----

----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

| 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 |

| Class                           |   | Shares Outstanding at October 31, 2010 |
|---------------------------------|--------|----------------------------------------|
|                            |   |                                   |
| Common Stock, $250.00 par value |   | 23,661                                 |

----

----

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|       |                  |                                                                                             | 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      | 39  |
|       |                  |                                                                                             |     |
|       | Item 3.               | Quantitative and Qualitative Disclosures about Market Risk                                       | 75       |
|       |                  |                                                                                             |     |
|       | Item 4.               | Controls and Procedures                                                                          | 75       |
|       |                  |                                                                                             |     |
| PART II.   | OTHER INFORMATION     |                                                                                             |
|       |                  |                                                                                             |     |
|       | Item 1.               | Legal Proceedings                                                                                | 76       |
|       |                  |                                                                                             |     |
|       | Item 1A.              | Risk Factors                                                                                     | 76       |
|       |                  |                                                                                             |     |
|       | Item 6.               | Exhibits                                                                                         | 76       |
|       |                  |                                                                                             |     |
| SIGNATURES | 77                    |

----

Consolidated 

|                                                                                                                     |   | September 30,2010 |      |   | December 31,2009 |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|------------------------|-----------|--------|-----------------------|--------|
|                                                                                                                     |   |                   |      |   |                  |   |
| ASSETS                                                                                                                   |   |                   |      |   |                  |   |
| Cash and cash equivalents:                                                                                               |   |                   |      |   |                  |   |
| Cash and due from banks                                                                                                  |   | $                      | 100,930   |   |                  |   | 143,731 |   |
| Short-term investments                                                                                                   |   |                   | 1,012,500 |   |                  |   | 2,372,520 |   |
| Total cash and cash equivalents                                                                                          |   |                   | 1,113,430 |   |                  |   | 2,516,251 |   |
| Investment securities:                                                                                                   |   |                   |      |   |                  |   |   |   |
| Available for sale                                                                                                       |   |                   | 1,313,753 |   |                  |   | 527,332 |   |
| Held to maturity (fair value of $13,359 and $15,258, respectively)                                                       |   |                   | 12,153    |   |                  |   | 14,225 |   |
| Total investment securities                                                                                              |   |                   | 1,325,906 |   |                  |   | 541,557 |   |
| Loans:                                                                                                                   |   |                   |      |   |                  |   |   |   |
| Commercial, financial and agricultural                                                                                   |   |                   | 1,172,531 |   |                  |   | 1,692,922 |   |
| Real estate construction and development                                                                                 |   |                   | 697,458   |   |                  |   | 1,052,922 |   |
| Real estate mortgage                                                                                                     |   |                   | 3,111,399 |   |                  |   | 3,771,582 |   |
| Consumer and installment                                                                                                 |   |                   | 40,853    |   |                  |   | 56,029 |   |
| Loans held for sale                                                                                                      |   |                   | 51,027    |   |                  |   | 42,684 |   |
| Total loans                                                                                                              |   |                   | 5,073,268 |   |                  |   | 6,616,139 |   |
| Unearned discount                                                                                                        |   |                   | (5,882    | )      |                  |   | (7,846 | ) |
| Allowance for loan losses                                                                                                |   |                   | (226,051  | )      |                  |   | (266,448 | ) |
| Net loans                                                                                                                |   |                   | 4,841,335 |   |                  |   | 6,341,845 |   |
| Federal Reserve Bank and Federal Home Loan Bank stock, at cost                                                           |   |                   | 40,211    |   |                  |   | 65,076 |   |
| Bank premises and equipment, net                                                                                         |   |                   | 165,123   |   |                  |   | 178,302 |   |
| Goodwill and other intangible assets                                                                                     |   |                   | 131,942   |   |                  |   | 144,439 |   |
| Bank-owned life insurance                                                                                                |   |                   | —   |   |                  |   | 26,372 |   |
| Deferred income taxes                                                                                                    |   |                   | 24,398    |   |                  |   | 24,700 |   |
| Other real estate                                                                                                        |   |                   | 170,659   |   |                  |   | 125,226 |   |
| Other assets                                                                                                             |   |                   | 74,112    |   |                  |   | 83,197 |   |
| Assets held for sale                                                                                                     |   |                   | —   |   |                  |   | 16,975 |   |
| Assets of discontinued operations                                                                                        |   |                   | —   |   |                  |   | 518,056 |   |
| Total assets                                                                                                             |   | $                      | 7,887,116 |   |                  |   | 10,581,996 |   |
|                                                                                                                     |   |                   |      |   |                  |   |   |   |
| LIABILITIES                                                                                                              |   |                   |      |   |                  |   |   |   |
| Deposits:                                                                                                                |   |                   |      |   |                  |   |   |   |
| Noninterest-bearing demand                                                                                               |   | $                      | 1,155,016 |   |                  |   | 1,270,276 |   |
| Interest-bearing demand                                                                                                  |   |                   | 931,453   |   |                  |   | 914,020 |   |
| Savings and money market                                                                                                 |   |                   | 2,193,875 |   |                  |   | 2,260,869 |   |
| Time deposits of $100 or more                                                                                            |   |                   | 899,449   |   |                  |   | 931,151 |   |
| Other time deposits                                                                                                      |   |                   | 1,460,108 |   |                  |   | 1,687,657 |   |
| Total deposits                                                                                                           |   |                   | 6,639,901 |   |                  |   | 7,063,973 |   |
| Other borrowings                                                                                                         |   |                   | 367,615   |   |                  |   | 767,494 |   |
| Subordinated debentures                                                                                                  |   |                   | 353,962   |   |                  |   | 353,905 |   |
| Deferred income taxes                                                                                                    |   |                   | 32,270    |   |                  |   | 32,572 |   |
| Accrued expenses and other liabilities                                                                                   |   |                   | 99,694    |   |                  |   | 87,027 |   |
| Liabilities held for sale                                                                                                |   |                   | —   |   |                  |   | 24,381 |   |
| Liabilities of discontinued operations                                                                                   |   |                   | —   |   |                  |   | 1,730,264 |   |
| Total liabilities                                                                                                        |   |                   | 7,493,442 |   |                  |   | 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            |   |                   | 283,885   |   |                  |   | 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 (deficit) earnings                                                                                              |   |                   | (64,236   | )      |                  |   | 91,271 |   |
| Accumulated other comprehensive income (loss)                                                                            |   |                   | 22,890    |   |                  |   | (2,464 | ) |
| Total First Banks, Inc. stockholders’ equity                                                                       |   |                   | 291,340   |   |                  |   | 418,964 |   |
| Noncontrolling interest in subsidiaries                                                                                  |   |                   | 102,334   |   |                  |   | 103,416 |   |
| Total stockholders’ equity                                                                                         |   |                   | 393,674   |   |                  |   | 522,380 |   |
| Total liabilities and stockholders’ equity                                                                         |   | $                      | 7,887,116 |   |                  |   | 10,581,996 |   |

----

Consolidated 

|                                                                          |   | Three Months EndedSeptember 30, |      |   | Nine Months EndedSeptember 30, |   |
|-------------------------------------------------------------------------------|--------|---------------------------------|-----------|--------|--------------------------------|--------|
|                                                                          |   | 2010                            |      |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                                                          |   |                            |      |   |                           |   |   |   |   |   |   |   |
| Interest income:                                                              |   |                            |      |   |                           |   |   |   |   |   |   |   |
| Interest and fees on loans                                                    |   | $                               | 70,265    |   |                           |   | 91,937 |   |   |   | 223,455 |   |   |   | 287,392 |   |
| Investment securities                                                         |   |                            | 6,862     |   |                           |   | 6,121 |   |   |   | 18,566 |   |   |   | 19,845 |   |
| Federal Reserve Bank and Federal Home Loan Bank stock                         |   |                            | 466       |   |                           |   | 629 |   |   |   | 1,542 |   |   |   | 1,573 |   |
| Short-term investments                                                        |   |                            | 841       |   |                           |   | 765 |   |   |   | 2,847 |   |   |   | 1,669 |   |
| Total interest income                                                         |   |                            | 78,434    |   |                           |   | 99,452 |   |   |   | 246,410 |   |   |   | 310,479 |   |
| Interest expense:                                                             |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                     |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand                                                       |   |                            | 347       |   |                           |   | 395 |   |   |   | 1,084 |   |   |   | 1,169 |   |
| Savings and money market                                                      |   |                            | 3,686     |   |                           |   | 5,395 |   |   |   | 11,738 |   |   |   | 18,833 |   |
| Time deposits of $100 or more                                                 |   |                            | 4,044     |   |                           |   | 6,076 |   |   |   | 12,592 |   |   |   | 19,989 |   |
| Other time deposits                                                           |   |                            | 6,507     |   |                           |   | 11,209 |   |   |   | 20,777 |   |   |   | 36,692 |   |
| Other borrowings                                                              |   |                            | 1,251     |   |                           |   | 2,851 |   |   |   | 7,194 |   |   |   | 6,849 |   |
| Notes payable                                                                 |   |                            | —   |   |                           |   | — |   |   |   | — |   |   |   | 37 |   |
| Subordinated debentures                                                       |   |                            | 3,410     |   |                           |   | 3,555 |   |   |   | 9,710 |   |   |   | 12,365 |   |
| Total interest expense                                                        |   |                            | 19,245    |   |                           |   | 29,481 |   |   |   | 63,095 |   |   |   | 95,934 |   |
| Net interest income                                                           |   |                            | 59,189    |   |                           |   | 69,971 |   |   |   | 183,315 |   |   |   | 214,545 |   |
| Provision for loan losses                                                     |   |                            | 37,000    |   |                           |   | 107,000 |   |   |   | 162,000 |   |   |   | 327,000 |   |
| Net interest income (loss) after provision for loan losses                    |   |                            | 22,189    |   |                           |   | (37,029 | ) |   |   | 21,315 |   |   |   | (112,455 | ) |
| Noninterest income:                                                           |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposit accounts and customer service fees                 |   |                            | 11,239    |   |                           |   | 11,411 |   |   |   | 32,537 |   |   |   | 32,794 |   |
| Gain on loans sold and held for sale                                          |   |                            | 4,081     |   |                           |   | 2,193 |   |   |   | 7,321 |   |   |   | 9,562 |   |
| Net (loss) gain on investment securities                                      |   |                            | (2        | )      |                           |   | 3,095 |   |   |   | 553 |   |   |   | 4,279 |   |
| Bank-owned life insurance investment income                                   |   |                            | 25        |   |                           |   | 84 |   |   |   | 120 |   |   |   | 646 |   |
| Net loss on derivative instruments                                            |   |                            | (849      | )      |                           |   | (4,838 | ) |   |   | (2,939 | ) |   |   | (4,437 | ) |
| Decrease in fair value of servicing rights                                    |   |                            | (3,375    | )      |                           |   | (684 | ) |   |   | (6,239 | ) |   |   | (2,386 | ) |
| Loan servicing fees                                                           |   |                            | 2,184     |   |                           |   | 2,163 |   |   |   | 6,742 |   |   |   | 6,413 |   |
| Other                                                                         |   |                            | 3,957     |   |                           |   | 1,800 |   |   |   | 15,302 |   |   |   | 9,418 |   |
| Total noninterest income                                                      |   |                            | 17,260    |   |                           |   | 15,224 |   |   |   | 53,397 |   |   |   | 56,289 |   |
| Noninterest expense:                                                          |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                                |   |                            | 22,913    |   |                           |   | 22,563 |   |   |   | 66,687 |   |   |   | 68,622 |   |
| Occupancy, net of rental income                                               |   |                            | 7,278     |   |                           |   | 6,956 |   |   |   | 21,590 |   |   |   | 20,640 |   |
| Furniture and equipment                                                       |   |                            | 3,504     |   |                           |   | 3,936 |   |   |   | 11,090 |   |   |   | 12,066 |   |
| Postage, printing and supplies                                                |   |                            | 753       |   |                           |   | 1,019 |   |   |   | 2,715 |   |   |   | 3,315 |   |
| Information technology fees                                                   |   |                            | 6,786     |   |                           |   | 7,505 |   |   |   | 21,182 |   |   |   | 23,497 |   |
| Legal, examination and professional fees                                      |   |                            | 3,382     |   |                           |   | 2,974 |   |   |   | 9,778 |   |   |   | 8,890 |   |
| Amortization of intangible assets                                             |   |                            | 829       |   |                           |   | 989 |   |   |   | 2,613 |   |   |   | 3,022 |   |
| Advertising and business development                                          |   |                            | 261       |   |                           |   | 320 |   |   |   | 949 |   |   |   | 1,495 |   |
| FDIC insurance                                                                |   |                            | 5,883     |   |                           |   | 4,015 |   |   |   | 16,846 |   |   |   | 14,838 |   |
| Write-downs and expenses on other real estate                                 |   |                            | 14,439    |   |                           |   | 3,911 |   |   |   | 31,945 |   |   |   | 11,414 |   |
| Other                                                                         |   |                            | 22,812    |   |                           |   | 8,019 |   |   |   | 36,344 |   |   |   | 20,950 |   |
| Total noninterest expense                                                     |   |                            | 88,840    |   |                           |   | 62,207 |   |   |   | 221,739 |   |   |   | 188,749 |   |
| Loss from continuing operations before provision for income taxes             |   |                            | (49,391   | )      |                           |   | (84,012 | ) |   |   | (147,027 | ) |   |   | (244,915 | ) |
| Provision for income taxes                                                    |   |                            | 5,193     |   |                           |   | 58 |   |   |   | 5,346 |   |   |   | 2,487 |   |
| Net loss from continuing operations, net of tax                               |   |                            | (54,584   | )      |                           |   | (84,070 | ) |   |   | (152,373 | ) |   |   | (247,402 | ) |
| Income (loss) from discontinued operations, net of tax                        |   |                            | 6,155     |   |                           |   | (8,387 | ) |   |   | 10,963 |   |   |   | (32,607 | ) |
| Net loss                                                                      |   |                            | (48,429   | )      |                           |   | (92,457 | ) |   |   | (141,410 | ) |   |   | (280,009 | ) |
| Less: net loss attributable to noncontrolling interest in subsidiaries        |   |                            | (618      | )      |                           |   | (1,380 | ) |   |   | (1,082 | ) |   |   | (6,207 | ) |
| Net loss attributable to First Banks, Inc.                                    |   | $                               | (47,811   | )      |                           |   | (91,077 | ) |   |   | (140,328 | ) |   |   | (273,802 | ) |
| Preferred stock dividends declared and undeclared                             |   |                            | 4,272     |   |                           |   | 4,052 |   |   |   | 12,650 |   |   |   | 12,430 |   |
| Accretion of discount of preferred stock                                      |   |                            | 853       |   |                           |   | 832 |   |   |   | 2,529 |   |   |   | 2,467 |   |
| Net loss available to common stockholders                                     |   | $                               | (52,936   | )      |                           |   | (95,961 | ) |   |   | (155,507 | ) |   |   | (288,699 | ) |
|                                                                          |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per common share from continuing operations            |   | $                               | (2,497.39 | )      |                           |   | (3,701.20 | ) |   |   | (7,035.64 | ) |   |   | (10,823.38 | ) |
| Basic and diluted income (loss) per common share from discontinued operations |   | $                               | 260.13    |   |                           |   | (354.46 | ) |   |   | 463.34 |   |   |   | (1,378.09 | ) |
| Basic and diluted loss per common share                                       |   | $                               | (2,237.26 | )      |                           |   | (4,055.66 | ) |   |   | (6,572.30 | ) |   |   | (12,201.47 | ) |
|                                                                          |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares of common stock outstanding                           |   |                            | 23,661    |   |                           |   | 23,661 |   |   |   | 23,661 |   |   |   | 23,661 |   |

----

Consolidated 

|                                                                                         |   |  First Banks, Inc. Stockholders’ Equity |    |   |
|----------------------------------------------------------------------------------------------|--------|----------------------------------------------------|---------|--------|
|                                                                                         |   | PreferredStock                                     |    |   | CommonStock |   |   | Additional Paid-In Capital |   |   | Retained Earnings (Deficit) |   |   | Accu-mulated Other Compre-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                                                                                     |   |                                               | — |   |   |   | — |   |   |   | — |   |   |   | (140,328 | ) |   |   | — |   |   |   | (1,082 | ) |   |   | (141,410 | ) |
| Other comprehensive income (loss):                                                           |   |                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gains on investment securities, net of tax                                        |   |                                               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 15,926 |   |   |   | — |   |   |   | 15,926 |   |
| Reclassification adjustment for investment securities gains included in net loss, net of tax |   |                                               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (359 | ) |   |   | — |   |   |   | (359 | ) |
| Change in unrealized gains on derivative instruments, net of tax                             |   |                                               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (3,734 | ) |   |   | — |   |   |   | (3,734 | ) |
| Pension liability adjustment, net of tax                                                     |   |                                               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 193 |   |   |   | — |   |   |   | 193 |   |
| Reclassification adjustments for deferred tax asset valuation allowance                      |   |                                               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 13,328 |   |   |   | — |   |   |   | 13,328 |   |
| Total comprehensive loss                                                                     |   |                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (116,056 | ) |
| Accretion of discount on preferred stock                                                     |   |                                               | 2,529   |   |   |   | — |   |   |   | — |   |   |   | (2,529 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
| Preferred stock dividends declared                                                           |   |                                               | — |   |   |   | — |   |   |   | — |   |   |   | (12,650 | ) |   |   | — |   |   |   | — |   |   |   | (12,650 | ) |
| Balance, September 30, 2010                                                                  |   | $                                                  | 314,291 |   |   |   | 5,915 |   |   |   | 12,480 |   |   |   | (64,236 | ) |   |   | 22,890 |   |   |   | 102,334 |   |   |   | 393,674 |   |

----

Consolidated 

|                                                                                                               |   | Nine Months EndedSeptember 30, |       |
|--------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|------------|
|                                                                                                               |   | 2010                           |       |   | 2009 |   |
|                                                                                                               |   |                           |       |   |   |   |
| Cash flows from operating activities:                                                                              |   |                           |       |   |   |   |
| Net loss attributable to First Banks, Inc.                                                                         |   | $                              | (140,328   | ) |   |   | (273,802 | ) |
| Net loss attributable to noncontrolling interest in subsidiaries                                                   |   |                           | (1,082     | ) |   |   | (6,207 | ) |
| Less:  net income (loss) from discontinued operations                                                    |   |                           | 10,963     |   |   |   | (32,607 | ) |
| Net loss from continuing operations                                                                                |   |                           | (152,373   | ) |   |   | (247,402 | ) |
|                                                                                                               |   |                           |       |   |   |   |   |   |
| Adjustments to reconcile net loss to net cash provided by operating activities:                                    |   |                           |       |   |   |   |   |   |
| Depreciation and amortization of bank premises and equipment                                                       |   |                           | 13,580     |   |   |   | 13,866 |   |
| Amortization of intangible assets                                                                                  |   |                           | 2,613      |   |   |   | 3,022 |   |
| Originations of loans held for sale                                                                                |   |                           | (244,475   | ) |   |   | (469,061 | ) |
| Proceeds from sales of loans held for sale                                                                         |   |                           | 238,984    |   |   |   | 479,010 |   |
| Payments received on loans held for sale                                                                           |   |                           | 452        |   |   |   | 1,697 |   |
| Provision for loan losses                                                                                          |   |                           | 162,000    |   |   |   | 327,000 |   |
| Provision for current income taxes                                                                                 |   |                           | 6,493      |   |   |   | 109 |   |
| Benefit for deferred income taxes                                                                                  |   |                           | (58,609    | ) |   |   | (73,313 | ) |
| Increase in deferred tax asset valuation allowance                                                                 |   |                           | 57,462     |   |   |   | 75,691 |   |
| Decrease in accrued interest receivable                                                                            |   |                           | 3,452      |   |   |   | 3,905 |   |
| Increase (decrease) in accrued interest payable                                                                    |   |                           | 3,145      |   |   |   | (1,427 | ) |
| Decrease in current income taxes receivable                                                                        |   |                           | 2,484      |   |   |   | 62,050 |   |
| Gain on loans sold and held for sale                                                                               |   |                           | (7,321     | ) |   |   | (9,562 | ) |
| Net gain on investment securities                                                                                  |   |                           | (553       | ) |   |   | (4,279 | ) |
| Net loss on derivative instruments                                                                                 |   |                           | 2,939      |   |   |   | 4,437 |   |
| Decrease in fair value of servicing rights                                                                         |   |                           | 6,239      |   |   |   | 2,386 |   |
| Write-downs on other real estate                                                                                   |   |                           | 23,596     |   |   |   | 1,536 |   |
| Other operating activities, net                                                                                    |   |                           | 3,284      |   |   |   | (2,101 | ) |
| Net cash provided by operating activities – continuing operations                                            |   |                           | 63,392     |   |   |   | 167,564 |   |
| Net effect of discontinued operations                                                                              |   |                           | 267        |   |   |   | (24,797 | ) |
| Net cash provided by operating activities                                                                          |   |                           | 63,659     |   |   |   | 142,767 |   |
|                                                                                                               |   |                           |       |   |   |   |   |   |
| 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 |   |                           | (1,400,472 | ) |   |   | — |   |
| Proceeds from sales of investment securities available for sale                                                    |   |                           | 20,103     |   |   |   | 311,776 |   |
| Proceeds from sales of investment securities held to maturity                                                      |   |                           | 682        |   |   |   | — |   |
| Maturities of investment securities available for sale                                                             |   |                           | 132,696    |   |   |   | 606,716 |   |
| Maturities of investment securities held to maturity                                                               |   |                           | 1,420      |   |   |   | 3,234 |   |
| Purchases of investment securities available for sale                                                              |   |                           | (924,654   | ) |   |   | (974,403 | ) |
| Redemptions of Federal Home Loan Bank and Federal Reserve Bank stock                                               |   |                           | 24,978     |   |   |   | 4,742 |   |
| Purchases of Federal Home Loan Bank and Federal Reserve Bank stock                                                 |   |                           | (113       | ) |   |   | (23,666 | ) |
| Proceeds from sales of commercial loans held for sale                                                              |   |                           | 34,109     |   |   |   | 1,366 |   |
| Net decrease in loans                                                                                              |   |                           | 973,000    |   |   |   | 466,674 |   |
| Recoveries of loans previously charged-off                                                                         |   |                           | 44,006     |   |   |   | 9,936 |   |
| Purchases of bank premises and equipment                                                                           |   |                           | (2,502     | ) |   |   | (12,775 | ) |
| Net proceeds from sales of other real estate owned                                                                 |   |                           | 63,446     |   |   |   | 48,503 |   |
| Proceeds from termination of bank-owned life insurance                                                             |   |                           | 25,957     |   |   |   | 90,578 |   |
| Other investing activities, net                                                                                    |   |                           | 2,683      |   |   |   | (6,920 | ) |
| Net cash (used in) provided by investing activities – continuing operations                                  |   |                           | (1,013,069 | ) |   |   | 525,761 |   |
| Net effect of discontinued operations                                                                              |   |                           | 35,795     |   |   |   | (58,153 | ) |
| Net cash (used in) provided by investing activities                                                                |   |                           | (977,274   | ) |   |   | 467,608 |   |

