January 2010 First Midwest Bancorp Equity Offering Exhibit 99.1 |
2 2 2 2 Forward Looking Statements 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, the preliminary prospectus supplement 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 the audited financial statements 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. |
3 3 Equity Offering Overview Equity Offering Overview Issuer: First Midwest Bancorp, Inc. (Nasdaq: FMBI) Offering Size: $150 million of common stock Greenshoe Option: 15% Use of Proceeds: General corporate purposes Expected Pricing: January 14 th Lock-Up Agreement: 90 days Bookrunners: Goldman, Sachs & Co. (active) Keefe, Bruyette & Woods (passive) Co-Manager: Sandler O’Neill + Partners |
4 4 4 4 Review of 4Q09 Results Review of 4Q09 Results Net loss to common shareholders of $39.5mm or $(0.73) per share Solid core operations Pre-tax, pre-provision earnings ¹ of $32.7mm, up 8% vs. 3Q09 Net interest margin of 4.04%, up 38bps vs. 3Q09 Efficiency ratio ² of 58.5%, down 65bps vs. 3Q09 Higher credit costs; problem assets ³ flat to down Net charge-offs of $82.5mm, $38.3mm related to residential construction NALs + 90 days past due at $248mm, down 6% from 3Q09 OREO losses realized of $14mm, $7mm related to land 30-89 days past due at $37.9mm, down 15% from 3Q09 Active balance sheet management Acquired First DuPage in FDIC transaction; $13.1mm pre-tax gain Retired $20mm of 5.95% subordinated debt for cash; $1.3mm pre-tax gain TCE / TA ratio of 6.29%, up 106bps from 4Q08 Positioning balance sheet to enhance remediation and liquidation alternatives ¹ This is a non-GAAP financial measure. For reconciliation to GAAP measure, please refer to the appendix. ² Equal to non-interest expense divided by full taxable equivalent (FTE) net interest income and non-interest income. Excludes nonrecurring items. ³ Problem assets include non-accrual loans, loans 90 days or more past due, other real estate owned and troubled debt restructurings. |
5 5 Strategic Rationale for Offering Strategic Rationale for Offering Strengthens balance sheet, adding to already solid capital position Enhances potential for opportunistic growth Organic FDIC transactions Industry capital standards likely to head higher Enables continued flexibility in capital management Positions for potential future TARP repayment, subject to regulatory approval |
6 6 Overview of First Midwest Overview of First Midwest Headquartered in suburban Chicago $7.7bn assets $5.2bn loans $5.9bn deposits 66% transactional $3.5bn trust assets Acquired First DuPage in FDIC- assisted transaction in October 2009 Loan Mix Deposit Mix Highly efficient platform - $61mm of deposits per branch Leading market share in non- downtown Chicago MSA #9 with 3.3% market share ³ $5.2bn $5.9bn INDIANA ILLINOIS IOWA DuPage Scott Knox Champaign Vermilion Lake Lake McHenry Cook Will Rock Island Grundy Kendall La Salle Note: Information as of 31-Dec-09. ¹ Defined as time deposits less than $100,000. ² Defined as time deposits greater than $100,000. ³ Source: SNL Financial. Non-downtown ranking and market share based on total deposits in Chicago MSA less deposits in the city of Chicago. Data as of 30-Jun-09. Consumer 13% Commercial & Industrial 32% Commercial Real Estate 56% Savings & NOW 28% Demand 19% Money Market 19% Retail Time¹ 22% Jumbo Time² 12% |
