4th Quarter 2001 Highlights:
-- Record EPS of $.43 vs. $.38 Last Year
-- Record ROAA of 1.47% vs. 1.31% Last Year
-- Net Interest Margin of 4.33% vs. 3.61% Last Year
-- Efficiency Ratio of 48.1% vs. 51.8% Last Year
-- Nonperforming Loans Down 21% Linked-Quarter
-- Stock Split 5-for-4; Dividend Increased
ITASCA, Ill., Jan. 17 /PRNewswire-FirstCall/ -- First Midwest Bancorp,
Inc. (Nasdaq: FMBI) today reported net income for the fourth quarter ended
December 31, 2001 increased to a record $21.3 million, or $.43 per diluted
share, as compared to 2000's like quarter of $19.4 million, or $.38 per
diluted share, representing an increase of 13.2% on a diluted share basis.
Performance for the current quarter resulted in record annualized return on
average assets of 1.47% as compared to 1.31% for the like quarter of 2000 and
annualized return on average equity of 18.2% as compared to 18.3% for the 2000
quarter. (All share and per share data in this release have been adjusted to
reflect the 5-for-4 stock split paid on December 14, 2001.)
For the year 2001, net income likewise increased to a record
$82.1 million, or $1.63 per diluted share, as compared to 2000's
$75.5 million, or $1.46 per diluted share, representing an increase of 11.6%
on a diluted share basis. Performance for the year 2001 also resulted in
record return on average assets of 1.43% as compared to 1.30% for 2000 and
return on average equity of 17.9% as compared to 2000's 19.2%.
Cash basis diluted earnings (which excludes amortization of goodwill and
core deposit intangibles resulting from acquisitions) increased to $.45 per
share for fourth quarter 2001 as compared to 2000's $.39 per share,
representing an increase of 15.4%. For the year 2001, cash basis diluted
earnings increased to $1.68 per share as compared to $1.52 per share for the
prior year, representing an increase of 10.5%. On a cash basis, the
annualized return on average assets (which excludes from average assets
goodwill and core deposit intangibles) was 1.52% for fourth quarter 2001 as
compared to 2000's 1.36%, while annualized return on average equity for fourth
quarter 2001 was 18.8% as compared to 2000's 18.9%. For the year 2001, cash
basis return on average assets increased to 1.48% as compared to 1.35% for
2000 and return on average equity of 18.5% compared to 19.9% for the 2000
period.
The lower return on average equity for 2001, and to a lesser extent for
fourth quarter 2001, is attributable to fluctuations in average stockholders'
equity resulting from unrealized security gains occurring in 2001 as compared
to losses that occurred in 2000. For fourth quarter and year 2001 average net
unrealized security gains added approximately $49 and $51 million,
respectively, to average stockholders' equity as compared to the like 2000
periods.
Loan and Deposit Growth
Total loans at December 31, 2001 were 4.3% higher than the prior year-end
level with all loan categories except 1-4 family real estate experiencing
growth. Total average loans for the year 2001 increased 5.5% over 2000, while
on a linked-quarter basis total average loans for the fourth quarter 2001 were
essentially flat. During the fourth quarter 2001, softness was experienced in
commercial, 1-4 family real estate and indirect consumer loans reflective of a
combination of the slowing economy and an intensified focus on sound
underwriting and profitable pricing.
Total average deposits for the year 2001 increased by 1.3% over 2000 and
were essentially unchanged on a linked-quarter basis. As planned, average
higher-cost wholesale funds continued to decline during the fourth quarter
2001, on both a year-to-year and linked-quarter basis, with average wholesale
funds decreasing by approximately $174 million or 14% for the year 2001. Even
as wholesale funding declined significantly, core deposit growth coupled with
liquidity provided by the securities portfolio was more than sufficient to
satisfy the quarter's loan funding needs.
