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 | |||||||
REFLECT CONTINUED MOMENTUM | |||||||
3rd QUARTER 2005 HIGHLIGHTS: | |||||||
* | EPS Up 9.3% From 3Q04 | ||||||
* | Noninterest Income Up 8.3% vs. 3Q04 | ||||||
* | ROE of 19.8%; ROA of 1.51% | ||||||
* | Net Charge-Offs Linked Quarter Down 34% | ||||||
* | Efficiency Ratio of 49.39% | ||||||
ITASCA, IL, OCTOBER 26, 2005 -First Midwest Bancorp, Inc. ("First Midwest")(Nasdaq: FMBI) today reported net income for the quarter ended September 30, 2005 of $27.0 million, or $0.59 per diluted share. This represents an increase of 9.3% on a per diluted share basis as compared to 2004's third quarter earnings of $25.2 million, or $0.54 per diluted share. First Midwest's annualized return on average assets was 1.51% for third quarter 2005, as compared to 1.45% for third quarter 2004. Its annualized return on average equity was 19.8% for third quarter 2005, as compared to 19.0% for third quarter 2004.
For the first nine months of 2005, First Midwest's net income increased 8.2% on a per diluted share basis to $1.71 per diluted share, or $78.7 million, as compared to $1.58 per diluted share, or $73.9 million for the same period in 2004.
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"First Midwest's performance reflects the benefits of our continued sales momentum, solid credit quality and strong growth in fee-based business lines," said John M. O'Meara, President and Chief Executive Officer of First Midwest. "Our continued focus on expanding our core client relationships drives these benefits and creates long-term competitive advantages. This focus is particularly important as the banking industry looks to weather shorter-term margin pressures resulting from the sustained flat yield curve and adjusting consumer preferences for core deposit maturities."
Earnings Guidance
Confirming previous guidance, First Midwest expects full year 2005 earnings to be in the range of $2.28 to $2.32 per share.
Net Interest Margin
First Midwest's net interest income grew by 4.3% to $60.0 million in third quarter 2005 as compared to $57.5 million in 2004's third quarter.
Net interest margin for third quarter 2005 was 3.88%, down from 3.90% for third quarter 2004 and 3.93% for second quarter 2005. The decrease from second quarter 2005 to third quarter 2005 reflects the combined impact of the flat interest rate curve on asset yields and growth in higher costing certificates of deposit. This impact on net interest margin was partially offset by a $1.2 million contribution to net interest income resulting from the transfer of a nonperforming real estate construction credit to accruing status late in second quarter 2005.
Loan and Deposit Growth
Total loans as of September 30, 2005 were $4.3 billion, an increase of $64.1 million, or 1.5%, from June 30, 2005. Third quarter loan growth reflected increases of 4.4% in commercial real estate loans and 6.9% in real estate construction loans. Excluding discontinued indirect consumer loans, total loan growth for this period was 2.4%, or 9.6% annualized.
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Total average deposits for third quarter 2005 were $5.2 billion, an increase of 5.0% as compared to third quarter 2004, largely as the result of an increase of 5.1% in demand deposits and an increase of 19.1% in time deposits. In comparison to third quarter 2004, average demand deposits reflect comparatively higher levels of public and commercial deposits. Average time deposits for third quarter 2005 in comparison to third quarter 2004 reflect the combined impact of targeted sales promotion as well as higher levels of brokered deposits. The increase in time deposit balances was partially offset by decreases in savings, NOW and money market balances as consumer preferences changed in response to the higher level of interest rates and time deposit promotion.
Noninterest Income and Expense
Noninterest income in third quarter 2005 grew to $20.4 million, an 8.3% increase from third quarter 2004, despite a reduction of security gains in the current quarter. Increases during third quarter 2005 in trust and investment management fees of 12.9%, in card-based fees of 12.0%, and in other service charges, commissions and fees of 23.8% combined to increase noninterest income by 11.2%, exclusive of security gains.