----

|                                                                              |   | Nine Months EndedSeptember 30, |       |
|-----------------------------------------------------------------------------------|--------|--------------------------------|------------|
|                                                                              |   | 2010                           |       |   | 2009 |   |
|                                                                              |   |                           |       |   |   |   |
| Cash flows from financing activities:                                             |   |                           |       |   |   |   |
| Increase in demand, savings and money market deposits                             |   |                           | 20,700     |   |   |   | 225,290 |   |
| Decrease in time deposits                                                         |   |                           | (57,569    | ) |   |   | (208,636 | ) |
| Repayments of Federal Reserve Bank advances                                       |   |                           | —    |   |   |   | (100,000 | ) |
| Advances drawn on Federal Home Loan Bank                                          |   |                           | —    |   |   |   | 600,000 |   |
| Repayments of Federal Home Loan Bank advances                                     |   |                           | (400,000   | ) |   |   | (200,052 | ) |
| Increase (decrease) in securities sold under agreements to repurchase             |   |                           | 878        |   |   |   | (51,450 | ) |
| Payment of preferred stock dividends                                              |   |                           | —    |   |   |   | (6,365 | ) |
| Net cash (used in) provided by financing activities – continuing operations |   |                           | (435,991   | ) |   |   | 258,787 |   |
| Net effect of discontinued operations                                             |   |                           | (55,069    | ) |   |   | (63,497 | ) |
| Net cash (used in) provided by financing activities                               |   |                           | (491,060   | ) |   |   | 195,290 |   |
| Net (decrease) increase in cash and cash equivalents                              |   |                           | (1,404,675 | ) |   |   | 805,665 |   |
| Cash and cash equivalents, beginning of period                                    |   |                           | 2,518,105  |   |   |   | 842,316 |   |
| Cash and cash equivalents, end of period                                          |   | $                              | 1,113,430  |   |   |   | 1,647,981 |   |
|                                                                              |   |                           |       |   |   |   |   |   |
|                                                                              |   |                           |       |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                |   |                           |       |   |   |   |   |   |
| Cash paid (received) during the period for:                                       |   |                           |       |   |   |   |   |   |
| Interest on liabilities                                                           |   | $                              | 59,946     |   |   |   | 97,361 |   |
| Income taxes                                                                      |   |                           | (1,916     | ) |   |   | (61,858 | ) |
| Noncash investing and financing activities:                                       |   |                           |       |   |   |   |   |   |
| Loans transferred to other real estate                                            |   | $                              | 131,014    |   |   |   | 127,189 |   |

----

Notes 

----

----

----

----

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

|                                                     |   | NorthernIllinois                 |    |   | Chicago |   |    | Texas  |   |   | WIUS    |   |   | MVP    |    |   | Total  |   |
|----------------------------------------------------------|--------|----------------------------------|---------|--------|---------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|
|                                                     |   | (dollars expressed in thousands) |    |
|                                                     |   |                             |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |
| Interest income:                                         |   |                             |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |
| Interest and fees on loans                               |   | $                                | 1,711   |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,711 |   |
| Total interest income                                    |   |                             | 1,711   |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,711 |   |
| Interest expense:                                        |   |                             |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                     |   |                             | 880     |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 880 |   |
| Other borrowings                                         |   |                             | — |   |    |   | — |   |   |   | — |   |   |   | (10     | )      |   |   | — |   |   |   | (10 | ) |
| Total interest expense                                   |   |                             | 880     |   |    |   | — |   |   |   | — |   |   |   | (10     | )      |   |   | — |   |   |   |  870 |   |
| Net interest income                                      |   |                             | 831     |   |    |   | — |   |   |   | — |   |   |   | 10      |   |   |   | — |   |   |   | 841 |   |
| Provision for loan losses                                |   |                             | — |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net interest income after provision for loan losses      |   |                             | 831     |   |    |   | — |   |   |   | — |   |   |   | 10      |   |   |   | — |   |   |   |  841 |   |
| Noninterest income:                                      |   |                             |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Service charges and customer service fees                |   |                             | 509     |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 509 |   |
| Other                                                    |   |                             | 11      |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 11 |   |
| Total noninterest income                                 |   |                             | 520     |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   |  520 |   |
| Noninterest expense:                                     |   |                             |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                           |   |                             | 1,019   |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,019 |   |
| Occupancy, net of rental income                          |   |                             | 270     |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 270 |   |
| Furniture and equipment                                  |   |                             | 73      |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 73 |   |
| Legal, examination and professional fees                 |   |                             | 12      |   |    |   | — |   |   |   | — |   |   |   | (36     | )      |   |   | — |   |   |   | (24 | ) |
| FDIC insurance                                           |   |                             | 295     |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 295 |   |
| Other                                                    |   |                             | 144     |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 144 |   |
| Total noninterest expense                                |   |                             | 1,813   |   |    |   | — |   |   |   | — |   |   |   | (36     | )      |   |   | — |   |   |   | 1,777 |   |
| (Loss) income from operations of discontinued operations |   |                             | (462    | )      |    |   | — |   |   |   | — |   |   |   | 46      |   |   |   | — |   |   |   | (416 | ) |
| Net gain on sale of discontinued operations              |   |                             | 6,375   |   |    |   | 1       |   |   |   | — |   |   |   | 38      |   |   |   | — |   |   |   | 6,414 |   |
| Benefit for income taxes                                 |   |                             | — |   |    |   | — |   |   |   | — |   |   |   | (157    | )      |   |   | — |   |   |   | (157 | ) |
| Net income from discontinued operations, net of tax      |   | $                                | 5,913   |   |    |   | 1       |   |   |   | — |   |   |   | 241     |   |   |   | — |   |   |   | 6,155 |   |

----

|                                                       |   | NorthernIllinois                 |    |   | Chicago |   |    | Texas  |   |   | WIUS    |   |   | MVP    |    |   | ANB    |   |    | Total  |   |
|------------------------------------------------------------|--------|----------------------------------|---------|--------|---------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                       |   | (dollars expressed in thousands) |    |
| Interest income:                                           |   |                             |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |
| Interest and fees on loans                                 |   | $                                | 2,540   |   |    |   | 4,586   |   |   |   | 1,427   |   |   |   | 5,197   |   |   |   | — |   |   |   | — |   |   |   | 13,750 |   |
| Total interest income                                      |   |                             | 2,540   |   |    |   | 4,586   |   |   |   | 1,427   |   |   |   | 5,197   |   |   |   | — |   |   |   | — |   |   |   | 13,750 |   |
| Interest expense:                                          |   |                             |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                       |   |                             | 1,840   |   |    |   | 6,516   |   |   |   | 1,979   |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 10,335 |   |
| Other borrowings                                           |   |                             | 2       |   |    |   | 2       |   |   |   | 3       |   |   |   | 4       |   |   |   | — |   |   |   | — |   |   |   | 11 |   |
| Total interest expense                                     |   |                             | 1,842   |   |    |   | 6,518   |   |   |   | 1,982   |   |   |   | 4       |   |   |   | — |   |   |   | — |   |   |   | 10,346 |   |
| Net interest income (loss)                                 |   |                             | 698     |   |    |   | (1,932  | )      |   |   | (555    | )      |   |   | 5,193   |   |   |   | — |   |   |   | — |   |   |   | 3,404 |   |
| Provision for loan losses                                  |   |                             | — |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net interest income (loss) after provision for loan losses |   |                             | 698     |   |    |   | (1,932  | )      |   |   | (555    | )      |   |   | 5,193   |   |   |   | — |   |   |   | — |   |   |   | 3,404 |   |
| Noninterest income:                                        |   |                             |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Service charges and customer service fees                  |   |                             | 684     |   |    |   | 1,107   |   |   |   | 1,137   |   |   |   | 209     |   |   |   | — |   |   |   | — |   |   |   | 3,137 |   |
| Gain on loans sold and held for sale                       |   |                             | — |   |    |   | — |   |   |   | 62      |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 62 |   |
| Investment management income                               |   |                             | — |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | 599     |   |   |   | — |   |   |   | 599 |   |
| Insurance fee and commission income                        |   |                             | — |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,671 |   |   |   | 1,671 |   |
| Loan servicing fees                                        |   |                             | — |   |    |   | 2       |   |   |   | 93      |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 95 |   |
| Other                                                      |   |                             | 12      |   |    |   | 100     |   |   |   | 29      |   |   |   | 1       |   |   |   | — |   |   |   | — |   |   |   | 142 |   |
| Total noninterest income                                   |   |                             | 696     |   |    |   | 1,209   |   |   |   | 1,321   |   |   |   | 210     |   |   |   | 599     |   |   |   | 1,671 |   |   |   | 5,706 |   |
| Noninterest expense:                                       |   |                             |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                             |   |                             | 902     |   |    |   | 2,506   |   |   |   | 2,023   |   |   |   | 1,387   |   |   |   | 710     |   |   |   | 1,026 |   |   |   | 8,554 |   |
| Occupancy, net of rental income                            |   |                             | 352     |   |    |   | 995     |   |   |   | 978     |   |   |   | 76      |   |   |   | 51      |   |   |   | 102 |   |   |   | 2,554 |   |
| Furniture and equipment                                    |   |                             | 113     |   |    |   | 269     |   |   |   | 258     |   |   |   | 313     |   |   |   | 19      |   |   |   | 18 |   |   |   | 990 |   |
| Legal, examination and professional fees                   |   |                             | 15      |   |    |   | 125     |   |   |   | 73      |   |   |   | 611     |   |   |   | 113     |   |   |   | 142 |   |   |   | 1,079 |   |
| Amortization of intangible assets                          |   |                             | 121     |   |    |   | 283     |   |   |   | 540     |   |   |   | 302     |   |   |   | — |   |   |   | 72 |   |   |   | 1,318 |   |
| FDIC insurance                                             |   |                             | 313     |   |    |   | 601     |   |   |   | 290     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,204 |   |
| Other                                                      |   |                             | 192     |   |    |   | 460     |   |   |   | 1,001   |   |   |   | 507     |   |   |   | 30      |   |   |   | 135 |   |   |   | 2,325 |   |
| Total noninterest expense                                  |   |                             | 2,008   |   |    |   | 5,239   |   |   |   | 5,163   |   |   |   | 3,196   |   |   |   | 923     |   |   |   | 1,495 |   |   |   | 18,024 |   |
| (Loss) income from operations of discontinued operations   |   |                             | (614    | )      |    |   | (5,962  | )      |   |   | (4,397  | )      |   |   | 2,207   |   |   |   | (324    | )      |   |   | 176 |   |   |   | (8,914 | ) |
| Net gain on sale of discontinued operations                |   |                             | — |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 527 |   |   |   | 527 |   |
| Provision for income taxes                                 |   |                             | — |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net (loss) income from discontinued operations, net of tax |   | $                                | (614    | )      |    |   | (5,962  | )      |   |   | (4,397  | )      |   |   | 2,207   |   |   |   | (324    | )      |   |   | 703 |   |   |   | (8,387 | ) |

|                                                       |   | Northern Illinois                |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |
|------------------------------------------------------------|--------|----------------------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|
|                                                       |   | Chicago                          |    |   | Texas  |   |    | WIUS   |   |   | MVP     |   |   | Total  |    |
|                                                       |   | (dollars expressed in thousands) |    |
|                                                       |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |
| Interest income:                                           |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |
| Interest and fees on loans                                 |   | $                                | 6,459   |   |   |   | 2,391   |   |   |   | 1,816   |   |   |   | 33      |   |   |   | — |   |   |   | 10,699 |   |
| Total interest income                                      |   |                             | 6,459   |   |   |   | 2,391   |   |   |   | 1,816   |   |   |   | 33      |   |   |   | — |   |   |   | 10,699 |   |
| Interest expense:                                          |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                       |   |                             | 3,211   |   |   |   | 2,550   |   |   |   | 1,796   |   |   |   | — |   |   |   | — |   |   |   | 7,557 |   |
| Other borrowings                                           |   |                             | — |   |   |   | — |   |   |   | 3       |   |   |   | (2      | )      |   |   | — |   |   |   | 1 |   |
| Total interest expense                                     |   |                             | 3,211   |   |   |   | 2,550   |   |   |   | 1,799   |   |   |   | (2      | )      |   |   | — |   |   |   | 7,558 |   |
| Net interest income (loss)                                 |   |                             | 3,248   |   |   |   | (159    | )      |   |   | 17      |   |   |   | 35      |   |   |   | — |   |   |   | 3,141 |   |
| Provision for loan losses                                  |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net interest income (loss) after                           |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| provision for loan losses                                  |   |                             | 3,248   |   |   |   | (159    | )      |   |   | 17      |   |   |   | 35      |   |   |   | — |   |   |   | 3,141 |   |
| Noninterest income:                                        |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Service charges and customer service fees                  |   |                             | 1,730   |   |   |   | 523     |   |   |   | 1,192   |   |   |   | — |   |   |   | — |   |   |   | 3,445 |   |
| Investment management income                               |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 787 |   |   |   | 787 |   |
| Loan servicing fees                                        |   |                             | — |   |   |   | — |   |   |   | 101     |   |   |   | — |   |   |   | — |   |   |   | 101 |   |
| Other                                                      |   |                             | 29      |   |   |   | 254     |   |   |   | 60      |   |   |   | — |   |   |   | (1 | ) |   |   | 342 |   |
| Total noninterest income                                   |   |                             | 1,759   |   |   |   | 777     |   |   |   | 1,353   |   |   |   | — |   |   |   | 786 |   |   |   | 4,675 |   |
| Noninterest expense:                                       |   |                             |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                             |   |                             | 2,782   |   |   |   | 2,137   |   |   |   | 2,843   |   |   |   | 32      |   |   |   | 517 |   |   |   | 8,311 |   |
| Occupancy, net of rental income                            |   |                             | 948     |   |   |   | 606     |   |   |   | 1,148   |   |   |   | — |   |   |   | 59 |   |   |   | 2,761 |   |
| Furniture and equipment                                    |   |                             | 277     |   |   |   | 178     |   |   |   | 345     |   |   |   | — |   |   |   | 17 |   |   |   | 817 |   |
| Legal, examination and professional fees                   |   |                             | 36      |   |   |   | 123     |   |   |   | 111     |   |   |   | 153     |   |   |   | 115 |   |   |   | 538 |   |
| Amortization of intangible assets                          |   |                             | 201     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 201 |   |
| FDIC insurance                                             |   |                             | 1,144   |   |   |   | 292     |   |   |   | 478     |   |   |   | — |   |   |   | — |   |   |   | 1,914 |   |
| Other                                                      |   |                             | 521     |   |   |   | 424     |   |   |   | 860     |   |   |   | 184     |   |   |   | 29 |   |   |   | 2,018 |   |
| Total noninterest expense                                  |   |                             | 5,909   |   |   |   | 3,760   |   |   |   | 5,785   |   |   |   | 369     |   |   |   | 737 |   |   |   | 16,560 |   |
| (Loss) income from operations of discontinued operations   |   |                             | (902    | )      |   |   | (3,142  | )      |   |   | (4,415  | )      |   |   | (334    | )      |   |   | 49 |   |   |   | (8,744 | ) |
| Net gain (loss) on sale of discontinued operations         |   |                             | 6,375   |   |   |   | 8,414   |   |   |   | 4,984   |   |   |   | (67     | )      |   |   | (156 | ) |   |   | 19,550 |   |
| Benefit for income taxes                                   |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | (157    | )      |   |   | — |   |   |   | (157 | ) |
| Net income (loss) from discontinued operations, net of tax |   | $                                | 5,473   |   |   |   | 5,272   |   |   |   | 569     |   |   |   | (244    | )      |   |   | (107 | ) |   |   | 10,963 |   |

----

|                                                       |   | NorthernIllinois                 |    |   | Chicago |   |    | Texas  |   |   | WIUS    |   |   | MVP    |    |   | ANB    |   |    | Total  |   |
|------------------------------------------------------------|--------|----------------------------------|---------|--------|---------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                       |   | (dollars expressed in thousands) |    |
| Interest income:                                           |   |                             |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |
| Interest and fees on loans                                 |   | $                                | 7,499   |   |    |   | 12,554  |   |   |   | 4,028   |   |   |   | 15,443  |   |   |   | — |   |   |   | — |   |   |   | 39,524 |   |
| Total interest income                                      |   |                             | 7,499   |   |    |   | 12,554  |   |   |   | 4,028   |   |   |   | 15,443  |   |   |   | — |   |   |   | — |   |   |   | 39,524 |   |
| Interest expense:                                          |   |                             |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                       |   |                             | 5,950   |   |    |   | 21,695  |   |   |   | 6,410   |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 34,055 |   |
| Other borrowings                                           |   |                             | 8       |   |    |   | 4       |   |   |   | 7       |   |   |   | 12      |   |   |   | — |   |   |   | — |   |   |   | 31 |   |
| Total interest expense                                     |   |                             | 5,958   |   |    |   | 21,699  |   |   |   | 6,417   |   |   |   | 12      |   |   |   | — |   |   |   | — |   |   |   | 34,086 |   |
| Net interest income (loss)                                 |   |                             | 1,541   |   |    |   | (9,145  | )      |   |   | (2,389  | )      |   |   | 15,431  |   |   |   | — |   |   |   | — |   |   |   | 5,438 |   |
| Provision for loan losses                                  |   |                             | — |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net interest income (loss) after provision for loan losses |   |                             | 1,541   |   |    |   | (9,145  | )      |   |   | (2,389  | )      |   |   | 15,431  |   |   |   | — |   |   |   | — |   |   |   | 5,438 |   |
| Noninterest income:                                        |   |                             |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Service charges and customer service fees                  |   |                             | 1,932   |   |    |   | 3,117   |   |   |   | 3,344   |   |   |   | 584     |   |   |   | — |   |   |   | — |   |   |   | 8,977 |   |
| Gain on loans sold and held for sale                       |   |                             | — |   |    |   | — |   |   |   | 163     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 163 |   |
| Investment management income                               |   |                             | — |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,657   |   |   |   | — |   |   |   | 1,657 |   |
| Insurance fee and commission income                        |   |                             | — |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 5,828 |   |   |   | 5,828 |   |
| Loan servicing fees                                        |   |                             | — |   |    |   | 6       |   |   |   | 276     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 282 |   |
| Other                                                      |   |                             | 45      |   |    |   | 248     |   |   |   | 86      |   |   |   | 11      |   |   |   | 1       |   |   |   | 5 |   |   |   | 396 |   |
| Total noninterest income                                   |   |                             | 1,977   |   |    |   | 3,371   |   |   |   | 3,869   |   |   |   | 595     |   |   |   | 1,658   |   |   |   | 5,833 |   |   |   | 17,303 |   |
| Noninterest expense:                                       |   |                             |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                             |   |                             | 2,909   |   |    |   | 7,778   |   |   |   | 6,239   |   |   |   | 4,485   |   |   |   | 2,078   |   |   |   | 3,132 |   |   |   | 26,621 |   |
| Occupancy, net of rental income                            |   |                             | 1,060   |   |    |   | 3,066   |   |   |   | 3,032   |   |   |   | 239     |   |   |   | 148     |   |   |   | 325 |   |   |   | 7,870 |   |
| Furniture and equipment                                    |   |                             | 353     |   |    |   | 840     |   |   |   | 835     |   |   |   | 947     |   |   |   | 55      |   |   |   | 50 |   |   |   | 3,080 |   |
| Legal, examination and professional fees                   |   |                             | 44      |   |    |   | 358     |   |   |   | 229     |   |   |   | 1,850   |   |   |   | 326     |   |   |   | 542 |   |   |   | 3,349 |   |
| Amortization of intangible assets                          |   |                             | 362     |   |    |   | 849     |   |   |   | 1,619   |   |   |   | 905     |   |   |   | — |   |   |   | 216 |   |   |   | 3,951 |   |
| FDIC insurance                                             |   |                             | 1,164   |   |    |   | 2,238   |   |   |   | 1,082   |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 4,484 |   |
| Other                                                      |   |                             | 577     |   |    |   | 1,446   |   |   |   | 2,352   |   |   |   | 1,539   |   |   |   | 112     |   |   |   | 465 |   |   |   | 6,491 |   |
| Total noninterest expense                                  |   |                             | 6,469   |   |    |   | 16,575  |   |   |   | 15,388  |   |   |   | 9,965   |   |   |   | 2,719   |   |   |   | 4,730 |   |   |   | 55,846 |   |
| (Loss) income from operations of discontinued operations   |   |                             | (2,951  | )      |    |   | (22,349 | )      |   |   | (13,908 | )      |   |   | 6,061   |   |   |   | (1,061  | )      |   |   | 1,103 |   |   |   | (33,105 | ) |
| Net gain on sale of discontinued operations                |   |                             | — |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 527 |   |   |   | 527 |   |
| Provision for income taxes                                 |   |                             | — |   |    |   | — |   |   |   | — |   |   |   | 27      |   |   |   | — |   |   |   | 2 |   |   |   | 29 |   |
| Net (loss) income from discontinued operations, net of tax |   | $                                | (2,951  | )      |    |   | (22,349 | )      |   |   | (13,908 | )      |   |   | 6,034   |   |   |   | (1,061  | )      |   |   | 1,628 |   |   |   | (32,607 | ) |

