Exhibit 99.1
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| | News Release |
 | | First Midwest Bancorp, Inc. | | First Midwest Bancorp, Inc. One Pierce Place, Suite 1500 Itasca, Illinois 60143 (630) 875-7450 |
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| FOR IMMEDIATE RELEASE | | CONTACT: | | Paul F. Clemens |
| | | Chief Financial Officer (630) 875-7347 |
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| TRADED: | | NASDAQ Global Select Market | | | | www.firstmidwest.com |
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| SYMBOL: | | FMBI | | | | |
FIRST MIDWEST BANCORP, INC. ANNOUNCES 2009
FOURTH QUARTER AND FULL YEAR RESULTS
Solid Core Operating Earnings – Proactively Addressing Credit – Improved Capital Position
Operating Performance
| • | | Full year loss of $25.8 million and diluted loss per share of $0.71 compared to 2008 full year earnings of $49.3 million and diluted earnings per share of $1.00. |
| • | | Net loss of $37.5 million for fourth quarter 2009 vs. $3.4 million net income for third quarter 2009 and $26.9 million net loss for fourth quarter 2008. |
| • | | Pre-tax, pre-provision core operating earnings of $32.7 million for fourth quarter 2009, up 8% from third quarter 2009. |
| • | | Net interest margin of 4.04% for fourth quarter 2009, up 38 basis points from third quarter 2009. |
| • | | Pre-tax gain of $13.1 million resulting from acquisition of First DuPage Bank and net securities loss of $5.8 million during the fourth quarter. |
Capital and Credit
| • | | Tangible common equity to tangible assets of 6.29%, up 106 basis points from prior year end. |
| • | | Non-accrual plus 90 days past due loans totaled $248.3 million down 6% from September 30, 2009. |
| • | | Loan loss reserves to total loans increased 25 basis points to 2.78% from September 30, 2009, with provisions of $93.0 million exceeding net charge-offs of $82.5 million. |
| • | | Other real estate owned of $57.1 million at December 31, 2009, net of valuation write-downs and losses on disposition totaling $14.1 million for the fourth quarter 2009. |
ITASCA, IL, JANUARY 12, 2010 – 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 2009. Net loss for the quarter was $37.5
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million, before adjustment for preferred dividends and non-vested restricted shares, with a loss of $39.5 million, or $0.73 loss per share, available to common shareholders after such adjustments. This compares to net income of $3.4 million and $773,000, or $0.02 per share, respectively, for third quarter 2009, and a net loss of $26.9 million and $27.6 million, or $0.57 loss per share, respectively for fourth quarter 2008.
Summary Update
In making the announcement, Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc., said, “Performance for 2009 reflects balanced management of our credit, capital, and core business in what has been an extremely difficult environment. As we close 2009, we have worked to align problem asset carrying values with our planned disposition strategies while confronting lower property values. While painful in the short term, these actions better position us to work out problem loans in the most expedient and economically responsible manner. Importantly, we have been able to absorb these significantly higher costs while strengthening our capital position, as we have benefited from continued solid operating performance. Our core business has benefited from continued sales, greatly improved margins, and controlled spending. Our tangible common equity now stands at 6.29%, 106 basis points higher than last year.”
Mr. Scudder continued, “As we enter 2010, signs of economic recovery are emerging but remain tenuous. In what promises to again be a challenging credit environment, our priorities remain centered on remediating problem assets, managing capital, and expanding our core business. By doing so, we better position ourselves to benefit from economic recovery and pursue opportunities for growth when other less healthy institutions cannot — thereby enhancing the long-term value of the Company for our shareholders.”
Operating Performance
The Company generated pre-tax, pre-provision core operating earnings, of $32.7 million for fourth quarter 2009, up 8.1% from third quarter 2009 and down 21.2% from fourth quarter 2008. A reconciliation of earnings in accordance with generally accepted accounting principles (“GAAP”) to non-GAAP pre-tax, pre-provision core operating earnings is presented on page 11 of this earnings release.
The increase from third quarter 2009 was due primarily to improved net interest income, while the decline from fourth quarter 2008 primarily reflects the impact of higher compensation-related expenses, loan remediation costs, and FDIC premiums on deposits.
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Pre-tax, pre-provision core operating earnings for full year 2009 were $131.4 million, a decrease of 14.6% from 2008. Improved net interest income was more than offset by lower fee-based revenue and higher remediation costs and FDIC premiums.
Total loans as of December 31, 2009 were $5.2 billion, a decrease of $102.8 million and $156.8 million from September 30, 2009 and December 31, 2008, respectively.
Average core transactional deposits for fourth quarter 2009 were $3.9 billion, an increase of $29.7 million from third quarter 2009 and $440.7 million, or 12.8%, from fourth quarter 2008. Average core transactional deposits for the full year 2009 increased $175.7 million, or 4.9%, from 2008 due in large part to customers’ desire to maintain more liquid, short-term deposits.
Tax-equivalent net interest margin was 4.04% for fourth quarter 2009, an increase from 3.66% for third quarter 2009 and 3.71% for fourth quarter 2008. The yield on average earning assets for fourth quarter 2009 improved 10 basis points compared to third quarter 2009, while the Company’s cost of funds declined 31 basis points compared to third quarter 2009. The yield on average earning assets for fourth quarter 2009 declined 45 basis points compared to fourth quarter 2008 and the Company’s cost of funds declined 86 basis points compared to the same period in 2008.
