Quarter Up 11.1% - Six Months Up 9.0%
2nd QUARTER 2001 HIGHLIGHTS:
-- Record EPS of $.50 vs. $.45 a Year Ago & $.48 Consensus
-- Record ROAA of 1.41% vs. 1.29% a Year Ago
-- Continued Net Interest Margin Improvement to 4.04% vs. 3.77% in 1st
Quarter 2001 & 3.84% in 2nd Quarter 2000
-- Record Efficiency Ratio of 50.5% vs. 54% a Year Ago
-- Noninterest Income up 11% - Non Interest Expense Down 1.3%
-- Credit Quality Stable
ITASCA, Ill., July 19 /PRNewswire/ -- First Midwest Bancorp, Inc.
(Nasdaq: FMBI) today reported net income for the second quarter ended June 30,
2001 increased to a record $20.3 million, or $.50 per diluted share, as
compared to 2000's like quarter of $18.6 million, or $.45 per diluted share,
representing an increase of 11.1% on a per diluted share basis. (First Call's
consensus estimate of diluted earnings per share for the quarter was $.48.)
Performance for the current quarter resulted in a record annualized return on
average assets of 1.41% as compared to 1.29% for the like quarter of 2000 and
an annualized return on average equity of 17.7% as compared to 19.6% for the
2000 quarter.
For the first six months of 2001, net income increased to a record
$39.6 million, or $.97 per diluted share, as compared to 2000's $36.7 million,
or $.89 per diluted share, representing an increase of 9.0% on a diluted per
share basis. Performance for the first six months of 2001 resulted in a
record annualized return on average assets of 1.39% as compared to 1.29% for
the like period of 2000 and an annualized return on average equity of 17.4% as
compared to 19.7% for the 2000 period.
The reduction in return on average equity for the second quarter and six
months of 2001 is attributable to an approximate $58 million increase in total
stockholders' equity at June 30, 2001 over the year-earlier level resulting
primarily from the significant improvement in the market value of the
available-for-sale securities portfolio. As a result of such improvement,
book value per share as of June 30, 2001 was $11.29 vs. $9.63 a year ago, an
increase of 17.2%. The increase in book value occurred while First Midwest
continued to repurchase shares of its common stock with 1.2 million shares
being purchased since June 30, 2000, of which 665,000 shares were purchased in
second quarter 2001.
During second quarter 2001 First Midwest continued to successfully execute
its strategy of quality loan growth coupled with the expansion of its core
deposit base in order to expand market share, reduce reliance on higher-cost
wholesale funding and improve net interest margin. Total average loans
increased by 7.0% during the first half of 2001 as compared to the 2000
period, while total average deposits increased by 3.3% for the same period.
Average wholesale funding, meanwhile, decreased by $165 million, or 13.1%
during the first six months of 2001 as compared to 2000's like period.
As a result of the successful execution of loan and funding strategies, as
well as the series of recent Fed interest rate reductions, the net interest
margin in second quarter 2001 continued to improve increasing by 27 basis
points to 4.04% over first quarter 2001 and by 20 basis points over second
quarter 2000. Since troughing at 3.61% in fourth quarter 2000, the margin has
increased for the past two quarters to 3.77% in first quarter 2001 and 4.04%
in the current quarter.
The provision for loan losses for second quarter 2001 totaled $4.1 million
and exceeded net charge-offs by $1.3 million while that for first half 2001 of
$7.5 million exceeded net charge-offs by $1.6 million. As a result, even as
the loan growth described above was realized, the reserve for loan losses at
June 30, 2001 was maintained at the level as throughout 2000.
Credit quality ratios improved at June 30, 2001, reversing the increase in
such ratios seen at March 31, 2001. Thus, the ratio of nonperforming loans to
total loans at June 30, 2001 improved by 7 basis points to .61% from .68% at
the prior quarter-end, while net loan charge-offs to average loans decreased
to .34% from .39% for the quarters then ended. As a result of the
provisioning described above and the reduced charge-offs, the ratio of the
reserve for loan losses to nonperforming loans increased at June 30, 2001 to
228% and represented the highest coverage ratio in the last two plus years.
Total noninterest income for second quarter 2001 grew by 11.0% over 2000's
like quarter, following a 15.1% increase in the first quarter of this year.
The year-over-year improvement occurred primarily in the major categories of
service charges on deposits and other service charges and fees. Additionally,
corporate-owned life insurance income increased by $565,000 resulting from
both higher outstanding balances and improved earnings rates.
Noninterest expenses for second quarter 2001 decreased 1.3% from 2000's
like quarter and followed a decrease of 5.5% experienced in the first quarter
2001. Year-over-year improvement for both the second quarter and the six
month period was realized in virtually all major categories of noninterest
expense and resulted in efficiency ratios of 50.5% for second quarter 2001 and
50.9% for the first six months, both representing record levels of performance
in this key ratio.
