SOURCE: First Midwest Bancorp, Inc.

October 22, 2008 06:55 ET

First Midwest Bancorp, Inc. Announces 2008 Third Quarter Results

Solid Operating Performance - Continued Aggressive Credit Remediation - Increased Capital and Loan Loss Reserves

ITASCA, IL--(Marketwire - October 22, 2008) - First Midwest Bancorp, Inc. (NASDAQ: FMBI)

--  Diluted earnings per share of $0.50; return on average assets of
    1.16%; return on average equity of 13.09%.
    
--  Annualized total loan growth of 3% from June 30, 2008, 10% annualized
    in targeted categories.
    
--  Loan loss reserve increased to 1.34% of loans, covering nonperforming
    loans by 126%; provisioning exceeding net charge-offs by 40%.
    
--  Tier 1 capital level increased to 9.42%, up 13 basis points.
    

First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (NASDAQ: FMBI), the holding company of First Midwest Bank, today reported results of operations and financial condition for third quarter 2008. Fully diluted earnings per share were $0.50 compared with $0.56 for second quarter 2008. Excluding offsetting noncore transactions, the comparison was $0.47 for third quarter 2008 versus $0.51 for second quarter 2008. The noncore items consisted of the write-off of approximately $1.7 million in book value of the sole remaining asset-backed collateralized debt obligation, offset by the recognition of tax benefits of approximately $2.5 million. Return on average assets was 1.16% for third quarter 2008 versus 1.33% for second quarter 2008 while the return on average equity was 13.09% versus 14.57% for the same periods.

In announcing these results, President and CEO Michael L. Scudder said, "Performance for the quarter, while solid, reflected the impact of a fading economic environment, significantly weakened housing sector, and erratic financial markets. With such conditions expected to continue and while the impact of the government stimulus unfolds, we remain focused on meeting the needs of our clients, aggressively addressing our asset quality issues, and judiciously managing our strong capital. While these times present a number of challenges, they also represent an opportunity to leverage our financial strength and the focus and commitment of our employees to both serve our communities and enhance the value of our franchise."

Operating Performance

Operating income before taxes totaled $25.0 million for third quarter 2008, as compared to $27.0 million for second quarter 2008, with the decline in earnings primarily due to higher provision for loan losses. Provisions for third quarter 2008 were $13.0 million as contrasted to $5.8 million in second quarter 2008. Securities losses for third quarter and second quarter 2008 were $1.7 million and $4.6 million, respectively. Excluding provision expense and realized securities losses, third quarter 2008 income before taxes was up 6% from second quarter 2008.

Total loans as of September 30, 2008 were $5.2 billion, up 3% annualized as compared to June 30, 2008 as the seasonal reduction in the agricultural portfolio offset targeted growth in commercial and industrial and commercial real estate lending. The Company feels it is well positioned to both pursue and take advantage of prudent, targeted lending opportunities. Total average deposits for third quarter 2008 were $5.8 billion, unchanged from the prior quarter.

Tax equivalent net interest margin was 3.63% for third quarter 2008 as compared to 3.58% for second quarter 2008, reflecting the Company's strong core deposit base and its ability to effectively manage its cost of funds.

Fee-based revenues improved to $24.8 million, up 3% on a linked quarter basis, due to higher service charge revenue. Trust revenue for third quarter 2008 was $3.8 million, down from $3.9 million in second quarter 2008. Despite a deteriorating equity environment, trust sales remained solid in a difficult financial market, boding well for stronger performance as markets recover.

Operating efficiency remains a financial hallmark with the efficiency ratio for third quarter 2008 at 50.3%, improved from 51.7% for second quarter 2008.

Credit Remediation

As expected, credit quality trends for the quarter were negatively impacted by continued housing market stress, particularly in the residential land and development segments of the loan portfolio. This segment, representing approximately 10% of the overall loan portfolio, was underwritten to loan-to-value guidelines for unimproved and developed land of 65% and 75%, respectively, thus providing protection as values decline. The Company is aggressively engaged with its builder/developer clients to determine the best solutions to maximize value for the entire segment. In future quarters, the migration of troubled loans from performing to nonperforming and, in some cases, to other real estate owned and finally to cash repayment will vary dependent upon the adopted solution. The Company has both realigned and increased its credit remediation staffing in response to deteriorating credit trends both in this segment and overall.

