Exhibit 99.1
News Release | ||||
First Midwest Bancorp, Inc. | First Midwest Bancorp, Inc. One Pierce Place, Suite 1500 Itasca, Illinois 60143 (630) 875-7450 | |||
FOR IMMEDIATE RELEASE | CONTACT: | Paul F. Clemens | ||
Chief Financial Officer | ||||
(630) 875-7347 | ||||
TRADED: NASDAQ Global Select Market | www.firstmidwest.com | |||
SYMBOL: FMBI |
FIRST MIDWEST BANCORP, INC. ANNOUNCES 2010
FOURTH QUARTER AND FULL YEAR RESULTS
Solid Core Operating Performance - Proactively Addressing Credit, Lower Delinquency Levels -
Strong Capital and Liquidity
Operating Performance
• | Net loss before preferred dividends and accretion on preferred stock of $28.2 million and $9.7 million for fourth quarter and full year 2010 compared to net loss of $37.5 million and $25.8 million for fourth quarter and full year 2009, respectively. |
• | Pre-tax, pre-provision core operating earnings of $35.0 million for fourth quarter 2010 and $136.4 million for full year 2010, up 7.2% and 3.8% from fourth quarter and full year 2009, respectively. |
• | Average core transactional deposits up $696.8 million, or 17.9%, from fourth quarter 2009. |
Capital and Credit
• | Tangible common equity to tangible assets of 7.99% up from 6.29% at December 31, 2009. |
• | Non-performing assets, excluding covered assets, of $269.5 million, down 20.0% from December 31, 2009. |
• | Allowance for credit losses of $145.1 million represented 2.84% of loans, excluding covered loans, compared to 2.78% at December 31, 2009. |
• | Total charge-offs on loans and losses on other real estate owned of $89.3 million, including $47.7 million attributed to shift in disposition strategy for select construction and development problem assets. |
• | Loans 30-89 days past due, excluding covered loans, of $23.6 million, down 38% from December 31, 2009 and the lowest level in more than seven years. |
ITASCA, IL, January 26, 2011 – Today First Midwest Bancorp, Inc. (the “Company” or “First Midwest”)(NASDAQ NGS: FMBI), the holding company of First Midwest Bank, reported results of operations and financial condition for fourth quarter and full year 2010. Net loss for the quarter was
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$28.2 million, before adjustments for preferred dividends and non-vested restricted shares, with a net loss of $30.3 million, or $0.41 per share, available to common shareholders after such adjustments. This compares to net income available to common shareholders of $11 thousand, or $0.00 per share, for third quarter 2010 and a loss of $39.5 million, or $0.73 loss per share, for fourth quarter 2009.
For full year 2010, the Company had a net loss of $9.7 million, before adjustments for preferred dividends and non-vested restricted shares, with a net loss of $19.7 million, or $0.27 per share, available to common shareholders after these adjustments. The current year loss was lower than the full year 2009 net loss available to common shareholders of $35.6 million, or $0.71 loss per share.
Summary Update
“Performance both for the quarter and the year evidenced solid improvement in our core operating business offset by elevated credit costs,” said Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc. “In comparison to last year, pre-tax, pre-provision core operating earnings for the quarter were up 7.2% as we benefited from our consistent focus on relationship-based sales and strategic acquisition activity.”
Mr. Scudder further commented, “We have made notable improvement in non-performing asset and delinquency levels since 2009. However, our credit costs have remained high, largely due to the impact of the lagging market recovery on land and construction related loans and other real estate owned. Year-end assessment of market realities for these asset categories warranted a shift in our planned liquidation strategies and valuations to more aggressively pursue disposition, significantly increasing our fourth quarter credit costs. While painful, these actions should better position the Company to remediate problem assets sooner, lower future remediation costs, and expand and stabilize earnings.” (Refer to the supplemental schedules available on the Company’s website.)
Mr. Scudder concluded, “While signs of economic recovery and stability are emerging, the operating environment remains difficult as we enter 2011. Importantly, while short-term challenges still lay ahead, the strength of our core business, capital foundation, and liquidity position represent a significant competitive advantage as the economy rebounds. These strengths, when combined with the commitment and focus of our 1,800 employees, leave us well positioned to improve our credit and earnings performance, continue the prudent management of capital, and pursue opportunities to invest in our business, all for the benefit of our shareholders.”
Operating Performance
The Company generated pre-tax, pre-provision core operating earnings of $35.0 million for fourth quarter 2010, consistent with third quarter 2010 and up from $32.7 million for fourth quarter 2009. The
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improvement compared to the prior year resulted from higher net interest income, which more than offset higher non-interest expense, excluding losses recognized on 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.
Average earning assets were $7.4 billion for fourth quarter 2010, an increase of $166.5 million, or 2.3%, from third quarter 2010 and $520.1 million, or 7.5%, from fourth quarter 2009. The increases from both prior periods were due primarily to increases in covered assets acquired in Federal Deposit Insurance Corporation (“FDIC”)-assisted transactions and short-term investments. These increases were partially offset by reductions in loans resulting from net charge-offs of $73.8 million and $147.1 million for fourth quarter and full year 2010, respectively. The Company continues to maintain an elevated level of short-term investments as it manages its liquidity within the current low-yield environment.
Average sources of funding were $7.1 billion for fourth quarter 2010, an increase of $105.7 million, or 1.5%, from third quarter 2010 and $370.5 million, or 5.5%, from fourth quarter 2009. The growth from third quarter resulted from a 2.6% increase in average core transactional deposits, led by an 8.5% increase in demand deposits. Compared to fourth quarter 2009, 20% increases in average demand and money market balances, which were offset by a decline in more expensive short-term borrowings, drove the 5.5% increase. The increase in core transactional deposits reflects industry trends as well as the impact of deposits acquired through FDIC-assisted transactions.
