ITASCA, IL--(Marketwire - Jul 27, 2011) - First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (
Operating Performance
- Net income applicable to common shares of $8.1 million, or $0.11 per share, increased 8.6% and 57.5% versus first quarter 2011 and second quarter 2010, respectively.
- Core operating earnings of $34.3 million, up 9.2% from first quarter 2011 and down 1.2% versus second quarter 2010.
- Total loans, excluding covered loans, of $5.1 billion, up 1.4% annualized, led by commercial and industrial loan annualized growth of 6.8% from March 31, 2011.
- Average core transactional deposits of $4.7 billion, up 4.7%, from first quarter 2011 and 10.4% from second quarter 2010.
- Fee-based revenues of $24.2 million, improved 11.5% and 10.6% from first quarter 2011 and second quarter 2010, respectively.
Credit and Capital
- Non-performing assets reduced to $222.9 million, down 7.0% linked quarter and 17.3% from December 31, 2010.
- Non-accrual loans to total loans of 3.47%, improved 19 and 68 basis points from March 31, 2011 and December 31, 2010, respectively.
- Allowance for credit losses to non-performing loans of 76%, unchanged from March 31, 2011 and increased from 67% at December 31, 2010.
- Tier 1 common capital to risk-weighted assets of 10.20% as of June 30, 2011, up 23 basis points from 9.97% at March 31, 2011 and up 39 basis points from 9.81% at December 31, 2010.
Today First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (
| Quarters Ended | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| 2011 | 2011 | 2010 | ||||||||||
| Operating Performance | (Dollar amounts in thousands) | |||||||||||
| Net income | $ | 10,828 | $ | 10,218 | $ | 7,809 | ||||||
| Net income applicable to common shares | $ | 8,144 | $ | 7,497 | $ | 5,171 | ||||||
| Diluted earnings per common share | $ | 0.11 | $ | 0.10 | $ | 0.07 | ||||||
| Return on average common equity | 3.47 | % | 3.27 | % | 2.16 | % | ||||||
| Return on average assets | 0.53 | % | 0.51 | % | 0.40 | % | ||||||
| Pre-tax, pre-provision core operating earnings | $ | 34,324 | $ | 31,427 | $ | 34,746 | ||||||
| Net interest margin | 4.10 | % | 4.15 | % | 4.21 | % | ||||||
| Efficiency ratio | 60.19 | % | 62.40 | % | 57.92 | % | ||||||
| Loans, including covered loans | $ | 5,427,853 | $ | 5,444,989 | $ | 5,373,271 | ||||||
| Loans, excluding covered loans | $ | 5,112,911 | $ | 5,095,543 | $ | 5,208,347 | ||||||
| Average core transactional deposits | $ | 4,742,889 | $ | 4,527,937 | $ | 4,297,585 | ||||||
| June 30, | March 31, | December 31, | ||||||||||
| 2011 | 2011 | 2010 | ||||||||||
| Credit and Capital | (Dollar amounts in thousands) | |||||||||||
| Non-performing assets, excluding covered loans and covered OREO (1) | $ | 222,933 | $ | 239,777 | $ | 269,466 | ||||||
| Non-performing assets, excluding covered loans and covered OREO to loans plus other real estate owned ("OREO") (1) | 4.34 | % | 4.67 | % | 5.25 | % | ||||||
| Non-accrual loans to total loans, excluding covered loans (1) | 3.47 | % | 3.66 | % | 4.15 | % | ||||||
| Allowance for credit losses to non-performing loans, excluding covered loans (1) | 76 | % | 76 | % | 67 | % | ||||||
| Tier 1 common capital to risk-weighted assets | 10.20 | % | 9.97 | % | 9.81 | % | ||||||
| Tangible common equity to tangible assets | 8.47 | % | 8.34 | % | 8.06 | % | ||||||
| (1) | Covered loans and covered OREO were acquired through transactions with the Federal Deposit Insurance Corporation ("FDIC") and are subject to loss sharing agreements with the FDIC whereby the Company is indemnified against the majority of any losses incurred related to these assets. |
SUMMARY UPDATE
"Our second quarter performance reflects continued improvement on a number of business fronts," said Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc. "Overall earnings increased on the strength of solid margins, enhanced fee revenues, and controlled expenses. Sales activity remains robust, reflecting active lending, growth in lower cost, core deposit funding, and advancement in trust and investment management and card-based lines of business. We continue to make progress in reducing the level of problem credits, having reduced non-performing assets by some 20% since the start of the year."
Mr. Scudder further commented, "With ample liquidity and a strong capital position, we are well positioned to benefit as economic and operating conditions stabilize and demand for credit grows."
OPERATING PERFORMANCE
| Pre-Tax, Pre-Provision Core Operating Earnings (1) | |||||||||||||
| (Dollar amounts in thousands) | |||||||||||||
| Quarters Ended | |||||||||||||
| June 30, | March 31, | June 30, | |||||||||||
| 2011 | 2011 | 2010 | |||||||||||
| Income before income tax | $ | 13,669 | $ | 10,248 | $ | 7,948 | |||||||
| Provision for loan losses | 18,763 | 19,492 | 21,526 | ||||||||||
| Pre-tax, pre-provision earnings | 32,432 | 29,740 | 29,474 | ||||||||||
| Non-Operating Items | |||||||||||||
| Securities gains, net | 1,531 | 540 | 1,121 | ||||||||||
| Gain on Federal Deposit Insurance Corporation ("FDIC")-assisted transaction | - | - | 4,303 | ||||||||||
| Losses on sales and write-downs of OREO | (3,423 | ) | (2,227 | ) | (8,924 | ) | |||||||
| Integration costs associated with FDIC-assisted transactions | - | - | (1,772 | ) | |||||||||
| Total non-operating items | (1,892 | ) | (1,687 | ) | (5,272 | ) | |||||||
| Pre-tax, pre-provision core operating earnings (1) | $ | 34,324 | $ | 31,427 | $ | 34,746 | |||||||
| (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. |
The increase in core operating earnings from first quarter 2011 resulted from a rise in all fee-based categories and higher net interest income, primarily due to a reduction in interest expense paid on time deposits. Second quarter 2011 was relatively unchanged compared to second quarter 2010, as higher net interest income and fee-based revenues offset higher noninterest expense, excluding losses recognized on OREO. Further discussion of net interest income and noninterest income and expense is presented in later sections of this release.
