Exhibit 13
Dear Shareholder:
It is indeed a pleasure to report to you that the Company achieved record
performance in 1996.
Net income for the quarter ended December 31, 1996 increased 104% to a record
$9.0 million, or 53 cents per share, from 1995's fourth quarter of $4.4 million,
or 26 cents per share. Net income for the full year 1996 increased 30% to a
record $33.7 million, or $1.97 per share, as compared to 1995's $25.7 million or
$1.51 per share. Core earnings for both periods exceeded consensus earnings
estimates with the year's performance representing the fifth consecutive year of
improved earnings.
We are pleased to communicate the Company's record performance using this new
"Shareholder Direct" format. The new format incorporates our expanded
Performance Summary (see table) and gives us the flexibility to add other
features as the circumstances suggest.
We remain committed to providing you with timely financial results and trust
that you find the expanded Performance Summary informative. As always, should
you have any questions or comments please contact James Roolf, Corporate
Communications Director, at (630) 875-7452.
Sincerely,
ROBERT P. O'MEARA
Robert P. O'Meara
President and CEO
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PERFORMANCE SUMMARY (1) (unaudited) Quarters Ended Years Ended
(amounts in thousands except per share data) December 31, December 31,
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1996 1995 1996 1995
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STATEMENTS OF INCOME
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Net interest income $31,451 $30,280 $ 122,749 $ 118,567
Provision for loan losses 3,281 3,331 7,469 11,334
Noninterest income 9,391 8,720 31,433 30,835
Noninterest expense 23,377 28,272 94,327 97,599
Income taxes 5,212 3,029 18,670 14,784
Net income $ 8,972 $ 4,368 $ 33,716 $ 25,685
Net income per share $ 0.53 $ 0.26 $ 1.97 $ 1.51
Dividends per share $ 0.200 $ 0.152 $ 0.704 $ 0.608
Return on average assets 1.16% 0.53% 1.09% 0.81%
Return on average stockholders' equity 13.58% 6.97% 13.17% 11.02%
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STATEMENTS OF CONDITION
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Cash $ 107,595 $ 141,336
Investments 828,160 866,484
Loans 2,085,277 2,105,615
Reserve for loan losses (30,148) (29,194)
Other assets 128,354 123,056
Total assets $3,119,238 $3,207,297
Deposits $2,260,667 $2,272,058
Other liabilities 596,431 686,006
Stockholders' equity 262,140 249,233
Total liabilities and stockholders' equity $3,119,238 $3,207,297
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FMBI STOCK PRICE (NASDAQ:NMS)
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At Period End $ 32.63 $ 23.13 $ 32.63 $ 23.13
High 33.00 23.81 33.00 23.81
Low 23.81 22.38 21.38 18.63
Book value per share at period end 15.50 14.58 15.50 14.58
Market price to book value at period end 2.1x 1.6x 2.1x 1.6x
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(1) All stock and per share data has been adjusted for the 5-for-4 stock split
paid on December 16, 1996.
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