Continued Strong Net Interest Margin
Driven by profitable loan growth, continued Fed interest rate reductions
and a significantly reduced reliance on wholesale funding, net interest margin
for fourth quarter 2001 improved to 4.33%, a 72 basis point improvement over
the 3.61% for 2000's like quarter. The 4.33% earned in the fourth quarter
represented both the fourth consecutive quarterly improvement in this key
ratio and the highest quarterly level achieved since second quarter 1999. For
the year 2001, the net interest margin was 4.10% as compared to 3.76% for
2000.
Noninterest Income and Expense
Total noninterest income for fourth quarter 2001 grew by 4.6% over 2000's
like quarter while the year 2001 grew by 9.0% over 2000. The improvement for
both the fourth quarter and year was realized primarily in the categories of
service charges on deposit accounts and other commissions and fees. Although
market sensitive trust and investment management fees were essentially
unchanged for the full year, the approximate 10% decrease in fourth quarter
2001 was primarily attributable to the significant drop in equity prices as
compared to 2000's like quarter.
Total noninterest expenses for fourth quarter 2001 increased by 4.6% over
2000's like quarter while actually decreasing by approximately 1% on a linked-
quarter basis. For the year 2001 total noninterest expenses were up a very
modest 1% over 2000, attesting to stringent cost control management.
The combination of top line revenue growth and stringent cost control
resulted in efficiency ratios of 48.1% for the fourth quarter 2001 and 49.7%
for the full year, both representing record levels of performance and the
first ever sub-50% achieved in this important ratio for a full year.
Credit Quality
Consistent with both the continued weakness in the overall economy and an
aggressive problem loan identification and charge-off strategy, net loan
charge-offs increased in fourth quarter and full year 2001 to .73% and .49% of
average loans, respectively. Provisions for loan losses more than covered
charge-offs (by some $2.7 million for the year 2001) resulting in an increase
in the ratio of the reserve for loan losses to total loans at year-end 2001 to
1.42% as compared to 1.38% at September 30, 2001 and 1.39% at year-end 2000.
As a consequence of the problem loan identification and charge-off strategy,
nonperforming loan levels declined meaningfully at year-end 2001 to .50% of
loans while the reserve for loan losses at year-end represented 283% of
nonperforming loans, both of these important ratios being the best achieved
since year-end 1997. (Informationally, the Company has no energy sector,
syndicated or foreign loan exposure.)
Capital Management
The Company continued to repurchase its common stock during fourth quarter
2001 with approximately 468,000 shares being repurchased at an average price
of approximately $26.76 per share. During 2001 approximately 2.6 million
shares were repurchased at an average price of $24.80 per share. At December
31, 2001 approximately 2 million shares remained under the current 3.1 million
share authorization of August 15, 2001. All share repurchases during 2001
were effected from general operating funds and at year-end the Company
continued to have no short or long term debt.
As of December 31, 2001 First Midwest's Total Risk Based Capital and Tier
1 Risk Based Capital ratios were 11.08% and 9.96%, respectively, compared with
the minimum "well capitalized" levels for regulatory purposes of 10% and 6%,
respectively.
First Midwest's Tier 1 Leverage Ratio as of such date was 7.43% and
exceeded the regulatory minimum range of 3% - 5% required to be considered a
"well capitalized" institution. As of year-end 2001, First Midwest had
capital of approximately $46.1 million in excess of the most restrictive
regulatory minimum capital level to be considered a "well capitalized"
institution.
Stock Split & Dividend Increase
On November 15, 2001, the Company declared a 5-for-4 stock split and
increased the quarterly cash dividend on a post-split basis to $0.17 per
share. This split represented the fifth in the Company's nineteen year
history while the cash dividend increase represented the tenth in the last
nine years and the seventy-sixth consecutive quarterly distribution since the
Company's formation in 1983.
First Midwest's annual total return (assuming the reinvestment of
dividends) to shareholders since the inception of the Company in 1983 has been
18.4%. Further, the Company's annual total returns for the past five and ten
year periods was 13.1% and 17.4%, respectively, and compares favorably to the
S&P500 Index's total returns of 10.7% and 12.9%, respectively, for the same
periods.
