Exhibit 99.1
| | | | |
| | | | News Release |
 | | First Midwest Bancorp, Inc. | | First Midwest Bancorp, Inc. One Pierce Place, Suite 1500 Itasca, Illinois 60143 (630) 875-7450 |
| | | | |
| FOR IMMEDIATE RELEASE | | CONTACT: | | Paul F. Clemens |
| | | | Chief Financial Officer |
| | | | (630) 875-7347 |
| TRADED: NASDAQ Global Select Market | | | | www.firstmidwest.com |
| SYMBOL: FMBI | | | | |
FIRST MIDWEST BANCORP, INC. ANNOUNCES
2008 FOURTH QUARTER AND FULL YEAR RESULTS
Stable Core Operations – Increased Regulatory Capital – Higher Credit Costs
And Market-Related Securities Impairment
Operating Performance
| • | | 2008 full year earnings of $49.3 million and diluted EPS of $1.00 as compared to $80.2 million and $1.62 for 2007 |
| • | | Fourth quarter 2008 net loss of $26.9 million and diluted net LPS of $0.57 versus $5.4 million and $0.11 for fourth quarter 2007 |
| • | | 2008 pre-tax earnings, excluding provision expense and securities-related losses, of $152.3 million, consistent with 2007 |
| • | | Net interest margin of 3.71% for fourth quarter 2008 versus 3.53% in 2007 and 3.63% in third quarter 2008 |
| • | | Full year 2008 salary and benefit costs down $11.7 million or 10.5% from 2007 |
Credit and Market-Related Actions
| • | | Loan loss reserve at December 31, 2008 of 1.75% of total loans versus 1.25% at December 31, 2007 and 1.34% at September 30, 2008 |
| • | | Noncash securities impairment charges for fourth quarter of $34.5 million |
| • | | $10.4 million charge related to reduction in the cash surrender value of bank-owned life insurance |
ITASCA, IL, JANUARY 28, 2009 – First Midwest Bancorp, Inc. (the “Company” or “First Midwest”)(NASDAQ NGS: FMBI), the holding company of First Midwest Bank, today reported results of operations and financial condition for fourth quarter and full year 2008. The Company’s net income was $49.3 million for full year 2008 and its net loss was $26.9 million for fourth quarter 2008. This compares to net income of $80.2 million for full year 2007 and a net loss of $5.4 million for fourth quarter 2007. The Company
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reported a loss of $0.57 per diluted share for fourth quarter 2008 and earnings of $1.00 per diluted share for full year 2008, as compared to a loss of $0.11 per diluted share for fourth quarter 2007 and earnings of $1.62 per diluted share for full year 2007. Return on average assets was 0.59% for full year 2008 and a negative 1.31% for fourth quarter 2008 versus 0.99% for full year 2007 and a negative 0.27% for fourth quarter 2007. Return on average common equity was 6.48% for full year 2008 and a negative 13.89% for fourth quarter 2008 versus 10.69% for full year 2007 and a negative 2.91% for fourth quarter 2007.
In announcing these results the Company’s President and CEO, Michael L. Scudder, commented, “Performance for the quarter was adversely impacted by higher loan loss provisions and securities-related losses, stemming from continued economic weakness. We are very disappointed in the necessity of these actions, however, these are extremely difficult economic times. Their severity requires that we address the problems of the day head on and our strong capital position and core operating performance provide us the ability to do so. As we end 2008, our tier 1 capital is at 11.62%, some $290 million in excess of regulatory minimums to be considered well capitalized. By addressing these issues proactively, First Midwest is better positioned to meet the needs of our clients and communities as well as benefit from future recovery in the market place.”
Scudder further commented, “As we enter 2009, the year promises to be even more challenging than 2008. Consumers and businesses alike are experiencing increasing strain creating an environment of continuing credit weakness. Over the course of the year, we have worked to prepare ourselves for the demands of 2009, increasing our loan loss reserves, adding to our capital through the issuance of preferred securities, and reducing our dividend as well as expanding credit remediation resources and reducing our operating costs. For 2009, our focus will remain on the prudent management of these same elements.”
Operating Performance
Income before taxes totaled $36.0 million for full year 2008, as compared to $94.0 million for full year 2007, with the difference largely due to higher provision for loan losses. Provision for loan losses for 2008 was $70.3 million as contrasted to $7.2 million in 2007. Excluding the provision for loan losses and market-related securities losses, income before taxes for both 2008 and 2007 was $152 million.
Total loans as of December 31, 2008 were $5.4 billion, up 2.6% compared to September 30, 2008, with the increase reflecting loans
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made to strong borrowers representing full customer relationships. Total average deposits for fourth quarter 2008 were $5.6 billion, compared to $5.8 billion for third quarter 2008 with the decline reflecting slightly lower retail deposits stemming from competitive pricing in our market and general economic conditions. The Company’s ability to fund its lending activity predominantly with core customer deposits provides a competitive advantage given the current volatility in the cost and availability of wholesale funds.
The Company’s tax equivalent net interest margin improved from the preceding quarter and from fourth quarter 2007. Tax equivalent net interest margin was 3.71% for fourth quarter 2008 and 3.61% for full year 2008 as compared to 3.63% for third quarter 2008, 3.53% for fourth quarter 2007, and 3.58% for full year 2007. Over this period, the yield on the Company’s average earning assets declined 102 basis points while its cost of funds declined 126 basis points.
