest rate swap agreements. |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (4) | Information is presented on a tax-equivalent basis assuming a tax rate of 35%. |
|--------|-----|--------------------------------------------------------------------------------|

|   | (5) | Interest expense on our notes payable reflects commitment fees. |
|--------|-----|-----------------------------------------------------------------|

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|   | Ø | The noncontrolling interest in the net loss in FB Holdings of $437,000 and $1.5 million for the three months ended March 31, 2010 and 2009, respectively. The decrease is reflective of lower balances of nonaccrual loans and other real estate in FB Holdings during the first three months of 2010 as compared to the same period in 2009; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The noncontrolling interest in the net loss in SBLS LLC of $485,000 for the three months ended March 31, 2009. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|                                                   |   | March 31, 2010                   |    |   | December 31, 2009 |   |
|--------------------------------------------------------|--------|----------------------------------|---------|--------|-------------------|--------|
|                                                   |   | Notional                         |    |   | Credit            |   |   | Notional |   |   | Credit |   |
|                                                   |   | Amount                           |    |   | Exposure          |   |   | Amount |   |   | Exposure |   |
|                                                   |   | (dollars expressed in thousands) |
|                                                   |   |                             |    |   |              |   |   |   |   |   |   |   |
| Cash flow hedges – subordinated debentures (1)   |   | $                                | 125,000 |   |              |   | — |   |   |   | 125,000 |   |   |   | — |   |
| Customer interest rate swap agreements                 |   |                             | 58,633  |   |              |   | 759 |   |   |   | 80,194 |   |   |   | 683 |   |
| Interest rate lock commitments                         |   |                             | 29,000  |   |              |   | 500 |   |   |   | 36,000 |   |   |   | 369 |   |
| Forward commitments to sell mortgage-backed securities |   |                             | 49,000  |   |              |   | 35 |   |   |   | 61,000 |   |   |   | 647 |   |

|   | (1) | In August 2009, we discontinued hedge accounting following the announcement of the deferral of interest payments on the underlying trust preferred securities associated with our subordinated debentures. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                               |   | March 31,                        |      |   | December 31, |   |
|----------------------------------------------------|--------|----------------------------------|-----------|--------|--------------|--------|
|                                               |   | 2010                             |      |   | 2009         |   |
|                                               |   | (dollars expressed in thousands) |      |
|                                               |   |                             |      |   |         |   |
| Commercial, financial and agricultural             |   | $                                | 1,536,701 |   |         |   | 1,692,922 |   |
| Real estate construction and development           |   |                             | 970,524   |   |         |   | 1,052,922 |   |
| Real estate mortgage:                              |   |                             |      |   |         |   |   |   |
| One-to-four family residential                     |   |                             | 1,220,479 |   |         |   | 1,279,166 |   |
| Multi-family residential                           |   |                             | 207,685   |   |         |   | 223,044 |   |
| Commercial real estate                             |   |                             | 2,190,402 |   |         |   | 2,269,372 |   |
| Consumer and installment, net of unearned discount |   |                             | 38,241    |   |         |   | 48,183 |   |
| Loans held for sale                                |   |                             | 34,883    |   |         |   | 42,684 |   |
| Loans, net of unearned discount                    |   | $                                | 6,198,915 |   |         |   | 6,608,293 |   |

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|                                 |   | March 31,                        |      |   | December 31, |   |
|--------------------------------------|--------|----------------------------------|-----------|--------|--------------|--------|
|                                 |   | 2010                             |      |   | 2009         |   |
|                                 |   | (dollars expressed in thousands) |      |
| Mortgage Division, excluding Florida |   | $                                | 352,355   |   |         |   | 375,764 |   |
| Florida                              |   |                             | 298,030   |   |         |   | 320,235 |   |
| Northern California                  |   |                             | 795,351   |   |         |   | 844,526 |   |
| Southern California                  |   |                             | 1,666,497 |   |         |   | 1,775,562 |   |
| Chicago                              |   |                             | 343,687   |   |         |   | 368,434 |   |
| Missouri                             |   |                             | 1,280,195 |   |         |   | 1,365,168 |   |
| Texas                                |   |                             | 499,137   |   |         |   | 517,066 |   |
| First Bank Business Capital, Inc     |   |                             | 73,555    |   |         |   | 75,254 |   |
| Northern and Southern Illinois       |   |                             | 656,428   |   |         |   | 729,344 |   |
| Other                                |   |                             | 233,680   |   |         |   | 236,940 |   |
| Total                                |   | $                                | 6,198,915 |   |         |   | 6,608,293 |   |

