Exhibit 19
FIRST MIDWEST BANCORP, INC.
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QUARTERLY REPORT - MARCH 31, 1995
LETTER TO SHAREHOLDERS:
We are pleased to report that net income for the quarter ended March 31, 1995
increased to $6.0 million, or 49 cents per share, from last year's first quarter
of $5.5 million, or 45 cents per share, an increase on a per share basis of 9%.
Importantly, the $6 million earned in the quarter just ended included only an
inconsequential $5 thousand of gains on securities transactions whereas last
year's first quarter income of $5.5 million included $1.3 million, or 6.5 cents
per share (after tax), in such gains.
The higher first quarter earnings were primarily the result of increased net
interest income related to broad-based loan growth. Factoring out components
related to securities gains and residential mortgage loan activities,
noninterest income approximated the levels of a year ago. Total noninterest
expense was modestly lower than the year earlier period but is not yet
reflective of the savings that will flow from the restructuring underway
commencing late in 1995.
The restructuring initiative announced last year and discussed at length in the
1994 Annual Report is proceeding as planned with the merger of our current four
banks into a single bank to be completed by mid-year and the restructuring to be
fully implemented by the end of the third quarter. The fourth quarter will see
the beginning of the realization of the cost savings to flow from the
restructuring estimated to be $7 million annually.
On February 15 the Board approved a 12% increase in the quarterly cash dividend
on our common stock. First paid on April 5, the new quarterly dividend of 19
cents per share indicates a new annual rate of 76 cents per share as compared to
the previous quarterly and annual rates of 17 cents and 68 cents, respectively.
This represents the third cash dividend increase in as many years and is
indicative of both our improved performance and confidence in our future
prospects.
Our Annual Shareholders Meeting held on April 12 was attended by approximately
200 shareholders, analysts, market makers and other interested parties. Present
at the meeting in person or by proxy were approximately 10.5 million shares, or
85% of the total shares outstanding. The slate of directors elected to serve
until 1998 were: Bruce S. Chelberg, C.D. Oberwortmann, John M. O'Meara and
Robert P. O'Meara, each director receiving at least 99% of the shares voted.
As always, we thank you for your support and look forward to reporting to you on
further performance improvement as the year unfolds.
C. D. OBERWORTMANN ROBERT P. O'MEARA
C. D. Oberwortmann Robert P. O'Meara
Chairman of the Board President and Chief Executive Officer
April 17, 1995
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Quarters Ended
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) March 31,
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(Amounts in thousands except per share data) 1995 1994
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INTEREST INCOME
Interest and fees on loans.......................................... $ 39,743 $ 31,947
Interest on securities.............................................. 14,060 10,927
Interest on funds sold and other short-term investments............. 269 43
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Total interest income............................................. 54,072 42,917
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INTEREST EXPENSE
Interest on deposits................................................ 16,025 12,676
Interest on short-term borrowings................................... 10,515 4,370
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Total interest expense............................................ 26,540 17,046
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Net interest income............................................... 27,532 25,871
PROVISION FOR LOAN LOSSES........................................... 1,632 1,512
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Net interest income after provision for loan losses............... 25,900 24,359
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NONINTEREST INCOME
Service charges on deposit accounts................................. 2,245 2,266
Trust fees.......................................................... 1,488 1,543
Other service charges, commissions and fees......................... 1,530 1,344
Net revenues on real estate loans held for sale..................... 98 499
Securities transactions, net........................................ 5 1,280
Other income........................................................ 573 582
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Total noninterest income.......................................... 5,939 7,514
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NONINTEREST EXPENSE
Salaries and wages.................................................. 9,425 9,017
Retirement and other employee benefits.............................. 2,669 2,765
Occupancy expenses.................................................. 1,418 1,409
Equipment expenses.................................................. 1,450 1,231
Computer processing costs........................................... 1,521 1,195
FDIC insurance premiums............................................. 1,104 1,134
Other expense....................................................... 4,959 6,196
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Total noninterest expense......................................... 22,546 22,947
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Income before income tax expense.................................. 9,293 8,926
Income tax expense.................................................. 3,314 3,411
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NET INCOME........................................................ $ 5,979 $ 5,515
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NET INCOME PER SHARE.............................................. $ 0.49 $ 0.45