Nonperforming loans at September 30, 2008 were $55.6 million, representing 1.06% of total loans. Compared to second quarter 2008, nonperforming loan levels increased $30.1 million. This increase is primarily related to three residential development loans totaling $20 million and a single commercial credit of $5.5 million operating in the transportation industry.

During third quarter 2008, other real estate owned increased to $23.7 million as the Company enforced its rights to collateral underlying troubled loans with residential land and development properties comprising 75% of such real estate. All properties are recorded at estimated net realizable values and are being aggressively marketed.

Loans past due 90 days and still accruing totaled $37.3 million as of September 30, 2008, approximately the level as of June 30, 2008. Residential and development loans represent approximately 50% of this total and primarily consist of a loan made to a single borrower which is adequately collateralized and in the process of collection.

During third quarter 2008, net charge-offs totaled $9.3 million as compared to $4.5 million in second quarter 2008, with residential land and development loans accounting for substantially all of the linked quarter increase.

The Company increased its reserve for loan losses to $69.8 million as of September 30, 2008, up $3.7 million from June 30, 2008, representing 1.34% of total loans and covering nonperforming loans by 126%. Provision for losses for third quarter 2008 totaled $13.0 million and exceeded net charge-offs by 40%.

Additional disclosures about credit quality appear in the financial statement section of this release.

Capital Management

All regulatory mandated ratios for characterization as "well capitalized" were achieved as of September 30, 2008 and December 31, 2007 as presented below:

                 Minimum
                  "Well-
               Capitalized"               Excess Over Required
                  Level      9/30/08        Minimums 9/30/08      12/31/07
                ----------  ----------   ----------------------  ----------
                                                     (Amounts in
                                                      millions)
Tier 1 Risk
 Based Capital        6.00%       9.42%         57%    $    221       9.15%

Total Risk
 Based Capital       10.00%      12.04%         20%    $    132      11.73%

Tier 1 Leverage
 Capital              5.00%       7.59%         52%    $    208       7.46%

The Company is focused on the prudent management of capital to permit continuing investment in our business and the support of future opportunities while navigating the difficult current environment. During November, the Company will undertake a comprehensive review of existent capital plans (dividends, share repurchases, required reserves, and appropriate capital levels) in the context of the current and projected environment. As a part of this review, the Company will assess opportunities presented by the recently announced governmental equity investment and related programs.

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 98 offices located in 62 communities, primarily in metropolitan Chicago. First Midwest was recently recognized by the Alfred P. Sloan awards for Business Excellence in Workforce Flexibility in the greater Chicago Area.

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, 2007 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, October 22nd, at 10:00 a.m. (ET). Members of the public who would like to listen to the conference call should dial 1-800-659-2037 (U.S. domestic) or 1-617-614-2713 (international) and enter passcode number 225-78-148. The number should be dialed at least 10 minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast through the Investor Relations section of the Company's web site, www.firstmidwest.com/aboutinvestor_overview.asp. There is no charge to access the call. For those unable to listen to the live broadcast, a replay will be available on the Company's web site or by dialing 1-888-286-8010 (U.S. domestic) or 1-617-801-6888 (international) passcode number 950-59-150, beginning approximately one hour after the event through 11:59 pm (ET) on October 29, 2008. 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, Stock Performance
    Data, and Capital Ratios (1 page)
--  Condensed Consolidated Statements of Condition (1 page)
--  Condensed Consolidated Statements of Income (1 page)
--  Loan Portfolio Composition (1 page)
--  Asset Quality (1 page)
    

Press Release and Additional Information Available on Website

This press release, the accompanying financial statements and tables, and certain additional unaudited Selected Financial Information (totaling 3 pages) are available through the "Investor Relations" section of First Midwest's website at www.firstmidwest.com.

