-- Diluted earnings per share of $0.50; return on average assets of
1.16%; return on average equity of 13.09%.
-- Annualized total loan growth of 3% from June 30, 2008, 10% annualized
in targeted categories.
-- Loan loss reserve increased to 1.34% of loans, covering nonperforming
loans by 126%; provisioning exceeding net charge-offs by 40%.
-- Tier 1 capital level increased to 9.42%, up 13 basis points.
First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (
Minimum
"Well-
Capitalized" Excess Over Required
Level 9/30/08 Minimums 9/30/08 12/31/07
---------- ---------- ---------------------- ----------
(Amounts in
millions)
Tier 1 Risk
Based Capital 6.00% 9.42% 57% $ 221 9.15%
Total Risk
Based Capital 10.00% 12.04% 20% $ 132 11.73%
Tier 1 Leverage
Capital 5.00% 7.59% 52% $ 208 7.46%
The Company is focused on the prudent management of capital to permit
continuing investment in our business and the support of future
opportunities while navigating the difficult current environment. During
November, the Company will undertake a comprehensive review of existent
capital plans (dividends, share repurchases, required reserves, and
appropriate capital levels) in the context of the current and projected
environment. As a part of this review, the Company will assess
opportunities presented by the recently announced governmental equity
investment and related programs.
About the Company
First Midwest is the premier relationship-based banking franchise in the
growing Chicagoland banking market. As one of the Chicago metropolitan
area's largest independent bank holding companies, First Midwest provides
the full range of both business and retail banking and trust and investment
management services through 98 offices located in 62 communities, primarily
in metropolitan Chicago. First Midwest was recently recognized by the
Alfred P. Sloan awards for Business Excellence in Workforce Flexibility in
the greater Chicago Area.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. These statements are not historical facts but instead
represent only the Company's beliefs regarding future events, many of
which, by their nature, are inherently uncertain and outside of the
Company's control. It is possible that actual results and the Company's
financial condition may differ, possibly materially, from the anticipated
results and financial condition indicated in these forward-looking
statements. For a discussion of some of the risks and important factors
that could affect the Company's future results, see "Risk Factors" in the
Company's Annual Report on Form 10-K for the fiscal year ended December 31,
2007 and other reports filed with the Securities and Exchange Commission.
Forward-looking statements represent management's best judgment as of the
date hereof based on currently available information. Except as required
by law, the Company undertakes no duty to update the contents of this press
release after the date hereof.
Conference Call
A conference call to discuss the Company's results, outlook and related
matters will be held on Wednesday, October 22nd, at 10:00 a.m. (ET).
Members of the public who would like to listen to the conference call
should dial 1-800-659-2037 (U.S. domestic) or 1-617-614-2713
(international) and enter passcode number 225-78-148. The number should be
dialed at least 10 minutes prior to the start of the conference call. The
conference call will also be accessible as an audio webcast through the
Investor Relations section of the Company's web site,
www.firstmidwest.com/aboutinvestor_overview.asp. There is no charge to
access the call. For those unable to listen to the live broadcast, a
replay will be available on the Company's web site or by dialing
1-888-286-8010 (U.S. domestic) or 1-617-801-6888 (international) passcode
number
950-59-150, beginning approximately one hour after the event through 11:59
pm (ET) on October 29, 2008. Please direct any questions regarding
obtaining access to the conference call to First Midwest Bancorp, Inc.
Investor Relations, via e-mail, at investor.relations@firstmidwest.com.
Accompanying Financial Statements and Tables
Accompanying this press release is the following unaudited financial
information:
-- Operating Highlights, Balance Sheet Highlights, Stock Performance
Data, and Capital Ratios (1 page)
-- Condensed Consolidated Statements of Condition (1 page)
-- Condensed Consolidated Statements of Income (1 page)
-- Loan Portfolio Composition (1 page)
-- Asset Quality (1 page)
Press Release and Additional Information Available on Website
This press release, the accompanying financial statements and tables, and
certain additional unaudited Selected Financial Information (totaling 3
pages) are available through the "Investor Relations" section of First
Midwest's website at www.firstmidwest.com.