| Net Interest Income and Margin Analysis | |||||||||||||||||||||
| (Dollar amounts in thousands) | |||||||||||||||||||||
| Quarters Ended | |||||||||||||||||||||
| June 30, 2011 | March 31, 2011 | ||||||||||||||||||||
| Yield/ | Yield/ | ||||||||||||||||||||
| Average | Rate | Average | Rate | ||||||||||||||||||
| Balance | Interest | (%) | Balance | Interest | (%) | ||||||||||||||||
| Assets: | |||||||||||||||||||||
| Federal funds sold and other short-term investments | $ | 566,315 | $ | 341 | 0.24 | $ | 467,880 | $ | 292 | 0.25 | |||||||||||
| Trading securities | 16,255 | 23 | 0.57 | 15,372 | 30 | 0.78 | |||||||||||||||
| Investment securities (1) | 1,150,221 | 12,933 | 4.50 | 1,166,991 | 13,048 | 4.47 | |||||||||||||||
| Federal Home Loan Bank ("FHLB") and Federal Reserve Bank stock | 59,745 | 340 | 2.28 | 61,338 | 357 | 2.33 | |||||||||||||||
| Loans, excluding covered loans (1) | 5,108,234 | 63,521 | 4.99 | 5,075,840 | 63,301 | 5.06 | |||||||||||||||
| Covered interest-earning assets (2) | 420,108 | 7,655 | 7.31 | 444,242 | 7,822 | 7.14 | |||||||||||||||
| Total loans | 5,528,342 | 71,176 | 5.16 | 5,520,082 | 71,123 | 5.23 | |||||||||||||||
| Total interest-earning assets (1) | 7,320,878 | 84,813 | 4.64 | 7,231,663 | 84,850 | 4.75 | |||||||||||||||
| Cash and due from banks | 120,599 | 121,494 | |||||||||||||||||||
| Allowance for loan losses | (148,092 | ) | (148,051 | ) | |||||||||||||||||
| Other assets | 877,710 | 889,845 | |||||||||||||||||||
| Total assets | $ | 8,171,095 | $ | 8,094,951 | |||||||||||||||||
| Liabilities and Stockholders' Equity: | |||||||||||||||||||||
| Interest-bearing transaction deposits | $ | 3,277,451 | 1,590 | 0.19 | $ | 3,185,924 | 1,656 | 0.21 | |||||||||||||
| Time deposits | 1,813,164 | 5,379 | 1.19 | 1,937,890 | 6,015 | 1.26 | |||||||||||||||
| Borrowed funds | 262,525 | 687 | 1.05 | 285,847 | 680 | 0.96 | |||||||||||||||
| Subordinated debt | 137,747 | 2,279 | 6.64 | 137,745 | 2,286 | 6.73 | |||||||||||||||
| Total interest-bearing liabilities | 5,490,887 | 9,935 | 0.73 | 5,547,406 | 10,637 | 0.78 | |||||||||||||||
| Demand deposits | 1,465,438 | 1,342,013 | |||||||||||||||||||
| Total funding sources | 6,956,325 | 6,889,419 | |||||||||||||||||||
| Other liabilities | 80,000 | 83,217 | |||||||||||||||||||
| Stockholders' equity - common | 941,770 | 929,315 | |||||||||||||||||||
| Stockholders' equity - preferred | 193,000 | 193,000 | |||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 8,171,095 | $ | 8,094,951 | |||||||||||||||||
| Net interest income/margin(1) | $ | 74,878 | 4.10 | $ | 74,213 | 4.15 | |||||||||||||||
| Quarters Ended | ||||||||||||
| June 30, 2010 | ||||||||||||
| Yield/ | ||||||||||||
| Average | Rate | |||||||||||
| Balance | Interest | (%) | ||||||||||
| Assets: | ||||||||||||
| Federal funds sold and other short-term investments | $ | 300,346 | $ | 176 | 0.24 | |||||||
| Trading securities | 14,134 | 27 | 0.76 | |||||||||
| Investment securities (1) | 1,213,455 | 17,592 | 5.80 | |||||||||
| Federal Home Loan Bank ("FHLB") and Federal Reserve Bank stock | 59,758 | 335 | 2.24 | |||||||||
| Loans, excluding covered loans (1) | 5,204,566 | 65,811 | 5.07 | |||||||||
| Covered interest-earning assets (2) | 233,907 | 2,598 | 4.45 | |||||||||
| Total loans | 5,438,473 | 68,409 | 5.05 | |||||||||
| Total interest-earning assets (1) | 7,026,166 | 86,539 | 4.94 | |||||||||
| Cash and due from banks | 170,524 | |||||||||||
| Allowance for loan losses | (153,537 | ) | ||||||||||
| Other assets | 862,211 | |||||||||||
| Total assets | $ | 7,905,364 | ||||||||||
| Liabilities and Stockholders' Equity: | ||||||||||||
| Interest-bearing transaction deposits | $ | 3,116,488 | 2,889 | 0.37 | ||||||||
| Time deposits | 1,916,116 | 6,737 | 1.41 | |||||||||
| Borrowed funds | 342,808 | 749 | 0.88 | |||||||||
| Subordinated debt | 137,738 | 2,280 | 6.64 | |||||||||
| Total interest-bearing liabilities | 5,513,150 | 12,655 | 0.92 | |||||||||
| Demand deposits | 1,181,097 | |||||||||||
| Total funding sources | 6,694,247 | |||||||||||
| Other liabilities | 58,723 | |||||||||||
| Stockholders' equity - common | 959,394 | |||||||||||
| Stockholders' equity - preferred | 193,000 | |||||||||||
| Total liabilities and stockholders' equity | $ | 7,905,364 | ||||||||||
| Net interest income/margin(1) | $ | 73,884 | 4.21 | |||||||||
| (1) | Interest income and yields are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%. |
| (2) | Covered interest-earning assets consist of loans acquired through the Company's FDIC-assisted transactions and the related FDIC indemnification asset. |
Average interest-earning assets for second quarter 2011 increased $89.2 million, or 1.2%, from first quarter 2011. The quarter-over-quarter improvement in average interest-earning assets was driven by a rise in average short-term investments stemming from the normal seasonal increase in public fund deposits. The Company is maintaining an elevated level of short-term assets as it manages its liquidity in the current low-yield environment.
