Exhibit 99
| News Release |
[LOGO]
|
First Midwest Bancorp, Inc.
| First Midwest Bancorp
300 Park Blvd., Suite 405
P.O. Box 459
Itasca, Illinois 60143-9768
(630) 875-7450 |
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 |
FIRST MIDWEST REPORTS STRONG SECOND QUARTER RESULTS
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| | 2nd QUARTER 2005 HIGHLIGHTS: |
| * | EPS of $0.58 Reflects 9.4% Increase Over 2nd Quarter 2004 |
| * | Annualized Commercial Loan Growth Up 19.6% vs. 1st Quarter 2005 |
| * | ROE of 19.9%; ROA 1.52% |
| * | Record Low Nonperforming Asset Levels |
| * | Efficiency Ratio Improved to 48.7% |
ITASCA, IL, JULY 27, 2005 - First Midwest Bancorp, Inc. ("First Midwest")(Nasdaq: FMBI), the premier relationship-based banking franchise in the growing Chicagoland banking market, today reported that its net income for second quarter ended June 30, 2005 increased by 9.4% on a per diluted share basis to $26.5 million, or $0.58 per diluted share, from 2004's second quarter of $24.7 million, or $0.53 per diluted share. Solid second quarter 2005 performance resulted in an annualized return on average assets of 1.52%, as compared to 1.44% for second quarter 2004, and an annualized return on average equity of 19.9%, as compared to 19.2% for second quarter 2004.
For the first six months of 2005, net income increased 7.7% on a per diluted share basis to $51.7 million, or $1.12 per diluted share, as compared to the same period in 2004 of $48.7 million, or $1.04 per diluted share.
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"I am extremely pleased with the results and operating performance during 2005's first half," said First Midwest President and Chief Executive Officer John O'Meara. "Corporate loan growth continues to show strong momentum, with middle market, agricultural and small business lending performance exceeding our expectations. Credit costs remain low, asset quality is at historically high levels and our fee-based revenues continue to improve. We have also succeeded in maintaining balanced margin performance as interest rates have evolved. We believe the momentum that we described in our last earnings call is manifesting itself in second quarter results. We remain very optimistic for the balance of the year in light of the trends which we are experiencing."
Earnings Guidance Reaffirmed
First Midwest expects its earnings to continue to benefit from the combination of continued low credit costs, improved fee revenues and controlled expenses. First Midwest's net interest margin should fluctuate within a narrow band through the remainder of 2005 as earning asset growth, liability mix, interest rate changes and competitive pricing pressures all work together to influence performance. First Midwest reaffirms its 2005 earnings guidance of $2.26 to $2.36 per diluted share. Results within this range are largely dependent upon net interest margin performance.
Improved Net Interest Margin
First Midwest's net interest income was $59.4 million for second quarter 2005, up 6.0% from $56.0 million for 2004's second quarter. Net interest margin for second quarter 2005 was 3.93%, up from 3.87% for first quarter 2005 and 3.81% for second quarter 2004. This result reflects the positive impact of comparatively higher short-term interest rates on loan yields and the lagging effects on repricing deposit costs, both of which were offset, in part, by the impact of a flattening yield curve on longer-term asset yields. Given the expectation for continued, measured Federal Reserve tightening and a relatively flat yield curve, quarterly margins for the second half of 2005 are anticipated to vary within the range of 3.85% to 3.90%.
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Increases in Loan Growth and Funding
Total loans of $4.2 billion as of June 30, 2005 increased 1.7% from March 31, 2005, or 6.8% annualized, a result of strong growth in commercial, agricultural and real estate commercial lending. Commercial loan growth accelerated from first quarter 2005, as evidenced by a 4.9% increase, or 19.6% annualized, in commercial loans outstanding as of June 30, 2005. First Midwest remains optimistic on continued commercial, agricultural and commercial real estate loan growth for the remainder of 2005.
Total loans of $4.2 billion at June 30, 2005 were 1.2% higher than at June 30, 2004. Increases in commercial, agricultural and real estate commercial loans were partly offset by First Midwest's decisions in 2004 to cease indirect consumer lending activities and to securitize a portion of its real estate 1-4 family loan portfolio. Excluding both indirect consumer and real estate 1-4 family loan categories from both periods, total loans as of June 30, 2005 were 6.1% higher than at June 30, 2004.