First Midwest Bancorp, Inc. Press Release Dated October 22, 2008
Operating Highlights
Unaudited
(Dollar amounts in Quarters Ended
thousands except -------------------------------------------------------
per share data) Sept. 30, 2008 June 30, 2008 Sept. 30, 2007
----------------- ----------------- -----------------
Net income $ 24,191 $ 26,997 $ 27,237
Diluted earnings
per share $ 0.50 $ 0.56 $ 0.55
Return on average
equity 13.09% 14.57% 14.57%
Return on average
assets 1.16% 1.33% 1.35%
Net interest
margin 3.63% 3.58% 3.63%
Efficiency ratio 50.30% 51.67% 51.87%
Balance Sheet Highlights
Unaudited
(Dollar amounts in As Of
thousands except -------------------------------------------------------
per share data) Sept. 30, 2008 June 30, 2008 Sept. 30, 2007
----------------- ----------------- -----------------
Total assets $ 8,246,655 $ 8,311,025 $ 7,884,345
Total loans 5,223,582 5,182,355 4,931,472
Total deposits 5,658,284 5,785,163 5,834,175
Stockholders' equity 718,909 724,034 727,928
Book value per
share $ 14.81 $ 14.90 $ 14.94
Period end shares
outstanding 48,590 48,584 48,735
Stock Performance Data
Unaudited
(Dollar amounts in Quarters Ended
thousands except -------------------------------------------------------
per share data) Sept. 30, 2008 June 30, 2008 Sept. 30, 2007
----------------- ----------------- -----------------
Market Price:
Quarter End $ 24.24 $ 18.65 $ 34.16
High $ 40.09 $ 29.36 $ 36.62
Low $ 13.56 $ 18.65 $ 31.87
Quarter end price
to book value 1.6 x 1.3 x 2.3 x
Quarter end price
to consensus
estimated 2008
earnings 11.9 x N/A N/A
Dividends declared
per share $ 0.310 $ 0.310 $ 0.295
Common dividends
paid $ 15,088 $ 15,084 $ 14,400
Capital Ratios
Unaudited As Of
-------------------------------------------------------
Sept. 30, 2008 June 30, 2008 Sept. 30, 2007
----------------- ----------------- -----------------
Regulatory capital ratios:
Total capital to
risk-weighted assets 12.04% 11.87% 12.17%
Tier 1 capital to
risk-weighted assets 9.42% 9.29% 9.59%
Tier 1 leverage
to average assets 7.59% 7.56% 7.75%
Tangible equity ratios:
Tangible equity
to tangible assets 5.45% 5.45% 5.77%
Tangible equity,
excluding other
comprehensive loss,
to tangible assets 6.09% 5.90% 6.25%
Tangible equity to
risk-weighted assets 6.70% 6.79% 7.01%
First Midwest Bancorp, Inc. Press Release Dated October 22, 2008
Condensed Consolidated Statements of Condition
Unaudited September 30,
------------------------
(Amounts in thousands) 2008 2007
----------- -----------
Assets
Cash and due from banks $ 126,073 $ 182,495
Funds sold and other short-term investments 564 4,842
Trading account securities 15,252 17,431
Securities available-for-sale 2,024,881 1,869,590
Securities held to maturity, at amortized cost 85,982 92,913
Federal Home Loan Bank and Federal Reserve Bank
stock, at cost 54,767 54,767
Loans 5,223,582 4,931,472
Reserve for loan losses (69,811) (61,412)
----------- -----------
Net loans 5,153,771 4,870,060
----------- -----------
Premises, furniture, and equipment 120,592 126,322
Investment in corporate owned life insurance 207,390 201,418
Goodwill and other intangible assets 285,643 289,341
Accrued interest receivable and other assets 171,740 175,166