----

|                               |   | Maturity                         |        |   | Total    |   |    | Gross Unrealized |   |   |          |   |   | Weighted      |      |
|------------------------------------|--------|----------------------------------|-------------|--------|----------|--------|---------|------------------|--------|--------|---------------|--------|--------|---------------|-----------|
|                               |   | 1 Yearor Less                    |        |   | 1-5Years |   |    | 5-10Years        |   |   | After10 Years |   |   | AmortizedCost |      |   | Gains |   |   | Losses |   |   | Fair Value |   |   | Average Yield |   |
|                               |   | (dollars expressed in thousands) |        |
|                               |   |                             |        |   |     |   |    |             |   |   |          |   |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |
| September 30, 2010:                |   |                             |        |   |     |   |    |             |   |   |          |   |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Carrying value:                    |   |                             |        |   |     |   |    |             |   |   |          |   |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                      |   | $                                | —     |   |     |   | 101,623 |             |   |   | —       |   |   |          | —   |   |   |   | 101,623 |   |   |   | 377 |   |   |   | — |   |   |   | 102,000 |   |   |   | 0.73 | % |
| U.S. Government sponsored agencies |   |                             | 500         |   |     |   | 20,294  |             |   |   | —       |   |   |          | —   |   |   |   | 20,794 |   |   |   | 354 |   |   |   | — |   |   |   | 21,148 |   |   |   | 1.78 |   |
| Residential mortgage-backed        |   |                             | 313         |   |     |   | 6,585   |             |   |   | 4,639         |   |   |          | 1,129,612 |   |   |   | 1,141,149 |   |   |   | 24,336 |   |   |   | (495 | ) |   |   | 1,164,990 |   |   |   | 2.68 |   |
| Commercial mortgage-backed         |   |                             | —     |   |     |   | — |             |   |   | 974           |   |   |          | —   |   |   |   | 974 |   |   |   | 56 |   |   |   | — |   |   |   | 1,030 |   |   |   | 4.19 |   |
| State and political subdivisions   |   |                             | 2,801       |   |     |   | 4,652   |             |   |   | 2,247         |   |   |          | —   |   |   |   | 9,700 |   |   |   | 388 |   |   |   | — |   |   |   | 10,088 |   |   |   | 3.99 |   |
| Equity investments                 |   |                             | —     |   |     |   | — |             |   |   | —       |   |   |          | 14,278    |   |   |   | 14,278 |   |   |   | 219 |   |   |   | — |   |   |   | 14,497 |   |   |   | 2.77 |   |
| Total                              |   | $                                | 3,614       |   |     |   | 133,154 |             |   |   | 7,860         |   |   |          | 1,143,890 |   |   |   | 1,288,518 |   |   |   | 25,730 |   |   |   | (495 | ) |   |   | 1,313,753 |   |   |   | 2.52 |   |
| Fair value:                        |   |                             |        |   |     |   |    |             |   |   |          |   |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt securities                    |   | $                                | 3,668       |   |     |   | 134,344 |             |   |   | 8,247         |   |   |          | 1,152,997 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity securities                  |   |                             | —     |   |     |   | — |             |   |   | —       |   |   |          | 14,497    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                              |   | $                                | 3,668  |   |     |   | 134,344 |             |   |   | 8,247         |   |   |          | 1,167,494 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |        |   |     |   |    |             |   |   |          |   |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average yield             |   |                             | 4.18        | %      |     |   | 1.15    | %                |   |   | 4.26          | %      |   |          | 2.67      | % |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |        |   |     |   |    |             |   |   |          |   |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 Unrealized |   |   |          |   |   | Weighted      |    |
|----------------------------------|--------|----------------------------------|---------|--------|----------|--------|---------|-----------------------|--------|--------|---------------|--------|--------|---------------|---------|
|                             |   | 1 Yearor Less                    |    |   | 1-5Years |   |    | 5-10Years             |   |   | After10 Years |   |   | AmortizedCost |    |   | Gains |   |   | Losses |   |   | Fair Value |   |   | Average Yield |   |
|                             |   | (dollars expressed in thousands) |    |   |     |   |
|                             |   |                             |    |   |     |   |    |                  |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| September 30, 2010:              |   |                             |    |   |     |   |    |                  |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Carrying value:                  |   |                             |    |   |     |   |    |                  |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed      |   | $                                | — |   |     |   | — |                  |   |   | 1,218         |   |   |          | 1,040   |   |   |   | 2,258 |   |   |   | 161 |   |   |   | — |   |   |   | 2,419 |   |   |   | 5.08 | % |
| Commercial mortgage-backed       |   |                             | — |   |     |   | 6,468   |                  |   |   | —       |   |   |          | — |   |   |   | 6,468 |   |   |   | 692 |   |   |   | — |   |   |   | 7,160 |   |   |   | 5.34 |   |
| State and political subdivisions |   |                             | 585     |   |     |   | 734     |                  |   |   | 574           |   |   |          | 1,534   |   |   |   | 3,427 |   |   |   | 353 |   |   |   | — |   |   |   | 3,780 |   |   |   | 5.46 |   |
| Total                            |   | $                                | 585     |   |     |   | 7,202   |                  |   |   | 1,792         |   |   |          | 2,574   |   |   |   | 12,153 |   |   |   | 1,206 |   |   |   | — |   |   |   | 13,359 |   |   |   | 5.33 |   |
| Fair value:                      |   |                             |    |   |     |   |    |                  |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt securities                  |   | $                                | 590     |   |     |   | 7,939   |                  |   |   | 1,931         |   |   |          | 2,899   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                             |   |                             |    |   |     |   |    |                  |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average yield           |   |                             | 4.48    | %      |     |   | 5.15    | %                     |   |   | 4.70          | %      |   |          | 6.44    | % |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |
|----------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|
| 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    | %      |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |

----

|                                                            |   | Three Months EndedSeptember 30,  |    |   | Nine Months EndedSeptember 30, |   |
|-----------------------------------------------------------------|--------|----------------------------------|---------|--------|--------------------------------|--------|
|                                                            |   | 2010                             |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                                            |   | (dollars expressed in thousands) |    |
|                                                            |   |                             |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Gross realized gains on sales of available-for-sale securities  |   | $                                | — |   |                           |   | 3,128 |   |   |   | 515 |   |   |   | 4,918 |   |
| Gross realized losses on sales of available-for-sale securities |   |                             | — |   |                           |   | (33 | ) |   |   | — |   |   |   | (654 | )  |
| Gross realized gains on sales of held-to-maturity securities    |   |                             | — |   |                           |   | — |   |   |   | 41 |   |   |   | — |   |
| Other-than-temporary impairment                                 |   |                             | (2      | )      |                           |   | — |   |   |   | (3 | ) |   |   | — |   |
| Gross realized gains on calls                                   |   |                             | — |   |                           |   | — |   |   |   | — |   |   |   | 15 |   |
| Net realized (losses) gains                                     |   | $                                | (2      | )      |                           |   | 3,095 |   |   |   | 553 |   |   |   | 4,279 |   |

|                             |   | Less Than 12 Months              |    |   | 12 Months or More      |   |    | Total     |   |
|----------------------------------|--------|----------------------------------|---------|--------|------------------------|--------|---------|-----------|--------|
|                             |   | Fair Value                       |    |   | Unrealized Losses |   |    | FairValue |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |
|                             |   | (dollars expressed in thousands) |    |
| September 30, 2010:              |   |                             |    |   |                   |   |    |      |   |   |   |   |   |   |   |   |   |   |
| Available for sale:              |   |                             |    |   |                   |   |    |      |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed      |   | $                                | 113,330 |   |                   |   | (400    | )         |   |   | 525 |   |   |   | (95 | ) |   |   | 113,855 |   |   |   | (495 | ) |
| Total                            |   | $                                | 113,330 |   |                   |   | (400    | )         |   |   | 525 |   |   |   | (95 | ) |   |   | 113,855 |   |   |   | (495 | ) |
|                             |   |                             |    |   |                   |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009:               |   |                             |    |   |                   |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 | ) |

----

|                                               |   | September 30, 2010               |      |   | December 31,2009 |   |
|----------------------------------------------------|--------|----------------------------------|-----------|--------|------------------|--------|
|                                               |   | (dollars expressed in thousands) |      |
|                                               |   |                             |      |   |             |   |
| Commercial, financial and agricultural             |   | $                                | 1,172,531 |   |             |   | 1,692,922 |   |
| Real estate construction and development           |   |                             | 697,458   |   |             |   | 1,052,922 |   |
| Real estate mortgage:                              |   |                             |      |   |             |   |   |   |
| One-to-four family residential                     |   |                             | 1,096,935 |   |             |   | 1,279,166 |   |
| Multi-family residential                           |   |                             | 174,187   |   |             |   | 223,044 |   |
| Commercial real estate                             |   |                             | 1,840,277 |   |             |   | 2,269,372 |   |
| Consumer and installment, net of unearned discount |   |                             | 34,971    |   |             |   | 48,183 |   |
| Loans held for sale                                |   |                             | 51,027    |   |             |   | 42,684 |   |
| Loans, net of unearned discount                    |   | $                                | 5,067,386 |   |             |   | 6,608,293 |   |

|                                              |   | Three Months EndedSeptember 30,  |    |   | Nine Months EndedSeptember 30, |   |
|---------------------------------------------------|--------|----------------------------------|---------|--------|--------------------------------|--------|
|                                              |   | 2010                             |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                              |   | (dollars expressed in thousands) |    |
|                                              |   |                             |    |   |                           |   |   |   |   |   |   |   |
| Balance, beginning of period                      |   | $                                | 241,969 |   |                           |   | 287,317 |   |   |   | 266,448 |   |   |   | 220,214 |   |
| Allowance for loan losses allocated to loans sold |   |                             | — |   |                           |   | — |   |   |   | (321 | ) |   |   | — |   |
|                                              |   |                             | 241,969 |   |                           |   | 287,317 |   |   |   | 266,127 |   |   |   | 220,214 |   |
| Loans charged-off                                 |   |                             | (58,293 | )      |                           |   | (107,378 | ) |   |   | (246,082 | ) |   |   | (266,412 | ) |
| Recoveries of loans previously charged-off        |   |                             | 5,375   |   |                           |   | 3,799 |   |   |   | 44,006 |   |   |   | 9,936 |   |
| Net loans charged-off                             |   |                             | (52,918 | )      |                           |   | (103,579 | ) |   |   | (202,076 | ) |   |   | (256,476 | ) |
| Provision for loan losses                         |   |                             | 37,000  |   |                           |   | 107,000 |   |   |   | 162,000 |   |   |   | 327,000 |   |
| Balance, end of period                            |   | $                                | 226,051 |   |                           |   | 290,738 |   |   |   | 226,051 |   |   |   | 290,738 |   |

|                                    |   | Three Months EndedSeptember 30,  |   |   | Nine Months EndedSeptember 30, |   |
|-----------------------------------------|--------|----------------------------------|--------|--------|--------------------------------|--------|
|                                    |   | 2010                             |   |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                    |   | (dollars expressed in thousands) |   |
|                                    |   |                             |   |   |                           |   |   |   |   |   |   |   |
| Balance, beginning of period            |   | $                                | 940    |   |                           |   | 3,041 |   |   |   | 1,945 |   |   |   | 9,997 |   |
| Transfers to other real estate          |   |                             | (147   | )      |                           |   | (254 | ) |   |   | (517 | ) |   |   | (3,545 | ) |
| Loans charged-off                       |   |                             | (159   | )      |                           |   | (174 | ) |   |   | (716 | ) |   |   | (3,363 | ) |
| Payments, settlements and disbursements |   |                             | 38     |   |                           |   | (227 | ) |   |   | (40 | ) |   |   | (703 | ) |
| Balance, end of period                  |   | $                                | 672    |   |                           |   | 2,386 |   |   |   | 672 |   |   |   | 2,386 |   |

----

|                           |   | September 30, 2010               |    |   | December 31, 2009        |   |
|--------------------------------|--------|----------------------------------|---------|--------|--------------------------|--------|
|                           |   | Gross Carrying Amount            |    |   | Accumulated Amortization |   |   | Gross Carrying Amount |   |   | Accumulated Amortization |   |
|                           |   | (dollars expressed in thousands) |    |
|                           |   |                             |    |   |                     |   |   |   |   |   |   |   |
| Amortized intangible assets:   |   |                             |    |   |                     |   |   |   |   |   |   |   |
| Core deposit intangibles (1)   |   | $                                | 21,211  |   |                     |   | (17,236 | ) |   |   | 23,622 |   |   |   | (16,150 | ) |
|                           |   |                             |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Unamortized intangible assets: |   |                             |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill (2)                   |   | $                                | 127,967 |   |                     |   |   |   |   |   | 136,967 |   |   |   |   |   |

|   | (1) | 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 December 31, 2009 has been reduced by $41.0 million 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           |   | $                                | 830    |   |
| 2011                     |   |                             | 2,672  |   |
| 2012                     |   |                             | 473    |   |
| Total                    |   | $                                | 3,975  |   |

----

|                                              |   | Three Months EndedSeptember 30,  |    |   | Nine Months EndedSeptember 30, |   |
|---------------------------------------------------|--------|----------------------------------|---------|--------|--------------------------------|--------|
|                                              |   | 2010                             |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                              |   | (dollars expressed in thousands) |    |
|                                              |   |                             |    |   |                           |   |   |   |   |   |   |   |
|                                              |   |                             |    |   |                           |   |   |   |   |   |   |   |
| Balance, beginning of period                      |   | $                                | 127,967 |   |                           |   | 268,967 |   |   |   | 136,967 |   |   |   | 266,028 |   |
| Goodwill acquired during the period (1)           |   |                             | — |   |                           |   | — |   |   |   | — |   |   |   | 2,939 |   |
| Goodwill allocated to sale transactions (2)       |   |                             | — |   |                           |   | (10,000 | ) |   |   | (9,000 | ) |   |   | (10,000 | ) |
| Goodwill allocated to discontinued operations (3) |   |                             | — |   |                           |   | (21,000 | ) |   |   | — |   |   |   | (21,000 | ) |
| Goodwill allocated to assets held for sale (3)    |   |                             | — |   |                           |   | (2,000 | ) |   |   | — |   |   |   | (2,000 | ) |
| Balance, end of period                            |   | $                                | 127,967 |   |                           |   | 235,967 |   |   |   | 127,967 |   |   |   | 235,967 |   |

|   | (1) | Goodwill acquired during 2009 pertains to additional earn-out consideration associated with the acquisition of ANB in March 2006. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Goodwill allocated to sale transactions during 2010 pertains to the sale of the Northern Illinois Region in September 2010, as previously described above, and goodwill allocated to sale transactions during 2009 pertains to the sale of ANB in September 2009, as further described in Note 2 to the consolidated financial statements. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Goodwill allocated to discontinued operations and assets held for sale pertains to the Texas Region and the Lawrenceville Branch, as further described in Note 2 to the consolidated financial statements, and the Springfield, Illinois branch, which was sold in the November 2009. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                                       |   | Three Months EndedSeptember 30,  |   |   | Nine Months EndedSeptember 30, |   |
|------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|--------------------------------|--------|
|                                                                                                       |   | 2010                             |   |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                                                                                       |   | (dollars expressed in thousands) |   |
|                                                                                                       |   |                             |   |   |                           |   |   |   |   |   |   |   |
|                                                                                                       |   |                             |   |   |                           |   |   |   |   |   |   |   |
| Balance, beginning of period                                                                               |   | $                                | 11,443 |   |                           |   | 10,686 |   |   |   | 12,130 |   |   |   | 7,418 |   |
| Originated mortgage servicing rights                                                                       |   |                             | 1,262  |   |                           |   | 1,670 |   |   |   | 2,721 |   |   |   | 5,298 |   |
| Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1) |   |                             | (2,443 | )      |                           |   | (386 | ) |   |   | (3,465 | ) |   |   | 1,229 |   |
| Other changes in fair value (2)                                                                            |   |                             | (858   | )      |                           |   | (442 | ) |   |   | (1,982 | ) |   |   | (2,417 | ) |
| Balance, end of period                                                                                     |   | $                                | 9,404  |   |                           |   | 11,528 |   |   |   | 9,404 |   |   |   | 11,528 |   |

|   | (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 EndedSeptember 30,  |    |   | Nine Months EndedSeptember 30, |   |
|------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|--------------------------------|--------|
|                                                                                                       |   | 2010                             |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                                                                                       |   | (dollars expressed in thousands) |    |
|                                                                                                       |   |                             |    |   |                           |   |   |   |   |   |   |   |
| Balance, beginning of period                                                                               |   | $                                | 7,823   |   |                           |   | 8,123 |   |   |   | 8,478 |   |   |   | 8,963 |   |
| Originated SBA servicing rights                                                                            |   |                             | — |   |                           |   | 192 |   |   |   | 63 |   |   |   | 694 |   |
| Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1) |   |                             | 100     |   |                           |   | 579 |   |   |   | 524 |   |   |   | (14 | ) |
| Other changes in fair value (2)                                                                            |   |                             | (174    | )      |                           |   | (435 | ) |   |   | (1,316 | ) |   |   | (1,184 | ) |
| Balance, end of period                                                                                     |   | $                                | 7,749   |   |                           |   | 8,459 |   |   |   | 7,749 |   |   |   | 8,459 |   |

|   | (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 EndedSeptember 30,                         |      |   | Nine Months EndedSeptember 30, |   |
|------------------------------------------------------------------------------------|--------|---------------------------------------------------------|-----------|--------|--------------------------------|--------|
|                                                                               |   | 2010                                                    |      |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                                                               |   | (dollars in thousands, except share and per share data) |      |
| Basic:                                                                             |   |                                                    |      |   |                           |   |   |   |   |   |   |   |
|                                                                               |   |                                                    |      |   |                           |   |   |   |   |   |   |   |
| Net loss from continuing operations attributable to First Banks, Inc.              |   | $                                                       | (53,966   | )      |                           |   | (82,690 | ) |   |   | (151,291 | ) |   |   | (241,195 | ) |
| Preferred stock dividends declared and undeclared                                  |   |                                                    | (4,272    | )      |                           |   | (4,052 | ) |   |   | (12,650 | ) |   |   | (12,430 | ) |
| Accretion of discount on preferred stock                                           |   |                                                    | (853      | )      |                           |   | (832 | ) |   |   | (2,529 | ) |   |   | (2,467 | ) |
| Net loss from continuing operations attributable to common stockholders            |   |                                                    | (59,091   | )      |                           |   | (87,574 | ) |   |   | (166,470 | ) |   |   | (256,092 | ) |
| Net income (loss) from discontinued operations attributable to common stockholders |   |                                                    | 6,155     |   |                           |   | (8,387 | ) |   |   | 10,963 |   |   |   | (32,607 | ) |
| Net loss available to First Banks, Inc. common stockholders                        |   | $                                                       | (52,936   | )      |                           |   | (95,961 | ) |   |   | (155,507 | ) |   |   | (288,699 | ) |
|                                                                               |   |                                                    |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares of common stock outstanding                                |   |                                                    | 23,661    |   |                           |   | 23,661 |   |   |   | 23,661 |   |   |   | 23,661 |   |
|                                                                               |   |                                                    |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic loss per common share – continuing operations                          |   | $                                                       | (2,497.39 | )      |                           |   | (3,701.20 | ) |   |   | (7,035.64 | ) |   |   | (10,823.38 | ) |
| Basic earnings (loss) per common share – discontinued operations             |   | $                                                       | 260.13    |   |                           |   | (354.46 | ) |   |   | 463.34 |   |   |   | (1,378.09 | ) |
| Basic loss per common share                                                        |   | $                                                       | (2,237.26 | )      |                           |   | (4,055.66 | ) |   |   | (6,572.30 | ) |   |   | (12,201.47 | ) |