Average interest-earning assets for second quarter 2011 rose $294.7 million, or 4.2%, from second quarter 2010. This increase was due primarily to the addition of covered interest-earning assets and the investment of deposits acquired in the Company's FDIC-assisted transactions in short-term investments, partially offset by reductions in loans resulting from sales, paydowns, and charge-offs.
Average funding sources for second quarter 2011 grew $66.9 million, or 1.0%, from first quarter 2011. The rise in core transactional deposits from first quarter 2011 to second quarter 2011 resulted from seasonal increases in public funds balances. This increase was partially offset by a $124.7 million, or 6.4%, decline in average time deposits, primarily public time deposits.
Average funding sources increased $262.1 million, or 3.9%, from second quarter 2010 to second quarter 2011. The growth during this period resulted from a $284.3 million, or 24.1%, rise in average demand deposits partially offset by a $103.0 million, or 5.4%, decline in average time deposits. The addition of core transactional deposits reflected ongoing sales efforts, customers' liquidity preferences in today's low interest rate environment, and the acquisition of deposits through the Company's FDIC-assisted transactions.
Tax-equivalent net interest margin for second quarter 2011 was 4.10%, a decline of 5 basis points from first quarter 2011 and 11 basis points from second quarter 2010, primarily reflecting the impact of the growth in deposits invested in short-term investments. The reduction in margin resulted from declines in the average yield on interest-earning assets, partially offset by declines in the average rate paid for interest-bearing liabilities.
Interest earned on covered loans is generally recognized through the accretion of the discount taken on expected future cash flows. The Company realized actual cash flows in excess of estimates upon final settlement of certain covered loans, resulting in additional interest of $1.1 million for second quarter 2011 and $954,000 for first quarter 2011. This additional income is included in interest on covered interest-earning assets in the table above and increased net interest margin by 6 basis points for second quarter 2011 and 5 basis points for first quarter 2011.
| Noninterest Income Analysis | ||||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||
| June 30, 2011 | ||||||||||||||||||
| Quarters Ended | Percent Change From | |||||||||||||||||
| June 30, | March 31, | June 30, | March 31, | June 30, | ||||||||||||||
| 2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| Service charges on deposit accounts | $ | 9,563 | $ | 8,144 | $ | 9,052 | 17.4 | 5.6 | ||||||||||
| Trust and investment advisory fees | 4,118 | 4,116 | 3,702 | 0.0 | 11.2 | |||||||||||||
| Other service charges, commissions, and fees | 5,362 | 4,914 | 4,628 | 9.1 | 15.9 | |||||||||||||
| Card-based fees | 5,162 | 4,529 | 4,497 | 14.0 | 14.8 | |||||||||||||
| Total fee-based revenues | 24,205 | 21,703 | 21,879 | 11.5 | 10.6 | |||||||||||||
| Bank-owned life insurance income | 259 | 252 | 349 | 2.8 | (25.8 | ) | ||||||||||||
| Other income | 501 | 978 | 680 | (48.8 | ) | (26.3 | ) | |||||||||||
| Total operating revenues | 24,965 | 22,933 | 22,908 | 8.9 | 9.0 | |||||||||||||
| Trading (losses) gains, net | (2 | ) | 744 | (1,022 | ) | (100.3 | ) | (99.8 | ) | |||||||||
| Gains on securities sales, net | 1,531 | 540 | 2,255 | 183.5 | (32.1 | ) | ||||||||||||
| Securities impairment losses | - | - | (1,134 | ) | - | N/M | ||||||||||||
| Gain on FDIC-assisted transaction | - | - | 4,303 | - | N/M | |||||||||||||
| Total noninterest income | $ | 26,494 | $ | 24,217 | $ | 27,310 | 9.4 | (3.0 | ) | |||||||||
| N/M - Not meaningful. |
Fee-based revenues for second quarter 2011 rose 11.5% from first quarter 2011 and 10.6% compared to second quarter 2010 with increases in all categories for both periods, except for trust and investment advisory fees, which were consistent with first quarter 2011.
The rise in service charges for both periods was due primarily to a combination of higher volume NSF fees and market-driven pricing increases. The increase from first quarter 2011 to second quarter 2011 was also influenced by normal seasonality.
An increase in trust assets under management drove the rise in trust and investment advisory fees from second quarter 2010 to second quarter 2011. During this period, trust assets under management grew 13.0% from $4.0 billion to $4.5 billion. Approximately $400 million of this growth was derived equally from improved equity market performance and new sales results, with the remaining $100 million resulting from the addition of managed assets acquired in an FDIC-assisted transaction.
Increased merchant fees led to the increase in other service charges, commissions, and fees from both prior periods presented. The year-over-year increase in merchant fees was due primarily to a 25% volume increase resulting from customers acquired in an FDIC-assisted transaction.
