| Exhibit 99 |
[LOGO] | NewsRelease |
| First Midwest Bancorp
300 Park Blvd., Suite 405
P.O. Box 459
Itasca, Illinois 60143-9768
(630) 875-7450
|
FOR IMMEDIATE RELEASE | CONTACT: | Donald J. Swistowicz
(630) 875-7460
www.firstmidwest.com |
| TRADED: SYMBOL: | Nasdaq
FMBI
|
FIRST MIDWEST REPORTS RECORD RESULTS
QUARTER UP 11.1% - SIX MONTHS UP 9.0%
2nd QUARTER 2001 HIGHLIGHTS:
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| o | Record EPS of $.50 vs. $.45 a Year Ago & $.48 Consensus |
| o | Record ROAA of 1.41% vs. 1.29% a Year Ago |
| o | Continued Net Interest Margin Improvement to 4.04% vs. 3.77% in 1st Quarter 2001 & 3.84% in 2nd Quarter 2000 |
| o | Record Efficiency Ratio of 50.5% vs. 54% a Year Ago |
| o | Noninterest Income up 11% - Non Interest Expense Down 1.3% |
| o | Credit Quality Stable |
ITASCA, IL, JULY 19, 2001 -First Midwest Bancorp, Inc.(Nasdaq: FMBI) today reported net income for the second quarter ended June 30, 2001 increased to a record $20.3 million, or $.50 per diluted share, as compared to 2000's like quarter of $18.6 million, or $.45 per diluted share, representing an increase of 11.1% on a per diluted share basis. (First Call's consensus estimate of diluted earnings per share for the quarter was $.48.) Performance for the current quarter resulted in a record annualized return on average assets of 1.41% as compared to 1.29% for the like quarter of 2000 and an annualized return on average equity of 17.7% as compared to 19.6% for the 2000 quarter.
For the first six months of 2001, net income increased to a record $39.6 million, or $.97 per diluted share, as compared to 2000's $36.7 million, or $.89 per diluted share, representing an increase of 9.0% on a diluted per share basis. Performance for the first six months of 2001 resulted in a record annualized return on average assets of 1.39% as compared to 1.29% for the like period of 2000 and an annualized return on average equity of 17.4% as compared to 19.7% for the 2000 period.
The reduction in return on average equity for the second quarter and six months of 2001 is attributable to an approximate $58 million increase in total stockholders' equity at June 30, 2001 over the year-earlier level resulting primarily from the significant improvement in the market value of the available-for-sale securities portfolio. As a result of such improvement, book value per share as of June 30, 2001 was $11.29 vs. $9.63 a year ago, an increase of 17.2%. The increase in book value occurred while First Midwest continued to repurchase shares of its common stock with 1.2 million shares being purchased since June 30, 2000, of which 665,000 shares were purchased in second quarter 2001.
During second quarter 2001 First Midwest continued to successfully execute its strategy of quality loan growth coupled with the expansion of its core deposit base in order to expand market share, reduce reliance on higher-cost wholesale funding and improve net interest margin. Total average loans increased by 7.0% during the first half of 2001 as compared to the 2000 period, while total average deposits increased by 3.3% for the same period. Average wholesale funding, meanwhile, decreased by $165 million, or 13.1% during the first six months of 2001 as compared to 2000's like period.
As a result of the successful execution of loan and funding strategies, as well as the series of recent Fed interest rate reductions, the net interest margin in second quarter 2001 continued to improve increasing by 27 basis points to 4.04% over first quarter 2001 and by 20 basis points over second quarter 2000. Since troughing at 3.61% in fourth quarter 2000, the margin has increased for the past two quarters to 3.77% in first quarter 2001 and 4.04% in the current quarter.
The provision for loan losses for second quarter 2001 totaled $4.1 million and exceeded net charge-offs by $1.3 million while that for first half 2001 of $7.5 million exceeded net charge-offs by $1.6 million. As a result, even as the loan growth described above was realized, the reserve for loan losses at June 30, 2001 was maintained at the level as throughout 2000.
Credit quality ratios improved at June 30, 2001, reversing the increase in such ratios seen at March 31, 2001. Thus, the ratio of nonperforming loans to total loans at June 30, 2001 improved by 7 basis points to .61% from .68% at the prior quarter-end, while net loan charge-offs to average loans decreased to .34% from .39% for the quarters then ended. As a result of the provisioning described above and the reduced charge-offs, the ratio of the reserve for loan losses to nonperforming loans increased at June 30, 2001 to 228% and represented the highest coverage ratio in the last two plus years.