Fee-based revenues were $23.0 million for fourth quarter 2008 and $95.1 million for full year 2008, down 9.1% and 3.8%, respectively, from the same periods of 2007. In 2007 the Company ceased outsourcing its official check business as well as generating fees from mortgage originations. If both are excluded from the 2007 amount, fee-based revenues for the full year 2008 declined 1.0% from 2007, primarily due to lower trust revenue and retail sales of investment products.
Operating expenses continue to be well controlled as reflected by the Company’s efficiency ratio of 53.5% for full year 2008. Noninterest expense was $46.6 million for fourth quarter 2008 and $194.3 million for full year 2008, down 7.3% and 2.4%, respectively, from the same periods of 2007. The declines were primarily due to reductions in salaries and benefits costs. In late 2007 and continuing into 2008, the Company initiated targeted staff reductions, primarily in support and administrative areas. Full time employees have declined over this period by 4.4%, or 83 full-time equivalents.
Credit Remediation
Nonaccrual loans at December 31, 2008 were $127.8 million, representing 2.38% of total loans, with residential construction and development customer relationships accounting for $97.1 million of the total. Of such $97.1 million, undeveloped land and land with improvements totaled $28.4 million and $38.9 million, respectively. The increase in nonaccrual loans from September 30, 2008 of $74.5 million stems primarily from the impact of slowing market conditions on five residential developers.
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As of December 31, 2008, loans 90 days past due and still accruing totaled $37.0 million, unchanged from September 30, 2008 and up $15.9 million from December 31, 2007. All such loans are believed to be adequately collateralized and in the process of collection.
Foreclosed real estate was $24.4 million as of December 31, 2008 as compared to $23.7 million as of September 30, 2008 and $6.1 million as of December 31, 2007, with 60% of this representing collateral underlying foreclosed residential developments.
Restructured loans totaled $3.3 million at December 31, 2008, up $1.0 million from September 30, 2008 and $3.0 million from December 31, 2007.
During fourth quarter 2008, net charge-offs totaled $18.3 million as compared to $9.3 million in third quarter 2008. Net charge-offs for full year 2008 were $38.2 million, compared to $7.8 million for full year 2007. The majority of the year over year increase is due to charge-offs of real estate construction and development loans. In fourth quarter 2008, the Company charged off $9.2 million related to residential construction, with four loans accounting for substantially the entire amount, and $5.6 million related to commercial and industrial loans, with the majority due to two individual loans.
In response to the anticipated impact of continuing economic weakness on real estate and related markets, the Company increased its reserve for loan losses to $93.9 million as of December 31, 2008, up $24.1 million from September 30, 2008 and $32.1 million from December 31, 2007. The reserve for loan losses represented 1.75% of total loans outstanding at December 31, 2008, compared to 1.25% at December 31, 2007 and 1.34% at September 30, 2008. Provisions for loan losses for fourth quarter and full year 2008 were $42.4 million and $70.3 million, respectively, with full year 2008 provision exceeding net-charge offs by $32.1 million, or almost two times.
Given current conditions, the Company has taken a number of aggressive steps to manage and mitigate the impact on its loan portfolio. These steps include the assignment of additional dedicated resources to both the remediation of existing problem credits as well as pre-emptive analysis and communication with performing borrowers.
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Securities Portfolio
Non-cash impairment charges totaling $34.5 million were recorded in fourth quarter 2008. Of such charges, $24.8 million related to three trust-preferred collateralized debt obligations (“CDOs”) with an aggregate cost of $38.9 million. The remaining $9.7 million of non-cash impairment charges related to two whole loan mortgage backed securities with a combined par value of $16.6 million and a single Sallie Mae debt issuance with a par value of $10.0 million. These non-cash charges largely reflect the illiquidity and market risks existent generally.
The Company holds an additional $46.3 million of trust-preferred CDOs with a combined unrealized loss of $18.3 million. The after-tax impact of these unrealized losses has been recorded through shareholders’ equity as a component of other comprehensive income.
At December 31, 2008 the Company held securities (substantially all classified as Available-for-Sale) with an amortized cost of $2.2 billion and a net unrealized loss of $3.3 million versus a net unrealized loss of $73.3 million at September 30, 2008 and $7.6 million at December 31, 2007. The $70.0 million improvement in the net unrealized loss position from September 30, 2008 was due to the recognition of the aforementioned non-cash impairment of $34.5 million in fourth quarter 2008 and $67.6 million of appreciation in the Company’s $2.1 billion portfolio of fixed income municipal and government-sponsored mortgaged backed securities, partly offset by a decline in fair value of unimpaired CDOs.
Bank-Owned Life Insurance (“BOLI”)
At December 31, 2008, the cash surrender value of BOLI assets totaled $198.5 million, down $8.9 million from September 30, 2008. The decline stemmed from fourth quarter losses in certain underlying investment funds and Company actions taken to reposition the funds in shorter duration assets to mitigate future reinvestment risk.