The Company experienced a continued favorable variance in card-based fees for both periods, which was attributed to both volume and transaction rates. Volume increases were due to a higher number of transactions and an increase in the average purchase per transaction.
| Noninterest Expense Analysis | ||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||
| June 30, 2011 | ||||||||||||||||
| Quarters Ended | Percent Change From | |||||||||||||||
| June 30, | March 31, | June 30, | March 31, | June 30, | ||||||||||||
| 2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||
| Salaries and wages | $ | 25,493 | $ | 25,665 | $ | 21,146 | (0.7 | ) | 20.6 | |||||||
| Retirement and other employee benefits | 5,765 | 6,858 | 5,394 | (15.9 | ) | 6.9 | ||||||||||
| Total compensation expense | 31,258 | 32,523 | 26,540 | (3.9 | ) | 17.8 | ||||||||||
| Write-downs of OREO | 1,523 | 1,112 | 3,272 | 37.0 | (53.5 | ) | ||||||||||
| Losses on sales of OREO, net | 1,900 | 1,115 | 5,652 | 70.4 | (66.4 | ) | ||||||||||
| OREO operating expense, net | 1,800 | 1,704 | 2,926 | 5.6 | (38.5 | ) | ||||||||||
| Total OREO expense | 5,223 | 3,931 | 11,850 | 32.9 | (55.9 | ) | ||||||||||
| Loan remediation costs | 2,878 | 2,848 | 2,649 | 1.1 | 8.6 | |||||||||||
| Other professional services | 2,762 | 2,271 | 3,003 | 21.6 | (8.0 | ) | ||||||||||
| Total professional services | 5,640 | 5,119 | 5,652 | 10.2 | (0.2 | ) | ||||||||||
| FDIC premiums | 1,708 | 2,725 | 2,546 | (37.3 | ) | (32.9 | ) | |||||||||
| Net occupancy and equipment expense | 8,012 | 9,103 | 7,808 | (12.0 | ) | 2.6 | ||||||||||
| Technology and related costs | 2,697 | 2,623 | 2,785 | 2.8 | (3.2 | ) | ||||||||||
| Advertising and promotions | 1,378 | 1,079 | 2,473 | 27.7 | (44.3 | ) | ||||||||||
| Other expenses | 9,507 | 8,020 | 7,801 | 18.5 | 21.9 | |||||||||||
| Total noninterest expense | $ | 65,423 | $ | 65,123 | $ | 67,455 | 0.5 | (3.0 | ) | |||||||
| Total noninterest expense, excluding losses recognized on OREO | $ | 62,000 | $ | 62,896 | $ | 58,531 | (1.4 | ) | 5.9 | |||||||
Total noninterest expense for second quarter 2011 was relatively unchanged compared to first quarter 2011 and decreased 3.0% from second quarter 2010.
OREO expenses were elevated in 2010 due to higher levels of write-downs and losses on sales of OREO and related operating expenses. Excluding OREO losses, total noninterest expense was down 1.4% for the current quarter compared to first quarter 2011 and up 5.9% from the same period last year.
The increase in salaries and wages from second quarter 2010 to second quarter 2011 resulted primarily from additional staff employed through the Palos Bank & Trust acquisition in August 2010, the expansion of commercial sales staff, and annual merit increases. The variances in employee benefits for the periods presented were impacted by the timing of certain benefit accruals.
FDIC premiums decreased compared to first quarter 2011 and second quarter 2010, primarily due to a change in regulatory requirements for calculating the premium. Specifically, the insurance premium assessment base was revised from all domestic deposits to the average of total assets less tangible equity.
High snow removal costs in first quarter 2011 resulted in increased net occupancy expense for that period, accounting for the decrease from first quarter 2011 to second quarter 2011. An increase in the rates charged for property taxes as well as property taxes associated with branches acquired through the Company's FDIC-assisted transactions resulted in an increase in net occupancy and equipment expense from second quarter 2010.
Advertising and promotions expense was down from the same period in the prior year. Second quarter 2010 advertising costs included costs to implement a new consumer overdraft program and one-time expenses incurred in response to FDIC-assisted transaction activity in the Chicago banking market.
The increases in second quarter 2011 other noninterest expense from first quarter 2011 and second quarter 2010 were due primarily to higher cardholder expenses driven by higher transaction volumes and miscellaneous losses.
Income Taxes
Income tax expense was $2.8 million for second quarter 2011, increasing from $30,000 for first quarter 2011 and $139,000 for second quarter 2010. The increases resulted primarily from an increase in pre-tax income in second quarter 2011 over that of the prior periods and a $1.6 million state tax benefit recorded in first quarter 2011 related to the write-up of state deferred tax assets.
LOAN PORTFOLIO AND ASSET QUALITY
| Loan Portfolio Composition | ||||||||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||||||
| June 30, 2011 | ||||||||||||||||||||||
| As Of | Percent Change From | |||||||||||||||||||||
| June 30, | March 31, | December | June 30, | March 31, | June 30, | |||||||||||||||||
| 2011 | 2011 | 31, 2010 | 2010 | 2011 | 2010 | |||||||||||||||||
| Corporate: | ||||||||||||||||||||||
| Commercial and industrial | $ | 1,518,772 | $ | 1,493,465 | $ | 1,465,903 | $ | 1,494,119 | 1.7 | 1.7 | ||||||||||||
| Agricultural | 237,518 | 234,898 | 227,756 | 199,597 | 1.1 | 19.0 | ||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||
| Office | 415,654 | 412,256 | 396,836 | 415,846 | 0.8 | (0.0 | ) | |||||||||||||||
| Retail | 324,977 | 320,313 | 328,751 | 310,819 | 1.5 | 4.6 | ||||||||||||||||
| Industrial | 488,469 | 473,311 | 478,026 | 493,526 | 3.2 | (1.0 | ) | |||||||||||||||
| Multi-family | 336,138 | 344,645 | 349,862 | 369,281 | (2.5 | ) | (9.0 | ) | ||||||||||||||
| Residential construction | 129,327 | 151,887 | 174,690 | 241,094 | (14.9 | ) | (46.4 | ) | ||||||||||||||
| Commercial construction | 146,679 | 153,392 | 164,472 | 202,041 | (4.4 | ) | (27.4 | ) | ||||||||||||||
| Other commercial real estate | 852,966 | 850,334 | 856,357 | 831,723 | 0.3 | 2.6 | ||||||||||||||||
| Total commercial real estate | 2,694,210 | 2,706,138 | 2,748,994 | 2,864,330 | (0.4 | ) | (5.9 | ) | ||||||||||||||
| Total corporate loans | 4,450,500 | 4,434,501 | 4,442,653 | 4,558,046 | 0.4 | (2.4 | ) | |||||||||||||||
| Consumer: | ||||||||||||||||||||||
| Home equity loans | 429,923 | 434,138 | 445,243 | 458,066 | (1.0 | ) | (6.1 | ) | ||||||||||||||
| 1-4 family mortgages | 185,002 | 178,538 | 160,890 | 145,457 | 3.6 | 27.2 | ||||||||||||||||
| Installment loans | 47,486 | 48,366 | 51,774 | 46,778 | (1.8 | ) | 1.5 | |||||||||||||||
| Total consumer loans | 662,411 | 661,042 | 657,907 | 650,301 | 0.2 | 1.9 | ||||||||||||||||
| Total loans, excluding covered loans | 5,112,911 | 5,095,543 | 5,100,560 | 5,208,347 | 0.3 | (1.8 | ) | |||||||||||||||
| Covered loans | 314,942 | 349,446 | 371,729 | 164,924 | (10.6 | ) | 91.0 | |||||||||||||||
| Total loans | $ | 5,427,853 | $ | 5,444,989 | $ | 5,472,289 | $ | 5,373,271 | (0.3 | ) | 1.0 | |||||||||||
Total loans, including covered loans, of $5.4 billion as of June 30, 2011 remained relatively unchanged from March 31, 2011. Annualized growth of 6.8% in commercial and industrial loans was substantially offset by a decline in the construction loan portfolios.