----------- -----------
Total assets $ 8,246,655 $ 7,884,345
----------- -----------
Liabilities and Stockholders' Equity
Deposits $ 5,658,284 $ 5,834,175
Borrowed funds 1,554,703 998,502
Subordinated debt 232,442 227,948
Accrued interest payable and other liabilities 82,317 95,792
----------- -----------
Total liabilities 7,527,746 7,156,417
----------- -----------
Common stock 613 613
Additional paid-in capital 207,503 206,951
Retained earnings 875,947 865,435
Accumulated other comprehensive (loss) (51,807) (36,385)
Treasury stock, at cost (313,347) (308,686)
----------- -----------
Total stockholders' equity 718,909 727,928
----------- -----------
Total liabilities and stockholders' equity $ 8,246,655 $ 7,884,345
----------- -----------
First Midwest Bancorp, Inc. Press Release Dated October 22, 2008
Condensed Consolidated Statements of Income
Unaudited Quarters Ended
-------------------------------
(Amounts in thousands except per share Sept. 30, June 30, Sept. 30,
data) 2008 2008 2007
--------- --------- ---------
Interest Income
Loans $ 74,929 $ 74,819 $ 93,020
Securities 26,520 26,391 26,885
Other 37 103 185
--------- --------- ---------
Total interest income 101,486 101,313 120,090
--------- --------- ---------
Interest Expense
Deposits 25,574 28,036 41,949
Borrowed funds 9,451 9,249 13,680
Subordinated debt 3,703 3,702 3,764
--------- --------- ---------
Total interest expense 38,728 40,987 59,393
--------- --------- ---------
Net interest income 62,758 60,326 60,697
Provision for loan losses 13,029 5,780 470
--------- --------- ---------
Net interest income after provision for
loan losses 49,729 54,546 60,227
--------- --------- ---------
Noninterest Income
Service charges on deposit accounts 11,974 11,385 11,959
Trust and investment management fees 3,818 3,945 3,934
Other service charges, commissions, and
fees 4,834 4,456 5,601
Card-based fees 4,141 4,236 4,054
--------- --------- ---------
Subtotal, fee-based revenues 24,767 24,022 25,548
--------- --------- ---------
Corporate owned life insurance income 1,882 2,145 2,023
Security (losses) gains, net (1,746) (4,618) (5,165)
Other (1,209) 874 989
--------- --------- ---------
Total noninterest income 23,694 22,423 23,395
--------- --------- ---------
Noninterest Expense
Salaries and employee benefits 26,996 26,368 27,354
Net occupancy expense 5,732 5,528 5,686
Equipment expense 2,484 2,451 2,580
Technology and related costs 1,990 1,820 1,767
Other 11,234 13,778 12,594
--------- --------- ---------
Total noninterest expense 48,436 49,945 49,981
--------- --------- ---------
Income before taxes 24,987 27,024 33,641
Income tax expense 796 27 6,404
--------- --------- ---------
Net Income $ 24,191 $ 26,997 $ 27,237
--------- --------- ---------
Diluted Earnings Per Share $ 0.50 $ 0.56 $ 0.55
--------- --------- ---------
Dividends Declared Per Share $ 0.310 $ 0.310 $ 0.295
--------- --------- ---------
Weighted Average Diluted Shares
Outstanding 48,556 48,576 49,447
--------- --------- ---------
First Midwest Bancorp, Inc. Press Release Dated October 22, 2008
9/30/08 % Change
Unaudited As Of From
(Dollar ------------------------------------------ -----------------
amounts in % of
