Exhibit 99 | |||||||||
News Release | |||||||||
| First Midwest Bancorp | ||||||||
FOR IMMEDIATE RELEASE | CONTACTS: | Michael L. Scudder | |||||||
EVP, Chief Financial Officer | |||||||||
TRADED: | NASDAQ Global Select Market | (630) 875-7283 | |||||||
SYMBOL: | FMBI | www.firstmidwest.com | |||||||
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3rd QUARTER 2006 HIGHLIGHTS: | |||||||||
Net Income of $31.2 million, Up 15.5% vs. 3Q05 | |||||||||
EPS of $0.62, Up 5.1% vs. 3Q05 | |||||||||
Net Interest Margin of 3.69% vs. 3.70% for 2Q06 | |||||||||
Fee-Based Revenues Up 3.3%, or 13.2% Annualized vs. 2Q06 |
ITASCA, IL, OCTOBER 25, 2006 - First Midwest Bancorp, Inc. ("First Midwest")(NASDAQ NGS: FMBI) today reported net income for third quarter ended September 30, 2006 of $31.2 million, up 15.5% as compared to $27.0 million in third quarter 2005. For the first nine months of 2006, net income was $85.7 million, up 8.9% as compared to $78.7 million for the same period in 2005.
Operating results for the third quarter and first nine months of 2006 reflect stock option expense attributable to the adoption of FAS 123R of $737 thousand, or $450 thousand after tax, and $2.1 million, or $1.3 million after tax, respectively. In addition, performance for the first nine months of 2006 was negatively impacted by integration and related costs totaling $3.0 million, or $1.8 million after tax, recorded in the second quarter specific to the Bank Calumet acquisition.
Earnings per diluted share was $0.62 for third quarter ended September 30, 2006 and $1.74 for the first nine months of 2006, as compared to $0.59 for third quarter 2005 and $1.71 for the first nine months of 2005. Earnings per diluted share for both third quarter 2006 and the first nine months of 2006 were negatively impacted by the March 9, 2006 issuance of 4.4 million common shares in connection with the acquisition of Bank Calumet. Operating results include the impact of expensing stock options of
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$0.01 per diluted share in third quarter 2006 and $0.03 per diluted share in the first nine months of 2006. In addition, performance for the first nine months of 2006 was negatively impacted by $0.04 per diluted share, reflecting integration and related costs recorded in the second quarter specific to the Bank Calumet acquisition.
Third quarter 2006 performance resulted in an annualized return on average assets of 1.44%, as compared to 1.51% for third quarter 2005, and an annualized return on average equity of 17.1%, as compared to 19.8% for third quarter 2005.
"Third quarter performance reflects our ongoing efforts to build a solid foundation for future performance," said First Midwest President and Chief Executive Officer John O'Meara. "The integration of Bank Calumet into our organization continues on pace, with a focus on maximizing the sales and marketing opportunities within the Northwest Indiana marketplace. From a balance sheet perspective, plans to reduce the size of our securities portfolio are on track while corporate lending continues to show solid growth. Retail business remains stable in a very competitive operating environment. Finally, credit costs remain low, asset quality remains controlled, and our fee-based revenues continue to expand."
Earnings Guidance
O'Meara concluded, "Competition for both loans and deposits in the marketplace remains intense. Pricing pressures resulting from this competition combined with deposit balances shifting towards higher-yielding products and the persistence of a flat yield curve, continue to pressure margin performance across the industry. As we navigate the remainder of 2006, we expect the negative impact of margin contraction to be largely offset by solid corporate loan growth, low credit costs, increased fee-based revenues, and diligent expense management. Based on year-to-date results and our expectations for the fourth quarter of 2006, we currently expect full year diluted earnings per share to be in the range of $2.37 to $2.41."
Net Interest Margin
First Midwest's net interest income was $65.7 million for third quarter 2006, up 9.5% from $60.0 million for third quarter 2005. This increase was driven by a $1.2 billion increase in interest-earning
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assets relative to third quarter 2005, which was primarily due to the acquisition of Bank Calumet on March 31, 2006. Net interest margin for third quarter 2006 was 3.69%, stable in comparison to 3.70% in second quarter 2006, and reflected the offsetting impact of higher loan and securities yields and increased deposit and borrowing costs.
