Exhibit 99.1
| News Release | |||||
| 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 2010
FIRST QUARTER RESULTS
Solid Core Operating Earnings – Improved Credit Quality – Strengthened Capital
Operating Performance
| • | Net income available to common shareholders of $5.4 million, or $0.08 per share, for first quarter 2010 vs. a net loss of $39.5 million, or $(0.73) per share, for fourth quarter 2009 and net income available to common shareholders of $3.2 million, or $0.07 per share, for first quarter 2009. |
| • | Pre-tax, pre-provision core operating earnings of $31.6 million, in line with fourth quarter 2009. |
| • | Average core transactional deposits up $477.9 million, or 13.9%, from first quarter 2009. |
| • | Tax equivalent net interest margin of 4.28% for first quarter 2010, up 24 basis points from fourth quarter 2009 and 61 basis points from first quarter 2009. |
Capital and Credit
| • | Common equity offering of $196.7 million completed in January 2010. |
| • | Tangible common equity to tangible assets of 9.17%, up 288 basis points, or 45.8%, from fourth quarter 2009. |
| • | Non-performing assets reduced $44.2 million from December 31, 2009 and $5.7 million from March 31, 2009. |
| • | Loan loss reserves to non-performing loans of 65% at March 31, 2010, compared to 58% at December 31, 2009 and 45% at March 31, 2009. |
ITASCA, IL, APRIL 21, 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 first quarter 2010. Net income for the quarter was $8.1 million, before adjustment for preferred dividends and non-vested restricted shares, with net income of $5.4 million, or $0.08 per share, available to common shareholders after such adjustments. This compares to net loss available to common shareholders of $39.5 million, or $(0.73) per share, for fourth quarter 2009 and net income available to common shareholders of $3.2 million, or $0.07 per share, for first quarter 2009.
1
Summary Update
In making the announcement, Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc., said, “Performance for the quarter was on plan, reflecting consistent, solid core earnings and improvement in our underlying credit performance. Supported by a continuing sales focus on clients’ financial needs, our loan levels remained stable and core deposit inflows increased helping net interest margins to expand. As we closed the quarter, net interest margins stood 61 basis points, or 18%, higher than a year ago. Importantly, our efforts to remediate problem credits also showed positive results with non-performing assets declining 13% from year end, while past due loan levels fell for the 5th consecutive quarter.”
Mr. Scudder continued, “While the economy is showing signs of improvement, the environment remains challenging as we strive to reduce problem asset levels and absorb higher credit remediation costs. During the quarter, we raised $196.7 million in common equity, solidifying an already well-capitalized balance sheet. This capital foundation, combined with our ability to generate strong core earnings, serves as a business advantage, leaving us better positioned to both navigate the credit cycle and pursue opportunities to enhance our core business.”
Operating Performance
The Company generated another solid quarter of pre-tax, pre-provision core operating earnings of $31.6 million for first quarter 2010, compared to $32.7 million for fourth quarter 2009 and $36.7 million for first quarter 2009. The decrease from first quarter 2009 of $5.1 million was due primarily to increased expenses incurred to remediate problem assets, including expenses related to foreclosure and maintenance of other real estate owned (“OREO”). A reconciliation of earnings in accordance with U.S. generally accepted accounting principles (“GAAP”) to the non-GAAP financial measures of pre-tax, pre-provision core operating earnings is presented on page 11 of this earnings release.
Total loans as of March 31, 2010 were $5.2 billion, relatively unchanged from December 31, 2009, and down $191.3 million from March 31, 2009, due primarily to an almost 40% decline in the residential and commercial construction loan portfolios, as the Company continued to remediate and reduce exposure to these lending categories throughout the year. Apart from these categories, the Company continued to lend as reflected in an increase for certain other commercial real estate loan portfolios.
2
Covered assets were $207.6 million at March 31, 2010, as compared to $223.2 million at December 31, 2009 and consist of loans and other real estate owned acquired from the former First DuPage Bank in an FDIC-assisted transaction, as well as a receivable from the FDIC. These assets earned a yield of 5.76% for the quarter.
Average core transactional deposits for first quarter 2010 were $3.9 billion, an increase of $477.9 million, or 13.9%, from first quarter 2009. The increase was primarily due to targeted sales activities and customers’ desires to maintain more liquid deposits, which were reflected in a significant increase in money market balances.
