Exhibit 13
FOR IMMEDIATE RELEASE
CONTACT: James M. Roolf
630/875-7452
TRADED: Nasdaq
SYMBOL: FMBI
FIRST MIDWEST BANCORP REPORTS RECORD EARNINGS:
FOURTH QUARTER UP 12.8% - FULL YEAR 1999 UP 36.9%
ITASCA, IL., JANUARY 19, 2000 - First Midwest Bancorp, Inc. (Nasdaq: FMBI) today
reported net income for the quarter ended December 31, 1999 increased to a
record $18.1 million, or $0.44 per diluted share, as compared to 1998's fourth
quarter net income of $17.3 million, or $0.39 per diluted share, representing an
increase on a per diluted share basis of 12.8%. The record results for the
quarter equate to returns on average equity and average assets of 19.49% and
1.31%, respectively.
Full year 1999 net income increased to a record $70.9 million, or $1.67 per
diluted share, as compared to 1998's net income of $54.7 million or $1.22 per
diluted share, representing an increase on a per diluted share basis of 36.9%.
Included in 1998 net income were expenses and provisions related to the
acquisition of Heritage Financial Services, Inc. totalling $12.5 million or
$0.28 per share after tax. The year's record results represent returns on
average equity and average assets of 17.39% and 1.34%, respectively.
The improved operating performance of both the quarter and full year is
attributable to increases in both net interest income and noninterest income as
well as tightly-managed noninterest expenses.
The increases in net interest income for both the quarter and full year were
driven by solid loan growth experienced during both periods as discussed below.
Turning to non interest income, increases experienced in all categories of
service charges and fees more than offset the combined effect of declining
mortgage revenues (related to the higher rate-slowed refinance environment of
the year) and significantly lower securities gains. Focusing on operating non
interest expenses, all categories continued to be closely controlled with the
dominant component of salaries and employee benefits increasing only modestly.
Loan growth of 11.2% for the year was propelled by increases recorded during
each of the last three quarters with the growth occurring in virtually all
categories of commercial and consumer loans. At the same time, asset quality
remained sound as both non performing loans and non performing assets at year
end stood at their lowest levels for the year and compared favorably with year
ago levels. Net loan charge offs for both the quarter and full year improved
further and again compared favorably with year ago levels.
In November 1999 the Board of Directors declared a 3 for 2 common stock split
that was paid December 20, 1999 to shareholders of record as of December 3, 1999
and represented the fourth stock split in the last 12 years. At the November
meeting the Board also increased the quarterly dividend 12.5% to $0.18 per
share, this being the eighth such increase in the last seven years.
With assets of $5.5 billion, First Midwest is the largest independent and fifth
overall largest banking company in the highly attractive suburban Chicago
banking market. As the premier independent suburban Chicago banking company,
First Midwest provides commercial banking, trust, investment management,
mortgage and related financial services to a broad array of customers through 73
offices and 105 ATMs located in more than 40 communities of northern Illinois.
2
First Midwest Bancorp, Inc. Quarter Ended Year Ended
Operating Highlights (unaudited) December 31, December 31,
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(Amounts in thousands except per share data) 1999 1998 1999 1998*
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Net income................................................. $18,131 $17,323 $70,909 $54,704
Diluted earnings per share.................................. $ 0.44 $ 0.39 $ 1.67 $ 1.22
Return on average equity.................................... 19.49% 15.18% 17.39% 11.78%
Return on average assets.................................... 1.31% 1.32% 1.34% 1.07%
Net interest margin......................................... 4.06% 4.02% 4.24% 4.21%
Efficiency ratio............................................ 55.47% 55.33% 55.66% 62.43%
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* 1998 includes $12,533 ($16,798 pretax) or $0.28 per share in expenses and
provisions incurred in the third quarter related to the acquisition of
Heritage Financial Services, Inc.
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Quarter Ended Year Ended
Stock Performance (unaudited) December 31, December 31,
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1999 1998 1999 1998
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Market Price, Quarters Ended:
Quarter End.............................................. $ 26.50 $ 25.38 $ 26.50 $ 25.38
High..................................................... $ 30.13 $ 27.75 $ 30.13 $ 34.67
Low...................................................... $ 24.38 $ 23.33 $ 23.04 $ 22.75
Book value per share........................................ $ 8.98 $ 10.40 $ 8.98 $ 10.40
Market price to book value.................................. 2.9 x 2.4 x 2.9 x 2.4 x
Market price to analysts' estimated 1999 earnings........... 15.87 x NA 15.87 x NA
Quarterly dividend declared per share....................... $ 0.18 $ 0.16 $ 0.66 $ 0.61
Shares outstanding, in thousands............................ 41,113 43,549 41,113 43,549
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Note: Per share data has been restated to reflect the three-for-two stock split
paid in December 1999.
