Exhibit 99
News Release | ||||||
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| First Midwest Bancorp | ||||
FOR IMMEDIATE RELEASE | CONTACT: | Michael L. Scudder | ||||
EVP, Chief Financial Officer | ||||||
(630) 875-7283 | ||||||
TRADED: | Nasdaq | Steven H. Shapiro | ||||
SYMBOL: | FMBI | EVP, Corporate Secretary | ||||
(630) 875-7345 | ||||||
www.firstmidwest.com | ||||||
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1st QUARTER 2004 HIGHLIGHTS: | ||||||
* | EPS Increased 6.3% to $.51 vs. $.48 Last Year | |||||
* | Total Assets Up 13.2% Compared to 1st Quarter 2003 | |||||
* | 20% Improvement in Nonperforming Assets Compared to 4th Quarter 2003 | |||||
* | Commercial Loan Demand Strengthening | |||||
* | CoVest Banc Successfully Integrated | |||||
ITASCA, IL, APRIL 21, 2004 -First Midwest Bancorp, Inc. ("First Midwest")(Nasdaq: FMBI), the premier relationship-based franchise in the wealthy and growing suburbs of Chicago, today reported that its net income for first quarter ended March 31, 2004 increased by 6.3% on a per diluted share basis to $24.0 million, or $0.51 per diluted share, from 2003's first quarter of $22.7 million, or $0.48 per diluted share. Performance for first quarter 2004 resulted in an annualized return on average assets of 1.42%, as compared to 1.53% for first quarter 2003, and an annualized return on average equity of 18.0%, as compared to 18.4% for first quarter 2003.
"I am pleased to report another solid quarter of performance," First Midwest President and Chief Executive Officer John O'Meara stated. "Higher net interest income and lower credit costs were the main contributors
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to first quarter 2004 results. The higher level of net interest income in 2004 was fueled by earning asset growth, the result of the acquisition of CoVest Bancshares on December 31, 2003 and continued corporate loan growth. Having seamlessly integrated CoVest in February, we continue to focus on the tight control of our operating costs. Subsequent quarters should see the full impact of the cost savings that have been implemented at CoVest."
"Recent signs of further economic strength, as measured by economic output and employment statistics, are beginning to be reflected in a movement to higher interest rates," O'Meara said. "First Midwest's earnings are positively influenced by higher interest rates, which improve the spreads on commercial lending portfolios and slow prepayments on our mortgage-backed securities. With $38.4 million in unrealized securities gains as of March 31, 2004, First Midwest can be patient as it awaits the normalization of interest rates, which is widely anticipated later this year. We reaffirm our earlier 2004 diluted earnings per share guidance of $2.15 to $2.20."
Net Interest Margin
First Midwest's net interest income increased 9.1% to $56.9 million for first quarter 2004 as compared to $52.1 million for 2003's first quarter. This increase was due to earning asset growth of $685.1 million from first quarter 2003, which was primarily due to the acquisition of CoVest on December 31, 2003. Net interest margin for first quarter 2004 was 3.97%, down from 4.06% for first quarter 2003 and 4.01% for fourth quarter 2003.
Loan Growth and Funding
First Midwest's total loans of $4.1 billion at March 31, 2004 were 19.6% higher than at March 31, 2003 and 1.4% higher than at December 31, 2003. This growth from first quarter 2003 was due primarily to the acquisition of $531 million in loans from CoVest on December 31, 2003. On a linked-quarter basis, corporate loans, consisting of commercial, real estate commercial and real estate construction lending, increased 2.4%. We remain optimistic about the prospects for commercial and real estate commercial loan growth over the balance of the year. Encouragingly, the pipeline of loan proposals under review by First Midwest is up significantly compared with 2003.
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Total deposits for first quarter 2004 were $4.8 billion, as compared to $4.2 billion at March 31, 2003. The 14.1% increase is primarily attributed to deposits obtained through the acquisition of CoVest. Total deposits were relatively unchanged on a linked-quarter basis.
Noninterest Income and Expense
First Midwest's total noninterest income for first quarter 2004 was $17.4 million, a nominal decline of 2.1% from first quarter 2003. Excluding certain transactions, noninterest income increased 4.1%. In first quarter 2004, these transactions included security gains totaling $1.9 million and offsetting losses of $1.2 million from the early retirement of Federal Home Loan Bank advances, while in first quarter 2003, these transactions included the receipt of a $1.2 million litigation settlement and $0.5 million in gains realized from the sale of property. Noninterest income in 2004 reflected improved trust income and increased commissions earned from investment product sales offset by lower mortgage-related fee income. Service charge revenue increased in first quarter 2004 as compared to first quarter 2003 due to the CoVest acquisition, but this increase was offset by lower fees generated from accounts with insufficient funds and business deposit accounts.