Average deposits for second quarter 2005 totaled $5.1 billion, an increase of 3.8% as compared to first quarter 2005 reflecting growth in time deposits as well as seasonal growth in transactional deposits. In comparison to second quarter 2004, average deposits increased 3.7%, as demand deposits grew 4.3% and time deposits grew 14.8%.
Noninterest Income and Expense
First Midwest's total noninterest income for second quarter 2005 was $19.7 million, up 3.0% from $19.1 million in second quarter 2004. Excluding $2.7 million in security gains and $1.4 million in debt extinguishment losses from second quarter 2004 performance, noninterest income increased 10.3% in second quarter 2005. This improvement reflects stronger performance in virtually all revenue categories.
Total noninterest expense for second quarter 2005 was $41.2 million, up from $40.0 million in second quarter 2004. This quarter's performance reflects comparatively higher salaries, employee benefits, professional services and occupancy expenses, partly offset by lower technology-related and other costs. First Midwest's efficiency ratio was 48.7% for second quarter 2005, improved from 49.9% for second quarter 2004.
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Credit Quality at Record Levels
First Midwest's overall credit quality continued to improve during second quarter 2005, with nonperforming assets as of June 30, 2005 decreasing by 27.2% to $14.3 million from $19.7 million at March 31, 2005. Net charge-offs for second quarter 2005 improved to 0.17% of average loans, a 52.8% reduction from 0.36% for first quarter 2005. As of June 30, 2005, nonperforming assets, including foreclosed real estate, represented an historical low of 0.34% of loans. As of June 30, 2005, the reserve for loan losses stood at 1.33% of total loans as compared to 1.35% as of March 31, 2005 and represented 493% of nonperforming loans.
Loans past due 90 days and still accruing totaled $7.5 million as of June 30, 2005, up from $4.6 million as of March 31, 2005. This linked quarter decline in nonperforming assets together with the increase in loans past due 90 days and still accruing reflected the transfer to accruing status of a $3.6 million nonperforming real estate construction credit acquired from CoVest Banc in 2003. This credit was returned to accruing status as First Midwest expects its remediation efforts to result in recoveries in excess of book balance over the next three quarters.
Solid Capital Management
As of June 30, 2005, First Midwest's Total Risk Based Capital ratio was 11.4%, compared to 11.5% as of June 30, 2004. The Tier 1 Risk Based Capital ratio was 10.3%, compared to 10.4%, as of June 30, 2004. First Midwest's Tier 1 Leverage Ratio of 8.1% as of June 30, 2005 improved from 8.0% as of June 30, 2004.
During the second quarter of 2005, First Midwest declared a dividend of $0.25 per share, up 13.6% from 2004's second quarter dividend of $0.22 per share. During the first six months of 2005, First Midwest also repurchased 723,220 shares of its common stock at an average price of approximately $34.53 per share funded by cash on hand. During second quarter 2005, First Midwest extended its stock repurchase authorization to include an additional 2.5 million shares. As a result, approximately 2.2 million shares remained under First Midwest's existing repurchase authorization as of June 30, 2005.
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About First Midwest
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 67 offices located in 49 communities, primarily in northeastern Illinois. First Midwest is the 2004 recipient of the Illinois Bank Community Service Award and was honored byChicago magazine in its October 2004 issue as one of the 25 best places to work in Chicago, the only bank to be so honored.
Safe Harbor Statement
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 2004 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.
