Operating Performance
-- Net income available to common shareholders of $5.4 million, or $0.08
per share, for first quarter 2010 vs. a net loss of $39.5 million, or
$(0.73) per share, for fourth quarter 2009 and net income available to
common shareholders of $3.2 million, or $0.07 per share, for first
quarter 2009.
-- Pre-tax, pre-provision core operating earnings of $31.6 million, in
line with fourth quarter 2009.
-- Average core transactional deposits up $477.9 million, or 13.9%,
from first quarter 2009.
-- Tax equivalent net interest margin of 4.28% for first quarter 2010, up
24 basis points from fourth quarter 2009 and 61 basis points from
first quarter 2009.
Capital and Credit
-- Common equity offering of $196.7 million completed in January 2010.
-- Tangible common equity to tangible assets of 9.17%, up 288 basis
points, or 45.8%, from fourth quarter 2009.
-- Non-performing assets reduced $44.2 million from December 31, 2009
and $5.7 million from March 31, 2009.
-- Loan loss reserves to non-performing loans of 65% at March 31, 2010,
compared to 58% at December 31, 2009 and 45% at March 31, 2009.
First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (
Excess Over
Minimum Required
"Well- Minimums
March 31, December Capitalized" at March
2010 31, 2009 Level 31, 2010
------- -------- -------- -------------
(Amounts in
millions)
Regulatory capital ratios:
Total capital to risk-weighted
assets 17.21% 13.92% 10.00% 72% $ 460
Tier 1 capital to risk-weighted
assets 15.15% 11.87% 6.00% 153% $ 584
Tier 1 leverage to average
assets 13.06% 10.18% 5.00% 161% $ 597
Regulatory capital ratios,
excluding preferred stock:
Total capital to risk-weighted
assets 14.18% 10.92% 10.00% 42% $ 267
Tier 1 capital to risk-weighted
assets 12.13% 8.87% 6.00% 102% $ 391
Tier 1 leverage to average
assets 10.45% 7.61% 5.00% 109% $ 404
Tier 1 common capital to
risk-weighted assets 10.80% 7.55% N/A N/A N/A
Tangible equity ratios:
Tangible common equity to
tangible assets 9.17% 6.29% N/A N/A N/A
Tangible common equity,
excluding other comprehensive
loss, to tangible assets 9.42% 6.54% N/A N/A N/A
Tangible common equity to
risk-weighted assets 10.50% 7.26% N/A N/A N/A
The Board of Directors reviews the Company's capital plan each quarter,
giving consideration to the current and expected operating environment, as
well as an evaluation of various capital alternatives.
About the Company
First Midwest is the premier relationship-based banking franchise in the
growing Chicagoland banking market. As one of the Chicago metropolitan
area's largest independent bank holding companies, First Midwest provides
the full range of both business and retail banking and trust and investment
management services through approximately 100 offices located in 63
communities, primarily in metropolitan Chicago.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. These statements are not historical facts but instead
represent only the Company's beliefs regarding future events, many of
which, by their nature, are inherently uncertain and outside of the
Company's control. It is possible that actual results and the Company's
financial condition may differ, possibly materially, from the anticipated
results and financial condition indicated in these forward-looking
statements. For a discussion of some of the risks and important factors
that could affect the Company's future results, see "Risk Factors" in the
Company's Annual Report on Form 10-K for the fiscal year ended December 31,
2009 and other reports filed with the Securities and Exchange Commission.
Forward-looking statements represent management's best judgment as of the
date hereof based on currently available information. Except as required by
law, the Company undertakes no duty to update the contents of this press
release after the date hereof.
Conference Call
A conference call to discuss the Company's results, outlook and related
matters will be held on Wednesday, April 21, 2010 at 10:00 A.M. (ET).