thousands) 9/30/08 total 6/30/08 3/31/08 6/30/08 3/31/08
----------- ----- ----------- ----------- -------- -------
Loan Portfolio
Composition
Commercial,
industrial,
and agri-
cultural $ 1,644,758 31.5% $ 1,656,161 $ 1,597,279 (2.8%) 5.9%
Commercial
real
estate:
Office,
retail,
and
industrial 1,092,268 20.9% 1,048,547 1,020,403 16.7% 14.1%
Residential
land and
development 509,974 9.8% 510,818 515,052 (0.7%) (2.0%)
Multifamily 204,029 3.9% 195,815 188,474 16.8% 16.5%
Other
commercial
real
estate 1,021,662 19.5% 1,014,759 952,622 2.7% 14.5%
----------- ----- ----------- ----------- -------- ------
Total
commercial
real
estate
(1) 2,827,933 54.1% 2,769,939 2,676,551 8.4% 11.3%
----------- ----- ----------- ----------- -------- ------
Consumer:
Home
equity 468,703 9.0% 460,581 459,068 7.1% 4.2%
Real estate
1-4 family 205,851 3.9% 213,295 224,895 (14.0%) (16.9%)
Other
consumer 76,337 1.5% 82,379 87,972 (29.3%) (26.5%)
----------- ----- ----------- ----------- -------- ------
Total
consumer 750,891 14.4% 756,255 771,935 (2.8%) (5.5%)
----------- ----- ----------- ----------- -------- ------
Total
loans(2) $ 5,223,582 100.0% $ 5,182,355 $ 5,045,765 3.2% 7.0%
----------- ----- ----------- ----------- -------- ------
Commercial
Real Estate
Detail Office,
Retail, and
Industrial
Loans by
product type:
Office $ 352,200 32.3% $ 337,424 $ 326,107 17.5% 16.0%
Retail 300,570 27.5% 281,942 279,146 26.4% 15.0%
Industrial 439,498 40.2% 429,181 414,684 9.6% 12.0%
----------- ----- ----------- ----------- -------- ------
Total
office,
retail,
and indus-
trial $ 1,092,268 100.0% $ 1,048,547 $ 1,020,403 16.7% 14.1%
----------- ----- ----------- ----------- -------- ------
Residential
Land and
Development
Loans by
product type:
Structures $ 190,741 37.4% $ 217,161 $ 209,146 (48.7%) (17.6%)
Land 319,233 62.6% 293,657 305,906 34.8% 8.7%
----------- ----- ----------- ----------- -------- ------
Total
residential
land and
devel-
opment $ 509,974 100.0% $ 510,818 $ 515,052 (0.7%) (2.0%)
----------- ----- ----------- ----------- -------- ------
Other
Commercial
Real Estate
Loans by
product type:
Commercial
land $ 263,030 25.7% $ 285,411 $ 260,502 (31.4%) 1.9%
1-5 family
investors 178,540 17.5% 168,259 169,768 24.4% 10.3%
Service
stations
and truck
stops 134,677 13.2% 120,670 117,592 46.4% 29.1%
Warehouses
and storage 80,889 7.9% 79,580 71,921 6.6% 24.9%
Hotels 67,217 6.6% 67,574 59,199 (2.1%) 27.1%
Restaurants 44,872 4.4% 47,313 48,147 (20.6%) (13.6%)
Medical 42,253 4.1% 43,347 42,912 (10.1%) (3.1%)
Automobile
dealers 38,866 3.8% 37,562 30,934 13.9% 51.3%
Mobile
home parks 29,670 2.9% 25,217 23,481 70.6% 52.7%
Recreational 14,760 1.5% 15,106 16,348 (9.2%) (19.4%)
Religious 10,317 1.0% 11,362 11,291 (36.8%) (17.3%)
Other 116,571 11.4% 113,358 100,527 11.3% 31.9%
----------- ----- ----------- ----------- -------- ------
Total
other
commercial
real
estate $ 1,021,622 100.0% $ 1,014,759 $ 952,622 2.7% 14.5%
----------- ----- ----------- ----------- -------- ------
(1) 24% of total commercial real estate loans are owner occupied as of
September 30, 2008.
(2) Substantially all loans that are over $1 million are to customers
within our market as of September 30, 2008.