Tax-equivalent net interest margin was 4.28% for first quarter 2010, an increase from 4.04% for fourth quarter 2009 and 3.67% for first quarter 2009. The yield on average earning assets for first quarter 2010 improved 12 basis points compared to fourth quarter 2009, while the Company’s cost of funds declined 12 basis points compared to fourth quarter 2009. Wider spreads obtained on fixed and floating rate loan originations, greater core deposit inflows, and lower balances of time deposits and wholesale borrowings contributed to the improvement in the margin.
The yield on average earning assets for first quarter 2010 declined 2 basis points compared to first quarter 2009, while the Company’s cost of funds declined 68 basis points compared to the same period in 2009. Sales of approximately $1 billion in securities since March 31, 2009 lowered the yield by approximately 16 basis points, while the proceeds were used to significantly reduce comparatively more expensive time deposits and wholesale borrowings. Additionally, wider spreads on loan originations substantially offset the decline in the investment portfolio yield.
Fee-based revenues of $20.0 million were relatively flat compared to first quarter 2009 and down 8.8% from fourth quarter 2009, reflecting normal seasonal trends. Year-over-year increases in trust and advisory services, merchant processing, and card-based fees were offset by a 7.3% decline in service charges on deposits.
For first quarter 2010, noninterest expense increased $17.1 million compared to first quarter 2009. The increase was substantially due to losses and expenses related to OREO and expenses incurred to remediate problem loans. The year-over-year increase in salaries and employee benefits of $3.5 million was due primarily to the increase in fair value of underlying investments for the Company’s non-qualified deferred compensation plan. Such increase is partially offset by a corresponding increase in other noninterest income.
3
Asset Quality
Non-performing assets as of March 31, 2010 were $291.8 million, down $44.2 million, or 13.2%, compared to December 31, 2009, and down $5.7 million, or 1.9%, from March 31, 2009. The improvement was driven by disposals of other real estate owned, primarily residential properties, in addition to charge-offs and the return of restructured loans to performing status.
Nonperforming loans represented 4.31% of total loans at March 31, 2010, compared to 4.77% and 4.78% at December 31, 2009 and March 31, 2009, respectively. Loans 30-89 days delinquent have trended downward for the past 5 quarters and totaled $28.0 million at March 31, 2009, down $9.9 million from December 31, 2009 and $26.3 million from March 31, 2009.
The reserve for loan losses represented 2.79% of total loans outstanding at March 31, 2010, compared to 2.78% at December 31, 2009 and 2.15% at March 31, 2009. The reserve for loan losses as a percentage of nonperforming loans improved to 65% at March 31, 2010, compared to 58% at December 31, 2009 and 45% at March 31, 2009. The provision for loan losses for first quarter 2010 of $18.4 million exceeded charge-offs of $18.3 million and improved as compared to $93.0 million and $48.4 million for fourth quarter 2009 and first quarter 2009, respectively.
Other real estate owned was $62.6 million at March 31, 2010, compared to $57.1 million at December 31, 2009 and $39.0 million at March 31, 2009. The Company disposed of $22.7 million of OREO during first quarter 2010 at a loss of $5.5 million. The Company also recorded a $2.3 million write down on a single residential construction property that was reappraised. This compares to a loss of $315,000 for first quarter 2009. In addition, insurance, taxes, repairs, and other costs related to OREO were $2.2 million greater than first quarter 2009.
During first quarter 2010, the Company returned loans totaling $27.9 million to performing status that were classified as troubled debt restructurings at December 31, 2009, as a result of satisfactory payment performance after the modification of the loans.
Securities Portfolio
Approximately 95% of the Company’s $1.2 billion available-for-sale portfolio remains highly liquid and is comprised of municipals, collateralized mortgage obligations (“CMOs”), and agency pass-through securities. The remainder consists of trust-preferred collateralized debt obligation pools (“CDOs”) with a fair value of $12.1 million and an unrealized loss of $39.4 million, and miscellaneous other securities totaling $36.5 million.
4
Net securities gains were $3.1 million for first quarter 2010 and were net of an other-than-temporary impairment charge of $2.8 million associated with the Company’s CDOs.
