-- 2008 full year earnings of $49.3 million and diluted EPS of $1.00 as
compared to $80.2 million and $1.62 for 2007
-- Fourth quarter 2008 net loss of $26.9 million and diluted net LPS of
$0.57 versus $5.4 million and $0.11 for fourth quarter 2007
-- 2008 pre-tax earnings, excluding provision expense and securities-
related losses, of $152.3 million, consistent with 2007
-- Net interest margin of 3.71% for fourth quarter 2008 versus 3.53% in
2007 and 3.63% in third quarter 2008
-- Full year 2008 salary and benefit costs down $11.7 million or 10.5%
from 2007
Credit and Market-Related Actions
-- Loan loss reserve at December 31, 2008 of 1.75% of total loans versus
1.25% at December 31, 2007 and 1.34% at September 30, 2008
-- Noncash securities impairment charges for fourth quarter of $34.5
million
-- $10.4 million charge related to reduction in the cash surrender value
of bank-owned life insurance
First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (
Minimum
"Well- Excess Over
Capitalized" Required Minimums
Level 12/31/08 at 12/31/08 12/31/07
----- -------- ----------------- --------
(Amounts in
millions)
Tier 1 Risk Based Capital 6.00% 11.60% 93% $ 370 9.03%
Total Risk Based Capital 10.00% 14.36% 44% $ 288 11.58%
Tier 1 Leverage Capital 5.00% 9.41% 88% $ 359 7.46%
On December 5, 2008 the Company received $193.0 million from the sale of
preferred shares to the U.S. Treasury as part of its Capital Purchase
Program ("CPP"). In connection with the CPP investment, the Company issued
to the U.S. Treasury a total of 193,000 shares of Fixed Rate Cumulative
Perpetual Preferred Stock, Series B, at an initial fixed rate of 5% with a
$1,000 per share liquidation preference, and a warrant to purchase up to
1.3 million shares of the Company's common stock at an exercise price of
$22.18 per share. Both the preferred shares and the warrants are accounted
for as components of the Company's regulatory Tier 1 capital as of December
31, 2008. Preferred share proceeds received were temporarily invested in
government sponsored mortgage-backed securities pending future deployment.
Responsive to the then environment, the Company announced in fourth quarter
2008 a reduction in its quarterly common stock dividend from $0.310 per
share to $0.225 per share. This reduction would equate to approximately $16
million in retained capital over the course of a year.
The Board of Directors will continue to evaluate all aspects of the
Company's capital plan each quarter, recognizing both current and
anticipated conditions.
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 some 100 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, January 28, 2009 at 10:00 a.m. (ET).
Members of the public who would like to listen to the conference call
should dial 1-866-713-8310 (U.S. domestic) or 1-617-597-5308
(international) and enter passcode number 287-96-096. 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 website,
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 website or by dialing 1-888-286-8010
(U.S. domestic) or 1-617-801-6888 (international) passcode number
713-29-279, beginning approximately one hour after the event through 11:59
pm (ET) on February 4, 2009. 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
http://www.firstmidwest.com/aboutinvestor_selected.asp.
First Midwest Bancorp, Inc. Press Release Dated January 28, 2009
Operating Highlights
Unaudited Quarters Ended Years Ended
------------------------------- --------------------
(Amounts in
thousands except Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
per share data) 2008 2008 2007 2008 2007
--------- --------- --------- --------- ---------
Net income $ (26,890) $ 24,191 $ (5,418) $ 49,336 $ 80,159
Diluted earnings per
share $ (0.57) $ 0.50 $ (0.11) $ 1.00 $ 1.62
Return on average
equity (13.89%) 13.09% (2.91%) 6.48% 10.69%
Return on average
assets (1.31%) 1.16% (0.27%) 0.59% 0.99%
