EXHIBIT 99
First Midwest Bancorp, Inc. and Heritage Financial Services, Inc.
Pro forma Condensed Statements of Condition (unaudited)
and
Pro forma Condensed Statements of Income (unaudited)
as of, and for the quarters and six months ended,
June 30, 1998 and 1997
(Amounts in thousands except per share data)
**********
The accompanying financial information presents the statements of condition and
statements of income of First Midwest and Heritage on a pro forma basis as if
the transaction had been consummated on January 1, 1997, with all prior periods
being restated. The pro forma financial statements do not reflect the effect of
the acquisition charge incident to the acquisition of Heritage or of any
financial statement adjustments related thereto.
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FIRST MIDWEST BANCORP, INC. AND HERITAGE FINANCIAL SERVICES, INC.
PRO FORMA CONDENSED STATEMENTS OF CONDITION (UNAUDITED)
As of June 30,
-------------------------
1998 1997
----------- ----------
ASSETS
Cash and due from banks....................................................... $ 202,871 $ 225,619
Funds sold and other short-term investments................................... 49,749 16,339
Securities available for sale................................................. 1,538,476 1,345,291
Securities held to maturity................................................... 133,134 134,125
Trading account securities.................................................... 471 321
Loans......................................................................... 2,952,831 2,990,110
Reserve for loan losses....................................................... (45,054) (44,957)
---------- ----------
Net loans.................................................................. 2,907,777 2,945,153
---------- ----------
Premises, furniture and equipment............................................. 76,967 79,783
Accrued interest receivable and other assets.................................. 180,245 116,202
---------- ----------
Total Assets............................................................... $5,089,690 $4,862,833
========== ==========
LIABILITIES
Deposits...................................................................... $3,995,931 $3,745,408
Short-term borrowings......................................................... 567,689 632,802
Accrued interest payable and other liabilities................................ 49,010 53,401
---------- ----------
Total liabilities.......................................................... $4,612,630 $4,431,611
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STOCKHOLDERS' EQUITY
Common Stock.................................................................. 298 292
Additional paid-in capital.................................................... 89,823 86,661
Retained earnings............................................................. 393,181 359,400
Accumulated other comprehensive income........................................ 6,191 6,319
Less: Treasury stock.......................................................... (12,433) (21,450)
---------- ----------
Total stockholders' equity................................................. 477,060 431,222
---------- ----------
Total Liabilities and Stockholders' Equity................................. $5,089,690 $4,862,833
========== ==========
CAPITAL RATIOS
- --------------
Total Equity to Assets........................................................ 9.37% 8.87%
Tangible Equity to Assets..................................................... 8.88% 8.29%
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FIRST MIDWEST BANCORP, INC. AND HERITAGE FINANCIAL SERVICES, INC.
PRO FORMA CONDENSED STATEMENTS OF INCOME (UNAUDITED)
QUARTERS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
1998 1997 1998 1997
----------- ----------- ---------- -----------
INTEREST INCOME
Interest and fees on loans............................................ $ 65,997 $ 65,900 $ 132,868 $ 130,732
Interest on securities................................................ 22,591 22,366 46,418 44,966
Interest on funds sold and other short-term investments............... 2,055 497 3,213 900
----------- ----------- ---------- -----------
Total interest income............................................ 90,643 88,763 182,499 176,598
----------- ----------- ---------- -----------
INTEREST EXPENSE
Interest on deposits.................................................. 36,480 33,867 72,499 67,205
Interest on short-term borrowings..................................... 7,961 6,891 14,792 14,037
----------- ----------- ---------- -----------
Total interest expense............................................ 44,441 40,758 87,291 81,242
----------- ----------- ---------- -----------
NET INTEREST INCOME............................................... 46,202 48,005 95,208 95,356
PROVISION FOR LOAN LOSSES............................................. 867 1,372 2,135 3,630
----------- ----------- ---------- -----------
Net interest income after provision for loan losses............... 45,335 46,633 93,073 91,726
NONINTEREST INCOME.................................................... 13,533 10,719 25,911 22,315
NONINTEREST EXPENSE................................................... 35,364 35,444 71,810 69,616
----------- ----------- ---------- -----------
Income before income tax expense.................................. 23,504 21,908 47,174 44,425
INCOME TAX EXPENSE.................................................... 6,965 7,203 14,448 14,980
----------- ----------- ---------- -----------
Net Income........................................................ $ 16,539 $ 14,705 $ 32,726 $ 29,445
=========== =========== ========== ===========
Basic Earnings Per Share.......................................... $ 0.56 $ 0.50 $ 1.11 $ 1.01
Diluted Earnings Per Share........................................ $ 0.55 $ 0.49 $ 1.09 $ 0.99
Average Shares Outstanding........................................ 29,709 29,240 29,560 29,192
Average Diluted Shares Outstanding................................ 30,128 29,749 30,096 29,801
_______________________________
PERFORMANCE RATIOS
- ------------------
Return on Assets...................................................... 1.31% 1.26% 1.32% 1.27%
Return on Equity...................................................... 14.17% 14.06% 14.21% 14.20%
Net Interest Margin................................................... 4.17% 4.59% 4.33% 4.57%
Efficiency Ratio...................................................... 56.25% 57.45% 56.69% 56.81%
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