The growth in earning assets from both prior periods generated $1.4 million and $5.6 million of higher net interest income than third quarter 2010 and fourth quarter 2009, respectively.
Fee-based revenues of $22.4 million for fourth quarter 2010 were relatively unchanged compared to third quarter 2010, with the growth in trust and investment advisory fees and card-based fees offsetting declines in service charges on deposits, other service charges, commissions, and fees.
Fee-based revenues increased 1.9% compared to fourth quarter 2009 with the 7.8% decline in service charges on deposits more than offset by increases of 16.0% in card-based fees, 9.1% in trust and investment advisory fees, and 5.3% in other service charges, commissions, and fees (primarily merchant fee income).
Total noninterest income declined 14.9% from third quarter 2010 and 17.6% from fourth quarter 2009 due primarily to lower net securities gains and a $13.1 million gain on an FDIC-assisted transaction in fourth quarter 2009.
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Total noninterest expense for fourth quarter 2010 increased $8.3 million from third quarter 2010 primarily as a result of a $7.1 million increase in losses recognized on OREO (discussed below). The majority of the $1.1 million increase in salaries and employee benefits represents the full quarter expense of additional staff hired through the acquisition of Palos Bank and Trust (“Palos”) in third quarter 2010.
Other professional fees fell $1.2 million from third quarter 2010, primarily reflecting third quarter’s higher acquisition and integration expenses. The majority of the $893 thousand increase in other non-interest expense from third quarter 2010 reflected higher technology and network costs, which included a one-time conversion fee related to Palos in fourth quarter 2010, as well as additional costs for servicing larger volumes of transactions relating to the branches added through our FDIC-assisted acquisitions and higher monthly fees for improved network access.
The $1.1 million increase in OREO expenses, net from third quarter 2010 was due to higher costs and commissions related to disposition of properties and seasonal maintenance.
Total noninterest expense rose by $6.6 million, or 9.3%, in fourth quarter 2010 compared to fourth quarter 2009 and $44.0 million, or 18.7%, for full year 2010 compared to full year 2009. The Company recorded integration expenses associated with its FDIC-assisted acquisitions of $576 thousand for fourth quarter 2010 and $3.3 million for full year 2010.
The fourth quarter 2010 increase from fourth quarter 2009 was due to $3.4 million in higher salaries and benefits primarily attributed to the increase in salaries and benefits from fourth quarter 2009 resulting from the addition of retail and commercial sales employees from the Company’s three FDIC-assisted acquisitions and $1.4 million of higher losses and write-downs on OREO.
Asset Quality
Non-performing assets, excluding covered assets, were $269.5 million at December 31, 2010, decreasing $14.1 million, or 5.0%, from September 30, 2010 and $66.5 million, or 20.0%, from December 31, 2009. The reductions were substantially due to charge-offs taken in fourth quarter and full year 2010 offset by loans downgraded to non-accrual status. Non-performing assets, excluding covered assets, represented 5.25% of total loans plus OREO at December 31, 2010 compared to 5.44% at September 30, 2010 and 6.39% at December 31, 2009. Loans 30-89 days delinquent, excluding covered assets, stood at $23.6 million, down $17.9 million, or 43.1% from the September 30, 2010 level.
The allowance for credit losses represented 2.84% of total loans, excluding covered loans, at December 31, 2010 compared to 2.81% at September 30, 2010 and 2.78% at December 31, 2009. The allowance for credit losses as a percentage of non-performing loans, excluding covered loans, was 67% at December 31, 2010 compared to 66% at September 30, 2010 and 58% at December 31, 2009.
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Net charge-offs, excluding covered loans, for fourth quarter 2010 were $72.9 million compared to $34.0 million for third quarter 2010 and $82.5 million for fourth quarter 2009. The Company sold $19.8 million of OREO (including $4.7 million of covered OREO) at a loss of $3.5 million during the quarter and recorded OREO write-downs of $11.9 million in noninterest expense. Following year-end assessment of market conditions for construction and development related asset classes, management shifted its strategy to more aggressively pursue disposition of selected problem assets within these classes and adjusted values accordingly. Included in total charge-offs and losses on OREO of $89.3 million for fourth quarter 2010 was an additional $47.7 million attributable to further reductions of carrying value of these selected non-performing assets. The supplemental schedules available on the Company’s website provide a summary of the earnings impact of these actions, as well as additional detail regarding the charge-offs and OREO write-downs by asset class.
Securities Portfolio
Approximately 95% of the Company’s $1.1 billion available-for-sale portfolio is comprised of municipals, collateralized mortgage obligations (“CMOs”), and other mortgage-backed securities. The remainder consists of trust-preferred collateralized debt obligation pools (“CDOs”) with a fair value of $14.9 million and an aggregate unrealized loss of $34.8 million, and miscellaneous other securities totaling $35.0 million. Net securities gains were $1.7 million for fourth quarter 2010 and were net of other-than-temporary impairment charges of $56 thousand on an equity security. Net unrealized losses at December 31, 2010 were $32.5 million, up from $5.8 million at September 30, 2010 and $21.3 million at December 31, 2009 and reflect the impact of the higher interest rate environment on the Company’s portfolio.
Capital Management
As reflected in the table on page 8, all regulatory mandated ratios for characterization as “well-capitalized” were exceeded as of December 31, 2010. 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.