Total loans increased $54.6 million, or 1.0%, from June 30, 2010 to June 30, 2011. The growth was driven by the addition of covered loans acquired through the Company's FDIC-assisted transactions, which more than offset declines in the construction loan portfolios.
| Asset Quality | |||||||||||||||||||||||
| (Dollar amounts in thousands) | |||||||||||||||||||||||
| As Of | June 30, 2011 | ||||||||||||||||||||||
| 2011 | 2010 | Percent Change From | |||||||||||||||||||||
| December | March 31, | December | |||||||||||||||||||||
| June 30 | March 31 | 31 | June 30 | 2011 | 31, 2010 | ||||||||||||||||||
| Non-performing assets, excluding covered loans and covered OREO | |||||||||||||||||||||||
| Non-accrual loans (1) | $ | 177,495 | $ | 186,563 | $ | 211,782 | $ | 193,689 | (4.9 | ) | (16.2 | ) | |||||||||||
| 90 days or more past due loans | 6,502 | 5,231 | 4,244 | 6,280 | 24.3 | 53.2 | |||||||||||||||||
| Total non-performing loans | 183,997 | 191,794 | 216,026 | 199,969 | (4.1 | ) | (14.8 | ) | |||||||||||||||
| Restructured loans (still accruing interest) | 14,529 | 14,120 | 22,371 | 9,030 | 2.9 | (35.1 | ) | ||||||||||||||||
| Other real estate owned | 24,407 | 33,863 | 31,069 | 57,023 | (27.9 | ) | (21.4 | ) | |||||||||||||||
| Total non-performing assets | $ | 222,933 | $ | 239,777 | $ | 269,466 | $ | 266,022 | (7.0 | ) | (17.3 | ) | |||||||||||
| 30-89 days past due loans | $ | 30,424 | $ | 28,927 | $ | 23,646 | $ | 32,012 | 5.2 | 28.7 | |||||||||||||
| Allowance for credit losses | $ | 139,831 | $ | 145,003 | $ | 145,072 | $ | 145,477 | (3.6 | ) | (3.6 | ) | |||||||||||
| Non-accrual loans to total loans | 3.47 | % | 3.66 | % | 4.15 | % | 3.72 | % | |||||||||||||||
| Non-performing loans to total loans | 3.60 | % | 3.76 | % | 4.24 | % | 3.84 | % | |||||||||||||||
| Non-performing assets to loans plus OREO | 4.34 | % | 4.67 | % | 5.25 | % | 5.05 | % | |||||||||||||||
| Allowance for credit losses to loans | 2.73 | % | 2.85 | % | 2.84 | % | 2.79 | % | |||||||||||||||
| Allowance for credit losses to non-performing loans | 76 | % | 76 | % | 67 | % | 73 | % | |||||||||||||||
| Covered loans and covered OREO(2) | |||||||||||||||||||||||
| Non-accrual loans | $ | 3,588 | $ | - | $ | - | $ | - | 100.0 | 100.0 | |||||||||||||
| 90 days or more past due loans (3) | 68,324 | 88,605 | 84,350 | 47,912 | (22.9 | ) | (19.0 | ) | |||||||||||||||
| Total non-performing loans | 71,912 | 88,605 | 84,350 | 47,912 | (18.8 | ) | (14.7 | ) | |||||||||||||||
| Restructured loans (still accruing interest) | - | - | - | - | - | - | |||||||||||||||||
| Other real estate owned | 14,583 | 21,543 | 22,370 | 10,657 | (32.3 | ) | (34.8 | ) | |||||||||||||||
| Total non-performing assets | $ | 86,495 | $ | 110,148 | $ | 106,720 | $ | 58,569 | (21.5 | ) | (19.0 | ) | |||||||||||
| 30-89 days past due loans | $ | 26,180 | $ | 10,399 | $ | 18,445 | $ | 13,725 | 151.8 | 41.9 | |||||||||||||
| Non-performing assets, including covered loans and covered OREO | |||||||||||||||||||||||
| Non-accrual loans | $ | 181,083 | $ | 186,563 | $ | 211,782 | $ | 193,689 | (2.9 | ) | (14.5 | ) | |||||||||||
| 90 days or more past due loans | 74,826 | 93,836 | 88,594 | 54,192 | (20.3 | ) | (15.5 | ) | |||||||||||||||
| Total non-performing loans | 255,909 | 280,399 | 300,376 | 247,881 | (9.6 | ) | (14.8 | ) | |||||||||||||||
| Restructured loans (still accruing interest) | 14,529 | 14,120 | 22,371 | 9,030 | 2.9 | (35.1 | ) | ||||||||||||||||
| Other real estate owned | 38,990 | 55,406 | 53,439 | 67,680 | (29.6 | ) | (27.0 | ) | |||||||||||||||
| Total non-performing assets | $ | 309,428 | $ | 349,925 | $ | 376,186 | $ | 324,591 | (11.6 | ) | (17.7 | ) | |||||||||||
| 30-89 days past due loans | $ | 56,604 | $ | 39,326 | $ | 42,091 | $ | 45,737 | 43.9 | 34.5 | |||||||||||||
| Non-accrual loans to total loans | 3.34 | % | 3.42 | % | 3.87 | % | 3.60 | % | |||||||||||||||
| Non-performing loans to total loans | 4.71 | % | 5.15 | % | 5.49 | % | 4.61 | % | |||||||||||||||