Total noninterest income for second quarter 2001 grew by 11.0% over 2000's like quarter, following a 15.1% increase in the first quarter of this year. The year-over-year improvement occurred primarily in the major categories of service charges on deposits and other service charges and fees. Additionally, corporate-owned life insurance income increased by $565,000 resulting from both higher outstanding balances and improved earnings rates.
Noninterest expenses for second quarter 2001 decreased 1.3% from 2000's like quarter and followed a decrease of 5.5% experienced in the first quarter 2001. Year-over-year improvement for both the second quarter and the six month period was realized in virtually all major categories of noninterest expense and resulted in efficiency ratios of 50.5% for second quarter 2001 and 50.9% for the first six months, both representing record levels of performance in this key ratio.
Reviewing the strong performance for the six months just ended, the first half's 9% growth in diluted earnings per share exceeded the earlier provided guidance that suggested growth in the 7% range and equaled the 9% that had been expected in the second half of 2001. First Midwest continues to expect a stronger second half fueled by continuing (albeit at a moderated rate) improvement in net interest margin translating into improvement in diluted earnings per share in the $0.01 - $0.02 range in both the third and fourth quarters over the preceding quarter. This expectation continues to be qualified by the economic, monetary and fiscal uncertainties confronting First Midwest and the economy generally as expressed in the earlier provided guidance.
With assets of approximately $6 billion, First Midwest is the largest independent and one of the overall largest banking companies in the highly attractive suburban Chicago banking market. As the premier independent suburban Chicago banking company, First Midwest provides commercial banking, trust, investment management and related financial services to a broad array of customers through 71 offices located in more than 40 communities primarily in northern Illinois.
Safe Harbor Statement
Statements made in this Press Release which are not purely historical are forward-looking statements with respect to the goals, plan objectives, intentions, expectations, financial condition, results of operations, future performance and business of First Midwest, including, without limitation, (i) loan and deposit growth, net interest income and margin, wholesale funding sources, provision and reserve for loan losses, nonperforming loan levels and net charge-offs, noninterest income and expenses, and diluted earnings per share growth rates for 2001, and (ii) statements preceded by, followed by or that include the words "may", "would", "could", "should", "expects", "projects", "anticipates", "believes", "estimates", "plans", "intends", "targets" or similar expressions.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond First Midwest's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following, in addition to those contained in First Midwest's reports on file with the Securities and Exchange Commission: general economic or industry conditions, nationally and/or in the communities in which First Midwest conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, deposit flows, cost of funds, demand for loan products, demand for financial services, competition, changes in the quality or composition of First Midwest's loan and investment portfolios, changes in accounting principals, policies or guidelines, other economic, competitive, governmental, regulatory and technical factors affecting First Midwest's operations, products, services and prices.
Accordingly, results actually achieved may differ materially from expected results in these statements. Forward-looking statements speak only as of the date they are made. First Midwest does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.
Financial Statements and Tables |
Accompanying this Press Release is the following unaudited financial data: |
o Operating Highlights and Stock Performance (1 page) o Condensed Consolidated Statements of Condition (1 page) o Condensed Consolidated Statements of Income (1 page) o Selected Quarterly Information (1 page) |