Fee-based revenues were $22.0 million and $85.2 million for fourth quarter and full year 2009, respectively. These represented decreases of 4.7% and 10.4%, respectively, from the same periods of 2008 and largely reflect the impact of reduced consumer spending. For the third consecutive quarter, fee-based revenues improved, reflecting increases in trust, card-based, and other service charge revenues.
Bank-owned life insurance income for fourth quarter 2009 increased $9.1 million from fourth quarter 2008, reflecting a $10.4 million charge in fourth quarter 2008 related to a reduction in the cash surrender value of bank-owned life insurance. Other income for fourth quarter and full year 2009 increased from the same periods in 2008 as a result of a market adjustment related to a change in value of certain assets held under a non-qualified deferred compensation plan. The market adjustment for each period is substantially offset by a corresponding amount in compensation expense.
For fourth quarter 2009, noninterest expense increased $13.9 million compared to third quarter 2009 and $23.9 million from fourth quarter 2008. The increase from third quarter 2009 was due primarily to losses related to other real estate owned. The increase from fourth quarter 2008 was also due to losses related to other real estate owned in addition to higher FDIC premiums, higher pension and profit-sharing expense, and higher compensation expense associated with the market adjustment referred to above.
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For full year 2009, noninterest expense increased $40.5 million from full year 2008 with the increase due primarily to a $20.0 million increase in losses and remediation expenses related to other real estate owned, as well as a $12.6 million increase in FDIC premiums and the previously referenced market adjustment for the Company’s non-qualified deferred compensation plan. The increase in FDIC premiums expense included an industry-wide special assessment of $3.5 million.
Asset Quality
Non-accrual plus 90 day past due loans and still accruing loans as of December 31, 2009 were $248.3 million, down 6% compared to September 30, 2009, with residential construction loans comprising 45% of the total. Loans 30-89 days past due totaled $37.9 million at December 31, 2009, down 15% from September 30, 2009.
During fourth quarter 2009, the Company increased its reserve for loan losses to $144.8 million, up $10.5 million from September 30, 2009 and $50.9 million from December 31, 2008. The reserve for loan losses represented 2.78% of total loans outstanding at December 31, 2009, compared to 2.53% at September 30, 2009 and 1.75% at December 31, 2008. The reserve for loan losses as a percent of nonaccrual plus 90-day past due loans was 58% at December 31, 2009, up from 51% and 57% at September 30, 2009 and December 31, 2008, respectively.
Net charge-offs totaled $82.5 million during fourth quarter 2009, compared to $31.3 million in third quarter 2009. Net charge-offs for full year 2009 totaled $164.7 million or 3.08% of average loans, as compared to $38.2 million or 0.74% of average loans for full year 2008.
The provision for loan losses for fourth quarter 2009 was $93.0 million and $215.7 million for full year 2009, compared to $42.4 million and $70.3 million for fourth quarter and full year 2008, respectively.
Charge-offs and provisioning during 2009 were largely influenced by the credit performance of the Company’s residential construction and land loan portfolio. This portfolio currently represents only 6% of total loans but accounted for 45% of total non-performing loans and 46% of total fourth quarter charge-offs. These charge-offs reflect management’s continuing efforts to align the carrying value of these assets with the value of underlying collateral based upon more aggressive disposition strategies and recognizing falling property values. To that end, updated appraisals were received on some 80% of the non-performing residential construction portfolio during fourth quarter 2009.
Other real estate owned (OREO) was $57.1 million as of December 31, 2009 compared to $57.9 million as of September 30, 2009. During fourth quarter the Company reduced the carrying value of OREO properties by $9.2 million reflective of existing market conditions and more aggressive
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disposition strategies. Additionally OREO with a carrying value of $13.7 million was sold at a net loss of $4.9 million, bringing full year sales to $25.3 million and losses of $6.0 million.
Securities Portfolio
The Company’s $1.3 billion available-for-sale portfolio remains highly liquid with approximately 95% comprised of municipals, CMOs, and agency pass-through securities. The remainder consists of trust-preferred collateralized debt obligation pools (CDOs) with a fair value of $11.7 million and an unrealized loss of $42.6 million, and miscellaneous other securities totaling $46.1 million.
Net securities losses were $5.8 million for fourth quarter 2009 and included an other-than-temporary impairment of $6.0 million associated with the Company’s CDOs.
Acquisition of First DuPage Bank
On October 23, 2009 the Company acquired substantially all the assets of the $260 million former First DuPage Bank in an FDIC-assisted transaction generating a gain of $13.1 million. Loans comprise the majority of the assets acquired and are subject to a loss sharing arrangement with the FDIC whereby the Company is indemnified against the majority of any losses incurred related to these loans. The loans acquired from the former First DuPage Bank, including the FDIC indemnification, total $223.2 million at December 31, 2009 and are classified and presented as Covered Assets in the statement of financial condition. These assets are excluded from the asset quality presentation, given the loss share indemnification from the FDIC.
Debt and Capital Management
During fourth quarter 2009 the Company retired for cash $20 million of 5.95% subordinated debt, generating a pre-tax gain of $1.3 million, leaving a balance of $50.5 million at December 31, 2009.
Regulatory and tangible common equity ratios were improved in comparison to December 31, 2008. As reflected in the following table, all regulatory mandated ratios for characterization as “well-capitalized” were significantly exceeded as of December 31, 2009.