2002
The year 2002 likely will prove to be no less challenging than was 2001
with its significant economic uncertainties continuing and the consequences of
September 11 still evolving. In view of the operating performance and balance
sheet conditions discussed above, the Company, nonetheless, is guardedly
optimistic about its 2002 prospects. As such, it is not currently
uncomfortable with the implied approximate 11% growth in 2002 diluted earnings
per share implicit in the current analysts' consensus 2002 estimate. This
guidance is qualified by existent economic uncertainties and related factors
as well as by currently unknown factors that could arise as 2002 unfolds.
With assets of approximately $5.7 billion, First Midwest is the largest
independent and one of the overall largest banking companies in the highly
attractive suburban Chicago banking market. As the premier independent
suburban Chicago banking company, First Midwest provides commercial banking,
trust, investment management and related financial services to a broad array
of customers through 69 offices located in more than 40 communities primarily
in northern Illinois.
Safe Harbor Statement
Statements made in this Press Release which are not purely historical are
forward-looking statements with respect to the goals, plan objectives,
intentions, expectations, financial condition, results of operations, future
performance and business of First Midwest, including, without limitation, (i)
loan and deposit growth, net interest income and margin, wholesale funding
sources, provision and reserve for loan losses, nonperforming loan levels and
net charge-offs, noninterest income and expenses, and diluted earnings per
share growth rates for 2001, and (ii) statements preceded by, followed by or
that include the words "may," "would," "could," "should," "expects,"
"projects," "anticipates," "believes," "estimates," "plans," "intends,"
"targets" or similar expressions.
Forward-looking statements involve inherent risks and uncertainties, and
important factors (many of which are beyond First Midwest's control) that
could cause actual results to differ materially from those set forth in the
forward-looking statements, including the following, in addition to those
contained in First Midwest's reports on file with the Securities and Exchange
Commission: general economic or industry conditions, nationally and/or in the
communities in which First Midwest conducts business, changes in the interest
rate environment, legislation or regulatory requirements, conditions of the
securities markets, deposit flows, cost of funds, demand for loan products,
demand for financial services, competition, changes in the quality or
composition of First Midwest's loan and investment portfolios, changes in
accounting principals, policies or guidelines, financial or political
instability, acts of war or terrorism, other economic, competitive,
governmental, regulatory and technical factors affecting First Midwest's
operations, products, services and prices.
Accordingly, results actually achieved may differ materially from expected
results in these statements. Forward-looking statements speak only as of the
date they are made. First Midwest does not undertake, and specifically
disclaims, any obligation to update any forward-looking statements to reflect
events or circumstances occurring after the date of such statements.
Accompanying Financial Statements and Tables
Accompanying this press release is the following unaudited financial
information:
-- Operating Highlights, Balance Sheet Highlights and Common Stock Data
-- Condensed Consolidated Statements of Condition
-- Condensed Consolidated Statements of Income
-- Selected Quarterly Data and Asset Quality
Press Release and Additional Information Available on Website
This press release, the accompanying financial statements and tables and
certain additional unaudited selected financial information (totalling 3
pages) are available through the "Investor Relations" section of First
Midwest's website at http://www.firstmidwest.com .
First Midwest Bancorp, Inc.