| Non-performing assets to loans plus OREO | 5.66 | % | 6.36 | % | 6.81 | % | 5.97 | % | |||||||||||||||
| Allowance for credit losses to loans | 2.58 | % | 2.66 | % | 2.65 | % | 2.71 | % | |||||||||||||||
| Allowance for credit losses to non-performing loans | 55 | % | 52 | % | 48 | % | 59 | % | |||||||||||||||
| (1) | Includes $22.0 million in restructured non-accrual loans. |
| (2) | Covered loans and covered OREO were acquired through transactions with the FDIC and are subject to loss sharing agreements with the FDIC whereby the Company is indemnified against the majority of any losses incurred related to these assets. |
| (3) | These loans are past due based on contractual terms, but are performing according to the Company's current expectations of cash flows. |
Non-performing assets, excluding covered loans and covered OREO, were $222.9 million at June 30, 2011, decreasing $16.8 million, or 7.0%, from March 31, 2011 and $46.5 million, or 17.3%, from December 31, 2010. The reductions were substantially due to remediation activities, dispositions, and charge-offs partially offset by loans downgraded to non-accrual status.
| Charge-off Data | |||||||||||||||||||||
| (Dollar amounts in thousands) | |||||||||||||||||||||
| Quarters Ended | |||||||||||||||||||||
| June 30, | % of | March 31, | % of | June 30, | % of | ||||||||||||||||
| 2011 | Total | 2011 | Total | 2010 | Total | ||||||||||||||||
| Net loans charged-off: | |||||||||||||||||||||
| Commercial and industrial | $ | 5,585 | 28.2 | $ | 3,128 | 16.9 | $ | 2,679 | 13.2 | ||||||||||||
| Agricultural | 799 | 4.0 | 9 | 0.1 | 546 | 2.7 | |||||||||||||||
| Office, retail, and industrial | 609 | 3.1 | 1,183 | 6.4 | 2,353 | 11.6 | |||||||||||||||
| Multi-family | 6,652 | 33.6 | 549 | 3.0 | 485 | 2.4 | |||||||||||||||
| Residential construction | 899 | 4.5 | 5,418 | 29.3 | 9,994 | 49.4 | |||||||||||||||
| Commercial construction | 133 | 0.7 | 261 | 1.4 | 115 | 0.6 | |||||||||||||||
| Other commercial real estate | 2,107 | 10.6 | 5,358 | 29.0 | 1,507 | 7.5 | |||||||||||||||
| Consumer | 3,043 | 15.3 | 2,563 | 13.9 | 2,543 | 12.6 | |||||||||||||||
| Total net loans charged-off, excluding covered loans | 19,827 | 100.0 | 18,469 | 100.0 | 20,222 | 100.0 | |||||||||||||||
| Net charge-offs on covered loans | 4,108 | 1,092 | 651 | ||||||||||||||||||
| Total net charge-offs | $ | 23,935 | $ | 19,561 | $ | 20,873 | |||||||||||||||
| Net loan charge-offs to average loans, excluding covered loans, annualized: | |||||||||||||||||||||
| Quarter-to-date | 1.56 | % | 1.48 | % | 1.56 | % | |||||||||||||||
| Year-to-date | 1.52 | % | 1.48 | % | 1.49 | % | |||||||||||||||
Net charge-offs for second quarter 2011, excluding charge-offs related to covered loans, were $19.8 million, compared to $18.5 million for first quarter 2011 and $20.2 million for second quarter 2010. Higher charge-offs on multi-family loans were mostly offset by lower charge-offs on residential construction loans. The charge-offs on multi-family loans were largely driven by three loan relationships.
Charge-offs related to covered loans for second quarter 2011, as well as the other quarters shown, reflect the decline in cash flows of certain acquired loans, net of the reimbursement from the FDIC under loss sharing arrangements. The comparative increase reflects the initial re-estimation of the present value of loans acquired in the Palos Bank & Trust acquisition in August 2010. Management performs such remeasurements of cash flows periodically, and any declines, net of loss share, are reflected as charge-offs in the period of remeasurement. Conversely, any increases in estimated cash flows, net of loss share, are recorded through prospective yield adjustments over the remaining lives of the specific loans. To date, increases in estimated cash flows have exceeded declines, and such increases will be reflected in higher margins in future periods. Overall, the total portfolio of covered loans has experienced a net increase in estimated cash flows since acquisition and continues to perform better than originally expected.