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| | | December 31,
2009 | | | December 31,
2008 | | | Minimum
“Well-
Capitalized”
Level | | | Excess Over
Required
Minimums at
December 31, 2009 |
| | | | | | | | | | | | (Amounts in millions) |
Regulatory capital ratios: | | | | | | | | | | | | | | | |
Total capital to risk-weighted assets | | 14.26 | % | | 14.36 | % | | 10.00 | % | | 43 | % | | $ | 267 |
Tier 1 capital to risk-weighted assets | | 12.19 | % | | 11.60 | % | | 6.00 | % | | 103 | % | | $ | 388 |
Tier 1 leverage to average assets | | 10.18 | % | | 9.41 | % | | 5.00 | % | | 104 | % | | $ | 389 |
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Regulatory capital ratios, excluding preferred stock: | | | | | | | | | | | | | | | |
Total capital to risk-weighted assets | | 11.18 | % | | 11.44 | % | | 10.00 | % | | 12 | % | | $ | 74 |
Tier 1 capital to risk-weighted assets | | 9.11 | % | | 8.68 | % | | 6.00 | % | | 52 | % | | $ | 195 |
Tier 1 leverage to average assets | | 7.61 | % | | 7.04 | % | | 5.00 | % | | 52 | % | | $ | 196 |
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Tier 1 common capital to risk-weighted assets | | 7.76 | % | | 6.79 | % | | N/A | | | N/A | | | | N/A |
Tangible equity ratios: | | | | | | | | | | | | | | | |
Tangible common equity to tangible assets | | 6.29 | % | | 5.23 | % | | N/A | | | N/A | | | | N/A |
Tangible common equity, excluding other comprehensive loss, to tangible assets | | 6.54 | % | | 5.45 | % | | N/A | | | N/A | | | | N/A |
Tangible common equity to risk-weighted assets | | 7.46 | % | | 6.53 | % | | N/A | | | N/A | | | | N/A |
The Board of Directors reviews the Company’s capital plan each quarter, giving consideration to the current and expected operating environment, as well as an evaluation of various capital alternatives.
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 approximately 100 offices located in 62 communities, primarily in metropolitan Chicago.
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, 2008 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.
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Conference Call
A conference call to discuss the Company’s results, outlook and related matters will be held on Tuesday, January 12, 2010 at
6:00 PM(ET). Members of the public who would like to listen to the conference call should dial (866) 713-8310 (U.S. domestic) or
(617) 597-5308 (international) and enter passcode number 538 37 175. The number should be dialed 10 to 15 minutes prior to the start of the conference call. There is no charge to access the call. The conference call will also be accessible as an audio webcast through the Investor Relations section of the Company’s website, www.firstmidwest.com/aboutinvestor_overview.asp. For those unable to listen to the live broadcast, a replay will be available on the Company’s website or by dialing (888) 286-8010 (U.S. domestic) or (617) 801-6888 (international) passcode number 562 40 393, beginning at 9:00 PM(ET) on January 12, 2010 until 11:59 PM(ET) on January 20, 2010. 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.
Accompanying Financial Statements and Tables
Accompanying this press release is the following unaudited financial information:
| • | | Operating Highlights, Balance Sheet Highlights, and Capital Ratios (1 page) |
| • | | Condensed Consolidated Statements of Condition (1 page) |
| • | | Condensed Consolidated Statements of Income (1 page) |
| • | | Pre-Tax, Pre-Provision Core Operating Earnings (1 page) |
| • | | Loan Portfolio Composition (1 page) |
| • | | Charge-off Data (1 page) |
| • | | Securities Available-for-Sale (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 12, 2010 |
Operating Highlights
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| Unaudited | | Quarters Ended | | | Years Ended | |
| (Dollar amounts in thousands except per share data) | | December 31, 2009 | | | September 30, 2009 | | | December 31, 2008 | | | December 31, 2009 | | | December 31, 2008 | |
Net (loss) income | | $ | (37,491 | ) | | $ | 3,351 | | | $ | (26,890 | ) | | $ | (25,750 | ) | | $ | 49,336 | |
Net (loss) income applicable to common shares | | | (39,542 | ) | | | 773 | | | | (27,568 | ) | | | (35,551 | ) | | | 48,482 | |
Diluted (loss) earnings per common share | | $ | (0.73 | ) | | $ | 0.02 | | | $ | (0.57 | ) | | $ | (0.71 | ) | | $ | 1.00 | |
Return on average common equity | | | (19.84 | )% | | | 0.43 | % | | | (13.90 | )% | | | (4.84 | )% | | | 6.46 | % |
Return on average assets | | | (1.92 | )% | | | 0.17 | % | | | (1.28 | )% | | | (0.32 | )% | | | 0.60 | % |
Net interest margin | | | 4.04 | % | | | 3.66 | % | | | 3.71 | % | | | 3.72 | % | | | 3.61 | % |