First Midwest Bancorp, Inc.           Press Release Dated October 22, 2008

Operating Highlights
Unaudited
(Dollar amounts in                     Quarters Ended
 thousands except  -------------------------------------------------------
 per share data)     Sept. 30, 2008     June 30, 2008      Sept. 30, 2007
                   -----------------  -----------------  -----------------
Net income         $          24,191  $          26,997  $          27,237
Diluted earnings
 per share         $            0.50  $            0.56  $            0.55
Return on average
 equity                        13.09%             14.57%             14.57%
Return on average
 assets                         1.16%              1.33%              1.35%
Net interest
 margin                         3.63%              3.58%              3.63%
Efficiency ratio               50.30%             51.67%             51.87%

Balance Sheet Highlights
Unaudited
(Dollar amounts in                         As Of
 thousands except  -------------------------------------------------------
 per share data)     Sept. 30, 2008     June 30, 2008      Sept. 30, 2007
                   -----------------  -----------------  -----------------
Total assets       $       8,246,655  $       8,311,025  $       7,884,345
Total loans                5,223,582          5,182,355          4,931,472
Total deposits             5,658,284          5,785,163          5,834,175
Stockholders' equity         718,909            724,034            727,928
Book value per
 share             $           14.81  $           14.90  $           14.94
Period end shares
 outstanding                  48,590             48,584             48,735

Stock Performance Data
Unaudited
(Dollar amounts in                     Quarters Ended
 thousands except  -------------------------------------------------------
 per share data)     Sept. 30, 2008     June 30, 2008      Sept. 30, 2007
                   -----------------  -----------------  -----------------
Market Price:
  Quarter End      $           24.24  $           18.65  $           34.16
  High             $           40.09  $           29.36  $           36.62
  Low              $           13.56  $           18.65  $           31.87
Quarter end price
 to book value                   1.6 x              1.3 x            2.3 x
Quarter end price
 to consensus
 estimated 2008
 earnings                       11.9 x              N/A                N/A
Dividends declared
 per share         $           0.310  $           0.310  $           0.295
Common dividends
 paid              $          15,088  $          15,084  $          14,400

Capital Ratios
Unaudited                                  As Of
                   -------------------------------------------------------
                     Sept. 30, 2008     June 30, 2008      Sept. 30, 2007
                   -----------------  -----------------  -----------------
Regulatory capital ratios:
  Total capital to
   risk-weighted assets        12.04%             11.87%             12.17%
  Tier 1 capital to
   risk-weighted assets         9.42%              9.29%              9.59%
  Tier 1 leverage
   to average assets            7.59%              7.56%              7.75%

Tangible equity ratios:
  Tangible equity
   to tangible assets           5.45%              5.45%              5.77%
  Tangible equity,
   excluding other
   comprehensive loss,
   to tangible assets           6.09%              5.90%              6.25%
  Tangible equity to
   risk-weighted assets         6.70%              6.79%              7.01%



First Midwest Bancorp, Inc.           Press Release Dated October 22, 2008

Condensed Consolidated Statements of Condition
Unaudited                                               September 30,
                                                  ------------------------
(Amounts in thousands)                                2008         2007
                                                  -----------  -----------
Assets
Cash and due from banks                           $   126,073  $   182,495
Funds sold and other short-term investments               564        4,842
Trading account securities                             15,252       17,431
Securities available-for-sale                       2,024,881    1,869,590
Securities held to maturity, at amortized cost         85,982       92,913
Federal Home Loan Bank and Federal Reserve Bank
 stock, at cost                                        54,767       54,767
Loans                                               5,223,582    4,931,472
Reserve for loan losses                               (69,811)     (61,412)
                                                  -----------  -----------
  Net loans                                         5,153,771    4,870,060
                                                  -----------  -----------
Premises, furniture, and equipment                    120,592      126,322
Investment in corporate owned life insurance          207,390      201,418
Goodwill and other intangible assets                  285,643      289,341
Accrued interest receivable and other assets          171,740      175,166
                                                  -----------  -----------
  Total assets                                    $ 8,246,655  $ 7,884,345
                                                  -----------  -----------
Liabilities and Stockholders' Equity
Deposits                                          $ 5,658,284  $ 5,834,175
Borrowed funds                                      1,554,703      998,502
Subordinated debt                                     232,442      227,948
Accrued interest payable and other liabilities         82,317       95,792
                                                  -----------  -----------
  Total liabilities                                 7,527,746    7,156,417
                                                  -----------  -----------
Common stock                                              613          613
Additional paid-in capital                            207,503      206,951
Retained earnings                                     875,947      865,435
Accumulated other comprehensive (loss)                (51,807)     (36,385)
Treasury stock, at cost                              (313,347)    (308,686)
                                                  -----------  -----------
  Total stockholders' equity                          718,909      727,928
                                                  -----------  -----------
  Total liabilities and stockholders' equity      $ 8,246,655  $ 7,884,345
                                                  -----------  -----------