----

|                                                                               |   | Three Months EndedSeptember 30,                         |      |   | Nine Months EndedSeptember 30, |   |
|------------------------------------------------------------------------------------|--------|---------------------------------------------------------|-----------|--------|--------------------------------|--------|
|                                                                               |   | 2010                                                    |      |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                                                               |   | (dollars in thousands, except share and per share data) |      |
|                                                                               |   |                                                    |      |   |                           |   |   |   |   |   |   |   |
| Diluted:                                                                           |   |                                                    |      |   |                           |   |   |   |   |   |   |   |
|                                                                               |   |                                                    |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net loss from continuing operations attributable to common stockholders            |   | $                                                       | (59,091   | )      |                           |   | (87,574 | ) |   |   | (166,470 | ) |   |   | (256,092 | ) |
| Net income (loss) from discontinued operations attributable to common stockholders |   |                                                    | 6,155     |   |                           |   | (8,387 | ) |   |   | 10,963 |   |   |   | (32,607 | ) |
| Net loss available to First Banks, Inc. common stockholders                        |   |                                                    | (52,936   | )      |                           |   | (95,961 | ) |   |   | (155,507 | ) |   |   | (288,699 | ) |
| Effect of dilutive securities:                                                     |   |                                                    |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Class A convertible preferred stock                                                |   |                                                    | —   |   |                           |   | — |   |   |   | — |   |   |   | — |   |
| Diluted EPS – net loss available to First Banks, Inc. common stockholders    |   | $                                                       | (52,936   | )      |                           |   | (95,961 | ) |   |   | (155,507 | ) |   |   | (288,699 | ) |
|                                                                               |   |                                                    |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares of common stock outstanding                                |   |                                                    | 23,661    |   |                           |   | 23,661 |   |   |   | 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 |   |   |   | 23,661 |   |   |   | 23,661 |   |
|                                                                               |   |                                                    |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Diluted loss per common share – continuing operations                        |   | $                                                       | (2,497.39 | )      |                           |   | (3,701.20 | ) |   |   | (7,035.64 | ) |   |   | (10,823.38 | ) |
| Diluted earnings (loss) per common share – discontinued operations           |   | $                                                       | 260.13    |   |                           |   | (354.46 | ) |   |   | 463.34 |   |   |   | (1,378.09 | ) |
| Diluted loss per common share                                                      |   | $                                                       | (2,237.26 | )      |                           |   | (4,055.66 | ) |   |   | (6,572.30 | ) |   |   | (12,201.47 | ) |

----

----

|                                      |   | Actual                           |    |   | For Capital       |   |   | To be Well Capitalized Under Prompt Corrective |   |
|-------------------------------------------|--------|----------------------------------|---------|--------|-------------------|--------|--------|------------------------------------------------|--------|
|                                      |   | September 30, 2010               |    |   | December 31, 2009 |   |   | Adequacy                                       |   |   | Action |   |
|                                      |   | Amount                           |    |   | Ratio             |   |   | Amount                                         |   |   | Ratio |   |   | Purposes |   |   | Provisions |   |
|                                      |   | (dollars expressed in thousands) |    |   |              |
|                                      |   |                             |    |   |              |   |   |                                           |   |   |   |   |   |   |   |   |   |   |
| Total capital (to risk-weighted assets):  |   |                             |    |   |              |   |   |                                           |   |   |   |   |   |   |   |   |   |   |
| First Banks, Inc.                         |   | $                                | 451,980 |   |              |   | 8.36   | %                                              |   | $ | 740,560 |   |   |   | 9.78 | % |   |   | 8.0 | % |   |   | N/A |   |
| First Bank                                |   |                             | 686,345 |   |              |   | 12.71  |                                           |   |   | 785,799 |   |   |   | 10.39 |   |   |   | 8.0 |   |   |   | 10.0 | % |
|                                      |   |                             |    |   |              |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital (to risk-weighted assets): |   |                             |    |   |              |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Banks, Inc.                         |   |                             | 225,990 |   |              |   | 4.18   |                                           |   |   | 370,280 |   |   |   | 4.89 |   |   |   | 4.0 |   |   |   | N/A |   |
| First Bank                                |   |                             | 616,896 |   |              |   | 11.43  |                                           |   |   | 689,117 |   |   |   | 9.11 |   |   |   | 4.0 |   |   |   | 6.0 |   |
|                                      |   |                             |    |   |              |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital (to average assets):       |   |                             |    |   |              |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Banks, Inc.                         |   |                             | 225,990 |   |              |   | 2.74   |                                           |   |   | 370,280 |   |   |   | 3.52 |   |   |   | 4.0 |   |   |   | N/A |   |
| First Bank                                |   |                             | 616,896 |   |              |   | 7.49   |                                           |   |   | 689,117 |   |   |   | 6.56 |   |   |   | 4.0 |   |   |   | 5.0 |   |

----

----

|                                   |   | First Bank                       |      |   | Corporate, Other and Intercompany Reclassifications |   |       | Consolidated Totals |   |
|----------------------------------------|--------|----------------------------------|-----------|--------|-----------------------------------------------------|--------|------------|---------------------|--------|
|                                   |   | September 30,2010                |      |   | December 31,2009                                    |   |       | September 30,2010   |   |   | December 31,2009 |   |   | September 30,2010 |   |   | December 31,2009 |   |
|                                   |   | (dollars expressed in thousands) |      |
|                                   |   |                             |      |   |                                                |   |       |                |   |   |   |   |   |   |   |   |   |   |
| Balance sheet information:             |   |                             |      |   |                                                |   |       |                |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                             |      |   |                                                |   |       |                |   |   |   |   |   |   |   |   |   |   |
| Investment securities                  |   | $                                | 1,311,409 |   |                                                |   | 527,279    |                |   |   | 14,497 |   |   |   | 14,278 |   |   |   | 1,325,906 |   |   |   | 541,557 |   |
| Loans, net of unearned discount        |   |                             | 5,067,386 |   |                                                |   | 6,608,293  |                |   |   | — |   |   |   | — |   |   |   | 5,067,386 |   |   |   | 6,608,293 |   |
| FHLB and FRB stock                     |   |                             | 40,211    |   |                                                |   | 65,076     |                |   |   | — |   |   |   | — |   |   |   | 40,211 |   |   |   | 65,076 |   |
| Goodwill and other intangible assets   |   |                             | 131,942   |   |                                                |   | 144,439    |                |   |   | — |   |   |   | — |   |   |   | 131,942 |   |   |   | 144,439 |   |
| Assets held for sale                   |   |                             | —   |   |                                                |   | 16,975     |                |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 16,975 |   |
| Assets of discontinued operations      |   |                             | —   |   |                                                |   | 518,056    |                |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 518,056 |   |
| Total assets                           |   |                             | 7,862,937 |   |                                                |   | 10,561,500 |                |   |   | 24,179 |   |   |   | 20,496 |   |   |   | 7,887,116 |   |   |   | 10,581,996 |   |
| Deposits                               |   |                             | 6,644,869 |   |                                                |   | 7,071,493  |                |   |   | (4,968 | ) |   |   | (7,520 | ) |   |   | 6,639,901 |   |   |   | 7,063,973 |   |
| Other borrowings                       |   |                             | 367,615   |   |                                                |   | 767,494    |                |   |   | — |   |   |   | — |   |   |   | 367,615 |   |   |   | 767,494 |   |
| Subordinated debentures                |   |                             | —   |   |                                                |   | —    |                |   |   | 353,962 |   |   |   | 353,905 |   |   |   | 353,962 |   |   |   | 353,905 |   |
| Liabilities held for sale              |   |                             | —   |   |                                                |   | 24,381     |                |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 24,381 |   |
| Liabilities of discontinued operations |   |                             | —   |   |                                                |   | 1,730,264  |                |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,730,264 |   |
| Total stockholders’ equity       |   |                             | 771,508   |   |                                                |   | 878,277    |                |   |   | (377,834 | ) |   |   | (355,897 | ) |   |   | 393,674 |   |   |   | 522,380 |   |

|                                                                        |   | First Bank                           |    |   | Corporate, Other and Intercompany Reclassifications |   |    | Consolidated Totals                  |   |
|-----------------------------------------------------------------------------|--------|--------------------------------------|---------|--------|-----------------------------------------------------|--------|---------|--------------------------------------|--------|
|                                                                        |   | Three Months EndedSeptember 30, |    |   | Three Months EndedSeptember 30,                |   |    | Three Months EndedSeptember 30, |   |
|                                                                        |   | 2010                                 |    |   | 2009                                                |   |    | 2010                                 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                                                        |   | (dollars expressed in thousands)     |    |
|                                                                        |   |                                 |    |   |                                                |   |    |                                 |   |   |   |   |   |   |   |   |   |   |
| Income statement information:                                               |   |                                 |    |   |                                                |   |    |                                 |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |                                 |    |   |                                                |   |    |                                 |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                             |   | $                                    | 78,254  |   |                                                |   | 99,325  |                                 |   |   | 180 |   |   |   | 127 |   |   |   | 78,434 |   |   |   | 99,452 |   |
| Interest expense                                                            |   |                                 | 15,841  |   |                                                |   | 25,966  |                                 |   |   | 3,404 |   |   |   | 3,515 |   |   |   | 19,245 |   |   |   | 29,481 |   |
| Net interest income (loss)                                                  |   |                                 | 62,413  |   |                                                |   | 73,359  |                                 |   |   | (3,224 | ) |   |   | (3,388 | ) |   |   | 59,189 |   |   |   | 69,971 |   |
| Provision for loan losses                                                   |   |                                 | 37,000  |   |                                                |   | 107,000 |                                 |   |   | — |   |   |   | — |   |   |   | 37,000 |   |   |   | 107,000 |   |
| Net interest income (loss) after provision for loan losses                  |   |                                 | 25,413  |   |                                                |   | (33,641 | )                                    |   |   | (3,224 | ) |   |   | (3,388 | ) |   |   | 22,189 |   |   |   | (37,029 | ) |
| Noninterest income                                                          |   |                                 | 18,108  |   |                                                |   | 20,340  |                                 |   |   | (848 | ) |   |   | (5,116 | ) |   |   | 17,260 |   |   |   | 15,224 |   |
| Amortization of intangible assets                                           |   |                                 | 829     |   |                                                |   | 989     |                                 |   |   | — |   |   |   | — |   |   |   | 829 |   |   |   | 989 |   |
| Other noninterest expense                                                   |   |                                 | 88,150  |   |                                                |   | 60,534  |                                 |   |   | (139 | ) |   |   | 684 |   |   |   | 88,011 |   |   |   | 61,218 |   |
| Loss from continuing operations before provision (benefit) for income taxes |   |                                 | (45,458 | )      |                                                |   | (74,824 | )                                    |   |   | (3,933 | ) |   |   | (9,188 | ) |   |   | (49,391 | ) |   |   | (84,012 | ) |
| Provision (benefit) for income taxes                                        |   |                                 | 5,250   |   |                                                |   | 103     |                                 |   |   | (57 | ) |   |   | (45 | ) |   |   | 5,193 |   |   |   | 58 |   |
| Net loss from continuing operations, net of tax                             |   |                                 | (50,708 | )      |                                                |   | (74,927 | )                                    |   |   | (3,876 | ) |   |   | (9,143 | ) |   |   | (54,584 | ) |   |   | (84,070 | ) |
| Discontinued operations, net of tax                                         |   |                                 | 6,155   |   |                                                |   | (8,387  | )                                    |   |   | — |   |   |   | — |   |   |   | 6,155 |   |   |   | (8,387 | ) |
| Net loss                                                                    |   |                                 | (44,553 | )      |                                                |   | (83,314 | )                                    |   |   | (3,876 | ) |   |   | (9,143 | ) |   |   | (48,429 | ) |   |   | (92,457 | ) |
| Net loss attributable to noncontrolling interest in subsidiaries            |   |                                 | (618    | )      |                                                |   | (1,380  | )                                    |   |   | — |   |   |   | — |   |   |   | (618 | ) |   |   | (1,380 | ) |
| Net loss attributable to First Banks, Inc.                                  |   | $                                    | (43,935 | )      |                                                |   | (81,934 | )                                    |   |   | (3,876 | ) |   |   | (9,143 | ) |   |   | (47,811 | ) |   |   | (91,077 | ) |

----

|                                                                        |   | First Bank                             |     |   | Corporate, Other and Intercompany Reclassifications |   |     | Consolidated Totals             |   |
|-----------------------------------------------------------------------------|--------|----------------------------------------|----------|--------|-----------------------------------------------------|--------|----------|---------------------------------|--------|
|                                                                        |   | Nine Months Ended September 30,        |     |   | Nine Months Ended September 30,                     |   |     | Nine Months Ended September 30, |   |
|                                                                        |   | 2010                                   |     |   | 2009                                                |   |     | 2010                            |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                                                        |   |  (dollars expressed in thousands) |     |
| Income statement information:                                               |   |                                   |     |   |                                                |   |     |                            |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |                                   |     |   |                                                |   |     |                            |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                             |   | $                                      | 245,989  |   |                                                |   | 310,094  |                            |   |   | 421 |   |   |   | 385 |   |   |   | 246,410 |   |   |   | 310,479 |   |
| Interest expense                                                            |   |                                   | 53,401   |   |                                                |   | 83,753   |                            |   |   | 9,694 |   |   |   | 12,181 |   |   |   | 63,095 |   |   |   | 95,934 |   |
| Net interest income (loss)                                                  |   |                                   | 192,588  |   |                                                |   | 226,341  |                            |   |   | (9,273 | ) |   |   | (11,796 | ) |   |   | 183,315 |   |   |   | 214,545 |   |
| Provision for loan losses                                                   |   |                                   | 162,000  |   |                                                |   | 327,000  |                            |   |   | — |   |   |   | — |   |   |   | 162,000 |   |   |   | 327,000 |   |
| Net interest income (loss) after                                            |   |                                   |     |   |                                                |   |     |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| provision for loan losses                                                   |   |                                   | 30,588   |   |                                                |   | (100,659 | )                               |   |   | (9,273 | ) |   |   | (11,796 | ) |   |   | 21,315 |   |   |   | (112,455 | ) |
| Noninterest income                                                          |   |                                   | 53,729   |   |                                                |   | 61,401   |                            |   |   | (332 | ) |   |   | (5,112 | ) |   |   | 53,397 |   |   |   | 56,289 |   |
| Amortization of intangible assets                                           |   |                                   | 2,613    |   |                                                |   | 3,022    |                            |   |   | — |   |   |   | — |   |   |   | 2,613 |   |   |   | 3,022 |   |
| Other noninterest expense                                                   |   |                                   | 219,066  |   |                                                |   | 185,503  |                            |   |   | 60 |   |   |   | 224 |   |   |   | 219,126 |   |   |   | 185,727 |   |
| Loss from continuing operations before provision (benefit) for income taxes |   |                                   | (137,362 | )      |                                                |   | (227,783 | )                               |   |   | (9,665 | ) |   |   | (17,132 | ) |   |   | (147,027 | ) |   |   | (244,915 | ) |
| Provision (benefit) for income taxes                                        |   |                                   | 5,504    |   |                                                |   | 2,246    |                            |   |   | (158 | ) |   |   | 241 |   |   |   | 5,346 |   |   |   | 2,487 |   |
| Net loss from continuing operations, net of tax                             |   |                                   | (142,866 | )      |                                                |   | (230,029 | )                               |   |   | (9,507 | ) |   |   | (17,373 | ) |   |   | (152,373 | ) |   |   | (247,402 | ) |
| Discontinued operations, net of tax                                         |   |                                   | 10,963   |   |                                                |   | (32,607  | )                               |   |   | — |   |   |   | — |   |   |   | 10,963 |   |   |   | (32,607 | ) |
| Net loss                                                                    |   |                                   | (131,903 | )      |                                                |   | (262,636 | )                               |   |   | (9,507 | ) |   |   | (17,373 | ) |   |   | (141,410 | ) |   |   | (280,009 | ) |
| Net loss attributable to noncontrolling  interest in subsidiaries |   |                                   | (1,082   | )      |                                                |   | (6,207   | )                               |   |   | — |   |   |   | — |   |   |   | (1,082 | ) |   |   | (6,207 | ) |
| Net loss attributable to First Banks, Inc.                                  |   | $                                      | (130,821 | )      |                                                |   | (256,429 | )                               |   |   | (9,507 | ) |   |   | (17,373 | ) |   |   | (140,328 | ) |   |   | (273,802 | ) |

|                                            |   | September 30,2010                |    |   | December 31,2009 |   |
|-------------------------------------------------|--------|----------------------------------|---------|--------|------------------|--------|
|                                            |   | (dollars expressed in thousands) |    |
| Securities sold under agreements to repurchase: |   |                             |    |   |             |   |
| Daily                                           |   | $                                | 47,615  |   |             |   | 47,494 |   |
| Term                                            |   |                             | 120,000 |   |             |   | 120,000 |   |
| FHLB advances (1)                               |   |                             | 200,000 |   |             |   | 600,000 |   |
| Total                                           |   | $                                | 367,615 |   |             |   | 767,494 |   |

|   | (1) | In the first quarter of 2010, First Bank prepaid two $100.0 million FHLB advances and incurred prepayment penalties of $281,000, in aggregate. In the third quarter of 2010, First Bank prepaid an additional two $100.0 million FHLB advances and incurred prepayment penalties of $1.9 million, in aggregate. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               |   | September 30, 2010               |    |   | December 31, 2009 |          |
|--------------------|--------|----------------------------------|---------|--------|-------------------|---------------|
| Maturity Date      |   | Par Amount                       |    |   | Interest Rate     |          |   | Par Amount |   |   | Interest Rate |   |
|               |   | (dollars expressed in thousands) |    |
|               |   |                             |    |   |              |          |   |   |   |   |   |   |
| Fixed Rate:        |   |                             |    |   |              |          |   |   |   |   |   |   |
| April 27, 2011 (1) |   | $                                | — |   |              |  — | % |   | $ | 100,000 |   |   |   | 1.77 | % |
| July 11, 2011 (2)  |   |                             | — |   |              |          | — |   |   |   | 100,000 |   |   |   | 1.49 |   |
| August 8, 2012     |   |                             | 100,000 |   |              |          | 2.20 |   |   |   | 100,000 |   |   |   | 2.20 |   |
| April 23, 2010(3)  |   |                             | — |   |              |          | — |   |   |   | 100,000 |   |   |   | 1.69 |   |
| July 9, 2010 (4)   |   |                             | — |   |              |          | — |   |   |   | 100,000 |   |   |   | 0.85 |   |
|               |   | $                                | 100,000 |   |              |          | 2.20 |   |   | $ | 500,000 |   |   |   | 1.60 |   |
|               |   |                             |    |   |              |          |   |   |   |   |   |   |   |   |   |   |
| Variable Rate:     |   |                             |    |   |              |          |   |   |   |   |   |   |   |   |   |   |
| September 23, 2016 |   | $                                | 100,000 |   |              |          | 0.30 | % |   | $ | 100,000 |   |   |   | 0.20 | % |

| (1) | On August 24, 2010, First Bank prepaid this FHLB advance and incurred a prepayment penalty of $941,000. |
|-----|---------------------------------------------------------------------------------------------------------|

| (2) | On September 27, 2010, First Bank prepaid this FHLB advance and incurred a prepayment penalty of $966,000. |
|-----|------------------------------------------------------------------------------------------------------------|

| (3) | On March 29, 2010, First Bank prepaid this FHLB advance and incurred a prepayment penalty of $104,000. |
|-----|--------------------------------------------------------------------------------------------------------|

| (4) | On March 29, 2010, First Bank prepaid this FHLB advance and incurred a prepayment penalty of $177,000. |
|-----|--------------------------------------------------------------------------------------------------------|