Efficiency ratio | | | 58.48 | % | | | 59.13 | % | | | 59.06 | % | | | 57.86 | % | | | 53.49 | % |
Balance Sheet Highlights
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| Unaudited | | As Of | |
| (Dollar amounts in thousands except per share data) | | December 31, 2009 | | | September 30, 2009 | | | December 31, 2008 | |
Total assets | | $ | 7,710,672 | | | $ | 7,678,434 | | | $ | 8,528,341 | |
Total loans, excluding covered loans | | | 5,203,246 | | | | 5,306,068 | | | | 5,360,063 | |
Total deposits | | | 5,885,279 | | | | 5,749,153 | | | | 5,585,754 | |
Total stockholders’ equity | | | 941,521 | | | | 983,579 | | | | 908,279 | |
Common stockholders’ equity | | | 748,521 | | | | 790,579 | | | | 715,949 | |
Book value per share | | $ | 13.66 | | | $ | 14.43 | | | $ | 14.72 | |
Period end shares outstanding | | | 54,793 | | | | 54,800 | | | | 48,630 | |
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| Capital Ratios | | | | | | | | | | | | |
| |
| Unaudited | | As Of | |
| | | December 31, 2009 | | | September 30, 2009 | | | December 31, 2008 | |
Regulatory capital ratios: | | | | | | | | | | | | |
Total capital to risk-weighted assets | | | 14.26 | % | | | 15.27 | % | | | 14.36 | % |
Tier 1 capital to risk-weighted assets | | | 12.19 | % | | | 12.88 | % | | | 11.60 | % |
Tier 1 leverage to average assets | | | 10.18 | % | | | 10.52 | % | | | 9.41 | % |
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Regulatory capital ratios, excluding preferred stock: | | | | | | | | | | | | |
Total capital to risk-weighted assets | | | 11.18 | % | | | 12.18 | % | | | 11.44 | % |
Tier 1 capital to risk-weighted assets | | | 9.11 | % | | | 9.78 | % | | | 8.68 | % |
Tier 1 leverage to average assets | | | 7.61 | % | | | 7.99 | % | | | 7.04 | % |
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Tier 1 common capital to risk-weighted assets | | | 7.76 | % | | | 8.43 | % | | | 6.79 | % |
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Tangible common equity ratios: | | | | | | | | | | | | |
Tangible common equity to tangible assets | | | 6.29 | % | | | 6.88 | % | | | 5.23 | % |
Tangible common equity, excluding other comprehensive loss, to tangible assets | | | 6.54 | % | | | 7.10 | % | | | 5.45 | % |
Tangible common equity to risk-weighted assets | | | 7.46 | % | | | 8.16 | % | | | 6.53 | % |
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| First Midwest Bancorp, Inc. | | Press Release Dated January 12, 2010 |
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Condensed Consolidated Statements of Condition Unaudited | | December 31, | |
| (Amounts in thousands) | | 2009 | | | 2008 | |
| | |
Assets | | | | | | | | |
Cash and due from banks | | $ | 101,177 | | | $ | 106,082 | |
Funds sold and other short-term investments | | | 26,202 | | | | 8,226 | |
Trading account securities | | | 14,236 | | | | 12,358 | |
Securities available-for-sale | | | 1,266,760 | | | | 2,216,186 | |
Securities held-to-maturity, at amortized cost | | | 84,182 | | | | 84,306 | |
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | | | 56,428 | | | | 54,767 | |
Loans | | | 5,203,246 | | | | 5,360,063 | |
Reserve for loan losses | | | (144,808 | ) | | | (93,869 | ) |
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| | |
Net loans | | | 5,058,438 | | | | 5,266,194 | |
| | | | | | | | |
Other real estate owned | | | 57,137 | | | | 24,368 | |
Covered assets | | | 223,245 | | | | — | |
Premises, furniture, and equipment | | | 120,642 | | | | 120,035 | |
Investment in bank owned life insurance | | | 197,962 | | | | 198,533 | |
Goodwill and other intangible assets | | | 281,479 | | | | 284,548 | |
Accrued interest receivable and other assets | | | 222,784 | | | | 152,738 | |
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| | |
Total assets | | $ | 7,710,672 | | | $ | 8,528,341 | |
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Liabilities and Stockholders’ Equity | | | | | | | | |
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Deposits | | | | | | | | |
Transactional deposits | | $ | 3,885,885 | | | $ | 3,457,954 | |
Time deposits | | | 1,988,486 | | | | 1,950,362 | |
Brokered deposits | | | 10,908 | | | | 177,438 | |
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| | |
Total deposits | | | 5,885,279 | | | | 5,585,754 | |
Borrowed funds | | | 691,176 | | | | 1,698,334 | |
Subordinated debt | | | 137,735 | | | | 232,409 | |
Accrued interest payable and other liabilities | | | 54,961 | | | | 103,565 | |
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| | |
Total liabilities | | | 6,769,151 | | | | 7,620,062 | |
