-- After-tax earnings of $3.4 million compared to $2.7 million for second
quarter 2009 and $24.2 million for third quarter 2008.
-- Pre-tax earnings of $28.4 million, excluding provision expense and net
securities and debt extinguishment gains/losses, compared to $25.9 million
for second quarter 2009 and $39.8 million for third quarter 2008.
-- Average core transactional deposits up 3.4% from second quarter 2009
and 7.6% from third quarter 2008.
-- Net interest margin of 3.66% compared to 3.53% for second quarter 2009
and 3.63% for third quarter 2008.
-- Net securities losses realized of $7.0 million for third quarter 2009.
Capital and Credit
-- Increased tangible common equity 132 basis points to 6.88% from second
quarter 2009.
-- Increased Tier 1 regulatory capital and Tier 1 common ratios to 12.88%
and 8.43%, respectively, up 50 and 107 basis points, respectively, from
second quarter 2009.
-- Exchanged $68.8 million of debt for 5.6 million shares of common stock
at a pre-tax gain of approximately $14.0 million.
-- Non-accrual plus 90 days past due loans totaled $262.8 million, which
approximates the level at June 30, 2009.
-- Increased loan loss reserves to 2.53% of total loans compared to 2.39%
at June 30, 2009, with third quarter 2009 provision exceeding net charge-
offs of $31.3 million by $6.7 million.
First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (
Minimum Excess Over
"Well- Required
September June Capital- Minimums at
30, 30, ized" September 30,
2009 2009 Level 2009
------- ------ ------ --------------
(Amounts in
millions)
Regulatory Capital Ratios:
Total capital to risk-weighted
assets 15.27% 15.21% 10.00% 53% $ 329
Tier 1 capital to risk-weighted
assets 12.88% 12.38% 6.00% 115% $ 429
Tier 1 leverage to average
assets 10.52% 9.87% 5.00% 110% $ 421
Regulatory capital ratios,
excluding preferred stock:
Total capital to risk-weighted
assets 12.18% 12.17% 10.00% 22% $ 136
Tier 1 capital to risk-weighted
assets 9.78% 9.33% 6.00% 63% $ 236
Tier 1 leverage to average
assets 7.99% 7.44% 5.00% 60% $ 228
Tier 1 common capital to
risk-weighted assets 8.43% 7.36% N/A N/A N/A
Tangible equity ratios:
Tangible common equity to
tangible assets 6.88% 5.56% N/A N/A N/A
Tangible common equity,
excluding other comprehensive
loss, to tangible assets 7.10% 6.23% N/A N/A N/A
Tangible common equity to
risk-weighted assets 8.16% 6.57% N/A N/A N/A
The Board of Directors reviews the Company's capital plan each quarter,
giving consideration to the current and expected operating environment as
well as an evaluation of various capital alternatives.
About the Company
First Midwest is the premier relationship-based banking franchise in the
growing Chicagoland banking market. As one of the Chicago metropolitan
area's largest independent bank holding companies, First Midwest provides
the full range of both business and retail banking and trust and investment
management services through 93 offices located in 62 communities, primarily
in metropolitan Chicago.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. These statements are not historical facts but instead
represent only the Company's beliefs regarding future events, many of
which, by their nature, are inherently uncertain and outside of the
Company's control. It is possible that actual results and the Company's
financial condition may differ, possibly materially, from the anticipated
results and financial condition indicated in these forward-looking
statements. For a discussion of some of the risks and important factors
that could affect the Company's future results, see "Risk Factors" in the
Company's Annual Report on Form 10-K for the fiscal year ended December 31,
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, October 21, 2009 at 10:00 a.m. (ET).