First Midwest Bancorp, Inc.           Press Release Dated October 22, 2008

Condensed Consolidated Statements of Income

Unaudited                                          Quarters Ended
                                           -------------------------------
(Amounts in thousands except per share     Sept. 30,  June 30,   Sept. 30,
 data)                                       2008       2008       2007
                                           ---------  ---------  ---------
Interest Income
Loans                                      $  74,929  $  74,819  $  93,020
Securities                                    26,520     26,391     26,885
Other                                             37        103        185
                                           ---------  ---------  ---------
  Total interest income                      101,486    101,313    120,090
                                           ---------  ---------  ---------
Interest Expense
Deposits                                      25,574     28,036     41,949
Borrowed funds                                 9,451      9,249     13,680
Subordinated debt                              3,703      3,702      3,764
                                           ---------  ---------  ---------
  Total interest expense                      38,728     40,987     59,393
                                           ---------  ---------  ---------
  Net interest income                         62,758     60,326     60,697
Provision for loan losses                     13,029      5,780        470
                                           ---------  ---------  ---------
  Net interest income after provision for
   loan losses                                49,729     54,546     60,227
                                           ---------  ---------  ---------
Noninterest Income
Service charges on deposit accounts           11,974     11,385     11,959
Trust and investment management fees           3,818      3,945      3,934
Other service charges, commissions, and
 fees                                          4,834      4,456      5,601
Card-based fees                                4,141      4,236      4,054
                                           ---------  ---------  ---------
  Subtotal, fee-based revenues                24,767     24,022     25,548
                                           ---------  ---------  ---------
Corporate owned life insurance income          1,882      2,145      2,023
Security (losses) gains, net                  (1,746)    (4,618)    (5,165)
Other                                         (1,209)       874        989
                                           ---------  ---------  ---------
  Total noninterest income                    23,694     22,423     23,395
                                           ---------  ---------  ---------
Noninterest Expense
Salaries and employee benefits                26,996     26,368     27,354
Net occupancy expense                          5,732      5,528      5,686
Equipment expense                              2,484      2,451      2,580
Technology and related costs                   1,990      1,820      1,767
Other                                         11,234     13,778     12,594
                                           ---------  ---------  ---------
  Total noninterest expense                   48,436     49,945     49,981
                                           ---------  ---------  ---------
Income before taxes                           24,987     27,024     33,641
Income tax expense                               796         27      6,404
                                           ---------  ---------  ---------
  Net Income                               $  24,191  $  26,997  $  27,237
                                           ---------  ---------  ---------
  Diluted Earnings Per Share               $    0.50  $    0.56  $    0.55
                                           ---------  ---------  ---------
  Dividends Declared Per Share             $   0.310  $   0.310  $   0.295
                                           ---------  ---------  ---------
  Weighted Average Diluted Shares
   Outstanding                                48,556     48,576     49,447
                                           ---------  ---------  ---------