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Capital Management
All regulatory mandated ratios for characterization as “well capitalized” were significantly exceeded as of December 31, 2008 and improved versus December 31, 2007 as follows:
| | | | | | | | | | | | | | | |
| | | Minimum
“Well-
Capitalized”
Level | | | 12/31/08 | | | Excess Over Required
Minimums at 12/31/08 | | 12/31/07 | |
| | | | | | | | | | | | (Amounts in millions) | | | |
Tier 1 Risk Based Capital | | 6.00 | % | | 11.60 | % | | 93 | % | | $ | 370 | | 9.03 | % |
Total Risk Based Capital | | 10.00 | % | | 14.36 | % | | 44 | % | | $ | 288 | | 11.58 | % |
Tier 1 Leverage Capital | | 5.00 | % | | 9.41 | % | | 88 | % | | $ | 359 | | 7.46 | % |
On December 5, 2008 the Company received $193.0 million from the sale of preferred shares to the U.S. Treasury as part of its Capital Purchase Program (“CPP”). In connection with the CPP investment, the Company issued to the U.S. Treasury a total of 193,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series B, at an initial fixed rate of 5% with a $1,000 per share liquidation preference, and a warrant to purchase up to 1.3 million shares of the Company’s common stock at an exercise price of $22.18 per share. Both the preferred shares and the warrants are accounted for as components of the Company’s regulatory Tier 1 capital as of December 31, 2008. Preferred share proceeds received were temporarily invested in government sponsored mortgage-backed securities pending future deployment.
Responsive to the then environment, the Company announced in fourth quarter 2008 a reduction in its quarterly common stock dividend from $0.310 per share to $0.225 per share. This reduction would equate to approximately $16 million in retained capital over the course of a year.
The Board of Directors will continue to evaluate all aspects of the Company’s capital plan each quarter, recognizing both current and anticipated conditions.
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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 some 100 offices located in 62 communities, primarily in metropolitan Chicago. First Midwest was recently recognized by the Alfred P. Sloan awards for Business Excellence in Workforce Flexibility in the greater Chicago Area.
Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts but instead represent only the Company’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company’s control. It is possible that actual results and the Company’s financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect the Company’s future results, see “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007 and other reports filed with the Securities and Exchange Commission. Forward-looking statements represent management’s best judgment as of the date hereof based on currently available information. Except as required by law, the Company undertakes no duty to update the contents of this press release after the date hereof.
Conference Call
A conference call to discuss the Company’s results, outlook and related matters will be held on Wednesday, January 28, 2009 at 10:00 a.m. (ET). Members of the public who would like to listen to the conference call should dial 1-866-713-8310 U.S. domestic) or 1-617-597-5308 (international) and enter passcode number 287-96-096. The number should be dialed at least 10 minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast through the Investor Relations section of the Company’s web site, www.firstmidwest.com/aboutinvestor_overview.asp. There is no charge to access the call. For those unable to listen to the live broadcast, a replay will be available on the Company’s web site or by dialing 1-888-286-8010 (U.S. domestic) or 1-617-801-6888 (international) passcode number 713-29-279, beginning approximately one hour after the event through 11:59 pm (ET) on February 4, 2009. Please direct any questions regarding obtaining access to the conference call to First Midwest Bancorp, Inc. Investor Relations, via e-mail, at investor.relations@firstmidwest.com.
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Accompanying Financial Statements and Tables
Accompanying this press release is the following unaudited financial information:
| | • | | Operating Highlights, Balance Sheet Highlights, Stock Performance Data, and Capital Ratios (1 page) |
| | • | | Condensed Consolidated Statements of Condition (1 page) |