Operating Highlights Quarters Ended Years Ended
Unaudited December 31, December 31,
(Amounts in thousands except per
share data) 2001 2000 2001 2000
Net income . . . . . . . . . . . . . $21,274 $19,435 $82,138 $75,540
Diluted earnings per share . . . . . $0.43 $0.38 $1.63 $1.46
Return on average equity . . . . . . 18.24% 18.25% 17.89% 19.17%
Return on average assets . . . . . . 1.47% 1.31% 1.43% 1.30%
Net interest margin . . . . . . . . . 4.33% 3.61% 4.10% 3.76%
Efficiency ratio . . . . . . . . . . 48.08% 51.77% 49.65% 53.09%
Balance Sheet Highlights
Unaudited
(Amounts in thousands except per share data) Dec. 31, 2001 Dec. 31, 2000
Total assets . . . . . . . . . . . . . . . $5,667,919 $5,906,484
Total loans . . . . . . . . . . . . . . . . 3,372,306 3,233,196
Total deposits . . . . . . . . . . . . . . 4,193,921 4,252,205
Stockholders' equity . . . . . . . . . . . 447,267 446,723
Book value per share . . . . . . . . . . . $9.18 $8.75
Period end shares outstanding . . . . . . . 48,725 51,082
Common Stock Data Quarters Ended Years Ended
Unaudited December 31, December 31,
2001 2000 2001 2000
Market Price, Quarters
Ended:
Quarter End . . . . . . . $29.19 $23.00 $29.19 $23.00
High . . . . . . . . . . $29.81 $23.40 $29.81 $23.40
Low . . . . . . . . . . . $24.54 $17.60 $20.65 $16.80
Period end price to book
value . . . . . . . . . . 3.2 x 2.6 x 3.2 x 2.6 x
Period end price to 2001
earnings . . . . . . . . . 17.9 x N/A 17.9 x N/A
Dividends declared per
share . . . . . . . . . . $0.17 $0.16 $0.65 $0.59
All share and per share data has been adjusted to reflect the 5-for-4
stock split paid in December 2001.
First Midwest Bancorp, Inc.
Condensed Consolidated Statements of Condition
Unaudited December 31,
(Amounts in thousands) 2001 2000
Assets
Cash and due from banks . . . . . . . $155,822 $166,423
Funds sold and other short-term
investments . . . . . . . . . . . . 19,574 23,508
Securities available for sale . . . 1,771,607 2,130,148
Securities held to maturity, at
amortized cost . . . . . . . . . . 89,227 84,797
Loans . . . . . . . . . . . . . . . 3,372,306 3,233,196
Reserve for loan losses . . . . . . (47,745) (45,093)
Net loans . . . . . . . . . . . . 3,324,561 3,188,103
Premises, furniture and equipment . 77,172 81,840
Investment in corporate owned life
insurance . . . . . . . . . . . . . 135,280 126,860
Accrued interest receivable and
other assets . . . . . . . . . . . 94,676 104,805
Total assets . . . . . . . . . . . $5,667,919 $5,906,484
Liabilities and Stockholders' Equity
Deposits . . . . . . . . . . . . . . $4,193,921 $4,252,205
Borrowed funds . . . . . . . . . . . 971,851 1,145,872
Accrued interest payable and other
liabilities . . . . . . . . . . . . 54,880 61,684
Total liabilities . . . . . . . . 5,220,652 5,459,761
Common stock . . . . . . . . . . . . 569 569
Additional paid-in capital . . . . . 74,961 78,155
Retained earnings . . . . . . . . . 537,600 487,878
Accumulated other comprehensive
income . . . . . . . . . . . . . . 5,265 (7,039)
Treasury stock, at cost . . . . . . (171,128) (112,840)
Total stockholders' equity . . . .
. . . . . . . . . . . . . . . . . 447,267 446,723
Total liabilities and
stockholders' equity . . . . . . $5,667,919 $5,906,484
All share and per share data has been adjusted to reflect the 5-for-4
stock split paid in December 2001.
First Midwest Bancorp, Inc.