Total noninterest expense for first quarter 2004 increased $3.4 million to $40.2 million, an increase of 9.1% from first quarter 2003. This increase was largely the result of greater expenses associated with operating the CoVest franchise, including higher employee-related expenses and increased net occupancy and equipment costs. First quarter 2004 expenses also included one-time costs of $650,000 attributed to the integration of CoVest and $491,000 of CoVest core deposit intangible amortization. First Midwest's efficiency ratio was 50.5% for first quarter 2004, up from 49.2% for first quarter 2003 primarily due to these higher noninterest expenses. First Midwest expects this ratio to improve as it fully integrates CoVest's operations in subsequent quarters.
Credit Quality
First Midwest's level of overall credit quality improved, with nonperforming assets decreasing by 18.7% in the
first quarter of 2004 as compared to year-end 2003. At March 31, 2004, nonperforming loans represented 0.45% of loans, compared with 0.57% at December 31, 2003, as $7.1 million of loans restructured in second quarter 2003 were returned to performing status. Nonperforming assets totaled $23.5 million at March 31, 2004, down from $28.9 million at December 31, 2003. Loans past due 90 days and still accruing totaled $7.0 million at March 31, 2004, up from $3.4 million as of December 31, 2003. This increase was due to a single manufacturing credit that First Midwest is working rigorously to remediate.
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Net charge-offs for first quarter 2004 improved to 0.17% of average loans, a 41.4% reduction from 0.29% for first quarter 2003. Consumer credit costs showed continued improvement, which should be sustained for the balance of the year. The ratio of the reserve for loan losses to total loans as of March 31, 2004 was 1.38%, while the provision for loan losses exceeded net charge-offs. The reserve for loan losses at March 31, 2004 represented 303% of nonperforming loans, which represents the highest coverage ratio over the past four quarters.
Capital Management
As of March 31, 2004 First Midwest's Total Risk Based Capital and Tier 1 Risk Based Capital ratios were 10.5% and 11.6%, respectively, exceeding the minimum "well capitalized" levels for regulatory purposes of 10.0% and 6.0%, respectively. First Midwest's Tier 1 Leverage Ratio as of such date was 8.0%, again exceeding the regulatory minimum range of 3.0% - 5.0% required to be considered a "well capitalized" institution.
First Midwest continued to repurchase its common stock during first quarter 2004. It purchased 162,100 shares at an average price of approximately $32.95 per share funded by cash on hand. As of March 31, 2004, approximately 1.4 million shares remained under First Midwest's existing repurchase authorization.
About the Company
First Midwest is the premier relationship-based banking franchise in the wealthy and growing suburban Chicago banking markets. 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 66 offices located in 49 communities, primarily in northeastern Illinois.
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Safe Harbor Statement under the Private Securities Act of 1995: Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning specific factors described in First Midwest Bancorp's 2003 Form 10-K and other filings with the U.S. Securities and Exchange Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. First Midwest does not intend to update this information and disclaims any legal obligation to the contrary. Historical information is not necessarily indicative of future performance.
Accompanying Financial Statements and Tables |
Accompanying this press release is the following unaudited financial information: |
* Operating Highlights, Balance Sheet Highlights and Stock Performance Data (1 page) * Condensed Consolidated Statements of Condition (1 page) * Condensed Consolidated Statements of Income (1 page) * Selected Quarterly Data and 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 atwww.firstmidwest.com. |