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Preferred stock | | | 190,233 | | | | 189,617 | |
Common stock | | | 670 | | | | 613 | |
Additional paid-in capital | | | 252,322 | | | | 210,698 | |
Retained earnings | | | 810,626 | | | | 837,390 | |
Accumulated other comprehensive (loss) | | | (18,666 | ) | | | (18,042 | ) |
Treasury stock, at cost | | | (293,664 | ) | | | (311,997 | ) |
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| | |
Total stockholders’ equity | | | 941,521 | | | | 908,279 | |
| | | | | | | | |
| | |
Total liabilities and stockholders’ equity | | $ | 7,710,672 | | | $ | 8,528,341 | |
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| First Midwest Bancorp, Inc. | | Press Release Dated January 12, 2010 |
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Condensed Consolidated Statements of Income Unaudited | | Quarters Ended | | | Years Ended | |
| (Amounts in thousands, except per share data) | | December 31,
2009 | | | December 31,
2008 | | | December 31,
2009 | | | December 31,
2008 | |
Interest Income | | | | | | | | | | | | | | | | |
Loans | | $ | 65,668 | | | $ | 71,849 | | | $ | 261,221 | | | $ | 302,931 | |
Securities | | | 14,848 | | | | 25,583 | | | | 77,486 | | | | 104,448 | |
Covered assets | | | 1,419 | | | | — | | | | 1,419 | | | | — | |
Other | | | 435 | | | | 501 | | | | 1,625 | | | | 1,828 | |
| | | | | | | | | | | | | | | | |
Total interest income | | | 82,370 | | | | 97,933 | | | | 341,751 | | | | 409,207 | |
| | | | | | | | | | | | | | | | |
Interest Expense | | | | | | | | | | | | | | | | |
Deposits | | | 12,774 | | | | 22,802 | | | | 64,177 | | | | 110,622 | |
Borrowed funds | | | 1,276 | | | | 6,416 | | | | 12,569 | | | | 37,192 | |
Subordinated debt | | | 2,379 | | | | 3,702 | | | | 13,473 | | | | 14,796 | |
| | | | | | | | | | | | | | | | |
Total interest expense | | | 16,429 | | | | 32,920 | | | | 90,219 | | | | 162,610 | |
| | | | | | | | | | | | | | | | |
Net interest income | | | 65,941 | | | | 65,013 | | | | 251,532 | | | | 246,597 | |
Provision for loan losses | | | 93,000 | | | | 42,385 | | | | 215,672 | | | | 70,254 | |
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Net interest income (loss) after provision for loan losses | | | (27,059 | ) | | | 22,628 | | | | 35,860 | | | | 176,343 | |
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Noninterest Income | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | 9,977 | | | | 11,206 | | | | 38,754 | | | | 44,987 | |
Trust and investment management fees | | | 3,704 | | | | 3,420 | | | | 14,059 | | | | 15,130 | |
Other service charges, commissions, and fees | | | 4,280 | | | | 4,554 | | | | 16,529 | | | | 18,846 | |
Card-based fees | | | 4,000 | | | | 3,868 | | | | 15,826 | | | | 16,143 | |
| | | | | | | | | | | | | | | | |
Subtotal, fee-based revenues | | | 21,961 | | | | 23,048 | | | | 85,168 | | | | 95,106 | |
Bank owned life insurance income | | | 281 | | | | (8,858 | ) | | | 2,263 | | | | (2,369 | ) |
Securities gains (losses) net | | | (5,772 | ) | | | (34,215 | ) | | | 2,110 | | | | (35,611 | ) |
Gains on FDIC-assisted transaction | | | 13,071 | | | | — | | | | 13,071 | | | | — | |
Gains on early extinguishment of debt | | | 1,267 | | | | — | | | | 15,258 | | | | — | |
Other | | | 939 | | | | (2,104 | ) | | | 5,132 | | | | (3,119 | ) |
| | | | | | | | | | | | | | | | |
Total noninterest income (loss) | | | 31,747 | | | | (22,129 | ) | | | 123,002 | | | | 54,007 | |
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Noninterest Expense | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 27,592 | | | | 20,356 | | | | 106,548 | | | | 99,910 | |
Federal Deposit Insurance Corporation (“FDIC”) insurance | | | 2,720 | | | | 301 | | | | 13,673 | | | | 1,065 | |
Net occupancy expense | | | 5,453 | | | | 5,967 | | | | 22,762 | | | | 23,378 | |
Losses realized on other real estate owned | | | 14,051 | | | | 576 | | | | 18,554 | | | | 1,566 | |
Other real estate owned expense, net | | | 1,642 | | | | 713 | | | | 4,905 | | | | 1,843 | |
Loan remediation expense | | | 2,013 | | | | 369 | | | | 4,685 | | | | 888 | |
Equipment expense | | | 2,208 | | | | 2,454 | | | | 8,962 | | | | 9,956 | |
Technology and related costs | | | 2,375 | | | | 1,848 | | | | 8,987 | | | | 7,429 | |
Other | | | 12,467 | | | | 13,997 | | | | 45,712 | | | | 48,270 | |
| | | | | | | | | | | | | | | | |
Total noninterest expense | | | 70,521 | | | | 46,581 | | | | 234,788 | | | | 194,305 | |
| | | | | | | | | | | | | | | | |
(Loss) income before taxes | | | (65,833 | ) | | | (46,082 | ) | | | (75,926 | ) | | | 36,045 | |
Income tax (benefit) expense | | | (28,342 | ) | | | (19,192 | ) | | | (50,176 | ) | | | (13,291 | ) |