Net interest margin 3.71% 3.63% 3.53% 3.61% 3.58%
Efficiency ratio 59.06% 50.30% 53.87% 53.49% 52.50%
Balance Sheet Highlights
Unaudited As Of
-------------------------------------
(Dollar amounts in thousands except Dec. 31, Sept. 30, Dec. 31,
per share data) 2008 2008 2007
----------- ----------- -----------
Total assets $ 8,528,341 $ 8,246,655 $ 8,091,518
Total loans 5,360,063 5,223,582 4,963,672
Total deposits 5,585,754 5,658,284 5,778,861
Total stockholders’ equity 908,279 718,909 723,975
Common stockholders’ equity 715,949 718,909 723,975
Book value per share $ 14.72 $ 14.80 $ 14.94
Period end shares outstanding 48,630 48,590 48,453
Stock Performance Data
Unaudited Quarters Ended
-------------------------------------
(Dollar amounts in thousands except Dec. 31, Sept. 30, Dec. 31,
per share data) 2008 2008 2007
----------- ----------- -----------
Market Closing Price:
Quarter End $ 19.97 $ 24.24 $ 30.60
High $ 27.32 $ 29.84 $ 36.31
Low $ 14.33 $ 14.00 $ 29.89
Quarter end price to book value 1.4x 1.6x 2.0x
Quarter end price to full year 2008
earnings 19.97x N/A N/A
Dividends declared per share $ 0.225 $ 0.310 $ 0.310
Common dividends paid $ 10,955 $ 15,088 $ 15,045
Capital Ratios
Unaudited As Of
-------------------------------------
Dec. 31, Sept. 30, Dec. 31,
2008 2008 2007
----------- ----------- -----------
Regulatory capital ratios:
Total capital to risk-weighted
assets 14.36% 12.04% 11.58%
Tier 1 capital to risk-weighted
assets 11.60% 9.42% 9.03%
Tier 1 leverage to average assets 9.41% 7.59% 7.46%
Tangible common equity ratios:
Tangible common equity to tangible
assets 5.23% 5.44% 5.58%
Tangible common equity, excluding
other comprehensive loss, to
tangible assets 5.45% 6.09% 5.73%
Tangible common equity to
risk-weighted assets 6.53% 6.69% 6.87%
First Midwest Bancorp, Inc. Press Release Dated January 28, 2009
Condensed Consolidated Statements of Condition
Unaudited
December 31,
------------------------
(Amounts in thousands) 2008 2007
----------- -----------
Assets
Cash and due from banks $ 106,082 $ 193,792
Funds sold and other short-term investments 8,226 1,439
Trading account securities 12,358 18,352
Securities available-for-sale 2,216,186 2,080,046
Securities held to maturity, at amortized cost 84,306 97,671
Federal Home Loan Bank and Federal Reserve Bank
stock, at cost 54,767 54,767
Loans 5,360,063 4,963,672
Reserve for loan losses (93,869) (61,800)
----------- -----------
Net loans 5,266,194 4,901,872
----------- -----------
Foreclosed real estate 24,368 6,053
Premises, furniture, and equipment 120,035 125,828
Investment in bank owned life insurance 198,533 203,535
Goodwill and other intangible assets 284,548 288,235
Accrued interest receivable and other assets 152,738 119,928
----------- -----------
Total assets $ 8,528,341 $ 8,091,518
=========== ===========
Liabilities and Stockholders' Equity
Deposits
Transactional deposits $ 3,457,954 $ 3,582,031
Time deposits 1,950,362 2,100,390
Brokered deposits 177,438 96,440
----------- -----------
Total deposits 5,585,754 5,778,861
Borrowed funds 1,698,334 1,264,228
Subordinated debt 232,409 230,082
Accrued interest payable and other liabilities 103,565 94,372
----------- -----------
Total liabilities 7,620,062 7,367,543
----------- -----------
Preferred stock 189,617 -
Common stock 613 613
Additional paid-in capital 210,698 207,851
Retained earnings 837,390 844,972
Accumulated other comprehensive (loss) (18,042) (11,727)
Treasury stock, at cost (311,997) (317,734)
----------- -----------
Total stockholders' equity 908,279 723,975
----------- -----------
Total liabilities and stockholders'equity $ 8,528,341 $ 8,091,518
=========== ===========
First Midwest Bancorp, Inc. Press Release Dated January 28, 2009
Condensed Consolidated
Statements of Income Quarters Ended Years Ended
Unaudited December 31, December 31,
-------------------- --------------------
(Amounts in thousands except