|   | Ø | A decrease of $156.2 million in our commercial, financial and agricultural portfolio, reflecting loan charge-offs of $6.5 million, as further discussed below, and portfolio runoff associated with a decline in internal production and reduced loan demand within our markets; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease of $82.4 million in our real estate construction and development portfolio primarily attributable to loan charge-offs of $39.1 million, transfers to other real estate of $16.1 million and other loan activity. The following table summarizes the composition of our real estate construction and development portfolio by region as of March 31, 2010 and December 31, 2009: |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | March 31,                        |    |   | December 31, |   |
|--------------------------------|--------|----------------------------------|---------|--------|--------------|--------|
|                           |   | 2010                             |    |   | 2009         |   |
|                           |   | (dollars expressed in thousands) |    |
| Northern California            |   | $                                | 97,938  |   |         |   | 100,543 |   |
| Southern California            |   |                             | 407,741 |   |         |   | 435,051 |   |
| Chicago                        |   |                             | 104,332 |   |         |   | 115,141 |   |
| Missouri                       |   |                             | 130,385 |   |         |   | 152,736 |   |
| Texas                          |   |                             | 176,597 |   |         |   | 185,084 |   |
| Florida                        |   |                             | 8,061   |   |         |   | 12,792 |   |
| Northern and Southern Illinois |   |                             | 44,091  |   |         |   | 50,713 |   |
| Other                          |   |                             | 1,379   |   |         |   | 862 |   |
| Total                          |   | $                                | 970,524 |   |         |   | 1,052,922 |   |

|   | Ø | A decrease of $58.7 million in our one-to-four family residential real estate loan portfolio primarily attributable to charge-offs of $24.6 million, transfers to other real estate of $6.7 million and principal payments. The following table summarizes the composition of our one-to-four family residential real estate loan portfolio as of March 31, 2010 and December 31, 2009: |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                           |   | March 31,                        |      |   | December 31, |   |
|------------------------------------------------|--------|----------------------------------|-----------|--------|--------------|--------|
|                                           |   | 2010                             |      |   | 2009         |   |
|                                           |   | (dollars expressed in thousands) |      |
| One-to-four family residential real estate:    |   |                             |      |   |         |   |
| Non-Mortgage Division portfolio                |   | $                                | 308,198   |   |         |   | 332,653 |   |
| Mortgage Division portfolio, excluding Florida |   |                             | 324,598   |   |         |   | 340,201 |   |
| Florida portfolio                              |   |                             | 163,320   |   |         |   | 179,985 |   |
| Home equity portfolio                          |   |                             | 424,363   |   |         |   | 426,327 |   |
| Total                                          |   | $                                | 1,220,479 |   |         |   | 1,279,166 |   |