| | • | | Condensed Consolidated Statements of Income (1 page) |
| | • | | Loan Portfolio Composition (1 page) |
Press Release and Additional Information Available on Website
This press release, the accompanying financial statements and tables, and certain additional unauditedSelected 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 28, 2009 |
Operating Highlights
Unaudited
| | | | | | | | | | | | | | | | | | | | |
| | | Quarters Ended | | | Years Ended | |
| (Amounts in thousands except per share data) | | Dec. 31, 2008 | | | Sept. 30, 2008 | | | Dec. 31, 2007 | | | Dec. 31, 2008 | | | Dec. 31, 2007 | |
Net income | | $ | (26,890 | ) | | $ | 24,191 | | | $ | (5,418 | ) | | $ | 49,336 | | | $ | 80,159 | |
Diluted earnings per share | | $ | (0.57 | ) | | $ | 0.50 | | | $ | (0.11 | ) | | $ | 1.00 | | | $ | 1.62 | |
Return on average equity | | | (13.89 | )% | | | 13.09 | % | | | (2.91 | )% | | | 6.48 | % | | | 10.69 | % |
Return on average assets | | | (1.31 | )% | | | 1.16 | % | | | (0.27 | )% | | | 0.59 | % | | | 0.99 | % |
Net interest margin | | | 3.71 | % | | | 3.63 | % | | | 3.53 | % | | | 3.61 | % | | | 3.58 | % |
Efficiency ratio | | | 59.06 | % | | | 50.30 | % | | | 53.87 | % | | | 53.49 | % | | | 52.50 | % |
Balance Sheet Highlights
Unaudited
| | | | | | | | | |
| | | As Of |
| (Dollar amounts in thousands except per share data) | | Dec. 31, 2008 | | Sept. 30, 2008 | | Dec. 31, 2007 |
Total assets | | $ | 8,528,341 | | $ | 8,246,655 | | $ | 8,091,518 |
Total loans | | | 5,360,063 | | | 5,223,582 | | | 4,963,672 |
Total deposits | | | 5,585,754 | | | 5,658,284 | | | 5,778,861 |
Total stockholders’ equity | | | 908,279 | | | 718,909 | | | 723,975 |
Common stockholders’ equity | | | 715,949 | | | 718,909 | | | 723,975 |
Book value per share | | $ | 14.72 | | $ | 14.80 | | $ | 14.94 |
Period end shares outstanding | | | 48,630 | | | 48,590 | | | 48,453 |
Stock Performance Data
Unaudited
| | | | | | | | | | | | | | | |
| | | Quarters Ended | | |
| (Dollar amounts in thousands except per share data) | | Dec. 31, 2008 | | | | Sept. 30, 2008 | | | | Dec. 31, 2007 | | |
Market Closing Price: | | | | | | | | | | | | | | | |
Quarter End | | $ | 19.97 | | | | $ | 24.24 | | | | $ | 30.60 | | |
High | | $ | 27.32 | | | | $ | 29.84 | | | | $ | 36.31 | | |
Low | | $ | 14.33 | | | | $ | 14.00 | | | | $ | 29.89 | | |
Quarter end price to book value | | | 1.4 | | x | | | 1.6 | | x | | | 2.0 | | x |
Quarter end price to full year 2008 earnings | | | 19.97 | | x | | | N/A | | | | | N/A | | |
Dividends declared per share | | $ | 0.225 | | | | $ | 0.310 | | | | $ | 0.310 | | |
Common dividends paid | | $ | 10,955 | | | | $ | 15,088 | | | | $ | 15,045 | | |
Capital Ratios
Unaudited
| | | | | | | | | |
| | | As Of | |
| | | Dec. 31, 2008 | | | Sept. 30, 2008 | | | Dec. 31, 2007 | |
Regulatory capital ratios: | | | | | | | | | |
Total capital to risk-weighted assets | | 14.36 | % | | 12.04 | % | | 11.58 | % |
Tier 1 capital to risk-weighted assets | | 11.60 | % | | 9.42 | % | | 9.03 | % |
Tier 1 leverage to average assets | | 9.41 | % | | 7.59 | % | | 7.46 | % |
| | |
Tangible common equity ratios: | | | | | | |
Tangible common equity to tangible assets | | 5.23 | % | | 5.44 | % | | 5.58 | % |
Tangible common equity, excluding other comprehensive loss, to tangible assets | | 5.45 | % | | 6.09 | % | | 5.73 | % |
Tangible common equity to risk-weighted assets | | 6.53 | % | | 6.69 | % | | 6.87 | % |
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| First Midwest Bancorp, Inc. | | Press Release Dated January 28, 2009 |
Condensed Consolidated Statements of Condition
Unaudited
| | | | | | | | |
| | | December 31, | |
| (Amounts in thousands) | | 2008 | | | 2007 | |
Assets | | | | | | | | |
Cash and due from banks | | $ | 106,082 | | | $ | 193,792 | |
Funds sold and other short-term investments | | | 8,226 | | | | 1,439 | |
Trading account securities | | | 12,358 | | | | 18,352 | |
Securities available-for-sale | | | 2,216,186 | | | | 2,080,046 | |
Securities held to maturity, at amortized cost | | | 84,306 | | | | 97,671 | |
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | | | 54,767 | | | | 54,767 | |
Loans | | | 5,360,063 | | | | 4,963,672 | |
Reserve for loan losses | | | (93,869 | ) | | | (61,800 | ) |
| | | | | | | | |
Net loans | | | 5,266,194 | | | | 4,901,872 | |
| | | | | | | | |
Foreclosed real estate | | | 24,368 | | | | 6,053 | |