Members of the public who would like to listen to the conference call
should dial (800) 322-2803 (U.S. domestic) or (617) 614-4925
(international) and enter passcode number 974 20 234. The number should be
dialed 10 to 15 minutes prior to the start of the conference call. There is
no charge to access the call. The conference call will also be accessible
as an audio webcast through the Investor Relations section of the Company's
website, www.firstmidwest.com/investorrelations. For those unable to listen
to the live broadcast, a replay will be available on the Company's website
or by dialing (888) 286-8010 (U.S. domestic) or (617) 801-6888
(international) passcode number 741 75 560 beginning at 12:00 P.M. (ET) on
April 21, 2010 until 11:59 P.M. (ET) on April 28, 2010. Please direct any
questions regarding obtaining access to the conference call to First
Midwest Bancorp, Inc. Investor Relations, via e-mail, at
investor.relations@firstmidwest.com.
Accompanying Financial Statements and Tables
Accompanying this press release is the following unaudited financial
information:
-- Operating Highlights, Balance Sheet Highlights, and Capital Ratios -- Condensed Consolidated Statements of Financial Condition -- Condensed Consolidated Statements of Income -- Pre-Tax, Pre-Provision Core Operating Earnings -- Loan Portfolio Composition -- Asset Quality -- Charge-off Data -- Securities Available-for-SalePress Release and Additional Information Available on Website This press release, the accompanying financial statements and tables, and certain additional unaudited Selected Financial Information (totaling 4 pages) are available through the "Investor Relations" section of First Midwest's website at www.firstmidwest.com.
First Midwest Bancorp, Inc. Press Release Dated April 21, 2010
Operating Highlights
Unaudited
(Dollar amounts in thousands except per share data)
Quarters Ended
-------------------------------------
March 31, December 31, March 31,
2010 2009 2009
----------- ----------- -----------
Net income (loss) $ 8,081 $ (37,491) $ 5,727
Net income (loss) applicable to
common shares 5,428 (39,542) 3,155
Diluted earnings (loss) per common
share $ 0.08 $ (0.73) $ 0.07
Return on average common equity 2.38% (19.84%) 1.78%
Return on average assets 0.43% (1.92%) 0.28%
Net interest margin 4.28% 4.04% 3.67%
Efficiency ratio 58.41% 58.48% 52.33%
Balance Sheet Highlights
Unaudited
(Dollar amounts in thousands except
per share data)
As Of
-------------------------------------
March 31, December 31, March 31,
2010 2009 2009
----------- ----------- -----------
Total assets $ 7,592,907 $ 7,710,672 $ 8,252,576
Total loans, excluding covered loans 5,195,874 5,203,246 5,387,128
Total deposits 5,864,104 5,885,279 5,508,382
Total stockholders' equity 1,143,768 941,521 903,612
Common stockholders' equity 950,768 748,521 710,612
Book value per share $ 12.84 $ 13.66 $ 14.61
Period end shares outstanding 74,046 54,793 48,628
Capital Ratios
Unaudited
As Of
-------------------------------------
March 31, December 31, March 31,
2010 2009 2009
----------- ----------- -----------
Regulatory capital ratios:
Total capital to risk-weighted
assets 17.21% 13.92% 14.62%
Tier 1 capital to risk-weighted
assets 15.15% 11.87% 11.85%
Tier 1 leverage to average assets 13.06% 10.18% 9.60%
Regulatory capital ratios, excluding
preferred stock:
Total capital to risk-weighted
assets 14.18% 10.92% 11.70%
Tier 1 capital to risk-weighted assets 12.13% 8.87% 8.93%
Tier 1 leverage to average assets 10.45% 7.61% 7.23%
Tier 1 common capital to risk-weighted
assets 10.80% 7.55% 7.04%
Tangible common equity ratios:
Tangible common equity to tangible
assets 9.17% 6.29% 5.36%
Tangible common equity, excluding
other comprehensive loss, to tangible
assets 9.42% 6.54% 5.83%
Tangible common equity to risk-weighted
assets 10.50% 7.26% 6.47%
First Midwest Bancorp, Inc. Press Release Dated April 21, 2010