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About the Company
First Midwest is the premier relationship-based banking franchise in the growing Chicagoland banking market. As one of the Chicago metropolitan area’s largest independent bank holding companies, First Midwest provides the full range of both business and retail banking and trust and investment management services through 98 offices located in 65 communities, primarily in metropolitan Chicago. First Midwest was recently recognized by the Chicago Tribune as one of the top 20 best places to work in Chicago among large employers.
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, January 26, 2011 at 10:00 A.M. (ET). Members of the public who would like to listen to the conference call should dial (877) 317-6789 (U.S. domestic) or (412) 317-6789 (international) and ask for the First Midwest Bancorp, Inc. Earnings Conference Call. 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 (877) 344-7529 (U.S. domestic) or (412) 317-0088 (international) conference I.D. 447286 beginning one hour after completion of the live call until 8:00 A.M. (ET) on February 2, 2011. 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.
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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 and Asset Quality Ratios, Excluding Covered Assets |
• | Covered Assets |
• | Non-performing Assets and Past Due Loans |
• | 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 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 26, 2011 |
Operating Highlights
Unaudited
(Dollar amounts in thousands except per share data) | Quarters Ended | Years Ended | ||||||||||||||||||
December 31, 2010 | September 30, 2010 | December 31, 2009 | December 31, 2010 | December 31, 2009 | ||||||||||||||||
Net (loss) income | $ | (28,159 | ) | $ | 2,585 | $ | (37,491 | ) | $ | (9,684 | ) | $ | (25,750 | ) | ||||||
Net (loss) income applicable to common shares | (30,327 | ) | 11 | (39,542 | ) | (19,717 | ) | (35,551 | ) | |||||||||||
Diluted (loss) earnings per common share | $ | (0.41 | ) | $ | 0.00 | $ | (0.73 | ) | $ | (0.27 | ) | $ | (0.71 | ) | ||||||
Return on average common equity | (12.49 | %) | 0.00 | % | (19.84 | %) | (2.06 | %) | (4.84 | %) | ||||||||||
Return on average assets | (1.34 | %) | 0.13 | % | (1.92 | %) | (0.12 | %) | (0.32 | %) | ||||||||||
Net interest margin | 4.02 | % | 4.05 | % | 4.04 | % | 4.13 | % | 3.72 | % | ||||||||||
Efficiency ratio | 59.08 | % | 59.91 | % | 58.48 | % | 58.84 | % | 57.86 | % |
Balance Sheet Highlights
Unaudited
(Dollar amounts in thousands except per share data) | As Of | |||||||||||
December 31, 2010 | September 30, 2010 | December 31, 2009 | ||||||||||
Total assets | $ | 8,146,973 | $ | 8,376,494 | $ | 7,710,672 | ||||||
Total loans, excluding covered loans | 5,100,560 | 5,164,666 | 5,203,246 | |||||||||
Covered assets(1) | 493,319 | 519,305 | 223,245 | |||||||||
Total deposits | 6,511,476 | 6,677,259 | 5,885,279 | |||||||||
Total stockholders’ equity | 1,112,045 | 1,160,059 | 941,521 | |||||||||
Common stockholders’ equity | 919,045 | 967,059 | 748,521 | |||||||||
Book value per common share | $ | 12.40 | $ | 13.06 | $ | 13.66 | ||||||
Period end common shares outstanding | 74,096 | 74,057 | 54,793 |
(1) | Covered assets were obtained through the FDIC-assisted transactions related to First DuPage Bank on October 23, 2009, Peotone Bank and Trust Company on April 23, 2010, and Palos Bank and Trust Company on August 13, 2010. Refer to table on page 14. |
Capital Ratios
Unaudited
As Of | ||||||||||||
December 31, 2010 | September 30, 2010 | December 31, 2009 | ||||||||||
Regulatory capital ratios: | ||||||||||||
Total capital to risk-weighted assets | 16.18 | % | 16.82 | % | 13.94 | % | ||||||
Tier 1 capital to risk-weighted assets | 14.12 | % | 14.77 | % | 11.88 | % | ||||||
Tier 1 leverage to average assets | 11.10 | % | 11.99 | % | 10.18 | % | ||||||
Regulatory capital ratios, excluding preferred stock: | ||||||||||||
Total capital to risk-weighted assets | 13.13 | % | 13.81 | % | 10.93 | % | ||||||
Tier 1 capital to risk-weighted assets | 11.06 | % | 11.76 | % | 8.88 | % | ||||||
Tier 1 leverage to average assets | 8.70 | % | 9.55 | % | 7.61 | % | ||||||
Tier 1 common capital to risk-weighted assets | 9.72 | % | 10.44 | % | 7.56 | % | ||||||
Tangible common equity ratios: | ||||||||||||
Tangible common equity to tangible assets | 7.99 | % | 8.34 | % | 6.29 | % | ||||||
Tangible common equity, excluding accumulated other comprehensive loss, to tangible assets | 8.34 | % | 8.46 | % | 6.54 | % | ||||||