| | | | | | | | | | | | | | | | |
Net (loss) income | | | (37,491 | ) | | | (26,890 | ) | | | (25,750 | ) | | | 49,336 | |
Preferred dividends | | | (2,569 | ) | | | (712 | ) | | | (10,265 | ) | | | (712 | ) |
Net loss (income) applicable to non-vested restricted shares | | | 518 | | | | 34 | | | | 464 | | | | (142 | ) |
| | | | | | | | | | | | | | | | |
Net (Loss) Income Applicable to Common Shares | | $ | (39,542 | ) | | $ | (27,568 | ) | | $ | (35,551 | ) | | | 48,482 | |
| | | | | | | | | | | | | | | | |
Diluted (Loss) Earnings Per Common Share | | $ | (0.73 | ) | | $ | (0.57 | ) | | $ | (0.71 | ) | | | 1.00 | |
Dividends Declared Per Common Share | | $ | 0.01 | | | $ | 0.23 | | | $ | 0.04 | | | | 1.155 | |
Weighted Average Diluted Shares Outstanding | | | 54,152 | | | | 48,508 | | | | 50,034 | | | | 48,516 | |
10
| | |
| First Midwest Bancorp, Inc. | | Press Release Dated January 12, 2010 |
Pre-Tax, Pre-Provision Core Operating Earnings(1)
| | | | | | | | | | | | | | | | | | | | |
| Unaudited | | Quarters Ended | | | Years Ended | |
| (Dollar amounts in thousands) | | December 31,
2009 | | | September 30,
2009 | | | December 31,
2008 | | | December 31,
2009 | | | December 31,
2008 | |
(Loss) income before taxes | | $ | (65,833 | ) | | $ | (2,569 | ) | | $ | (46,082 | ) | | $ | (75,926 | ) | | $ | 36,045 | |
Provision for loan losses | | | 93,000 | | | | 38,000 | | | | 42,385 | | | | 215,672 | | | | 70,254 | |
| | | | | | | | | | | | | | | | | | | | |
Pre-tax, pre-provision earnings (loss) | | | 27,167 | | | | 35,431 | | | | (3,697 | ) | | | 139,746 | | | | 106,299 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Non-Operating Items | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Securities gains (losses), net | | | (5,772 | ) | | | (6,975 | ) | | | (34,215 | ) | | | 2,110 | | | | (35,611 | ) |
Gains on FDIC-assisted transaction | | | 13,071 | | | | — | | | | — | | | | 13,071 | | | | — | |
Gains on early extinguishment of debt | | | 1,267 | | | | 13,991 | | | | — | | | | 15,258 | | | | — | |
Write-down of bank owned life insurance included in non-interest income | | | — | | | | — | | | | (10,360 | ) | | | — | | | | (10,360 | ) |
Losses realized on other real estate owned | | | (14,051 | ) | | | (1,801 | ) | | | (576 | ) | | | (18,554 | ) | | | (1,566 | ) |
FDIC special deposit insurance assessment | | | — | | | | — | | | | — | | | | (3,500 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total non-operating items | | | (5,485 | ) | | | 5,215 | | | | (45,151 | ) | | | 8,385 | | | | (47,537 | ) |
| | | | | | | | | | | | | | | | | | | | |
Pre-tax, pre-provision core operating earnings | | $ | 32,652 | | | $ | 30,216 | | | $ | 41,454 | | | $ | 131,361 | | | $ | 153,836 | |
| | | | | | | | | | | | | | | | | | | | |
Risk-weighted assets | | $ | 6,262,883 | | | $ | 6,234,283 | | | $ | 6,609,359 | | | $ | 6,262,883 | | | $ | 6,609,359 | |
Pre-tax, pre-provision core operating earnings to risk-weighted assets | | | 2.07 | % | | | 1.92 | % | | | 2.50 | % | | | 2.10 | % | | | 2.33 | % |
| (1) | 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. |
11
| | |
| First Midwest Bancorp, Inc. | | Press Release Dated January 12, 2010 |
| | | | | | | | | | | | | | | | | | |
| Unaudited | | As Of | | Percent Change From | |
| (Dollar amounts in thousands) | | 12/31/09 | | % of
Total | | | 9/30/09 | | 12/31/08 | | 9/30/09 | | | 12/31/08 | |
| | | | | | |
Loan Portfolio Composition | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | $ | 1,438,063 | | 27.6 | % | | $ | 1,484,601 | | $ | 1,490,101 | | (3.1 | )% | | (3.5 | )% |
Agricultural and farmland | | | 209,945 | | 4.0 | % | | | 200,955 | | | 216,814 | | 4.5 | % | | (3.2 | )% |
Commercial real estate: | | | | | | | | | | | | | | | | | | |
Office, retail, and industrial | | | 1,212,965 | | 23.3 | % | | | 1,151,276 | | | 1,025,241 | | 5.4 | % | | 18.3 | % |
Residential construction and land | | | 313,919 | | 6.0 | % | | | 400,502 | | | 509,059 | | (21.6 | )% | | (38.3 | )% |
Commercial construction and land | | | 231,518 | | 4.5 | % | | | 301,462 | | | 356,575 | | (23.2 | )% | | (35.1 | )% |
Multifamily | | | 333,961 | | 6.4 | % | | | 342,807 | | | 286,963 | | (2.6 | )% | | 16.4 | % |
Investor-owned rental property | | | 119,132 | | 2.3 | % | | | 117,276 | | | 131,635 | | 1.6 | % | | (9.5 | )% |
Other commercial real estate | | | 679,851 | | 13.1 | % | | | 636,153 | | | 597,694 | | 6.9 | % | | 13.7 | % |
| | | | | | | | | | | | | | | | | | |
Total commercial real estate | | | 2,891,346 | | 55.6 | % | | | 2,949,476 | | | 2,907,167 | | (2.0 | )% | | (0.5 | )% |
| | | | | | | | | | | | | | | | | | |