Condensed Consolidated Statements of Financial Condition
Unaudited
March 31,
------------------------
(Dollar amounts in thousands) 2010 2009
----------- -----------
Assets
Cash and due from banks $ 97,251 $ 103,586
Funds sold and other short-term investments 29,663 3,741
Trading account securities, at fair value 14,114 10,885
Securities available-for-sale, at fair value 1,152,039 1,901,919
Securities held-to-maturity, at amortized cost 90,449 81,566
Federal Home Loan Bank and Federal Reserve Bank
stock, at cost 59,428 54,768
Loans 5,195,874 5,387,128
Reserve for loan losses (144,824) (116,001)
----------- -----------
Net loans 5,051,050 5,271,127
----------- -----------
Other real estate owned 62,565 38,984
Covered assets 207,609 -
Premises, furniture, and equipment 128,180 117,880
Investment in bank owned life insurance 198,201 199,070
Goodwill and other intangible assets 280,477 283,570
Accrued interest receivable and other assets 221,881 185,480
----------- -----------
Total assets $ 7,592,907 $ 8,252,576
=========== ===========
Liabilities and Stockholders' Equity
Deposits
Transactional deposits $ 3,948,025 $ 3,522,289
Time deposits 1,899,375 1,943,076
Brokered deposits 16,704 43,017
----------- -----------
Total deposits 5,864,104 5,508,382
Borrowed funds 387,163 1,535,752
Subordinated debt 137,737 232,375
Accrued interest payable and other liabilities 60,135 72,455
----------- -----------
Total liabilities 6,449,139 7,348,964
----------- -----------
Preferred stock 190,392 189,768
Common stock 858 613
Additional paid-in capital 434,704 211,325
Retained earnings 815,395 851,339
Accumulated other comprehensive loss (18,878) (37,470)
Treasury stock, at cost (278,703) (311,963)
----------- -----------
Total stockholders' equity 1,143,768 903,612
----------- -----------
Total liabilities and stockholders' equity $ 7,592,907 $ 8,252,576
=========== ===========
First Midwest Bancorp, Inc. Press Release Dated April 21, 2010
Condensed Consolidated Statements of Income
Unaudited
(Amounts in thousands, except
per share data) Quarters Ended
--------------------------------
March 31, December 31, March 31,
2010 2009 2009
--------- --------- ---------
Interest Income
Loans $ 64,480 $ 65,668 $ 65,447
Securities 13,952 14,848 25,682
Covered assets 2,962 1,419 -
Other 385 435 351
--------- --------- ---------
Total interest income 81,779 82,370 91,480
--------- --------- ---------
Interest Expense
Deposits 10,545 12,774 18,927
Borrowed funds 1,010 1,276 4,632
Subordinated debt 2,286 2,379 3,702
--------- --------- ---------
Total interest expense 13,841 16,429 27,261
--------- --------- ---------
Net interest income 67,938 65,941 64,219
Provision for loan losses 18,350 93,000 48,410
--------- --------- ---------
Net interest income (loss) after provision
for loan losses 49,588 (27,059) 15,809
--------- --------- ---------
Noninterest Income
Service charges on deposit accounts 8,381 9,977 9,044
Trust and investment management fees 3,593 3,704 3,329
Other service charges, commissions, and fees 4,172 4,280 4,006
Card-based fees 3,893 4,000 3,755
--------- --------- ---------
Subtotal, fee-based revenues 20,039 21,961 20,134
Bank owned life insurance income 248 281 541
Securities gains (losses) net 3,057 (5,772) 8,222
Gain on FDIC-assisted transaction - 13,071 -
Gains on early extinguishment of debt - 1,267 -
Other 977 939 (126)
--------- --------- ---------
Total noninterest income 24,321 31,747 28,771
--------- --------- ---------
Noninterest Expense
Salaries and employee benefits 26,884 27,592 23,311
Net occupancy expense 6,040 5,453 6,506
Losses realized on other real estate owned 7,879 14,051 315
Other real estate owned expense, net 2,908 1,642 689
Loan remediation expense 2,001 2,013 519
Federal Deposit Insurance Corporation
("FDIC") insurance 2,532 2,720 2,361
Equipment expense 2,128 2,208 2,331
Technology and related costs 2,483 2,375 2,240
Other 12,618 12,467 10,122