----

| Name of Trust                         |   | Issuance Date  |   | Maturity Date      |   | Call Date (1) |   | Interest Rate(2) |    |    | Trust Preferred Securities       |   |   | Subordinated 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 the Company 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, the Company 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%. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                                                     |   | Three Months EndedSeptember 30,  |    |   | Nine Months EndedSeptember 30, |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|--------------------------------|--------|
|                                                                                                                     |   | 2010                             |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                     |   | (dollars expressed in thousands) |    |
|                                                                                                                     |   |                             |    |   |                           |   |   |   |   |   |   |   |
|                                                                                                                     |   |                             |    |   |                           |   |   |   |   |   |   |   |
| Net loss                                                                                                                 |   | $                                | (48,429 | )      |                           |   | (92,457 | ) |   |   | (141,410 | ) |   |   | (280,009 | ) |
| Other comprehensive income (loss):                                                                                       |   |                             |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gains on available-for-sale investment securities, net of tax                                                 |   |                             | 4,748   |   |                           |   | 3,553 |   |   |   | 15,926 |   |   |   | 4,939 |   |
| Reclassification adjustment for available-for-sale investment securities losses (gains) included in net loss, net of tax |   |                             | 2       |   |                           |   | (2,011 | ) |   |   | (359 | ) |   |   | (2,781 | ) |
| Reclassification adjustment for deferred tax asset valuation allowance on investment securities                          |   |                             | 2,557   |   |                           |   | (1,012 | ) |   |   | 8,382 |   |   |   | (680 | ) |
| Change in unrealized (gains) losses on derivative instruments, net of tax (1)                                            |   |                             | (1,245  | )      |                           |   | 5 |   |   |   | (3,734 | ) |   |   | (4,511 | ) |
| Reclassification adjustment for deferred tax asset valuation allowance on derivative instruments (2)                     |   |                             | 6,146   |   |                           |   | 3 |   |   |   | 4,806 |   |   |   | (2,428 | ) |
| Amortization of net loss related to pension liability, net of tax                                                        |   |                             | 64      |   |                           |   | 35 |   |   |   | 193 |   |   |   | 104 |   |
| Reclassification adjustment for deferred tax asset valuation allowance on pension liability                              |   |                             | 47      |   |                           |   | 25 |   |   |   | 140 |   |   |   | 76 |   |
| Comprehensive loss                                                                                                       |   |                             | (36,110 | )      |                           |   | (91,859 | ) |   |   | (116,056 | ) |   |   | (285,290 | ) |
| Comprehensive loss attributable to noncontrolling interest in subsidiaries                                               |   |                             | (618    | )      |                           |   | (1,380 | ) |   |   | (1,082 | ) |   |   | (6,207 | ) |
| Comprehensive loss attributable to First Banks, Inc.                                                                     |   | $                                | (35,492 | )      |                           |   | (90,479 | ) |   |   | (114,974 | ) |   |   | (279,083 | ) |

| (1) | In the third quarter of 2009, the Company reclassified a cumulative fair value adjustment of $4.6 million on its interest rate swap agreements designated as cash flow hedges on its subordinated debentures from accumulated other comprehensive income to loss on derivative instruments as a result of the discontinuation of hedge accounting following the announcement of the deferral of interest payments on the underlying trust preferred securities in August 2009, as further described in Note 12 and Note 16 to the consolidated financial statements. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | In the third quarter of 2010, the Company reclassified an accumulated other comprehensive loss of $6.8 million related to the establishment of a deferred tax asset valuation allowance to its provision for income taxes related to the expiration of the amortization period of the unrealized gain on certain terminated interest rate swap agreements that had been designated as cash flow hedges on certain loans, as further described in Note 14 and Note 16 to the consolidated financial statements. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                            |   | September 30,2010                |     |   | December 31,2009 |   |
|-------------------------------------------------|--------|----------------------------------|----------|--------|------------------|--------|
|                                            |   | (dollars expressed in thousands) |     |
|                                            |   |                             |     |   |             |   |
| Gross deferred tax assets                       |   | $                                | 362,994  |   |             |   | 319,767 |   |
| Valuation allowance                             |   |                             | (338,596 | )      |             |   | (295,067 | ) |
| Deferred tax assets, net of valuation allowance |   |                             | 24,398   |   |             |   | 24,700 |   |
| Deferred tax liabilities                        |   |                             | 32,270   |   |             |   | 32,572 |   |
| Net deferred tax liabilities                    |   | $                                | (7,872   | )      |             |   | (7,872 | ) |

----

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

----

|                                                   |   | Fair Value Measurements          |    |
|--------------------------------------------------------|--------|----------------------------------|---------|
|                                                   |   | September 30, 2010               |    |
|                                                   |   | Level 1                          |    |   | Level 2 |   |   | Level 3 |   |   | Fair Value |   |
|                                                   |   | (dollars expressed in thousands) |    |
| Assets:                                                |   |                             |    |   |   |   |   |   |   |   |   |   |
| Available-for-sale investment securities:              |   |                             |    |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                                          |   | $                                | 102,000 |   |   |   | — |   |   |   | — |   |   |   | 102,000 |   |
| U.S. Government sponsored agencies                     |   |                             | — |   |   |   | 21,148 |   |   |   | — |   |   |   | 21,148 |   |
| Residential mortgage-backed                            |   |                             | — |   |   |   | 1,164,990 |   |   |   | — |   |   |   | 1,164,990 |   |
| Commercial mortgage-backed                             |   |                             | — |   |   |   | 1,030 |   |   |   | — |   |   |   | 1,030 |   |
| State and political subdivisions                       |   |                             | — |   |   |   | 10,088 |   |   |   | — |   |   |   | 10,088 |   |
| Equity investments                                     |   |                             | 3,819   |   |   |   | 10,678 |   |   |   | — |   |   |   | 14,497 |   |
| Mortgage loans held for sale                           |   |                             | — |   |   |   | 49,268 |   |   |   | — |   |   |   | 49,268 |   |
| Derivative instruments:                                |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer interest rate swap agreements                 |   |                             | — |   |   |   | 985 |   |   |   | — |   |   |   | 985 |   |
| Interest rate lock commitments                         |   |                             | — |   |   |   | 2,940 |   |   |   | — |   |   |   | 2,940 |   |
| Forward commitments to sell mortgage-backed securities |   |                             | — |   |   |   | (883 | ) |   |   | — |   |   |   | (883 | ) |
| Servicing rights                                       |   |                             | — |   |   |   | — |   |   |   | 17,153 |   |   |   | 17,153 |   |
| Total                                                  |   | $                                | 105,819 |   |   |   | 1,260,244 |   |   |   | 17,153 |   |   |   | 1,383,216 |   |
|                                                   |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                           |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative instruments:                                |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap agreements                          |   | $                                | — |   |   |   | 4,553 |   |   |   | — |   |   |   | 4,553 |   |
| Customer interest rate swap agreements                 |   |                             | — |   |   |   | 807 |   |   |   | — |   |   |   | 807 |   |
| Nonqualified deferred compensation plan                |   |                             | 7,502   |   |   |   | — |   |   |   | — |   |   |   | 7,502 |   |
| Total                                                  |   | $                                | 7,502   |   |   |   | 5,360 |   |   |   | — |   |   |   | 12,862 |   |

----

|                                                   |   | 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 |   |

|                                          |   | Servicing Rights                 |    |
|-----------------------------------------------|--------|----------------------------------|---------|
|                                          |   | Three Months EndedSeptember 30,  |    |   | Nine Months Ended September 30, |   |
|                                          |   | 2010                             |    |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                          |   | (dollars expressed in thousands) |    |
|                                          |   |                             |    |   |   |   |   |   |   |   |   |   |
| Balance, beginning of period                  |   | $                                | 19,266  |   |   |   | 18,809 |   |   |   | 20,608 |   |   |   | 16,381 |   |
| Total gains or losses (realized/unrealized):  |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Included in earnings (1)                      |   |                             | (3,375  | ) |   |   | (684 | ) |   |   | (6,239 | ) |   |   | (2,386 | ) |
| Included in other comprehensive income (loss) |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Purchases, issuances and settlements          |   |                             | 1,262   |   |   |   | 1,862 |   |   |   | 2,784 |   |   |   | 5,992 |   |
| Transfers in and/or out of level 3            |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Balance, end of period                        |   | $                                | 17,153  |   |   |   | 19,987 |   |   |   | 17,153 |   |   |   | 19,987 |   |

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

|                |   | Fair Value MeasurementsSeptember 30, 2010 |    |
|---------------------|--------|-------------------------------------------|---------|
|                |   | Level 1                                   |    |   | Level 2 |   |   | Level 3 |   |   | Fair Value |   |
|                |   | (dollars expressed in thousands)          |    |
| Assets:             |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Loans held for sale |   | $                                         | — |   |   |   | 1,759 |   |   |   | — |   |   |   | 1,759 |   |
| Impaired loans      |   |                                      | — |   |   |   | — |   |   |   | 501,769 |   |   |   | 501,769 |   |
| Other real estate   |   |                                      | — |   |   |   | — |   |   |   | 170,659 |   |   |   | 170,659 |   |
| Total               |   | $                                         | — |   |   |   | 1,759 |   |   |   | 672,428 |   |   |   | 674,187 |   |

|                |   | Fair Value MeasurementsDecember 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 |   |
| Other real estate   |   |                                     | — |   |   |   | — |   |   |   | 125,226 |   |   |   | 125,226 |   |
| Total               |   | $                                        | — |   |   |   | 7,122 |   |   |   | 787,306 |   |   |   | 794,428 |   |

----

----

|                                                                             |   | September 30, 2010               |      |   | December 31, 2009   |   |
|----------------------------------------------------------------------------------|--------|----------------------------------|-----------|--------|---------------------|--------|
|                                                                             |   | CarryingValue                    |      |   | EstimatedFair Value |   |   | CarryingValue |   |   | EstimatedFair Value |   |
|                                                                             |   | (dollars expressed in thousands) |      |
| Financial Assets:                                                                |   |                             |      |   |                |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                        |   | $                                | 1,113,430 |   |                |   | 1,113,430 |   |   |   | 2,516,251 |   |   |   | 2,516,251 |   |
| Investment securities:                                                           |   |                             |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Available for sale                                                               |   |                             | 1,313,753 |   |                |   | 1,313,753 |   |   |   | 527,332 |   |   |   | 527,332 |   |
| Held to maturity                                                                 |   |                             | 12,153    |   |                |   | 13,359 |   |   |   | 14,225 |   |   |   | 15,258 |   |
| Loans held for portfolio                                                         |   |                             | 4,790,308 |   |                |   | 4,445,822 |   |   |   | 6,299,161 |   |   |   | 5,902,354 |   |
| Loans held for sale                                                              |   |                             | 51,027    |   |                |   | 51,027 |   |   |   | 42,684 |   |   |   | 42,684 |   |
| FHLB and Federal Reserve Bank stock                                              |   |                             | 40,211    |   |                |   | 40,211 |   |   |   | 65,076 |   |   |   | 65,076 |   |
| Derivative instruments                                                           |   |                             | 3,042     |   |                |   | 3,042 |   |   |   | 1,605 |   |   |   | 1,605 |   |
| Bank-owned life insurance                                                        |   |                             | —   |   |                |   | — |   |   |   | 26,372 |   |   |   | 26,372 |   |
| Accrued interest receivable                                                      |   |                             | 24,272    |   |                |   | 24,272 |   |   |   | 25,731 |   |   |   | 25,731 |   |
| Assets held for sale                                                             |   |                             | —   |   |                |   | — |   |   |   | 16,975 |   |   |   | 16,975 |   |
| Assets of discontinued operations                                                |   |                             | —   |   |                |   | — |   |   |   | 518,056 |   |   |   | 518,056 |   |
|                                                                             |   |                             |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities:                                                           |   |                             |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                        |   |                             |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand                                                       |   | $                                | 1,155,016 |   |                |   | 1,155,016 |   |   |   | 1,270,276 |   |   |   | 1,270,276 |   |
| Interest-bearing demand                                                          |   |                             | 931,453   |   |                |   | 931,453 |   |   |   | 914,020 |   |   |   | 914,020 |   |
| Savings and money market                                                         |   |                             | 2,193,875 |   |                |   | 2,193,875 |   |   |   | 2,260,869 |   |   |   | 2,260,869 |   |
| Time deposits                                                                    |   |                             | 2,359,557 |   |                |   | 2,378,444 |   |   |   | 2,618,808 |   |   |   | 2,640,741 |   |
| Other borrowings                                                                 |   |                             | 367,615   |   |                |   | 376,110 |   |   |   | 767,494 |   |   |   | 764,992 |   |
| Derivative instruments                                                           |   |                             | 5,360     |   |                |   | 5,360 |   |   |   | 4,516 |   |   |   | 4,516 |   |
| Accrued interest payable                                                         |   |                             | 20,565    |   |                |   | 20,565 |   |   |   | 12,196 |   |   |   | 12,196 |   |
| Subordinated debentures                                                          |   |                             | 353,962   |   |                |   | 274,181 |   |   |   | 353,905 |   |   |   | 272,007 |   |
| Liabilities held for sale                                                        |   |                             | —   |   |                |   | — |   |   |   | 24,381 |   |   |   | 23,164 |   |
| Liabilities of discontinued operations                                           |   |                             | —   |   |                |   | — |   |   |   | 1,730,264 |   |   |   | 1,660,206 |   |
|                                                                             |   |                             |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Off-Balance Sheet Financial Instruments:                                         |   |                             |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to extend credit, standby letters of credit and financial guarantees |   | $                                | (730      | )      |                |   | (730 | ) |   |   | (738 | ) |   |   | (738 | ) |

|                                                   |   | September 30, 2010               |    |   | December 31, 2009 |   |
|--------------------------------------------------------|--------|----------------------------------|---------|--------|-------------------|--------|
|                                                   |   | Notional Amount                  |    |   | Credit Exposure   |   |   | Notional Amount |   |   | Credit Exposure |   |
|                                                   |
|                                                   |   | (dollars expressed in thousands) |    |
|                                                   |   |                             |    |   |              |   |   |   |   |   |   |   |
| Cash flow hedges – subordinated debentures (1)   |   | $                                | 125,000 |   |              |   | — |   |   |   | 125,000 |   |   |   | — |   |
| Customer interest rate swap contracts                  |   |                             | 55,721  |   |              |   | 1,061 |   |   |   | 80,194 |   |   |   | 683 |   |
| Interest rate lock commitments                         |   |                             | 119,000 |   |              |   | 2,940 |   |   |   | 36,000 |   |   |   | 369 |   |
| Forward commitments to sell mortgage-backed securities |   |                             | 135,000 |   |              |   | — |   |   |   | 61,000 |   |   |   | 647 |   |

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

----

| Maturity Date       |   | Notional Amount                  |    |   | Interest RatePaid |   |   | Interest Rate Received |   |   | FairValue |   |
|---------------------|--------|----------------------------------|---------|--------|-------------------|--------|--------|------------------------|--------|--------|-----------|--------|
|                |   | (dollars expressed in thousands) |    |
| September 30, 2010: |   |                             |    |   |              |   |   |                   |   |   |      |   |
| July 7, 2011        |   | $                                | 25,000  |   |              |   | 4.40   | %                      |   |   | 2.18      | %      |   | $ | (461 | ) |
| December 15, 2011   |   |                             | 50,000  |   |              |   | 4.91   |                   |   |   | 2.14      |   |   |   | (1,606 | ) |
| March 30, 2012      |   |                             | 25,000  |   |              |   | 4.71   |                   |   |   | 1.90      |   |   |   | (992 | ) |
| December 15, 2012   |   |                             | 25,000  |   |              |   | 5.57   |                   |   |   | 2.54      |   |   |   | (1,494 | ) |
|                |   | $                                | 125,000 |   |              |   | 4.90   |                   |   |   | 2.18      |   |   | $ | (4,553 | ) |
| 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, the Company 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 the Company’s commercial loan portfolio. The swap agreements provided for the Company 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 the Company to pay and receive interest on a quarterly basis. In December 2008, the Company terminated these swap agreements. The pre-tax gain of $20.8 million, in the aggregate, was 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. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                        |   | September 30, 2010               |   | December 31, 2009      |   |
|---------------------------------------------------------------------------------------------|--------|----------------------------------|--------|------------------------|--------|
|                                                                                        |   | Balance Sheet Location           |   | Fair Value Gain (Loss) |   | Balance Sheet Location |   | Fair Value 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                     |   | $                      | 985    |   | Other assets |   | $ | 589 |   |
| Interest rate lock commitments                                                              |   | Other assets                     |   |                   | 2,940  |   | Other assets |   |   | 369 |   |
| Forward commitments to sell mortgage-backed securities                                      |   | Other assets                     |   |                   | (883   | )  | Other assets |   |   | 647 |   |
| Total derivatives in other assets                                                           |   |                             |   | $                      | 3,042  |   |   |   | $ | 1,605 |   |
|                                                                                        |   |                             |   |                   |   |   |   |   |   |   |   |
| Interest rate swap agreements – subordinated debentures                               |   | Other liabilities                |   | $                      | (4,553 | ) | Other liabilities |   | $ | (4,171 | ) |
| Customer interest rate swap agreements                                                      |   | Other liabilities                |   |                   | (807   | ) | Other liabilities |   |   | (345 | ) |
| Total derivatives in other liabilities                                                      |   |                             |   | $                      | (5,360 | ) |   |   | $ | (4,516 | ) |

----

|                                                                                                         |   | Three Months EndedSeptember 30,  |    |   | Nine Months EndedSeptember 30, |   |
|--------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|--------------------------------|--------|
|                                                                                                         |   | 2010                             |    |   | 2009                           |   |   | 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 |   |   |   | 5,745 |   |   |   | 11,815 |   |
|                                                                                                         |   |                             |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Cash flow hedges – subordinated debentures(1):                                                    |   |                             |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Amount reclassified from accumulated other comprehensive loss to interest expense on subordinated debentures |   |                             | — |   |                           |   | 260 |   |   |   | — |   |   |   | 1,279 |   |
| Amount reclassified from accumulated other comprehensive income to net gain (loss) on derivative instruments |   |                             | — |   |                           |   | (4,587 | ) |   |   | — |   |   |   | (4,587 | ) |
| Amount of unrealized gain (loss) recognized in other comprehensive loss                                      |   |                             | — |   |                           |   | (901 | )  |   |   |  — |   |   |   | (990 | ) |

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

|                                                                                        |   | ThreeMonthsEnded September 30,   |   |   | Nine Months Ended September 30, |   |
|---------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|                                                                                        |   | 2010                             |   |   | 2009                            |   |   | 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                                                          |   | $                                | (850   | )      |                            |   | (5,118 | ) |   |   | (2,942 | ) |   |   | (5,118 | ) |
|                                                                                        |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Customer interest rate swap agreements:                                                     |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net gain on derivative instruments                                                          |   |                             | 1      |   |                            |   | 280 |   |   |   | 3 |   |   |   | 681 |   |
|                                                                                        |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate lock commitments:                                                             |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Gain on loans sold and held for sale                                                        |   |                             | 955    |   |                            |   | 602 |   |   |   | 2,571 |   |   |   | 355 |   |
|                                                                                        |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Forward commitments to sell mortgage-backed securities:                                     |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Gain (loss) on loans sold and held for sale                                                 |   |                             | 535    |   |                            |   | (1,343 | ) |   |   | (1,530 | ) |   |   | (507 | ) |

----

----

Item 2

|   | 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 | Our ability to maintain capital at levels necessary or desirable to support our operations; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | 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 | Regulatory actions that impact First Banks, Inc. and First Bank, including the regulatory agreements entered into among First Banks, Inc., 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;” |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 | The effects of and changes in trade and monetary and fiscal policies and laws, including, but not limited to, the Dodd-Frank Wall Street Reform and Consumer Protection Act, 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; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