Consumer: | | | | | | | | | | | | | | | | | | |
Home equity | | | 470,523 | | 9.1 | % | | | 478,204 | | | 477,105 | | (1.6 | )% | | (1.4 | )% |
Real estate 1-4 family | | | 139,983 | | 2.7 | % | | | 138,862 | | | 198,197 | | 0.8 | % | | (29.4 | )% |
Other consumer | | | 53,386 | | 1.0 | % | | | 53,970 | | | 70,679 | | (1.1 | )% | | (24.5 | )% |
| | | | | | | | | | | | | | | | | | |
Total consumer | | | 663,862 | | 12.8 | % | | | 671,036 | | | 745,981 | | (1.1 | )% | | (11.0 | )% |
| | | | | | | | | | | | | | | | | | |
Total loans | | $ | 5,203,246 | | 100.0 | % | | $ | 5,306,068 | | $ | 5,360,063 | | (1.9 | )% | | (2.9 | )% |
| | | | | | | | | | | | | | | | | | |
| | | | | | |
Office, Retail, and Industrial | | | | | | | | | | | | | | | | | | |
Office | | $ | 394,228 | | 32.5 | % | | $ | 376,897 | | $ | 339,912 | | 4.6 | % | | 16.0 | % |
Retail | | | 331,803 | | 27.4 | % | | | 314,586 | | | 265,568 | | 5.5 | % | | 24.9 | % |
Industrial | | | 486,934 | | 40.1 | % | | | 459,793 | | | 419,761 | | 5.9 | % | | 16.0 | % |
| | | | | | | | | | | | | | | | | | |
Total office, retail, and industrial | | $ | 1,212,965 | | 100.0 | % | | $ | 1,151,276 | | $ | 1,025,241 | | 5.4 | % | | 18.3 | % |
| | | | | | | | | | | | | | | | | | |
12
| | |
| First Midwest Bancorp, Inc. | | Press Release Dated January 12, 2010 |
Asset Quality
| | | | | | | | | | | | | | | | | | |
| Unaudited | | As Of | |
| (Dollar amounts in thousands) | | 12/31/09 | | | % of Loan
Category | | | % of Total | | | 9/30/09 | | | 12/31/08 | |
Non-accrual loans: | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | $ | 28,193 | | | 1.96 | % | | 11.5 | % | | $ | 45,134 | | | $ | 15,586 | |
Agricultural and farmland | | | 2,673 | | | 1.27 | % | | 1.1 | % | | | 2,384 | | | | 12 | |
Office, retail, and industrial | | | 21,396 | | | 1.76 | % | | 8.8 | % | | | 15,738 | | | | 2,533 | |
Residential construction and land | | | 112,798 | | | 35.93 | % | | 46.2 | % | | | 138,593 | | | | 97,060 | |
Commercial construction and land | | | 20,864 | | | 9.01 | % | | 8.5 | % | | | 2,908 | | | | 2,080 | |
Multi-family | | | 12,486 | | | 3.74 | % | | 5.1 | % | | | 15,910 | | | | 1,387 | |
Investor-owned rental property | | | 4,351 | | | 3.65 | % | | 1.8 | % | | | 4,069 | | | | 270 | |
Other commercial real estate | | | 28,006 | | | 4.12 | % | | 11.5 | % | | | 18,841 | | | | 4,564 | |
Consumer | | | 13,448 | | | 2.03 | % | | 5.5 | % | | | 13,228 | | | | 4,276 | |
| | | | | | | | | | | | | | | | | | |
Total non-accrual loans | | | 244,215 | | | 4.69 | % | | 100.0 | % | | | 256,805 | | | | 127,768 | |
| | | | | | | | | | | | | | | | | | |
90 days past due loans (still accruing interest): | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 1,964 | | | 0.14 | % | | 48.2 | % | | | 3,216 | | | | 6,818 | |
Agricultural and farmland | | | — | | | — | | | — | | | | — | | | | 1,751 | |
Office, retail, and industrial | | | 330 | | | 0.03 | % | | 8.1 | % | | | 1,036 | | | | 3,214 | |
Residential construction and land | | | 86 | | | 0.03 | % | | 2.1 | % | | | 66 | | | | 8,489 | |
Commercial construction and land | | | — | | | — | | | — | | | | — | | | | 2,092 | |
Multi-family | | | 55 | | | 0.02 | % | | 1.3 | % | | | 238 | | | | 1,881 | |
Investor-owned rental property | | | 225 | | | 0.19 | % | | 5.5 | % | | | — | | | | — | |
Other commercial real estate | | | 130 | | | 0.02 | % | | 3.2 | % | | | 338 | | | | 4,494 | |
Consumer | | | 1,289 | | | 0.19 | % | | 31.6 | % | | | 1,066 | | | | 8,260 | |
| | | | | | | | | | | | | | | | | | |
Total 90 days past due loans | | | 4,079 | | | 0.08 | % | | 100.0 | % | | | 5,960 | | | | 36,999 | |
| | | | | | | | | | | | | | | | | | |
Total non-performing loans | | $ | 248,294 | | | | | | | | | $ | 262,765 | | | $ | 164,767 | |
| | | | | | | | | | | | | | | | | | |
Restructured loans, still accruing | | $ | 30,553 | | | | | | | | | $ | 26,718 | | | $ | 7,344 | |
Other real estate owned | | $ | 57,137 | | | | | | | | | $ | 57,945 | | | $ | 24,368 | |
30-89 days past due loans | | $ | 37,912 | | | 0.73 | % | | — | | | $ | 44,346 | | | $ | 116,206 | |
Reserve for loan losses | | $ | 144,808 | | | — | | | — | | | $ | 134,269 | | | $ | 93,869 | |
Asset Quality Ratios | | | | | | | | | | | | | | | | | | |
Non-accrual loans to loans | | | 4.69 | % | | — | | | — | | | | 4.84 | % | | | 2.38 | % |
Non-accrual plus 90 days past due loans to loans | | | 4.77 | % | | — | | | — | | | | 4.95 | % | | | 3.07 | % |
Reserve for loan losses to loans | | | 2.78 | % | | — | | | — | | | | 2.53 | % | | | 1.75 | % |
Reserve for loan losses to non-accrual loans | | | 59 | % | | — | | | — | | | | 52 | % | | | 73 | % |