CAPITAL MANAGEMENT
| Capital Ratios | |||||||||||||||
| (Dollar amounts in thousands) | |||||||||||||||
| Regulatory | Excess Over | ||||||||||||||
| Minimum | Required | ||||||||||||||
| June 30, | March 31, | June 30, | For "Well- | Minimums at | |||||||||||
| 2011 | 2011 | 2010 | Capitalized" | June 30, 2011 | |||||||||||
| Regulatory capital ratios: | |||||||||||||||
| Total capital to risk-weighted assets | 16.70% | 16.45% | 17.31% | 10.00% | 67% | $ | 419,579 | ||||||||
| Tier 1 capital to risk-weighted assets | 14.63% | 14.38% | 15.25% | 6.00% | 144% | $ | 540,461 | ||||||||
| Tier 1 leverage to average assets | 11.65% | 11.61% | 12.70% | 5.00% | 133% | $ | 523,055 | ||||||||
| Regulatory capital ratios, excluding preferred stock (1): | |||||||||||||||
| Total capital to risk-weighted assets | 13.62% | 13.38% | 14.27% | 10.00% | 36% | $ | 226,579 | ||||||||
| Tier 1 capital to risk-weighted assets | 11.55% | 11.31% | 12.21% | 6.00% | 92% | $ | 347,461 | ||||||||
| Tier 1 leverage to average assets | 9.20% | 9.13% | 10.17% | 5.00% | 84% | $ | 330,055 | ||||||||
| Tier 1 common capital to risk-weighted assets (2) (3) |
10.20% | 9.97% | 10.88% | N/A (3) | N/A (3) | N/A (3) | |||||||||
| Tangible common equity ratios: | |||||||||||||||
| Tangible common equity to tangible assets | 8.47% | 8.34% | 9.05% | N/A (3) | N/A (3) | N/A (3) | |||||||||
| Tangible common equity, excluding other comprehensive loss, to tangible assets | 8.67% | 8.65% | 9.22% | N/A (3) | N/A (3) | N/A (3) | |||||||||
| Tangible common equity to risk-weighted assets | 10.61% | 10.27% | 10.71% | N/A (3) | N/A (3) | N/A (3) | |||||||||
| (1) | These ratios exclude the impact of $193.0 million in preferred shares issued to the U.S. Department of the Treasury in December 2008 as part of its Capital Purchase Program. |
| (2) | Excludes the impact of preferred shares and trust-preferred securities. |
| (3) | Ratio is not subject to formal Federal Reserve regulatory guidance. |
All regulatory mandated ratios for characterization as "well-capitalized" were exceeded as of June 30, 2011. The improvement from March 31, 2011 was driven by net income increasing capital.
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 some 100 offices located primarily in metropolitan Chicago. First Midwest was recently recognized by the Chicago Tribune as one of the top 20 best places to work in Chicago among large employers. First Midwest Bank received the highest numerical score among retail banks in the Midwest region in the proprietary J.D. Power and Associates 2011 Retail Banking Satisfaction Study (SM). The study was based on 51,620 total responses measuring 27 providers in the Midwest region (IA, IL, KS, MO, MN, and WI) and measures opinions of consumers with their primary banking provider. These proprietary study results are based on experiences and perceptions of consumers surveyed in January 2011. Visit www.jdpower.com for further information.
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, 2010 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, July 27, 2011 at 10:00 A.M. (ET). Members of the public who would like to listen to the conference call should dial (877) 317-6789 (U.S. domestic) or (412) 317-6789 (international) and ask for the First Midwest Bancorp, Inc. Earnings Conference Call. 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 (877) 344-7529 (U.S. domestic) or (412) 317-0088 (international) conference I.D. 10001491 beginning one hour after completion of the live call until 9:00 A.M. (ET) on August 4, 2011. 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:
- Condensed Consolidated Statements of Financial Condition
- Condensed Consolidated Statements of Income
Press Release and Additional Information Available on Website
This press release, the accompanying financial statements and tables, and certain additional unaudited Selected Financial Information are available through the "Investor Relations" section of First Midwest's website at www.firstmidwest.com/investorrelations.
| Condensed Consolidated Statements of Financial Condition | |||||||||||||||||
| Unaudited | |||||||||||||||||
| (Amounts in thousands) | |||||||||||||||||
| June 30, | March 31, | December 31, | June 30, | ||||||||||||||
| 2011 | 2011 | 2010 | 2010 | ||||||||||||||
| Assets | |||||||||||||||||
| Cash and due from banks | $ | 110,159 | $ | 104,982 | $ | 102,495 | $ | 136,982 | |||||||||
| Interest-bearing deposits in other banks | 601,310 | 421,478 | 483,281 | 3,217 | |||||||||||||
| Federal funds sold and other short-term investments | - | - | - | 232,881 | |||||||||||||
| Trading account securities, at fair value | 16,230 | 16,227 | 15,282 | 13,067 | |||||||||||||
| Securities available-for-sale, at fair value | 1,009,873 | 1,057,758 | 1,057,802 | 1,090,109 | |||||||||||||
| Securities held-to-maturity, at amortized cost | 76,142 | 81,218 | 81,320 | 87,843 | |||||||||||||
| Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 58,187 | 61,338 | 61,338 | 59,864 | |||||||||||||
| Loans, excluding covered loans | 5,112,911 | 5,095,543 | 5,100,560 | 5,208,347 | |||||||||||||
| Covered loans | 314,942 | 349,446 | 371,729 | 164,924 | |||||||||||||
| Allowance for loan losses | (137,331 | ) | (142,503 | ) | (142,572 | ) | (145,027 | ) | |||||||||
| Net loans | 5,290,522 | 5,302,486 | 5,329,717 | 5,228,244 | |||||||||||||