Condensed Consolidated Statements
of Income Quarters Ended Years Ended
Unaudited December 31, December 31,
(Amounts in thousands except per
share data) 2001 2000 2001 2000
Interest Income
Loans . . . . . . . . . . . . . . . $61,407 $73,336 $265,191 $278,907
Securities . . . . . . . . . . . . 26,388 34,708 119,009 141,086
Other . . . . . . . . . . . . . . . 269 211 1,018 1,524
Total interest income . . . . . . 88,064 108,255 385,218 421,517
Interest Expense
Deposits . . . . . . . . . . . . . 26,384 43,689 134,497 155,887
Borrowed funds . . . . . . . . . . 7,832 18,575 46,341 76,019
Total interest expense . . . . . 34,216 62,264 180,838 231,906
Net interest income . . . . . . . 53,848 45,991 204,380 189,611
Provision for Loan Losses . . . . . 6,313 1,995 19,084 9,094
Net interest income after
provision for loan losses . . . 47,535 43,996 185,296 180,517
Noninterest Income
Service charges on deposit accounts 6,505 5,361 24,148 21,341
Trust and investment management
fees . . . . . . . . . . . . . . . 2,535 2,836 10,445 10,671
Other service charges, commissions,
and fees . . . . . . . . . . . . . 4,652 4,521 18,471 16,282
Corporate owned life insurance
income . . . . . . . . . . . . . . 1,968 2,146 8,190 6,517
Securities gains, net . . . . . . . 33 184 790 1,238
Other . . . . . . . . . . . . . . . 1,740 1,620 6,822 7,149
Total noninterest income . . . . 17,433 16,668 68,866 63,198
Noninterest Expense
Salaries and employee benefits . . 19,726 18,256 76,780 75,707
Occupancy expenses . . . . . . . . 2,961 3,458 14,353 13,635
Equipment expenses . . . . . . . . 1,929 1,859 7,644 7,900
Technology and related costs . . . 2,493 2,597 10,186 10,894
Other . . . . . . . . . . . . . . . 9,551 8,877 36,393 36,280
Total noninterest expense . . . . 36,660 35,047 145,356 144,416
Income before taxes . . . . . . . . 28,308 25,617 108,806 99,299
Income tax expense . . . . . . . . 7,034 6,182 26,668 23,759
Net Income . . . . . . . . . . . $21,274 $19,435 $82,138 $75,540
Diluted Earnings Per Share . . . $0.43 $0.38 $1.63 $1.46
Cash Basis Diluted Earnings Per
Share . . . . . . . . . . . . . $0.45 $0.39 $1.68 $1.52
Dividends Declared Per Share . . $0.17 $0.16 $0.65 $0.59
Weighted Average Diluted Shares
Outstanding . . . . . . . . . . 49,233 51,399 50,401 51,604
All share and per share data has been adjusted to reflect the 5-for-4
stock split paid in December 2001.
First Midwest Bancorp, Inc.
Selected Quarterly Data
Unaudited Years Ended
(Amounts in thousands except per share data) 12/31/01 12/31/00
Net interest income . . . . . . . . . $204,380 $189,611
Provision for loan losses . . . . . . 19,084 9,094
Noninterest income . . . . . . . . . 68,866 63,198
Noninterest expense . . . . . . . . . 145,356 144,416
Net income . . . . . . . . . . . . . 82,138 75,540
Diluted earnings per share . . . . . $1.63 $1.46
Return on average equity . . . . . . 17.89% 19.17%
Return on average assets . . . . . . 1.43% 1.30%
Net interest margin . . . . . . . . . 4.10% 3.76%
Efficiency ratio . . . . . . . . . . 49.65% 53.09%
Period end shares outstanding . . . . 48,725 51,082
Book value per share . . . . . . . . $9.18 $8.75
Dividends declared per share . . . . $0.65 $0.59
Cash basis net income(A) . . . . . . $84,788 $78,233
Cash basis diluted earnings per share $1.68 $1.52
Return on average equity - cash basis 18.46% 19.85%
Return on average assets - cash basis 1.48% 1.35%
(A) Excludes amortization of goodwill, core deposit premiums, and other
intangibles, net of tax.
First Midwest Bancorp, Inc.