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|   | Ø | A decrease of $15.4 million in our multi-family residential real estate portfolio primarily attributable to loan charge-offs of $2.7 million and portfolio runoff associated with a decline in internal production and reduced loan demand within our markets; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease of $79.0 million in our commercial real estate portfolio primarily attributable to loan charge-offs of $15.1 million, transfers to other real estate of $10.8 million and our efforts to reduce our exposure to commercial real estate in the current economic environment; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease of $9.9 million in our consumer and installment portfolio, net of unearned discount, reflecting an increase in unearned discount of $1.7 million from December 31, 2009 to March 31, 2010 and portfolio runoff associated with a decline in internal production and reduced loan demand within our markets; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease of $7.8 million in our loans held for sale portfolio primarily resulting from the timing of loan originations and subsequent sales into the secondary mortgage and small business markets. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                    |   | March 31,                        |      |   | December 31, |   |
|-------------------------------------------------------------------------|--------|----------------------------------|-----------|--------|--------------|--------|
|                                                                    |   | 2010                             |      |   | 2009         |   |
|                                                                    |   | (dollars expressed in thousands) |      |
| Nonperforming Assets (1):                                               |   |                             |      |   |         |   |
| Nonaccrual loans:                                                       |   |                             |      |   |         |   |
| Commercial, financial and agricultural                                  |   | $                                | 51,564    |   |         |   | 41,408 |   |
| Real estate construction and development                                |   |                             | 394,265   |   |         |   | 407,077 |   |
| One-to-four family residential mortgage                                 |   |                             | 105,689   |   |         |   | 112,236 |   |
| Multi-family residential mortgage                                       |   |                             | 7,397     |   |         |   | 14,734 |   |
| Commercial real estate mortgage                                         |   |                             | 98,736    |   |         |   | 115,312 |   |
| Consumer and installment                                                |   |                             | 266       |   |         |   | 337 |   |
| Total nonaccrual loans                                                  |   |                             | 657,917   |   |         |   | 691,104 |   |
|                                                                    |   |                             |      |   |         |   |   |   |
| Other real estate                                                       |   |                             | 134,236   |   |         |   | 125,226 |   |
| Other repossessed assets                                                |   |                             | 1,706     |   |         |   | 1,685 |   |
| Total nonperforming assets                                              |   | $                                | 793,859   |   |         |   | 818,015 |   |
|                                                                    |   |                             |      |   |         |   |   |   |
| Loans, net of unearned discount                                         |   | $                                | 6,198,915 |   |         |   | 6,608,293 |   |
|                                                                    |   |                             |      |   |         |   |   |   |
| Performing troubled debt restructurings                                 |   | $                                | 55,493    |   |         |   | 54,336 |   |
|                                                                    |   |                             |      |   |         |   |   |   |
| Loans past due 90 days or more and still accruing                       |   | $                                | 3,827     |   |         |   | 3,807 |   |
|                                                                    |   |                             |      |   |         |   |   |   |
| Ratio of:                                                               |   |                             |      |   |         |   |   |   |
| Allowance for loan losses to loans                                      |   |                             | 4.03      | %      |         |   | 4.03 | % |
| Nonaccrual loans to loans                                               |   |                             | 10.61     |   |         |   | 10.46 |   |
| Allowance for loan losses to nonaccrual loans                           |   |                             | 38.01     |   |         |   | 38.55 |   |
| Nonperforming assets to loans, other real estate and repossessed assets |   |                             | 12.53     |   |         |   | 12.15 |   |