Press Release Available on Website |
This Press Release and the accompanying unaudited financial data, as well as certain additional unaudited Selected Financial Information (totaling 3 pages), are available through the "Investor Relations" section on First Midwest's website atwww.firstmidwest.com. |
First Midwest Bancorp, Inc. | Press Release Dated July 19, 2001 |
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Operating Highlights | Quarters Ended | Six Months Ended | |
Unaudited - Accuracy and Completeness Not Guaranteed | June 30, | June 30, | |
($s in thousands except per share data) | 2001 | | 2000 | | 2001 | | 2000 | |
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Net income | $ 20,291 | | $ 18,563 | | $ 39,615 | | $ 36,703 | |
Diluted earnings per share | $ 0.50 | | $ 0.45 | | $ 0.97 | | $ 0.89 | |
Cash earnings per share | $ 0.51 | | $ 0.47 | | $ 1.00 | | $ 0.92 | |
Return on average equity | 17.65% | | 19.62% | | 17.36% | | 19.73% | |
Return on average assets | 1.41% | | 1.29% | | 1.39% | | 1.29% | |
Net interest margin | 4.04% | | 3.84% | | 3.91% | | 3.90% | |
Efficiency ratio | 50.46% | | 54.00% | | 50.89% | | 54.30% | |
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Stock Performance | Quarters Ended | | Six Months Ended | |
Unaudited - Accuracy and Completeness Not Guaranteed | June 30, | | June 30, | |
| 2001 | | 2000 | | 2001 | | 2000 | |
Market Price, Quarters Ended | | | | | | | | | |
| Quarter End | $ 30.85 | | $ 23.25 | | $ 30.85 | | $ 23.25 | |
| High | $ 30.85 | | $ 25.31 | | $ 30.85 | | $ 26.44 | |
| Low | $ 27.51 | | $ 22.25 | | $ 25.81 | | $ 21.00 | |
Book value per share | $ 11.29 | | $ 9.63 | | $ 11.29 | | $ 9.63 | |
Market price to book value | 2.7 | x | 2.4 | x | 2.7 | x | 2.4 | x |
Market price to analysts' estimated 2001 earnings | 15.66 | x | N/A | | 15.66 | x | N/A | |
Quarterly dividend declared per share | $ 0.20 | | $ 0.18 | | $ 0.40 | | $ 0.36 | |
Shares outstanding, in thousands | 40,090 | | 41,055 | | 40,090 | | 41,055 | |
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First Midwest Bancorp, Inc. | Press Release Dated July 19, 2001 |
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Condensed Consolidated Statements of Condition |
Unaudited - Accuracy and Completeness Not Guaranteed | June 30, |
($s in thousands) | 2001 | | 2000 | |
Assets |
Cash and due from banks | $ 181,709 | | $ 186,943 | |
Funds sold and other short-term investments | 23,623 | | 26,261 | |
Securities available for sale | 1,843,645 | | 2,164,297 | |
Securities held to maturity, at amortized cost | 96,810 | | 45,558 | |
Loans | 3,372,754 | | 3,201,708 | |
Reserve for loan losses | (46,705) | (44,112) |
| Net loans | 3,326,049 | | 3,157,596 | |
Premises, furniture and equipment | 79,923 | | 80,788 | |
Investment in corporate owned life insurance | 131,576 | | 113,220 | |
Accrued interest receivable and other assets | 89,714 | | 134,322 | |
| Total assets | $ 5,773,049 | | $ 5,908,985 | |
Liabilities and Stockholders' Equity |
Deposits | $ 4,162,607 | $ 4,064,102 | |
Borrowed funds | 1,103,410 | 1,392,484 | |
Accrued interest payable and other liabilities | 54,319 | 57,240 | |
| Total liabilities | 5,320,336 | 5,513,826 | |
Common stock | 455 | 455 | |
Additional paid-in capital | 77,495 | 81,370 | |
Retained earnings | 511,312 | 464,606 | |
Accumulated other comprehensive income | (1,405) | (43,375) |
Treasury stock, at cost | (135,144) | (107,897) |
| Total stockholders' equity | 452,713 | 395,159 | |
| Total liabilities and stockholders' equity | $ 5,773,049 | $ 5,908,985 | |
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First Midwest Bancorp, Inc. | Press Release Dated July 19, 2001 |
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Condensed Consolidated Statements of Income | Quarters Ended | | Six Months Ended |
Unaudited - Accuracy and Completeness Not Guaranteed | June 30, | | June 30, |
($s in thousands except per share data) | 2001 | | 2000 | | 2001 | | 2000 |
Interest Income |
Loans | $ 67,850 | | $ 68,893 | | $ 137,062 | | $ 133,428 | |
Securities | 31,033 | | 35,597 | | 64,269 | | 70,302 | |
Other | 279 | | 227 | | 472 | | 460 | |
| Total interest income | 99,162 | | 104,717 | | 201,803 | | 204,190 | |
Interest Expense |
