-- After tax earnings of $3.2 million and diluted EPS of $0.07, as
compared to diluted LPS of ($0.57) for fourth quarter 2008 and EPS of $0.51
for first quarter 2008.
-- Pre-tax earnings, excluding provision expense and net securities
gains, improved 6.3% from first quarter 2008.
-- Net interest margin of 3.67% up 14 basis points versus 3.53% for first
quarter 2008 and down 4 basis points from 3.71% for fourth quarter 2008.
-- Efficiency ratio improved to 52.3% compared to 54.0% for first quarter
2008 and 59.1% for fourth quarter 2008.
Capital, Credit, and Other
-- Tangible common equity and Tier 1 regulatory capital ratios of 5.36%
and 11.85%, respectively, increased from year-end 2008.
-- Loan loss reserves increased to 2.15% of total loans as compared to
1.75% at December 31, 2008, with first quarter 2009 provision exceeding
charge-offs by $22 million.
-- Non-performing loans, including loans past due 90 days, increased to
4.80% of total loans compared to 3.21% at December 31, 2008.
-- Net securities gains realized of $8.2 million; tax benefits recognized
of $4.0 million.
First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (
Excess Over
Minimum Required
"Well- Minimums at
March December Capitalized" March 31,
31, 2009 31, 2008 Level 2009
-------- -------- ---------- -----------
(Amounts in
millions)
Regulatory Capital Ratios:
Tier 1 Risk Based 11.85% 11.60% 6.00% 98% $386
Total Risk Based Capital 14.62% 14.36% 10.00% 46% $305
Tier 1 Leverage Capital 9.60% 9.41% 5.00% 92% $375
Regulatory Capital
Ratios, Excluding
Preferred Equity:
Tier 1 Risk Based 8.93% 8.68% 6.00% 49% $193
Total Risk Based Capital 11.70% 11.44% 10.00% 17% $112
Tier 1 Leverage Capital 7.23% 7.04% 5.00% 45% $182
Tangible Common Equity Ratios:
Tangible Common Equity 5.36% 5.23% N/A N/A N/A
Tangible Common Equity,
Excluding OCI 5.83% 5.45% N/A N/A N/A
On March 16, 2009, the Company announced, in an effort to build capital
during this period of economic uncertainty, a reduction in its quarterly
common stock dividend from $0.225 per share to $0.010 per share. This
dividend action will enable the retention of approximately $42 million in
capital over the course of a year.
The Board of Directors reviews the Company's capital plan each quarter,
giving cognizance to the current and expected operating environment as well
as an evaluation of various capital alternatives. Consistent with its
dividend history, First Midwest would look to return to a more normalized
dividend level as circumstances permit.
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 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,
2008 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 22, 2009 at 10:00 a.m. (ET).
Members of the public who would like to listen to the conference call
should dial 1-866-713-8395 (U.S. domestic) or 1-617-597-5309
(international) and enter passcode number 697 31 099. 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 website,
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 website or by dialing 1-888-286-8010
(U.S. domestic) or 1-617-801-6888 (international) passcode number 172 71
558, beginning approximately one hour after the event through 11:59 p.m.
(ET) on April 29, 2009. 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
http://www.firstmidwest.com/aboutinvestor_selected.asp.