Premises, furniture, and equipment | | | 120,035 | | | | 125,828 | |
Investment in bank owned life insurance | | | 198,533 | | | | 203,535 | |
Goodwill and other intangible assets | | | 284,548 | | | | 288,235 | |
Accrued interest receivable and other assets | | | 152,738 | | | | 119,928 | |
| | | | | | | | |
Total assets | | $ | 8,528,341 | | | $ | 8,091,518 | |
| | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | |
Deposits | | | | | | | | |
Transactional deposits | | $ | 3,457,954 | | | $ | 3,582,031 | |
Time deposits | | | 1,950,362 | | | | 2,100,390 | |
Brokered deposits | | | 177,438 | | | | 96,440 | |
| | | | | | | | |
Total deposits | | | 5,585,754 | | | | 5,778,861 | |
Borrowed funds | | | 1,698,334 | | | | 1,264,228 | |
Subordinated debt | | | 232,409 | | | | 230,082 | |
Accrued interest payable and other liabilities | | | 103,565 | | | | 94,372 | |
| | | | | | | | |
Total liabilities | | | 7,620,062 | | | | 7,367,543 | |
| | | | | | | | |
Preferred stock | | | 189,617 | | | | — | |
Common stock | | | 613 | | | | 613 | |
Additional paid-in capital | | | 210,698 | | | | 207,851 | |
Retained earnings | | | 837,390 | | | | 844,972 | |
Accumulated other comprehensive (loss) | | | (18,042 | ) | | | (11,727 | ) |
Treasury stock, at cost | | | (311,997 | ) | | | (317,734 | ) |
| | | | | | | | |
Total stockholders’ equity | | | 908,279 | | | | 723,975 | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 8,528,341 | | | $ | 8,091,518 | |
| | | | | | | | |
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| First Midwest Bancorp, Inc. | | Press Release Dated January 28, 2009 |
Condensed Consolidated Statements of Income
Unaudited
| | | | | | | | | | | | | | | | |
| | | Quarters Ended
December 31, | | | Years Ended
December 31, | |
| (Amounts in thousands except per share data) | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
Interest Income | | | | | | | | | | | | | | | | |
Loans | | $ | 71,849 | | | $ | 87,998 | | | $ | 302,931 | | | $ | 365,370 | |
Securities | | | 25,583 | | | | 26,009 | | | | 104,448 | | | | 108,470 | |
Other | | | 501 | | | | 604 | | | | 1,828 | | | | 3,121 | |
| | | | | | | | | | | | | | | | |
Total interest income | | | 97,933 | | | | 114,611 | | | | 409,207 | | | | 476,961 | |
| | | | | | | | | | | | | | | | |
Interest Expense | | | | | | | | | | | | | | | | |
Deposits | | | 22,802 | | | | 40,598 | | | | 110,622 | | | | 166,267 | |
Borrowed funds | | | 6,416 | | | | 12,148 | | | | 37,192 | | | | 55,540 | |
Subordinated debt | | | 3,702 | | | | 3,767 | | | | 14,796 | | | | 15,025 | |
| | | | | | | | | | | | | | | | |
Total interest expense | | | 32,920 | | | | 56,513 | | | | 162,610 | | | | 236,832 | |
| | | | | | | | | | | | | | | | |
Net interest income | | | 65,013 | | | | 58,098 | | | | 246,597 | | | | 240,129 | |
| | | | | | | | | | | | | | | | |
Provision for loan losses | | | 42,385 | | | | 2,042 | | | | 70,254 | | | | 7,233 | |
| | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 22,628 | | | | 56,056 | | | | 176,343 | | | | 232,896 | |
Noninterest Income | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | 11,206 | | | | 11,986 | | | | 44,987 | | | | 45,015 | |
Trust and investment management fees | | | 3,420 | | | | 4,061 | | | | 15,130 | | | | 15,701 | |
Other service charges, commissions, and fees | | | 4,554 | | | | 5,324 | | | | 18,846 | | | | 22,183 | |
Card-based fees | | | 3,868 | | | | 3,979 | | | | 16,143 | | | | 15,925 | |
| | | | | | | | | | | | | | | | |
Subtotal, fee-based revenues | | | 23,048 | | | | 25,350 | | | | 95,106 | | | | 98,824 | |
| | | | | | | | | | | | | | | | |
Bank owned life insurance income | | | (8,858 | ) | | | 2,117 | | | | (2,369 | ) | | | 8,033 | |
Securities (losses) gains, net | | | (34,215 | ) | | | (50,041 | ) | | | (35,611 | ) | | | (50,801 | ) |
Other | | | (2,104 | ) | | | 109 | | | | (3,119 | ) | | | 4,197 | |
| | | | | | | | | | | | | | | | |
Total noninterest income | | | (22,129 | ) | | | (22,465 | ) | | | 54,007 | | | | 60,253 | |
| | | | | | | | | | | | | | | | |
Noninterest Expense | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 20,356 | | | | 27,686 | | | | 99,910 | | | | 111,598 | |
Net occupancy expense | | | 5,967 | | | | 5,480 | | | | 23,378 | | | | 22,054 | |
Equipment expense | | | 2,454 | | | | 2,744 | | | | 9,956 | | | | 10,540 | |
Technology and related costs | | | 1,848 | | | | 1,760 | | | | 7,429 | | | | 7,084 | |