per share data) 2008 2007 2008 2007
--------- --------- --------- ---------
Interest Income
Loans $ 71,849 $ 87,998 $ 302,931 $ 365,370
Securities 25,583 26,009 104,448 108,470
Other 501 604 1,828 3,121
--------- --------- --------- ---------
Total interest income 97,933 114,611 409,207 476,961
--------- --------- --------- ---------
Interest Expense
Deposits 22,802 40,598 110,622 166,267
Borrowed funds 6,416 12,148 37,192 55,540
Subordinated debt 3,702 3,767 14,796 15,025
--------- --------- --------- ---------
Total interest expense 32,920 56,513 162,610 236,832
--------- --------- --------- ---------
Net interest income 65,013 58,098 246,597 240,129
--------- --------- --------- ---------
Provision for loan losses 42,385 2,042 70,254 7,233
--------- --------- --------- ---------
Net interest income after
provision for loan losses 22,628 56,056 176,343 232,896
Noninterest Income
Service charges on deposit
accounts 11,206 11,986 44,987 45,015
Trust and investment management
fees 3,420 4,061 15,130 15,701
Other service charges,
commissions, and fees 4,554 5,324 18,846 22,183
Card-based fees 3,868 3,979 16,143 15,925
--------- --------- --------- ---------
Subtotal, fee-based revenues 23,048 25,350 95,106 98,824
--------- --------- --------- ---------
Bank owned life insurance
income (8,858) 2,117 (2,369) 8,033
Securities (losses) gains, net (34,215) (50,041) (35,611) (50,801)
Other (2,104) 109 (3,119) 4,197
--------- --------- --------- ---------
Total noninterest income (22,129) (22,465) 54,007 60,253
--------- --------- --------- ---------
Noninterest Expense
Salaries and employee benefits 20,356 27,686 99,910 111,598
Net occupancy expense 5,967 5,480 23,378 22,054
Equipment expense 2,454 2,744 9,956 10,540
Technology and related costs 1,848 1,760 7,429 7,084
Other 15,956 12,594 53,632 47,861
--------- --------- --------- ---------
Total noninterest expense 46,581 50,264 194,305 199,137
--------- --------- --------- ---------
Income before taxes (46,082) (16,673) 36,045 94,012
Income tax (benefit) expense (19,192) (11,255) (13,291) 13,853
--------- --------- --------- ---------
Net (Loss) Income (26,890) (5,418) 49,336 80,159
Preferred dividends (712) - (712) -
--------- --------- --------- ---------
Net (Loss) Income Applicable
to Common Shares $ (27,602) $ (5,418) $ 48,624 $ 80,159
========= ========= ========= =========
Diluted Earnings Per Share $ (0.57) $ (0.11) $ 1.00 $ 1.62
Dividends Declared Per Share $ 0.225 $ 0.310 $ 1.155 $ 1.195
Weighted Average Diluted
Shares Outstanding 48,540 48,754 48,565 49,622
First Midwest Bancorp, Inc. Press Release Dated January 28, 2009
Percent Change
Unaudited As Of From
---------------------------------------- ----------------
(Dollar amounts % of
in thousands) 12/31/08 total 9/30/08 6/30/08 9/30/08 6/30/08
---------- ------ ---------- ---------- ------- -------
Loan Portfolio
Composition
Commercial
and
industrial $1,490,101 27.8% $1,485,541 $1,448,723 0.3% 2.9%
Agricultural 142,635 2.7% 159,217 207,438 (10.4%) (31.2%)
Commercial
real estate:
Office,
retail,
and
industrial 1,127,689 21.0% 1,092,268 1,048,547 3.2% 7.5%
Residential
land and
development 509,059 9.5% 509,974 510,818 (0.2%) (0.3%)
Multifamily 237,646 4.4% 204,029 195,815 16.5% 21.4%
Other
commercial
real estate 1,106,952 20.7% 1,021,662 1,014,759 8.3% 9.1%
---------- ------ ---------- ---------- ------- -------
Total
commer-
cial
real
estate 2,981,346 55.6% 2,827,933 2,769,939 5.4% 7.6%
---------- ------ ---------- ---------- ------- -------
Consumer:
Home equity 477,105 8.9% 468,703 460,581 1.8% 3.6%
Real estate
1-4 family 198,197 3.7% 205,851 213,295 (3.7%) (7.1%)
Other
consumer 70,679 1.3% 76,337 82,379 (7.4%) (14.2%)
---------- ------ ---------- ---------- ------- -------
Total
consumer 745,981 13.9% 750,891 756,255 (0.7%) (1.4%)
---------- ------ ---------- ---------- ------- -------
Total loans $5,360,063 100.0% $5,223,582 $5,182,355 2.6% 3.4%