7 7 Investment Highlights Investment Highlights Solid core operating performance Stable core deposit funding profile Addressing realities of credit cycle Prudently building capital / proactive capital management Experienced management team to take advantage of potential opportunities |
8 8 Solid Core Operating Performance Solid Core Operating Performance Source: FMBI based on internal data; peer data from SNL Financial ¹ Equal to non-interest expense divided by fully taxable equivalent (FTE) net interest income and non-interest income. Excludes nonrecurring items. ² This is a non-GAAP financial measure. For reconciliation to GAAP measure, please refer to the appendix. ³ Chicago Peers based on median of AMFI, MBFI, MBHI, OSBC, PVTB, TAYC and WTFC. 4 Metro Peers based on median of AMFI, BOKF, CBSM, CFR, FCF, FULT, MBFI, ONB, SUSQ, VLY, WTFC and WTNY. FMBI Chicago Peers 3 Metro Peers 4 Pre-Tax, Pre-Provision Earnings / RWA ² Efficiency Ratio ¹ Net Interest Margin 4.04% 3.66% 2.94% 3.59% 2.40% 3.00% 3.60% 4.20% 2006 2007 2008 1Q09 2Q09 3Q09 4Q09 58.5% 59.1% 64.7% 61.7% 50.0% 60.0% 70.0% 80.0% 2006 2007 2008 1Q09 2Q09 3Q09 4Q09 1.92% 2.07% 1.33% 1.66% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 2006 2007 2008 1Q09 2Q09 3Q09 4Q09 |
9 9 Stable Core Deposit Funding Profile Stable Core Deposit Funding Profile % Transactional³ 62% 62% 65% 67% 66% Cost of Deposits 1.62% 1.37% 1.20% 1.06% 0.87% Loans / Deposits 96.0% 97.8% 92.6% 92.3% 88.4% Highly transaction oriented deposit base Stable deposit base De minimis amount of brokered CDs ($11mm) Significant excess liquidity Deposit Composition ($bn) ¹ Defined as time deposits less than $100,000. ² Defined as time deposits greater than $100,000. ³ Defined as sum of Demand, Savings & NOW, and Money Market. $5.7 $5.5 $5.7 $5.8 18% 19% 18% 18% 19% 30% 30% 31% 32% 28% 14% 16% 17% 19% 24% 25% 22% 21% 22% 14% 13% 13% 12% 12% $5.9 4Q08 1Q09 2Q09 3Q09 4Q09 Demand Savings & NOW Money Market Retail Time Deposits ¹ Jumbo Time Deposits ² |
10 10 Addressing Realities of Credit Cycle – Addressing Realities of Credit Cycle – Loan Portfolio Overview Loan Portfolio Overview Branch originated Home equity dominated No subprime or credit card Exited indirect auto in 2004 Re-entered 1-4 Family in 2Q09 ~95% in footprint Diversified + granular Significant majority have personal guarantees Stress largely concentrated in residential construction portfolio Consumer Loans = $664mm Commercial 87% Consumer 13% Home Equity 9% Other Consumer 1% C&I 32% Office, Retail & Industrial 23% Residential Construction & Land 6% Commercial Construction & Land 4% Multi-family 6% Other CRE 15% Commercial Loans = $4.5bn Real Estate – 1- 4 Family 3% Total Loans = $5.2bn People we know, businesses we know, markets we understand Note: Loan data as of 31-Dec-09. Excludes $223mm of covered assets acquired in First DuPage FDIC-assisted transaction in 4Q09. |