First Midwest's total noninterest expense for third quarter 2005 increased $1.7 million to $42.1 million, an increase of 4.3% from third quarter 2004. This increase largely reflects higher salaries and employee benefits, merchant card expense, and equipment expense, partially offset by comparatively lower incentive-related compensation costs.
First Midwest's efficiency ratio was 49.4% for third quarter 2005, as compared to 49.6% for third quarter 2004 and 48.7% for second quarter 2005.
Credit Quality
First Midwest's overall credit quality remained close to the historically low levels realized as of June 30, 2005. Nonperforming assets as of September 30, 2005 increased by 4.1% to $14.9 million from $14.3 million at June 30, 2005. Net charge-offs for third quarter 2005 totaled $1.2 million, down 33.8% from second quarter 2005 and represented 0.11% of average loans, a reduction from 0.17% for second quarter 2005. As of September 30, 2005, nonperforming assets, including foreclosed real
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estate remained relatively flat at 0.35% of loans plus foreclosed real estate, following its historical low of 0.34% of loans plus foreclosed real estate as of June 30, 2005. As of September 30, 2005, the reserve for loan losses stood at 1.31% of total loans as compared to 1.33% as of June 30, 2005 and represented 461% of nonperforming loans.
Loans past due 90 days and still accruing totaled $10.4 million as of September 30, 2005, up from $7.5 million as of June 30, 2005.
Capital Management
As of September 30, 2005, First Midwest's Total Risk Based Capital ratio was 11.5%, compared to 11.7% as of September 30, 2004. The Tier 1 Risk Based Capital ratio was 10.4%, compared to 10.6% as of September 30, 2004. First Midwest's Tier 1 Leverage Ratio was 8.2% as of September 30, 2005 compared to 8.1% as of September 30, 2004. These ratios all exceeded the regulatory minimum levels to be considered a "well capitalized institution."
During the third quarter of 2005, First Midwest paid dividends of $0.25 per share, up 13.6% from 2004's third quarter dividend of $0.22 per share. In addition, during the third quarter of 2005, First Midwest repurchased 133,731 shares of its common stock at an average price of $37.41 per share. For the first nine months of 2005, First Midwest repurchased 856,951 shares of its common stock. As of September 30, 2005, approximately 2.1 million shares remained under First Midwest's existing repurchase authorization.
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 69 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.
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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 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.
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 October 26, 2005 | ||||||||||||||||||
Operating Highlights | Quarters Ended | Nine Months Ended | |||||||||||||||||
Unaudited | September 30, | September 30, | |||||||||||||||||
(Amounts in thousands except per share data) | 2005 | 2004 | 2005 | 2004 | |||||||||||||||
Net income | $ | 27,030 | $ | 25,172 | $ | 78,747 | $ | 73,916 | |||||||||||
Diluted earnings per share | $ | 0.59 | $ | 0.54 | $ | 1.71 | $ | 1.58 | |||||||||||
Return on average equity | 19.76% | 19.03% | 19.59% | 18.72% | |||||||||||||||
Return on average assets | 1.51% | 1.45% | 1.51% | 1.44% | |||||||||||||||