First Midwest Bancorp, Inc.          Press Release Dated October 22, 2008

                                                         9/30/08 % Change
Unaudited                       As Of                          From
(Dollar       ------------------------------------------ -----------------
 amounts in               % of
 thousands)     9/30/08   total    6/30/08     3/31/08   6/30/08   3/31/08
              ----------- -----  ----------- ----------- --------  -------
Loan Portfolio
 Composition
  Commercial,
   industrial,
   and agri-
   cultural   $ 1,644,758  31.5% $ 1,656,161 $ 1,597,279     (2.8%)   5.9%
  Commercial
   real
   estate:
    Office,
     retail,
     and
     industrial 1,092,268  20.9%   1,048,547   1,020,403     16.7%   14.1%
    Residential
     land and
     development  509,974   9.8%     510,818     515,052     (0.7%)  (2.0%)
    Multifamily   204,029   3.9%     195,815     188,474     16.8%   16.5%
    Other
     commercial
     real
     estate     1,021,662  19.5%   1,014,759     952,622      2.7%   14.5%
              ----------- -----  ----------- ----------- --------  ------
      Total
       commercial
       real
       estate
       (1)      2,827,933  54.1%   2,769,939   2,676,551      8.4%   11.3%
              ----------- -----  ----------- ----------- --------  ------
  Consumer:
    Home
     equity       468,703   9.0%     460,581     459,068      7.1%    4.2%
    Real estate
     1-4 family   205,851   3.9%     213,295     224,895    (14.0%) (16.9%)
    Other
     consumer      76,337   1.5%      82,379      87,972    (29.3%) (26.5%)
              ----------- -----  ----------- ----------- --------  ------
      Total
       consumer   750,891  14.4%     756,255     771,935     (2.8%)  (5.5%)
              ----------- -----  ----------- ----------- --------  ------
    Total
     loans(2) $ 5,223,582 100.0% $ 5,182,355 $ 5,045,765      3.2%    7.0%
              ----------- -----  ----------- ----------- --------  ------
Commercial
 Real Estate
 Detail Office,
 Retail, and
 Industrial
Loans by
 product type:
  Office      $   352,200  32.3% $   337,424 $   326,107     17.5%   16.0%
  Retail          300,570  27.5%     281,942     279,146     26.4%   15.0%
  Industrial      439,498  40.2%     429,181     414,684      9.6%   12.0%
              ----------- -----  ----------- ----------- --------  ------
   Total
    office,
    retail,
    and indus-
    trial     $ 1,092,268 100.0% $ 1,048,547 $ 1,020,403     16.7%   14.1%
              ----------- -----  ----------- ----------- --------  ------
Residential
 Land and
 Development
Loans by
 product type:
  Structures  $   190,741  37.4% $   217,161 $   209,146    (48.7%) (17.6%)
  Land            319,233  62.6%     293,657     305,906     34.8%    8.7%
              ----------- -----  ----------- ----------- --------  ------
    Total
     residential
     land and
     devel-
     opment   $   509,974 100.0% $   510,818 $   515,052     (0.7%)  (2.0%)
              ----------- -----  ----------- ----------- --------  ------
Other
 Commercial
 Real Estate
Loans by
 product type:
  Commercial
   land       $   263,030  25.7% $   285,411 $   260,502    (31.4%)   1.9%
  1-5 family
   investors      178,540  17.5%     168,259     169,768     24.4%   10.3%
  Service
   stations
   and truck
   stops          134,677  13.2%     120,670     117,592     46.4%   29.1%
  Warehouses
   and storage     80,889   7.9%      79,580      71,921      6.6%   24.9%
  Hotels           67,217   6.6%      67,574      59,199     (2.1%)  27.1%
  Restaurants      44,872   4.4%      47,313      48,147    (20.6%) (13.6%)
  Medical          42,253   4.1%      43,347      42,912    (10.1%)  (3.1%)
  Automobile
   dealers         38,866   3.8%      37,562      30,934     13.9%   51.3%
  Mobile
   home parks      29,670   2.9%      25,217      23,481     70.6%   52.7%
  Recreational     14,760   1.5%      15,106      16,348     (9.2%) (19.4%)
  Religious        10,317   1.0%      11,362      11,291    (36.8%) (17.3%)
  Other           116,571  11.4%     113,358     100,527     11.3%   31.9%
              ----------- -----  ----------- ----------- --------  ------
    Total
    other
    commercial
    real
    estate    $ 1,021,622 100.0% $ 1,014,759 $   952,622      2.7%   14.5%
              ----------- -----  ----------- ----------- --------  ------

(1) 24% of total commercial real estate loans are owner occupied as of
    September 30, 2008.
(2) Substantially all loans that are over $1 million are to customers
    within our market as of September 30, 2008.