Capital Management
In January 2010, the Company issued a total of 18,818,183 shares of common stock at a price of $11.00 per share, which resulted in a $196.7 million increase in stockholders’ equity, net of the underwriting discount and related expenses. The proceeds are being used by the Company for general operating purposes. As a result, regulatory and tangible common equity ratios were significantly improved in comparison to December 31, 2009. As reflected in the following table, all regulatory mandated ratios for characterization as “well-capitalized” were significantly exceeded as of March 31, 2010.
| March 31, 2010 | December 31, 2009 | Minimum “Well- Capitalized” Level | Excess Over Required Minimums at March 31, 2010 | ||||||||||||
| (Amounts in millions) | |||||||||||||||
Regulatory capital ratios: | |||||||||||||||
Total capital to risk-weighted assets | 17.21 | % | 13.92 | % | 10.00 | % | 72 | % | $ | 460 | |||||
Tier 1 capital to risk-weighted assets | 15.15 | % | 11.87 | % | 6.00 | % | 153 | % | $ | 584 | |||||
Tier 1 leverage to average assets | 13.06 | % | 10.18 | % | 5.00 | % | 161 | % | $ | 597 | |||||
Regulatory capital ratios, excluding preferred stock: | |||||||||||||||
Total capital to risk-weighted assets | 14.18 | % | 10.92 | % | 10.00 | % | 42 | % | $ | 267 | |||||
Tier 1 capital to risk-weighted assets | 12.13 | % | 8.87 | % | 6.00 | % | 102 | % | $ | 391 | |||||
Tier 1 leverage to average assets | 10.45 | % | 7.61 | % | 5.00 | % | 109 | % | $ | 404 | |||||
Tier 1 common capital to risk-weighted assets | 10.80 | % | 7.55 | % | N/A | N/A | N/A | ||||||||
Tangible equity ratios: | |||||||||||||||
Tangible common equity to tangible assets | 9.17 | % | 6.29 | % | N/A | N/A | N/A | ||||||||
Tangible common equity, excluding other comprehensive loss, to tangible assets | 9.42 | % | 6.54 | % | N/A | N/A | N/A | ||||||||
Tangible common equity to risk-weighted assets | 10.50 | % | 7.26 | % | 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.
5
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 63 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, 2009 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, April 21, 2010 at 10:00 A.M. (ET). Members of the public who would like to listen to the conference call should dial (800) 322-2803 (U.S. domestic) or (617) 614-4925 (international) and enter passcode number 974 20 234. 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/investorrelations. 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 741 75 560 beginning at 12:00 P.M. (ET) on April 21, 2010 until 11:59 P.M. (ET) on April 28, 2010. Please direct any questions regarding obtaining access to the conference call to First Midwest Bancorp, Inc. Investor Relations, via e-mail, atinvestor.relations@firstmidwest.com.
6
Accompanying Financial Statements and Tables
Accompanying this press release is the following unaudited financial information:
| • | Operating Highlights, Balance Sheet Highlights, and Capital Ratios |
| • | Condensed Consolidated Statements of Financial Condition |
| • | Condensed Consolidated Statements of Income |
| • | Pre-Tax, Pre-Provision Core Operating Earnings |
| • | Loan Portfolio Composition |
| • | Asset Quality |
| • | Charge-off Data |
| • | Securities Available-for-Sale |
Press Release and Additional Information Available on Website
This press release, the accompanying financial statements and tables, and certain additional unauditedSelected Financial Information (totaling 4 pages) are available through the “Investor Relations” section of First Midwest’s website atwww.firstmidwest.com.