Net interest margin | 3.88% | 3.90% | 3.89% | 3.89% | |||||||||||||||
Efficiency ratio | 49.39% | 49.60% | 49.33% | 50.00% | |||||||||||||||
Balance Sheet Highlights | |||||||||||||||||||
Unaudited | |||||||||||||||||||
(Amounts in thousands except per share data) | Sept. 30, 2005 | Sept. 30, 2004 | |||||||||||||||||
Total assets | $ | 7,201,261 | $ | 6,931,563 | |||||||||||||||
Total loans | 4,287,266 | 4,204,026 | |||||||||||||||||
Total deposits | 5,225,847 | 4,955,322 | |||||||||||||||||
Stockholders' equity | 536,181 | 535,855 | |||||||||||||||||
Book value per share | $ | 11.81 | $ | 11.56 | |||||||||||||||
Period end shares outstanding | 45,385 | 46,370 | |||||||||||||||||
Stock Performance Data | Quarters Ended | Nine Months Ended | |||||||||||||||||
Unaudited | September 30, | September 30, | |||||||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||||||||
Market Price: | |||||||||||||||||||
Quarter End | $ | 37.24 | $ | 34.56 | $ | 37.24 | $ | 34.56 | |||||||||||
High | $ | 39.18 | $ | 35.62 | $ | 39.18 | $ | 36.03 | |||||||||||
Low | $ | 34.14 | $ | 32.25 | $ | 31.25 | $ | 31.13 | |||||||||||
Quarter end price to book value | 3.2 | x | 3.0 | x | 3.2 | x | 3.0 | x | |||||||||||
Quarter end price to consensus estimated 2005 earnings | 16.1 | x | N/A | 16.1 | x | N/A | |||||||||||||
Dividends declared per share | $ | 0.25 | $ | 0.22 | $ | 0.74 | $ | 0.66 | |||||||||||
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First Midwest Bancorp, Inc. | Press Release Dated October 26, 2005 | |||||||
Condensed Consolidated Statements of Condition | ||||||||
Unaudited(1) | September 30, | |||||||
(Amounts in thousands) | 2005 | 2004 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 170,473 | $ | 183,472 | ||||
Funds sold and other short-term investments | 8,109 | 8,613 | ||||||
Securities available for sale | 2,299,250 | 2,115,492 | ||||||
Securities held to maturity, at amortized cost | 49,118 | 54,743 | ||||||
Loans | 4,287,266 | 4,204,026 | ||||||
Reserve for loan losses | (56,283) | (56,707) | ||||||
Net loans | 4,230,983 | 4,147,319 | ||||||
Premises, furniture and equipment | 96,292 | 90,173 | ||||||
Investment in corporate owned life insurance | 155,005 | 150,165 | ||||||
Goodwill and other intangible assets | 95,114 | 97,125 | ||||||
Accrued interest receivable and other assets | 96,917 | 84,461 | ||||||
Total assets | $ | 7,201,261 | $ | 6,931,563 | ||||
Liabilities and Stockholders' Equity | ||||||||
Deposits | $ | 5,225,847 | $ | 4,955,322 | ||||
Borrowed funds | 1,221,151 | 1,252,338 | ||||||
Junior subordinated debentures | 130,421 | 129,250 | ||||||
Accrued interest payable and other liabilities | 87,661 | 58,798 | ||||||
Total liabilities | 6,665,080 | 6,395,708 | ||||||
Common stock | 569 | 569 | ||||||
Additional paid-in capital | 60,749 | 66,454 | ||||||
Retained earnings | 752,446 | 693,297 | ||||||
Accumulated other comprehensive (loss) income | (5,944) | 12,520 | ||||||
Treasury stock, at cost | (271,639) | (236,985) | ||||||
Total stockholders' equity | 536,181 | 535,855 | ||||||
Total liabilities and stockholders' equity | $ | 7,201,261 | $ | 6,931,563 | ||||
(1) While unaudited, the Condensed Consolidated Statements of Condition have been prepared in accordance with U.S. generally accepted accounting principles and, as of September 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 September 30, 2005.