Tangible common equity to risk-weighted assets | 9.93 | % | 10.51 | % | 7.27 | % |
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First Midwest Bancorp, Inc. | Press Release Dated January 26, 2011 |
Condensed Consolidated Statements of Financial Condition
Unaudited | December 31, | |||||||
(Amounts in thousands) | 2010 | 2009 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 102,495 | $ | 101,177 | ||||
Federal funds sold and other short-term investments | 483,281 | 26,202 | ||||||
Trading account securities, at fair value | 15,282 | 14,236 | ||||||
Securities available-for-sale, at fair value | 1,057,802 | 1,266,760 | ||||||
Securities held-to-maturity, at amortized cost | 81,320 | 84,182 | ||||||
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 61,338 | 56,428 | ||||||
Loans, excluding covered loans | 5,100,560 | 5,203,246 | ||||||
Covered loans | 374,640 | 146,319 | ||||||
Allowance for loan losses | (142,572 | ) | (144,808 | ) | ||||
Net loans | 5,332,628 | 5,204,757 | ||||||
Other real estate owned (“OREO”), excluding covered OREO | 31,069 | 57,137 | ||||||
Covered OREO | 29,698 | 8,981 | ||||||
Federal Deposit Insurance Corporation (“FDIC”) indemnification asset | 88,981 | 67,945 | ||||||
Premises, furniture, and equipment | 140,907 | 120,642 | ||||||
Investment in bank owned life insurance | 197,644 | 197,962 | ||||||
Goodwill and other intangible assets | 291,383 | 281,479 | ||||||
Accrued interest receivable and other assets | 233,145 | 222,784 | ||||||
Total assets | $ | 8,146,973 | $ | 7,710,672 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Deposits | ||||||||
Transactional deposits | $ | 4,519,492 | $ | 3,885,885 | ||||
Time deposits | 1,991,984 | 1,999,394 | ||||||
Total deposits | 6,511,476 | 5,885,279 | ||||||
Borrowed funds | 303,974 | 691,176 | ||||||
Subordinated debt | 137,744 | 137,735 | ||||||
Accrued interest payable and other liabilities | 81,734 | 54,961 | ||||||
Total liabilities | 7,034,928 | 6,769,151 | ||||||
Preferred stock | 190,882 | 190,233 | ||||||
Common stock | 858 | 670 | ||||||
Additional paid-in capital | 437,550 | 252,322 | ||||||
Retained earnings | 787,678 | 810,626 | ||||||
Accumulated other comprehensive loss, net of tax | (27,739 | ) | (18,666 | ) | ||||
Treasury stock, at cost | (277,184 | ) | (293,664 | ) | ||||
Total stockholders’ equity | 1,112,045 | 941,521 | ||||||
Total liabilities and stockholders’ equity | $ | 8,146,973 | $ | 7,710,672 | ||||
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First Midwest Bancorp, Inc. | Press Release Dated January 26, 2011 |
Condensed Consolidated Statements of Income
Unaudited | Quarters Ended | Years Ended | ||||||||||||||||||
(Amounts in thousands, except per share data) | December 31, 2010 | September 30, 2010 | December 31, 2009 | December 31, 2010 | December 31, 2009 | |||||||||||||||
Interest Income | ||||||||||||||||||||
Loans | $ | 63,983 | $ | 65,416 | $ | 65,668 | $ | 259,318 | $ | 261,221 | ||||||||||
Securities | 10,230 | 11,920 | 14,848 | 49,801 | 77,486 | |||||||||||||||
Covered loans | 7,431 | 4,294 | 1,419 | 17,285 | 1,419 | |||||||||||||||
Federal funds sold and other short-term investments | 832 | 708 | 435 | 2,463 | 1,625 | |||||||||||||||
Total interest income | 82,476 | 82,338 | 82,370 | 328,867 | 341,751 | |||||||||||||||
Interest Expense | ||||||||||||||||||||
Deposits | 7,907 | 9,049 | 12,774 | 37,127 | 64,177 | |||||||||||||||
Borrowed funds | 711 | 797 | 1,276 | 3,267 | 12,569 | |||||||||||||||
Subordinated debt | 2,279 | 2,279 | 2,379 | 9,124 | 13,473 | |||||||||||||||
Total interest expense | 10,897 | 12,125 | 16,429 | 49,518 | 90,219 | |||||||||||||||
Net interest income | 71,579 | 70,213 | 65,941 | 279,349 | 251,532 | |||||||||||||||
Provision for loan losses | 73,897 | 33,576 | 93,000 | 147,349 | 215,672 | |||||||||||||||
Net interest income (loss) after provision for loan losses | (2,318 | ) | 36,637 | (27,059 | ) | 132,000 | 35,860 | |||||||||||||
Noninterest Income | ||||||||||||||||||||
Service charges on deposit accounts | 9,202 | 9,249 | 9,977 | 35,884 | 38,754 | |||||||||||||||
Trust and investment advisory fees | 4,040 | 3,728 | 3,704 | 15,063 | 14,059 | |||||||||||||||
Other service charges, commissions, and fees | 4,506 | 4,932 | 4,280 | 18,238 | 16,529 | |||||||||||||||
Card-based fees | 4,640 | 4,547 | 4,000 | 17,577 | 15,826 | |||||||||||||||
Total fee-based revenues | 22,388 | 22,456 | 21,961 | 86,762 | 85,168 | |||||||||||||||