First Midwest Bancorp, Inc. Press Release Dated April 22, 2009
Operating Highlights
Unaudited Quarters Ended
-------------------------------------
(Amounts in thousands except per March 31, December March 31,
share data) 2009 31, 2008 2008
----------- ----------- -----------
Net income (loss) $ 5,727 $ (26,890) $ 25,038
Net income (loss) applicable to
common shares 3,155 (27,568) 24,979
Diluted earnings per share $ 0.07 $ (0.57) $ 0.51
Return on average equity 1.78% (13.92%) 13.75%
Return on average assets 0.15% (1.31%) 1.25%
Net interest margin 3.67% 3.71% 3.53%
Efficiency ratio 52.33% 59.06% 54.02%
Balance Sheet Highlights
Unaudited As Of
-------------------------------------
(Dollar amounts in thousands except March 31, December March 31,
per share data) 2009 31, 2008 2008
----------- ----------- -----------
Total assets $ 8,252,576 $ 8,528,341 $ 8,315,368
Total loans 5,387,128 5,360,063 5,045,765
Total deposits 5,508,382 5,585,754 5,721,562
Total stockholders’ equity 903,612 908,279 737,927
Common stockholders’ equity 710,612 715,949 737,927
Book value per common share $ 14.61 $ 14.72 $ 15.20
Period end common shares outstanding 48,628 48,630 48,561
Capital Ratios
Unaudited As Of
-------------------------------------
March 31, December March 31,
2009 31, 2008 2008
----------- ----------- -----------
Regulatory capital ratios:
Total capital to risk-weighted
assets 14.62% 14.36% 11.63%
Tier 1 capital to risk-weighted
assets 11.85% 11.60% 9.08%
Tier 1 leverage to average assets 9.60% 9.41% 7.51%
Regulatory capital ratios, excluding
preferred equity:
Total capital to risk-weighted
assets 11.70% 11.44% 11.63%
Tier 1 capital to risk-weighted
assets 8.93% 8.68% 9.08%
Tier 1 leverage to average assets 7.23% 7.04% 7.51%
Tangible common equity ratios:
Tangible common equity to tangible
assets 5.36% 5.23% 5.62%
Tangible common equity, excluding
other comprehensive loss, to
tangible assets 5.83% 5.45% 5.73%
First Midwest Bancorp, Inc. Press Release Dated April 22, 2009
Condensed Consolidated Statements of Condition
Unaudited March 31,
------------------------
(Amounts in thousands) 2009 2008
----------- -----------
Assets
Cash and due from banks $ 103,586 $ 171,037
Funds sold and other short-term investments 3,741 1,808
Trading account securities 10,885 17,305
Securities available-for-sale 1,901,919 2,100,602
Securities held to maturity, at amortized cost 81,566 95,651
Federal Home Loan Bank and Federal Reserve Bank
stock, at cost 54,768 54,767
Loans 5,387,128 5,045,765
Reserve for loan losses (116,001) (64,780)
----------- -----------
Net loans 5,271,127 4,980,985
----------- -----------
Foreclosed real estate 38,984 8,607
Premises, furniture, and equipment 117,880 123,257
Investment in bank owned life insurance 199,070 203,987
Goodwill and other intangible assets 283,570 287,141
Accrued interest receivable and other assets 185,480 270,221
----------- -----------
Total assets $ 8,252,576 $ 8,315,368
=========== ===========
Liabilities and Stockholders' Equity
Deposits
Transactional deposits $ 3,522,289 $ 3,562,499
Time deposits 1,943,076 2,131,759
Brokered deposits 43,017 27,304
----------- -----------
Total deposits 5,508,382 5,721,562
Borrowed funds 1,535,752 1,413,726
Subordinated debt 232,375 232,509
Accrued interest payable and other liabilities 72,455 209,644
----------- -----------
Total liabilities 7,348,964 7,577,441
----------- -----------
Preferred stock 189,768 -
Common stock 613 613
Additional paid-in capital 211,325 206,011
Retained earnings 851,339 854,931
Accumulated other comprehensive (loss) (37,470) (9,333)