Other | | | 15,956 | | | | 12,594 | | | | 53,632 | | | | 47,861 | |
| | | | | | | | | | | | | | | | |
Total noninterest expense | | | 46,581 | | | | 50,264 | | | | 194,305 | | | | 199,137 | |
| | | | | | | | | | | | | | | | |
Income before taxes | | | (46,082 | ) | | | (16,673 | ) | | | 36,045 | | | | 94,012 | |
Income tax (benefit) expense | | | (19,192 | ) | | | (11,255 | ) | | | (13,291 | ) | | | 13,853 | |
| | | | | | | | | | | | | | | | |
Net (Loss) Income | | | (26,890 | ) | | | (5,418 | ) | | | 49,336 | | | | 80,159 | |
Preferred dividends | | | (712 | ) | | | — | | | | (712 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Net (Loss) Income Applicable to Common Shares | | $ | (27,602 | ) | | $ | (5,418 | ) | | $ | 48,624 | | | $ | 80,159 | |
| | | | | | | | | | | | | | | | |
Diluted Earnings Per Share | | $ | (0.57 | ) | | $ | (0.11 | ) | | $ | 1.00 | | | $ | 1.62 | |
Dividends Declared Per Share | | $ | 0.225 | | | $ | 0.310 | | | $ | 1.155 | | | $ | 1.195 | |
Weighted Average Diluted Shares Outstanding | | | 48,540 | | | | 48,754 | | | | 48,565 | | | | 49,622 | |
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| First Midwest Bancorp, Inc. | | Press Release Dated January 28, 2009 |
Unaudited
| | | | | | | | | | | | | | | | | | |
| | | As Of | | Percent Change From | |
| (Dollar amounts in thousands) | | 12/31/08 | | % of total | | | 9/30/08 | | 6/30/08 | | 9/30/08 | | | 6/30/08 | |
Loan Portfolio Composition | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | $ | 1,490,101 | | 27.8 | % | | $ | 1,485,541 | | $ | 1,448,723 | | 0.3 | % | | 2.9 | % |
Agricultural | | | 142,635 | | 2.7 | % | | | 159,217 | | | 207,438 | | (10.4 | )% | | (31.2 | )% |
Commercial real estate: | | | | | | | | | | | | | | | | | | |
Office, retail, and industrial | | | 1,127,689 | | 21.0 | % | | | 1,092,268 | | | 1,048,547 | | 3.2 | % | | 7.5 | % |
Residential land and development | | | 509,059 | | 9.5 | % | | | 509,974 | | | 510,818 | | (0.2 | )% | | (0.3 | )% |
Multifamily | | | 237,646 | | 4.4 | % | | | 204,029 | | | 195,815 | | 16.5 | % | | 21.4 | % |
Other commercial real estate | | | 1,106,952 | | 20.7 | % | | | 1,021,662 | | | 1,014,759 | | 8.3 | % | | 9.1 | % |
| | | | | | | | | | | | | | | | | | |
Total commercial real estate | | | 2,981,346 | | 55.6 | % | | | 2,827,933 | | | 2,769,939 | | 5.4 | % | | 7.6 | % |
| | | | | | | | | | | | | | | | | | |
Consumer: | | | | | | | | | | | | | | | | | | |
Home equity | | | 477,105 | | 8.9 | % | | | 468,703 | | | 460,581 | | 1.8 | % | | 3.6 | % |
Real estate 1-4 family | | | 198,197 | | 3.7 | % | | | 205,851 | | | 213,295 | | (3.7 | )% | | (7.1 | )% |
Other consumer | | | 70,679 | | 1.3 | % | | | 76,337 | | | 82,379 | | (7.4 | )% | | (14.2 | )% |
| | | | | | | | | | | | | | | | | | |
Total consumer | | | 745,981 | | 13.9 | % | | | 750,891 | | | 756,255 | | (0.7 | )% | | (1.4 | )% |
| | | | | | | | | | | | | | | | | | |
Total loans | | $ | 5,360,063 | | 100.0 | % | | $ | 5,223,582 | | $ | 5,182,355 | | 2.6 | % | | 3.4 | % |
| | | | | | | | | | | | | | | | | | |
Commercial Real Estate Detail Office, Retail, and Industrial | | | | | | | | | | | | | | | | | | |
Office | | $ | 373,242 | | 33.1 | % | | $ | 352,200 | | $ | 337,424 | | 6.0 | % | | 10.6 | % |
Retail | | | 313,286 | | 27.8 | % | | | 300,570 | | | 281,942 | | 4.2 | % | | 11.1 | % |
Industrial | | | 441,161 | | 39.1 | % | | | 439,498 | | | 429,181 | | 0.4 | % | | 2.8 | % |
| | | | | | | | | | | | | | | | | | |
Total office, retail, and industrial | | $ | 1,127,689 | | 100.0 | % | | $ | 1,092,268 | | $ | 1,048,547 | | 3.2 | % | | 7.5 | % |
| | | | | | | | | | | | | | | | | | |
Residential Land and Development | | | | | | | | | | | | | | | | | | |
Structures | | $ | 185,929 | | 36.5 | % | | $ | 190,741 | | $ | 217,161 | | (2.5 | )% | | (14.4 | )% |
Land | | | 323,130 | | 63.5 | % | | | 319,233 | | | 293,657 | | 1.2 | % | | 10.0 | % |
| | | | | | | | | | | | | | | | | | |
Total residential land and development | | $ | 509,059 | | 100.0 | % | | $ | 509,974 | | $ | 510,818 | | (0.2 | )% | | (0.3 | )% |
| | | | | | | | | | | | | | | | | | |
Other Commercial Real Estate | | | | | | | | | | | | | | | | | | |
Commercial land | | $ | 280,120 | | 25.3 | % | | $ | 263,030 | | $ | 285,411 | | 6.5 | % | | (1.9 | )% |
1-4 family investors | | | 193,227 | | 17.5 | % | | | 178,540 | | | 168,259 | | 8.2 | % | | 14.8 | % |