11 11 Historical Credit Performance Historical Credit Performance Non-Accrual Loans + 90s $9.2 $9.1 $10.7 $15.6 $8.4 $16.3 $5.2 $26.1 $38.3 $44.1 $0 $50 $100 4Q08 1Q09 2Q09 3Q09 4Q09 Net Charge-Offs $105.5 $59.2 $128.4 $129.1 $148.3 $115.0 $138.7 $124.1 $112.9 $135.4 $0 $100 $200 $300 4Q08 1Q09 2Q09 3Q09 4Q09 Residential Construction & Land Portfolio Excl. Residential Construction & Land Note: Excludes $223mm of covered assets acquired in First DuPage FDIC-assisted transaction in 4Q09. NALs + 90s / Loans Residential Construction & Land 20.7% 27.5% 32.3% 34.6% 36.0% Portfolio Excl. Resi. Const. & Land 1.2 2.6 2.4 2.5 2.8 Total 3.1 4.8 4.9 5.0 4.8 NCOs / Avg. Loans - Annualized Residential Construction & Land 7.18% 8.91% 7.31% 4.78% 42.55% Portfolio Excl. Resi. Const. & Land 0.75 1.29 1.33 2.10 3.54 Total 1.38 1.98 1.85 2.32 6.17 $164.8 $257.5 $263.2 $262.8 $248.3 $82.5 $31.3 $24.7 $26.3 $18.3 |
12 12 Addressing Reality of Credit Cycle Addressing Reality of Credit Cycle 2009 problems concentrated in residential construction Reflects illiquidity of suburban market Performance influenced by sales and property values Investment in remediation Expanded resources; early stage triage to liquidation Senior management oversight NPA inflows stabilized and starting to slow; shifting to liquidation 30 – 89 day delinquencies down 15% from 3Q09 Expect shift from NPL to OREO Adjusting carrying values to market and disposition strategy Mix of disposition strategies and types |
13 13 Commercial & Industrial Commercial & Industrial Size of Portfolio ($mm) $1,648 Average Loan Size (000s) $196 Shared National Credits ($mm) $16, < 1% Loans > $5mm 29 $24 $51 $51 $51 $33 $0 $60 $120 $180 4Q08 1Q09 2Q09 3Q09 4Q09 Non-Accrual Loans + 90s ($mm) $6 $12 $7 $12 $24 $0 $10 $20 $30 $40 4Q08 1Q09 2Q09 3Q09 4Q09 Net Charge-Offs ($mm) 4Q09 Loans: $1.6bn 32% Wholesalers 13% NALs + 90s / Loans 1.4% 3.0% 3.1% 3.0% 2.0% NCOs / Avg. Loans¹ 1.30% 3.02% 1.79% 3.14% 5.59% Note: Portfolio data as of 31-Dec-09. Excludes $223mm of covered assets acquired in First DuPage FDIC-assisted transaction in 4Q09. ¹ Annualized Manufacturers 11% Contractors 10% Agricultural 13% Other C&I 53% |
14 14 Office, Retail & Industrial Office, Retail & Industrial Office Retail Industrial Size of Portfolio ($mm) $394 $332 $487 Avg. Loan Size (000s) $826 $953 $860 Loans > $5mm 16 11 13 Owner Occupied 30% 20% 40% % of Loans In-Market 93% 96% 96% $1 $4 $1 $18 $6 $1 $3 $11 $<1 $2 $12 $3 $6 $13 $2 $0 $60 $120 $180 4Q08 1Q09 2Q09 3Q09 4Q09 Non-Accrual Loans + 90s ($mm) Net Charge-Offs ($mm) Office Retail Industrial $0 $0.6 $0.1 $0 $0.1 $0.8 $0 $0.1 $0.1 $1.3 $2.2 $0 $0.3 $2.8 $0.2 $0 $10 $20 $30 $40 4Q08 1Q09 2Q09 3Q09 4Q09 4Q09 Loans: $1.2bn Office 33% Retail 27% Industrial 40% 23% NALs + 90s / Loans NCOs / Average Loans¹ Office 0.2% 5.3% 0.8% 0.6% 1.5% 0.00% 0.00% 0.00% 1.39% 0.33% Retail 1.5 2.1 3.6 3.8 4.0 0.90 0.14 0.13 2.87 3.39 Industrial 0.3 0.2 0.1 0.6 0.5 0.10 0.73 0.11 0.00 0.15 Note: Portfolio data as of 31-Dec-09. Excludes $223mm of covered assets acquired in First DuPage FDIC-assisted transaction in 4Q09. ¹ Annualized |