Treasury stock, at cost (311,963) (314,295)
----------- -----------
Total stockholders' equity 903,612 737,927
----------- -----------
Total liabilities and stockholders' equity $ 8,252,576 $ 8,315,368
=========== ===========
First Midwest Bancorp, Inc. Press Release Dated April 22, 2009
Condensed Consolidated Statements of Income
Unaudited Quarters Ended
-------------------------------
(Amounts in thousands except per share March 31, December March 31,
data) 2009 31, 2008 2008
--------- --------- ---------
Interest Income
Loans $ 65,447 $ 71,849 $ 81,334
Securities 26,030 26,024 27,120
Other 3 60 21
--------- --------- ---------
Total interest income 91,480 97,933 108,475
--------- --------- ---------
Interest Expense
Deposits 18,927 22,802 34,210
Borrowed funds 4,632 6,416 12,076
Subordinated debt 3,702 3,702 3,689
--------- --------- ---------
Total interest expense 27,261 32,920 49,975
--------- --------- ---------
Net interest income 64,219 65,013 58,500
Provision for loan losses 48,410 42,385 9,060
--------- --------- ---------
Net interest income after provision for
loan losses 15,809 22,628 49,440
--------- --------- ---------
Noninterest Income
Service charges on deposit accounts 9,044 11,206 10,422
Trust and investment management fees 3,329 3,420 3,947
Other service charges, commissions, and
fees 4,006 4,554 5,002
Card-based fees 3,755 8,868 3,898
Subtotal, fee-based revenues 20,134 23,048 23,269
Bank owned life insurance income 541 (8,858) 2,462
Securities gains (losses), net 8,222 (34,215) 4,968
Other (126) (2,104) (680)
--------- --------- ---------
Total noninterest income 28,771 (22,129) 30,019
--------- --------- ---------
Noninterest Expense
Salaries and employee benefits 23,311 20,356 26,190
Net occupancy expense 6,506 5,967 6,151
Equipment expense 2,331 2,454 2,567
Technology and related costs 2,240 1,848 1,771
Other 14,006 15,956 12,664
--------- --------- ---------
Total noninterest expense 48,394 46,581 49,343
--------- --------- ---------
(Loss) income before taxes (3,814) (46,082) 30,116
Income tax (benefit) expense (9,541) (19,192) 5,078
--------- --------- ---------
Net Income (Loss) 5,727 (26,890) 25,038
Preferred dividends (2,563) (712) -
Net income applicable to non-vested
restricted shares (9) 33 (59)
--------- --------- ---------
Net Income (Loss) Applicable to Common
Shares $ 3,155 $ (27,568) $ 24,979
========= ========= =========
Diluted Earnings Per Share $ 0.07 (0.57) $ 0.51
Dividends Declared Per Share $ 0.010 0.225 $ 0.310
Weighted Average Diluted Shares
Outstanding 48,493 48,508 48,537
First Midwest Bancorp, Inc. Press Release Dated April 22, 2009
Percent Change
Unaudited As Of From
--------------------------------------- ------------------
(Dollar
amounts in % of
thousands) 3/31/09 Total 12/31/08 3/31/08 12/31/08 3/31/08
---------- ----- ---------- ---------- -------- -------
Loan Portfolio
Composition
Commercial
and
industrial $1,508,175 28.0% $1,490,101 $1,396,665 1.2% 8.0%
Agricultural 141,190 2.6% 142,635 200,614 (1.0%) (29.6%)
Commercial
real
estate:
Office,
retail,
and
industri-
al 1,211,844 22.5% 1,127,689 1,020,403 7.5% 18.8%
Residen-
tial land
and
develop-
ment 466,195 8.7% 509,059 515,052 (8.4%) (9.5%)
Multi-
family 257,039 4.8% 237,646 188,474 8.2% 36.4%
Other
commer-
cial real
estate 1,073,483 19.9% 1,106,952 952,622 (3.0%) 12.7%
---------- ----- ---------- ---------- -------- -------
Total
commer-
cial
real
estate 3,008,561 55.9% 2,981,346 2,676,551 0.9% 12.4%
---------- ----- ---------- ---------- -------- -------
Consumer:
Home
equity 480,283 8.9% 477,105 459,068 0.7% 4.6%