Reserve for loan losses to non-accrual plus 90 days past due loans to loans | | | 58 | % | | — | | | — | | | | 51 | % | | | 57 | % |
13
| | |
| First Midwest Bancorp, Inc. | | Press Release Dated January 12, 2010 |
Charge-off Data
| | | | | | | | | | | | | | | | | | |
| Unaudited | | Quarters Ended | |
| (Dollar amounts in thousands) | | 12/31/09 | | | % of Loan
Category | | | % of Total | | | 9/30/09 | | | 12/31/08 | |
Net loans charged-off: | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | $ | 23,320 | | | 1.62 | % | | 28.3 | % | | $ | 12,585 | | | $ | 5,601 | |
Agricultural and farmland | | | 180 | | | 0.09 | % | | 0.2 | % | | | — | | | | — | |
Office, retail, and industrial | | | 3,265 | | | 0.27 | % | | 4.0 | % | | | 3,496 | | | | 699 | |
Residential construction and land | | | 38,315 | | | 12.21 | % | | 46.5 | % | | | 5,181 | | | | 9,227 | |
Commercial construction and land | | | 2,715 | | | 1.17 | % | | 3.3 | % | | | (228 | ) | | | — | |
Multifamily | | | 2,325 | | | 0.70 | % | | 2.8 | % | | | 29 | | | | 164 | |
Investor-owned rental property | | | 1,229 | | | 1.03 | % | | 1.5 | % | | | 622 | | | | 161 | |
Other commercial real estate | | | 7,907 | | | 1.16 | % | | 9.5 | % | | | 6,006 | | | | 236 | |
Consumer | | | 3,205 | | | 0.48 | % | | 3.9 | % | | | 3,568 | | | | 2,239 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total net loans charged-off | | $ | 82,461 | | | 1.58 | % | | 100.0 | % | | $ | 31,259 | | | $ | 18,327 | |
| | | | | | | | | | | | | | | | | | |
Net loan charge-offs to average loans, annualized: Quarter-to-date | | | 6.17 | % | | — | | | — | | | | 2.32 | % | | | 1.38 | % |
Year-to-date | | | 3.08 | % | | — | | | — | | | | 2.05 | % | | | 0.74 | % |
14
| | |
| First Midwest Bancorp, Inc. | | Press Release Dated January 12, 2010 |
Securities Available-For-Sale
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unaudited | | U.S.
Treasury and
Agency | | Collateralized
Mortgage
Obligations | | | Other
Mortgage
Backed | | | State
and
Municipal | | | Collateralized
Debt
Obligations | | | Other | | | Total | |
As of December 31, 2009 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortized cost | | $ | 756 | | $ | 299,920 | | | $ | 239,567 | | | $ | 649,269 | | | $ | 54,359 | | | $ | 44,238 | | | $ | 1,288,109 | |
Gross unrealized gains (losses): | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross unrealized gains | | | — | | | 10,060 | | | | 9,897 | | | | 8,462 | | | | — | | | | 2,376 | | | | 30,795 | |
Gross unrealized losses | | | — | | | (2,059 | ) | | | (182 | ) | | | (6,051 | ) | | | (42,631 | ) | | | (1,221 | ) | | | (52,144 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized gains (losses) | | | — | | | 8,001 | | | | 9,715 | | | | 2,411 | | | | (42,631 | ) | | | 1,155 | | | | (21,349 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Fair value | | $ | 756 | | $ | 307,921 | | | $ | 249,282 | | | $ | 651,680 | | | $ | 11,728 | | | $ | 45,393 | | | $ | 1,266,760 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
As of September 30, 2009 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortized cost | | $ | 757 | | $ | 322,780 | | | $ | 233,396 | | | $ | 680,216 | | | $ | 60,290 | | | $ | 50,929 | | | $ | 1,348,368 | |
Gross unrealized gains (losses): | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross unrealized gains | | | — | | | 10,651 | | | | 10,782 | | | | 29,176 | | | | — | | | | 578 | | | | 51,187 | |
Gross unrealized losses | | | — | | | (2,224 | ) | | | (3 | ) | | | (1,078 | ) | | | (44,747 | ) | | | (1,834 | ) | | | (49,886 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized gains (losses) | | | — | | | 8,427 | | | | 10,779 | | | | 28,098 | | | | (44,747 | ) | | | (1,256 | ) | | | 1,301 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Fair value | | $ | 757 | | $ | 331,207 | | | $ | 244,175 | | | $ | 708,314 | | | $ | 15,543 | | | $ | 49,673 | | | $ | 1,349,669 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
As of December 31, 2008 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortized cost | | $ | 1,039 | | $ | 694,285 | | | $ | 504,918 | | | $ | 907,036 | | | $ | 78,883 | | | $ | 51,820 | | | $ | 2,237,981 | |
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 | ) | | | (36,797 | ) | | | (2,825 | ) | | | (55,705 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized gains (losses) | | | 2 | | | 4,554 | | | | 13,347 | | | | (289 | ) | | | (36,797 | ) | | | (2,612 | ) | | | (21,795 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Fair value | | $ | 1,041 | | $ | 698,839 | | | $ | 518,265 | | | $ | 906,747 | | | $ | 42,086 | | | $ | 49,208 | | | $ | 2,216,186 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
15