Increases in Loan Growth and Funding
Total loans grew to $5.1 billion as of September 30, 2006, an increase of 18.2% from September 30, 2005. This growth was due primarily to the addition of $676.4 million of loans acquired as part of the acquisition of Bank Calumet. Excluding indirect consumer lending, total loans as of September 30, 2006 increased 1.0%, or 4.0% annualized, in comparison to June 30, 2006. Corporate loans increased 1.7%, or 6.8% annualized, from June 30, 2006 reflecting growth in commercial, agricultural, and real estate construction lending.
Average deposits for third quarter 2006 totaled $6.2 billion, an increase of 20.2%, in comparison to third quarter 2005, primarily as a result of deposits obtained through the acquisition of Bank Calumet. In comparison to second quarter 2006, average deposits for third quarter 2006 were relatively unchanged, as growth in time deposit balances were offset by lower transactional deposit balances.
Noninterest Income and Expense
First Midwest's total noninterest income for third quarter 2006 was $27.0 million, up 32.4% from $20.4 million in third quarter 2005, primarily due to stronger fee-based revenues and higher revenue from corporate owned life insurance. For third quarter 2006, fee-based revenues totaled $23.9 million, up $5.4 million, or 29.2%, as compared to third quarter 2005, with approximately $3.4 million of this increase attributable to the acquisition of Bank Calumet, and the remainder reflecting higher service charges on deposit accounts and card-based revenues. Comparing sequential quarters, noninterest income was up 6.8% from second quarter 2006, primarily as the result of an increase in fee-based revenues. For third quarter 2006, fee-based revenues increased $771,000, or 3.3%, as compared to second quarter 2006, reflecting higher service charges, mortgage revenue, merchant processing and check printing fees, and trust income.
Total noninterest expense for third quarter 2006 was $49.1 million, up from $42.1 million in third
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quarter 2005. The majority of this increase is attributable to higher salaries, employee benefits, professional services, and occupancy expenses resulting from the acquisition of Bank Calumet.
First Midwest's efficiency ratio was 49.1% for third quarter 2006, as compared to 49.4% for third quarter 2005.
Stable Credit Quality
First Midwest's overall credit quality remained solid and relatively stable during third quarter 2006, with nonperforming assets as of September 30, 2006 totaling $21.5 million as compared to $19.6 million at June 30, 2006. Net charge-offs for third quarter 2006 remained low representing 0.21% of average loans, as compared to 0.16% for second quarter 2006. As of September 30, 2006, nonperforming assets, including foreclosed real estate, represented 0.42% of total loans plus foreclosed real estate, as compared to 0.39% as of June 30, 2006. As of September 30, 2006, the reserve for loan losses stood at 1.23% of total loans, as compared to 1.24% as of June 30, 2006, representing 357% of nonperforming loans.
Solid Capital Management
As of September 30, 2006, First Midwest's Total Risk Based Capital ratio was 11.6%, compared to 11.5% as of September 30, 2005. The Tier 1 Risk Based Capital ratio was 9.1%, compared to 10.4% as of September 30, 2005. First Midwest's Tier 1 Leverage Ratio was 7.0% compared to 8.2% as of September 30, 2005. First Midwest's tangible capital ratio, which represents the ratio of stockholders' equity to total assets excluding intangible assets, stood at 5.44%, down from 6.21% as of September 30, 2005. This decline was primarily due to an increase in goodwill and other intangible assets resulting from the acquisition of Bank Calumet on March 31, 2006. First Midwest has elected to suspend its stock repurchase program as it looks to rebuild tangible capital following the acquisition of Bank Calumet.
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
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Midwest provides the full range of both business and retail banking and trust and investment management services through 101 offices located in 62 communities, primarily in metropolitan Chicago. First Midwest was the only bank named byChicago magazine as one of the 25 best places to work in Chicago.