Real
estate
1-4
family 185,486 3.4% 198,197 224,895 (6.4%) (17.5%)
Other
consumer 63,433 1.2% 70,679 87,972 (10.3%) (27.9%)
---------- ----- ---------- ---------- -------- -------
Total
consumer 729,202 13.5% 745,981 771,935 (2.2%) (5.5%)
---------- ----- ---------- ---------- -------- -------
Total
loans $5,387,128 100.0% $5,360,063 $5,045,765 0.5% 6.8%
========== ===== ========== ========== ======== =======
Commercial
Real Estate
Detail
Office
Retail,
and
Industrial
Office $ 404,857 33.4% $ 373,272 $ 326,107 8.5% 24.1%
Retail 338,858 28.0% 313,286 279,612 8.2% 21.2%
Industrial 468,129 38.6% 441,131 414,684 6.1% 12.9%
---------- ----- ---------- ---------- -------- -------
Total
office,
retail,
and
industri-
al $1,211,844 100.0% $1,127,689 $1,020,403 7.5% 18.8%
========== ===== ========== ========== ======== =======
Residential
Land and
Development
Structures $ 143,497 30.8% $ 185,929 $ 209,146 (22.8%) (31.4%)
Land 322,698 69.2% 323,130 305,906 (0.1%) 5.5%
---------- ----- ---------- ---------- -------- -------
Total
residen-
tial
land
and
develop-
ment $ 466,195 100.0% $ 509,059 $ 515,052 (8.4%) (9.5%)
========== ===== ========== ========== ======== =======
Other
Commercial
Real Estate
Commercial
land $ 258,869 24.1% $ 280,120 $ 260,502 (7.6%) (0.6%)
1-4 family
investors 189,901 17.7% 193,227 169,768 (1.7%) 11.9%
Service
stations
and truck
stops 145,571 13.6% 146,891 117,592 (0.9%) 23.8%
Warehouses
and
storage 89,541 8.3% 85,276 71,921 5.0% 24.5%
Hotels 80,365 7.5% 79,186 59,199 1.5% 35.8%
Restaurants 49,897 4.6% 48,106 48,147 3.7% 3.6%
Medical 37,929 3.5% 42,269 42,912 (10.3%) (11.6%)
Automobile
dealers 37,627 3.5% 38,505 30,934 (2.3%) 21.6%
Mobile
home
parks 21,559 2.0% 36,790 23,481 (41.4%) (8.2%)
Recrea-
tional 12,587 1.2% 14,515 16,348 (13.3%) (23.0%)
Religious 11,121 1.0% 11,224 11,291 (0.9%) (1.5%)
Other 138,516 12.9% 130,843 100,527 5.9% 37.8%
---------- ----- ---------- ---------- -------- -------
Total
other
commer-
cial
real
estate $1,073,483 100.0% $1,106,952 $ 952,622 (3.0%) 12.7%
========== ===== ========== ========== ======== =======
First Midwest Bancorp, Inc. Press Release Dated April 22, 2009
Unaudited As Of
-------------------------------------------------
% of
(Dollar amounts in Loan % of
thousands) 3/31/09 Category Total 12/31/08 3/31/08
-------- -------- --------- -------- --------
Asset Quality
Non-accrual loans:
Commercial and
industrial $ 33,245 2.20% 19.8% $ 15,586 $ 6,770
Office, retail, and
industrial 12,769 1.05% 4.6% 2,533 730
Residential land and
development 107,766 23.12% 61.9% 97,060 4,081
Multi-family 6,989 2.72% 4.2% 1,387 1,361
Other commercial real
estate 16,025 1.49% 5.5% 6,926 255
Consumer 6,747 0.93% 4.0% 4,276 3,876
-------- ======== --------- -------- --------
Total non-accrual
loans 183,541 3.41% 100.0% 127,768 17,073
-------- ======== ========= -------- --------
Restructured loans 1,063 7,344 1,942
90 days past due loans
(still accruing
interest):
Commercial and
industrial 16,208 1.07% 18.1% $ 6,818 $ 3,926
Agricultural 1,751 1.24% 1.9% 1,751 -
Office, retail, and
industrial 12,719 1.05% 19.8% 3,214 -
Residential land and
development 20,593 4.42% 27.3% 8,489 17,438
Multi-family 3,356 1.31% 3.7% 1,881 2,332
Other commercial real
estate 8,900 0.83% 17.6% 6,586 2,451
Consumer 10,402 1.43% 11.6% 8,260 5,150
-------- ======== --------- -------- --------
Total 90 days past
due loans 73,929 1.37% 100.0% 36,999 31,297
-------- ======== ========= -------- --------
Total
non-performing
loans $258,533 $172,111 $ 50,252
======== ======== ========
Foreclosed real estate $ 38,984 24,368 8,607
