Exhibit 99
News Release | |||||||
|
| 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 | |||||||
AND FOURTH QUARTER 2005 RESULTS | |||||||
* | Record Net Income: $101.4 Million for Full Year 2005 | ||||||
* | Solid Profitability: ROAA of 1.44% and ROAE of 18.8% for 2005 | ||||||
* | Solid Corporate Loan Growth: Up 8.2% vs. 4Q04 | ||||||
* | Improved Fee-Based Revenue: Up 9.6% vs. 4Q04 | ||||||
* | Lower Nonperforming Assets: 35.2% Decrease vs. 4Q04 | ||||||
* | Restructuring Lowers 4Q05 Performance: EPS Down $0.05 vs. 4Q04 |
ITASCA, IL, JANUARY 25, 2006 -First Midwest Bancorp, Inc. ("First Midwest")(Nasdaq: FMBI) today reported net income for the quarter ended December 31, 2005 of $22.6 million, or $0.49 per diluted share, as compared to $25.2 million, or $0.54 per diluted share, for fourth quarter 2004. Fourth quarter 2005 results included $6.2 million in securities losses and $679,000 in employee severance costs, and fourth quarter 2004 included $2.9 million in securities gains. Excluding these items, net income for fourth quarter 2005 would have increased 18.0% on a per diluted share basis to $26.8 million, or $0.59 per diluted share, from net income of $23.5 million, or $0.50 per diluted share, in fourth quarter 2004. First Midwest's annualized return on average assets was 1.25% for fourth quarter 2005 as compared to 1.46% for fourth quarter 2004. Annualized return on average equity was 16.6% for fourth quarter 2005 as compared to 18.6% for fourth quarter 2004.
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First Midwest's net income for 2005 increased 4.2% on a per diluted share basis to a record $101.4 million, or $2.21 per diluted share, from net income of $99.1 million, or $2.12 per diluted share, in 2004. In 2005, First Midwest's return on average assets was 1.44% as compared to 1.45% in 2004. First Midwest's return on average equity was 18.8% in 2005 as compared to 18.7% in 2004.
"2005 represented another strong year for First Midwest as measured by the fundamentals of profitability, asset formation, fee-based revenue growth and asset quality," commented First Midwest President and Chief Executive Officer, John M. O'Meara. "We, at the same time, continue to build the future strength of our franchise through measured balance sheet restructuring, a modest rationalization of our personnel complement and a meaningful return to distribution enhancement through the proposed acquisition of more than thirty Chicagoland branches in 2006."
2006 Outlook
"The synergies which our 2005 activities have created put us in a strong position to continue our forward momentum in 2006," O'Meara said. "We are especially encouraged by the values inherent in the Bank Calumet franchise represented by a strong depository base coupled with a marketplace with that has strong loan expansion potential. While the challenges of a flat yield curve offer little prospect of reversing in the near term, and the competitive response in the marketplace remains vigorous, we expect 2006 earnings to be in the range of $2.42 to $2.50 per diluted share. This estimate takes into account a decrease of $0.04 per diluted share for the expensing of stock options, which is expected to be offset in part by an increase of $0.03 per diluted share resulting from the Bank Calumet acquisition anticipated to begin in the second quarter of 2006."
Net Interest Margin
First Midwest's net interest income grew 1.6% to $59.3 million in fourth quarter 2005 as compared to $58.4 million in 2004's fourth quarter.
Net interest margin for fourth quarter 2005 was 3.79%, down from 3.94% for fourth quarter 2004 and 3.88% for third quarter 2005. The decrease from third quarter 2005 to fourth quarter 2005 reflects the combined impact of the flat interest rate curve on interest-earning asset yields and increasing liability costs as the deposit mix shifted in response to higher interest rates and competitive pricing.
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Loan and Deposit Growth
First Midwest's total loans as of December 31, 2005 grew 4.1% to $4.3 billion, an increase of $170.9 million as compared to December 31, 2004, as growth in corporate and real estate 1-4 family lending of $312.1 million offset planned declines in consumer indirect lending of $134.5 million. Excluding consumer indirect lending, total loans would have been up 7.9%. Corporate loans, representing commercial, real estate commercial, real estate construction and agricultural lending, increased 8.2% from December 31, 2004.
Total average deposits for fourth quarter 2005 were $5.1 billion, an increase of 3.6% as compared to fourth quarter 2004, largely as the result of a 20.1% increase in time deposits. Average time deposits for fourth quarter 2005 in comparison to fourth quarter 2004 reflect the combined impact of targeted sales promotions and 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 promotions.