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 2005 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: |
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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 25, 2006 | |||||||||||||||||||||||||
Operating Highlights | ||||||||||||||||||||||||||
Unaudited | Quarters Ended | Nine Months Ended | ||||||||||||||||||||||||
(Amounts in thousands except per share data) | Sept. 30, 2006 | June 30, 2006 | Sept. 30, 2005 | Sept. 30, 2006 | Sept. 30, 2005 | |||||||||||||||||||||
Net income | $ | 31,215 | $ | 28,735 | $ | 27,030 | $ | 85,718 | $ | 78,747 | ||||||||||||||||
Diluted earnings per share | $ | 0.62 | $ | 0.57 | $ | 0.59 | $ | 1.74 | $ | 1.71 | ||||||||||||||||
Return on average equity | 17.09% | 16.50% | 19.76% | 17.05% | 19.59% | |||||||||||||||||||||
Return on average assets | 1.44% | 1.33% | 1.51% | 1.38% | 1.51% | |||||||||||||||||||||
Net interest margin | 3.69% | 3.70% | 3.88% | 3.71% | 3.89% | |||||||||||||||||||||
Efficiency ratio | 49.06% | 52.12% | 49.39% | 50.86% | 49.33% | |||||||||||||||||||||
Balance Sheet Highlights | ||||||||||||||||||||||||||
Unaudited | Quarters Ended | |||||||||||||||||||||||||
(Amounts in thousands except per share data) | Sept. 30, 2006 | June 30, 2006 | Sept. 30, 2005 | |||||||||||||||||||||||
Total assets | $ | 8,596,864 | $ | 8,692,828 | $ | 7,201,261 | ||||||||||||||||||||
Total loans | 5,069,554 | 5,041,345 | 4,287,266 | |||||||||||||||||||||||
Total deposits | 6,229,390 | 6,258,185 | 5,225,847 | |||||||||||||||||||||||
Stockholders' equity | 745,869 | 694,938 | 536,181 | |||||||||||||||||||||||
Book value per share | $ | 14.92 | $ | 13.92 | $ | 11.81 | ||||||||||||||||||||
Period end shares outstanding | 50,001 | 49,925 | 45,385 | |||||||||||||||||||||||
Stock Performance Data | ||||||||||||||||||||||||||
Unaudited | Quarters Ended | |||||||||||||||||||||||||
Sept. 30, 2006 | June 30, 2006 | Sept. 30, 2005 | ||||||||||||||||||||||||
Market Price: | ||||||||||||||||||||||||||
Quarter End | $ | 37.89 | $ | 37.08 | $ | 37.24 | ||||||||||||||||||||
High | $ | 38.89 | $ | 37.52 | $ | 39.18 | ||||||||||||||||||||
Low | $ | 34.42 | $ | 34.64 | $ | 34.43 | ||||||||||||||||||||
Quarter end price to book value | 2.5 | x | 2.7 | x | 3.2 | x | ||||||||||||||||||||
Quarter end price to consensus estimated 2006 earnings | 15.6 | x | 15.2 | x | N/A | |||||||||||||||||||||
Dividends declared per share | $ | 0.275 | $ | 0.275 | $ | 0.250 | ||||||||||||||||||||
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First Midwest Bancorp, Inc. | Press Release Dated October 25, 2006 | |||||||
Condensed Consolidated Statements of Condition | ||||||||
Unaudited(1) | September 30, | |||||||
(Amounts in thousands) | 2006 | 2005 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 182,484 | $ | 170,473 | ||||
Funds sold and other short-term investments | 9,516 | 8,109 | ||||||
Securities available for sale | 2,561,962 | 2,299,250 | ||||||
Securities held to maturity, at amortized cost | 98,745 | 49,118 | ||||||
Loans | 5,069,554 | 4,287,266 | ||||||
Reserve for loan losses | (62,370) | (56,283) | ||||||
Net loans | 5,007,184 | 4,230,983 | ||||||
Premises, furniture, and equipment | 122,662 | 96,292 | ||||||
Investment in corporate owned life insurance | 194,632 | 155,005 | ||||||
Goodwill and other intangible assets | 293,839 | 95,114 | ||||||
Accrued interest receivable and other assets | 125,840 | 96,917 | ||||||
Total assets | $ | 8,596,864 | $ | 7,201,261 | ||||
Liabilities and Stockholders' Equity | ||||||||
Deposits | $ | 6,229,390 | $ | 5,225,847 | ||||
Borrowed funds | 1,295,316 | 1,221,151 | ||||||
Long-term debt | 228,747 | 130,421 | ||||||
Accrued interest payable and other liabilities | 97,542 | 87,661 | ||||||
Total liabilities | 7,850,995 | 6,665,080 | ||||||
Common stock | 613 | 569 | ||||||
Additional paid-in capital | 203,860 | 60,749 | ||||||
Retained earnings | 807,039 | 752,446 | ||||||
Accumulated other comprehensive loss | (1,674) | (5,944) | ||||||
Treasury stock, at cost | (263,969) | (271,639) | ||||||
Total stockholders' equity | 745,869 | 536,181 | ||||||
Total liabilities and stockholders' equity | $ | 8,596,864 | $ | 7,201,261 | ||||
(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, 2005, 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, 2006.