15 15 Residential Construction & Land Residential Construction & Land $106 $128 $148 $139 $113 $0 $60 $120 $180 4Q08 1Q09 2Q09 3Q09 4Q09 Non-Accrual Loans + 90s ($mm) Net Charge-Offs ($mm) $9 $11 $8 $5 $38 $0 $10 $20 $30 $40 4Q08 1Q09 2Q09 3Q09 4Q09 Mixed & Other 14% 6% Developed Land 45% Substantially Completed 31% Under Construction 6% Raw Land 17% 4Q09 Loans = $314mm Performing Loans Non- Performing Loans Developed Land 37% Substantially Completed 17% Under Construction 2% Raw Land 28% Performing Non- Performing Size of Portfolio ($mm) $201 $113 Avg. Loan Size ($000s) $591 $1,411 Loans > $5mm 3 4 % of Loans In-Market 96% 100% % with Current Appraisal 70% 97% NALs + 90s / Loans 20.7% 27.5% 32.3% 34.6% 36.0% NCOs / Avg. Loans¹ 7.18% 8.91% 7.31% 4.78% 42.55% Mixed & Other <1% Note: Portfolio data as of 31-Dec-09. Excludes $223mm of covered assets acquired in First DuPage FDIC-assisted transaction in 4Q09. ¹ Annualized |
16 16 Commercial Construction & Land Commercial Construction & Land $4.2 $11.9 $4.7 $2.9 $20.9 $0 $60 $120 $180 4Q08 1Q09 2Q09 3Q09 4Q09 Non-Accrual Loans + 90s ($mm) Net Charge-Offs ($mm) $0.0 $0.0 $0.7 ($0.2) $2.7 ($5) $5 $15 $25 $35 $45 4Q08 1Q09 2Q09 3Q09 4Q09 4% NALs + 90s / Loans 1.2% 3.5% 1.4% 1.0% 9.0% NCOs / Avg. Loans¹ 0.00% 0.00% 0.89% (0.29)% 4.04% Performing Non- Performing Size of Portfolio ($mm) $211 $21 Avg. Loan Size ($000s) $1,526 $2,981 Loans > $5mm 12 1 % of Loans In-Market 89% 100% % with Current Appraisal 57% 100% Developed Land 37% Substantially Completed 43% Under Construction 9% Raw Land 11% 4Q09 Loans = $232mm Performing Loans Non- Performing Loans Developed Land 6% Raw Land 94% Mixed & Other <1% Note: Portfolio data as of 31-Dec-09. Excludes $223mm of covered assets acquired in First DuPage FDIC-assisted transaction in 4Q09. ¹ Annualized |
17 17 Multi-family Multi-family $3.3 $10.3 $11.3 $16.1 $12.5 $0 $60 $120 $180 4Q08 1Q09 2Q09 3Q09 4Q09 Non-Accrual Loans + 90s ($mm) Net Charge-Offs ($mm) $0.2 $0.0 $1.1 $0.0 $2.3 $0 $10 $20 $30 $40 4Q08 1Q09 2Q09 3Q09 4Q09 6% 4Q09 Loans = $334mm Chicago Loop 1% Other 99% NALs + 90s / Loans 1.1% 3.3% 3.7% 4.7% 3.8% NCOs / Avg. Loans¹ 0.25% 0.06% 1.41% 0.04% 2.73% Size of Portfolio ($mm) $334 Average Loan Size (000s) $856 Loans > $5mm 15 Note: Portfolio data as of 31-Dec-09. Excludes $223mm of covered assets acquired in First DuPage FDIC-assisted transaction in 4Q09. ¹ Annualized |
18 18 Other Commercial Real Estate Other Commercial Real Estate $9.3 $13.0 $19.2 $23.2 $32.7 $0 $60 $120 $180 4Q08 1Q09 2Q09 3Q09 4Q09 Non-Accrual Loans + 90s ($mm) Net Charge-Offs ($mm) $0.4 $0.1 $2.5 $6.6 $9.1 $0 $10 $20 $30 $40 4Q08 1Q09 2Q09 3Q09 4Q09 4Q09 Loans = $799mm Other 32% Investor- Owned Rental Property 15% Service Stations and Truck Stops 18% Warehouses and Storage 14% Hotels 10% Restaurants 7% Automobile Dealers 5% 15% Size of Portfolio ($mm) $799 Average Loan Size (000s) $797 Loans > $5mm 21 NALs + 90s / Loans 1.3% 1.8% 2.5% 3.1% 4.1% NCOs / Avg. Loans¹ 0.22% 0.04% 1.33% 3.48% 4.67% Note: Portfolio data as of 31-Dec-09. Excludes $223mm of covered assets acquired in First DuPage FDIC-assisted transaction in 4Q09. ¹ Annualized |