First Midwest Bancorp, Inc.           Press Release Dated October 22, 2008

Unaudited                                    As Of
                     -----------------------------------------------------
(Dollar amounts in                % of      % of
 thousands)           9/30/08   Category    Total      6/30/08    3/31/08
                     ---------  --------   --------   ---------  ---------
Asset Quality
Nonaccrual loans:
   Commercial,
    industrial, and
    agricultural     $  13,961      0.85%      12.0%  $   5,222  $   6,770
   Office, retail,
    and industrial       1,195      0.11%       1.0%      1,125        730
   Residential land
    and development     28,335      5.56%      24.3%     11,664      4,081
   Multifamily           2,827      1.39%       2.4%      3,016      1,361
   Other commercial
    real estate          1,845      0.18%       1.6%        885        255
   Consumer              5,154      0.69%       4.4%      3,324      3,876
                     ---------             --------   ---------  ---------
      Total
       nonaccrual
       loans            53,317                 45.7%     25,236     17,073
Restructured loans       2,258                  2.0%        259        140
                     ---------             --------   ---------  ---------
      Total
       nonperforming
       loans            55,575                 47.7%     25,495     17,213
Other real estate
 owned                  23,697                 20.3%      7,042      8,607
                     ---------             --------   ---------  ---------
      Total
       nonperforming
       assets        $  79,272                 68.0%  $  32,537  $  25,820
                     ---------             --------   ---------  ---------
90 days past due
 loans (still
 accruing interest):
   Commercial,
    industrial, and
    agricultural     $   5,757      0.35%       5.0%  $   4,530  $   3,926
   Office, retail,
    and industrial       4,838      0.44%       4.1%      2,855      2,182
   Residential land
    and development     17,615      3.45%      15.1%     16,696     17,438
   Multifamily           1,216      0.60%       1.1%      2,071      2,332
   Other commercial
    real estate          2,469      0.24%       2.1%      3,410      2,451
   Consumer              5,421      0.72%       4.6%      7,948      5,150
                     ---------             --------   ---------  ---------
      Total 90 days
       past due
       loans            37,316                 32.0%     37,510     33,479
                     ---------             --------   ---------  ---------
      Total
       nonperforming
       assets plus
       90 days
       past due
       loans         $ 116,588                100.0%  $  70,047  $  59,299
                     ---------  --------   --------   ---------  ---------
30-89 days past due
 loans               $ 104,769                        $ 185,186  $ 116,431
                     ---------  --------   --------   ---------  ---------

Asset Quality Ratios
Nonperforming loans
 to loans                 1.06%                            0.49%      0.34%
Nonperforming assets
 to loans plus
 foreclosed real
 estate                   1.51%                            0.63%      0.51%
Nonperforming assets
 plus loans past due
 90 days to loans
 plus foreclosed real
 estate                   2.22%                            1.35%      1.17%
Reserve for loan
 losses              $  69,811                        $  66,104  $  64,780
Reserve for loan
 losses to loans          1.34%                            1.28%      1.28%
Reserve for loan
 losses to
 nonperforming loans       126%                             259%       376%
                     ---------  --------   --------   ---------  ---------

                                        Quarters Ended
                     -----------------------------------------------------
(Dollar amounts in                % of      % of
 thousands)           9/30/08   Category    Total      6/30/08    3/31/08
                     ---------  --------   --------   ---------  ---------
Charge-off Data
Net loans
 charged-off:
   Commercial,
    industrial, and
    agricultural     $   1,895      0.12%      20.3%  $   2,380  $   3,188
   Office, retail,
    and industrial           2      0.00%      0.00%         31          -
   Residential land
    and development      5,856      1.15%      62.8%        138        559
   Multifamily             (40)    (0.02%)    (0.04%)       830        842
   Other commercial
    real estate             62      0.01%       0.7%        116        673
   Consumer              1,547      0.21%      16.6%        961        818
                     ---------             --------   ---------  ---------
      Total net
       loans
       charged-off   $   9,322                100.0%  $   4,456  $   6,080
                     ---------             --------   ---------  ---------
Quarter-to-date net
 loan charge-offs to
 average loans
 (annualized)             0.71%                            0.35%      0.49%
Year-to-date net
 loan charge-offs to
 average loans
 (annualized)             0.52%                            0.42%      0.49%
                     ---------  --------   --------   ---------  ---------

Contact Information