Selected Quarterly Data
Unaudited Quarters Ended
(Amounts in thousands
except per share data) 12/31/01 09/30/01 06/30/01 03/31/01 12/31/00
Net interest income . . . . $53,848 $53,279 $50,365 $46,888 $45,991
Provision for loan losses . 6,313 5,248 4,065 3,458 1,995
Noninterest income . . . . 17,433 17,238 17,269 16,926 16,668
Noninterest expense . . . . 36,660 36,884 36,719 35,093 35,047
Net income . . . . . . . . 21,274 21,249 20,291 19,324 19,435
Diluted earnings per share $0.43 $0.42 $0.40 $0.38 $0.38
Return on average equity . 18.24% 18.57% 17.65% 17.06% 18.25%
Return on average assets . 1.47% 1.47% 1.41% 1.36% 1.31%
Net interest margin . . . . 4.33% 4.27% 4.04% 3.77% 3.61%
Efficiency ratio . . . . . 48.08% 48.92% 50.46% 51.35% 51.77%
Period end shares
outstanding . . . . . . . 48,725 49,109 49,917 50,907 51,082
Book value per share . . . $9.18 $9.31 $9.03 $9.14 $8.75
Dividends declared per
share . . . . . . . . . . $0.17 $0.16 $0.16 $0.16 $0.16
Cash basis net income(A) . $21,923 $21,898 $20,977 $19,990 $20,108
Cash basis diluted earnings
per share . . . . . . . . $0.45 $0.44 $0.41 $0.39 $0.39
Return on average equity -
cash basis . . . . . . . . 18.80% 19.14% 18.25% 17.65% 18.88%
Return on average assets -
cash basis . . . . . . . . 1.52% 1.52% 1.47% 1.41% 1.36%
(A) Excludes amortization of goodwill, core deposit premiums, and other
intangibles, net of tax.
Asset Quality
Unaudited Years Ended
(Amounts in thousands) 12/31/01 12/31/00
Nonperforming loans . . . . . . . . . $16,847 $19,849
Foreclosed real estate . . . . . . . 3,630 1,337
Loans past due 90 days and still
accruing . . . . . . . . . . . . . 5,783 7,045
Nonperforming loans to loans . . . . 0.50% 0.61%
Nonperforming assets to loans
plus foreclosed real estate . . 0.61% 0.65%
Reserve for loan losses to loans . . 1.42% 1.39%
Reserve for loan losses to
nonperforming loans . . . . . . . . 283% 227%
Provision for loan losses . . . . . $19,084 $9,094
Net loan charge-offs . . . . . . . . 16,432 6,646
Net loan charge-offs to average loans 0.49% 0.21%
All share and per share data has been adjusted to reflect the 5-for-4
stock split paid in December 2001.
Asset Quality
Unaudited Quarters Ended
(Amounts in thousands) 12/31/01 09/30/01 06/30/01 03/31/01 12/31/00
Nonperforming loans . . . .$16,847 $21,425 $20,518 $22,453 $19,849
Foreclosed real estate . . 3,630 3,651 2,425 1,246 1,337
Loans past due 90 days and
still accruing . . . . . . 5,783 6,117 5,187 5,339 7,045
Nonperforming loans to
loans . . . . . . . . . . 0.50% 0.62% 0.61% 0.68% 0.61%
Nonperforming assets to
loans
plus foreclosed real
estate . . . . . . . . 0.61% 0.73% 0.68% 0.72% 0.65%
Reserve for loan losses to
loans . . . . . . . . . . 1.42% 1.38% 1.38% 1.39% 1.39%
Reserve for loan losses to
nonperforming loans . . . 283% 223% 228% 202% 227%
Provision for loan losses . $6,313 $5,248 $4,065 $3,458 $1,995
Net loan charge-offs . . . 6,313 4,208 2,781 3,130 1,951
Net loan charge-offs to
average loans . . . . . . 0.73% 0.49% 0.34% 0.39% 0.23%
All share and per share data has been adjusted to reflect the 5-for-4
stock split paid in December 2001.
SOURCE First Midwest Bancorp, Inc.
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Related links:
http://www.firstmidwest.com
Company News On-Call:
http://www.prnewswire.com/comp/122621.html
CONTACT:
Donald J. Swistowicz, +1-630-875-7460, or
James M. Roolf, +1-630-875-7463, both of First Midwest Bancorp,
Inc.
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