Noninterest Income and Expense
Noninterest income in fourth quarter 2005 was $14.4 million as compared to $24.1 million in 2004. Fourth quarter 2005 included $6.2 million in securities losses, and fourth quarter 2004 included $2.9 million in securities gains and $1.7 million in gains related to the sale of various assets. Excluding this activity from both periods, noninterest income would have totaled $20.6 million for fourth quarter 2005, an increase of 5.4% as compared to fourth quarter 2004, reflecting solid growth in fee-based revenues. Fee-based revenues totaled $18.5 million for fourth quarter 2005, an increase of 9.6% as compared to fourth quarter 2004. For full year 2005, noninterest income totaled $74.6 million, as compared to $79.4 million for full year 2004. Fee-based revenues for full year 2005 totaled $70.6 million, an increase of 8.4% as compared to full year 2004.
Noninterest expense for fourth quarter 2005 totaled $42.6 million as compared to $42.8 million for fourth quarter 2004. Fourth quarter 2005 results included $679,000 in severance costs related to certain employees electing accelerated retirement. For full year 2005, noninterest expense totaled $165.7 million as compared to $163.3 million in 2004. First Midwest's efficiency ratio was 49.8% for fourth quarter 2005 as compared to 50.4% for fourth quarter 2004 and 49.4% for third quarter 2005.
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Credit Quality
As of December 31, 2005, nonperforming assets, including foreclosed real estate, represented 0.35% of loans plus foreclosed real estate as compared to 0.55% as of December 31, 2004, and approximated First Midwest's historical low of 0.34% as of June 30, 2005. Nonperforming assets as of December 31, 2005 totaled $14.9 million, down 35.2% from $22.9 million as of December 31, 2004. Loans past due 90 days and still accruing interest totaled $9.0 million as of December 31, 2005, down from $10.4 million as of September 30, 2005 and up from $2.7 million as of December 31, 2004.
Net charge-offs for the full year 2005 totaled $9.3 million, or 0.22% of average loans, down $3.4 million, or 26.6% from full year 2004. As of December 31, 2005, the reserve for loan losses stood at 1.31% of total loans and represented 470% of nonperforming loans.
Capital Management
As of December 31, 2005, First Midwest's Total Risk Based Capital ratio was 11.76%, compared to 11.52% as of December 31, 2004. The Tier 1 Risk Based Capital ratio was 10.72%, compared to 10.45% as of December 31, 2004. First Midwest's Tier 1 Leverage Ratio was 8.16% as of December 31, 2005 and as of December 31, 2004.
During the fourth quarter of 2005, First Midwest paid dividends of $0.275 per share, up 14.6% from $0.24 per share for the fourth quarter 2004. In 2005, First Midwest repurchased 857,444 shares of its common stock at an average price of $34.98 per share, substantially all of which were purchased prior to September 30, 2005. As of December 31, 2005, approximately 2.1 million shares remained under First Midwest's existing repurchase authorization. First Midwest anticipates suspension of share repurchase activity in 2006, as it looks to rebuild tangible capital given the expected cash acquisition of Bank Calumet in early second quarter 2006.
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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 70 offices located in 50 communities, primarily in northeastern Illinois. First Midwest was the only bank named byChicago magazine as one of the 25 best places to work in Chicago.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release that are forward-looking statements are subject to various risks and uncertainties, including those factors described in First Midwest's 2004 Form 10-K and other filings with the U.S. Securities and Exchange Commission. In addition, these forward-looking statements are also subject to the timing of the closing of the acquisition, the impact of mark-to-market adjustments required by purchase accounting and issues that may arise in connection with the integration of Bank Calumet, including the inability to achieve expected cost savings within the expected time frame as well as market conditions that may impact the pricing of securities to be offered by the Company to finance the acquisition. 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 January 25, 2006 | ||||||||||||||||||