Bank owned life insurance income | 696 | 267 | 281 | 1,560 | 2,263 | |||||||||||||||
Securities gains (losses), net | 1,662 | 6,376 | (5,772 | ) | 12,216 | 2,110 | ||||||||||||||
Gains on FDIC-assisted transactions | — | — | 13,071 | 4,303 | 13,071 | |||||||||||||||
Gains on early extinguishment of debt | — | — | 1,267 | — | 15,258 | |||||||||||||||
Other | 1,421 | 1,654 | 939 | 3,710 | 5,132 | |||||||||||||||
Total noninterest income | 26,167 | 30,753 | 31,747 | 108,551 | 123,002 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Salaries and employee benefits | 31,028 | 29,926 | 27,592 | 114,378 | 106,548 | |||||||||||||||
Losses realized on OREO | 15,412 | 8,265 | 14,051 | 40,480 | 18,554 | |||||||||||||||
OREO expense, net | 2,408 | 1,312 | 1,642 | 9,554 | 4,905 | |||||||||||||||
FDIC insurance | 2,967 | 2,835 | 2,720 | 10,880 | 13,673 | |||||||||||||||
Net occupancy and equipment expense | 7,916 | 8,326 | 7,661 | 32,218 | 31,724 | |||||||||||||||
Loan remediation expense | 2,330 | 2,817 | 2,890 | 11,020 | 7,458 | |||||||||||||||
Other professional fees | 2,194 | 3,370 | 2,478 | 11,883 | 8,338 | |||||||||||||||
Other | 12,819 | 11,926 | 11,487 | 48,366 | 43,588 | |||||||||||||||
Total noninterest expense | 77,074 | 68,777 | 70,521 | 278,779 | 234,788 | |||||||||||||||
Loss before income tax benefit | (53,225 | ) | (1,387 | ) | (65,833 | ) | (38,228 | ) | (75,926 | ) | ||||||||||
Income tax benefit | (25,066 | ) | (3,972 | ) | (28,342 | ) | (28,544 | ) | (50,176 | ) | ||||||||||
Net (loss) income | (28,159 | ) | 2,585 | (37,491 | ) | (9,684 | ) | (25,750 | ) | |||||||||||
Preferred dividends | (2,579 | ) | (2,575 | ) | (2,569 | ) | (10,299 | ) | (10,265 | ) | ||||||||||
Net loss (income) applicable to non-vested restricted shares | 411 | 1 | 518 | 266 | 464 | |||||||||||||||
Net (Loss) Income Applicable to Common Shares | $ | (30,327 | ) | $ | 11 | $ | (39,542 | ) | $ | (19,717 | ) | $ | (35,551 | ) | ||||||
Diluted Loss Per Common Share | $ | (0.41 | ) | $ | — | $ | (0.73 | ) | $ | (0.27 | ) | $ | (0.71 | ) | ||||||
Dividends Declared Per Common Share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.04 | $ | 0.04 | ||||||||||
Weighted Average Diluted Common Shares Outstanding | 73,085 | 73,072 | 54,152 | 72,422 | 50,034 |
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First Midwest Bancorp, Inc. | Press Release Dated January 26, 2011 |
Pre-Tax, Pre-Provision Core Operating Earnings(1)
Unaudited | ||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||
Quarters Ended | Years Ended | |||||||||||||||||||
December 31, 2010 | September 30, 2010 | December 31, 2009 | December 31, 2010 | December 31, 2009 | ||||||||||||||||
Loss before income tax benefit (benefit) expense | $ | (53,225 | ) | $ | (1,387 | ) | $ | (65,833 | ) | $ | (38,228 | ) | $ | (75,926 | ) | |||||
Provision for loan losses | 73,897 | 33,576 | 93,000 | 147,349 | 215,672 | |||||||||||||||
Pre-tax, pre-provision earnings | 20,672 | 32,189 | 27,167 | 109,121 | 139,746 | |||||||||||||||
Non-Operating Items | ||||||||||||||||||||
Securities gains (losses), net | 1,662 | 6,376 | (5,772 | ) | 12,216 | 2,110 | ||||||||||||||
Gains on FDIC-assisted transactions | — | — | 13,071 | 4,303 | 13,071 | |||||||||||||||
Gains on early extinguishment of debt | — | — | 1,267 | — | 15,258 | |||||||||||||||
Losses realized on OREO | (15,412 | ) | (8,265 | ) | (14,051 | ) | (40,480 | ) | (18,554 | ) | ||||||||||
Integration costs associated with FDIC-assisted acquisitions | (576 | ) | (847 | ) | — | (3,324 | ) | — | ||||||||||||
FDIC special deposit insurance assessment | — | — | — | — | (3,500 | ) | ||||||||||||||
Total non-operating items | (14,326 | ) | (2,736 | ) | (5,485 | ) | (27,285 | ) | 8,385 | |||||||||||
Pre-tax, pre-provision core operating earnings | $ | 34,998 | $ | 34,925 | $ | 32,652 | $ | 136,406 | $ | 131,361 | ||||||||||
Pre-tax, pre-provision core operating earnings to risk- weighted assets | 2.21 | % | 2.18 | % | 2.03 | % | 2.16 | % | 2.04 | % |
(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 26, 2011 |
Loan Portfolio Composition
Unaudited | ||||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||
As Of | Percent Change From | |||||||||||||||||||||||
12/31/10 | % of Total | 9/30/10 | 12/31/09 | 9/30/10 | 12/31/09 | |||||||||||||||||||
Corporate: | ||||||||||||||||||||||||
Commercial and industrial | $ | 1,465,903 | 28.7 | % | $ | 1,472,439 | $ | 1,438,063 | (0.4 | %) | 1.9 | % | ||||||||||||