--------- --------- ---------
Total noninterest expense 65,473 70,521 48,394
--------- --------- ---------
Income (loss) before taxes 8,436 (65,833) (3,814)
Income tax expense (benefit) 355 (28,342) (9,541)
--------- --------- ---------
Net income (loss) 8,081 (37,491) 5,727
Preferred dividends (2,572) (2,569) (2,563)
Net (income) loss applicable to non-vested
restricted shares (81) 518 (9)
--------- --------- ---------
Net Income (Loss) Applicable to Common
Shares $ 5,428 $ (39,542) $ 3,155
========= ========= =========
Diluted Earnings (Loss) Per Common
Share $ 0.08 $ (0.73) $ 0.07
Dividends Declared Per Common Share $ 0.01 $ 0.01 $ 0.01
Weighted Average Diluted Shares
Outstanding 70,469 54,152 48,493
First Midwest Bancorp, Inc. Press Release Dated April 21, 2010
Pre-Tax, Pre-Provision Core Operating Earnings (1)
Unaudited
(Dollar amounts in thousands)
Quarters Ended
-------------------------------------
March 31, December 31, March 31,
2010 2009 2009
----------- ----------- -----------
Income (loss) before taxes $ 8,436 $ (65,833) $ (3,814)
Provision for loan losses 18,350 93,000 48,410
----------- ----------- -----------
Pre-tax, pre-provision earnings 26,786 27,167 44,596
----------- ----------- -----------
Non-Operating Items
Securities gains (losses), net 3,057 (5,772) 8,222
Gain on FDIC-assisted transaction - 13,071 -
Gains on early extinguishment of debt - 1,267 -
Losses realized on other real estate
owned (7,879) (14,051) (315)
Total non-operating items (4,822) (5,485) 7,907
----------- ----------- -----------
Pre-tax, pre-provision core
operating earnings $ 31,608 $ 32,652 $ 36,689
=========== =========== ===========
Risk-weighted assets $ 6,381,679 $ 6,433,094 $ 6,600,684
Pre-tax, pre-provision core
operating earnings to risk-weighted
assets 1.97% 2.03% 2.22%
(1) The Company's accounting and reporting policies conform to U.S.
generally accepted accounting principles ("GAAP") and general practice
within the banking industry. As a supplement to GAAP, the Company has
provided this non-GAAP performance result. The Company believes that
this non-GAAP financial measure is useful because it allows investors
to assess the Company's operating performance. Although this non-GAAP
financial measure is intended to enhance investors' understanding of
the Company's business and performance, this non-GAAP financial
measure should not be considered an alternative to GAAP.
First Midwest Bancorp, Inc. Press Release Dated April 21, 2010
Loan Portfolio Composition
Unaudited
(Dollar amounts in thousands)
% of
3/31/10 Total 12/31/09 3/31/09 12/31/09 3/31/09
---------- ----- ---------- ---------- ------- -------
Commercial and
industrial $1,454,714 28.0% $1,438,063 $1,508,175 1.2% (3.5%)
Agricultural and
farmland 200,527 3.9% 209,945 219,178 (4.5%) (8.5%)
Commercial real
estate:
Office, retail,
and industrial 1,239,583 23.9% 1,212,965 1,086,987 2.2% 14.0%
Residential
construction and
land 276,322 5.3% 313,919 466,195 (12.0%) (40.7%)
Commercial
construction and
land 233,662 4.5% 231,518 340,215 0.9% (31.3%)
Multifamily 348,178 6.7% 333,961 311,865 4.3% 11.6%
Investor-owned
rental property 121,040 2.3% 119,132 132,049 1.6% (8.3%)
Other commercial
real estate 669,462 12.9% 679,851 593,262 (1.5%) 12.8%
---------- ----- ---------- ---------- ------- -------
Total commercial
real estate 2,888,247 55.6% 2,891,346 2,930,573 (0.1%) (1.4%)
---------- ----- ---------- ---------- ------- -------
Consumer:
Home equity 464,655 8.9% 470,523 480,283 (1.2%) (3.3%)
Real estate 1-4
family 139,840 2.7% 139,983 185,486 (0.1%) (24.6%)
Other consumer 47,891 0.9% 53,386 63,433 (10.3%) (24.5%)
---------- ----- ---------- ---------- ------- -------
Total consumer 652,386 12.5% 663,862 729,202 (1.7%) (10.5%)
---------- ----- ---------- ---------- ------- -------
Total loans $5,195,874 100.0% $5,203,246 $5,387,128 (0.1%) (3.6%)
========== ===== ========== ========== ======= =======
