3rd QUARTER 2001 HIGHLIGHTS:
- Record EPS of $.53 vs. $.47 Last Year
- Record ROAA of 1.47% vs. 1.30% Last Year
- Net Interest Margin of 4.27% vs. 3.66% Last Year -
Up 66 Basis Points YTD
- Record Efficiency Ratio of 48.9% vs. 51.9% Last Year
- Credit Quality Continues Stable
ITASCA, Ill., Oct. 17 /PRNewswire/ -- First Midwest Bancorp, Inc.
(Nasdaq: FMBI) today reported net income for the third quarter ended September
30, 2001 increased to a record $21.2 million, or $.53 per diluted share, as
compared to 2000's like quarter of $19.4 million, or $.47 per diluted share,
representing an increase of 12.8% on a diluted share basis. Performance for
the current quarter resulted in a record annualized return on average assets
of 1.47% as compared to 1.30% for the like quarter of 2000 and an annualized
return on average equity of 18.6% as compared to 19.1% for the 2000 quarter.
For the nine months of 2001, net income likewise increased to a record
$60.9 million, or $1.50 per diluted share, as compared to 2000's
$56.1 million, or $1.36 per diluted share, representing an increase of 10.3%
on a diluted share basis. Performance for the nine months of 2001 also
resulted in a record annualized return on average assets of 1.42% as compared
to 1.30% for the like period of 2000 and an annualized return on average
equity of 17.8% as compared to 19.5% for the 2000 period.
Cash basis diluted earnings (which excludes amortization of goodwill and
core deposit intangibles resulting from acquisitions) increased to $.55 per
share for third quarter 2001 as compared to 2000's $.49, representing an
increase of 12.2%. For the nine months of 2001, cash basis diluted earnings
increased to $1.55 per share as compared to $1.41 for the 2000 period,
representing an increase of 10.0%. On a cash basis, the annualized return on
average assets (which excludes from average assets goodwill and core deposit
intangibles) was 1.52% for third quarter 2001 as compared to 2000's 1.35%,
while annualized return on average equity for third quarter 2001 was 19.14% as
compared to 2000's 19.76%. For the nine months of 2001, cash basis annualized
return on average assets increased to 1.47% as compared to 1.35% for the like
2000 period and annualized return on average equity of 18.35% compared to
20.21% for the 2000 period.
The lower return on average equity for the third quarter and nine months
of 2001 as compared to 2000 is attributable to an approximate $39 million
increase in total stockholders' equity at September 30, 2001 over the year-
earlier level resulting from increased unrealized securities gains. As a
result, book value per share as of September 30, 2001 was $11.64 vs. $10.21 a
year ago, an increase of 14.0%.
Loan and Deposit Growth
Total average loans for the nine months of 2001 increased 6.4% over the
2000 period, while on a linked-quarter basis total average loans for third
quarter 2001 grew by 2.4%. Loan growth continues across all three major
categories of commercial, consumer and real estate with the largest increases
on both a year-to-date and linked-quarter basis being experienced in the real
estate category. Responsive to the slowing economy, intensified focus on
sound underwriting and profitable pricing has been maintained at the expense
of loan growth.
Total average deposits for the nine months of 2001 increased by some 2%
over the 2000 period and were essentially unchanged on a linked-quarter basis.
This modest core deposit growth coupled with the liquidity provided by the
securities portfolio funded the quarter's loan growth while, at the same time,
allowing continued reduction in higher cost wholesale funds, with the latter
decreasing by 2.2% on a linked-quarter basis and by 15.2% for the nine months
of 2001 as compared to the 2000 period.
Improvement In Net Interest Margin
Driven by continued loan growth and the series of Fed interest rate
reductions, net interest margin for third quarter 2001 improved to 4.27% as
compared to 4.04% and 3.77% in second and first quarter 2001, respectively.
Also contributing to the stronger net interest margin were the growth in core
deposits and reduction in higher cost wholesale funding, as described above.
In sum, since troughing at 3.61% in fourth quarter 2000, margin has improved
by 66 basis points year to date.