Agricultural and farmland | 227,756 | 4.5 | % | 212,800 | 209,945 | 7.0 | % | 8.5 | % | |||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Office | 396,836 | 7.8 | % | 402,947 | 394,228 | (1.5 | %) | 0.7 | % | |||||||||||||||
Retail | 328,751 | 6.4 | % | 329,153 | 331,803 | (0.1 | %) | (0.9 | %) | |||||||||||||||
Industrial | 478,026 | 9.4 | % | 483,549 | 486,934 | (1.1 | %) | (1.8 | %) | |||||||||||||||
Total office, retail, and industrial | 1,203,613 | 23.6 | % | 1,215,649 | 1,212,965 | (1.0 | %) | (0.8 | %) | |||||||||||||||
Construction: | ||||||||||||||||||||||||
Residential construction | 174,690 | 3.4 | % | 226,126 | 313,919 | (22.7 | %) | (44.4 | %) | |||||||||||||||
Commercial construction and land | 164,472 | 3.2 | % | 193,041 | 231,518 | (14.8 | %) | (29.0 | %) | |||||||||||||||
Total construction | 339,162 | 6.6 | % | 419,167 | 545,437 | (19.1 | %) | (37.8 | %) | |||||||||||||||
Multi-family | 349,862 | 6.9 | % | 350,458 | 333,961 | (0.2 | %) | 4.8 | % | |||||||||||||||
Investor-owned rental property | 124,671 | 2.4 | % | 119,974 | 119,132 | 3.9 | % | 4.6 | % | |||||||||||||||
Other commercial real estate | 731,686 | 14.4 | % | 717,903 | 679,851 | 1.9 | % | 7.6 | % | |||||||||||||||
Total commercial real estate | 2,748,994 | 53.9 | % | 2,823,151 | 2,891,346 | (2.6 | %) | (4.9 | %) | |||||||||||||||
Total corporate loans | 4,442,653 | 87.1 | % | 4,508,390 | 4,539,354 | (1.5 | %) | (2.1 | %) | |||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity | 445,243 | 8.7 | % | 457,981 | 470,523 | (2.8 | %) | (5.4 | %) | |||||||||||||||
Real estate 1-4 family | 160,890 | 3.2 | % | 150,110 | 139,983 | 7.2 | % | 14.9 | % | |||||||||||||||
Other consumer | 51,774 | 1.0 | % | 48,185 | 53,386 | 7.4 | % | (3.0 | %) | |||||||||||||||
Total consumer loans | 657,907 | 12.9 | % | 656,276 | 663,892 | 0.2 | % | (0.9 | %) | |||||||||||||||
Total loans, excluding covered loans | 5,100,560 | 100.0 | % | 5,164,666 | 5,203,246 | (1.2 | %) | (2.0 | %) | |||||||||||||||
Covered loans | 374,640 | 399,032 | 146,319 | |||||||||||||||||||||
Total loans | $ | 5,475,200 | $ | 5,563,698 | $ | 5,349,565 | ||||||||||||||||||
12
First Midwest Bancorp, Inc. | Press Release Dated January 26, 2011 |
Asset Quality, Excluding Covered Assets
Unaudited | ||||||||||||||||||||
(Dollar amounts in thousands) | As Of | |||||||||||||||||||
12/31/10 | % of Loan Category | % of Total | 9/30/10 | 12/31/09 | ||||||||||||||||
Non-accrual loans: | ||||||||||||||||||||
Commercial and industrial | $ | 50,088 | 3.42 | % | 23.7 | % | $ | 40,955 | $ | 28,193 | ||||||||||
Agricultural and farmland | 2,497 | 1.10 | % | 1.2 | % | 3,495 | 2,673 | |||||||||||||
Office, retail, and industrial | 19,573 | 1.63 | % | 9.2 | % | 21,721 | 21,396 | |||||||||||||
Residential construction | 52,122 | 29.84 | % | 24.6 | % | 61,050 | 112,798 | |||||||||||||
Commercial construction and land | 28,685 | 17.44 | % | 13.5 | % | 21,471 | 20,864 | |||||||||||||
Multi-family | 6,203 | 1.77 | % | 2.9 | % | 6,813 | 12,486 | |||||||||||||
Investor-owned rental property | 6,039 | 4.84 | % | 2.9 | % | 4,107 | 4,351 | |||||||||||||
Other commercial real estate | 34,566 | 4.72 | % | 16.3 | % | 40,409 | 28,006 | |||||||||||||
Consumer | 12,009 | 1.83 | % | 5.7 | % | 11,345 | 13,448 | |||||||||||||
Total non-accrual loans | 211,782 | 4.15 | % | 100.0 | % | 211,366 | 244,215 | |||||||||||||
90 days past due loans (still accruing interest): | ||||||||||||||||||||
Commercial and industrial | 1,552 | 0.11 | % | 36.6 | % | 2,909 | 1,964 | |||||||||||||
Agricultural and farmland | 187 | 0.08 | % | 4.4 | % | 2 | — | |||||||||||||
Office, retail, and industrial | — | 0.00 | % | 0.0 | % | 460 | 330 | |||||||||||||
Residential construction | 200 | 0.11 | % | 4.7 | % | 408 | 86 | |||||||||||||
Commercial construction and land | — | 0.00 | % | 0.0 | % | — | — | |||||||||||||
Multi-family | — | 0.00 | % | 0.0 | % | — | 55 | |||||||||||||
Investor-owned rental property | 135 | 0.11 | % | 3.2 | % | 562 | 225 | |||||||||||||
Other commercial real estate | 210 | 0.03 | % | 4.9 | % | 2,858 | 130 | |||||||||||||
Consumer | 1,960 | 0.30 | % | 46.2 | % | 1,937 | 1,289 | |||||||||||||
Total 90 days past due loans | 4,244 | 0.08 | % | 100.0 | % | 9,136 | 4,079 | |||||||||||||
Total non-performing loans | 216,026 | 220,502 | 248,294 | |||||||||||||||||
Restructured loans, still accruing interest | 22,371 | 11,002 | 30,553 | |||||||||||||||||
OREO, excluding covered OREO | 31,069 | 52,044 | 57,137 | |||||||||||||||||
Total non-performing assets | $ | 269,466 | $ | 283,548 | $ | 335,984 | ||||||||||||||
30-89 days past due loans | $ | 23,646 | 0.46 | % | $ | 41,590 | $ | 37,912 | ||||||||||||