First Midwest Bancorp, Inc. Press Release Dated October 22, 2008
Unaudited As Of
-----------------------------------------------------
(Dollar amounts in % of % of
thousands) 9/30/08 Category Total 6/30/08 3/31/08
--------- -------- -------- --------- ---------
Asset Quality
Nonaccrual loans:
Commercial,
industrial, and
agricultural $ 13,961 0.85% 12.0% $ 5,222 $ 6,770
Office, retail,
and industrial 1,195 0.11% 1.0% 1,125 730
Residential land
and development 28,335 5.56% 24.3% 11,664 4,081
Multifamily 2,827 1.39% 2.4% 3,016 1,361
Other commercial
real estate 1,845 0.18% 1.6% 885 255
Consumer 5,154 0.69% 4.4% 3,324 3,876
--------- -------- --------- ---------
Total
nonaccrual
loans 53,317 45.7% 25,236 17,073
Restructured loans 2,258 2.0% 259 140
--------- -------- --------- ---------
Total
nonperforming
loans 55,575 47.7% 25,495 17,213
Other real estate
owned 23,697 20.3% 7,042 8,607
--------- -------- --------- ---------
Total
nonperforming
assets $ 79,272 68.0% $ 32,537 $ 25,820
--------- -------- --------- ---------
90 days past due
loans (still
accruing interest):
Commercial,
industrial, and
agricultural $ 5,757 0.35% 5.0% $ 4,530 $ 3,926
Office, retail,
and industrial 4,838 0.44% 4.1% 2,855 2,182
Residential land
and development 17,615 3.45% 15.1% 16,696 17,438
Multifamily 1,216 0.60% 1.1% 2,071 2,332
Other commercial
real estate 2,469 0.24% 2.1% 3,410 2,451
Consumer 5,421 0.72% 4.6% 7,948 5,150
--------- -------- --------- ---------
Total 90 days
past due
loans 37,316 32.0% 37,510 33,479
--------- -------- --------- ---------
Total
nonperforming
assets plus
90 days
past due
loans $ 116,588 100.0% $ 70,047 $ 59,299
--------- -------- -------- --------- ---------
30-89 days past due
loans $ 104,769 $ 185,186 $ 116,431
--------- -------- -------- --------- ---------
Asset Quality Ratios
Nonperforming loans
to loans 1.06% 0.49% 0.34%
Nonperforming assets
to loans plus
foreclosed real
estate 1.51% 0.63% 0.51%
Nonperforming assets
plus loans past due
90 days to loans
plus foreclosed real
estate 2.22% 1.35% 1.17%
Reserve for loan
losses $ 69,811 $ 66,104 $ 64,780
Reserve for loan
losses to loans 1.34% 1.28% 1.28%
Reserve for loan
losses to
nonperforming loans 126% 259% 376%
--------- -------- -------- --------- ---------
Quarters Ended
-----------------------------------------------------
(Dollar amounts in % of % of
thousands) 9/30/08 Category Total 6/30/08 3/31/08
--------- -------- -------- --------- ---------
Charge-off Data
Net loans
charged-off:
Commercial,
industrial, and
agricultural $ 1,895 0.12% 20.3% $ 2,380 $ 3,188
Office, retail,
and industrial 2 0.00% 0.00% 31 -
Residential land
and development 5,856 1.15% 62.8% 138 559
Multifamily (40) (0.02%) (0.04%) 830 842
Other commercial
real estate 62 0.01% 0.7% 116 673
Consumer 1,547 0.21% 16.6% 961 818
--------- -------- --------- ---------
Total net
loans
charged-off $ 9,322 100.0% $ 4,456 $ 6,080
--------- -------- --------- ---------
Quarter-to-date net
loan charge-offs to
average loans
(annualized) 0.71% 0.35% 0.49%
Year-to-date net
loan charge-offs to
average loans
(annualized) 0.52% 0.42% 0.49%
--------- -------- -------- --------- ---------
Contact Information: CONTACT: Greg Gorbatenko Investor Relations (630) 875-7533 www.firstmidwest.com