First Banks, Inc. (FBSPRA) posted earnings of $7.5 million for the quarter ended June 30, 2012 compared to a net loss of $17 million for the same quarter last year.
The banking company attributed the gain to a reduction in non-performing assets as a result of a decrease in unpaid loans and troubled debt restructurings.
“We continue to have a significant amount of success in decreasing the overall level of our nonperforming assets and potential problem loans which is reflected in the dramatic decline in the provision for loan losses year-over-year,” First Banks, Inc. Terrance M. McCarthy, President and Chief Executive Officer said. “During the second half of 2012, we look to continue the positive trend in asset quality improvement and further improve our core earnings performance.”
First Banks is the third Missouri bank to have substantial quarterly gains as a result of a decline in non-performing assets. Commerce Bancshares and Great Southern Bancorp also reported improved earnings because of a decline in unpaid loans.
The company’s stock rose 5.7 percent during opening trading to $20.24 up from Tuesday’s close of $19.15