Noninterest Income And Expense
Factoring out the effect of net security gains, total noninterest income
for the third quarter 2001 grew by 13.4% over 2000's like quarter while the
nine months of 2001 grew by 11.4% over the prior year period. The year-over-
year improvement for both the third quarter and nine month period was realized
across all categories of noninterest income except for market sensitive
(investment management) fees. Although improvement occurred in this category
for the nine month period, the third quarter performance saw a modest decrease
in market sensitive revenues related to the significant drop in equity prices
during the quarter. Total noninterest expenses for third quarter 2001
increased by 5.3% from 2000's like quarter while on a linked-quarter basis
they were virtually unchanged.
The combination of top line revenue growth and continued stringent cost
controls resulted in efficiency ratios of 48.9% for third quarter 2001 and
50.2% for the nine month period, both representing record levels of
performance and the first ever sub 50% achieved in this key ratio.
Credit Quality
Predictably, third quarter 2001 charge-offs were consistent with the
continuing weakness the overall economy is experiencing. Thus, net loan
charge-offs for third quarter were .49% of average loans, up from .21% for the
like 2000 quarter and .34% for second quarter 2001, with increases being
concentrated in the consumer and commercial real estate portfolios. Charge-
offs for third quarter and nine months of 2001 were more than covered by loan
loss provisions with provisions exceeding net charge-offs by $1 million for
the quarter and $2.7 million for the nine months.
As a result of such provisioning, the ratio of the reserve for loan loss
to total loans at September 30, 2001 was maintained at approximately 1.38%
while the coverage ratio of the reserve for loan losses to nonperforming loans
was maintained at approximately 223%, both consistent with the levels of the
past six quarters. Similarly, the ratio of nonperforming loans to total loans
at September 30, 2001 remained at .62%, again consistent with the level of the
past many quarters.
Capital Management
First Midwest continued to repurchase its common stock during third
quarter 2001 with approximately 857,000 shares being repurchased at an average
price of approximately $32.36 per share. Since January 1, 2001 First Midwest
has repurchased approximately 1.7 million shares of its common stock at an
average price of $30.47 per share under current and prior authorizations. As
of September 30, 2001 approximately 1.9 million shares remain under the
2.5 million share authorization approved by its Board of Directors on August
15, 2001. First Midwest has funded its share repurchases during 2001 with
general operating funds and has no long or short term debt as of September 30,
2001.
As of September 30, 2001 First Midwest's Total Risk Based Capital and Tier
1 Risk Based Capital ratios were 10.77% and 9.68%, 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
7.64% and exceeded the regulatory minimum range of 3% - 5% required to be
considered a "well capitalized" institution.
Outlook For Fourth Quarter 2001
First Midwest is comfortable with the current fourth quarter 2001
consensus estimate of $.53 per share. This guidance is based upon First
Midwest's current assessment of general economic conditions and is qualified
by the many uncertainties confronting it and its customers magnified by the
unknown consequences related to the tragic events of September 11, 2001.
With assets of approximately $5.8 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
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.
Financial Statements and Tables
Accompanying this Press Release is the following unaudited financial data:
-- Operating and Balance Sheet Highlights
-- 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
(totalling 3 pages), are available through the "Investor Relations" section on
First Midwest's website at http://www.firstmidwest.com.
First Midwest Bancorp, Inc.
Operating Highlights
Unaudited - Accuracy and Completeness Not Guaranteed
Quarters Ended Nine Months Ended
(Amounts in thousands except per September 30, September 30,
share data) 2001 2000 2001 2000
Net interest income $53,279 $47,028 $150,532 $143,620
Provision for loan losses 5,248 2,625 12,771 7,099
Noninterest income 17,238 16,263 51,433 46,530
Noninterest expense 36,884 35,036 108,696 109,369
Net income 21,249 19,402 60,864 56,105
Cash basis net income $21,898 $20,073 $62,865 $58,125
Diluted earnings per share $0.53 $0.47 $1.50 $1.36
Return on average equity 18.57% 19.10% 17.76% 19.51%
Return on average assets 1.47% 1.30% 1.42% 1.30%
Net interest margin 4.27% 3.66% 4.03% 3.82%
Efficiency ratio 48.92% 51.96% 50.20% 53.53%
Cash basis diluted earnings per
share (A) $0.55 $0.49 $1.55 $1.41
Return on average equity - cash
basis (A) 19.14% 19.76% 18.35% 20.21%
Return on average assets - cash
basis (A) 1.52% 1.35% 1.47% 1.35%
Book value per share $11.64 $10.21 $11.64 $10.21
Quarterly dividend declared per
share $0.20 $0.18 $0.60 $0.54
(A) Excludes amoritzation of goodwill, core deposit premiums, and other
intangibles, net of tax.