Members of the public who would like to listen to the conference call
should dial 1-800-706-7741 (U.S. domestic) or 1-617-614-3471
(international) and enter passcode number 257 08 857. The number should be
dialed at 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/aboutinvestor_overview.asp. 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 465 26 612, beginning at
1:00 p.m. (ET) on October 21, 2009 until 11:59 p.m. (ET) on October 28,
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, 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)
-- Securities Available-for-Sale (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 21, 2009
Operating Highlights
Unaudited Quarters Ended
---------------------------------
(Dollar amounts in thousands, September 30, June 30, September 30,
except per share data) 2009 2009 2008
--------- --------- ---------
Net income $ 3,351 $ 2,663 $ 24,191
Net income applicable to common shares 773 63 24,149
Diluted earnings per share $ 0.02 $ - $ 0.50
Return on average common equity 0.43% 0.04% 13.07%
Return on average assets 0.17% 0.13% 1.16%
Net interest margin 3.66% 3.53% 3.63%
Efficiency ratio 59.13% 61.45% 50.30%
Balance Sheet Highlights
Unaudited As Of
-----------------------------------
(Dollar amounts in thousands, September 30, June 30, September 30,
except per share data) 2009 2009 2008
----------- ----------- -----------
Total assets $ 7,678,434 $ 7,767,312 $ 8,246,655
Total loans 5,306,068 5,340,771 5,223,582
Total deposits 5,749,153 5,766,656 5,658,284
Total stockholders’ equity 983,579 892,053 718,909
Common stockholders’ equity 790,579 699,053 718,909
Book value per common share $ 14.43 $ 14.22 $ 14.80
Period end common shares outstanding 54,800 49,161 48,590
Capital Ratios
Unaudited As Of
--------------------------------
September June 30, September
30, 2009 2009 30, 2008
---------- ---------- ----------
Regulatory capital ratios:
Total capital to risk-weighted
assets 15.27% 15.21% 12.04%
Tier 1 capital to risk-weighted
assets 12.88% 12.38% 9.42%
Tier 1 leverage to average assets 10.52% 9.87% 7.59%
Regulatory capital ratios, excluding
preferred stock:
Total capital to risk-weighted assets 12.18% 12.17% 12.04%
Tier 1 capital to risk-weighted assets 9.78% 9.33% 9.42%
Tier 1 leverage to average assets 7.99% 7.44% 7.59%
Tier 1 common capital to risk-weighted
assets 8.43% 7.36% 7.49%
Tangible common equity ratios:
Tangible common equity to tangible
assets 6.88% 5.56% 5.44%
Tangible common equity, excluding
other comprehensive loss, to
tangible assets 7.10% 6.23% 6.09%
Tangible common equity to risk-
weighted assets 8.16% 6.57% 6.69%
First Midwest Bancorp, Inc. Press Release Dated October 21, 2009
Condensed Consolidated Statements of Condition
Unaudited September 30,
------------------------
(Amounts in thousands) 2009 2008
----------- -----------
Assets
Cash and due from banks $ 115,905 $ 126,073
Funds sold and other short-term investments 81,693 564
Trading account securities, at fair value 13,231 15,252
Securities available-for-sale, at fair value 1,349,669 2,024,881
Securities held-to-maturity, at amortized cost 83,860 85,982
Federal Home Loan Bank and Federal Reserve Bank
stock, at cost 54,768 54,767
Loans 5,306,068 5,223,582
Reserve for loan losses (134,269) (69,811)
----------- -----------
Net loans 5,171,799 5,153,771
----------- -----------
Other real estate owned 57,945 23,697
Premises, furniture, and equipment 122,083 120,592
Investment in bank owned life insurance 197,681 207,390
Goodwill and other intangible assets 281,614 285,643
Accrued interest receivable and other assets 148,186 148,043
----------- -----------