========== ====== ========== ========== ======= =======
Commercial Real
Estate Detail
Office, Retail,
and Industrial
Office $ 373,242 33.1% $ 352,200 $ 337,424 6.0% 10.6%
Retail 313,286 27.8% 300,570 281,942 4.2% 11.1%
Industrial 441,161 39.1% 439,498 429,181 0.4% 2.8%
---------- ------ ---------- ---------- ------- -------
Total
office,
retail,
and
industrial $1,127,689 100.0% $1,092,268 $1,048,547 3.2% 7.5%
========== ====== ========== ========== ======= =======
Residential Land
and Development
Structures $ 185,929 36.5% $ 190,741 $ 217,161 (2.5%) (14.4%)
Land 323,130 63.5% 319,233 293,657 1.2% 10.0%
---------- ------ ---------- ---------- ------- -------
Total
residential
land and
development $ 509,059 100.0% $ 509,974 $ 510,818 (0.2%) (0.3%)
========== ====== ========== ========== ======= =======
Other Commercial
Real Estate
Commercial
land $ 280,120 25.3% $ 263,030 $ 285,411 6.5% (1.9%)
1-5 family
investors 193,227 17.5% 178,540 168,259 8.2% 14.8%
Service
stations
and truck
stops 146,891 13.3% 134,677 120,670 9.1% 21.7%
Warehouses
and storage 85,276 7.7% 80,889 79,580 5.4% 7.2%
Hotels 79,186 7.2% 67,217 67,574 17.8% 17.2%
Restaurants 48,106 4.3% 44,872 47,313 7.2% 1.7%
Medical 42,269 3.8% 42,253 43,347 0.0% (2.5%)
Automobile
dealers 38,505 3.5% 38,866 37,562 (0.9%) 2.5%
Mobile home
parks 36,790 3.3% 29,670 25,217 24.0% 45.9%
Recreational 14,515 1.3% 14,760 15,106 (1.7%) (3.9%)
Religious 11,224 1.0% 10,317 11,362 8.8% (1.2%)
Other 130,843 11.8% 116,571 113,358 12.2% 15.4%
---------- ------ ---------- ---------- ------- -------
Total
other
commercial
real
estate $1,106,952 100.0% $1,021,622 $1,014,759 8.3% 9.1%
========== ====== ========== ========== ======= =======
First Midwest Bancorp, Inc. Press Release Dated January 28, 2009
-----------------------------------------------------
Unaudited As Of
-----------------------------------------------------
(Dollar amounts in % of Loan % of
thousands) 12/31/08 Category Total 9/30/08 6/30/08
--------- --------- --------- --------- ---------
Asset Quality
Nonaccrual loans:
Commercial and
industrial $ 15,586 1.05% 12.2% $ 13,961 $ 5,222
Office, retail,
and industrial 2,533 0.22% 2.0% 1,195 1,125
Residential land
and development 97,060 19.07% 76.0% 28,335 11,664
Multifamily 1,387 0.58% 1.1% 2,827 3,016
Other commercial
real estate 6,926 0.63% 5.4% 1,845 885
Consumer 4,276 0.57% 3.3% 5,154 3,324
--------- ========= --------- --------- ---------
Total
nonaccrual
loans $ 127,768 2.38% 100.0% $ 53,317 $ 25,236
========= ========= ========= ========= =========
Restructured loans 3,260 2,258 259
Foreclosed real
estate 24,368 23,697 7,042
90 days past due
loans (still
accruing interest):
Commercial and
industrial $ 6,818 0.46% 18.4% $ 4,006 $ 4,530
Agricultural 1,751 1.23% 4.7% 1,751 -
Office, retail,
and industrial 3,214 0.29% 8.7% 4,838 2,855
Residential land
and development 8,489 1.67% 23.0% 17,615 16,696
Multifamily 1,881 0.79% 5.1% 1,216 2,071
Other commercial
real estate 6,586 0.59% 17.8% 2,469 3,410
Consumer 8,260 1.11% 22.3% 5,421 7,948
--------- ========= --------- --------- ---------
Total 90 days
past due
loans $ 36,999 0.69% 100.0% $ 37,316 $ 37,510
========= ========= ========= ========= =========
30-89 days past due
loans $ 116,206 2.17% - $ 104,769 $ 185,186
========= ========= ========= ========= =========
Asset Quality Ratios
Nonaccrual loans to
loans 2.38% - - 1.02% 0.49%
Nonaccrual loans
plus loans past due
90 days to loans 3.07% - - 1.74% 1.21%
Reserve for loan
losses $ 93,869 - - $ 69,811 $ 66,104
Reserve for loan
losses to loans 1.75% - - 1.34% 1.28%
Reserve for loan
losses to
nonaccrual loans 73% - - 131% 262%
Reserve for loan
losses to
nonaccrual loans
plus loans past
due 90 days 57% - - 77% 105%
========= ========= ========= ========= =========
Quarters Ended
-----------------------------------------------------
(Dollar amounts in % of Loan % of