Service stations and truck stops | | | 146,891 | | 13.3 | % | | | 134,677 | | | 120,670 | | 9.1 | % | | 21.7 | % |
Warehouses and storage | | | 85,276 | | 7.7 | % | | | 80,889 | | | 79,580 | | 5.4 | % | | 7.2 | % |
Hotels | | | 79,186 | | 7.2 | % | | | 67,217 | | | 67,574 | | 17.8 | % | | 17.2 | % |
Restaurants | | | 48,106 | | 4.3 | % | | | 44,872 | | | 47,313 | | 7.2 | % | | 1.7 | % |
Medical | | | 42,269 | | 3.8 | % | | | 42,253 | | | 43,347 | | 0.0 | % | | (2.5 | )% |
Automobile dealers | | | 38,505 | | 3.5 | % | | | 38,866 | | | 37,562 | | (0.9 | )% | | 2.5 | % |
Mobile home parks | | | 36,790 | | 3.3 | % | | | 29,670 | | | 25,217 | | 24.0 | % | | 45.9 | % |
Recreational | | | 14,515 | | 1.3 | % | | | 14,760 | | | 15,106 | | (1.7 | )% | | (3.9 | )% |
Religious | | | 11,224 | | 1.0 | % | | | 10,317 | | | 11,362 | | 8.8 | % | | (1.2 | )% |
Other | | | 130,843 | | 11.8 | % | | | 116,571 | | | 113,358 | | 12.2 | % | | 15.4 | % |
| | | | | | | | | | | | | | | | | | |
Total other commercial real estate | | $ | 1,106,952 | | 100.0 | % | | $ | 1,021,622 | | $ | 1,014,759 | | 8.3 | % | | 9.1 | % |
| | | | | | | | | | | | | | | | | | |
12
| | |
| First Midwest Bancorp, Inc. | | Press Release Dated January 28, 2009 |
Unaudited
| | | | | | | | | | | | | | | | | | |
| | | As Of | |
| (Dollar amounts in thousands) | | 12/31/08 | | | % of Loan
Category | | | % of Total | | | 9/30/08 | | | 6/30/08 | |
Asset Quality | | | | | | | | | | | | | | | | | | |
Nonaccrual loans: | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | $ | 15,586 | | | 1.05 | % | | 12.2 | % | | $ | 13,961 | | | $ | 5,222 | |
Office, retail, and industrial | | | 2,533 | | | 0.22 | % | | 2.0 | % | | | 1,195 | | | | 1,125 | |
Residential land and development | | | 97,060 | | | 19.07 | % | | 76.0 | % | | | 28,335 | | | | 11,664 | |
Multifamily | | | 1,387 | | | 0.58 | % | | 1.1 | % | | | 2,827 | | | | 3,016 | |
Other commercial real estate | | | 6,926 | | | 0.63 | % | | 5.4 | % | | | 1,845 | | | | 885 | |
Consumer | | | 4,276 | | | 0.57 | % | | 3.3 | % | | | 5,154 | | | | 3,324 | |
| | | | | | | | | | | | | | | | | | |
Total nonaccrual loans | | $ | 127,768 | | | 2.38 | % | | 100.0 | % | | $ | 53,317 | | | $ | 25,236 | |
| | | | | | | | | | | | | | | | | | |
Restructured loans | | | 3,260 | | | | | | | | | | 2,258 | | | | 259 | |
Foreclosed real estate | | | 24,368 | | | | | | | | | | 23,697 | | | | 7,042 | |
90 days past due loans (still accruing interest): | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | $ | 6,818 | | | 0.46 | % | | 18.4 | % | | $ | 4,006 | | | $ | 4,530 | |
Agricultural | | | 1,751 | | | 1.23 | % | | 4.7 | % | | | 1,751 | | | | — | |
Office, retail, and industrial | | | 3,214 | | | 0.29 | % | | 8.7 | % | | | 4,838 | | | | 2,855 | |
Residential land and development | | | 8,489 | | | 1.67 | % | | 23.0 | % | | | 17,615 | | | | 16,696 | |
Multifamily | | | 1,881 | | | 0.79 | % | | 5.1 | % | | | 1,216 | | | | 2,071 | |
Other commercial real estate | | | 6,586 | | | 0.59 | % | | 17.8 | % | | | 2,469 | | | | 3,410 | |
Consumer | | | 8,260 | | | 1.11 | % | | 22.3 | % | | | 5,421 | | | | 7,948 | |
| | | | | | | | | | | | | | | | | | |
Total 90 days past due loans | | $ | 36,999 | | | 0.69 | % | | 100.0 | % | | $ | 37,316 | | | $ | 37,510 | |
| | | | | | | | | | | | | | | | | | |
30-89 days past due loans | | $ | 116,206 | | | 2.17 | % | | — | | | $ | 104,769 | | | $ | 185,186 | |
| | | | | | | | | | | | | | | | | | |
Asset Quality Ratios | | | | | | | | | | | | | | | | | | |
Nonaccrual loans to loans | | | 2.38 | % | | — | | | — | | | | 1.02 | % | | | 0.49 | % |
Nonaccrual loans plus loans past due 90 days to loans | | | 3.07 | % | | — | | | — | | | | 1.74 | % | | | 1.21 | % |
Reserve for loan losses | | $ | 93,869 | | | — | | | — | | | $ | 69,811 | | | $ | 66,104 | |
Reserve for loan losses to loans | | | 1.75 | % | | — | | | — | | | | 1.34 | % | | | 1.28 | % |
Reserve for loan losses to nonaccrual loans | | | 73 | % | | — | | | — | | | | 131 | % | | | 262 | % |
Reserve for loan losses to nonaccrual loans plus loans past due 90 days | | | 57 | % | | — | | | — | | | | 77 | % | | | 105 | % |
| | | | | | | | | | | | | | | | | | |
| |
| | | Quarters Ended | |
| (Dollar amounts in thousands) | | 12/31/08 | | | % of Loan
Category | | | % of Total | | | 9/30/08 | | | 6/30/08 | |
Charge-off Data | | | | | | | | | | | | | | | | | | |
Net loans charged-off: | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | $ | 5,601 | | | 0.38 | % | | 30.6 | % | | $ | 1,899 | | | $ | 2,338 | |