Deposits | 36,234 | | 36,471 | | 76,351 | | 71,040 | |
Borrowed funds | 12,563 | | 19,846 | | 28,199 | | 36,558 | |
| Total interest expense | 48,797 | | 56,317 | | 104,550 | | 107,598 | |
| Net interest income | 50,365 | | 48,400 | | 97,253 | | 96,592 | |
Provision for Loan Losses | 4,065 | | 2,512 | | 7,523 | | 4,474 | |
| Net interest income after provision for loan losses | 46,300 | | 45,888 | | 89,730 | | 92,118 | |
Noninterest Income |
Service charges on deposit accounts | 6,089 | | 5,496 | | 11,581 | | 10,485 | |
Trust and investment management fees | 2,648 | | 2,680 | | 5,321 | | 5,158 | |
Other service charges, commissions, and fees | 4,628 | | 4,244 | | 8,895 | | 7,782 | |
Mortgage banking revenues | -- | | 1 | | -- | | 406 | |
Corporate owned life insurance income | 2,019 | | 1,454 | | 4,287 | | 2,877 | |
Securities gains (losses), net | (2) | (49) | 702 | | (57) |
Other | 1,887 | | 1,733 | | 3,409 | | 3,616 | |
| Total noninterest income | 17,269 | | 15,559 | | 34,195 | | 30,267 | |
Noninterest Expense | | | | |
Salaries and employee benefits | 19,097 | | 19,593 | | 37,535 | | 39,132 | |
Occupancy expenses | 3,819 | | 3,299 | | 7,933 | | 6,766 | |
Equipment expenses | 1,889 | | 1,901 | | 3,843 | | 3,957 | |
Technology and related costs | 2,558 | | 2,718 | | 5,099 | | 5,716 | |
Other | 9,356 | | 9,689 | | 17,402 | | 18,762 | |
| Total noninterest expense | 36,719 | | 37,200 | | 71,812 | | 74,333 | |
Income before taxes | 26,850 | | 24,247 | | 52,113 | | 48,052 | |
Income tax expense | 6,559 | | 5,684 | | 12,498 | | 11,349 | |
| Net Income | $ 20,291 | | $ 18,563 | | $ 39,615 | | $ 36,703 | |
| Diluted Earnings Per Share | $ 0.50 | | $ 0.45 | | $ 0.97 | | $ 0.89 | |
| Cash Earnings Per Share | $ 0.51 | | $ 0.47 | | $ 1.00 | | $ 0.92 | |
| Dividends Declared Per Share | $ 0.20 | | $ 0.18 | | $ 0.40 | | $ 0.36 | |
First Midwest Bancorp, Inc. | Press Release Dated July 19, 2001 |
Selected Quarterly Information | | | | | | | | | |
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Key Financial Data | | | | | | | | | |
Unaudited - Accuracy and Completeness Not Guaranteed | Year to Date | | | | Quarters Ended | |
| | | 6/30/01 | 6/30/00 | | | 6/30/01 | 3/31/01 | 12/31/00 | 9/30/00 | 6/30/00 |
Diluted earnings per share | $ 0.97 | $ 0.89 | | | $ 0.50 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.45 |
Cash earnings per share | $ 1.00 | $ 0.92 | | | $ 0.51 | $ 0.49 | $ 0.49 | $ 0.49 | $ 0.47 |
Dividends per share | $ 0.40 | $ 0.36 | | | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.18 | $ 0.18 |
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Return on average equity | 17.36% | 19.73% | | | 17.65% | 17.06% | 18.25% | 19.10% | 19.62% |
Return on average assets | 1.39% | 1.29% | | | 1.41% | 1.36% | 1.31% | 1.30% | 1.29% |
Net interest margin | 3.91% | 3.90% | | | 4.04% | 3.77% | 3.61% | 3.66% | 3.84% |
Efficiency ratio | 50.89% | 54.30% | | | 50.46% | 51.35% | 51.77% | 51.96% | 54.00% |
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Asset Quality | | | | | | | | | |
Unaudited - Accuracy and Completeness Not Guaranteed | Year to Date | | | | Quarters Ended | |
($s in thousands) | 6/30/01 | 6/30/00 | | | 6/30/01 | 3/31/01 | 12/31/00 | 9/30/00 | 6/30/00 |
Nonaccrual loans | $ 20,518 | $ 19,838 | | | $ 20,518 | $ 22,453 | $ 19,849 | $ 20,313 | $ 19,838 |
Foreclosed real estate | 2,425 | 1,295 | | | 2,425 | 1,246 | 1,337 | 2,467 | 1,295 |
Loans past due 90 days and still accruing | 5,187 | 6,009 | | | 5,187 | 5,339 | 7,045 | 6,217 | 6,009 |
Nonperforming loans to loans | 0.61% | 0.62% | | | 0.61% | 0.68% | 0.61% | 0.62% | 0.62% |
Nonperforming assets to loans | | | | | | | | | |
| plus foreclosed real estate | 0.68% | 0.66% | | | 0.68% | 0.72% | 0.65% | 0.69% | 0.66% |
Reserve for loan losses to loans | 1.38% | 1.38% | | | 1.38% | 1.39% | 1.39% | 1.37% | 1.38% |
Reserve for loan losses to nonperforming loans | 228% | 222% | | | 228% | 202% | 227% | 222% | 222% |
Provision for loan losses | $ 7,523 | $ 4,474 | | | $ 4,065 | $ 3,458 | $ 1,995 | $ 2,625 | $ 2,512 |
Net loan charge-offs | 5,911 | 3,007 | | | 2,781 | 3,130 | 1,951 | 1,688 | 1,384 |
Net loan charge-offs to average loans | 0.36% | 0.20% | | | 0.34% | 0.39% | 0.23% | 0.21% | 0.18% |
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