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First Midwest Bancorp, Inc. | Press Release Dated October 25, 2006 | ||||||||||||||||||||
Condensed Consolidated Statements of Income | Quarters Ended | Nine Months Ended | |||||||||||||||||||
Unaudited(1) | September 30, | September 30, | |||||||||||||||||||
(Amounts in thousands except per share data) | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||
Interest Income | |||||||||||||||||||||
Loans | $ | 93,929 | $ | 69,482 | $ | 258,756 | $ | 193,422 | |||||||||||||
Securities | 32,374 | 24,664 | 91,833 | 72,992 | |||||||||||||||||
Other | 134 | 111 | 423 | 256 | |||||||||||||||||
Total interest income | 126,437 | 94,257 | 351,012 | 266,670 | |||||||||||||||||
Interest Expense | |||||||||||||||||||||
Deposits | 40,335 | 23,137 | 105,349 | 60,501 | |||||||||||||||||
Borrowed funds | 16,799 | 9,049 | 46,869 | 23,471 | |||||||||||||||||
Long-term debt | 3,630 | 2,090 | 9,698 | 6,197 | |||||||||||||||||
Total interest expense | 60,764 | 34,276 | 161,916 | 90,169 | |||||||||||||||||
Net interest income | 65,673 | 59,981 | 189,096 | 176,501 | |||||||||||||||||
Provision for loan losses | 2,715 | 1,200 | 6,364 | 6,150 | |||||||||||||||||
Net interest income after provision for loan losses | 62,958 | 58,781 | 182,732 | 170,351 | |||||||||||||||||
Noninterest Income | |||||||||||||||||||||
Service charges on deposit accounts | 10,971 | 7,752 | 29,442 | 21,891 | |||||||||||||||||
Trust and investment management fees | 3,736 | 3,255 | 10,603 | 9,534 | |||||||||||||||||
Other service charges, commissions, and fees | 5,471 | 4,881 | 14,773 | 13,093 | |||||||||||||||||
Card-based fees | 3,734 | 2,625 | 10,065 | 7,592 | |||||||||||||||||
Subtotal, fee-based revenues | 23,912 | 18,513 | 64,883 | 52,110 | |||||||||||||||||
Corporate owned life insurance income | 2,206 | 1,308 | 5,650 | 3,726 | |||||||||||||||||
Security gains, net | 509 | 292 | 898 | 2,837 | |||||||||||||||||
Other | 364 | 270 | 2,199 | 1,529 | |||||||||||||||||
Total noninterest income | 26,991 | 20,383 | 73,630 | 60,202 | |||||||||||||||||
Noninterest Expense | |||||||||||||||||||||
Salaries and employee benefits | 27,023 | 24,276 | 79,694 | 71,188 | |||||||||||||||||
Net occupancy expense | 5,482 | 3,990 | 15,146 | 12,278 | |||||||||||||||||
Equipment expense | 2,651 | 2,270 | 7,487 | 6,438 | |||||||||||||||||
Technology and related costs | 1,770 | 1,387 | 5,052 | 4,164 | |||||||||||||||||
Other | 12,192 | 10,185 | 37,441 | 29,057 | |||||||||||||||||
Total noninterest expense | 49,118 | 42,108 | 144,820 | 123,125 | |||||||||||||||||
Income before taxes | 40,831 | 37,056 | 111,542 | 107,428 | |||||||||||||||||
Income tax expense | 9,616 | 10,026 | 25,824 | 28,681 | |||||||||||||||||
Net Income | $ | 31,215 | $ | 27,030 | $ | 85,718 | $ | 78,747 | |||||||||||||
Diluted Earnings Per Share | $ | 0.62 | $ | 0.59 | $ | 1.74 | $ | 1.71 | |||||||||||||
Dividends Declared Per Share | $ | 0.275 | $ | 0.250 | $ | 0.825 | $ | 0.74 | |||||||||||||
Weighted Average Diluted Shares Outstanding | 50,315 | 45,761 | 49,158 | 45,940 | |||||||||||||||||
- 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 nine months ended September 30, 2005, 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 nine months ended September 30, 2006.