Agricultural | | | — | | | | | | | | | | (4 | ) | | | 42 | |
Office, retail, and industrial | | | 699 | | | 0.06 | % | | 3.8 | % | | | 2 | | | | 31 | |
Residential land and development | | | 9,227 | | | 1.81 | % | | 50.3 | % | | | 5,856 | | | | 138 | |
Multifamily | | | 164 | | | 0.07 | % | | 0.9 | % | | | (40 | ) | | | 830 | |
Other commercial real estate | | | 397 | | | 0.04 | % | | 2.2 | % | | | 62 | | | | 116 | |
Consumer | | | 2,239 | | | 0.30 | % | | 12.2 | % | | | 1,547 | | | | 961 | |
| | | | | | | | | | | | | | | | | | |
Total net loans charged-off | | $ | 18,327 | | | 1.38 | % | | 100.0 | % | | $ | 9,322 | | | $ | 4,456 | |
| | | | | | | | | | | | | | | | | | |
Net loan charge-offs to average loans (annualized): | | | | | | | | | | | | | | | | | | |
Quarter-to-date | | | 1.38 | % | | — | | | — | | | | 0.71 | % | | | 0.35 | % |
Year-to-date | | | 0.74 | % | | — | | | — | | | | 0.52 | % | | | 0.42 | % |
13
| | |
| First Midwest Bancorp, Inc. | | Press Release Dated January 28, 2009 |
|
Securities Available-For-Sale Unaudited |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | U.S.
Treasury | | | U.S.
Agency | | Collateralized
Mortgage
Obligations | | | Other
Mortgage
Backed | | | State
and
Municipal | | | Collateralized
Debt
Obligations | | | Other | | | Total | |
As of December 31, 2008 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortized cost | | $ | 1,039 | | | $ | — | | $ | 694,285 | | | $ | 504,918 | | | $ | 907,036 | | | $ | 60,406 | | | $ | 51,820 | | | $ | 2,219,504 | |
| | | | | | | | |
Gross unrealized gains (losses): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross unrealized gains | | | 2 | | | | — | | | 7,668 | | | | 13,421 | | | | 12,606 | | | | — | | | | 213 | | | | 33,910 | |
Gross unrealized losses | | | — | | | | — | | | (3,114 | ) | | | (74 | ) | | | (12,895 | ) | | | (18,320 | ) | | | (2,825 | ) | | | (37,228 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized gains (losses) | | | 2 | | | | — | | | 4,554 | | | | 13,347 | | | | (289 | ) | | | (18,320 | ) | | | (2,612 | ) | | | (3,318 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value | | $ | 1,041 | | | $ | — | | $ | 698,839 | | | $ | 518,265 | | | $ | 906,747 | | | $ | 42,086 | | | $ | 49,208 | | | $ | 2,216,186 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of September 30, 2008 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortized cost | | $ | 902 | | | $ | 1,999 | | $ | 515,376 | | | $ | 517,139 | | | $ | $926,519 | | | $ | 85,286 | | | $ | 50,973 | | | $ | 2,098,194 | |
| | | | | | | | |
Gross unrealized gains (losses): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross unrealized gains | | | 3 | | | | 3 | | | 1,798 | | | | 1,970 | | | | 1,987 | | | | 80 | | | | 26 | | | | 5,867 | |
Gross unrealized losses | | | — | | | | — | | | (6,827 | ) | | | (3,068 | ) | | | (45,854 | ) | | | (14,000 | ) | | | (9,431 | ) | | | (79,180 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized gains (losses) | | | 3 | | | | 3 | | | (5,029 | ) | | | (1,098 | ) | | | (43,867 | ) | | | (13,920 | ) | | | (9,405 | ) | | | (73,313 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value | | $ | 905 | | | $ | 2,002 | | $ | 510,347 | | | $ | 516,041 | | | $ | 882,652 | | | $ | 71,366 | | | $ | 41,568 | | | $ | 2,024,881 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2007 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortized cost | | $ | 1,027 | | | $ | 41,895 | | $ | 534,688 | | | $ | 417,532 | | | $ | 961,638 | | | $ | 95,584 | | | $ | 35,295 | | | $ | 2,087,659 | |
| | | | | | | | |
Gross unrealized gains (losses): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross unrealized gains | | | 2 | | | | 597 | | | 2,333 | | | | 5,116 | | | | 7,728 | | | | — | | | | 34 | | | | 15,810 | |
Gross unrealized losses | | | (1 | ) | | | — | | | (2,221 | ) | | | (2,328 | ) | | | (2,531 | ) | | | (13,954 | ) | | | (2,388 | ) | | | (23,423 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized gains (losses) | | | 1 | | | | 597 | | | 112 | | | | 2,788 | | | | 5,197 | | | | (13,954 | ) | | | (2,354 | ) | | | (7,613 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value | | $ | 1,028 | | | $ | 42,492 | | $ | 534,800 | | | $ | 420,320 | | | $ | 966,835 | | | $ | 81,630 | | | $ | 32,941 | | | $ | 2,080,046 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
14