19 19 Consumer Consumer $12.5 $17.1 $14.7 $14.3 $14.7 $0 $60 $120 $180 4Q08 1Q09 2Q09 3Q09 4Q09 Non-Accrual Loans + 90s ($mm) Net Charge-Offs ($mm) $2.2 $2.4 $4.6 $3.4 $3.2 $0 $10 $20 $30 $40 4Q08 1Q09 2Q09 3Q09 4Q09 4Q09 Loans = $664mm Predominately home equity dominated 100% branch originated Re-entered 1-4 family in 2Q09 No subprime or credit card exposure Exited indirect installment auto business in 2004 Home Equity 71% Real Estate / 1-4 Family 21% Other Consumer 8% 13% NALs + 90s / Loans 1.7% 2.4% 2.1% 2.1% 2.2% NCOs / Avg. Loans¹ 1.19% 1.34% 2.58% 1.98% 1.90% Home Equity 1-4 Family Size of Portfolio ($mm) $471 $140 Avg. FICO Score 745 713 Avg. Current LTV 58.0% 53.6% Note: Portfolio data as of 31-Dec-09. Excludes $223mm of covered assets acquired in First DuPage FDIC-assisted transaction in 4Q09. ¹ Annualized |
20 20 Securities Portfolio Securities Portfolio Note: Data as of 31-Dec-09. Based on book value. 4Q09 Total Securities = $1.4bn AFS Municipal Securities 47% Collateralized Mortgage Obligations 22% Agency Pass Through 17% Held-to-Maturity Municipal Securities 6% Collateralized Debt Obligations 4% Other Mortgage- Backed Securities 3% U.S. Agency Securities <1% Delevered portfolio Down $931mm since 4Q08 AFS municipal down $257mm since 4Q08 Highly Liquid 39% agency pass through and CMOs AFS municipal securities represent 47% of total portfolio ~99% has third-party bond insurance or other credit enhancements TruPS CDOs carried at 14% of par value $31mm of impairments since 2008 |
21 21 Source: FMBI based on internal data; peer data from SNL Financial Note: Basis point impact shown on 4Q09 RWA. TCE and Tier 1 Common exclude equity credit allocated to TARP warrants. Impact of equity offering net of 5% underwriting discount. ¹ Tier 1 Common generated based on FMBI’s shares outstanding at the end of each quarter times $0.22 per share. ² Pro forma for $150mm common equity raise. ³ Chicago Peers based on median of AMFI, MBFI, MBHI, OSBC, PVTB, TAYC and WTFC. 4 Metro Peers based on median of AMFI, BOKF, CBSM, CFR, FCF, FULT, MBFI, ONB, SUSQ, VLY, WTFC and WTNY. 5 Median based on the following banks with assets between $5bn - $15bn that have redeemed at least 50% of TARP capital: CVBF, FMER, FNB, IBKC, ONB, SBNY, TCBI, TRMK, VLY, WABC and WSBC. 6 SCAP banks based on median that have repaid TARP based on BAC, BBT, C, JPM, USB and WFC. Proactive Capital Management Proactive Capital Management Annual Amount of Tier 1 Common Action Description $mm bps Dividend Reduction – 4Q08 – 1Q09 ¹ Cut quarterly dividend from $0.23 per share to $0.01 per share $45 71bps Balance Sheet Management – 4Q08 – 4Q09 Reduced risk-weighted assets