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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 July 27, 2005 |
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Operating Highlights | Quarters Ended | Six Months Ended | |
Unaudited | June 30, | June 30, | |
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(Amounts in thousands except per share data) | 2005 | | 2004 | | 2005 | | 2004 | |
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Net income | $ | 26,510 | | $ | 24,712 | | $ | 51,717 | | $ | 48,744 | |
Diluted earnings per share | $ | 0.58 | | $ | 0.53 | | $ | 1.12 | | $ | 1.04 | |
Return on average equity | 19.85% | | 19.17% | | 19.50% | | 18.56% | |
Return on average assets | 1.52% | | 1.44% | | 1.51% | | 1.43% | |
Net interest margin | 3.93% | | 3.81% | | 3.90% | | 3.89% | |
Efficiency ratio | 48.75% | | 49.89% | | 49.30% | | 50.21% | |
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Balance Sheet Highlights | |
Unaudited | |
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(Amounts in thousands except per share data) | Jun. 30, 2005 | | Jun. 30, 2004 | |
| | | | |
Total assets | $ | 7,073,141 | | $ | 6,834,285 | |
Total loans | 4,223,168 | | 4,173,229 | |
Total deposits | 5,088,429 | | 4,892,602 | |
Stockholders' equity | 537,084 | | 506,901 | |
Book value per share | $ | 11.83 | | $ | 10.87 | |
Period end shares outstanding | 45,399 | | 46,632 | |
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Stock Performance Data | Quarters Ended | | Six Months Ended | |
Unaudited | June 30, | | June 30, | |
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| 2005 | | 2004 | | 2005 | | 2004 | |
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Market Price: | | | | | | | | |
Quarter End | $ | 35.08 | | $ | 35.21 | | $ | 35.08 | | $ | 35.21 | |
High | $ | 36.45 | | $ | 36.03 | | $ | 36.75 | | $ | 36.03 | |
Low | $ | 31.25 | | $ | 32.33 | | $ | 31.25 | | $ | 31.13 | |
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Quarter end price to book value | | 3.0 | x | | 3.2 | x | 3.0 | x | 3.2 | x |
Quarter end price to consensus estimated 2005 earnings | | 15.3 | x | | N/A | | | 15.3 | x | | N/A | |
Dividends declared per share | $ | 0.25 | | $ | 0.22 | | $ | 0.49 | | $ | 0.44 | |
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First Midwest Bancorp, Inc. | Press Release Dated July 27, 2005 |
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Condensed Consolidated Statements of Condition |
Unaudited(1) | June 30, |
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(Amounts in thousands) | 2005 | | 2004 | |
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Assets |
Cash and due from banks | $ | 138,719 | $ | 160,501 | |
Funds sold and other short-term investments | 7,248 | | 9,375 | |
Securities available for sale | 2,264,616 | | 2,062,707 | |
Securities held to maturity, at amortized cost | 67,503 | | 61,679 | |
Loans | 4,223,168 | | 4,173,229 | |
Reserve for loan losses | (56,262) | | (56,686) | |
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| Net loans | 4,166,906 | | 4,116,543 | |
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Premises, furniture and equipment | 92,002 | | 91,477 | |
Investment in corporate owned life insurance | 153,777 | | 148,932 | |
Goodwill and other intangible assets | 95,647 | | 97,658 | |
Accrued interest receivable and other assets | 86,723 | | 85,413 | |
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| Total assets | $ | 7,073,141 | $ | 6,834,285 | |
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Liabilities and Stockholders' Equity |
Deposits | $ | 5,088,429 | $ | 4,892,602 | |
Borrowed funds | 1,249,814 | 1,250,753 | |
Subordinated debt - trust preferred securities | 132,707 | 127,547 | |
Accrued interest payable and other liabilities | 65,107 | 56,482 | |
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| Total liabilities | 6,536,057 | 6,327,384 | |
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Common stock | 569 | 569 | |
Additional paid-in capital | 61,477 | 66,760 | |
Retained earnings | 736,779 | 678,342 | |
Accumulated other comprehensive income (loss) | 9,344 | (10,543) | |
Treasury stock, at cost | (271,085) | (228,227) | |
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| Total stockholders' equity | 537,084 | 506,901 | |
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| Total liabilities and stockholders' equity | $ | 7,073,141 | $ | 6,834,285 | |
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(1) While unaudited, the Condensed Consolidated Statements of Condition have been prepared in accordance with U.S. generally accepted accounting principles and, as of June 30, 2004, are derived from quarterly financial statements on which Ernst & Young LLP, First Midwest's independent external auditor, has rendered a Quarterly Review Report; Ernst & Young is currently in the process of completing their Quarterly Review Report for the quarter ended June 30, 2005.