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First Midwest Bancorp, Inc. | Press Release Dated April 21, 2004 | ||||||||||
Operating Highlights | Quarters Ended | ||||||||||
Unaudited | March 31, | ||||||||||
(Amounts in thousands except per share data) | 2004 | 2003 | |||||||||
Net income | $ | 24,032 | $ | 22,730 | |||||||
Diluted earnings per share | $ | 0.51 | $ | 0.48 | |||||||
Return on average equity | 17.97% | 18.39% | |||||||||
Return on average assets | 1.42% | 1.53% | |||||||||
Net interest margin | 3.97% | 4.06% | |||||||||
Efficiency ratio | 50.53% | 49.16% | |||||||||
Balance Sheet Highlights | |||||||||||
Unaudited | |||||||||||
(Amounts in thousands except per share data) | Mar. 31, 2004 | Mar. 31, 2003 | |||||||||
Total assets | $ | 6,848,701 | $ | 6,050,593 | |||||||
Total loans | 4,114,667 | 3,439,281 | |||||||||
Total deposits | 4,788,812 | 4,195,468 | |||||||||
Stockholders' equity | 524,129 | 492,822 | |||||||||
Book value per share | $ | 11.26 | $ | 10.58 | |||||||
Period end shares outstanding | 46,537 | 46,582 | |||||||||
Stock Performance Data | Quarters Ended | ||||||||||
Unaudited | March 31, | ||||||||||
2004 | 2003 | ||||||||||
Market Price: | |||||||||||
Quarter End | $ | 34.22 | $ | 25.81 | |||||||
High | $ | 34.29 | $ | 28.12 | |||||||
Low | $ | 31.13 | $ | 24.89 | |||||||
Quarter end price to book value | 3.0 | x | 2.4 | x | |||||||
Quarter end price to consensus estimated 2004 earnings | 15.6 | x | N/A | ||||||||
Dividends declared per share | $ | 0.22 | $ | 0.19 | |||||||
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First Midwest Bancorp, Inc. | Press Release Dated April 21, 2004 | |||||||
Condensed Consolidated Statements of Condition | ||||||||
Unaudited(1) | March 31, | |||||||
(Amounts in thousands) | 2004 | 2003 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 159,339 | $ | 161,094 | ||||
Funds sold and other short-term investments | 13,190 | 19,035 | ||||||
Securities available for sale | 2,139,140 | 2,094,071 | ||||||
Securities held to maturity, at amortized cost | 66,208 | 77,878 | ||||||
Loans | 4,114,667 | 3,439,281 | ||||||
Reserve for loan losses | (56,628) | (48,020) | ||||||
Net loans | 4,058,039 | 3,391,261 | ||||||
Premises, furniture and equipment | 92,021 | 81,312 | ||||||
Investment in corporate owned life insurance | 147,688 | 142,658 | ||||||
Goodwill and other intangible assets | 98,190 | 16,397 | ||||||
Accrued interest receivable and other assets | 74,886 | 66,887 | ||||||
Total assets | $ | 6,848,701 | $ | 6,050,593 | ||||
Liabilities and Stockholders' Equity | ||||||||
Deposits | $ | 4,788,812 | $ | 4,195,468 | ||||
Borrowed funds | 1,323,532 | 1,277,895 | ||||||
Subordinated debt - trust preferred securities | 129,785 | - | ||||||
Accrued interest payable and other liabilities | 82,443 | 84,408 | ||||||
Total liabilities | 6,324,572 | 5,557,771 | ||||||
Common stock | 569 | 569 | ||||||
Additional paid-in capital | 67,812 | 70,418 | ||||||
Retained earnings | 663,906 | 608,055 | ||||||
Accumulated other comprehensive income | 22,909 | 43,239 | ||||||
Treasury stock, at cost | (231,067) | (229,459) | ||||||
Total stockholders' equity | 524,129 | 492,822 | ||||||
Total liabilities and stockholders' equity | $ | 6,848,701 | $ | 6,050,593 | ||||
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First Midwest Bancorp, Inc. | Press Release Dated April 21, 2004 | ||||||||||
Condensed Consolidated Statements of Income | Quarters Ended | ||||||||||
Unaudited(1) | March 31, | ||||||||||
(Amounts in thousands except per share data) | 2004 | 2003 | |||||||||
Interest Income | |||||||||||
Loans | $ | 54,645 | $ | 51,196 | |||||||
Securities | 22,644 | 23,120 | |||||||||
Other | 100 | 249 | |||||||||
Total interest income | 77,389 | 74,565 | |||||||||
Interest Expense | |||||||||||
Deposits | 13,669 | 15,169 | |||||||||
Borrowed funds | 4,817 | 7,255 | |||||||||
Subordinated debt - trust preferred securities | 2,014 | - | |||||||||
Total interest expense | 20,500 | 22,424 | |||||||||
Net interest income | 56,889 | 52,141 | |||||||||
Provision for Loan Losses | 1,928 | 2,530 | |||||||||
Net interest income after provision for loan losses | 54,961 | 49,611 | |||||||||