Operating Highlights | Quarters Ended | Years Ended | |||||||||||||||||
Unaudited | December 31, | December 31, | |||||||||||||||||
(Amounts in thousands except per share data) | 2005 | 2004 | 2005 | 2004 | |||||||||||||||
Net income | $ | 22,630 | $ | 25,220 | $ | 101,377 | $ | 99,136 | |||||||||||
Diluted earnings per share | $ | 0.49 | $ | 0.54 | $ | 2.21 | $ | 2.12 | |||||||||||
Return on average equity | 16.58% | 18.57% | 18.83% | 18.68% | |||||||||||||||
Return on average assets | 1.25% | 1.46% | 1.44% | 1.45% | |||||||||||||||
Net interest margin | 3.79% | 3.94% | 3.87% | 3.91% | |||||||||||||||
Efficiency ratio | 49.76% | 50.43% | 49.44% | 50.11% | |||||||||||||||
Balance Sheet Highlights | |||||||||||||||||||
Unaudited | |||||||||||||||||||
(Amounts in thousands except per share data) | Dec. 31, 2005 | Dec. 31, 2004 | |||||||||||||||||
Total assets | $ | 7,210,151 | $ | 6,863,381 | |||||||||||||||
Total loans | 4,306,191 | 4,135,278 | |||||||||||||||||
Total deposits | 5,147,832 | 4,905,378 | |||||||||||||||||
Stockholders' equity | 544,068 | 532,038 | |||||||||||||||||
Book value per share | $ | 11.99 | $ | 11.55 | |||||||||||||||
Period end shares outstanding | 45,387 | 46,065 | |||||||||||||||||
Stock Performance Data | Quarters Ended | Years Ended | |||||||||||||||||
Unaudited | December 31, | December 31, | |||||||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||||||||
Market Price: | |||||||||||||||||||
Quarter End | $ | 35.06 | $ | 36.29 | $ | 35.06 | $ | 36.29 | |||||||||||
High | $ | 39.25 | $ | 38.30 | $ | 39.25 | $ | 38.30 | |||||||||||
Low | $ | 34.66 | $ | 33.70 | $ | 31.25 | $ | 31.13 | |||||||||||
Quarter end price to book value | 2.9 | x | 3.1 | x | 2.9 | x | 3.1 | x | |||||||||||
Quarter end price to consensus estimated 2005 earnings | 15.9 | x | N/A | 15.9 | x | N/A | |||||||||||||
Dividends declared per share | $ | 0.275 | $ | 0.240 | $ | 1.015 | $ | 0.900 | |||||||||||
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First Midwest Bancorp, Inc. | Press Release Dated January 25, 2006 | |||||||
Condensed Consolidated Statements of Condition | ||||||||
December 31, | ||||||||
(Amounts in thousands) | 2005 | 2004 | ||||||
Unaudited(1) | Audited | |||||||
Assets | ||||||||
Cash and due from banks | $ | 157,070 | $ | 119,880 | ||||
Funds sold and other short-term investments | 5,908 | 4,581 | ||||||
Securities available for sale | 2,286,630 | 2,179,438 | ||||||
Securities held to maturity, at amortized cost | 56,772 | 64,576 | ||||||
Loans | 4,306,191 | 4,135,278 | ||||||
Reserve for loan losses | (56,393) | (56,718) | ||||||
Net loans | 4,249,798 | 4,078,560 | ||||||
Premises, furniture and equipment | 95,345 | 89,003 | ||||||
Investment in corporate owned life insurance | 156,441 | 151,359 | ||||||
Goodwill and other intangible assets | 95,997 | 96,712 | ||||||
Accrued interest receivable and other assets | 106,190 | 79,272 | ||||||
Total assets | $ | 7,210,151 | $ | 6,863,381 | ||||
Liabilities and Stockholders' Equity | ||||||||
Deposits | $ | 5,147,832 | $ | 4,905,378 | ||||
Borrowed funds | 1,294,532 | 1,218,332 | ||||||
Junior subordinated debentures | 130,092 | 129,294 | ||||||
Accrued interest payable and other liabilities | 93,627 | 78,339 | ||||||
Total liabilities | 6,666,083 | 6,331,343 | ||||||
Common stock | 569 | 569 | ||||||
Additional paid-in capital | 60,760 | 61,918 | ||||||
Retained earnings | 762,575 | 707,435 | ||||||
Accumulated other comprehensive (loss) income | (8,284) | 10,115 | ||||||
Treasury stock, at cost | (271,552) | (247,999) | ||||||
Total stockholders' equity | 544,068 | 532,038 | ||||||
Total liabilities and stockholders' equity | $ | 7,210,151 | $ | 6,863,381 | ||||
(1)While unaudited, the 2005 Condensed Consolidated Statement of Condition has been prepared in accordance with U.S. generally accepted accounting principles and is derived from the 2005 financial statements upon which Ernst & Young LLP, First Midwest's independent external auditor, will issue an audit opinion upon completion of their audit procedures.