Balance Sheet Highlights
Unaudited - Accuracy and Completeness Not Guaranteed
Sept. 30, Dec. 31, Sept. 30,
(Amounts in thousands) 2001 2000 2000
Total assets $5,819,571 $5,906,484 $5,964,538
Total loans 3,448,248 3,233,196 3,298,646
Total deposits 4,179,494 4,252,205 4,220,235
Stockholders' equity 457,297 446,723 418,201
Period end shares outstanding 39,287 40,866 40,951
First Midwest Bancorp, Inc.
Condensed Consolidated Statements of Condition
Unaudited - Accuracy and Completeness Not Guaranteed
September 30,
(Amounts in thousands) 2001 2000
Assets
Cash and due from banks $184,120 $163,392
Funds sold and other short-term
investments 14,728 14,243
Securities available for sale 1,830,378 2,127,425
Securities held to maturity, at
amortized cost 87,014 43,063
Loans 3,448,248 3,298,646
Reserve for loan losses (47,745) (45,049)
Net loans 3,400,503 3,253,597
Premises, furniture and equipment 77,698 80,989
Investment in corporate owned life
insurance 133,412 114,714
Accrued interest receivable and
other assets 91,718 167,115
Total assets $5,819,571 $5,964,538
Liabilities and Stockholders' Equity
Deposits $4,179,494 $4,220,235
Borrowed funds 1,117,013 1,259,205
Accrued interest payable and other
liabilities 65,767 66,897
Total liabilities 5,362,274 5,546,337
Common stock 455 455
Additional paid-in capital 76,415 80,944
Retained earnings 524,662 476,626
Accumulated other comprehensive
income 16,695 (29,041)
Treasury stock, at cost (160,930) (110,783)
Total stockholders' equity 457,297 418,201
Total liabilities and
stockholders' equity $5,819,571 $5,964,538
First Midwest Bancorp, Inc.
Condensed Consolidated Statements of Income
Unaudited - Accuracy and Completeness Not Guaranteed
Quarters Ended Nine Months Ended
(Amounts in thousands except per September 30, September 30,
share data) 2001 2000 2001 2000
Interest Income
Loans $66,722 $72,143 $203,784 $205,571
Securities 28,352 36,076 92,621 106,378
Other 277 853 749 1,313
Total interest income 95,351 109,072 297,154 313,262
Interest Expense
Deposits 31,762 41,158 108,113 112,198
Borrowed funds 10,310 20,886 38,509 57,444
Total interest expense 42,072 62,044 146,622 169,642
Net interest income 53,279 47,028 150,532 143,620
Provision for Loan Losses 5,248 2,625 12,771 7,099
Net interest income after
provision for loan losses 48,031 44,403 137,761 136,521
Noninterest Income
Service charges on deposit accounts
6,062 5,495 17,643 15,980
Trust and investment management
fees 2,589 2,677 7,910 7,835
Other service charges, commissions,
and fees 4,924 3,979 13,819 11,761
Corporate owned life insurance
income 1,935 1,494 6,222 4,371
Securities gains (losses), net 55 1,111 757 1,054
Other 1,673 1,507 5,082 5,529
Total noninterest income 17,238 16,263 51,433 46,530
Noninterest Expense
Salaries and employee benefits 19,519 18,319 57,054 57,451
Occupancy expenses 3,459 3,411 11,392 10,177
Equipment expenses 1,872 2,084 5,715 6,041
Technology and related costs 2,594 2,581 7,693 8,297
Other 9,440 8,641 26,842 27,403
Total noninterest expense 36,884 35,036 108,696 109,369
Income before taxes 28,385 25,630 80,498 73,682
Income tax expense 7,136 6,228 19,634 17,577
Net Income $21,249 $19,402 $60,864 $56,105
Diluted Earnings Per Share $0.53 $0.47 $1.50 $1.36
Cash Basis Diluted Earnings Per
Share $0.55 $0.49 $1.55 $1.41
Dividends Declared Per Share $0.20 $0.18 $0.60 $0.54
Weighted Average Diluted Shares
Outstanding 40,095 41,313 40,636 41,338
First Midwest Bancorp, Inc.