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First Midwest Bancorp, Inc. | Press Release Dated July 27, 2005 |
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Condensed Consolidated Statements of Income | Quarters Ended | | Six Months Ended | |
Unaudited(1) | June 30, | | June 30, | |
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(Amounts in thousands except per share data) | 2005 | | 2004 | | 2005 | | 2004 | |
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Interest Income | |
Loans | $ | 64,325 | | $ | 54,503 | | $ | 123,940 | | $ | 109,148 | |
Securities | 24,844 | | 21,844 | | 48,328 | | 44,488 | |
Other | 89 | | 198 | | 145 | | 298 | |
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| Total interest income | 89,258 | | 76,545 | | 172,413 | | 153,934 | |
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Interest Expense | |
Deposits | 20,204 | | 13,556 | | 37,364 | | 27,225 | |
Borrowed funds | 7,599 | | 4,949 | | 14,422 | | 9,766 | |
Subordinated debt - trust preferred securities | 2,044 | | 1,992 | | 4,107 | | 4,006 | |
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| Total interest expense | 29,847 | | 20,497 | | 55,893 | | 40,997 | |
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| Net interest income | 59,411 | | 56,048 | | 116,520 | | 112,937 | |
Provision for Loan Losses | 1,800 | | 2,405 | | 4,950 | | 4,333 | |
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| Net interest income after provision for loan losses | 57,611 | | 53,643 | | 111,570 | | 108,604 | |
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Noninterest Income | |
Service charges on deposit accounts | 7,446 | | 7,041 | | 14,139 | | 13,282 | |
Trust and investment management fees | 3,150 | | 3,038 | | 6,279 | | 6,000 | |
Other service charges, commissions, and fees | 4,402 | | 3,834 | | 8,212 | | 7,466 | |
Card-based fees | 2,620 | | 2,349 | | 4,967 | | 4,495 | |
Corporate owned life insurance income | 1,223 | | 1,244 | | 2,418 | | 2,511 | |
Security (losses) gains, net | (16) | | 2,663 | | 2,545 | | 4,602 | |
(Losses) on early extinguishments of debt | - | | (1,413) | | - | | (2,653) | |
Other | 848 | | 351 | | 1,259 | | 789 | |
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| Total noninterest income | 19,673 | | 19,107 | | 39,819 | | 36,492 | |
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Noninterest Expense | | | | |
Salaries and employee benefits | 24,059 | | 21,755 | | 46,912 | | 43,871 | |
Net occupancy expense | 4,027 | | 3,772 | | 8,288 | | 7,875 | |
Equipment expenses | 2,073 | | 2,258 | | 4,168 | | 4,500 | |
Technology and related costs | 1,396 | | 2,007 | | 2,777 | | 4,042 | |
Other | 9,690 | | 10,185 | | 18,872 | | 19,894 | |
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| Total noninterest expense | 41,245 | | 39,977 | | 81,017 | | 80,182 | |
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Income before taxes | 36,039 | | 32,773 | | 70,372 | | 64,914 | |
Income tax expense | 9,529 | | 8,061 | | 18,655 | | 16,170 | |
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| Net Income | $ | 26,510 | | $ | 24,712 | | $ | 51,717 | | $ | 48,744 | |
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| Diluted Earnings Per Share | $ | 0.58 | | $ | 0.53 | | $ | 1.12 | | $ | 1.04 | |
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| Dividends Declared Per Share | $ | 0.25 | | $ | 0.22 | | $ | 0.49 | | $ | 0.44 | |
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| Weighted Average Diluted Shares Outstanding | 45,900 | | 46,976 | | 46,031 | | 46,964 | |
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- While unaudited, the Condensed Consolidated Statements of Income have been prepared in accordance with U.S. generally accepted accounting principles and, for the quarter and six months ended June 30, 2004, are derived from quarterly financial statements on which Ernst & Young LLP, First Midwest's independent external auditor, has rendered a Quarterly Review Report; Ernst & Young is currently in the process of completing their Quarterly Review Report for the quarter and six months ended June 30, 2005.
