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July 28, 2009
First Midwest Bancorp, Inc.
Keefe, Bruyette & Woods
Investment Conference
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Forward Looking Statements
This presentation may contain, and during this presentation our management may
make statements that may constitute “forward-looking statements” within the
meaning of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are not historical facts but instead represent
only our beliefs regarding future events, many of which, by their nature, are
inherently uncertain and outside our control. Forward-looking statements include,
among other things, statements regarding our financial performance, business
prospects, future growth and operating strategies, objectives and results. Actual
results, performance or developments could differ materially from those expressed
or implied by these forward-looking statements. Important factors that could cause
actual results to differ from those in the forward-looking statements include, among
others, those discussed in our Annual Report on Form 10-K and other reports filed
with the Securities and Exchange Commission, copies of which will be made
available upon request. With the exception of fiscal year end information previously
included in our Annual Report on Form 10-K, the information contained herein is
unaudited. Except as required by law, we undertake no duty to update the contents
of this presentation after the date of this presentation.
make statements that may constitute “forward-looking statements” within the
meaning of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are not historical facts but instead represent
only our beliefs regarding future events, many of which, by their nature, are
inherently uncertain and outside our control. Forward-looking statements include,
among other things, statements regarding our financial performance, business
prospects, future growth and operating strategies, objectives and results. Actual
results, performance or developments could differ materially from those expressed
or implied by these forward-looking statements. Important factors that could cause
actual results to differ from those in the forward-looking statements include, among
others, those discussed in our Annual Report on Form 10-K and other reports filed
with the Securities and Exchange Commission, copies of which will be made
available upon request. With the exception of fiscal year end information previously
included in our Annual Report on Form 10-K, the information contained herein is
unaudited. Except as required by law, we undertake no duty to update the contents
of this presentation after the date of this presentation.
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First Midwest Presentation Index
Who We Are
Credit Quality
Capital Position
Core Profitability
Why First Midwest
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Who We Are
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A Premier Bank | Premier Bank For Commercial | Premier Bank For Retail |
$7.8 billion assets $5.8 billion deposits -66% core transactional -90% Suburban Chicago $5.3 billion loans $3.6 billion trust/investment aum | Seven business lines 25,000 commercial 1,600 trust relationships 200 relationship managers Tenured sales force and market presence | 225,000 retail relationships 1,000 bankers 95 offices 8th largest distribution network in MSA 13th in Chicago MSA Market Share |
Source: Commercial and retail relationships obtained from Harte Hanks Marketing Customer Information System as of 3/31/09
A Premier Community Bank
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90% Suburban Chicago
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Credit Quality
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(1) As of 2Q09
Total Consumer - 13%
Home Equity Dominated
No Subprime Loans
No Credit Card
Conservative Underwriting
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Construction And Development (1)
Performing Commercial Construction Portfolio
Residential NPL % Impacted By Continuing Illiquid
Residential Real Estate Market
Residential Real Estate Market
Substantial Reserves
Current Valuations
As of 2Q09
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3Q08 | 4Q08 | 1Q09 | 2Q09 | |
Loan Loss Reserve / Loans | 1.34% | 1.75% | 2.15% | 2.40% |
LLR / (Non Accrual + 90 Day) | 77% | 57% | 45% | 52% |
Non Accrual + 90 Day / Total Loans | 1.74% | 3.07% | 4.78% | 4.60% |
(Non Accrual + 90 Day) / Total Loans
Loan Loss Reserve & Net Charge-offs
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(1) Includes accruing and non-accruing Troubled Debt Restructures (TDRs)
(1)
Improved Delinquencies
Better Positioned To Reduce Problem Debts
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Credit Focus
Early Identification And Remediation
Expanded Resources
Problem Resolution Strategies
Restructure
Accelerate Control
Varied Liquidation Strategies
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Capital Position
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Substantially Exceed “Well Capitalized” (1)
Built Capital Ratios Through Operating Performance, De
-leveraging Securities, And Issue Of Preferred Stock
-leveraging Securities, And Issue Of Preferred Stock
(1) “Well Capitalized” minimum ratios (- - -) are currently 6% for Tier 1, 10% for Total Capital, and 4% for Tier 1 Common (applied to Supervisory Capital Assessment Program
tests on top 19 US banks)
tests on top 19 US banks)
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“Well Capitalized” minimum ratios are currently 6% for Tier 1, 10% for Total Capital, and 4% for Tier 1 Common (applied to Supervisory Capital Assessment Program tests on top 19 US
banks)
banks)
Excess over “Well Capitalized” grossed up using 39% marginal tax rate
Represents the Pre-tax equivalent, excluding the $193 million in regulatory capital received by FMBI through the sale of preferred shares to the US Treasury as part of its Capital Purchase
Plan
Plan
Excess Regulatory Capital
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Core Profitability
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Operating Leverage - Most Recent Quarter ’09 (4)
Well Above Peers
Well Above Peers
First Midwest | Metro Peers(1) | Chicago Peers(2) | |
PTPP Return on Average Assets(3) | 1.98% | 1.46% | 1.03% |
Core Drivers: | |||
Net Interest Margin | 3.64% | 3.36% | 2.65% |
Efficiency | 51% | 65% | 68% |
Data represents the peer median core performance as reported by SNL Financial
The Metro Peers consist of AMFI, BOKF, CBSH, CFR, FCF, FULT, MBFI, ONB, SUSQ, UCBH, VLY, WTNY, and WTFC
The Chicago Peers consist of AMFI, MBFI, MBHI, OSBC, TAYC, and WTFC
Pre-tax, Pre-provision Operating Income (PTPP) excludes taxes, provision for loan losses, and market related security gains (losses) from reported quarter; PTPP is
computed on a fully tax equivalent basis
computed on a fully tax equivalent basis
As of 1Q09
Almost Double
Greater Ability To Organically Generate Capital
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Net Interest Margin
Efficiency
Excludes special FDIC assessment and market value adjustment on deferred compensation for 2Q09
The Metro Peers consist of AMFI, BOKF, CBSH, CFR, FCF, FULT, MBFI, ONB, SUSQ, UCBH, VLY, WTNY, and WTFC
The Chicago Peers consist of AMFI, MBFI, MBHI, OSBC, TAYC, and WTFC
Consistently Outperform Peers (2) (3)
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Pre-Tax, Pre-Provision Earnings excludes taxes, provision for loan losses, and market related security gains (losses) from the reported quarter and the special FDIC assessment
levied in second quarter 2009
levied in second quarter 2009
The Efficiency Ratio for second quarter 2009 has been adjusted to exclude the impact of the special FDIC assessment
2nd Quarter Performance
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“Well Capitalized” minimum ratios are currently 6% for Tier 1, 10% for Total Capital, and 4% for Tier 1 Common (applied to Supervisory Capital Assessment Program tests on top 19 US
banks)
banks)
Excess over “Well Capitalized” grossed up using 39% marginal tax rate
Represents the pre-tax equivalent, excluding the $193 million in regulatory capital received by FMBI through the sale of preferred shares to the US Treasury as part of its Capital Purchase
Plan
Plan
Annualized 2Q09 Pre-Tax, Pre-Provision Operating Income (PTPP) excludes taxes, provision for loan losses, and market related security gains (losses)
Excess Regulatory Capital + Operating
Leverage
Leverage
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Why First Midwest
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Why First Midwest
Strong Franchise
Navigating Reality Of Cycle
Proactive Remediation Of Credit
Solid Capital
Leveraging Operating Performance
Strengthening Core Business
Relationship-Based Lending
Core Deposit Expansion
Able To Benefit From Market Disruption
Well Positioned For Recovery