|   | (1) | During the first quarter of 2010, the Company modified its definition of nonperforming assets to exclude performing troubled debt restructurings because these loans were performing in accordance with their current or modified terms. Prior periods have been adjusted for this reclassification. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease in nonaccrual loans of $12.8 million in our real estate construction and development loan portfolio driven by charge-offs of $39.1 million and transfers to other real estate of $16.1 million, partially offset by additions during the quarter. Although the level of deterioration within this portfolio has slowed as compared to recent quarters, we continue to experience deterioration as a result of weak economic conditions and significant declines in real estate values and we expect these trends to continue until market conditions stabilize, both on a nationwide basis and in our primary market areas; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease in nonaccrual loans of $6.5 million in our one-to-four family residential real estate loan portfolio primarily driven by charge-offs of $24.6 million and transfers to other real estate of $6.7 million, partially offset by additions during the quarter driven by current market conditions and the overall deterioration of Alt A and sub-prime residential mortgage loan products experienced throughout the mortgage banking industry. Our one-to-four family residential nonaccrual loans in our Mortgage Banking division, excluding Florida, decreased $1.4 million, from $63.7 million at December 31, 2009 to $62.2 million at March 31, 2010. Our one-to-four family residential nonaccrual loans in our Florida region decreased $6.1 million, from $30.8 million at December 31, 2009 to $24.7 million at March 31, 2010. These decreases were partially offset by an increase of $1.0 million in our Non-Mortgage division portfolio; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease in nonaccrual loans of $7.3 million in our multi-family residential loan portfolio primarily driven by charge-offs of $2.7 million and transfers to other real estate of $589,000. At March 31, 2010, approximately 3.6% of this portfolio is on nonaccrual status; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Ø | A decrease in nonaccrual loans of $16.6 million in our commercial real estate portfolio primarily driven by charge-offs of $15.1 million and transfers to other real estate of $10.8 million, partially offset by new additions resulting from continued weak economic conditions and significant declines in real estate values. At March 31, 2010, approximately 4.5% of this portfolio is on nonaccrual status. Our commercial real estate portfolio of $2.19 billion is approximately 50.5% owner occupied and 49.5% non-owner occupied at March 31, 2010, and approximately 4.1% and 5.2% of our owner occupied and non-owner occupied commercial real estate portfolio, respectively, is on nonaccrual status at March 31, 2010. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | An increase in nonaccrual loans of $10.2 million in our commercial, financial and agricultural portfolio primarily driven by new additions during the quarter partially offset by charge-offs of $6.5 million. At March 31, 2010, approximately 3.4% of this portfolio is on nonaccrual status; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | March 31,                        |    |   | December 31, |   |
|--------------------------------------|--------|----------------------------------|---------|--------|--------------|--------|
|                                 |   | 2010                             |    |   | 2009         |   |
|                                 |   | (dollars expressed in thousands) |    |
|                                 |   |                             |    |   |         |   |
| Mortgage Division, excluding Florida |   | $                                | 69,001  |   |         |   | 71,082 |   |
| Florida                              |   |                             | 48,952  |   |         |   | 60,762 |   |
| Northern California                  |   |                             | 70,657  |   |         |   | 63,528 |   |
| Southern California                  |   |                             | 264,867 |   |         |   | 265,794 |   |
| Chicago                              |   |                             | 107,955 |   |         |   | 119,436 |   |
| Missouri                             |   |                             | 97,217  |   |         |   | 112,837 |   |
| Texas                                |   |                             | 80,758  |   |         |   | 78,389 |   |
| First Bank Business Capital, Inc.    |   |                             | 2,234   |   |         |   | 3,090 |   |
| Northern and Southern Illinois       |   |                             | 24,705  |   |         |   | 21,807 |   |
| Other                                |   |                             | 27,513  |   |         |   | 21,290 |   |
| Total nonperforming assets           |   | $                                | 793,859 |   |         |   | 818,015 |   |

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|                                          |   | March 31,                        |   |   | December 31, |   |
|-----------------------------------------------|--------|----------------------------------|--------|--------|--------------|--------|
|                                          |   | 2010                             |   |   | 2009         |   |
|                                          |   | (dollars expressed in thousands) |   |
|                                          |   |                             |   |   |         |   |
| Commercial, financial and agricultural        |   | $                                | 1,749  |   |         |   | 18,864 |   |
| Real estate mortgage:                         |   |                             |   |   |         |   |   |   |
| One-to-four family residential                |   |                             | 34,161 |   |         |   | 35,472 |   |
| Commercial real estate                        |   |                             | 19,583 |   |         |   | — |   |
| Total performing troubled debt restructurings |   | $                                | 55,493 |   |         |   | 54,336 |   |

|                                     |   | March 31,                        |    |   | December 31, |   |
|------------------------------------------|--------|----------------------------------|---------|--------|--------------|--------|
|                                     |   | 2010                             |    |   | 2009         |   |
|                                     |   | (dollars expressed in thousands) |    |
|                                     |   |                             |    |   |         |   |
| Commercial, financial and agricultural   |   | $                                | 114,394 |   |         |   | 98,841 |   |
| Real estate construction and development |   |                             | 108,254 |   |         |   | 134,939 |   |
| Real estate mortgage:                    |   |                             |    |   |         |   |   |   |
| One-to-four family residential           |   |                             | 6,383   |   |         |   | 2,699 |   |
| Multi-family residential                 |   |                             | 12,660  |   |         |   | 11,085 |   |
| Commercial real estate                   |   |                             | 107,588 |   |         |   | 76,160 |   |
| Total potential problem loans            |   | $                                | 349,279 |   |         |   | 323,724 |   |

