Exhibit 99
First Midwest Bancorp, Inc. and Heritage Financial Services, Inc.
Pro forma Statement of Condition
(unaudited)
and
Pro forma Statement of Income
(unaudited)
as of, and for the period ended,
March 31, 1998
(Amounts in thousands except per share data)
**********
The accompanying financial information presents the statement of condition and
statement of income of First Midwest and Heritage on a pro forma basis as if
the transition had been consummated on January 1, 1998, with all prior periods
being re-stated.
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PRO FORMA CONDENSED STATEMENT OF CONDITION (UNAUDITED)
As of March 31, 1998
-------------------------------------------------------
First Pro Forma
Midwest Heritage Pro Forma Consolidated
---------- ---------- --------- ------------
ASSETS
Cash and due from banks............................... $ 133,498 $ 35,088 $(15,400) (1) $ 153,186
Funds sold and other short-term investments........... 7,666 43,255 --- 50,921
Mortgages held for sale............................... 44,365 -- --- 44,365
Securities available for sale......................... 1,072,764 380,516 --- 1,453,280
Securities held to maturity........................... 26,720 111,393 --- 138,113
Trading account securities............................ --- 471 --- 471
Loans................................................. 2,282,947 718,533 --- 3,001,480
Reserve for loan losses............................... (35,822) (9,801) --- (45,623)
---------- ---------- -------- ----------
Net loans.......................................... 2,247,125 708,732 --- 2,955,857
---------- ---------- -------- ----------
Premises, furniture and equipment..................... 58,807 19,352 --- 78,159
Accrued interest receivable and other assets.......... 138,002 26,286 --- 164,288
---------- ---------- -------- ----------
Total Assets....................................... $3,728,947 $1,325,093 $(15,400) $5,038,640
========== ========== ======== ==========
LIABILITIES
Deposits.............................................. $2,800,167 $1,134,409 $ --- $3,934,576
Short-term borrowings................................. 548,345 52,442 --- 600,787
Accrued interest payable and other liabilities........ 41,180 12,364 (3,850) (1) 49,694
---------- ---------- -------- ----------
Total liabilities.................................. 3,389,692 1,199,215 (3,850) 4,585,057
---------- ---------- -------- ----------
STOCKHOLDERS' EQUITY
Common Stock.......................................... 201 -- 93 (2) 294
Additional paid-in capital............................ 62,901 24,260 (93) (2) 87,068
Retained earnings..................................... 288,675 96,130 (11,550) (1) 373,255
Accumulated other comprehensive income................ 1,191 5,579 --- 6,770
Less: Treasury stock.................................. (13,713) (91) --- (13,804)
---------- ---------- -------- ----------
Total stockholders' equity......................... 339,255 125,878 (11,550) 453,583
---------- ---------- -------- ----------
Total Liabilities and Stockholders' Equity......... $3,728,947 $1,325,093 $(15,400) $5,038,640
========== ========== ======== ==========
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PRO FORMA CONDENSED STATEMENT OF INCOME (UNAUDITED)
March 31, 1998
--------------------------------------
First Pro Forma
Midwest Heritage Consolidated
-------- --------- ------------
INTEREST INCOME
Interest and fees on loans............................................... $ 51,957 $ 14,913 $ 66,870
Interest on securities................................................... 15,694 8,133 23,827
Interest on funds sold and other short-term investments.................. 856 303 1,159
-------- -------- --------
Total interest income................................................ 68,507 23,349 91,856
-------- -------- --------
INTEREST EXPENSE
Interest on deposits..................................................... 25,565 10,454 36,019
Interest on short-term borrowings........................................ 6,353 478 6,831
-------- -------- --------
Total interest expense............................................... 31,918 10,932 42,850
-------- -------- --------
Net interest income.................................................. 36,589 12,417 49,006
PROVISION FOR LOAN LOSSES 1,118 150 1,268
-------- -------- --------
Net interest income after provision for loan losses.................. 35,471 12,267 47,738
NONINTEREST INCOME....................................................... 9,771 2,621 12,392
NONINTEREST EXPENSE...................................................... 28,444 8,016 36,460
-------- -------- --------
Income before income tax expense..................................... 16,798 6,872 23,670
INCOME TAX EXPENSE....................................................... 5,356 2,127 7,483
-------- -------- --------
Net Income............................................................ $ 11,442 $ 4,745 $ 16,187
======== ======== ========
Basic Earnings Per Share (3).......................................... $ 0.57 $ 0.39 $ 0.55
======== ======== ========
Diluted Earnings Per Share(4)......................................... $ 0.56 $ 0.38 $ 0.54
======== ======== ========
Average Shares Outstanding (3)........................................ 20,077 12,127 29,409
======== ======== ========
Average Diluted Shares Outstanding (4)................................ 20,345 12,522 29,981
======== ======== ========
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FOOTNOTES TO PRO FORMA COMBINING FINANCIAL STATEMENTS:
(1) Reflects the estimated acquisition charge ($15,400) and related tax
benefit ($3,850) to be recorded incident to First Midwest's pending
acquisition of Heritage. Such estimated charge includes severance and
related personnel exit costs, contract termination fees, legal and
accountant fees and other costs necessary to consummate the acquisition.
These costs result directly from the Merger and are expected to be
incurred within 12 months of the consummation date.
(2) Reflects the increase in First Midwest Common Stock, $.01 par value and
related reduction in additional paid-in capital for the issuance of
approximately 9,342 shares in the exchange for 12,141 shares of Heritage
Common Stock outstanding at March 31, 1998.
(3) The pro forma combined basic earnings per share and average shares
outstanding are based upon net income for First Midwest and Heritage
divided by the total pro forma average shares of the combined entity
assuming conversion of the Heritage Common Stock at the 0.7695 exchange
ratio.
(4) The pro forma combined diluted earnings per share and average diluted
shares outstanding are based upon net income of First Midwest and Heritage
divided by the total pro forma average shares of the combined entity,
adjusted for the potential dilutive effect of shares issued under the
entities stock option plans, assuming conversion of the Heritage Common
Stock at the 0.7695 exchange ratio.
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