7
| First Midwest Bancorp, Inc. | Press Release Dated April 21, 2010 |
Operating Highlights
| Unaudited | ||||||||||||
(Dollar amounts in thousands except per share data) | Quarters Ended | |||||||||||
| March 31, 2010 | December 31, 2009 | March 31, 2009 | ||||||||||
Net income (loss) | $ | 8,081 | $ | (37,491 | ) | $ | 5,727 | |||||
Net income (loss) applicable to common shares | 5,428 | (39,542 | ) | 3,155 | ||||||||
Diluted earnings (loss) per common share | $ | 0.08 | $ | (0.73 | ) | $ | 0.07 | |||||
Return on average common equity | 2.38 | % | (19.84 | %) | 1.78 | % | ||||||
Return on average assets | 0.43 | % | (1.92 | %) | 0.28 | % | ||||||
Net interest margin | 4.28 | % | 4.04 | % | 3.67 | % | ||||||
Efficiency ratio | 58.41 | % | 58.48 | % | 52.33 | % | ||||||
| Balance Sheet Highlights | ||||||||||||
| Unaudited | ||||||||||||
| (Dollar amounts in thousands except per share data) | As Of | |||||||||||
| March 31, 2010 | December 31, 2009 | March 31, 2009 | ||||||||||
Total assets | $ | 7,592,907 | $ | 7,710,672 | $ | 8,252,576 | ||||||
Total loans, excluding covered loans | 5,195,874 | 5,203,246 | 5,387,128 | |||||||||
Total deposits | 5,864,104 | 5,885,279 | 5,508,382 | |||||||||
Total stockholders’ equity | 1,143,768 | 941,521 | 903,612 | |||||||||
Common stockholders’ equity | 950,768 | 748,521 | 710,612 | |||||||||
Book value per share | $ | 12.84 | $ | 13.66 | $ | 14.61 | ||||||
Period end shares outstanding | 74,046 | 54,793 | 48,628 | |||||||||
| Capital Ratios | ||||||||||||
| Unaudited | ||||||||||||
| As Of | ||||||||||||
| March 31, 2010 | December 31, 2009 | March 31, 2009 | ||||||||||
Regulatory capital ratios: | ||||||||||||
Total capital to risk-weighted assets | 17.21 | % | 13.92 | % | 14.62 | % | ||||||
Tier 1 capital to risk-weighted assets | 15.15 | % | 11.87 | % | 11.85 | % | ||||||
Tier 1 leverage to average assets | 13.06 | % | 10.18 | % | 9.60 | % | ||||||
Regulatory capital ratios, excluding preferred stock: | ||||||||||||
Total capital to risk-weighted assets | 14.18 | % | 10.92 | % | 11.70 | % | ||||||
Tier 1 capital to risk-weighted assets | 12.13 | % | 8.87 | % | 8.93 | % | ||||||
Tier 1 leverage to average assets | 10.45 | % | 7.61 | % | 7.23 | % | ||||||
Tier 1 common capital to risk-weighted assets | 10.80 | % | 7.55 | % | 7.04 | % | ||||||
Tangible common equity ratios: | ||||||||||||
Tangible common equity to tangible assets | 9.17 | % | 6.29 | % | 5.36 | % | ||||||
Tangible common equity, excluding other comprehensive loss, to tangible assets | 9.42 | % | 6.54 | % | 5.83 | % | ||||||
Tangible common equity to risk-weighted assets | 10.50 | % | 7.26 | % | 6.47 | % | ||||||
8
| First Midwest Bancorp, Inc. | Press Release Dated April 21, 2010 |
Condensed Consolidated Statements of Financial Condition
| Unaudited | March 31, | |||||||
| (Dollar amounts in thousands) | 2010 | 2009 | ||||||
| Assets | ||||||||
Cash and due from banks | $ | 97,251 | $ | 103,586 | ||||
Funds sold and other short-term investments | 29,663 | 3,741 | ||||||
Trading account securities, at fair value | 14,114 | 10,885 | ||||||
Securities available-for-sale, at fair value | 1,152,039 | 1,901,919 | ||||||
Securities held-to-maturity, at amortized cost | 90,449 | 81,566 | ||||||
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 59,428 | 54,768 | ||||||
Loans | 5,195,874 | 5,387,128 | ||||||
Reserve for loan losses | (144,824 | ) | (116,001 | ) | ||||
Net loans | 5,051,050 | 5,271,127 | ||||||
Other real estate owned | 62,565 | 38,984 | ||||||