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First Midwest Bancorp, Inc. | Press Release Dated October 26, 2005 | ||||||||||||||||||||||||||
Condensed Consolidated Statements of Income | Quarters Ended | Nine Months Ended | |||||||||||||||||||||||||
Unaudited(1) | September 30, | September 30, | |||||||||||||||||||||||||
(Amounts in thousands except per share data) | 2005 | 2004 | 2005 | 2004 | |||||||||||||||||||||||
Interest Income | |||||||||||||||||||||||||||
Loans | $ | 69,482 | $ | 56,918 | $ | 193,422 | $ | 166,066 | |||||||||||||||||||
Securities | 24,664 | 22,542 | 72,992 | 67,030 | |||||||||||||||||||||||
Other | 111 | 183 | 256 | 481 | |||||||||||||||||||||||
Total interest income | 94,257 | 79,643 | 266,670 | 233,577 | |||||||||||||||||||||||
Interest Expense | |||||||||||||||||||||||||||
Deposits | 23,137 | 14,668 | 60,501 | 41,893 | |||||||||||||||||||||||
Borrowed funds | 9,049 | 5,434 | 23,471 | 15,200 | |||||||||||||||||||||||
Junior subordinated debentures | 2,090 | 2,007 | 6,197 | 6,013 | |||||||||||||||||||||||
Total interest expense | 34,276 | 22,109 | 90,169 | 63,106 | |||||||||||||||||||||||
Net interest income | 59,981 | 57,534 | 176,501 | 170,471 | |||||||||||||||||||||||
Provision for Loan Losses | 1,200 | 3,240 | 6,150 | 7,573 | |||||||||||||||||||||||
Net interest income after provision for loan losses | 58,781 | 54,294 | 170,351 | 162,898 | |||||||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||||||
Service charges on deposit accounts | 7,752 | 7,873 | 21,891 | 21,155 | |||||||||||||||||||||||
Trust and investment management fees | 3,255 | 2,883 | 9,534 | 8,883 | |||||||||||||||||||||||
Other service charges, commissions, and fees | 4,881 | 3,942 | 13,093 | 11,408 | |||||||||||||||||||||||
Card-based fees | 2,625 | 2,344 | 7,592 | 6,839 | |||||||||||||||||||||||
Corporate owned life insurance income | 1,308 | 1,233 | 3,726 | 3,744 | |||||||||||||||||||||||
Security gains, net | 292 | 748 | 2,837 | 5,350 | |||||||||||||||||||||||
(Losses) on early extinguishments of debt | - | - | - | (2,653) | |||||||||||||||||||||||
Other | 270 | (210) | 1,529 | 579 | |||||||||||||||||||||||
Total noninterest income | 20,383 | 18,813 | 60,202 | 55,305 | |||||||||||||||||||||||
Noninterest Expense | |||||||||||||||||||||||||||
Salaries and employee benefits | 24,276 | 23,009 | 71,188 | 66,880 | |||||||||||||||||||||||
Net occupancy expense | 3,990 | 3,964 | 12,278 | 11,839 | |||||||||||||||||||||||
Equipment expenses | 2,270 | 2,105 | 6,438 | 6,605 | |||||||||||||||||||||||
Technology and related costs | 1,387 | 1,335 | 4,164 | 5,377 | |||||||||||||||||||||||
Other | 10,185 | 9,946 | 29,057 | 29,840 | |||||||||||||||||||||||
Total noninterest expense | 42,108 | 40,359 | 123,125 | 120,541 | |||||||||||||||||||||||
Income before taxes | 37,056 | 32,748 | 107,428 | 97,662 | |||||||||||||||||||||||
Income tax expense | 10,026 | 7,576 | 28,681 | 23,746 | |||||||||||||||||||||||
Net Income | $ | 27,030 | $ | 25,172 | $ | 78,747 | $ | 73,916 | |||||||||||||||||||
Diluted Earnings Per Share | $ | 0.59 | $ | 0.54 | $ | 1.71 | $ | 1.58 | |||||||||||||||||||
Dividends Declared Per Share | $ | 0.25 | $ | 0.22 | $ | 0.74 | $ | 0.66 | |||||||||||||||||||
Weighted Average Diluted Shares Outstanding | 45,761 | 46,851 | 45,940 | 46,926 | |||||||||||||||||||||||