30-89 days past due
loans $ 54,311 1.01% 100.0% $116,206 $185,186
Reserve for loan losses $116,001 - - $ 93,869 $ 64,780
Asset Quality Ratios
Non-accrual loans to
loans 3.41% - - 2.38% 0.33%
Non-performing loans to
loans 4.80% - - 3.21% 0.96%
Reserve for loan losses
to loans 2.15% - - 1.75% 1.24%
Reserve for loan losses
to non-accrual loans 63% - - 73% 379%
Reserve for loan losses
to non-performing loans 45% - - 55% 129%
======== ======== ========
-------------------------------------------------
% of
(Dollar amounts in Loan % of
thousands) 3/31/09 Category Total 12/31/08 3/31/08
-------- -------- --------- -------- --------
Charge-off Data
Net loans charged-off:
Commercial and
industrial $ 12,093 0.80% 46.0% $ 5,601 $ 3,188
Office, retail, and
industrial 878 0.07% 3.3% 699 -
Residential land and
development 10,719 2.30% 40.8% 9,227 559
Multifamily 43 0.02% 0.2% 164 842
Other commercial real
estate 69 0.01% 0.3% 397 673
Consumer 2,476 0.34% 9.4% 2,239 818
-------- ======== --------- -------- --------
Total net loans
charged-off $ 26,278 1.98% 100.0% $ 18,327 $ 6,080
======== ======== ========= ======== ========
Net loan charge-offs to
average loans
(annualized):
Quarter-to-date 1.98% - - 1.38% 0.49%
Year-to-date 1.98% - - 0.74% 0.49%
First Midwest Bancorp, Inc. Press Release Dated April 22, 2009
Securities Available-For-Sale
Unaudited
Collateralized Other
U.S. Mortgage Mortgage State and
Treasury Obligations Backed Municipal
------------ ----------- ----------- -----------
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
============ =========== =========== ===========
As of December 31, 2008
Amortized cost $ 1,039 $ 694,285 $ 504,918 $ 907,036
Gross unrealized gains
(losses):
Gross unrealized
gains 2 7,668 13,421 12,606
Gross unrealized
losses - (3,114) (74) (12,895)
------------ ----------- ----------- -----------
Net unrealized
gains (losses) 2 4,554 13,347 (289)
------------ ----------- ----------- -----------
Fair value $ 1,041 $ 698,839 $ 518,265 $ 906,747
============ =========== =========== ===========
As of March 31, 2008
Amortized cost $ 11,533 $ 471,431 $ 533,373 $ 949,107
Gross unrealized gains
(losses):
Gross unrealized
gains 124 4,572 6,096 12,796
Gross unrealized
losses - (2,548) (324) (3,164)
------------ ----------- ----------- -----------
Net unrealized
gains (losses) 124 2,024 5,772 9,632
------------ ----------- ----------- -----------
Fair value $ 11,657 $ 473,455 $ 539,145 $ 958,739
============ =========== =========== ===========
Collateralized
Debt
Unaudited Obligations Other Total
----------- ----------- -----------
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
=========== =========== ===========
As of December 31, 2008
Amortized cost $ 78,883 $ 51,820 $ 2,237,981
Gross unrealized gains
(losses):
Gross unrealized
gains - 213 33,910
Gross unrealized
losses (36,797) (2,825) (55,705)
----------- ----------- -----------
Net unrealized
gains (losses) (36,797) (2,612) (21,795)
----------- ----------- -----------
Fair value $ 42,086 $ 49,208 $ 2,216,186
=========== =========== ===========
As of March 31, 2008
Amortized cost $ 93,232 $ 45,630 $ 2,104,306
Gross unrealized gains
(losses):
Gross unrealized
gains 348 38 23,974
Gross unrealized
losses (18,624) (3,018) (27,678)
----------- ----------- -----------
Net unrealized
gains (losses) (18,276) (2,980) (3,704)
----------- ----------- -----------
Fair value $ 74,956 $ 42,650 $ 2,100,602
=========== =========== ===========
Contact Information: CONTACT: Paul F. Clemens Chief Financial Officer (630) 875-7347 www.firstmidwest.com