|                              |   | March 31,                        |    |   | December 31, |   |
|-----------------------------------|--------|----------------------------------|---------|--------|--------------|--------|
|                              |   | 2010                             |    |   | 2009         |   |
|                              |   | (dollars expressed in thousands) |    |
|                              |   |                             |    |   |         |   |
| Florida                           |   | $                                | 3,859   |   |         |   | 2,414 |   |
| Northern California               |   |                             | 82,505  |   |         |   | 62,002 |   |
| Southern California               |   |                             | 64,276  |   |         |   | 68,256 |   |
| Chicago                           |   |                             | 14,296  |   |         |   | 21,197 |   |
| Missouri                          |   |                             | 101,208 |   |         |   | 114,665 |   |
| Texas                             |   |                             | 29,116  |   |         |   | 24,947 |   |
| First Bank Business Capital, Inc. |   |                             | 19,064  |   |         |   | — |   |
| Northern and Southern Illinois    |   |                             | 21,338  |   |         |   | 20,094 |   |
| Other                             |   |                             | 13,617  |   |         |   | 10,149 |   |
| Total potential problem loans     |   | $                                | 349,279 |   |         |   | 323,724 |   |

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|   | Ø | The downward migration of performing loans to more severe risk ratings that carry a higher reserve allocation, including the risk rating for potential problem loans. We adjusted the risk ratings on loans across all commercial loan types, resulting in higher allowance for loan losses allocations. Specifically, substantially all real estate construction and development loans migrated downward in risk ratings resulting in increased allowance for loan losses allocations as a result of our charge-off levels within this portfolio segment and declining real estate values throughout our primary markets; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Ø | An increase in historical loss ratios used to determine estimated credit losses by loan type as a result of an increase in recent charge-off experience; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The increase in our nonaccrual loans. Our nonaccrual loans significantly increased during 2009 which generally resulted in a higher allowance for loan losses being specifically applied to these loans; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | An increase in the allowance for loan losses allocation related to our qualitative and environmental factors utilized in our allowance for loan losses calculation resulting from continued asset quality deterioration, declining real estate values, current economic conditions and other factors, including industry data. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                              |   | Three Months Ended               |    |
|---------------------------------------------------|--------|----------------------------------|---------|
|                                              |   | March 31,                        |    |
|                                              |   | 2010                             |    |   | 2009 |   |
|                                              |   | (dollars expressed in thousands) |    |
|                                              |   |                             |    |   |   |   |
| Balance, beginning of period                      |   | $                                | 266,448 |   |   |   | 220,214 |   |
| Allowance for loan losses allocated to loans sold |   |                             | (257    | ) |   |   | — |   |
|                                              |   |                             | 266,191 |   |   |   | 220,214 |   |
| Loans charged-off:                                |   |                             |    |   |   |   |   |   |
| Commercial financial and agricultural             |   |                             | (6,527  | ) |   |   | (24,111 | ) |
| Real estate construction and development          |   |                             | (39,073 | ) |   |   | (17,990 | ) |
| Real estate mortgage:                             |   |                             |    |   |   |   |   |   |
| One-to-four family residential loans              |   |                             | (24,632 | ) |   |   | (28,777 | ) |
| Multi-family residential loans                    |   |                             | (2,698  | ) |   |   | — |   |
| Commercial real estate loans                      |   |                             | (15,083 | ) |   |   | (3,692 | ) |
| Consumer and installment                          |   |                             | (369    | ) |   |   | (244 | ) |
| Total loans charged-off                           |   |                             | (88,382 | ) |   |   | (74,814 | ) |
| Recoveries of loans previously charged-off:       |   |                             |    |   |   |   |   |   |
| Commercial financial and agricultural             |   |                             | 27,268  |   |   |   | 656 |   |
| Real estate construction and development          |   |                             | 1,226   |   |   |   | 451 |   |
| Real estate mortgage:                             |   |                             |    |   |   |   |   |   |
| One-to-four family residential loans              |   |                             | 1,221   |   |   |   | 1,147 |   |
| Commercial real estate loans                      |   |                             | 437     |   |   |   | 821 |   |
| Consumer and installment                          |   |                             | 103     |   |   |   | 76 |   |
| Recoveries of loans previously charged-off        |   |                             | 30,255  |   |   |   | 3,151 |   |
| Net loans charged-off                             |   |                             | (58,127 | ) |   |   | (71,663 | ) |
| Provision for loan losses                         |   |                             | 42,000  |   |   |   | 108,000 |   |
| Balance, end of period                            |   | $                                | 250,064 |   |   |   | 256,551 |   |