Selected Quarterly Information
Key Financial Data
Unaudited - Accuracy and Completeness Not Guaranteed
Year to Date
9/30/01 09/30/00
Net interest income $150,532 $143,620
Provision for loan losses 12,771 7,099
Noninterest income 51,433 46,530
Noninterest expense 108,696 109,369
Net income 60,864 56,105
Cash basis net income $62,865 $58,125
Diluted earnings per share $1.50 $1.36
Return on average equity 17.76% 19.51%
Return on average assets 1.42% 1.30%
Net interest margin 4.03% 3.82%
Efficiency ratio 50.20% 53.53%
Cash basis diluted earnings per
share(A) $1.55 $1.41
Return on average equity - cash
basis(A) 18.35% 20.21%
Return on average assets - cash
basis(A) 1.47% 1.35%
Book value per share $11.64 $10.21
Dividends per share $0.60 $0.54
Quarters Ended
9/30/01 6/30/01 3/31/01 12/31/00 9/30/00
Net interest income $53,279 $50,365 $46,888 $45,991 $47,028
Provision for loan losses 5,248 4,065 3,458 1,995 2,625
Noninterest income 17,238 17,269 16,926 16,668 16,263
Noninterest expense 36,884 36,719 35,093 35,047 35,036
Net income 21,249 20,291 19,324 19,435 19,402
Cash basis net income $21,898 $20,977 $19,990 $20,109 $20,073
Diluted earnings per share $0.53 $0.50 $0.47 $0.47 $0.47
Return on average equity 18.57% 17.65% 17.06% 18.25% 19.10%
Return on average assets 1.47% 1.41% 1.36% 1.31% 1.30%
Net interest margin 4.27% 4.04% 3.77% 3.61% 3.66%
Efficiency ratio 48.92% 50.46% 51.35% 51.77% 51.96%
Cash basis diluted earnings
per share(A) $0.55 $0.51 $0.49 $0.49 $0.49
Return on average equity -
cash basis(A) 19.14% 18.25% 17.65% 18.88% 19.76%
Return on average assets -
cash basis(A) 1.52% 1.47% 1.41% 1.36% 1.35%
Book value per share $11.64 $11.29 $11.43 $10.93 $10.21
Dividends per share $0.20 $0.20 $0.20 $0.20 $0.18
(A) Excludes amortization of goodwill, core deposit premiums, and
other intangibles, net of tax.
Asset Quality
Unaudited - Accuracy and Completeness Not Guaranteed
Year to Date
(Amounts in thousands) 09/30/01 09/30/00
Nonaccrual loans $21,425 $20,313
Foreclosed real estate 3,651 2,467
Loans past due 90 days and still
accruing 6,117 6,217
Nonperforming loans to loans 0.62% 0.62%
Nonperforming assets to loans
plus foreclosed real estate 0.73% 0.69%
Reserve for loan losses to loans 1.38% 1.37%
Reserve for loan losses to
nonperforming loans 223% 222%
Provision for loan losses $12,771 $7,099
Net loan charge-offs 10,119 4,695
Net loan charge-offs to average loans 0.41% 0.20%
Quarters Ended
(Amounts in thousands) 9/30/01 6/30/01 3/31/01 12/31/00 9/30/00
Nonaccrual loans $21,425 $20,518 $22,453 $19,849 $20,313
Foreclosed real estate 3,651 2,425 1,246 1,337 2,467
Loans past due 90 days and
still accruing 6,117 5,187 5,339 7,045 6,217
Nonperforming loans to
loans 0.62% 0.61% 0.68% 0.61% 0.62%
Nonperforming assets to loans
plus foreclosed real estate 0.73% 0.68% 0.72% 0.65% 0.69%
Reserve for loan losses to
loans 1.38% 1.38% 1.39% 1.39% 1.37%
Reserve for loan losses to
nonperforming loans 223% 228% 202% 227% 222%
Provision for loan losses $5,248 $4,065 $3,458 $1,995 $2,625
Net loan charge-offs 4,208 2,781 3,130 1,951 1,688
Net loan charge-offs to
average loans 0.49% 0.34% 0.39% 0.23% 0.21%
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 of First Midwest
Bancorp, Inc., +1-630-875-7460
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