thousands) 12/31/08 Category Total 9/30/08 6/30/08
--------- --------- --------- --------- ---------
Charge-off Data
Net loans
charged-off:
Commercial and
industrial $ 5,601 0.38% 30.6% $ 1,899 $ 2,338
Agricultural - (4) 42
Office, retail,
and industrial 699 0.06% 3.8% 2 31
Residential land
and development 9,227 1.81% 50.3% 5,856 138
Multifamily 164 0.07% 0.9% (40) 830
Other commercial
real estate 397 0.04% 2.2% 62 116
Consumer 2,239 0.30% 12.2% 1,547 961
--------- --------- --------- --------- ---------
Total net
loans
charged-off $ 18,327 1.38% 100.0% $ 9,322 $ 4,456
========= ========= ========= ========= =========
Net loan charge-offs
to average loans
(annualized):
Quarter-to-date 1.38% - - 0.71% 0.35%
Year-to-date 0.74% - - 0.52% 0.42%
First Midwest Bancorp, Inc. Press Release Dated January 28, 2009
Securities Available-For-Sale
Collateralized Other
U.S. U.S. Mortgage Mortgage
Unaudited Treasury Agency Obligations Backed
----------- ------------ ----------- -----------
As of December 31, 2008
Amortized cost $ 1,039 $ - $ 694,285 $ 504,918
Gross unrealized gains
(losses):
Gross unrealized
Gains 2 - 7,668 13,421
Gross unrealized
losses - - (3,114) (74)
----------- ------------ ----------- -----------
Net unrealized
gains (losses) 2 - 4,554 13,347
----------- ------------ ----------- -----------
Fair value $ 1,041 $ - $ 698,839 $ 518,265
=========== ============ =========== ===========
As of September 30, 2008
Amortized cost $ 902 $ 1,999 $ 515,376 $ 517,139
Gross unrealized gains
(losses):
Gross unrealized
gains 3 3 1,798 1,970
Gross unrealized
losses - - (6,827) (3,068)
----------- ------------ ----------- -----------
Net unrealized
gains (losses) 3 3 (5,029) (1,098)
----------- ------------ ----------- -----------
Fair value $ 905 $ 2,002 $ 510,347 $ 516,041
=========== ============ =========== ===========
As of December 31, 2007
Amortized cost $ 1,027 $ 41,895 $ 534,688 $ 417,532
Gross unrealized gains
(losses):
Gross unrealized
gains 2 597 2,333 5,116
Gross unrealized
losses (1) - (2,221) (2,328)
----------- ------------ ----------- -----------
Net unrealized
gains (losses) 1 597 112 2,788
----------- ------------ ----------- -----------
Fair value $ 1,028 $ 42,492 $ 534,800 $ 420,320
=========== ============ =========== ===========
State Collateralized
and Debt
Unaudited Municipal Obligations Other Total
----------- ----------- ----------- -----------
As of December 31, 2008
Amortized cost $ 907,036 $ 60,406 $ 51,820 $ 2,219,504
Gross unrealized gains
(losses):
Gross unrealized
gains 12,606 - 213 33,910
Gross unrealized
losses (12,895) (18,320) (2,825) (37,228)
----------- ----------- ----------- -----------
Net unrealized
gains (losses) (289) (18,320) (2,612) (3,318)
----------- ----------- ----------- -----------
Fair value $ 906,747 $ 42,086 $ 49,208 $ 2,216,186
=========== =========== =========== ===========
As of September 30, 2008
Amortized cost $ 926,519 $ 85,286 $ 50,973 $ 2,098,194
Gross unrealized gains
(losses):
Gross unrealized
gains 1,987 80 26 5,867
Gross unrealized
losses (45,854) (14,000) (9,431) (79,180)
----------- ----------- ----------- -----------
Net unrealized
gains (losses) (43,867) (13,920) (9,405) (73,313)
----------- ----------- ----------- -----------
Fair value $ 882,652 $ 71,366 $ 41,568 $ 2,024,881
=========== =========== =========== ===========
As of December 31, 2007
Amortized cost $ 961,638 $ 95,584 $ 35,295 $ 2,087,659
Gross unrealized gains
(losses):
Gross unrealized
gains 7,728 - 34 15,810
Gross unrealized
losses (2,531) (13,954) (2,388) (23,423)
----------- ----------- ----------- -----------
Net unrealized
gains (losses) 5,197 (13,954) (2,354) (7,613)
----------- ----------- ----------- -----------
Fair value $ 966,835 $ 81,630 $ 32,941 $ 2,080,046
=========== =========== =========== ===========
Contact Information: CONTACT: Paul F. Clemens Chief Financial Officer (630) 875-7347 www.firstmidwest.com