Noninterest Income | |||||||||||
Service charges on deposit accounts | 6,241 | 6,281 | |||||||||
Trust and investment management fees | 2,962 | 2,553 | |||||||||
Other service charges, commissions, and fees | 3,632 | 3,468 | |||||||||
Card-based fees | 2,146 | 2,081 | |||||||||
Corporate owned life insurance income | 1,267 | 1,296 | |||||||||
Security gains, net | 1,939 | 66 | |||||||||
(Losses) on early extinguishments of debt | (1,240) | - | |||||||||
Other | 438 | 2,019 | |||||||||
Total noninterest income | 17,385 | 17,764 | |||||||||
Noninterest Expense | |||||||||||
Salaries and employee benefits | 22,116 | 20,012 | |||||||||
Net occupancy expense | 4,103 | 3,679 | |||||||||
Equipment expenses | 2,242 | 1,912 | |||||||||
Technology and related costs | 2,035 | 2,331 | |||||||||
Other | 9,709 | 8,904 | |||||||||
Total noninterest expense | 40,205 | 36,838 | |||||||||
Income before taxes | 32,141 | 30,537 | |||||||||
Income tax expense | 8,109 | 7,807 | |||||||||
Net Income | $ | 24,032 | $ | 22,730 | |||||||
Diluted Earnings Per Share | $ | 0.51 | $ | 0.48 | |||||||
Dividends Declared Per Share | $ | 0.22 | $ | 0.19 | |||||||
Weighted Average Diluted Shares Outstanding | 46,953 | 47,229 | |||||||||
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First Midwest Bancorp, Inc. | Press Release Dated April 21, 2004 | ||||||||||||||||||||||
Selected Quarterly Data | |||||||||||||||||||||||
Unaudited | Quarters Ended | ||||||||||||||||||||||
(Amounts in thousands except per share data) | 3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||||||||
Net interest income | $ | 56,889 | $ | 52,962 | $ | 52,007 | $ | 52,644 | $ | 52,141 | |||||||||||||
Provision for loan losses | 1,928 | 3,075 | 2,660 | 2,540 | 2,530 | ||||||||||||||||||
Noninterest income | 17,385 | 19,419 | 15,772 | 21,215 | 17,764 | ||||||||||||||||||
Noninterest expense | 40,205 | 37,109 | 37,551 | 37,954 | 36,838 | ||||||||||||||||||
Net income | 24,032 | 24,199 | 21,202 | 24,647 | 22,730 | ||||||||||||||||||
Diluted earnings per share | $ | 0.51 | $ | 0.52 | $ | 0.45 | $ | 0.53 | $ | 0.48 | |||||||||||||
Return on average equity | 17.97% | 18.59% | 16.73% | 19.40% | 18.39% | ||||||||||||||||||
Return on average assets | 1.42% | 1.54% | 1.33% | 1.59% | 1.53% | ||||||||||||||||||
Net interest margin | 3.97% | 4.01% | 3.90% | 4.01% | 4.06% | ||||||||||||||||||
Efficiency ratio | 50.53% | 45.66% | 48.72% | 49.92% | 49.16% | ||||||||||||||||||
Period end shares outstanding | 46,537 | 46,581 | 46,551 | 46,534 | 46,582 | ||||||||||||||||||
Book value per share | $ | 11.26 | $ | 11.22 | $ | 10.94 | $ | 10.92 | $ | 10.58 | |||||||||||||
Dividends declared per share | $ | 0.22 | $ | 0.22 | $ | 0.19 | $ | 0.19 | $ | 0.19 | |||||||||||||
Asset Quality | |||||||||||||||||||||||
Unaudited | Quarters Ended | ||||||||||||||||||||||
(Amounts in thousands) | 3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||||||||
Nonaccrual loans | $ | 18,704 | $ | 15,930 | $ | 11,442 | $ | 9,423 | $ | 13,596 | |||||||||||||
Restructured loans | - | 7,137 | 7,219 | 7,328 | - | ||||||||||||||||||
Total nonperforming loans | $ | 18,704 | $ | 23,067 | $ | 18,661 | $ | 16,751 | $ | 13,596 | |||||||||||||
Foreclosed real estate | 4,779 | 5,812 | 3,842 | 4,576 | 4,044 | ||||||||||||||||||
Loans past due 90 days and still accruing | 6,977 | 3,384 | 4,806 | 5,723 | 7,497 | ||||||||||||||||||
Nonperforming loans to loans | 0.45% | 0.57% | 0.53% | 0.48% | 0.40% | ||||||||||||||||||
Nonperforming assets to loans plus foreclosed real estate | 0.57% | 0.71% | 0.64% | 0.61% | 0.51% | ||||||||||||||||||
Reserve for loan losses to loans | 1.38% | 1.39% | 1.41% | 1.40% | 1.40% | ||||||||||||||||||
Reserve for loan losses to nonperforming loans | 303% | 245% | 263% | 293% | 353% | ||||||||||||||||||
Provision for loan losses | $ | 1,928 | $ | 3,075 | $ | 2,660 | $ | 2,540 | $ | 2,530 | |||||||||||||
Net loan charge-offs | 1,704 | 3,055 | 2,620 | 1,436 | 2,439 | ||||||||||||||||||
Net loan charge-offs to average loans | 0.17% | 0.35% | 0.30% | 0.17% | 0.29% | ||||||||||||||||||
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