by ~$430mm — 41 Exchange Offers – 3Q09 Exchanged ~$69mm of debt securities for common stock 65 104 Subordinated Debt Tender – 4Q09 Repurchased $20mm of subordinated debt 1 1 Common Offering – 1Q10 $150mm common stock offering 143 228 Total $208 445bps First Midwest 31-Dec-09 with $150mm Common Stock Offering 31-Dec-08 31-Dec-09 As Reported Incl. TARP² Excl. TARP² TCE / TA 5.23% 6.29% 8.20% 8.20% Tier 1 Common 6.79 7.76 10.03 10.03 Tier 1 11.60 12.19 14.47 11.38 Total Capital 14.36 14.26 6.53 13.45 Peers – 30-Sep-09 Chicago Peers3 Metro Peers 4 4.48% 6.89% 4.09 8.72 9.86 11.27 12.75 13.91 Redeemed TARP – 30-Sep-09 Banks with $5bn to $15bn in Assets 5 SCAP Banks 6 8.65% 5.55% 11.43 8.27 12.09 10.63 13.80 14.13 |
22 22 Illustrative Stress Test - Illustrative Stress Test - SCAP SCAP Source: Federal Reserve Board of Governors MEMO: SCAP Banks - 2-Yr. Losses Fifth Third 10.5 % Regions 9.1 BB&T 8.6 KeyCorp 8.5 U.S. Bancorp 8.4 SunTrust 8.3 Key Assumptions SCAP loss estimates based on published ranges for “More Adverse” scenario Credit given for charge-offs and OREO impairments taken in 2009 Reserves in excess 1.5% of loans are released Pre-tax, pre-provision earnings for 2010 are based on 2009 results DTA limited to 10% of Tier 1 Capital SCAP More Adverse 4Q 2008 Loss Range Implied Losses Balance Low High Low High Commercial Real Estate Construction $ 812 15.0 % 18.0 % $ 122 $ 146 Multi-Family 306 10.0 11.0 31 34 Other 1,955 7.0 9.0 137 176 CRE Subtotal $ 3,073 - - $ 289 $ 356 Non-CRE 1-4 Family - First Lien $ 383 7.0 % 8.5 % $ 27 $ 33 Home Equity & Junior Lien 544 12.0 16.0 65 87 Commercial & Industrial 1,200 5.0 8.0 60 96 Credit Cards 2 18.0 20.0 0 0 Other Consumer 69 8.0 12.0 6 8 Other Loans 87 4.0 10.0 3 9 Total Loans & Leases $ 5,358 - - $ 451 $ 589 Implied 2-Year Loss Rate 8.4 % 11.0 % Charges Taken in 2009 3.4 3.4 Remaining Losses 5.0 7.6 2-Year Cumulative Loss Rate Illustrative Capital Required / (Excess) to Achieve Capital Targets 8.0 % 9.0 % 10.0 % 11.0 % 4.0% Tier 1 Common / 6.0% Tier 1 $(188) $(132) $(76) $(20) 4.0% Tier 1 Common / 6.0% Tier 1 - w/ TARP Repayment (129) (73) (17) 36 6.0% Tier 1 Common / 8.0% Tier 1 $(63) $(7) $ 45 $ 96 6.0% Tier 1 Common / 8.0% Tier 1 - w/ TARP Repayment (4) 48 99 150 |
23 23 Strategies and Priorities for 2010 Strategies and Priorities for 2010 Continued solid core earnings Endeavor to enhance pre-tax, pre-provision earnings Strive to continue expansion of net interest margin Managed through credit cycle Credit costs remain high as remediation focus continues and liquidation strategies unfold NPA trends slow, with declines dependent upon liquidation success and incremental stress in CRE Position First Midwest for long-term success Expand customer relationships Deepen share in existing markets, develop adjacent markets Pursuit of growth opportunities: organic and acquired |