Covered assets | 207,609 | — | ||||||
Premises, furniture, and equipment | 128,180 | 117,880 | ||||||
Investment in bank owned life insurance | 198,201 | 199,070 | ||||||
Goodwill and other intangible assets | 280,477 | 283,570 | ||||||
Accrued interest receivable and other assets | 221,881 | 185,480 | ||||||
Total assets | $ | 7,592,907 | $ | 8,252,576 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
Deposits | ||||||||
Transactional deposits | $ | 3,948,025 | $ | 3,522,289 | ||||
Time deposits | 1,899,375 | 1,943,076 | ||||||
Brokered deposits | 16,704 | 43,017 | ||||||
Total deposits | 5,864,104 | 5,508,382 | ||||||
Borrowed funds | 387,163 | 1,535,752 | ||||||
Subordinated debt | 137,737 | 232,375 | ||||||
Accrued interest payable and other liabilities | 60,135 | 72,455 | ||||||
Total liabilities | 6,449,139 | 7,348,964 | ||||||
Preferred stock | 190,392 | 189,768 | ||||||
Common stock | 858 | 613 | ||||||
Additional paid-in capital | 434,704 | 211,325 | ||||||
Retained earnings | 815,395 | 851,339 | ||||||
Accumulated other comprehensive loss | (18,878 | ) | (37,470 | ) | ||||
Treasury stock, at cost | (278,703 | ) | (311,963 | ) | ||||
Total stockholders’ equity | 1,143,768 | 903,612 | ||||||
Total liabilities and stockholders’ equity | $ | 7,592,907 | $ | 8,252,576 | ||||
9
| First Midwest Bancorp, Inc. | Press Release Dated April 21, 2010 |
Condensed Consolidated Statements of Income
| Unaudited | Quarters Ended | |||||||||||
| (Amounts in thousands, except per share data) | March 31, 2010 | December 31, 2009 | March 31, 2009 | |||||||||
Interest Income | ||||||||||||
Loans | $ | 64,480 | $ | 65,668 | $ | 65,447 | ||||||
Securities | 13,952 | 14,848 | 25,682 | |||||||||
Covered assets | 2,962 | 1,419 | — | |||||||||
Other | 385 | 435 | 351 | |||||||||
Total interest income | 81,779 | 82,370 | 91,480 | |||||||||
Interest Expense | ||||||||||||
Deposits | 10,545 | 12,774 | 18,927 | |||||||||
Borrowed funds | 1,010 | 1,276 | 4,632 | |||||||||
Subordinated debt | 2,286 | 2,379 | 3,702 | |||||||||
Total interest expense | 13,841 | 16,429 | 27,261 | |||||||||
Net interest income | 67,938 | 65,941 | 64,219 | |||||||||
Provision for loan losses | 18,350 | 93,000 | 48,410 | |||||||||
Net interest income (loss) after provision for loan losses | 49,588 | (27,059 | ) | 15,809 | ||||||||
Noninterest Income | ||||||||||||
Service charges on deposit accounts | 8,381 | 9,977 | 9,044 | |||||||||
Trust and investment management fees | 3,593 | 3,704 | 3,329 | |||||||||
Other service charges, commissions, and fees | 4,172 | 4,280 | 4,006 | |||||||||
Card-based fees | 3,893 | 4,000 | 3,755 | |||||||||
Subtotal, fee-based revenues | 20,039 | 21,961 | 20,134 | |||||||||
Bank owned life insurance income | 248 | 281 | 541 | |||||||||
Securities gains (losses) net | 3,057 | (5,772 | ) | 8,222 | ||||||||
Gain on FDIC-assisted transaction | — | 13,071 | — | |||||||||
Gains on early extinguishment of debt | — | 1,267 | — | |||||||||
Other | 977 | 939 | (126 | ) | ||||||||
Total noninterest income | 24,321 | 31,747 | 28,771 | |||||||||
Noninterest Expense | ||||||||||||
Salaries and employee benefits | 26,884 | 27,592 | 23,311 | |||||||||
Net occupancy expense | 6,040 | 5,453 | 6,506 | |||||||||
Losses realized on other real estate owned | 7,879 | 14,051 | 315 | |||||||||
Other real estate owned expense, net | 2,908 | 1,642 | 689 | |||||||||
Loan remediation expense | 2,001 | 2,013 | 519 | |||||||||
Federal Deposit Insurance Corporation (“FDIC”) insurance | 2,532 | 2,720 | 2,361 | |||||||||