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First Midwest Bancorp, Inc. | Press Release Dated October 26, 2005 | ||||||||||||||||||||||
Selected Quarterly Data | |||||||||||||||||||||||
Unaudited | Year to Date | Quarters Ended | |||||||||||||||||||||
(Amounts in thousands except per share data) | 9/30/05 | 9/30/04 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | 9/30/04 | ||||||||||||||||
Net interest income | $ | 176,501 | $ | 170,471 | $ | 59,981 | $ | 59,411 | $ | 57,109 | $ | 58,393 | $ | 57,534 | |||||||||
Provision for loan losses | 6,150 | 7,573 | 1,200 | 1,800 | 3,150 | 5,350 | 3,240 | ||||||||||||||||
Noninterest income | 60,202 | 55,305 | 20,383 | 19,673 | 20,146 | 24,076 | 18,813 | ||||||||||||||||
Noninterest expense | 123,125 | 120,541 | 42,108 | 41,245 | 39,772 | 42,797 | 40,359 | ||||||||||||||||
Net income | 78,747 | 73,916 | 27,030 | 26,510 | 25,207 | 25,220 | 25,172 | ||||||||||||||||
Diluted earnings per share | $ | 1.71 | $ | 1.58 | $ | 0.59 | $ | 0.58 | $ | 0.55 | $ | 0.54 | $ | 0.54 | |||||||||
Return on average equity | 19.59% | 18.72% | 19.76% | 19.85% | 19.14% | 18.57% | 19.03% | ||||||||||||||||
Return on average assets | 1.51% | 1.44% | 1.51% | 1.52% | 1.49% | 1.46% | 1.45% | ||||||||||||||||
Net interest margin | 3.89% | 3.89% | 3.88% | 3.93% | 3.87% | 3.94% | 3.90% | ||||||||||||||||
Efficiency ratio | 49.33% | 50.00% | 49.39% | 48.75% | 49.88% | 50.43% | 49.60% | ||||||||||||||||
Period end shares outstanding | 45,385 | 46,370 | 45,385 | 45,399 | 45,732 | 46,065 | 46,370 | ||||||||||||||||
Book value per share | $ | 11.81 | $ | 11.56 | $ | 11.81 | $ | 11.83 | $ | 11.35 | $ | 11.55 | $ | 11.56 | |||||||||
Dividends declared per share | $ | 0.74 | $ | 0.66 | $ | 0.25 | $ | 0.25 | $ | 0.24 | $ | 0.24 | $ | 0.22 | |||||||||
Asset Quality | |||||||||||||||||||||||
Unaudited | Year to Date | Quarters Ended | |||||||||||||||||||||
(Amounts in thousands) | 9/30/05 | 9/30/04 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | 9/30/04 | ||||||||||||||||
Nonaccrual loans | $ | 12,206 | $ | 22,267 | $ | 12,206 | $ | 11,419 | $ | 16,407 | $ | 19,197 | $ | 22,267 | |||||||||
Foreclosed real estate | 2,711 | 4,528 | 2,711 | 2,905 | 3,270 | 3,736 | 4,528 | ||||||||||||||||
Loans past due 90 days and still accruing | 10,386 | 3,108 | 10,386 | 7,463 | 4,625 | 2,658 | 3,108 | ||||||||||||||||
Nonperforming loans to loans | 0.28% | 0.53% | 0.28% | 0.27% | 0.39% | 0.46% | 0.53% | ||||||||||||||||
Nonperforming assets to loans plus foreclosed real estate | 0.35% | 0.64% | 0.35% | 0.34% | 0.47% | 0.55% | 0.64% | ||||||||||||||||
Nonperforming assets plus loans past due 90 days to loans plus foreclosed real estate | 0.59% | 0.71% | 0.59% | 0.52% | 0.58% | 0.62% | 0.71% | ||||||||||||||||
Reserve for loan losses to loans | 1.31% | 1.35% | 1.31% | 1.33% | 1.35% | 1.37% | 1.35% | ||||||||||||||||
Reserve for loan losses to nonperforming loans | 461% | 255% | 461% | 493% | 343% | 295% | 255% | ||||||||||||||||
Provision for loan losses | $ | 6,150 | $ | 7,573 | $ | 1,200 | $ | 1,800 | $ | 3,150 | $ | 5,350 | $ | 3,240 | |||||||||
Net loan charge-offs | 6,585 | 7,270 | 1,179 | 1,782 | 3,624 | 5,339 | 3,219 | ||||||||||||||||
Net loan charge-offs to average loans | 0.21% | 0.23% | 0.11% | 0.17% | 0.36% | 0.51% | 0.30% | ||||||||||||||||
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