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First Midwest Bancorp, Inc. | Press Release Dated January 25, 2006 | |||||||||||||||||||||
Condensed Consolidated Statements of Income | Quarters Ended | Years Ended | ||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
(Amounts in thousands except per share data) | 2005 | 2004 | 2005 | 2004 | ||||||||||||||||||
Unaudited(1) | Unaudited(1) | Unaudited(2) | Audited | |||||||||||||||||||
Interest Income | ||||||||||||||||||||||
Loans | $ | 73,503 | $ | 59,033 | $ | 266,925 | $ | 225,099 | ||||||||||||||
Securities | 26,412 | 22,580 | 99,404 | 89,610 | ||||||||||||||||||
Other | 115 | 152 | 371 | 633 | ||||||||||||||||||
Total interest income | 100,030 | 81,765 | 366,700 | 315,342 | ||||||||||||||||||
Interest Expense | ||||||||||||||||||||||
Deposits | 26,174 | 15,539 | 86,675 | 57,432 | ||||||||||||||||||
Borrowed funds | 12,363 | 5,780 | 35,834 | 20,980 | ||||||||||||||||||
Junior subordinated debentures | 2,144 | 2,053 | 8,341 | 8,066 | ||||||||||||||||||
Total interest expense | 40,681 | 23,372 | 130,850 | 86,478 | ||||||||||||||||||
Net interest income | 59,349 | 58,393 | 235,850 | 228,864 | ||||||||||||||||||
Provision for Loan Losses | 2,780 | 5,350 | 8,930 | 12,923 | ||||||||||||||||||
Net interest income after provision for loan losses | 56,569 | 53,043 | 226,920 | 215,941 | ||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||
Service charges on deposit accounts | 8,308 | 7,682 | 30,199 | 28,837 | ||||||||||||||||||
Trust and investment management fees | 3,059 | 3,005 | 12,593 | 11,888 | ||||||||||||||||||
Other service charges, commissions, and fees | 4,479 | 3,739 | 17,572 | 15,147 | ||||||||||||||||||
Card-based fees | 2,615 | 2,413 | 10,207 | 9,252 | ||||||||||||||||||
Subtotal, fee-based revenues | 18,461 | 16,839 | 70,571 | 65,124 | ||||||||||||||||||
Corporate owned life insurance income | 1,437 | 1,195 | 5,163 | 4,939 | ||||||||||||||||||
Security (losses) gains, net | (6,152) | 2,872 | (3,315) | 8,222 | ||||||||||||||||||
(Losses) on early extinguishments of debt | - | - | - | (2,653) | ||||||||||||||||||
Other | 664 | 3,170 | 2,193 | 3,749 | ||||||||||||||||||
Total noninterest income | 14,410 | 24,076 | 74,612 | 79,381 | ||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||
Salaries and employee benefits | 23,991 | 25,291 | 95,179 | 92,171 | ||||||||||||||||||
Net occupancy expense | 4,340 | 4,176 | 16,618 | 16,015 | ||||||||||||||||||
Equipment expenses | 2,117 | 2,242 | 8,555 | 8,847 | ||||||||||||||||||
Technology and related costs | 1,513 | 1,304 | 5,677 | 6,681 | ||||||||||||||||||
Other | 10,617 | 9,784 | 39,674 | 39,624 | ||||||||||||||||||
Total noninterest expense | 42,578 | 42,797 | 165,703 | 163,338 | ||||||||||||||||||
Income before taxes | 28,401 | 34,322 | 135,829 | 131,984 | ||||||||||||||||||
Income tax expense | 5,771 | 9,102 | 34,452 | 32,848 | ||||||||||||||||||
Net Income | $ | 22,630 | $ | 25,220 | $ | 101,377 | $ | 99,136 | ||||||||||||||
Diluted Earnings Per Share | $ | 0.49 | $ | 0.54 | $ | 2.21 | $ | 2.12 | ||||||||||||||
Dividends Declared Per Share | $ | 0.275 | $ | 0.240 | $ | 1.015 | $ | 0.900 | ||||||||||||||
Weighted Average Diluted Shares Outstanding | 45,753 | 46,664 | 45,893 | 46,860 | ||||||||||||||||||
- While unaudited, the Condensed Consolidated Statements of Income for the quarters ended December 31, 2005 and 2004 have been prepared in accordance with U.S. generally accepted accounting principles and are derived from quarterly financial statements.
- While unaudited, the Condensed Consolidated Statement of Income for the year ended December 31, 2005 has been prepared in accordance with U.S. generally accepted accounting principles and is derived from the 2005 financial statements upon which Ernst & Young LLP, First Midwest's independent external auditor, will issue an audit opinion upon completion of their audit procedures.