----

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

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

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

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

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

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

|   | Ø | HVIIHC, Inc. |
|--------|--------|--------------|

----

|   | Ø | The sale of certain assets and the transfer of certain liabilities of our branch banking office located in Jacksonville, Illinois, or the Jacksonville Branch, to Bank of Springfield, under a Branch Purchase and Assumption Agreement dated June 7, 2010. We completed the transaction with Bank of Springfield on September 24, 2010. Under the terms of the agreement, Bank of Springfield assumed approximately $28.9 million of deposits associated with our Jacksonville Branch, including certain commercial deposit relationships, for a premium of approximately 4.00%. Bank of Springfield also purchased approximately $2.2 million of loans as well as certain other assets at par value, including premises and equipment, associated with our Jacksonville Branch. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of certain assets and the transfer of certain liabilities of 10 of our retail branches in Peoria, Galesburg, Quincy, Bartonville, Knoxville and Bloomington, Illinois to First Mid-Illinois Bank & Trust, N.A., or First Mid-Illinois, under a Branch Purchase and Assumption Agreement dated May 7, 2010. We completed the transaction with First Mid-Illinois on September 10, 2010. Under the terms of the agreement, First Mid-Illinois assumed approximately $336.0 million of deposits associated with these branches, including certain commercial deposit relationships, for a premium of approximately 4.77%. First Mid-Illinois also purchased approximately $135.2 million of loans as well as certain other assets at par value, including premises and equipment, associated with these branches. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Ø | The sale of certain assets and the transfer of certain liabilities of our Texas franchise, 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 5.50%, 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 Region. We recognized a 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 the Texas Region of approximately $20.0 million. In addition, this transaction reduced our risk-weighted assets by approximately $116.3 million. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of Missouri Valley Partners, Inc., or 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 $515,000. We completed the sale of MVP on April 15, 2010 and recorded a loss of approximately $156,000 during the second quarter of 2010. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of certain assets and the transfer of certain liabilities of our Chicago franchise, or Chicago Region, 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 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. FirstMerit also purchased approximately $301.2 million in loans as well as certain other assets at par value, including premises and equipment, associated with our Chicago Region. 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 the Chicago Region of approximately $26.3 million. In addition, this transaction reduced our risk-weighted assets by approximately $342.6 million. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of approximately $141.3 million of loans associated with our premium financing subsidiary, WIUS, Inc. and its wholly owned subsidiary, WIUS of California, Inc., collectively WIUS (formerly 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. We recognized a loss on sale of approximately $13.1 million after the write-off of goodwill and intangible assets allocated to the sale of approximately $20.0 million. This transaction reduced our risk-weighted assets by approximately $146.7 million. On August 31, 2010, First Bank sold all of the capital stock of WIUS to an unrelated third party for a purchase price of approximately $100,000, which resulted in a gain on sale of approximately $38,000. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of certain asset-based lending loans to FirstMerit in conjunction with the Chicago Region 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 $119.3 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 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 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 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 and recorded a 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. 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 and recorded a 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 the Company’s net risk-weighted assets to $5.40 billion at September 30, 2010, representing decreases of $2.17 million from $7.56 billion at December 31, 2009, $4.08 billion from $9.48 billion at December 31, 2008 and $4.84 billion from $10.25 billion at December 31, 2007. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | Gain (Loss) on Sale              |    |   | Decrease in Intangible Assets |   |    | Decrease in Risk-Weighted Assets |   |   | Total Risk-Based Capital Benefit (1) |   |
|-----------------------------------------|--------|----------------------------------|---------|--------|-------------------------------|--------|---------|----------------------------------|--------|--------|--------------------------------------|--------|
|                                    |   | (dollars expressed in thousands) |    |
|                                    |   |                             |    |   |                          |   |    |                             |   |   |                                 |   |
| Sale of Northern Illinois Region        |   | $                                | 6,375   |   |                          |   | 9,683   |                             |   |   | 141,800                              |   |   |   | 28,500 |   |
| Sale of Texas Region                    |   |                             | 4,984   |   |                          |   | 19,962  |                             |   |   | 116,300                              |   |   |   | 35,100 |   |
| Sale of MVP                             |   |                             | (156    | )      |                          |   | — |                             |   |   | 800                                  |   |   |   | (100 | ) |
| Sale of Chicago Region                  |   |                             | 8,414   |   |                          |   | 26,273  |                             |   |   | 342,600                              |   |   |   | 64,700 |   |
| Sale of Lawrenceville Branch            |   |                             | 168     |   |                          |   | 1,000   |                             |   |   | 11,400                               |   |   |   | 2,200 |   |
| Reduction in Other Risk-Weighted Assets |   |                             | — |   |                          |   | — |                             |   |   | 1,552,600                            |   |   |   | 135,900 |   |
| Total, 2010 Capital Initiatives         |   | $                                | 19,785  |   |                          |   | 56,918  |                             |   |   | 2,165,500                            |   |   |   | 266,300 |   |
| Sale of WIUS loans                      |   | $                                | (13,077 | )      |                          |   | 19,982  |                             |   |   | 146,700                              |   |   |   | 19,700 |   |
| Sale of asset-based lending loans       |   |                             | (6,147  | )      |                          |   | — |                             |   |   | 119,300                              |   |   |   | 4,300 |   |
| Sale of restaurant franchise loans      |   |                             | (1,149  | )      |                          |   | — |                             |   |   | 64,400                               |   |   |   | 4,500 |   |
| Sale of ANB                             |   |                             | 120     |   |                          |   | 13,013  |                             |   |   | 1,300                                |   |   |   | 13,200 |   |
| Sale of Springfield Branch              |   |                             | 309     |   |                          |   | 1,000   |                             |   |   | 900                                  |   |   |   | 1,400 |   |
| Reduction in Other Risk-Weighted Assets |   |                             | — |   |                          |   | — |                             |   |   | 1,580,400                            |   |   |   | 138,300 |   |
| Total, 2009 Capital Initiatives         |   | $                                | (19,944 | )      |                          |   | 33,995  |                             |   |   | 1,913,000                            |   |   |   | 181,400 |   |
| Total Completed Capital Initiatives     |   | $                                | (159    | )      |                          |   | 90,913  |                             |   |   | 4,078,500                            |   |   |   | 447,700 |   |

|   | (1) | Calculated as the sum of the gain (loss) on sale plus the reduction in intangible assets plus 8.75% of the reduction in risk-weighted assets. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 in the overall level of our nonperforming assets and potential problem loans; |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | 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; |
|--------|--------|------------------------------------------------------------------------------|

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

|   | Ø | Exploration of possible capital planning strategies to increase the overall level of Tier 1 risk-based capital at our holding company, including the consent solicitation described above. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | Ø | Directs the Board of Governors of the Federal Reserve System, or Federal Reserve, to issue rules which are expected to limit debit-card interchange fees; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | After a three-year phase-in period which begins January 1, 2013, removes trust preferred securities as a permitted component of a holding company’s Tier 1 capital for holding companies with more than $15 billion of assets, and restricts new issuances of trust preferred securities from being included as Tier 1 capital for all holding companies; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Provides for an increase in the Federal Deposit Insurance Corporation, or FDIC, assessment for depository institutions with assets of $10 billion or more, increases in the minimum reserve ratio for the deposit insurance fund from 1.15% to 1.35% and changes in the basis for determining FDIC premiums from deposits to assets less tangible capital; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Creates a new consumer financial protection bureau that will have rulemaking authority for a wide range of consumer protection laws that would apply to all banks and would have broad powers to supervise and enforce consumer protection laws; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Provides for new disclosure and other requirements relating to executive compensation and corporate governance; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | Ø | Changes standards for federal preemption of state laws related to federally chartered institutions and their subsidiaries; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Provides mortgage reform provisions regarding a customer’s ability to repay, restricting variable-rate lending by requiring the ability to repay to be determined for variable-rate loans by using the maximum rate that will apply during the first five years of a variable-rate loan term, and making more loans subject to provisions for higher cost loans, new disclosures, and certain other revisions; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Creates a financial stability oversight council that will recommend to the Federal Reserve increasingly strict rules for capital, leverage, liquidity, risk management and other requirements as companies grow in size and complexity; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Permanently increases the deposit insurance coverage to $250,000; |
|--------|--------|-------------------------------------------------------------------|

|   | Ø | Repeals the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Requires publicly-traded bank holding companies with assets of $10 billion or more to establish a risk committee responsible for enterprise-wide risk management practices; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Increases the authority of the Federal Reserve in its regular examinations; |
|--------|--------|-----------------------------------------------------------------------------|

|   | Ø | Requires all bank holding companies to serve as a source of financial strength to their depository institution subsidiaries in the event such subsidiaries suffer from financial distress; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Restricts proprietary trading by banks, bank holding companies and others, and their acquisition and retention of ownership interests in and sponsorship of hedge funds and private equity funds. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|   | Ø | The sale of our Texas Region on April 30, 2010, resulting in a cash outflow of approximately $352.9 million; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of 11 branch offices in our Northern Illinois Region in September 2010, resulting in a cash outflow of approximately $203.5 million, in the aggregate; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of our Lawrenceville Branch on January 22, 2010, resulting in a cash outflow of $8.3 million; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | Ø | A net increase in our investment securities portfolio of $784.3 million during the first nine months of 2010; |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease in deposit balances of $86.1 million, excluding the impact of the divestitures of the Chicago, Texas and Northern Illinois Regions and the Lawrenceville Branch; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The prepayment of $400.0 million of FHLB advances. |
|--------|--------|----------------------------------------------------|

|   | Ø | A decrease in loans of $1.04 billion, exclusive of net charge-offs, transfers to other real estate and the impact of the divestiture of the Chicago, Texas and Northern Illinois Regions and the Lawrenceville Branch; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The termination of our remaining bank-owned life insurance policies during the first nine months of 2010 resulting in the receipt of the cash proceeds from the surrender of the policies of approximately $25.9 million; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Sales of other real estate properties resulting in the receipt of cash proceeds from these sales of approximately $63.5 million; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The redemption of $6.6 million of FRB stock associated with the reduction in our total assets and $18.3 million of FHLB stock associated with the prepayment of $400.0 million of FHLB advances. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | Ø | A net loss, including discontinued operations, of $140.3 million; |
|--------|--------|-------------------------------------------------------------------|

|   | Ø | Dividends declared of $12.7 million on our Class C and Class D Preferred Stock; and |
|--------|--------|-------------------------------------------------------------------------------------|

|   | Ø | A decrease in noncontrolling interest in subsidiaries of $1.1 million associated with net losses in FB Holdings; partially offset by |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A net increase in accumulated other comprehensive income of $25.4 million primarily associated with changes in unrealized gains and losses on available-for-sale investment securities and derivative financial instruments. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A provision for loan losses of $37.0 million and $162.0 million for the three and nine months ended September 30, 2010, respectively, compared to $107.0 million and $327.0 million for the comparable periods in 2009; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Net interest income of $59.2 million and $183.3 million for the three and nine months ended September 30, 2010, respectively, compared to $70.0 million and $214.5 million for the comparable periods in 2009, which contributed to a decline in our net interest margin to 3.01% and 2.97% for the three and nine months ended September 30, 2010, respectively, compared to 3.03% and 3.20% for the comparable periods in 2009; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Ø | Noninterest income of $17.3 million and $53.4 million for the three and nine months ended September 30, 2010, respectively, compared to $15.2 million and $56.3 million for the comparable periods in 2009; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Noninterest expense of $88.8 million and $221.7 million for the three and nine months ended September 30, 2010, respectively, compared to $62.2 million and $188.7 million for the comparable periods in 2009; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A provision for income taxes of $5.2 million and $5.3 million for the three and nine months ended September 30, 2010, respectively, compared to $58,000 and $2.5 million for the comparable periods in 2009; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Net income from discontinued operations, net of tax, of $6.2 million and $11.0 million for the three and nine months ended September 30, 2010, respectively, compared to net losses from discontinued operations of $8.4 million and $32.6 million for the comparable periods in 2009; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Net losses attributable to noncontrolling interest in subsidiaries of $618,000 and $1.1 million for the three and nine months ended September 30, 2010, respectively, compared to $1.4 million and $6.2 million for the comparable periods in 2009. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                                             |   | Three Months Ended September 30, |      |   | Nine Months Ended September 30, |   |
|--------------------------------------------------|--------|----------------------------------|-----------|--------|---------------------------------|--------|
|                                             |   | 2010                             |      |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
|                                             |   | AverageBalance                   |      |   | InterestIncome/Expense          |   |   | Yield/Rate |   |   | AverageBalance |   |   | InterestIncome/Expense |   |   | Yield/Rate |   |   | AverageBalance |   |   | InterestIncome/Expense |   |   | Yield/Rate |   |   | AverageBalance |   |   | InterestIncome/Expense |   |   | Yield/Rate |   |
|                                             |   | (dollars expressed in thousands) |      |
| ASSETS                                           |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                         |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans (1)(2)(3)(4)                               |   | $                                | 5,288,738 |   |                            |   | 70,311 |   |   |   | 5.27 | % |   | $ | 7,253,882 |   |   |   | 92,053 |   |   |   | 5.03 | % |   | $ | 5,802,930 |   |   |   | 223,601 |   |   |   | 5.15 | % |   | $ | 7,568,325 |   |   |   | 287,694 |   |   |   | 5.08 | % |
| Investment securities (4)                        |   |                             | 1,149,845 |   |                            |   | 6,941 |   |   |   | 2.39 |   |   |   | 709,213 |   |   |   | 6,226 |   |   |   | 3.48 |   |   |   | 910,360 |   |   |   | 18,814 |   |   |   | 2.76 |   |   |   | 649,713 |   |   |   | 20,242 |   |   |   | 4.17 |   |
| FHLB and FRB stock                               |   |                             | 48,573    |   |                            |   | 466 |   |   |   | 3.81 |   |   |   | 60,725 |   |   |   | 629 |   |   |   | 4.11 |   |   |   | 54,164 |   |   |   | 1,542 |   |   |   | 3.81 |   |   |   | 54,752 |   |   |   | 1,573 |   |   |   | 3.84 |   |
| Short-term investments                           |   |                             | 1,322,293 |   |                            |   | 841 |   |   |   | 0.25 |   |   |   | 1,171,017 |   |   |   | 765 |   |   |   | 0.26 |   |   |   | 1,502,680 |   |   |   | 2,847 |   |   |   | 0.25 |   |   |   | 728,808 |   |   |   | 1,669 |   |   |   | 0.31 |   |
| Total interest-earningassets                     |   |                             | 7,809,449 |   |                            |   | 78,559 |   |   |   | 3.99 |   |   |   | 9,194,837 |   |   |   | 99,673 |   |   |   | 4.30 |   |   |   | 8,270,134 |   |   |   | 246,804 |   |   |   | 3.99 |   |   |   | 9,001,598 |   |   |   | 311,178 |   |   |   | 4.62 |   |
| Nonearning assets                                |   |                             | 457,993   |   |                            |   |   |   |   |   |   |   |   |   | 544,151 |   |   |   |   |   |   |   |   |   |   |   | 450,508 |   |   |   |   |   |   |   |   |   |   |   | 635,171 |   |   |   |   |   |   |   |   |   |
| Assets of discontinued operations                |   |                             | 125,627   |   |                            |   |   |   |   |   |   |   |   |   | 927,174 |   |   |   |   |   |   |   |   |   |   |   | 293,409 |   |   |   |   |   |   |   |   |   |   |   | 907,312 |   |   |   |   |   |   |   |   |   |
| Total assets                                     |   | $                                | 8,393,069 |   |                            |   |   |   |   |   |   |   |   | $ | 10,666,162 |   |   |   |   |   |   |   |   |   |   | $ | 9,014,051 |   |   |   |   |   |   |   |   |   |   | $ | 10,544,081 |   |   |   |   |   |   |   |   |   |
|                                             |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY       |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                    |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits:                       |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand                          |   | $                                | 940,809   |   |                            |   | 347 |   |   |   | 0.15 | % |   | $ | 853,863 |   |   |   | 395 |   |   |   | 0.18 | % |   | $ | 910,562 |   |   |   | 1,084 |   |   |   | 0.16 | % |   | $ | 830,449 |   |   |   | 1,169 |   |   |   | 0.19 | % |
| Savings and money market                         |   |                             | 2,195,364 |   |                            |   | 3,686 |   |   |   | 0.67 |   |   |   | 2,278,585 |   |   |   | 5,395 |   |   |   | 0.94 |   |   |   | 2,187,951 |   |   |   | 11,738 |   |   |   | 0.72 |   |   |   | 2,224,556 |   |   |   | 18,833 |   |   |   | 1.13 |   |
| Time deposits of $100 or more                    |   |                             | 924,823   |   |                            |   | 4,044 |   |   |   | 1.73 |   |   |   | 846,926 |   |   |   | 6,076 |   |   |   | 2.85 |   |   |   | 916,590 |   |   |   | 12,592 |   |   |   | 1.84 |   |   |   | 858,758 |   |   |   | 19,989 |   |   |   | 3.11 |   |
| Other time deposits                              |   |                             | 1,465,628 |   |                            |   | 6,507 |   |   |   | 1.76 |   |   |   | 1,557,921 |   |   |   | 11,209 |   |   |   | 2.85 |   |   |   | 1,485,957 |   |   |   | 20,777 |   |   |   | 1.87 |   |   |   | 1,591,391 |   |   |   | 36,692 |   |   |   | 3.08 |   |
| Total interest-bearing deposits                  |   |                             | 5,526,624 |   |                            |   | 14,584 |   |   |   | 1.05 |   |   |   | 5,537,295 |   |   |   | 23,075 |   |   |   | 1.65 |   |   |   | 5,501,060 |   |   |   | 46,191 |   |   |   | 1.12 |   |   |   | 5,505,154 |   |   |   | 76,683 |   |   |   | 1.86 |   |
| Other borrowings                                 |   |                             | 521,588   |   |                            |   | 1,251 |   |   |   | 0.95 |   |   |   | 659,784 |   |   |   | 2,851 |   |   |   | 1.71 |   |   |   | 614,323 |   |   |   | 7,194 |   |   |   | 1.57 |   |   |   | 488,978 |   |   |   | 6,849 |   |   |   | 1.87 |   |
| Notes payable (5)                                |   |                             | —   |   |                            |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 37 |   |   |   | — |   |
| Subordinated debentures (3)                      |   |                             | 353,953   |   |                            |   | 3,410 |   |   |   | 3.82 |   |   |   | 353,876 |   |   |   | 3,555 |   |   |   | 3.99 |   |   |   | 353,934 |   |   |   | 9,710 |   |   |   | 3.67 |   |   |   | 353,857 |   |   |   | 12,365 |   |   |   | 4.67 |   |
| Total interest-bearing liabilities               |   |                             | 6,402,165 |   |                            |   | 19,245 |   |   |   | 1.19 |   |   |   | 6,550,955 |   |   |   | 29,481 |   |   |   | 1.79 |   |   |   | 6,469,317 |   |   |   | 63,095 |   |   |   | 1.30 |   |   |   | 6,347,989 |   |   |   | 95,934 |   |   |   | 2.02 |   |
| Noninterest-bearing liabilities:                 |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                  |   |                             | 1,147,848 |   |                            |   |   |   |   |   |   |   |   |   | 1,098,483 |   |   |   |   |   |   |   |   |   |   |   | 1,154,724 |   |   |   |   |   |   |   |   |   |   |   | 1,070,483 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                |   |                             | 111,914   |   |                            |   |   |   |   |   |   |   |   |   | 96,877 |   |   |   |   |   |   |   |   |   |   |   | 105,511 |   |   |   |   |   |   |   |   |   |   |   | 95,695 |   |   |   |   |   |   |   |   |   |
| Liabilities of discontinued operations           |   |                             | 300,076   |   |                            |   |   |   |   |   |   |   |   |   | 2,150,685 |   |   |   |   |   |   |   |   |   |   |   | 808,682 |   |   |   |   |   |   |   |   |   |   |   | 2,155,162 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                |   |                             | 7,962,003 |   |                            |   |   |   |   |   |   |   |   |   | 9,897,000 |   |   |   |   |   |   |   |   |   |   |   | 8,538,234 |   |   |   |   |   |   |   |   |   |   |   | 9,669,329 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                       |   |                             | 431,066   |   |                            |   |   |   |   |   |   |   |   |   | 769,162 |   |   |   |   |   |   |   |   |   |   |   | 475,817 |   |   |   |   |   |   |   |   |   |   |   | 874,752 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity |   | $                                | 8,393,069 |   |                            |   |   |   |   |   |   |   |   | $ | 10,666,162 |   |   |   |   |   |   |   |   |   |   | $ | 9,014,051 |   |   |   |   |   |   |   |   |   |   | $ | 10,544,081 |   |   |   |   |   |   |   |   |   |
|                                             |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                              |   |                             |      |   |                            |   | 59,314 |   |   |   |   |   |   |   |   |   |   |   | 70,192 |   |   |   |   |   |   |   |   |   |   |   | 183,709 |   |   |   |   |   |   |   |   |   |   |   | 215,244 |   |   |   |   |   |
| Interest rate spread                             |   |                             |      |   |                            |   |   |   |   |   | 2.80 |   |   |   |   |   |   |   |   |   |   |   | 2.51 |   |   |   |   |   |   |   |   |   |   |   | 2.69 |   |   |   |   |   |   |   |   |   |   |   | 2.60 |   |
| Net interest margin (6)                          |   |                             |      |   |                            |   |   |   |   |   | 3.01 | % |   |   |   |   |   |   |   |   |   |   | 3.03 | % |   |   |   |   |   |   |   |   |   |   | 2.97 | % |   |   |   |   |   |   |   |   |   |   | 3.20 | % |

| (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 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 $125,000 and $394,000 for the three and nine months ended September 30, 2010, respectively, and $221,000 and $699,000 for the comparable periods in 2009. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Interest expense on our notes payable reflects commitment fees for the three and nine months ended September 30, 2009. |
|-----|------------------------------------------------------------------------------------------------------------------------|