Total assets $ 7,678,434 $ 8,246,655
=========== ===========
Liabilities and Stockholders' Equity
Deposits
Transactional deposits $ 3,833,267 $ 3,462,867
Time deposits 1,904,985 2,070,633
Brokered deposits 10,901 124,784
----------- -----------
Total deposits 5,749,153 5,658,284
Borrowed funds 716,299 1,554,703
Subordinated debt 157,717 232,442
Accrued interest payable and other liabilities 71,686 82,317
----------- -----------
Total liabilities 6,694,855 7,527,746
----------- -----------
Preferred stock 190,076 -
Common stock 670 613
Additional paid-in capital 251,423 207,503
Retained earnings 851,178 875,947
Accumulated other comprehensive loss (16,217) (51,807)
Treasury stock, at cost (293,551) (313,347)
----------- -----------
Total stockholders' equity 983,579 718,909
----------- -----------
Total liabilities and stockholders' equity $ 7,678,434 $ 8,246,655
=========== ===========
First Midwest Bancorp, Inc. Press Release Dated October 21, 2009
Condensed Consolidated Statements of
Income
Unaudited
Quarters Ended
------------------------------------
(Amounts in thousands, except per September 30, June 30, September 30,
share data) 2009 2009 2008
------------ -------- ------------
Interest Income
Loans $ 66,035 $ 64,071 $ 74,929
Securities 16,621 21,002 26,520
Other 106 66 37
------------ -------- ------------
Total interest income 82,762 85,139 101,486
------------ -------- ------------
Interest Expense
Deposits 15,324 17,152 25,574
Borrowed funds 2,768 3,893 9,451
Subordinated debt 3,689 3,703 3,703
------------ -------- ------------
Total interest expense 21,781 24,748 38,728
------------ -------- ------------
Net interest income 60,981 60,391 62,758
Provision for loan losses 38,000 36,262 13,029
------------ -------- ------------
Net interest income after
provision for loan losses 22,981 24,129 49,729
------------ -------- ------------
Noninterest Income
Service charges on deposit accounts 10,046 9,687 11,974
Trust and investment management fees 3,555 3,471 3,818
Other service charges, commissions,
and fees 4,222 4,021 4,834
Card-based fees 4,023 4,048 4,141
------------ -------- ------------
Subtotal, fee-based revenues 21,846 21,227 24,767
Bank owned life insurance income 282 1,159 1,882
Securities (losses) gains, net (6,975) 6,635 (1,746)
Gains on early extinguishment of
debt 13,991 - -
Other 1,946 2,373 (1,209)
------------ -------- ------------
Total noninterest income 31,090 31,394 23,694
------------ -------- ------------
Noninterest Expense
Salaries and employee benefits 27,416 28,229 26,996
FDIC insurance 2,558 6,034 261
Net occupancy expense 5,609 5,194 5,732
Loan remediation and other real
estate owned expense, net 4,619 4,296 811
Equipment expense 2,228 2,195 2,484
Technology and related costs 2,230 2,142 1,990
Other 11,980 11,143 10,162
------------ -------- ------------
Total noninterest expense 56,640 59,233 48,436
------------ -------- ------------
(Loss) income before taxes (2,569) (3,710) 24,987
Income tax (benefit) expense (5,920) (6,373) 796
------------ -------- ------------
Net Income 3,351 2,663 24,191
Preferred dividends (2,567) (2,566) -
Net income applicable to non-vested
restricted shares (11) (34) (42)
------------ -------- ------------
Net Income Applicable to Common
Shares $ 773 $ 63 $ 24,149
============ ======== ============
Diluted Earnings Per Common
Share $ 0.02 $ - $ 0.50
Dividends Declared Per Common
Share $ 0.01 $ 0.01 $ 0.31
Weighted Average Diluted Common
Shares Outstanding 48,942 48,501 48,499
First Midwest
Bancorp, Inc. Press Release Dated October 21, 2009
Percent Change
Unaudited As Of From
----------------------------------------- -----------------
(Dollar