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First Midwest Bancorp, Inc. | Press Release Dated October 25, 2006 | ||||||||||||||||||||
Selected Quarterly Data | |||||||||||||||||||||
Unaudited | Year to Date | Quarters Ended | |||||||||||||||||||
(Amounts in thousands except per share data) | 9/30/06 | 9/30/05 | 9/30/06 | 6/30/06 | 3/31/05 | 12/31/05 | 9/30/05 | ||||||||||||||
Net interest income | $ | 189,096 | $ | 176,501 | $ | 65,673 | $ | 65,958 | $ | 57,465 | $ | 59,349 | $ | 59,981 | |||||||
Provision for loan losses | 6,364 | 6,150 | 2,715 | 2,059 | 1,590 | 2,780 | 1,200 | ||||||||||||||
Noninterest income | 73,630 | 60,202 | 26,991 | 25,267 | 21,372 | 14,410 | 20,383 | ||||||||||||||
Noninterest expense | 144,820 | 123,125 | 49,118 | 51,990 | 43,712 | 42,578 | 42,108 | ||||||||||||||
Net income | 85,718 | 78,747 | 31,215 | 28,735 | 25,768 | 22,630 | 27,030 | ||||||||||||||
Diluted earnings per share | $ | 1.74 | $ | 1.71 | $ | 0.62 | $ | 0.57 | $ | 0.55 | $ | 0.49 | $ | 0.59 | |||||||
Return on average equity | 17.05% | 19.59% | 17.09% | 16.50% | 17.64% | 16.58% | 19.76% | ||||||||||||||
Return on average assets | 1.38% | 1.51% | 1.44% | 1.33% | 1.44% | 1.25% | 1.51% | ||||||||||||||
Net interest margin | 3.71% | 3.89% | 3.69% | 3.70% | 3.76% | 3.79% | 3.88% | ||||||||||||||
Efficiency ratio | 50.86% | 49.33% | 49.06% | 52.12% | 51.51% | 49.76% | 49.39% | ||||||||||||||
Period end shares outstanding | 50,001 | 45,385 | 50,001 | 49,925 | 49,866 | 45,387 | 45,385 | ||||||||||||||
Book value per share | $ | 14.92 | $ | 11.81 | $ | 14.92 | $ | 13.92 | $ | 13.81 | $ | 11.99 | $ | 11.81 | |||||||
Dividends declared per share | $ | 0.825 | $ | 0.740 | $ | 0.275 | $ | 0.275 | $ | 0.275 | $ | 0.275 | $ | 0.250 | |||||||
Asset Quality Data | |||||||||||||||||||||
Unaudited | Year to Date | Quarters Ended | |||||||||||||||||||
(Amounts in thousands) | 9/30/06 | 9/30/05 | 9/30/06 | 6/30/06 | 3/31/06 | 12/31/05 | 9/30/05 | ||||||||||||||
Nonaccrual loans | $ | 17,459 | $ | 12,206 | $ | 17,459 | $ | 15,447 | $ | 17,178 | $ | 11,990 | $ | 12,206 | |||||||
Foreclosed real estate | 4,088 | 2,711 | 4,088 | 4,195 | 4,033 | 2,878 | 2,711 | ||||||||||||||
Loans past due 90 days and still accruing | 11,296 | 10,386 | 11,296 | 14,185 | 10,693 | 8,958 | 10,386 | ||||||||||||||
Nonperforming loans to loans | 0.34% | 0.28% | 0.34% | 0.31% | 0.34% | 0.28% | 0.28% | ||||||||||||||
Nonperforming assets to loans plus foreclosed real estate | 0.42% | 0.35% | 0.42% | 0.39% | 0.42% | 0.35% | 0.35% | ||||||||||||||
Nonperforming assets plus loans past due 90 days to loans plus foreclosed real estate | 0.65% | 0.59% | 0.65% | 0.67% | 0.63% | 0.55% | 0.59% | ||||||||||||||
Reserve for loan losses to loans | 1.23% | 1.31% | 1.23% | 1.24% | 1.24% | 1.31% | 1.31% | ||||||||||||||
Reserve for loan losses to nonperforming loans | 357% | 461% | 357% | 404% | 363% | 470% | 461% | ||||||||||||||
Provision for loan losses | $ | 6,364 | $ | 6,150 | $ | 2,715 | $ | 2,059 | $ | 1,590 | $ | 2,780 | $ | 1,200 | |||||||
Net loan charge-offs | 6,322 | 6,585 | 2,704 | 2,053 | 1,565 | 2,670 | 1,179 | ||||||||||||||
Net loan charge-offs to average loans | 0.18% | 0.21% | 0.21% | 0.16% | 0.15% | 0.25% | 0.11% | ||||||||||||||
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