| Other real estate owned ("OREO"), excluding covered OREO | 24,407 | 33,863 | 31,069 | 57,023 | |||||||||||||
| Covered OREO | 14,583 | 21,543 | 22,370 | 10,657 | |||||||||||||
| Federal Deposit Insurance Corporation ("FDIC") indemnification asset | 95,752 | 85,386 | 95,899 | 75,991 | |||||||||||||
| Premises, furniture, and equipment | 131,952 | 138,119 | 140,907 | 132,335 | |||||||||||||
| Investment in bank-owned life insurance | 198,149 | 197,889 | 197,644 | 198,399 | |||||||||||||
| Goodwill and other intangible assets | 284,120 | 284,785 | 286,033 | 281,255 | |||||||||||||
| Accrued interest receivable and other assets | 218,005 | 229,245 | 233,145 | 197,222 | |||||||||||||
| Total assets | $ | 8,129,391 | $ | 8,036,317 | $ | 8,138,302 | $ | 7,805,089 | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||
| Deposits | |||||||||||||||||
| Transactional deposits | $ | 4,731,329 | $ | 4,545,670 | $ | 4,519,492 | $ | 4,218,383 | |||||||||
| Time deposits | 1,764,220 | 1,874,224 | 1,991,984 | 1,905,182 | |||||||||||||
| Total deposits | 6,495,549 | 6,419,894 | 6,511,476 | 6,123,565 | |||||||||||||
| Borrowed funds | 272,024 | 273,342 | 303,974 | 328,470 | |||||||||||||
| Subordinated debt | 137,748 | 137,746 | 137,744 | 137,739 | |||||||||||||
| Accrued interest payable and other liabilities | 82,479 | 81,459 | 73,063 | 59,803 | |||||||||||||
| Total liabilities | 6,987,800 | 6,912,441 | 7,026,257 | 6,649,577 | |||||||||||||
| Preferred stock | 191,220 | 191,050 | 190,882 | 190,553 | |||||||||||||
| Common stock | 858 | 858 | 858 | 858 | |||||||||||||
| Additional paid-in capital | 424,877 | 422,405 | 437,550 | 435,605 | |||||||||||||
| Retained earnings | 802,072 | 794,569 | 787,678 | 819,890 | |||||||||||||
| Accumulated other comprehensive loss, net of tax | (15,339 | ) | (24,373 | ) | (27,739 | ) | (12,803 | ) | |||||||||
| Treasury stock, at cost | (262,097 | ) | (260,633 | ) | (277,184 | ) | (278,591 | ) | |||||||||
| Total stockholders' equity | 1,141,591 | 1,123,876 | 1,112,045 | 1,155,512 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 8,129,391 | $ | 8,036,317 | $ | 8,138,302 | $ | 7,805,089 | |||||||||
| Condensed Consolidated Statements of Income | ||||||||||||||
| Unaudited | ||||||||||||||
| (Amounts in thousands, except per share data) | ||||||||||||||
| Quarters Ended | ||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||
| 2011 | 2011 | 2010 | ||||||||||||
| Interest Income | ||||||||||||||
| Loans | $ | 63,089 | $ | 62,917 | $ | 65,439 | ||||||||
| Investment securities | 9,848 | 9,865 | 13,699 | |||||||||||
| Covered loans | 7,655 | 7,822 | 2,598 | |||||||||||
| Federal funds sold and other short-term investments | 704 | 679 | 538 | |||||||||||
| Total interest income | 81,296 | 81,283 | 82,274 | |||||||||||
| Interest Expense | ||||||||||||||
| Deposits | 6,969 | 7,671 | 9,626 | |||||||||||
| Borrowed funds | 687 | 680 | 749 | |||||||||||
| Subordinated debt | 2,279 | 2,286 | 2,280 | |||||||||||
| Total interest expense | 9,935 | 10,637 | 12,655 | |||||||||||
| Net interest income | 71,361 | 70,646 | 69,619 | |||||||||||
| Provision for loan losses | 18,763 | 19,492 | 21,526 | |||||||||||
| Net interest income after provision for loan losses | 52,598 | 51,154 | 48,093 | |||||||||||
| Noninterest Income | ||||||||||||||
| Service charges on deposit accounts | 9,563 | 8,144 | 9,052 | |||||||||||
| Trust and investment advisory fees | 4,118 | 4,116 | 3,702 | |||||||||||
| Other service charges, commissions, and fees | 5,362 | 4,914 | 4,628 | |||||||||||
| Card-based fees | 5,162 | 4,529 | 4,497 | |||||||||||
| Total fee-based revenues | 24,205 | 21,703 | 21,879 | |||||||||||
| Bank-owned life insurance income | 259 | 252 | 349 | |||||||||||
| Securities gains, net | 1,531 | 540 | 1,121 | |||||||||||
| Gain on FDIC-assisted transaction | - | - | 4,303 | |||||||||||
| Other | 499 | 1,722 | (342 | ) | ||||||||||
| Total noninterest income | 26,494 | 24,217 | 27,310 | |||||||||||
| Noninterest Expense | ||||||||||||||
| Salaries and employee benefits | 31,258 | 32,523 | 26,540 | |||||||||||
| OREO expense, net | 5,223 | 3,931 | 11,850 | |||||||||||
| FDIC premiums | 1,708 | 2,725 | 2,546 | |||||||||||
| Net occupancy and equipment expense | 8,012 | 9,103 | 7,808 | |||||||||||
| Technology and related costs | 2,697 | 2,623 | 2,785 | |||||||||||
| Professional fees | 5,640 | 5,119 | 5,652 | |||||||||||
| Other | 10,885 | 9,099 | 10,274 | |||||||||||
| Total noninterest expense | 65,423 | 65,123 | 67,455 | |||||||||||
| Income before income tax expense | 13,669 | 10,248 | 7,948 | |||||||||||
| Income tax expense | 2,841 | 30 | 139 | |||||||||||
| Net income | 10,828 | 10,218 | 7,809 | |||||||||||
| Preferred dividends | (2,582 | ) | (2,581 | ) | (2,573 | ) | ||||||||
| Net income applicable to non-vested restricted shares | (102 | ) | (140 | ) | (65 | ) | ||||||||
| Net income applicable to common shares | $ | 8,144 | $ | 7,497 | $ | 5,171 | ||||||||
| Diluted earnings per common share | $ | 0.11 | $ | 0.10 | $ | 0.07 | ||||||||
| Dividends declared per common share | $ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||||
| Weighted average diluted common shares outstanding | 73,259 | 73,151 | 73,028 | |||||||||||
Contact Information:
CONTACT:
Paul F. Clemens
Chief Financial Officer
(630) 875-7347
www.firstmidwest.com
First Midwest Bancorp, Inc.
One Pierce Place, Suite 1500
Itasca, Illinois 60143
(630) 875-7450