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FIRST MIDWEST BANCORP REPORTS 18% INCREASE IN FOURTH QUARTER AND FULL YEAR EARNINGS

 NAPERVILLE, Ill., Jan. 13 /PRNewswire/ -- First Midwest Bancorp, Inc. (NASDAQ-NMS: FMBI) today reported net income for the quarter ended Dec. 31, 1993 of $5.5 million, or $0.45 per share, an increase of 18% over last year's like quarter of $4.7 million, or $0.38 per share, and representing the eighth consecutive quarter of improved financial performance. Net income for the full year 1993 was $20.8 million, or $1.68 per share, an increase of 18% over 1992's $17.9 million, or $1.43 per share.
 The quarter and year saw core earnings improvement in both interest income and noninterest income while provision for loan loss expense declined significantly. Net interest margins for the quarter and full year were 4.36% and 4.62% respectively. Margins were negatively impacted by an approximate $300 million investment arbitrage engaged in because of its positive effect on net interest income. Excluding the arbitrage, margins for the quarter and full year would have been 4.68% and 4.82%, respectively. At the same time, security gains contributed significantly less to performance in 1993 at $135,000 and $1.2 million for the quarter and full year, respectively, as compared to 1992's $330,000 and $5.4 million. Continuing asset quality improvement resulted in significantly lower loan chargeoffs allowing reduced provisioning for loan losses. Thus, 1993's provisions of $2.6 million and $11.4 million for the quarter and full year, respectively, compared favorably with 1992's $3.6 million and $15.5 million.
 The improved performance resulted in enhanced return on average equity for the quarter and full year of 11.24% and 10.78, respectively, as compared to 1992's 9.93% and 9.78%.
 Nonperforming loans at Dec. 31, 1993 stood at 0.53% of net loans, down significantly from 0.84% a year earlier, while nonperforming assets represented 1.56% of loans, again down significantly from 1992's 2.63%. The reduction in nonperforming loans coupled with conservative provisioning resulted in the reserve for loan losses at year end equating to 257% of nonperforming loans as compared to 175% a year earlier.
 At $2.7 billion, First Midwest Bancorp is Illinois' fourth largest publicly traded bank holding company and is engaged in commercial banking, investment management, trust and mortgage activities in northern Illinois.
 FIRST MIDWEST BANCORP, INC.
 Consolidated Highlights (unaudited)
 (in thousands, except per share data)
 INCOME STATEMENT SUMMARY:
 QUARTERS ENDED YEARS ENDED ENDED
 DEC. 31, DEC. 31
 1993 1992(1) 1993 1992(1)
 Interest Income $43,604 $43,273 $169,925 $174,222
 Tax Equivalent Adjustment 389 479 1,639 2,291
 Tax Equiv. Interest Income 43,993 43,752 171,564 176,513
 Interest Expense (17,354) (16,606) (66,233) (77,627)
 Tax Equivalent Net Interest
 Income 26,639 27,146 105,331 98,886
 Provision for Loan Losses (2,555) (3,600) (11,432) (15,452)
 Noninterest Income 6,988 6,848 27,937 25,449
 Security Gains, Net 135 330 1,227 5,431
 Noninterest Expense (21,946) (23,363) (90,032) (86,562)
 Tax Equivalent Income before
 Income Taxes 9,261 7,351 33,031 27,752
 Income Tax Expense (3,364) (2,206) (10,608) (7,553)
 Tax Equivalent Adjustment (389) (479) (1,639) (2,291)
 Adjusted Income Taxes (3,753) (2,685) (12,247) (9,844)
 NET INCOME $ 5,508 $ 4,676 $ 20,784 $ 17,908
 PER SHARE DATA:
 NET INCOME $ 0.45 $ 0.38 $ 1.68 $ 1.43
 Dividends Paid $ 0.15 $ 0.13 $ 0.60 $ 0.52
 Average Shares Outstanding 12,243 12,462 12,369 12,486
 PERFORMANCE RATIOS:
 Return on Average Equity 11.24% 9.93% 10.78% 9.78%
 Return on Average Assets 0.83% 0.81% 0.84% 0.78%