Equipment expense | 2,128 | 2,208 | 2,331 | |||||||||
Technology and related costs | 2,483 | 2,375 | 2,240 | |||||||||
Other | 12,618 | 12,467 | 10,122 | |||||||||
Total noninterest expense | 65,473 | 70,521 | 48,394 | |||||||||
Income (loss) before taxes | 8,436 | (65,833 | ) | (3,814 | ) | |||||||
Income tax expense (benefit) | 355 | (28,342 | ) | (9,541 | ) | |||||||
Net income (loss) | 8,081 | (37,491 | ) | 5,727 | ||||||||
Preferred dividends | (2,572 | ) | (2,569 | ) | (2,563 | ) | ||||||
Net (income) loss applicable to non-vested restricted shares | (81 | ) | 518 | (9 | ) | |||||||
Net Income (Loss) Applicable to Common Shares | $ | 5,428 | $ | (39,542 | ) | $ | 3,155 | |||||
Diluted Earnings (Loss) Per Common Share | $ | 0.08 | $ | (0.73 | ) | $ | 0.07 | |||||
Dividends Declared Per Common Share | $ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||
Weighted Average Diluted Shares Outstanding | 70,469 | 54,152 | 48,493 | |||||||||
10
| First Midwest Bancorp, Inc. | Press Release Dated April 21, 2010 |
Pre-Tax, Pre-Provision Core Operating Earnings (1)
Unaudited
(Dollar amounts in thousands)
| Quarters Ended | ||||||||||||
| March 31, 2010 | December 31, 2009 | March 31, 2009 | ||||||||||
Income (loss) before taxes | $ | 8,436 | $ | (65,833 | ) | $ | (3,814 | ) | ||||
Provision for loan losses | 18,350 | 93,000 | 48,410 | |||||||||
Pre-tax, pre-provision earnings | 26,786 | 27,167 | 44,596 | |||||||||
Non-Operating Items | ||||||||||||
Securities gains (losses), net | 3,057 | (5,772 | ) | 8,222 | ||||||||
Gain on FDIC-assisted transaction | — | 13,071 | — | |||||||||
Gains on early extinguishment of debt | — | 1,267 | — | |||||||||
Losses realized on other real estate owned | (7,879 | ) | (14,051 | ) | (315 | ) | ||||||
Total non-operating items | (4,822 | ) | (5,485 | ) | 7,907 | |||||||
Pre-tax, pre-provision core operating earnings | $ | 31,608 | $ | 32,652 | $ | 36,689 | ||||||
Risk-weighted assets | $ | 6,381,679 | $ | 6,433,094 | $ | 6,600,684 | ||||||
Pre-tax, pre-provision core operating earnings to risk-weighted assets | 1.97 | % | 2.03 | % | 2.22 | % | ||||||
| (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 April 21, 2010 |
Loan Portfolio Composition
Unaudited
(Dollar amounts in thousands)
| As Of | Percent Change From | |||||||||||||||||
| 3/31/10 | % of Total | 12/31/09 | 3/31/09 | 12/31/09 | 3/31/09 | |||||||||||||
Commercial and industrial | $ | 1,454,714 | 28.0 | % | $ | 1,438,063 | $ | 1,508,175 | 1.2 | % | (3.5 | %) | ||||||
Agricultural and farmland | 200,527 | 3.9 | % | 209,945 | 219,178 | (4.5 | %) | (8.5 | %) | |||||||||
Commercial real estate: | ||||||||||||||||||
Office, retail, and industrial | 1,239,583 | 23.9 | % | 1,212,965 | 1,086,987 | 2.2 | % | 14.0 | % | |||||||||
Residential construction and land | 276,322 | 5.3 | % | 313,919 | 466,195 | (12.0 | %) | (40.7 | %) | |||||||||
Commercial construction and land | 233,662 | 4.5 | % | 231,518 | 340,215 | 0.9 | % | (31.3 | %) | |||||||||
Multifamily | 348,178 | 6.7 | % | 333,961 | 311,865 | 4.3 | % | 11.6 | % | |||||||||
Investor-owned rental property | 121,040 | 2.3 | % | 119,132 | 132,049 | 1.6 | % | (8.3 | %) | |||||||||
Other commercial real estate | 669,462 | 12.9 | % | 679,851 | 593,262 | (1.5 | %) | 12.8 | % | |||||||||
Total commercial real estate | 2,888,247 | 55.6 | % | 2,891,346 | 2,930,573 | (0.1 | %) | (1.4 | %) | |||||||||
Consumer: | ||||||||||||||||||
Home equity | 464,655 | 8.9 | % | 470,523 | 480,283 | (1.2 | %) | (3.3 | %) | |||||||||