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

----

|                              |   | Increase (Decrease) Attributable to Change in:       |    |
|-----------------------------------|--------|------------------------------------------------------|---------|
|                              |   | Three Months EndedSeptember 30, 2010Compared to 2009 |    |   | Nine Months EndedSeptember 30, 2010Compared to 2009 |   |
|                              |   | Volume                                               |    |   | Rate |   |   | Net Change |   |   | Volume |   |   | Rate |   |   | Net Change |   |
|                              |   | (dollars expressed in thousands)                     |    |
| Interest earned on:               |   |                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans: (1) (2) (3)                |   |                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                           |   | $                                                    | (25,728 | ) |   |   | 4,186 |   |   |   | (21,542 | ) |   |   | (67,527 | ) |   |   | 3,880 |   |   |   | (63,647 | ) |
| Tax-exempt (4)                    |   |                                                 | (312    | ) |   |   | 112 |   |   |   | (200 | ) |   |   | (834 | ) |   |   | 388 |   |   |   | (446 | ) |
| Investment securities:            |   |                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                           |   |                                                 | 3,022   |   |   |   | (2,231 | ) |   |   | 791 |   |   |   | 6,642 |   |   |   | (7,643 | ) |   |   | (1,001 | ) |
| Tax-exempt (4)                    |   |                                                 | (81     | ) |   |   | 5 |   |   |   | (76 | ) |   |   | (430 | ) |   |   | 3 |   |   |   | (427 | ) |
| FHLB and FRB stock                |   |                                                 | (119    | ) |   |   | (44 | ) |   |   | (163 | ) |   |   | (18 | ) |   |   | (13 | ) |   |   | (31 | ) |
| Short-term investments            |   |                                                 | 104     |   |   |   | (28 | ) |   |   | 76 |   |   |   | 1,550 |   |   |   | (372 | ) |   |   | 1,178 |   |
| Total interest income             |   |                                                 | (23,114 | ) |   |   | 2,000 |   |   |   | (21,114 | ) |   |   | (60,617 | ) |   |   | (3,757 | ) |   |   | (64,374 | ) |
| Interest paid on:                 |   |                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits  |   |                                                 | 31      |   |   |   | (79 | ) |   |   | (48 | ) |   |   | 109 |   |   |   | (194 | ) |   |   | (85 | ) |
| Savings and money market deposits |   |                                                 | (193    | ) |   |   | (1,516 | ) |   |   | (1,709 | ) |   |   | (308 | ) |   |   | (6,787 | ) |   |   | (7,095 | ) |
| Time deposits                     |   |                                                 | (103    | ) |   |   | (6,631 | ) |   |   | (6,734 | ) |   |   | (1,085 | ) |   |   | (22,227 | ) |   |   | (23,312 | ) |
| Other borrowings                  |   |                                                 | (513    | ) |   |   | (1,087 | ) |   |   | (1,600 | ) |   |   | 1,562 |   |   |   | (1,217 | ) |   |   | 345 |   |
| Notes payable (5)                 |   |                                                 | — |   |   |   | — |   |   |   | — |   |   |   | (37 | ) |   |   | — |   |   |   | (37 | ) |
| Subordinated debentures (3)       |   |                                                 | 1       |   |   |   | (146 | ) |   |   | (145 | ) |   |   | 3 |   |   |   | (2,658 | ) |   |   | (2,655 | ) |
| Total interest expense            |   |                                                 | (777    | ) |   |   | (9,459 | ) |   |   | (10,236 | ) |   |   | 244 |   |   |   | (33,083 | ) |   |   | (32,839 | ) |
| Net interest income               |   | $                                                    | (22,337 | ) |   |   | 11,459 |   |   |   | (10,878 | ) |   |   | (60,861 | ) |   |   | 29,326 |   |   |   | (31,535 | ) |

| (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 for the three and nine months ended September 30, 2009. |
|-----|------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | Ø | An operating loss of $13.6 million for the three and nine months ended September 30, 2010 resulting from suspected fraud involving a customer loan relationship; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A litigation settlement of $1.0 million for the three and nine months ended September 30, 2010; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | Ø | Loan expenses associated with collection efforts related to asset quality matters of $962,000 and $4.2 million for the three and nine months ended September 30, 2010, respectively, compared to $1.6 and $4.2 million for the comparable periods in 2009; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Prepayment penalties of $1.9 million for the three and nine months ended September 30, 2010 associated with the prepayment of $200.0 million in FHLB advances during the third quarter of 2010; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Overdraft losses, net of recoveries, of $554,000 and $1.4 million for the three and nine months ended September 30, 2010, respectively, compared to $819,000 and $2.3 million for the comparable periods in 2009; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Profit improvement initiatives and management’s efforts to reduce overall expense levels. |
|--------|--------|-------------------------------------------------------------------------------------------------|

----

|   | Ø | The noncontrolling interest in the net losses in FB Holdings of $618,000 and $1.1 million for the three and nine months ended September 30, 2010, respectively, compared to $1.4 million and $5.8 million for the comparable periods in 2009. The decrease is reflective of lower balances of nonaccrual loans and other real estate in FB Holdings during the first nine months of 2010 as compared to the same period in 2009, in addition to increased gains recognized on the sale of other real estate properties; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The noncontrolling interest in the net losses in SBLS LLC of zero and $448,000 for the three and nine months ended September 30, 2009, respectively. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A gain of $8.4 million during the first quarter of 2010 associated with the sale of our Chicago Region on February 19, 2010 after the write-off of goodwill and intangible assets allocated to the Chicago Region of approximately $26.3 million; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A gain of $5.0 million during the second quarter of 2010 associated with the sale of our Texas Region on April 30, 2010 after the write-off of goodwill and intangible assets allocated to the Texas Region of approximately $20.0 million; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A gain of $6.4 million during the third quarter of 2010 associated with the sale of our Northern Illinois Region during September 2010 after the write-off of goodwill and intangible assets allocated to the Northern Illinois Region of approximately $9.7 million; partially offset by |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A loss of $156,000 during the second quarter of 2010 associated with the sale of MVP on April 15, 2010. |
|--------|--------|---------------------------------------------------------------------------------------------------------|

----

|   | Ø | Maintaining an Asset Liability Committee, or ALCO, responsible to our Board of Directors and Executive Management, to review the overall interest rate risk management activity and approve actions taken to reduce risk; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Employing a financial simulation model to determine our exposure to changes in interest rates; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | Ø | Coordinating the lending, investing and deposit-generating functions to control the assumption of interest rate risk; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Utilizing various financial instruments, including derivatives, to offset inherent interest rate risk should it become excessive. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                 |   | ThreeMonthsor Less                     |      |   | Over Three through Six Months |   |     | Over Six through Twelve Months |   |   | OverOnethroughFive Years |   |   | OverFiveYears |      |   | Total  |   |
|--------------------------------------------------------------------------------------|--------|----------------------------------------|-----------|--------|-------------------------------|--------|----------|--------------------------------|--------|--------|--------------------------|--------|--------|---------------|-----------|--------|--------|--------|
|                                                                                 |   |  (dollars expressed in thousands) |      |
| Interest-earning assets:                                                             |   |                                   |      |   |                          |   |     |                           |   |   |                     |   |   |          |      |   |   |   |
| Loans (1)                                                                            |   | $                                      | 3,203,776 |   |                          |   | 317,345  |                           |   |   | 503,360                  |   |   |          | 983,794   |   |   |   | 59,111 |   |   |   | 5,067,386 |   |
| Investment securities                                                                |   |                                   | 106,924   |   |                          |   | 80,833   |                           |   |   | 161,910                  |   |   |          | 790,351   |   |   |   | 185,888 |   |   |   | 1,325,906 |   |
| FHLB and FRB stock                                                                   |   |                                   | 40,211    |   |                          |   | —  |                           |   |   | —                  |   |   |          | —   |   |   |   | — |   |   |   | 40,211 |   |
| Short-term investments                                                               |   |                                   | 1,012,500 |   |                          |   | —  |                           |   |   | —                  |   |   |          | —   |   |   |   | — |   |   |   | 1,012,500 |   |
| Total interest-earning assets                                                        |   | $                                      | 4,363,411 |   |                          |   | 398,178  |                           |   |   | 665,270                  |   |   |          | 1,774,145 |   |   |   | 244,999 |   |   |   | 7,446,003 |   |
| Interest-bearing liabilities:                                                        |   |                                   |      |   |                          |   |     |                           |   |   |                     |   |   |          |      |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits                                                     |   | $                                      | 344,638   |   |                          |   | 214,234  |                           |   |   | 139,718                  |   |   |          | 102,460   |   |   |   | 130,403 |   |   |   | 931,453 |   |
| Money market deposits                                                                |   |                                   | 1,946,553 |   |                          |   | —  |                           |   |   | —                  |   |   |          | —   |   |   |   | — |   |   |   | 1,946,553 |   |
| Savings deposits                                                                     |   |                                   | 42,045    |   |                          |   | 34,625   |                           |   |   | 29,679                   |   |   |          | 42,045    |   |   |   | 98,928 |   |   |   | 247,322 |   |
| Time deposits                                                                        |   |                                   | 662,874   |   |                          |   | 652,593  |                           |   |   | 618,224                  |   |   |          | 425,771   |   |   |   | 95 |   |   |   | 2,359,557 |   |
| Other borrowings                                                                     |   |                                   | 147,615   |   |                          |   | —  |                           |   |   | —                  |   |   |          | 220,000   |   |   |   | — |   |   |   | 367,615 |   |
| Subordinated debentures                                                              |   |                                   | 282,481   |   |                          |   | —  |                           |   |   | —                  |   |   |          | —   |   |   |   | 71,481 |   |   |   | 353,962 |   |
| Total interest-bearing liabilities                                                   |   |                                   | 3,426,206 |   |                          |   | 901,452  |                           |   |   | 787,621                  |   |   |          | 790,276   |   |   |   | 300,907 |   |   |   | 6,206,462 |   |
| Effect of interest rate swap agreements                                              |   |                                   | (125,000  | )      |                          |   | —  |                           |   |   | 25,000                   |   |   |          | 100,000   |   |   |   | — |   |   |   | — |   |
| Total interest-bearing liabilities after the effect of interest rate swap agreements |   | $                                      | 3,301,206 |   |                          |   | 901,452  |                           |   |   | 812,621                  |   |   |          | 890,276   |   |   |   | 300,907 |   |   |   | 6,206,462 |   |
| Interest-sensitivity gap:                                                            |   |                                   |      |   |                          |   |     |                           |   |   |                     |   |   |          |      |   |   |   |   |   |   |   |   |   |
| Periodic                                                                             |   | $                                      | 1,062,205 |   |                          |   | (503,274 | )                              |   |   | (147,351                 | )      |   |          | 883,869   |   |   |   | (55,908 | ) |   |   | 1,239,541 |   |
| Cumulative                                                                           |   |                                   | 1,062,205 |   |                          |   | 558,931  |                           |   |   | 411,580                  |   |   |          | 1,295,449 |   |   |   | 1,239,541 |   |   |   |   |   |
| Ratio of interest-sensitive assets to interest-sensitive liabilities:                |   |                                   |      |   |                          |   |     |                           |   |   |                     |   |   |          |      |   |   |   |   |   |   |   |   |   |
| Periodic                                                                             |   |                                   | 1.32      |   |                          |   | 0.44     |                           |   |   | 0.82                     |   |   |          | 1.99      |   |   |   | 0.81 |   |   |   | 1.20 |   |
| Cumulative                                                                           |   |                                   | 1.32      |   |                          |   | 1.13     |                           |   |   | 1.08                     |   |   |          | 1.22      |   |   |   | 1.20 |   |   |   |   |   |

| (1) | Loans are presented net of unearned discount. |
|-----|-----------------------------------------------|

|   | Ø | Loans will repay at projected repayment rates; |
|--------|--------|------------------------------------------------|

|   | Ø | Mortgage-backed securities, included in investment securities, will repay at projected repayment rates; |
|--------|--------|---------------------------------------------------------------------------------------------------------|

|   | Ø | Interest-bearing demand accounts and savings deposits will behave in a projected manner with regard to their interest rate sensitivity; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Fixed maturity deposits will not be withdrawn prior to maturity. |
|--------|--------|------------------------------------------------------------------|

----

|                                                   |   | September 30, 2010               |    |   | December 31, 2009 |   |
|--------------------------------------------------------|--------|----------------------------------|---------|--------|-------------------|--------|
|                                                   |   | Notional Amount                  |    |   | Credit Exposure   |   |   | Notional Amount |   |   | Credit Exposure |   |
|                                                   |   | (dollars expressed in thousands) |    |
|                                                   |   |                             |    |   |              |   |   |   |   |   |   |   |
| Cash flow hedges – subordinated debentures (1)   |   | $                                | 125,000 |   |              |   | — |   |   |   | 125,000 |   |   |   | — |   |
| Customer interest rate swap agreements                 |   |                             | 55,721  |   |              |   | 1,061 |   |   |   | 80,194 |   |   |   | 683 |   |
| Interest rate lock commitments                         |   |                             | 119,000 |   |              |   | 2,940 |   |   |   | 36,000 |   |   |   | 369 |   |
| Forward commitments to sell mortgage-backed securities |   |                             | 135,000 |   |              |   | — |   |   |   | 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. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                               |   | September 30,2010                |      |   | December 31,2009 |   |
|----------------------------------------------------|--------|----------------------------------|-----------|--------|------------------|--------|
|                                               |   | (dollars expressed in thousands) |      |
|                                               |   |                             |      |   |             |   |
| Commercial, financial and agricultural             |   | $                                | 1,172,531 |   |             |   | 1,692,922 |   |
| Real estate construction and development           |   |                             | 697,458   |   |             |   | 1,052,922 |   |
| Real estate mortgage:                              |   |                             |      |   |             |   |   |   |
| One-to-four family residential                     |   |                             | 1,096,935 |   |             |   | 1,279,166 |   |
| Multi-family residential                           |   |                             | 174,187   |   |             |   | 223,044 |   |
| Commercial real estate                             |   |                             | 1,840,277 |   |             |   | 2,269,372 |   |
| Consumer and installment, net of unearned discount |   |                             | 34,971    |   |             |   | 48,183 |   |
| Loans held for sale                                |   |                             | 51,027    |   |             |   | 42,684 |   |
| Loans, net of unearned discount                    |   | $                                | 5,067,386 |   |             |   | 6,608,293 |   |

|                                 |   | September 30, 2010               |      |   | December 31,2009 |   |
|--------------------------------------|--------|----------------------------------|-----------|--------|------------------|--------|
|                                 |   | (dollars expressed in thousands) |      |
|                                 |   |                             |      |   |             |   |
| Mortgage Division, excluding Florida |   | $                                | 345,123   |   |             |   | 375,764 |   |
| Florida                              |   |                             | 256,266   |   |             |   | 320,235 |   |
| Northern California                  |   |                             | 713,467   |   |             |   | 844,526 |   |
| Southern California                  |   |                             | 1,380,203 |   |             |   | 1,775,562 |   |
| Chicago                              |   |                             | 281,685   |   |             |   | 368,434 |   |
| Missouri                             |   |                             | 1,029,795 |   |             |   | 1,365,168 |   |
| Texas                                |   |                             | 348,671   |   |             |   | 517,066 |   |
| First Bank Business Capital, Inc     |   |                             | 63,072    |   |             |   | 75,254 |   |
| Northern and Southern Illinois (1)   |   |                             | 449,179   |   |             |   | 729,344 |   |
| Other                                |   |                             | 199,925   |   |             |   | 236,940 |   |
| Total                                |   | $                                | 5,067,386 |   |             |   | 6,608,293 |   |

|   | (1) | The decrease during the first nine months of 2010 reflects the sale of $137.4 million of our Northern Illinois Region loans in September 2010, as further described below and in Note 2 to our consolidated financial statements. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease of $520.4 million in our commercial, financial and agricultural portfolio, reflecting gross loan charge-offs of $40.2 million, the sale of $18.1 million of commercial, financial and agricultural loans in our Northern Illinois Region, and portfolio runoff associated with a decline in internal production and reduced loan demand within our markets; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease of $355.5 million in our real estate construction and development portfolio primarily attributable to gross loan charge-offs of $112.1 million, transfers to other real estate of $98.2 million and other loan activity. The following table summarizes the composition of our real estate construction and development portfolio by region as of September 30, 2010 and December 31, 2009: |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | September 30,2010                |    |   | December 31,2009 |   |
|--------------------------------|--------|----------------------------------|---------|--------|------------------|--------|
|                           |   | (dollars expressed in thousands) |    |
|                           |   |                             |    |   |             |   |
| Northern California            |   | $                                | 87,846  |   |             |   | 100,543 |   |
| Southern California            |   |                             | 257,536 |   |             |   | 435,051 |   |
| Chicago                        |   |                             | 79,528  |   |             |   | 115,141 |   |
| Missouri                       |   |                             | 84,067  |   |             |   | 152,736 |   |
| Texas                          |   |                             | 148,630 |   |             |   | 185,084 |   |
| Florida                        |   |                             | 4,465   |   |             |   | 12,792 |   |
| Northern and Southern Illinois |   |                             | 34,087  |   |             |   | 50,713 |   |
| Other                          |   |                             | 1,299   |   |             |   | 862 |   |
| Total                          |   | $                                | 697,458 |   |             |   | 1,052,922 |   |

----

|   | Ø | A decrease of $182.2 million in our one-to-four family residential real estate loan portfolio primarily attributable to gross loan charge-offs of $52.1 million, transfers to other real estate of $17.8 million, the sale of $18.1 million of such loans in our Northern Illinois Region and principal payments. The following table summarizes the composition of our one-to-four family residential real estate loan portfolio as of September 30, 2010 and December 31, 2009: |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                           |   | September 30,2010                |      |   | December 31,2009 |   |
|------------------------------------------------|--------|----------------------------------|-----------|--------|------------------|--------|
|                                           |   | (dollars expressed in thousands) |      |
|                                           |   |                             |      |   |             |   |
| One-to-four family residential real estate:    |   |                             |      |   |             |   |
| Non-Mortgage Division portfolio                |   | $                                | 252,872   |   |             |   | 332,653 |   |
| Mortgage Division portfolio, excluding Florida |   |                             | 295,604   |   |             |   | 340,201 |   |
| Florida portfolio                              |   |                             | 136,255   |   |             |   | 179,985 |   |
| Home equity portfolio                          |   |                             | 412,204   |   |             |   | 426,327 |   |
| Total                                          |   | $                                | 1,096,935 |   |             |   | 1,279,166 |   |