|   | Ø | A decrease in net loan charge-offs of $44.2 million associated with our commercial, financial and agricultural portfolio to net recoveries of $20.7 million for the three months ended March 31, 2010, compared to net charge-offs of $23.5 million for the three months ended March 31, 2009. Specifically in this portfolio, for the three months ended March 31, 2010, we recorded a $25.0 million recovery on a single credit whereby we had previously recorded aggregate charge-offs of $30.0 million during 2009 on the same credit, or $10.0 million in the first quarter of 2009 and $20.0 million in the third quarter of 2009. During the three months ended March 31, 2009, we recorded a $10.0 million charge-off on the single credit as discussed above in addition to a $10.5 million charge-off on a single credit in our FBBC subsidiary; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease in net loan charge-offs of $4.2 million associated with our one-to-four family residential loan portfolio to $23.4 million for the three months ended March 31, 2010, compared to $27.6 million for the three months ended March 31, 2009. These net loan charge-offs primarily consist of $7.2 million associated with our one-to-four family residential mortgage portfolio generated by our Mortgage Division, excluding Florida, recorded during the three months ended March 31, 2010 compared to $10.7 million recorded during the three months ended March 31, 2009, and $12.3 million associated with our Florida one-to-four family residential portfolio recorded during the three months ended March 31, 2010, compared to $14.0 million recorded during the three months ended March 31, 2009; partially offset by |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Ø | An increase in net loan charge-offs of $20.3 million associated with our real estate construction and development portfolio to $37.8 million for the three months ended March 31, 2010, compared to $17.5 million for the three months ended March 31, 2009. Net loan charge-offs for the three months ended March 31, 2010 included a $9.7 million charge-off on a loan in our St. Louis, Missouri region and an $8.0 million charge-off on a loan in our Southern California region. We continue to experience significant distress and unstable market conditions throughout our market areas, resulting in higher developer inventories, slower lot and home sales and significantly declining real estate values; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | An increase in net charge-offs of $2.7 million associated with our multi-family residential real estate portfolio; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | Ø | An increase in net loan charge-offs of $11.8 million associated with our commercial real estate portfolio to $14.6 million for the three months ended March 31, 2010, compared to $2.9 million for the three months ended March 31, 2009, reflecting declining market conditions in commercial real estate, in particular our non-owner occupied commercial real estate portfolio. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | For the Three Months Ended       |   |
|--------------------------------------|--------|----------------------------------|--------|
|                                 |   | March 31,                        |   |
|                                 |   | 2010                             |   |   | 2009 |   |
|                                 |   | (dollars expressed in thousands) |   |
|                                 |   |                             |   |   |   |   |
| Mortgage Division, excluding Florida |   | $                                | 7,234  |   |   |   | 10,707 |   |
| Florida                              |   |                             | 16,249 |   |   |   | 19,856 |   |
| Northern California                  |   |                             | 3,926  |   |   |   | 4,042 |   |
| Southern California                  |   |                             | (9,307 | ) |   |   | 17,273 |   |
| Chicago                              |   |                             | 11,651 |   |   |   | 4,377 |   |
| Missouri                             |   |                             | 22,933 |   |   |   | 405 |   |
| Texas                                |   |                             | 858    |   |   |   | 2,897 |   |
| First Bank Business Capital, Inc.    |   |                             | 500    |   |   |   | 10,470 |   |
| Northern and Southern Illinois       |   |                             | 466    |   |   |   | 793 |   |
| Other                                |   |                             | 3,617  |   |   |   | 843 |   |
| Total net loan charge-offs           |   | $                                | 58,127 |   |   |   | 71,663 |   |