Allowance for credit losses(1) | $ | 145,072 | $ | 145,019 | $ | 144,808 | ||||||||||||||
Asset Quality Ratios, Excluding Covered Assets | ||||||||||||||||||||
Non-accrual loans to loans | 4.15 | % | 4.09 | % | 4.69 | % | ||||||||||||||
Non-performing loans to loans | 4.24 | % | 4.27 | % | 4.77 | % | ||||||||||||||
Non-performing assets to loans plus OREO | 5.25 | % | 5.44 | % | 6.39 | % | ||||||||||||||
Allowance for credit losses to loans | 2.84 | % | 2.81 | % | 2.78 | % | ||||||||||||||
Allowance for credit losses to non-accrual loans | 69 | % | 69 | % | 59 | % | ||||||||||||||
Allowance for credit losses to non-performing loans | 67 | % | 66 | % | 58 | % |
(1) | The allowance for credit losses includes a liability for unfunded commitments of $2.5 million as of December 31, 2010 and $450 thousand as of September 30, 2010. |
13
First Midwest Bancorp, Inc. | Press Release Dated January 26, 2011 |
Covered Assets(1)
Unaudited | ||||||||||||
(Dollar amounts in thousands) | As Of | |||||||||||
December 31, 2010 | September 30, 2010 | December 31, 2009 | ||||||||||
Loans (2) | $ | 374,640 | $ | 399,032 | $ | 146,319 | ||||||
FDIC indemnification asset | 88,981 | 88,723 | 67,945 | |||||||||
Other real estate owned(2) | 29,698 | 31,550 | 8,981 | |||||||||
Total covered assets | $ | 493,319 | $ | 519,305 | $ | 223,245 | ||||||
90 days or more past due loans(3) | $ | 86,910 | $ | 74,777 | $ | 30,286 | ||||||
30-89 days past due loans(3) | $ | 18,445 | $ | 24,005 | $ | 22,988 | ||||||
Net charge-offs (recoveries) – quarter to date | $ | 935 | $ | (11 | ) | $ | — |
(1) | Covered assets were obtained through the FDIC-assisted transactions related to First DuPage Bank on October 23, 2009, Peotone Bank and Trust Company on April 23, 2010, and Palos Bank and Trust Company on August 13, 2010. |
(2) | Covered loans and other real estate owned are subject to loss sharing agreements with the FDIC whereby the Company is indemnified against the majority of any losses incurred related to these assets. |
(3) | These loans are past due based on contractual terms, but are performing according to the Company’s expectations of cash flows. |
14
First Midwest Bancorp, Inc. | Press Release Dated January 26, 2011 |
Non-performing Assets and Past Due Loans
Unaudited | ||||||||||||||||||||
(Dollar amounts in thousands) | As Of | |||||||||||||||||||
2 010 | 2009 | |||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||||||
Non-performing assets, excluding covered assets | ||||||||||||||||||||
Non-accrual loans | $ | 211,782 | $ | 211,366 | $ | 193,689 | $ | 216,073 | $ | 244,215 | ||||||||||
90 days or more past due loans | 4,244 | 9,136 | 6,280 | 7,995 | 4,079 | |||||||||||||||
Total non-performing loans | 216,026 | 220,502 | 199,969 | 224,068 | 248,294 | |||||||||||||||
Restructured loans (still accruing interest) | 22,371 | 11,002 | 9,030 | 5,168 | 30,553 | |||||||||||||||
Other real estate owned | 31,069 | 52,044 | 57,023 | 62,565 | 57,137 | |||||||||||||||
Total non-performing assets | $ | 269,466 | $ | 283,548 | $ | 266,022 | $ | 291,801 | $ | 335,984 | ||||||||||
30-89 days past due loans | $ | 23,646 | $ | 41,590 | $ | 32,012 | $ | 28,018 | $ | 37,912 | ||||||||||
Non-accrual loans to total loans | 4.15 | % | 4.09 | % | 3.72 | % | 4.16 | % | 4.69 | % | ||||||||||
Non-performing loans to total loans | 4.24 | % | 4.27 | % | 3.84 | % | 4.31 | % | 4.77 | % | ||||||||||
Non-performing assets to loans plus OREO | 5.25 | % | 5.44 | % | 5.05 | % | 5.55 | % | 6.39 | % | ||||||||||
Covered assets(1) | ||||||||||||||||||||
Non-accrual loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
90 days or more past due loans(2) | 86,910 | 74,777 | 47,912 | 52,464 | 30,286 | |||||||||||||||
Total non-performing loans | 86,910 | 74,777 | 47,912 | 52,464 | 30,286 | |||||||||||||||
Restructured loans (still accruing interest) | — | — | — | — | — | |||||||||||||||
Other real estate owned | 29,698 | 31,550 | 10,657 | 8,649 | 8,981 | |||||||||||||||
Total non-performing assets | $ | 116,608 | $ | 106,327 | $ | 58,569 | $ | 61,113 | $ | 39,267 | ||||||||||
30-89 days past due loans | $ | 18,445 | $ | 24,005 | $ | 13,725 | $ | 10,175 | $ | 22,988 | ||||||||||
Non-performing assets, including covered assets | ||||||||||||||||||||
Non-accrual loans | $ | 211,782 | $ | 211,366 | $ | 193,689 | $ | 216,073 | $ | 244,215 | ||||||||||
90 days or more past due loans | 91,154 | 83,913 | 54,192 | 60,459 | 34,365 | |||||||||||||||
Total non-performing loans | 302,936 | 295,279 | 247,881 | 276,532 | 278,580 | |||||||||||||||