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First Midwest Bancorp, Inc. | Press Release Dated July 27, 2005 |
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Selected Quarterly Data | | | | | | | | | |
Unaudited | Year to Date | | | | Quarters Ended | |
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(Amounts in thousands except per share data) | 6/30/05 | 6/30/04 | | | 6/30/05 | 3/31/05 | 12/31/04 | 9/30/04 | 6/30/04 |
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Net interest income | $ | 116,520 | $ | 112,937 | | | $ | 59,411 | $ | 57,109 | $ | 58,393 | $ | 57,534 | $ | 56,048 |
Provision for loan losses | 4,950 | 4,333 | | | 1,800 | 3,150 | 5,350 | 3,240 | 2,405 |
Noninterest income | 39,819 | 36,492 | | | 19,673 | 20,146 | 24,076 | 18,813 | 19,107 |
Noninterest expense | 81,017 | 80,182 | | | 41,245 | 39,772 | 42,797 | 40,359 | 39,977 |
Net income | 51,717 | 48,744 | | | 26,510 | 25,207 | 25,220 | 25,172 | 24,712 |
Diluted earnings per share | $ | 1.12 | $ | 1.04 | | | $ | 0.58 | $ | 0.55 | $ | 0.54 | $ | 0.54 | $ | 0.53 |
Return on average equity | 19.50% | 18.56% | | | 19.85% | 19.14% | 18.57% | 19.03% | 19.17% |
Return on average assets | 1.51% | 1.43% | | | 1.52% | 1.49% | 1.46% | 1.45% | 1.44% |
Net interest margin | 3.90% | 3.89% | | | 3.93% | 3.87% | 3.94% | 3.90% | 3.81% |
Efficiency ratio | 49.30% | 50.21% | | | 48.75% | 49.88% | 50.43% | 49.60% | 49.89% |
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Period end shares outstanding | 45,399 | 46,632 | | | 45,399 | 45,732 | 46,065 | 46,370 | 46,632 |
Book value per share | $ | 11.83 | $ | 10.87 | | | $ | 11.83 | $ | 11.35 | $ | 11.55 | $ | 11.56 | $ | 10.87 |
Dividends declared per share | $ | 0.49 | $ | 0.44 | | | $ | 0.25 | $ | 0.24 | $ | 0.24 | $ | 0.22 | $ | 0.22 |
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Asset Quality | | | | | | | | | |
Unaudited | Year to Date | | | Quarters Ended |
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(Amounts in thousands) | 6/30/05 | 6/30/04 | | | 6/30/05 | 3/31/05 | 12/31/04 | 9/30/04 | 6/30/04 |
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Nonaccrual loans | $ | 11,419 | $ | 24,621 | | | $ | 11,419 | $ | 16,407 | $ | 19,197 | $ | 22,267 | $ | 24,621 |
Foreclosed real estate | 2,905 | 4,602 | | | 2,905 | 3,270 | 3,736 | 4,528 | 4,602 |
Loans past due 90 days and still accruing | 7,463 | 4,160 | | | 7,463 | 4,625 | 2,658 | 3,108 | 4,160 |
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Nonperforming loans to loans | 0.27% | 0.59% | | | 0.27% | 0.39% | 0.46% | 0.53% | 0.59% |
Nonperforming assets to loans plus foreclosed real estate | 0.34% | 0.70% | | | 0.34% | 0.47% | 0.55% | 0.64% | 0.70% |
Nonperforming assets plus loans past due 90 days to loans plus foreclosed real estate | 0.52% | 0.80% | | | 0.52% | 0.58% | 0.62% | 0.71% | 0.80% |
Reserve for loan losses to loans | 1.33% | 1.36% | | | 1.33% | 1.35% | 1.37% | 1.35% | 1.36% |
Reserve for loan losses to nonperforming loans | 493% | 230% | | | 493% | 343% | 295% | 255% | 230% |
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Provision for loan losses | $ | 4,950 | $ | 4,333 | | | $ | 1,800 | $ | 3,150 | $ | 5,350 | $ | 3,240 | $ | 2,405 |
Net loan charge-offs | 5,406 | 4,051 | | | 1,782 | 3,624 | 5,339 | 3,219 | 2,347 |
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Net loan charge-offs to average loans | 0.26% | 0.20% | | | 0.17% | 0.36% | 0.51% | 0.30% | 0.23% |
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