Office, Retail,
and Industrial
Office $ 396,749 32.0% $ 394,228 $ 346,806 0.6% 14.4%
Retail 346,218 27.9% 331,803 295,336 4.3% 17.2%
Industrial 496,616 40.1% 486,934 444,845 2.0% 11.6%
---------- ----- ---------- ---------- ------- -------
Total office,
retail, and
industrial $1,239,583 100.0% $1,212,965 $1,086,987 2.2% 14.0%
========== ===== ========== ========== ======= =======
First Midwest Bancorp, Inc. Press Release Dated April 21, 2010
Asset Quality
Unaudited
(Dollar amounts in
thousands) As Of
-----------------------------------------------
% of
Loan % of
3/31/10 Category Total 12/31/09 3/31/09
--------- -------- ----- --------- ---------
Non-accrual loans:
Commercial and industrial $ 38,095 2.62% 17.6% $ 28,193 $ 33,245
Agricultural and farmland 2,532 1.26% 1.2% 2,673 12
Office, retail, and
industrial 18,204 1.47% 8.4% 21,396 12,769
Residential construction
and land 93,412 33.81% 43.2% 112,798 107,766
Commercial construction
and land 20,023 8.57% 9.3% 20,864 8,984
Multi-family 8,349 2.40% 3.9% 12,486 6,989
Investor-owned rental
property 5,947 4.91% 2.8% 4,351 2,536
Other commercial real
estate 15,859 2.37% 7.3% 28,006 4,493
Consumer 13,652 2.09% 6.3% 13,448 6,747
--------- ======== ----- --------- ---------
Total non-accrual loans 216,073 4.16% 100.0% 244,215 183,541
--------- ======== ===== --------- ---------
90 days past due loans
(still accruing
interest):
Commercial and industrial 3,938 0.27% 49.2% 1,964 16,208
Agricultural and farmland - 0.00% 0.0% - 1,751
Office, retail, and industrial 676 0.05% 8.5% 330 12,719
Residential construction and
land - 0.00% 0.0% 86 20,593
Commercial construction
and land - 0.00% 0.0% - 2,942
Multi-family 368 0.11% 4.6% 55 3,356
Investor-owned rental
property 201 0.17% 2.5% 225 524
Other commercial real estate 23 0.00% 0.3% 130 5,434
Consumer 2,789 0.43% 34.9% 1,289 10,402
--------- ======== ----- --------- ---------
Total 90 days past due
loans 7,995 0.15% 100.0% 4,079 73,929
--------- ======== ===== --------- ---------
Total non-performing
loans 224,068 248,294 257,470
Restructured loans, still
accruing 5,168 30,553 1,063
Other real estate owned
("OREO") 62,565 57,137 38,984
--------- --------- ---------
Total non-performing
assets $ 291,801 $ 335,984 $ 297,517
========= ========= =========
30-89 days past due loans $ 28,018 $ 37,912 $ 54,311
Reserve for loan losses $ 144,824 $ 144,808 $ 116,001
Asset Quality Ratios
Non-accrual loans to loans 4.16% 4.69% 3.41%
Non-performing loans to loans 4.31% 4.77% 4.78%
Non-performing assets to
loans plus OREO 5.55% 6.39% 5.48%
Reserve for loan losses to
loans 2.79% 2.78% 2.15%
Reserve for loan losses to
non-accrual loans 67% 59% 63%
Reserve for loan losses to
non-performing loans 65% 58% 45%
First Midwest Bancorp, Inc. Press Release Dated April 21, 2010
Charge-off Data
Unaudited
(Dollar amounts in Quarters Ended
thousands) -----------------------------------------------
% of
Loan % of
3/31/10 Category Total 12/31/09 3/31/09
-------- -------- ----- -------- --------
Net loans charged-off:
Commercial and
industrial $ 4,463 0.31% 24.3% $ 23,320 $ 12,093
Agricultural and farmland 141 0.07% 0.7% 180 -
Office, retail, and
industrial 1,644 0.13% 9.0% 3,265 878
Residential construction
and land 4,452 1.61% 24.3% 38,315 10,719
Commercial construction
and land 270 0.12% 1.5% 2,715 -
Multifamily 512 0.15% 2.8% 2,325 43
Investor-owned rental
property 254 0.21% 1.4% 1,229 120
Other commercial real
estate 4,195 0.63% 22.9% 7,907 (51)
Consumer 2,403 0.37% 13.1% 3,205 2,476
-------- ======== ----- -------- --------
Total net loans
charged-off $ 18,334 0.35% 100.0% $ 82,461 $ 26,278
======== ======== ===== ======== ========
Net loan charge-offs to
average loans,
annualized:
Quarter-to-date 1.43% - - 6.17% 1.98%
Year-to-date 1.43% - - 3.08% 1.98%
First Midwest Bancorp, Inc. Press Release Dated April 21, 2010
Securities Available-For-Sale
Unaudited
(Dollar amounts in thousands)
U.S.
