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FIRST MIDWEST BANCORP ANNOUNCES FOURTH QUARTER & FULL YEAR EARNINGS

 FIRST MIDWEST BANCORP ANNOUNCES FOURTH QUARTER & FULL YEAR EARNINGS
 NAPERVILLE, Ill., Jan. 16 /PRNewswire/ -- First Midwest Bancorp, Inc. (NASDAQ/NMS: FMBI) today reported net income for the quarter ended Dec. 31, 1991, or $4.1 million or $0.33 per share compared to $5.7 million or $0.46 per share for 1990's like quarter. For the full year, net income was $17.8 million or $1.42 per share, compared to 1990's record $22.6 million or $1.80 per share.
 Negatively impacting results for both the quarter and full year were significantly higher levels of expense related to nonperforming assets including provisions for loan losses, costs associated with carrying and disposing of foreclosed real estate as well as legal, collection and related costs. Additionally, the results were depressed by FDIC insurance premium costs that more than doubled during the year as well as higher general operating expenses related primarily to credit control enhancements and technology investment.
 On the positive side, net interest income improved in both periods with net interest margins of 4.61 percent and 4.49 percent being recorded for the quarter and year, respectively. Also improving significantly in both periods were fee based revenues of all types.
 From an asset quality perspective, Dec. 31 saw nonperforming loans at their lowest level of the year and approximating the level at year end 1990. Importantly, at year end such loans were 100 percent covered by reserves for losses as such reserves increased to 1.48 percent of net loans from 1.30 percent a year ago.
 Commenting on the results, First Midwest Bancorp President and Chief Executive Officer Robert P. O'Meara said, "While disappointing from a performance perspective, we made significant progress during the year in a number of critical areas. Most importantly, we aggressively addressed problem assets as we stemmed the increase experienced earlier in the year and reduced Dec. 31 levels to the lowest of the year. We built reserves for possible future loan losses to a level where they fully cover nonperforming loans. To accomplish the foregoing, we enhanced both our credit control structures and staff while strengthening related policies and procedures."
 "Additionally, we are pleased with the increase achieved in net interest income and the expansion of margin to 4.5 percent for the year as well as the significant growth in fee based revenues. And of critical importance, the year produced further growth in capital as year end stockholders' equity to assets increased to 7.71 percent and total capital to risk based assets increased to 11.16 percent, levels comfortably exceeding even the upper limits of regulatory prescribed levels."
 "We believe that we have been strengthened by the experiences of 1991 and are now positioned in terms of structure, staff and perspective to optimally address remaining problems and, at the same time, underwrite quality new credit as we go fora?rd," O'Meara concluded.
 At $2.3 billion, First Midwest Bancorp is Illinois' fourth largest publicly traded bank holding company whose 4 regional banks and trust company operate 36 banking and 5 trust offices in Northern Illinois.
 FIRST MIDWEST BANCORP, INC.
 Consolidated Highlights (Unaudited)
 (In thousands, except per share data)
 Balance Sheet Highlights:
 March 31, June 30, Sept. 30, Dec.31,
 1991 1991 1991 1991 1990
 Total assets $2,408,222 $2,399,542 $2,345,359 $2,311,402 $2,368,306
 Net loans(1) 1,386,539 1,372,083 1,385,365 1,391,012 1,370,880