Reviewing the strong performance for the six months just ended, the first
half's 9% growth in diluted earnings per share exceeded the earlier provided
guidance that suggested growth in the 7% range and equaled the 9% that had
been expected in the second half of 2001. First Midwest continues to expect a
stronger second half fueled by continuing (albeit at a moderated rate)
improvement in net interest margin translating into improvement in diluted
earnings per share in the $0.01 - $0.02 range in both the third and fourth
quarters over the preceding quarter. This expectation continues to be
qualified by the economic, monetary and fiscal uncertainties confronting First
Midwest and the economy generally as expressed in the earlier provided
guidance.
With assets of approximately $6 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 71 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, 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.
Financial Statements and Tables
Accompanying this Press Release is the following unaudited financial data:
-- Operating Highlights and Stock Performance
-- Condensed Consolidated Statements of Condition
-- Condensed Consolidated Statements of Income
-- Selected Quarterly Information
Press Release Available on Website
This Press Release and the accompanying unaudited financial data, as well
as certain additional unaudited Selected Financial Information (totaling 3
pages), are available through the "Investor Relations" section on First
Midwest's website at http://www.firstmidwest.com .
Operating Highlights Quarters Ended Six Months Ended
June 30, June 30,
Unaudited - Accuracy
and Completeness
Not Guaranteed
($s in thousands except
per share data) 2001 2000 2001 2000
Net income $20,291 $18,563 $39,615 $36,703
Diluted earnings
per share $0.50 $0.45 $0.97 $0.89
Cash earnings
per share $0.51 $0.47 $1.00 $0.92
Return on
average equity 17.65% 19.62% 17.36% 19.73%
Return on
average assets 1.41% 1.29% 1.39% 1.29%
Net interest
margin 4.04% 3.84% 3.91% 3.90%
Efficiency ratio 50.46% 54.00% 50.89% 54.30%
Stock Performance Quarters Ended Six Months Ended
June 30, June 30,
Unaudited - Accuracy and
Completeness Not Guaranteed
2001 2000 2001 2000
Market Price, Quarters
Ended:
Quarter End $30.85 $23.25 $30.85 $23.25
High $30.85 $25.31 $30.85 $26.44
Low $27.51 $22.25 $25.81 $21.00
Book value per share $11.29 $9.63 $11.29 $9.63
Market price to
book value 2.7x 2.4x 2.7x 2.4x
Market price to
analysts' estimated
2001 earnings 15.66x N/A 15.66x N/A
Quarterly dividend
declared per share $0.20 $0.18 $0.40 $0.36
Shares outstanding,
in thousands 40,090 41,055 40,090 41,055
Condensed Consolidated
Statements of Condition
Unaudited - Accuracy and
Completeness Not Guaranteed June 30,
($s in thousands)
2001 2000
Assets
Cash and due from banks $181,709 $186,943
Funds sold and other
short-term investments 23,623 26,261
Securities available
for sale 1,843,645 2,164,297
Securities held to
maturity, at amortized cost 96,810 45,558
Loans 3,372,754 3,201,708
Reserve for loan losses (46,705) (44,112)
Net loans 3,326,049 3,157,596
Premises, furniture and equipment 79,923 80,788
Investment in corporate owned
life insurance 131,576 113,220
Accrued interest receivable
and other assets 89,714 134,322
Total assets $ 5,773,049 $ 5,908,985
Liabilities and Stockholders' Equity
Deposits $ 4,162,607 $ 4,064,102
Borrowed funds 1,103,410 1,392,484
Accrued interest payable
and other liabilities 54,319 57,240
Total liabilities 5,320,336 5,513,826
Common stock 455 455
Additional paid-in capital 77,495 81,370
Retained earnings 511,312 464,606
Accumulated other comprehensive income (1,405) (43,375)
Treasury stock, at cost (135,144) (107,897)
Total stockholders' equity 452,713 395,159
Total liabilities and
stockholders' equity $ 5,773,049 $ 5,908,985
Condensed Consolidated
Statements of Income Quarters Ended Six Months Ended
Unaudited - Accuracy and June 30 June 30,
Completeness Not
Guaranteed ,
($s in thousands except
per share data) 2001 2000 2001 2000