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CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (unaudited) March 31,
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(Amounts in thousands) 1995 1994
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ASSETS
Cash and due from banks............................................. $ 114,118 $ 103,940
Funds sold and other short-term investments......................... 13,296 4,854
Securities available for sale....................................... 709,470 839,641
Securities held to maturity......................................... 138,474 35,740
Loans............................................................... 1,816,532 1,608,744
Reserve for loan losses............................................. (24,208) (21,692)
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Net loans......................................................... 1,792,324 1,587,052
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Premises, furniture and equipment................................... 41,503 39,578
Accrued interest receivable and other assets........................ 74,630 67,287
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Total assets........................................................ $ 2,883,815 $ 2,678,092
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits............................................................ $ 1,979,294 $ 1,882,930
Short-term borrowings............................................... 672,237 569,253
Accrued interest payable and other liabilities...................... 31,790 27,844
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Total liabilities................................................. 2,683,321 2,480,027
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Stockholders' Equity:
Common stock........................................................ 23,465 23,465
Additional paid-in capital.......................................... 25,891 26,296
Retained earnings................................................... 169,545 157,247
Unrealized net depreciation on securities available for sale /(1)/.. (10,645) (24)
Treasury stock, at cost............................................. (7,762) (8,919)
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Total stockholders' equity........................................ 200,494 198,065
Total liabilities and stockholders' equity.......................... $ 2,883,815 $ 2,678,092
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/(1)/ Represents the difference, after tax, between the amortized cost and
market value of securities available for sale; this difference will
fluctuate as the market value of such securities changes.
CREDIT QUALITY (unaudited) March 31,
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(Amounts in thousands) 1995 1994
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Nonaccrual loans.................................................... $ 12,481 $ 16,021
Renegotiated loans.................................................. $ 7,704 $ 740
Foreclosed real estate.............................................. $ 8,542 $ 16,030
Loans past due 90 days and still accruing........................... $ 5,894 $ 10,423
Nonperforming loans to loans........................................ 1.11% 1.04%
Nonperforming assets to loans plus foreclosed real estate........... 1.57% 2.02%
Reserve for loan losses to loans.................................... 1.33% 1.35%
Reserve for loan losses to nonperforming loans...................... 119.93% 129.42%
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Net loan charge-offs................................................ $ 1,507 $ 1,474
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Net loan charge-offs to average loans............................... 0.34% 0.38%
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Quarters Ended
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) March 31,
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(Amounts in thousands except per share data) 1995 1994
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Net income......................................... $ 5,979 $ 5,515
Net income per share............................... $ 0.49 $ 0.45
Return on average equity........................... 12.61% 11.18%
Return on average assets........................... 0.85% 0.85%
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Quarters Ended
STOCK PERFORMANCE (unaudited) March 31,
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1995 1994
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Market price:
At period end..................................... $ 24.25 $ 26.00
High.............................................. $ 25.50 $ 26.50
Low............................................... $ 23.25 $ 24.75
Book value per share at period end................. $ 16.41 $ 16.27
Market price to book value multiple at period end.. 1.5X 1.6x
Dividends paid per share........................... $ 0.19 $ 0.17
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INVESTOR INFORMATION
SHAREHOLDER ASSISTANCE
Inquiries related to shareholder records, change of name, address or ownership
of stock and lost stock certificates as well as requests for Dividend
Reinvestment and Dividend Direct Deposit information should be directed to:
American Stock Transfer
40 Wall Street
New York, New York 10005
1-800-937-5449
DIVIDEND PAYMENTS
Subject to approval of the Board of Directors, dividends will be paid on First
Midwest's common stock on or about July 6, 1995, October 4, 1995 and January 4,
1996.
SEC REPORTS AND GENERAL INFORMATION
First Midwest files an annual report to the Securities and Exchange Commission
on Form 10-K and three quarterly reports on Form 10-Q. Requests for such
reports and general inquiries should be directed to James M. Roolf, Corporate
Communications Director, at the Corporate Offices or by telephone at
(708) 778-8700.
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