|   | Ø | A decrease of $48.9 million in our multi-family residential real estate portfolio primarily attributable to gross loan charge-offs of $7.2 million, the sale of $8.3 million of such loans in our Northern Illinois Region, and portfolio runoff associated with a decline in internal production and reduced loan demand within our markets; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease of $429.1 million in our commercial real estate portfolio primarily attributable to gross loan charge-offs of $33.7 million, transfers to other real estate of $16.7 million, the sale of $83.5 million of such loans in our Northern Illinois Region and our efforts to reduce our exposure to commercial real estate in the current economic environment; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease of $13.2 million in our consumer and installment portfolio, net of unearned discount, reflecting a decrease in unearned discount of $2.0 million, the sale of $1.5 million of such loans in our Northern Illinois Region, and portfolio runoff associated with a decline in internal production and reduced loan demand within our markets; partially offset by |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Ø | An increase of $8.3 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. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                    |   | September 30, 2010               |      |   | December 31, 2009 |   |
|-------------------------------------------------------------------------|--------|----------------------------------|-----------|--------|-------------------|--------|
|                                                                    |   | (dollars expressed in thousands) |      |
| Nonperforming Assets: (1)                                               |   |                             |      |   |              |   |
| Nonaccrual loans:                                                       |   |                             |      |   |              |   |
| Commercial, financial and agricultural                                  |   | $                                | 69,381    |   |              |   | 41,408 |   |
| Real estate construction and development                                |   |                             | 209,605   |   |              |   | 407,077 |   |
| One-to-four family residential mortgage                                 |   |                             | 63,333    |   |              |   | 112,236 |   |
| Multi-family residential mortgage                                       |   |                             | 15,324    |   |              |   | 14,734 |   |
| Commercial real estate mortgage                                         |   |                             | 113,802   |   |              |   | 115,312 |   |
| Consumer and installment                                                |   |                             | 361       |   |              |   | 337 |   |
| Total nonaccrual loans                                                  |   |                             | 471,806   |   |              |   | 691,104 |   |
| Other real estate                                                       |   |                             | 170,659   |   |              |   | 125,226 |   |
| Other repossessed assets                                                |   |                             | 352       |   |              |   | 1,685 |   |
| Total nonperforming assets                                              |   | $                                | 642,817   |   |              |   | 818,015 |   |
|                                                                    |   |                             |      |   |              |   |   |   |
| Loans, net of unearned discount                                         |   | $                                | 5,067,386 |   |              |   | 6,608,293 |   |
|                                                                    |   |                             |      |   |              |   |   |   |
| Performing troubled debt restructurings                                 |   | $                                | 99,221    |   |              |   | 54,336 |   |
|                                                                    |   |                             |      |   |              |   |   |   |
| Loans past due 90 days or more and still accruing                       |   | $                                | 5,546     |   |              |   | 3,807 |   |
|                                                                    |   |                             |      |   |              |   |   |   |
| Ratio of:                                                               |   |                             |      |   |              |   |   |   |
| Allowance for loan losses to loans                                      |   |                             | 4.46      | %      |              |   | 4.03 | % |
| Nonaccrual loans to loans                                               |   |                             | 9.31      |   |              |   | 10.46 |   |
| Allowance for loan losses to nonaccrual loans                           |   |                             | 47.91     |   |              |   | 38.55 |   |
| Nonperforming assets to loans, other real estate and repossessed assets |   |                             | 12.27     |   |              |   | 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 $197.5 million in our real estate construction and development loan portfolio driven by gross loan charge-offs of $112.1 million, transfers to other real estate of $98.2 million and the receipt of cash and other consideration of $89.1 million on our former largest nonaccrual loan relationship during the second quarter of 2010, partially offset by additions to nonaccrual loans during the nine months ended September 30, 2010. 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 $48.9 million in our one-to-four family residential real estate loan portfolio primarily driven by gross loan charge-offs of $52.1 million, the sale of $18.8 million of nonaccrual loans during the third quarter of 2010 and transfers to other real estate of $17.8 million, partially offset by additions to nonaccrual loans during the nine months ended September 30, 2010 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 $33.9 million, from $63.7 million at December 31, 2009 to $29.7 million at September 30, 2010. Our one-to-four family residential nonaccrual loans in our Florida region decreased $17.1 million, from $30.8 million at December 31, 2009 to $13.6 million at September 30, 2010. These decreases were partially offset by an increase of $2.1 million in our Non-Mortgage division and home equity portfolios; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Ø | A decrease in nonaccrual loans of $1.5 million in our commercial real estate portfolio primarily driven by gross loan charge-offs of $33.7 million and transfers to other real estate of $16.7 million, partially offset by new additions resulting from continued weak economic conditions and significant declines in real estate values. At September 30, 2010, approximately 6.2% of this portfolio is on nonaccrual status. Our commercial real estate portfolio of $1.84 billion is approximately 50.6% owner occupied and 49.4% non-owner occupied at September 30, 2010, and approximately 4.9% and 7.8% of our owner occupied and non-owner occupied commercial real estate portfolio, respectively, is on nonaccrual status at September 30, 2010. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | An increase in nonaccrual loans of $28.0 million in our commercial, financial and agricultural portfolio primarily driven by new additions during the nine months ended September 30, 2010, partially offset by gross loan charge-offs of $40.2 million. At September 30, 2010, approximately 5.9% of this portfolio is on nonaccrual status; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | An increase in nonaccrual loans of $590,000 in our multi-family residential loan portfolio primarily driven by new additions during the nine months ended September 30, 2010, partially offset by gross loan charge-offs of $7.2 million and transfers to other real estate of $1.1 million. At September 30, 2010, approximately 8.8% of this portfolio is on nonaccrual status. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | September 30,2010                |    |   | December 31,2009 |   |
|--------------------------------------|--------|----------------------------------|---------|--------|------------------|--------|
|                                 |   | (dollars expressed in thousands) |    |
|                                 |   |                             |    |   |             |   |
| Mortgage Division, excluding Florida |   | $                                | 34,284  |   |             |   | 71,082 |   |
| Florida                              |   |                             | 34,805  |   |             |   | 60,762 |   |
| Northern California                  |   |                             | 106,114 |   |             |   | 63,528 |   |
| Southern California                  |   |                             | 149,752 |   |             |   | 265,794 |   |
| Chicago                              |   |                             | 88,665  |   |             |   | 119,436 |   |
| Missouri                             |   |                             | 111,610 |   |             |   | 112,837 |   |
| Texas                                |   |                             | 75,467  |   |             |   | 78,389 |   |
| Northern and Southern Illinois       |   |                             | 20,700  |   |             |   | 21,807 |   |
| Other                                |   |                             | 21,420  |   |             |   | 24,380 |   |
| Total nonperforming assets           |   | $                                | 642,817 |   |             |   | 818,015 |   |

----

|                                          |   | September 30, 2010               |   |   | December 31, 2009 |   |
|-----------------------------------------------|--------|----------------------------------|--------|--------|-------------------|--------|
|                                          |   | (dollars expressed in thousands) |   |
|                                          |   |                             |   |   |              |   |
| Commercial, financial and agricultural        |   | $                                | 1,737  |   |              |   | 18,864 |   |
| Real estate mortgage:                         |   |                             |   |   |              |   |   |   |
| One-to-four family residential                |   |                             | 78,978 |   |              |   | 35,472 |   |
| Commercial real estate                        |   |                             | 18,506 |   |              |   | — |   |
| Total performing troubled debt restructurings |   | $                                | 99,221 |   |              |   | 54,336 |   |

|                                     |   | September 30,2010                |    |   | December 31,2009 |   |
|------------------------------------------|--------|----------------------------------|---------|--------|------------------|--------|
|                                     |   | (dollars expressed in thousands) |    |
|                                     |   |                             |    |   |             |   |
| Commercial, financial and agricultural   |   | $                                | 99,708  |   |             |   | 98,841 |   |
| Real estate construction and development |   |                             | 158,852 |   |             |   | 134,939 |   |
| Real estate mortgage:                    |   |                             |    |   |             |   |   |   |
| One-to-four family residential           |   |                             | 11,476  |   |             |   | 2,699 |   |
| Multi-family residential                 |   |                             | 2,888   |   |             |   | 11,085 |   |
| Commercial real estate                   |   |                             | 109,460 |   |             |   | 76,160 |   |
| Total potential problem loans            |   | $                                | 382,384 |   |             |   | 323,724 |   |

----

|                              |   | September 30, 2010               |    |   | December 31, 2009 |   |
|-----------------------------------|--------|----------------------------------|---------|--------|-------------------|--------|
|                              |   | (dollars expressed in thousands) |    |
|                              |   |                             |    |   |              |   |
| Florida                           |   | $                                | 2,815   |   |              |   | 2,414 |   |
| Northern California               |   |                             | 96,560  |   |              |   | 62,002 |   |
| Southern California               |   |                             | 111,616 |   |              |   | 68,256 |   |
| Chicago                           |   |                             | 17,618  |   |              |   | 21,197 |   |
| Missouri                          |   |                             | 71,029  |   |              |   | 114,665 |   |
| Texas                             |   |                             | 27,135  |   |              |   | 24,947 |   |
| First Bank Business Capital, Inc. |   |                             | 18,945  |   |              |   | — |   |
| Northern and Southern Illinois    |   |                             | 34,079  |   |              |   | 20,094 |   |
| Other                             |   |                             | 2,587   |   |              |   | 10,149 |   |
| Total potential problem loans     |   | $                                | 382,384 |   |              |   | 323,724 |   |

----

|   | 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; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 potential problem loans. Our potential problem loans significantly increased during the first nine months of 2010 which generally resulted in a higher allowance for loan losses being applied to these loans; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Significant payoffs of higher credit quality loans during the first nine months of 2010 which carried lower allowance for loan loss allocations; partially offset by |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The decrease in our nonaccrual loans during the first nine months of 2010. |
|--------|--------|----------------------------------------------------------------------------|

----

|                                              |   | Three Months EndedSeptember 30,  |    |   | Nine Months EndedSeptember 30, |   |
|---------------------------------------------------|--------|----------------------------------|---------|--------|--------------------------------|--------|
|                                              |   | 2010                             |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                              |   | (dollars expressed in thousands) |    |
|                                              |   |                             |    |   |                           |   |   |   |   |   |   |   |
| Balance, beginning of period                      |   | $                                | 241,969 |   |                           |   | 287,317 |   |   |   | 266,448 |   |   |   | 220,214 |   |
| Allowance for loan losses allocated to loans sold |   |                             | — |   |                           |   | — |   |   |   | (321 | ) |   |   | — |   |
|                                              |   |                             | 241,969 |   |                           |   | 287,317 |   |   |   | 266,127 |   |   |   | 220,214 |   |
| Loans charged-off:                                |   |                             |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, financial and agricultural            |   |                             | (19,763 | )      |                           |   | (30,916 | ) |   |   | (40,153 | ) |   |   | (82,272 | ) |
| Real estate construction and development          |   |                             | (9,680  | )      |                           |   | (40,978 | ) |   |   | (112,111 | ) |   |   | (89,117 | ) |
| Real estate mortgage:                             |   |                             |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four family residential loans              |   |                             | (16,612 | )      |                           |   | (18,142 | ) |   |   | (52,137 | ) |   |   | (69,960 | ) |
| Multi-family residential loans                    |   |                             | (2,791  | )      |                           |   | (43 | ) |   |   | (7,249 | ) |   |   | (347 | ) |
| Commercial real estate loans                      |   |                             | (9,190  | )      |                           |   | (16,862 | ) |   |   | (33,660 | ) |   |   | (23,713 | ) |
| Consumer and installment                          |   |                             | (257    | )      |                           |   | (437 | ) |   |   | (772 | ) |   |   | (1,003 | ) |
| Total loans charged-off                           |   |                             | (58,293 | )      |                           |   | (107,378 | ) |   |   | (246,082 | ) |   |   | (266,412 | ) |
| Recoveries of loans previously charged-off:       |   |                             |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Commercial financial and agricultural             |   |                             | 1,003   |   |                           |   | 2,103 |   |   |   | 33,967 |   |   |   | 4,545 |   |
| Real estate construction and development          |   |                             | 2,611   |   |                           |   | 616 |   |   |   | 4,641 |   |   |   | 1,282 |   |
| Real estate mortgage:                             |   |                             |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four family residential loans              |   |                             | 1,192   |   |                           |   | 903 |   |   |   | 3,813 |   |   |   | 2,745 |   |
| Multi-family residential loans                    |   |                             | — |   |                           |   | — |   |   |   | — |   |   |   | — |   |
| Commercial real estate loans                      |   |                             | 386     |   |                           |   | 111 |   |   |   | 1,207 |   |   |   | 1,172 |   |
| Consumer and installment                          |   |                             | 183     |   |                           |   | 66 |   |   |   | 378 |   |   |   | 192 |   |
| Recoveries of loans previously charged-off        |   |                             | 5,375   |   |                           |   | 3,799 |   |   |   | 44,006 |   |   |   | 9,936 |   |
| Net loans charged-off                             |   |                             | (52,918 | )      |                           |   | (103,579 | ) |   |   | (202,076 | ) |   |   | (256,476 | ) |
| Provision for loan losses                         |   |                             | 37,000  |   |                           |   | 107,000 |   |   |   | 162,000 |   |   |   | 327,000 |   |
| Balance, end of period                            |   | $                                | 226,051 |   |                           |   | 290,738 |   |   |   | 226,051 |   |   |   | 290,738 |   |

|   | Ø | Net loan charge-offs of $18.8 million and $6.2 million recorded for the three and nine months ended September 30, 2010, respectively, associated with our commercial, financial and agricultural portfolio, compared to net loan charge-offs of $28.8 million and $77.7 million for the comparable periods in 2009. Specifically in this portfolio, during the third quarter of 2010, we recorded a $5.2 million charge-off on a loan relationship with a related operating loss of $13.6 million as further discussed under “3⁄4Noninterest Expense,” and during the first quarter of 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, including $10.0 million in the first quarter of 2009 and $20.0 million in the third quarter of 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Net loan charge-offs of $7.1 million and $107.5 million recorded for the three and nine months ended September 30, 2010, respectively, associated with our real estate construction and development portfolio, compared to $40.4 million and $87.8 million for the comparable periods in 2009. Net loan charge-offs for the nine months ended September 30, 2010 included charge-offs of $24.5 million and $11.5 million on two credit relationships 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 | Net loan charge-offs of $15.4 million and $48.3 million recorded for the three and nine months ended September 30, 2010, respectively, associated with our one-to-four family residential loan portfolio, compared to $17.2 million and $67.2 million for the comparable periods in 2009. These net loan charge-offs primarily consist of $5.1 million and $12.8 million for the three and nine months ended September 30, 2010, respectively, associated with our one-to-four family residential mortgage portfolio generated by our Mortgage Division, excluding Florida, compared to $8.7 million and $31.9 million for the comparable periods in 2009, and $7.3 million and $24.7 million for the three and nine months ended September 30, 2010, respectively, associated with our Florida one-to-four family residential portfolio, compared to $5.7 million and $26.5 million for the comparable periods in 2009; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Ø | Net loan charge-offs of $2.8 million and $7.2 million recorded for the three and nine months ended September 30, 2010, respectively, associated with our multi-family residential real estate portfolio, compared to $43,000 and $347,000 for the comparable periods in 2009; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Net loan charge-offs of $8.8 million and $32.5 million recorded for the three and nine months ended September 30, 2010, respectively, associated with our commercial real estate portfolio, compared to $16.8 million and $22.5 million for the comparable periods in 2009, reflecting declining market conditions in commercial real estate, in particular our non-owner occupied commercial real estate portfolio. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | Three Months Ended September 30, |   |   | Nine Months EndedSeptember 30, |   |
|--------------------------------------|--------|----------------------------------|--------|--------|--------------------------------|--------|
|                                 |   | 2010                             |   |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                 |   | (dollars expressed in thousands) |   |
|                                 |   |                             |   |   |                           |   |   |   |   |   |   |   |
| Mortgage Division, excluding Florida |   | $                                | 5,118  |   |                           |   | 8,707 |   |   |   | 12,750 |   |   |   | 31,895 |   |
| Florida                              |   |                             | 9,996  |   |                           |   | 9,453 |   |   |   | 32,562 |   |   |   | 44,433 |   |
| Northern California                  |   |                             | 3,106  |   |                           |   | 15,346 |   |   |   | 10,391 |   |   |   | 37,117 |   |
| Southern California                  |   |                             | 2,263  |   |                           |   | 36,892 |   |   |   | 35,774 |   |   |   | 60,784 |   |
| Chicago                              |   |                             | 5,741  |   |                           |   | 23,921 |   |   |   | 30,507 |   |   |   | 42,095 |   |
| Missouri                             |   |                             | 8,900  |   |                           |   | 839 |   |   |   | 41,728 |   |   |   | 3,279 |   |
| Texas                                |   |                             | 8,839  |   |                           |   | 2,553 |   |   |   | 17,854 |   |   |   | 6,475 |   |
| First Bank Business Capital, Inc.    |   |                             | (69    | )      |                           |   | 2,915 |   |   |   | 431 |   |   |   | 21,610 |   |
| Northern and Southern Illinois       |   |                             | 765    |   |                           |   | 628 |   |   |   | 3,743 |   |   |   | 3,012 |   |
| Other                                |   |                             | 8,259  |   |                           |   | 2,325 |   |   |   | 16,336 |   |   |   | 5,776 |   |
| Total net loan charge-offs           |   | $                                | 52,918 |   |                           |   | 103,579 |   |   |   | 202,076 |   |   |   | 256,476 |   |

----

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

----

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

|   | Ø | The sale of our Texas Region on April 30, 2010, resulting in a cash outflow of approximately $352.9 million; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of 11 branch offices in our Northern Illinois Region in September 2010, resulting in a cash outflow of approximately $203.5 million; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The sale of our Lawrenceville Branch on January 22, 2010, resulting in a cash outflow of $8.3 million; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | Ø | A net increase in our investment securities portfolio of $784.3 million during the first nine months of 2010; |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease in deposit balances of $86.1 million, excluding the impact of the divestitures of the Chicago, Texas and Northern Illinois Regions, and the Lawrenceville Branch; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The prepayment of $400.0 million of FHLB advances during the first nine months of 2010, as further discussed below. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | Ø | A decrease in loans of $1.04 billion, exclusive of net loan charge-offs, transfers to other real estate and the impact of the divestitures of the Chicago, Texas and Northern Illinois Regions, and the Lawrenceville Branch; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The termination of our remaining bank-owned life insurance policies during the first nine months of 2010, resulting in the receipt of cash proceeds from the surrender of the policies of approximately $25.9 million; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Sales of other real estate properties resulting in the receipt of cash proceeds from these sales of approximately $63.5 million; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The redemption of $6.6 million of FRB stock associated with the reduction in our total assets and $18.3 million of FHLB stock associated with the prepayment of $400.0 million of FHLB advances. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  |   | Certificates of Deposit of $100,000 or More |    |   | Other Borrowings |   |    | Total  |   |
|---------------------------------------|--------|---------------------------------------------|---------|--------|------------------|--------|---------|--------|--------|
|                                  |   | (dollars expressed in thousands)            |    |
|                                  |   |                                        |    |   |             |   |    |   |   |   |   |   |
| Three months or less                  |   | $                                           | 245,004 |   |             |   | 47,615  |   |   |   | 292,619 |   |
| Over three months through six months  |   |                                        | 243,436 |   |             |   | — |   |   |   | 243,436 |   |
| Over six months through twelve months |   |                                        | 247,092 |   |             |   | — |   |   |   | 247,092 |   |
| Over twelve months                    |   |                                        | 163,917 |   |             |   | 320,000 |   |   |   | 483,917 |   |
| Total                                 |   | $                                           | 899,449 |   |             |   | 367,615 |   |   |   | 1,267,064 |   |

----

|                                         |   | Less Than 1 Year                 |      |   | 1-3 Years |   |    | 3-5 Years |   |   | Over 5 Years |   |   | Total(1) |    |
|----------------------------------------------|--------|----------------------------------|-----------|--------|-----------|--------|---------|-----------|--------|--------|--------------|--------|--------|----------|---------|
|                                         |   | (dollars expressed in thousands) |      |
|                                         |   |                             |      |   |      |   |    |      |   |   |         |   |   |     |    |
| Operating leases                             |   | $                                | 13,167    |   |      |   | 20,466  |      |   |   | 12,730       |   |   |     | 34,007  |   |   |   | 80,370 |   |
| Certificates of deposit (2)                  |   |                             | 1,931,192 |   |      |   | 412,073 |      |   |   | 16,197       |   |   |     | 95      |   |   |   | 2,359,557 |   |
| Other borrowings (2)                         |   |                             | 47,615    |   |      |   | 220,000 |      |   |   | —      |   |   |     | 100,000 |   |   |   | 367,615 |   |
| Subordinated debentures (3)                  |   |                             | —   |   |      |   | — |      |   |   | —      |   |   |     | 353,962 |   |   |   | 353,962 |   |
| Preferred stock issued under the CPP (3) (4) |   |                             | —   |   |      |   | — |      |   |   | —      |   |   |     | 310,170 |   |   |   | 310,170 |   |
| Other contractual obligations (5)            |   |                             | 20,846    |   |      |   | 377     |      |   |   | 13           |   |   |     | 3       |   |   |   | 21,239 |   |
| Total                                        |   | $                                | 2,012,820 |   |      |   | 652,916 |      |   |   | 28,940       |   |   |     | 798,237 |   |   |   | 3,492,913 |   |

|   | (1) | Amounts exclude ASC Topic 740 unrecognized tax liabilities of $1.4 million and related accrued interest expense of $259,000 for which the timing of payment of such liabilities cannot be reasonably estimated as of September 30, 2010. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Amounts exclude the related accrued interest expense on certificates of deposit and other borrowings of $2.4 million and $914,000, respectively, as of September 30, 2010. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Amounts exclude the accrued interest expense on subordinated debentures and the accrued dividends declared on preferred stock issued under the CPP of $16.3 million and $20.8 million, respectively, as of September 30, 2010. As further described under “—Recent 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. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | 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. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Amounts include $20.1 million related to an obligation for an investment security traded in September 2010 that settled in October 2010, as further described under “—Financial Condition.” |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Ø | First Bank continues to experience net losses and, accordingly, is unable or prohibited by its regulators to pay a dividend to the Company sufficient to satisfy the Company’s operating cash flow needs. The Company’s ability to receive future dividends from First Bank is currently subject to regulatory approval, as further described above and under “—Recent Developments – Regulatory Matters;” |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | We deem it advisable, or are required by the FRB, to use cash maintained by the Company to support the capital position of First Bank; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | First Bank fails to remain “well-capitalized” and, accordingly, First Bank is required to pledge additional collateral against its FHLB borrowings and is unable to do so.  As more fully described in Note 18 to the consolidated financial statements, in November 2010, First Bank prepaid its $100.0 million FHLB advance that was scheduled to mature in August 2012; or |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The Company has difficulty raising cash through the future issuance of debt or equity instruments or by accessing additional sources of credit. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 3

Item 

----

Legal 

Risk 

|   | Ø | A wide range of regulatory initiatives directed at the financial services industry have been proposed in recent months. One of those initiatives, the Dodd-Frank Act, was signed into law by President Obama on July 21, 2010. The Dodd-Frank Act represents a comprehensive overhaul of the financial services industry within the United States, establishes the new Federal Bureau of Consumer Financial Protection, or the BCFP, and will require the BCFP and other federal agencies to implement many new rules. At this time, it is difficult to predict the extent to which the Dodd-Frank Act or the resulting regulations will impact our business. However, compliance with these new laws and regulations will result in additional costs, which may adversely impact our results of operations, financial condition and/or liquidity. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Exhibits

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

----

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) |

----