amounts in % of
thousands) 9/30/09 Total 6/30/09 9/30/08 6/30/08 9/30/08
---------- ------- ---------- ---------- ------- -------
Loan Portfolio
Composition
Commercial
and
industrial $1,484,601 28.0% $1,457,413 $1,485,541 1.9% (0.1%)
Agricultural 200,955 3.8% 210,675 234,755 (4.6%) (14.4%)
Commercial
real
estate:
Office,
retail,
and
industrial 1,151,276 21.7% 1,117,748 999,319 3.0% 15.2%
Residential
const-
ruction 400,502 7.5% 458,913 509,974 (12.7%) (21.5%)
Commercial
construc-
tion 196,198 3.7% 204,042 229,492 (3.8%) (14.5%)
Commercial
land 105,264 2.0% 121,383 92,658 (13.3%) 13.6%
Multifamily 342,807 6.5% 305,976 237,506 12.0% 44.3%
Investor-
owned
rental
property 117,276 2.2% 132,173 133,375 (11.3%) (12.1%)
Other
commercial
real
estate 636,153 12.0% 626,959 550,071 1.5% 15.6%
---------- ------- ---------- ---------- ------- -------
Total
commercial
real
estate 2,949,476 55.6% 2,967,194 2,752,395 (0.6%) 7.2%
---------- ------- ---------- ---------- ------- -------
Consumer:
Home
equity 478,204 9.0% 480,706 468,703 (0.5%) 2.0%
Real
estate
1-4
family 138,862 2.6% 171,186 205,851 (18.9%) (32.5%)
Other
consumer 53,970 1.0% 53,597 76,337 0.7% (29.3%)
---------- ------- ---------- ---------- ------- -------
Total
consumer 671,036 12.6% 705,489 750,891 (4.9%) (10.6%)
---------- ------- ---------- ---------- ------- -------
Total
loans $5,306,068 100.0% $5,340,771 $5,223,582 (0.6%) 1.6%
========== ======= ========== ========== ======= =======
Office,
Retail, and
Industrial
Office $ 376,897 32.7% $ 356,946 $ 318,041 5.6% 18.5%
Retail 314,586 27.3% 297,829 260,095 5.6% 21.0%
Industrial 459,793 40.0% 462,973 421,183 (0.7%) 9.2%
---------- ------- ---------- ---------- ------- -------
Total
office,
retail,
and
indus-
trial $1,151,276 100.0% $1,117,748 $ 999,319 3.0% 15.2%
========== ======= ========== ========== ======= =======
First Midwest Bancorp, Inc. Press Release Dated October 21, 2009
Unaudited As Of
------------------------------------------------
% of
(Dollar amounts in Loan % of
thousands) 9/30/09 Category Total 6/30/09 9/30/08
-------- -------- -------- -------- --------
Asset Quality
Non-accrual loans:
Commercial and
industrial $ 45,134 3.04% 17.6% $ 41,542 $ 13,961
Agricultural 2,384 1.19% 0.9% 452 12
Office, retail, and
industrial 15,738 1.37% 6.1% 13,058 1,195
Residential
construction 138,593 34.60% 54.0% 143,231 28,335
Commercial
construction - - - - -
Multi-family 15,910 4.64% 6.2% 10,632 2,827
Other commercial real
estate 25,818 4.06% 10.1% 21,262 1,833
Consumer 13,228 1.97% 5.1% 7,076 5,154
-------- ======== -------- -------- --------
Total non-accrual
loans 256,805 4.84% 100.0% 237,253 53,317
-------- ======== ======== -------- --------
90 days past due loans
(still accruing
interest):
Commercial and
industrial 3,216 0.22% 53.9% 7,174 4,006
Agricultural - - - 1,931 1,751
Office, retail, and
industrial 1,036 0.09% 17.4% 1,013 4,838
Residential
construction 66 0.02% 1.1% 5,022 17,615
Commercial
construction - - - 689 -
Multi-family 238 0.07% 4.0% 699 1,216
Other commercial real
estate 338 0.05% 5.7% 1,938 2,469
Consumer 1,066 0.16% 17.9% 7,605 5,421
-------- ======== -------- -------- --------
Total 90 days past
due loans 5,960 0.11% 100.0% 26,071 37,316
-------- ======== ======== -------- --------
Total non-accrual
and 90 days
past due loans 262,765 263,324 90,633
Restructured, accruing
loans 26,718 18,877 3,731
-------- -------- --------
Total
non-performing
loans $289,483 $282,201 $ 94,364
======== ======== ========
Other real estate owned $ 57,945 $ 50,640 $ 23,697
30-89 days past due loans $ 44,346 0.84% - $ 38,128 $104,769
Reserve for loan losses $134,269 - - $127,528 $ 69,811