Restructured loans (still accruing interest) | 22,371 | 11,002 | 9,030 | 5,168 | 30,553 | |||||||||||||||
Other real estate owned | 60,767 | 83,594 | 67,680 | 71,214 | 66,118 | |||||||||||||||
Total non-performing assets | $ | 386,074 | $ | 389,875 | $ | 324,591 | $ | 352,914 | $ | 375,251 | ||||||||||
30-89 days past due loans | $ | 42,091 | $ | 65,595 | $ | 45,737 | $ | 38,193 | $ | 60,900 | ||||||||||
Non-accrual loans to total loans | 3.87 | % | 3.80 | % | 3.60 | % | 4.05 | % | 4.57 | % | ||||||||||
Non-performing loans to total loans | 5.53 | % | 5.31 | % | 4.61 | % | 5.18 | % | 5.21 | % | ||||||||||
Non-performing assets to loans plus OREO | 6.97 | % | 6.90 | % | 5.97 | % | 6.52 | % | 6.93 | % |
(1) | Covered assets were recorded at their estimated fair values at the time of acquisition. These assets are covered by loss sharing agreements with the FDIC that substantially mitigate the risk of loss. |
(2) | These loans are past due based on contractual terms, but are performing according to the Company’s expectations of cash flows. |
15
First Midwest Bancorp, Inc. | Press Release Dated January 26, 2011 |
Charge-off Data
Unaudited | ||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||
Quarters Ended | ||||||||||||||||||||
12/31/10 | % of Loan Category | % of Total | 9/30/10 | 12/31/09 | ||||||||||||||||
Net loans charged-off: | ||||||||||||||||||||
Commercial and industrial | $ | 10,198 | 0.70 | % | 14.0 | % | $ | 13,262 | $ | 23,320 | ||||||||||
Agricultural and farmland | 125 | 0.05 | % | 0.2 | % | 489 | 180 | |||||||||||||
Office, retail, and industrial | 2,888 | 0.24 | % | 4.0 | % | 2,825 | 3,265 | |||||||||||||
Residential construction | 35,935 | 20.57 | % | 49.3 | % | 4,460 | 38,315 | |||||||||||||
Commercial construction and land | 7,743 | 4.71 | % | 10.6 | % | 228 | 2,714 | |||||||||||||
Multi-family | 1,206 | 0.34 | % | 1.6 | % | 222 | 2,325 | |||||||||||||
Investor-owned rental property | 799 | 0.64 | % | 1.1 | % | 748 | 1,229 | |||||||||||||
Other commercial real estate | 11,403 | 1.56 | % | 15.6 | % | 9,469 | 7,908 | |||||||||||||
Consumer | 2,612 | 0.40 | % | 3.6 | % | 2,342 | 3,205 | |||||||||||||
Total net loans charged-off, excluding covered assets | 72,909 | 1.43 | % | 100.0 | % | 34,045 | 82,461 | |||||||||||||
Net charge-offs (recoveries) on covered loans | 935 | (11 | ) | — | ||||||||||||||||
Total net charge-offs | $ | 73,844 | $ | 34,034 | $ | 82,461 | ||||||||||||||
Net loan charge-offs, excluding covered charge-offs, to average loans, annualized: | ||||||||||||||||||||
Quarter-to-date | 5.61 | % | 2.59 | % | 6.17 | % | ||||||||||||||
Year-to-date | 2.80 | % | 1.87 | % | 3.08 | % |
16
First Midwest Bancorp, Inc. | Press Release Dated January 26, 2011 |
Securities Available-For-Sale
Unaudited | ||||||||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||||
U.S. Agency | Collateralized Mortgage Obligations | Other Mortgage Backed | State and Municipal | Collateralized Debt Obligations | Other | Total | ||||||||||||||||||||||
As of December 31, 2010 | ||||||||||||||||||||||||||||
Amortized cost | $ | 18,000 | $ | 377,692 | $ | 100,780 | $ | 512,063 | $ | 49,695 | $ | 32,070 | $ | 1,090,300 | ||||||||||||||
Gross unrealized gains (losses): | ||||||||||||||||||||||||||||
Gross unrealized gains | 7 | 4,261 | 5,732 | 4,728 | — | 2,957 | 17,685 | |||||||||||||||||||||
Gross unrealized losses | (121 | ) | (2,364 | ) | (61 | ) | (12,800 | ) | (34,837 | ) | — | (50,183 | ) | |||||||||||||||
Net unrealized gains (losses) | (114 | ) | 1,897 | 5,671 | (8,072 | ) | (34,837 | ) | 2,957 | (32,498 | ) | |||||||||||||||||
Fair value | $ | 17,886 | $ | 379,589 | $ | 106,451 | $ | 503,991 | $ | 14,858 | $ | 35,027 | $ | 1,057,802 | ||||||||||||||
As of September 30, 2010 | ||||||||||||||||||||||||||||
Amortized cost | $ | 24,088 | $ | 297,935 | $ | 107,966 | $ | 549,505 | $ | 49,695 | $ | 35,270 | $ | 1,064,459 | ||||||||||||||
Gross unrealized gains (losses): | ||||||||||||||||||||||||||||
Gross unrealized gains | 68 | 4,702 | 6,070 | 19,834 | — | 2,368 | 33,042 | |||||||||||||||||||||
Gross unrealized losses | (21 | ) | (1,639 | ) | (28 | ) | (805 | ) | (36,271 | ) | (128 | ) | (38,892 | ) | ||||||||||||||
Net unrealized gains (losses) | 47 | 3,063 | 6,042 | 19,029 | (36,271 | ) | 2,240 | (5,850 | ) | |||||||||||||||||||
Fair value | $ | 24,135 | $ | 300,998 | $ | 114,008 | $ | 568,534 | $ | 13,424 | $ | 37,510 | $ | 1,058,609 | ||||||||||||||
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 | ||||||||||||||
17