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|   | Ø | Changes in the aggregate loan balances by loan category; |
|--------|--------|----------------------------------------------------------|

|   | Ø | 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; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | Ø | 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. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                  |   | Certificates of Deposit of $100,000 or More |    |   | OtherBorrowings |   |    | Total  |   |
|---------------------------------------|--------|---------------------------------------------|---------|--------|-----------------|--------|---------|--------|--------|
|                                  |   | (dollars expressed in thousands)            |    |
|                                  |   |                                        |    |   |            |   |    |   |   |
| Three months or less                  |   | $                                           | 255,507 |   |            |   | 47,013  |   |   |   | 302,520 |   |
| Over three months through six months  |   |                                        | 183,003 |   |            |   | — |   |   |   | 183,003 |   |
| Over six months through twelve months |   |                                        | 368,066 |   |            |   | — |   |   |   | 368,066 |   |
| Over twelve months                    |   |                                        | 164,710 |   |            |   | 520,000 |   |   |   | 684,710 |   |
| Total                                 |   | $                                           | 971,286 |   |            |   | 567,013 |   |   |   | 1,538,299 |   |

|   | Ø | The sale of our Chicago Region on February 19, 2010, resulting in a cash outlay of approximately $832.5 million; |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | Ø | An increase in our investment securities portfolio of $347.4 million during the three months ended March 31, 2010; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The prepayment of $200.0 million of FHLB advances as discussed above; partially offset by |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | Ø | Customer repayments on loans significantly exceeding the decrease in our deposit balances of $40.4 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

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|                                         |   | Less Than                        |      |   | 1-3    |   |    | 3-5    |   |   | Over    |   |   |     |    |
|----------------------------------------------|--------|----------------------------------|-----------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|----------|---------|
|                                         |   | 1 Year                           |      |   | Years  |   |    | Years  |   |   | 5 Years |   |   | Total(1) |    |
|                                         |   | (dollars expressed in thousands) |      |
|                                         |   |                             |      |   |   |   |    |   |   |   |    |   |   |     |    |   |   |
| Operating leases (2)                         |   | $                                | 13,591    |   |   |   | 21,343  |   |   |   | 12,640  |   |   |     | 33,716  |   |   |   | 81,290 |   |
| Certificates of deposit (3)                  |   |                             | 2,142,026 |   |   |   | 444,858 |   |   |   | 15,340  |   |   |     | 125     |   |   |   | 2,602,349 |   |
| Other borrowings (3)                         |   |                             | 47,013    |   |   |   | 420,000 |   |   |   | — |   |   |     | 100,000 |   |   |   | 567,013 |   |
| Subordinated debentures (4)                  |   |                             | —   |   |   |   | — |   |   |   | — |   |   |     | 353,924 |   |   |   | 353,924 |   |
| Preferred stock issued under the CPP (4) (5) |   |                             | —   |   |   |   | — |   |   |   | — |   |   |     | 310,170 |   |   |   | 310,170 |   |
| Other contractual obligations (6)            |   |                             | 36,920    |   |   |   | 377     |   |   |   | 106     |   |   |     | 4       |   |   |   | 37,407 |   |
| Total                                        |   | $                                | 2,239,550 |   |   |   | 886,578 |   |   |   | 28,086  |   |   |     | 797,939 |   |   |   | 3,952,153 |   |

|   | (1) | Amounts exclude ASC Topic 740 unrecognized tax liabilities of $3.5 million and related accrued interest expense of $1.3 million for which the timing of payment of such liabilities cannot be reasonably estimated as of March 31, 2010. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Amounts exclude operating leases associated with discontinued operations of $1.6 million, $3.1 million, $2.6 million and $5.4 million for less than 1 year, 1-3 years, 3-5 years and over 5 years, respectively, or a total of $12.7 million. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Amounts exclude the related interest expense accrued on these obligations as of March 31, 2010. |
|--------|-----|-------------------------------------------------------------------------------------------------|

|   | (4) | Amounts exclude the accrued interest expense on subordinated debentures and the accrued dividends declared on preferred stock issued under the CPP of $9.7 million and $12.3 million, respectively, as of March 31, 2010. As further described under “3⁄4Recent Developments – Regulatory Matters,” we currently may not make any distributions of interest or other sums on our subordinated debentures and related underlying trust preferred securities without the prior approval of the FRB. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | 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. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Amounts include $36.3 million related to obligations for two investment securities traded in March 2010 that settled in April 2010, as further described under “3⁄4Financial Condition.” |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 

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PART 

Item 

| 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 – filed herewith.               |
|           |                                                                                         |
| 32.2           | Section 1350 Certifications of Chief Financial Officer – filed herewith.               |

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SIGNATURES

|   | 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) |

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