Real estate 1-4 family | 139,840 | 2.7 | % | 139,983 | 185,486 | (0.1 | %) | (24.6 | %) | |||||||||
Other consumer | 47,891 | 0.9 | % | 53,386 | 63,433 | (10.3 | %) | (24.5 | %) | |||||||||
Total consumer | 652,386 | 12.5 | % | 663,862 | 729,202 | (1.7 | %) | (10.5 | %) | |||||||||
Total loans | $ | 5,195,874 | 100.0 | % | $ | 5,203,246 | $ | 5,387,128 | (0.1 | %) | (3.6 | %) | ||||||
Office, Retail, and Industrial | ||||||||||||||||||
Office | $ | 396,749 | 32.0 | % | $ | 394,228 | $ | 346,806 | 0.6 | % | 14.4 | % | ||||||
Retail | 346,218 | 27.9 | % | 331,803 | 295,336 | 4.3 | % | 17.2 | % | |||||||||
Industrial | 496,616 | 40.1 | % | 486,934 | 444,845 | 2.0 | % | 11.6 | % | |||||||||
Total office, retail, and industrial | $ | 1,239,583 | 100.0 | % | $ | 1,212,965 | $ | 1,086,987 | 2.2 | % | 14.0 | % | ||||||
12
| First Midwest Bancorp, Inc. | Press Release Dated April 21, 2010 |
Asset Quality
Unaudited
| (Dollar amounts in thousands) | As Of | |||||||||||||||||
| 3/31/10 | % of Loan Category | % of Total | 12/31/09 | 3/31/09 | ||||||||||||||
Non-accrual loans: | ||||||||||||||||||
Commercial and industrial | $ | 38,095 | 2.62 | % | 17.6 | % | $ | 28,193 | $ | 33,245 | ||||||||
Agricultural and farmland | 2,532 | 1.26 | % | 1.2 | % | 2,673 | 12 | |||||||||||
Office, retail, and industrial | 18,204 | 1.47 | % | 8.4 | % | 21,396 | 12,769 | |||||||||||
Residential construction and land | 93,412 | 33.81 | % | 43.2 | % | 112,798 | 107,766 | |||||||||||
Commercial construction and land | 20,023 | 8.57 | % | 9.3 | % | 20,864 | 8,984 | |||||||||||
Multi-family | 8,349 | 2.40 | % | 3.9 | % | 12,486 | 6,989 | |||||||||||
Investor-owned rental property | 5,947 | 4.91 | % | 2.8 | % | 4,351 | 2,536 | |||||||||||
Other commercial real estate | 15,859 | 2.37 | % | 7.3 | % | 28,006 | 4,493 | |||||||||||
Consumer | 13,652 | 2.09 | % | 6.3 | % | 13,448 | 6,747 | |||||||||||
Total non-accrual loans | 216,073 | 4.16 | % | 100.0 | % | 244,215 | 183,541 | |||||||||||
90 days past due loans (still accruing interest): | ||||||||||||||||||
Commercial and industrial | 3,938 | 0.27 | % | 49.2 | % | 1,964 | 16,208 | |||||||||||
Agricultural and farmland | — | 0.00 | % | 0.0 | % | — | 1,751 | |||||||||||
Office, retail, and industrial | 676 | 0.05 | % | 8.5 | % | 330 | 12,719 | |||||||||||
Residential construction and land | — | 0.00 | % | 0.0 | % | 86 | 20,593 | |||||||||||
Commercial construction and land | — | 0.00 | % | 0.0 | % | — | 2,942 | |||||||||||
Multi-family | 368 | 0.11 | % | 4.6 | % | 55 | 3,356 | |||||||||||
Investor-owned rental property | 201 | 0.17 | % | 2.5 | % | 225 | 524 | |||||||||||
Other commercial real estate | 23 | 0.00 | % | 0.3 | % | 130 | 5,434 | |||||||||||
Consumer | 2,789 | 0.43 | % | 34.9 | % | 1,289 | 10,402 | |||||||||||
Total 90 days past due loans | 7,995 | 0.15 | % | 100.0 | % | 4,079 | 73,929 | |||||||||||
Total non-performing loans | 224,068 | 248,294 | 257,470 | |||||||||||||||
Restructured loans, still accruing | 5,168 | 30,553 | 1,063 | |||||||||||||||
Other real estate owned (“OREO”) | 62,565 | 57,137 | 38,984 | |||||||||||||||
Total non-performing assets | $ | 291,801 | $ | 335,984 | $ | 297,517 | ||||||||||||
30-89 days past due loans | $ | 28,018 | $ | 37,912 | $ | 54,311 | ||||||||||||
Reserve for loan losses | $ | 144,824 | $ | 144,808 | $ | 116,001 | ||||||||||||
Asset Quality Ratios | ||||||||||||||||||
Non-accrual loans to loans | 4.16 | % | 4.69 | % | 3.41 | % | ||||||||||||