First Midwest Bancorp, Inc. Quarter Ended Year Ended
Condensed Consolidated Statements of Income (unaudited) December 31, December 31,
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(Amounts in thousands except per share data) 1999 1998 1999 1998
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Interest Income
Loans....................................................... $ 61,643 $ 61,015 $ 233,744 $ 259,495
Securities.................................................. 32,604 27,163 123,569 98,881
Other....................................................... 606 1,202 3,966 6,221
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Total interest income.................................... 94,853 89,380 361,279 364,597
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Interest Expense
Deposits.................................................... 33,669 35,894 129,177 146,212
Borrowed funds.............................................. 13,394 8,055 39,438 30,804
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Total interest expense................................... 47,063 43,949 168,615 177,016
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Net interest income...................................... 47,790 45,431 192,664 187,581
Provision for Loan Losses................................... 1,484 1,003 5,760 5,542
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Net interest income after provision for loan losses...... 46,306 44,428 186,904 182,039
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Noninterest Income
Service charges on deposit accounts......................... 5,170 4,529 18,720 17,100
Trust and investment management fees........................ 2,609 2,209 10,135 9,134
Other service charges, commissions and fees................. 3,038 2,565 11,825 10,197
Mortgage banking revenues................................... 976 3,002 5,646 8,535
Corporate owned life insurance income....................... 1,334 896 5,209 3,135
Security gains, net......................................... 401 551 97 1,657
Other....................................................... 1,712 1,467 6,702 5,704
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Total noninterest income................................. 15,240 15,219 58,334 55,462
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Noninterest Expense
Salaries and employee benefits.............................. 19,756 19,073 79,015 77,294
Occupancy expenses.......................................... 3,225 3,003 13,366 12,039
Equipment expenses.......................................... 2,050 2,204 8,479 8,354
Computer processing costs................................... 2,878 2,202 10,113 9,846
Acquisition charges......................................... 0 0 0 16,148
Other expenses.............................................. 9,434 8,765 38,836 35,121
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Total noninterest expense................................ 37,343 35,247 149,809 158,802
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Income before taxes......................................... 24,203 24,400 95,429 78,699
Income tax expense.......................................... 6,072 7,077 24,520 23,995
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Net Income............................................... $ 18,131 $ 17,323 $ 70,909 $ 54,704
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Diluted Earnings Per Share............................... $ 0.44 $ 0.39 $ 1.67 $ 1.22
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Dividends Declared Per Share............................. $ 0.18 $ 0.16 $ 0.66 $ 0.61
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Note: Per share data has been restated to reflect the three-for-two stock split
paid in December 1999.
First Midwest Bancorp, Inc.
Condensed Consolidated Statements of Condition (unaudited) December 31,
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(Amounts in thousands) 1999 1998
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Assets
Cash and due from banks.................................................. $ 155,407 $ 156,524
Funds sold and other short-term investments.............................. 13,781 75,247
Securities available for sale............................................ 2,033,247 1,979,115
Securities held to maturity, at amortized cost........................... 43,543 48,964
Loans.................................................................... 2,962,487 2,664,417
Reserve for loan losses.................................................. (42,645) (43,290)
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Net loans......................................................... 2,919,842 2,621,127
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Premises, furniture and equipment........................................ 80,408 78,168
Investment in corporate owned life insurance............................. 105,343 100,135
Accrued interest receivable and other assets............................. 160,017 133,607
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Total assets...................................................... $ 5,511,588 $ 5,192,887
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Liabilities and Stockholders' Equity
Deposits................................................................. $ 4,001,183 $ 4,050,451
Borrowed funds........................................................... 1,077,732 623,899
Accrued interest payable and other liabilities........................... 63,300 65,639
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Total liabilities................................................. 5,142,215 4,739,989
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Common stock............................................................. 455 455
Additional paid-in capital............................................... 81,957 85,889
Retained earnings........................................................ 442,711 399,446
Accumulated other comprehensive income................................... (49,072) 9,875
Treasury stock, at cost.................................................. (106,678) (42,767)
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Total stockholders' equity........................................ 369,373 452,898
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Total liabilities and stockholders' equity........................ $ 5,511,588 $ 5,192,887
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Asset Quality (unaudited) Quarters Ending
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(Amounts in thousands) 12/31/99 09/30/99 06/30/99 03/31/99 12/31/98
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Nonaccrual loans........................................... $20,278 $20,905 $18,995 $18,055 $20,638
Foreclosed real estate..................................... 1,157 1,529 1,792 1,960 1,015
Loans past due 90 days and still accruing.................. 5,286 4,998 5,195 5,005 5,342
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Nonperforming loans to loans............................... 0.68% 0.73% 0.69% 0.68% 0.77%
Nonperforming assets to loans plus foreclosed real estate.. 0.72% 0.78% 0.75% 0.75% 0.81%
Reserve for loan losses to loans........................... 1.44% 1.49% 1.54% 1.62% 1.62%
Reserve for loan losses to nonperforming loans............. 210% 204% 224% 238% 210%
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Net loan charge-offs....................................... $ 1,437 $ 1,801 $ 1,564 $ 1,603 $ 2,550
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Net loan charge-offs to average loans...................... 0.20% 0.26% 0.23% 0.24% 0.36%
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