 Net Interest Margin (Tax
 Equivalent) 4.36% 5.12% 4.62% 4.71%
 (1) Certain reclassifications have been made to the 1992
 data to conform to the 1993 presentation.
 BALANCE SHEET HIGHLIGHTS:
 March 31, June 30, Sept. 30,
 1993 1993 1993
 Total Assets $2,272,559 $2,512,191 $2,588,619
 Net Loans (1) 1,473,119 1,518,172 1,548,316
 Reserve for Loan Losses 20,687 22,068 22,860
 Deposits and Repurchase
 Agreements 2,055,318 2,296,492 2,363,088
 Stockholders' Equity 191,983 193,295 193,707
 Book Value per Share 15.38 15.59 15.78
 CAPITAL RATIOS:
 Stockholders' Equity to
 Total Assets 8.45% 7.69% 7.48%
 Stockholders' Equity to
 Net Loans 13.03% 12.73% 12.51%
 Tier 1 Capital to Risk-
 Based Assets 10.77% 10.24% 10.05%
 Total Capital to Risk-
 Based Assets 12.02% 11.49% 11.30%
 Leverage Ratio 7.80% 7.21% 7.03%
 CREDIT QUALITY: March 31, June 30, Sept. 30,
 1993 1993 1993
 Nonaccrual Loans $ 11,116 $ 11,204 $ 13,961
 Renegotiated Loans 822 744 978
 Foreclosed Real Estate 25,502 20,183 15,858
 Loans Past Due 90 Days
 and Still Accruing 6,849 8,515 6,095
 Nonperforming Loans (2)
 to Net Loans 0.81% 0.79% 0.96%
 Nonperforming Assets (3)
 to Net Loans Plus
 Foreclosed Real Estate 2.50% 2.09% 1.97%
 Reserve for Loan Losses
 to Net Loans 1.40% 1.45% 1.48%
 Reserve for Loan Losses
 to Nonperforming Loans 173.29% 184.70% 153.02%
 Net Loan Charge-Offs (4)
 to Average Net Loans 1.06% 0.73% 0.66%
 Net Loan Charge-Offs (5) $ 3,821 $ 5,340 $ 7,352
 STOCK PERFORMANCE: Quarters Ended
 March 31, June 30, Sept. 30,
 STOCK PRICES: 1993 1993 1993
 High $ 23.25 $ 25.00 $ 28.25
 Low 19.25 21.75 22.88
 Period End Close 23.00 24.50 27.75
 Price/Earnings Multiple(6) 15.6x 16.0x 17.2x
 Price/Book Multiple (7) 1.5x 1.6x 1.8x
 Dec. 31,
 1993 1992
 Total Assets $2,687,317 $2,297,220
 Net Loans (1) 1,589,326 1,457,242
 Reserve for Loan Losses 21,654 21,335
 Deposits and Repurchase
 Agreements 2,445,130 2,073,991
 Stockholders' Equity 199,947 188,799
 Book Value per Share 16.37 15.15
 CAPITAL RATIOS:
 Stockholders' Equity to
 Total Assets 7.44% 8.22%
 Stockholders' Equity to
 Net Loans 12.58% 12.96%
 Tier 1 Capital to Risk-
 Based Assets 9.89% 10.67%
 Total Capital to Risk-
 Based Assets 11.08% 11.92%
 Leverage Ratio 6.89% 7.51%
 CREDIT QUALITY: Dec. 31,
 1993 1992
 Nonaccrual Loans $ 7,415 $ 8,145
 Renegotiated Loans 997 4,071
 Foreclosed Real Estate 16,621 26,856
 Loans Past Due 90 Days
 and Still Accruing 5,894 7,380
 Nonperforming Loans (2)
 to Net Loans 0.53% 0.84%
 Nonperforming Assets (3)
 to Net Loans Plus
 Foreclosed Real Estate 1.56% 2.63%
 Reserve for Loan Losses
 to Net Loans 1.36% 1.46%
 Reserve for Loan Losses
 to Nonperforming Loans 257.42% 174.65%
 Net Loan Charge-Offs (4)
 to Average Net Loans 0.73% 1.05%
 Net Loan Charge-Offs (5) $ 11,113 $ 14,755
 STOCK PERFORMANCE: Years Ended Dec. 31,
 Stock Prices: 1993 1992
 High $ 28.25 $ 20.25
 Low 19.25 !14.25
 Period End 25.25 19.50
 Price/Earnings Multiple(6) 15.0x 13.6x
 Price/Book Multiple (7) 1.5x 1.3x
 (1) Net Loans equal Total Loans Net of Unearned Interest.
 (2) Nonperforming Loans equals Nonaccrual Loans plus Renegotiated
 Loans.
 (3) Nonperforming Assets equal Nonperforming Loans plus Foreclosed
 Real Estate.
 (4) Net Loan Charge-offs are Annualized on a Year-to-Date Basis.
 (5) Net Loan Charge-offs are presented on a Year-to-Date Basis.
 (6) Based on Period End Close Stock Prices and Most Recent
 12-month Net Income Per Share.
 (7) Based on Period End Close Stock Prices and Book Value
 Per Share.
 -0- 1/13/94
 /CONTACT: James Roolf of First Midwest, 708-778-8700/
 (FMBI)


CO: First Midwest Bancorp, Inc. ST: Illinois IN: FIN SU: ERN

SP -- NY080 -- 1816 01/13/94 15:03 EST
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