 Reserve for loan
 losses 18,528 19,989 19,462 20,638 17,864
 Deposits & repurchase
 agreements 2,189,703 2,195,276 2,140,599 2,064,232 2,166,676
 Stockholders'
 equity 169,043 172,105 175,218 178,316 166,174
 Book value
 per share 13.48 13.72 13.97 14.23 13.25
 CAPITAL RATIOS
 Stockholders' equity
 to total
 assets (percent) 7.02 7.17 7.47 7.71 7.02
 Stockholders' equity
 to net loans
 (percent) 12.19 12.54 12.65 12.32 12.12
 Tier 1 capital to
 risk-based
 assets (percent) 9.05 9.59 9.62 9.86(2) 8.88
 Total capital to
 risk-based
 assets (percent) 9.97 10.45 10.84 11.16(2) 9.84
 CREDIT QUALITY
 March 31, June 30, Sept. 30, Dec. 31,
 1991 1991 1991 1991 1990
 Loans past due
 90 days &
 still accruing $7,861 $ 9,788 $ 6,765 $ 7,686 $ 3,937
 Nonaccrual loans 23,621 28,992 34,709 20,719 17,986
 Renegotiated loans 223 219 213 104 1,694
 Foreclosed real
 estate 17,410 9,989 10,225 19,616 16,370
 Nonperforming
 loans(3) to net
 loans (percent) 1.72 2.13 2.52 1.50 1.44
 Nonperforming
 assets(4) to net loans
 plus foreclosed real
 estate (percent) 2.94 2.84 3.23 2.87 2.60
 Reserve for loan
 losses to net
 loans (percent) 1.34 1.46 1.40 1.48 1.30
 Reserve for loans
 losses to nonperforming
 Loans (percent) 77.71 68.43 55.73 99.11 90.77
 Net loan charge-offs(5)
 to average net
 loans (percent) 0.60 0.78 0.95 0.92 0.54
 STOCK PERFORMANCE
 QUARTERS ENDED YEARS ENDED DEC. 31,
 March 31, June 30, Sept. 30,
 1991 1991 1991 1991 1990
 Market Value:
 High $ 16.75 $ 20.00 $ 19.25 $ 20.00 $ 23.00
 Low 13.00 15.38 16.25 13.00 11.75
 Period end 16.25 18.75 17.00 16.25 14.50
 Price/earnings
 multiple(6) 9.4x 11.4x 11.0x 11.4x 8.1x
 Price/book
 multiple(7) 1.2x 11.4x 1.2x 1.1x 1.1x
 (1) Net loans equals total loans net of unearned interest.
 (2) Estimated.
 (3) Nonperforming loans equals nonaccrual loans & renegotiated
 loans.
 (4) Nonperforming assets equals nonperforming loans & foreclosed
 real estate.
 (5) Net loan charge-offs are annualized on a year-to-date basis.
 (6) Based on period end stock prices and most recent 12-month net
 income per share.
 (7) Based on period end stock prices and book value per share.
 INCOME STATEMENT SUMMARY
 Quarters Ended Years Ended
 Dec. 31 Dec. 31
 1991 1990 1991 1990
 Interest income $ 49,310 $ 54,900 $ 208,034 $ 206,472
 Tax equivalent
 adjustment 624 681 2,795 3,036
 Tax equivalent
 interest income 49,934 55,581 210,829 209,508
 Interest expense (25,378) (33,126) (113,777) (120,575)
 Tax equivalent net
 interest income 24,556 22,455 97,052 88,933
 Provision for loan
 losses (4,019) (2,321) (15,492) (8,480)
 Other operating
 income 5,667 4,531 20,348 16,985
 Investment security
 gains, net 602 497 1,653 608
 Other operating
 expenses (20,487) (17,026) (77,189) (64,337)
 Tax equivalent income
 before income taxes 6,319 8,136 26,372 33,709
 Income tax expense (1,572) (1,710) (5,770) (8,069)
 Tax equivalent
 adjustment (624) (681) (2,795) (3,036)
 Adjusted
 income taxes (2,196) (2,391) (8,565) (11,105)
 Net income $ 4,123 $ 5,745 $ 17,807 $ 22,604
 Per Share Data:
 Net income $ 0.33 $ 0.46 $ 1.42 $ 1.80
 Dividends paid 0.13 0.13 0.52 0.52
 Average shares
 outstanding 12,538 12,542 12,540 12,549
 Performance Ratios: (Percent)
 Return on average
 equity 9.24 13.86 10.32 14.25
 Return on average
 assets 0.71 0.97 0.76 1.03
 Net interest margin
 (tax equivalent) 4.61 4.14 4.49 4.44
 -0- 1/16/92
 /CONTACT: James M. Roolf of First Midwest Bancorp, 708-778-8700/
 (FMBI) CO: First Midwest Bancorp, Inc. ST: Illinois IN: FIN SU: ERN


JT -- NY058 -- 0537 01/16/92 13:03 EST
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