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First Midwest Bancorp, Inc. | Press Release Dated January 25, 2006 | ||||||||||||||||||||||
Selected Quarterly Data | |||||||||||||||||||||||
Unaudited | Year to Date | Quarters Ended | |||||||||||||||||||||
(Amounts in thousands except per share data) | 12/31/05 | 12/31/04 | 12/31/05 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | ||||||||||||||||
Net interest income | $ | 235,850 | $ | 228,864 | $ | 59,349 | $ | 59,981 | $ | 59,411 | $ | 57,109 | $ | 58,393 | |||||||||
Provision for loan losses | 8,930 | 12,923 | 2,780 | 1,200 | 1,800 | 3,150 | 5,350 | ||||||||||||||||
Noninterest income | 74,612 | 79,381 | 14,410 | 20,383 | 19,673 | 20,146 | 24,076 | ||||||||||||||||
Noninterest expense | 165,703 | 163,338 | 42,578 | 42,108 | 41,245 | 39,772 | 42,797 | ||||||||||||||||
Net income | 101,377 | 99,136 | 22,630 | 27,030 | 26,510 | 25,207 | 25,220 | ||||||||||||||||
Diluted earnings per share | $ | 2.21 | $ | 2.12 | $ | 0.49 | $ | 0.59 | $ | 0.58 | $ | 0.55 | $ | 0.54 | |||||||||
Return on average equity | 18.83% | 18.68% | 16.58% | 19.76% | 19.85% | 19.14% | 18.57% | ||||||||||||||||
Return on average assets | 1.44% | 1.45% | 1.25% | 1.51% | 1.52% | 1.49% | 1.46% | ||||||||||||||||
Net interest margin | 3.87% | 3.91% | 3.79% | 3.88% | 3.93% | 3.87% | 3.94% | ||||||||||||||||
Efficiency ratio | 49.44% | 50.11% | 49.76% | 49.39% | 48.75% | 49.88% | 50.43% | ||||||||||||||||
Period end shares outstanding | 45,387 | 46,065 | 45,387 | 45,385 | 45,399 | 45,732 | 46,065 | ||||||||||||||||
Book value per share | $ | 11.99 | $ | 11.55 | $ | 11.99 | $ | 11.81 | $ | 11.83 | $ | 11.35 | $ | 11.55 | |||||||||
Dividends declared per share | $ | 1.015 | $ | 0.900 | $ | 0.275 | $ | 0.250 | $ | 0.250 | $ | 0.240 | $ | 0.240 | |||||||||
Asset Quality | |||||||||||||||||||||||
Unaudited | Year to Date | Quarters Ended | |||||||||||||||||||||
(Amounts in thousands) | 12/31/05 | 12/31/04 | 12/31/05 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | ||||||||||||||||
Nonaccrual loans | $ | 11,990 | $ | 19,197 | $ | 11,990 | $ | 12,206 | $ | 11,419 | $ | 16,407 | $ | 19,197 | |||||||||
Foreclosed real estate | 2,878 | 3,736 | 2,878 | 2,711 | 2,905 | 3,270 | 3,736 | ||||||||||||||||
Loans past due 90 days and still accruing | 8,958 | 2,658 | 8,958 | 10,386 | 7,463 | 4,625 | 2,658 | ||||||||||||||||
Nonperforming loans to loans | 0.28% | 0.46% | 0.28% | 0.28% | 0.27% | 0.39% | 0.46% | ||||||||||||||||
Nonperforming assets to loans plus foreclosed real estate | 0.35% | 0.55% | 0.35% | 0.35% | 0.34% | 0.47% | 0.55% | ||||||||||||||||
Nonperforming assets plus loans past due 90 days to loans plus foreclosed real estate | 0.55% | 0.62% | 0.55% | 0.59% | 0.52% | 0.58% | 0.62% | ||||||||||||||||
Reserve for loan losses to loans | 1.31% | 1.37% | 1.31% | 1.31% | 1.33% | 1.35% | 1.37% | ||||||||||||||||
Reserve for loan losses to nonperforming loans | 470% | 295% | 470% | 461% | 493% | 343% | 295% | ||||||||||||||||
Provision for loan losses | $ | 8,930 | $ | 12,923 | $ | 2,780 | $ | 1,200 | $ | 1,800 | $ | 3,150 | $ | 5,350 | |||||||||
Net loan charge-offs | 9,255 | 12,609 | 2,670 | 1,179 | 1,782 | 3,624 | 5,339 | ||||||||||||||||
Net loan charge-offs to average loans | 0.22% | 0.30% | 0.25% | 0.11% | 0.17% | 0.36% | 0.51% | ||||||||||||||||
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