August 16, 2010 First Midwest Bancorp, Inc. Summary of Acquisition: Palos Bank and Trust Company Exhibit 99.2 |
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 and other reports filed with the Securities and Exchange Commission, copies of which will be made available upon request. 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 Palos Bank and Trust Company Key Acquisition Metrics (1) (Dollars in millions) (1) Using most recent company financial information provided by FDIC in June 2010 (2) Equity share instrument capped at 25% appreciation 180 days from closing date (3) FDIC will reimburse bank for 70% of net losses on covered assets up to $117 million, and 80% of such losses should aggregate losses exceed $117 million Closing date 8/13/10 Transaction size Assets 460 $ Loans 337 $ OREO 18 $ Deposits 470 $ Branch Locations 5 Key purchase terms Covered assets 355 $ Asset discount 6.5% Deposit premium 1.0% Value appreciation instrument (2) 100K FDIC loss share (3) 70%/30% |
4 4 Transaction Rationale Valuable, Community Based Franchise 50 year market presence; leading share Desirable market Relationship focus = cultural fit Full product set Attractive Core Deposit Base 47% core (non-time) deposits (vs. 24% average (1) ) Appealing branch network No brokered and low jumbo time deposits Composition of Deposits CDs 53% Demand 15% Savings 11% Money Mkt. 15% NOW / Other 6% (1) Average for other Illinois FDIC assisted transactions since January 1, 2010 |
5 5 Transaction Rationale Solid Pre-Tax Pre-Provision Earnings Median of $6.1 million or 2.3% of risk weighted assets since 2001 In Market Enhances southeastern footprint Similar product lines facilitate retention Proximity generates tangible efficiencies Financially Sound Accretive, solid returns Nominal capital impact |
6 6 Pro Forma Branch Map Source: SNL FMBI Branches Palos B&T Branches |