Asset Quality Ratios
Non-accrual loans to
loans 4.84% - - 4.44% 1.02%
Non-accrual plus 90 days
past due loans to loans 4.95% - - 4.93% 1.74%
Non-performing loans to
loans 5.46% - - 5.28% 1.81%
Reserve for loan losses
to loans 2.53% - - 2.39% 1.34%
Reserve for loan losses
to non-accrual loans 52% - - 54% 131%
Reserve for loan losses
to non-accrual plus
90 days past due
loans to loans 51% - - 48% 77%
Reserve for loan losses
to non-performing loans 46% - - 45% 74%
======== ======== ========
Quarters Ended
------------------------------------------------
% of
(Dollar amounts in Loan % of
thousands) 9/30/09 Category Total 6/30/09 9/30/08
-------- -------- -------- -------- --------
Charge-off Data
Net loans charged-off:
Commercial and
industrial $ 12,585 0.85% 40.3% $ 7,006 $ 1,899
Agricultural - - - - (4)
Office, retail, and
industrial 3,496 0.30% 11.2% 217 2
Residential
construction 5,181 1.29% 16.6% 8,427 5,856
Commercial
construction - - - - -
Multifamily 29 0.01% 0.1% 1,086 (40)
Other commercial real
estate 6,400 1.01% 20.4% 3,197 62
Consumer 3,568 0.53% 11.4% 4,802 1,547
-------- ======== -------- -------- --------
Total net loans
charged-off $ 31,259 2.32% 100.0% $ 24,735 $ 9,322
======== ======== ======== ======== ========
Net loan charge-offs to
average loans
(annualized):
Quarter-to-date 2.32% - - 1.85% 0.71%
Year-to-date 2.05% - - 1.91% 0.52%
First Midwest Bancorp, Inc. Press Release Dated October 21, 2009
Securities Available-For-Sale
Unaudited
Collateral- Collateral-
U.S. ized State ized
Treasury Mortgage Other and Debt
and Oblig- Mortgage Muni- Oblig-
Agency ations Backed cipal ations Other Total
--------- -------- -------- -------- -------- -------- ----------
As of
September
30, 2009
Amortized
cost $ 757 $322,780 $233,396 $680,216 $ 60,290 $ 50,929 $1,348,368
Gross
unrealized
gains
(losses):
Gross
unrealized
gains - 10,651 10,782 29,176 - 578 51,187
Gross
unrealized
losses - (2,224) (3) (1,078) (44,747) (1,834) (49,886)
--------- -------- -------- -------- -------- -------- ----------
Net
unreal-
ized
gains
(losses) - 8,427 10,779 28,098 (44,747) (1,256) 1,301
--------- -------- -------- -------- -------- -------- ----------
Fair
value $ 757 $331,207 $244,175 $708,314 $ 15,543 $ 49,673 $1,349,669
========= ======== ======== ======== ======== ======== ==========
As of
June 30,
2009
Amortized
cost $ - $382,526 $221,481 $767,856 $ 71,789 $ 59,646 $1,503,298
Gross
unrealized
gains
(losses):
Gross
unrealized
gains - 8,349 6,786 4,907 - 140 20,182
Gross
unrealized
losses - (3,456) (15) (14,778) (51,474) (3,675) (73,398)
--------- -------- -------- -------- -------- -------- ----------
Net
unreal-
ized
gains
(losses) - 4,893 6,771 (9,871) (51,474) (3,535) (53,216)
--------- -------- -------- -------- -------- -------- ----------
Fair
value $ - $387,419 $228,252 $757,985 $ 20,315 $ 56,111 $1,450,082
========= ======== ======== ======== ======== ======== ==========
As of
September
30, 2008
Amortized
cost $ 2,901 $515,376 $517,139 $926,519 $ 85,286 $ 50,973 $2,098,194
Gross
unrealized
gains
(losses):
Gross
unrealized
gains 6 1,798 1,970 1,987 80 26 5,867
Gross
unrealized
losses - (6,827) (3,068) (45,854) (14,000) (9,431) (79,180)
--------- -------- -------- -------- -------- -------- ----------
Net
unreal-
ized
gains
(losses) 6 (5,029) (1,098) (43,867) (13,920) (9,405) (73,313)
--------- -------- -------- -------- -------- -------- ----------
Fair
value $ 2,907 $510,347 $516,041 $882,652 $ 71,366 $ 41,568 $2,024,881
========= ======== ======== ======== ======== ======== ==========
Contact Information: CONTACT: Paul F. Clemens Chief Financial Officer (630) 875-7347 www.firstmidwest.com