Non-performing loans to loans | 4.31 | % | 4.77 | % | 4.78 | % | ||||||||||||
Non-performing assets to loans plus OREO | 5.55 | % | 6.39 | % | 5.48 | % | ||||||||||||
Reserve for loan losses to loans | 2.79 | % | 2.78 | % | 2.15 | % | ||||||||||||
Reserve for loan losses to non-accrual loans | 67 | % | 59 | % | 63 | % | ||||||||||||
Reserve for loan losses to non-performing loans | 65 | % | 58 | % | 45 | % | ||||||||||||
13
| First Midwest Bancorp, Inc. | Press Release Dated April 21, 2010 |
Charge-off Data
Unaudited
(Dollar amounts in thousands)
| Quarters Ended | ||||||||||||||||||
| 3/31/10 | % of Loan Category | % of Total | 12/31/09 | 3/31/09 | ||||||||||||||
Net loans charged-off: | ||||||||||||||||||
Commercial and industrial | $ | 4,463 | 0.31 | % | 24.3 | % | $ | 23,320 | $ | 12,093 | ||||||||
Agricultural and farmland | 141 | 0.07 | % | 0.7 | % | 180 | — | |||||||||||
Office, retail, and industrial | 1,644 | 0.13 | % | 9.0 | % | 3,265 | 878 | |||||||||||
Residential construction and land | 4,452 | 1.61 | % | 24.3 | % | 38,315 | 10,719 | |||||||||||
Commercial construction and land | 270 | 0.12 | % | 1.5 | % | 2,715 | — | |||||||||||
Multifamily | 512 | 0.15 | % | 2.8 | % | 2,325 | 43 | |||||||||||
Investor-owned rental property | 254 | 0.21 | % | 1.4 | % | 1,229 | 120 | |||||||||||
Other commercial real estate | 4,195 | 0.63 | % | 22.9 | % | 7,907 | (51 | ) | ||||||||||
Consumer | 2,403 | 0.37 | % | 13.1 | % | 3,205 | 2,476 | |||||||||||
Total net loans charged-off | $ | 18,334 | 0.35 | % | 100.0 | % | $ | 82,461 | $ | 26,278 | ||||||||
Net loan charge-offs to average loans, annualized: | ||||||||||||||||||
Quarter-to-date | 1.43 | % | — | — | 6.17 | % | 1.98 | % | ||||||||||
Year-to-date | 1.43 | % | — | — | 3.08 | % | 1.98 | % | ||||||||||
14
| First Midwest Bancorp, Inc. | Press Release Dated April 21, 2010 |
Securities Available-For-Sale
Unaudited
(Dollar amounts in thousands)
| U.S. Treasury and Agency | Collateralized Mortgage Obligations | Other Mortgage Backed | State and Municipal | Collateralized Debt Obligations | Other | Total | |||||||||||||||||||||
As of March 31, 2010 | |||||||||||||||||||||||||||
Amortized cost | $ | 755 | $ | 269,457 | $ | 181,953 | $ | 635,036 | $ | 51,596 | $ | 34,949 | $ | 1,173,746 | |||||||||||||
Gross unrealized gains (losses): | |||||||||||||||||||||||||||
Gross unrealized gains | 1 | 8,807 | 8,533 | 8,046 | — | 1,177 | 26,564 | ||||||||||||||||||||
Gross unrealized losses | — | (1,761 | ) | (29 | ) | (6,666 | ) | (39,418 | ) | (397 | ) | (48,271 | ) | ||||||||||||||
Net unrealized gains (losses) | 1 | 7,046 | 8,504 | 1,380 | (39,418 | ) | 780 | (21,707 | ) | ||||||||||||||||||
Fair value | $ | 756 | $ | 276,503 | $ | 190,457 | $ | 636,416 | $ | 12,178 | $ | 35,729 | $ | 1,152,039 | |||||||||||||
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 March 31, 2009 | |||||||||||||||||||||||||||
Amortized cost | $ | 122 | $ | 598,367 | $ | 344,503 | $ | 861,547 | $ | 75,922 | $ | 56,612 | $ | 1,937,073 | |||||||||||||
Gross unrealized gains (losses): | |||||||||||||||||||||||||||
Gross unrealized gains | — | 14,094 | 11,575 | 9,136 | — | 104 | 34,909 | ||||||||||||||||||||
Gross unrealized losses | — | (3,120 | ) | (24 | ) | (16,134 | ) | (41,395 | ) | (9,390 | ) | (70,063 | ) | ||||||||||||||
Net unrealized gains (losses) | — | 10,974 | 11,551 | (6,998 | ) | (41,395 | ) | (9,286 | ) | (35,154 | ) | ||||||||||||||||
Fair value | $ | 122 | $ | 609,341 | $ | 356,054 | $ | 854,549 | $ | 34,527 | $ | 47,326 | $ | 1,901,919 | |||||||||||||
15