Treasury Collateralized Other
and Mortgage Mortgage State and
Agency Obligations Backed Municipal
-------- ---------- ---------- ----------
As of March 31, 2010
Amortized cost $ 755 $ 269,457 $ 181,953 $ 635,036
Gross unrealized gains
(losses):
Gross unrealized gains 1 8,807 8,533 8,046
Gross unrealized losses - (1,761) (29) (6,666)
-------- ---------- ---------- ----------
Net unrealized gains
(losses) 1 7,046 8,504 1,380
-------- ---------- ---------- ----------
Fair value $ 756 $ 276,503 $ 190,457 $ 636,416
======== ========== ========== ==========
As of December 31, 2009
Amortized cost $ 756 $ 299,920 $ 239,567 $ 649,269
Gross unrealized gains
(losses):
Gross unrealized gains - 10,060 9,897 8,462
Gross unrealized losses - (2,059) (182) (6,051)
-------- ---------- ---------- ----------
Net unrealized gains
(losses) - 8,001 9,715 2,411
-------- ---------- ---------- ----------
Fair value $ 756 $ 307,921 $ 249,282 $ 651,680
======== ========== ========== ==========
As of March 31, 2009
Amortized cost $ 122 $ 598,367 $ 344,503 $ 861,547
Gross unrealized gains
(losses):
Gross unrealized gains - 14,094 11,575 9,136
Gross unrealized losses - (3,120) (24) (16,134)
-------- ---------- ---------- ----------
Net unrealized gains
(losses) - 10,974 11,551 (6,998)
-------- ---------- ---------- ----------
Fair value $ 122 $ 609,341 $ 356,054 $ 854,549
======== ========== ========== ==========
Collateralized
Debt
Obligations Other Total
--------- ---------- -----------
As of March 31, 2010
Amortized cost $ 51,596 $ 34,949 $ 1,173,746
Gross unrealized gains
(losses):
Gross unrealized gains - 1,177 26,564
Gross unrealized losses (39,418) (397) (48,271)
-------- ---------- -----------
Net unrealized gains
(losses) (39,418) 780 (21,707)
-------- ---------- -----------
Fair value $ 12,178 $ 35,729 $ 1,152,039
======== ========== ===========
As of December 31, 2009
Amortized cost $ 54,359 $ 44,238 $ 1,288,109
Gross unrealized gains
(losses):
Gross unrealized gains - 2,376 30,795
Gross unrealized losses (42,631) (1,221) (52,144)
-------- ---------- -----------
Net unrealized gains
(losses) (42,631) 1,155 (21,349)
-------- ---------- -----------
Fair value $ 11,728 $ 45,393 $ 1,266,760
======== ========== ===========
As of March 31, 2009
Amortized cost $ 75,922 $ 56,612 $ 1,937,073
Gross unrealized gains
(losses):
Gross unrealized gains - 104 34,909
Gross unrealized losses (41,395) (9,390) (70,063)
-------- ---------- -----------
Net unrealized gains
(losses) (41,395) (9,286) (35,154)
-------- ---------- -----------
Fair value $ 34,527 $ 47,326 $ 1,901,919
======== ========== ===========
Contact Information: Paul F. Clemens Chief Financial Officer (630) 875-7347 www.firstmidwest.com