24 24 Organization Strength and Capacity Organization Strength and Capacity Strong market reputation; 40+ years Experienced and tenured management team Key management: 25+ years with FMBI and in markets Organized for sales Relationship focused Robust sales force Operational capacity IT network infrastructure updated in 2008 Three operations centers – room to expand M&A tested Active and successful acquiror FDIC and related experience |
25 25 Potential Opportunities Potential Opportunities First DuPage transaction viewed by Company as a success Deposit retention exceeding management expectations Conversion, integration and servicing going as planned Expect numerous future opportunities in Chicago market 45 banks with Texas Ratios ¹ greater than 100% in Chicago area Asset Size Number of Institutions Total Deposits Total Assets $1bn - $5bn 10 $19.8bn $24.4bn $500mm - $1bn 6 $3.3bn $3.8bn < $500mm 29 $5.4bn $6.2bn Total 45 $28.5bn $34.4bn Creates opportunity for organic and acquired growth ¹ Source: SNL Financial. Texas Ratio = NPAs + 90s / TCE + Reserves. |
26 26 Investment Highlights Investment Highlights Solid core operating performance Stable core deposit funding profile Addressing realities of credit cycle Prudently building capital / proactive capital management Experienced management team to take advantage of potential opportunities |
27 27 Appendix Appendix |
28 28 Reconciliation of Non-GAAP Measures Reconciliation of Non-GAAP Measures ($ in 000s) ($ in 000s) Note: The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (GAAP) and general practice within the banking industry. As a supplement to GAAP, the Company has provided this non-GAAP performance result. The Company believes that this non-GAAP financial measure is useful because it allows investors to assess the Company’s operating performance. Although this non-GAAP financial measure is intended to enhance investors’ understanding of the Company’s business and performance, this non-GAAP financial measure should not be considered an alternative to GAAP. For the 3-Months Ended 2006 2007 2008 31-Mar-09 30-Jun-09 30-Sep-09 31-Dec-09 Income (Loss) Before Taxes $ 152,298 $ 94,012 $ 36,045 $(3,814) $(3,710) $(2,569) $(65,833) Provision for Loan Losses 10,229 7,233 70,254 48,410 36,262 38,000 93,000 Pre-Tax, Pre-Provision Earnings (Loss) $ 162,527 $ 101,245 $ 106,299 $ 44,596 $ 32,552 $ 35,431 $ 27,167 Non-Operating Items Securities Gains (Losses), net $ 4,269 $(50,801) $(35,611) $ 8,222 $ 6,635 $(6,975) $(5,772) Gain on FDIC-Assisted Transaction - - - - - - 13,071 Gains on Early Extinguishment of Debt - - - - - 13,991 1,267 Write-Downs of Bank-Owned Life Insurance (412) (699) (10,360) - - - - Losses Realized on Other Real Estate Owned 304 514 (1,566) (315) (2,387) (1,801) (14,051) FDIC Special Assessment - - - - (3,500) - - Total Non Operating Items $ 4,161 $(50,986) $(47,537) $ 7,907 $ 748 $ 5,215 $(5,485) Pre-Tax, Pre-Provision Core Operating Earnings $ 158,366 $ 152,231 $ 153,836 $ 36,689 $ 31,804 $ 30,216 $ 32,652 Risk-Weighted Assets $ 6,259,983 $ 6,340,614 $ 6,609,359 $ 6,600,684 $ 6,335,010 $ 6,234,283 $ 6,262,883 Pre-Tax, Pre-Provision Earnings / RWA 2.53 % 2.40 % 2.33 % 2.22 % 2.01 % 1.94 % 2.09 % |