Interest Income
Loans $67,850 $ 68,893 $137,062 $133,428
Securities 31,033 35,597 64,269 70,302
Other 279 227 472 460
Total interest
income 99,162 104,717 201,803 204,190
Interest Expense
Deposits 36,234 36,471 76,351 71,040
Borrowed funds 12,563 19,846 28,199 36,558
Total interest
expense 48,797 56,317 104,550 107,598
Net interest
income 50,365 48,400 97,253 96,592
Provision for Loan
Losses 4,065 2,512 7,523 4,474
Net interest income
after provision for
loan losses 46,300 45,888 89,730 92,118
Noninterest Income
Service charges on
deposit accounts 6,089 5,496 11,581 10,485
Trust and investment
management fees 2,648 2,680 5,321 5,158
Other service charges,
commissions,
and fees 4,628 4,244 8,895 7,782
Mortgage banking
revenues -- 1 -- 406
Corporate owned life
insurance income 2,019 1,454 4,287 2,877
Securities gains
(losses), net (2) (49) 702 (57)
Other 1,887 1,733 3,409 3,616
Total noninterest
income 17,269 15,559 34,195 30,267
Noninterest Expense
Salaries and employee
benefits 19,097 19,593 37,535 39,132
Occupancy expenses 3,819 3,299 7,933 6,766
Equipment expenses 1,889 1,901 3,843 3,957
Technology and related
costs 2,558 2,718 5,099 5,716
Other 9,356 9,689 17,402 18,762
Total noninterest
expense 36,719 37,200 71,812 74,333
Income before taxes 26,850 24,247 52,113 48,052
Income tax expense 6,559 5,684 12,498 11,349
Net Income $20,291 $18,563 $39,615 $ 36,703
Diluted Earnings Per
Share $0.50 $0.45 $0.97 $0.89
Cash Earnings
Per Share $0.51 $0.47 $1.00 $0.92
Dividends Declared
Per Share $0.20 $0.18 $0.40 $0.36
Unaudited - Accuracy and
Completeness Not
Guaranteed Year to Date Quarters Ended
6/30/01 6/30/00 6/30/01 3/31/01
Diluted earnings
per share $0.97 $0.89 $0.50 $0.47
Cash earnings
per share $1.00 $0.92 $0.51 $0.49
Dividends per share 0.40 0.36 0.20 0.20
Return on average
equity 17.36% 19.73% 17.65% 17.06%
Return on average
assets 1.39% 1.29% 1.41% 1.36%
Net interest margin 3.91% 3.90% 4.04% 3.77%
Efficiency ratio 50.89% 54.30% 50.46% 51.35%
Key Financial Data
Unaudited - Accuracy and
Completeness Not Guaranteed Quarters Ended
12/31/00 9/30/00 6/30/00
Diluted earnings per share $0.47 $0.47 $0.45
Cash earnings per share $0.49 $0.49 $0.47
Dividends per share 0.20 0.18 0.18
Return on average equity 18.25% 19.10% 19.62%
Return on average assets 1.31% 1.30% 1.29%
Net interest margin 3.61% 3.66% 3.84%
Efficiency ratio 51.77% 51.96% 54.00%
Asset Quality
Unaudited - Accuracy and
Completeness Not
Guaranteed Year to Date Quarters Ended
($s in thousands) 6/30/01 6/30/00 6/30/01 3/31/01
Nonaccrual loans $20,518 $19,838 $20,518 $22,453
Foreclosed real estate 2,425 1,295 2,425 1,246
Loans past due 90 days
and still accruing 5,187 6,009 5,187 5,339
Nonperforming loans
to loans 0.61% 0.62% 0.61% 0.68%
Nonperforming assets
to loans
plus foreclosed
real estate 0.68% 0.66% 0.68% 0.72%
Reserve for loan losses
to loans 1.38% 1.38% 1.38% 1.39%
Reserve for loan losses
to nonperforming loans 228% 222% 228% 202%
Provision for loan
losses $7,523 $4,474 $4,065 $3,458
Net loan charge-offs 5,911 3,007 2,781 3,130
Net loan charge-offs
to average loans 0.36% 0.20% 0.34% 0.39%
Asset Quality
Unaudited - Accuracy
and Completeness Not Guaranteed Quarters Ended
($s in thousands) 12/31/00 9/30/00 6/30/00
Nonaccrual loans $19,849 $20,313 $19,838
Foreclosed real estate 1,337 2,467 1,295
Loans past due 90 days and
still accruing 7,045 6,217 6,009
Nonperforming loans to loans 0.61% 0.62% 0.62%
Nonperforming assets to loans
plus foreclosed real estate 0.65% 0.69% 0.66%
Reserve for loan losses
to loans 1.39% 1.37% 1.38%
Reserve for loan losses to
nonperforming loans 227% 222% 222%
Provision for loan losses $1,995 $2,625 $2,512
Net loan charge-offs 1,951 1,688 1,384
Net loan charge-offs to
average loans 0.23% 0.21% 0.18%
SOURCE First Midwest Bancorp, Inc.
 back to top
Related links:
http://www.firstmidwest.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/122621.html
CONTACT:
Donald J. Swistowicz for First Midwest
Bancorp, Inc., +1-630-875-7460
|
