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FIRST MIDWEST BANCORP REPORTS SECOND QUARTER EARNINGS

 FIRST MIDWEST BANCORP REPORTS SECOND QUARTER EARNINGS
 NAPERVILLE, Ill., July 15 /PRNewswire/ -- First Midwest Bancorp,


Inc. (NASDAQ-NMS: FMBI) today reported second quarter net income of $4.4 million or $0.35 per share as compared to last year's second quarter performance of $4.7 million or $0.37 per share. Down modestly from last year's like quarter, earnings for the quarter just ended compared favorably with the $4.3 million or $0.34 per share earned in the first quarter of the year and the $4.1 million or $0.33 per share earned in the fourth quarter of 1991.
 Positively impacting the second quarter's performance as compared to last year's like quarter were lower levels of provisions for loan losses of $4.3 million vs. $4.8 million, improved other operating income of $5.4 million vs. $5.0 million and higher security gains of $2.6 million vs. $180,000. Negatively impacting performance were lower tax equivalent net interest income of $23.8 million vs. $24.9 million (even while the tax equivalent net interest margin remained the same at 4.55 percent for both quarters) and higher other operating expenses of $20.4 million vs. $18.9 million.
 For the first six months of the year net income totalled $8.7 million or $0.69 per share as compared to last year's like period of $8.9 million or $0.71 per share. Comparing the performance of the six months just concluded with that of the like period of last year, positively contributing were higher tax equivalent net interest income of $48.0 million vs. $47.8 million, increased other operating income of $10.9 million vs. $9.6 million and higher securities gains of $4.5 million vs. $173,000. Negatively impacting performance were higher provisions for loan losses of $8.7 million vs. $7.5 million and higher other operating expenses of $41.4 million vs. $37.4 million.
 Progress was made during the quarter in asset remediation with nonperforming (nonaccruing plus renegotiated) loans declining to $24.3 million at June 30 from $29.2 million at March 31 resulting in a nonperforming loan ratio at June 30 of 1.73 percent as compared to 2.08 percent at March 31. Partially offsetting the improvement in nonperforming loans was an increase during the quarter in foreclosed real estate to $27.4 million at June 30 from $25.1 million at March 31. This resulted in total nonperforming assets (nonperforming loans plus foreclosed real estate) declining to $51.7 million at June 30 from $54.2 million at March 31 and a nonperforming asset ratio at June 30 of 3.62 percent vs. 3.80 percent at March 31. Additionally, improvement was achieved during the quarter in the other important category of loans past due 90 days or longer which declined to $4.5 million at June 30 from $5.9 million at March 31.
 The $6.5 million nonperforming loan described in the 1991 Annual Report and first quarter earnings release and quarterly report continues on a nonaccrual basis with valuation and contingency reserves pertaining thereto of $1 million and $500,000, respectively, being maintained. The investigation of the circumstances surrounding this situation are nearly complete and work continues with the borrower's cooperation toward a likely restructure of the entire indebtedness. It is still not possible to determine with reasonable certainty what loss, if any, may be incurred. Based upon the facts now known, however, it is believed that the reserves maintained are appropriate.
 Capital remained strong and was further strengthened during the quarter resulting in stockholders' equity, tier 1 and total capital ratios at quarter end of 7.90 percent, 10.01 percent and 11.21 percent, respectively. On both a consolidated company and individual affiliate bank basis, both tier 1 and total capital substantially exceeded federal risk based capital minimums with each affiliate bank's capital exceeding the levels recently prescribed to qualify as a "well capitalized" (the highest capitalized category) bank.
 Commenting on the quarter's performance, First Midwest Bancorp President and Chief Executive Officer Robert P. O'Meara said, "Second quarter results were generally in keeping with expectations and represented improvement over the two preceding quarters. While substantial work clearly remains, nonperforming asset remediation progress was achieved during the quarter even in the face of continued economic sluggishness. The nonperforming numbers are moving in the right direction and we anticipate further progress over the remainder of the year."
 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 6 trust offices in Northern Illinois.
 FIRST MIDWEST BANCORP, INC.
 Consolidated Highlights (unaudited)
 (in thousands, except per share data)
 BALANCE SHEET HIGHLIGHTS:
 June 30, March 31, Dec. 31,
 1992 1992 1991 1990
 Total Assets $2,317,602 $2,275,573 $2,311,402 $2,368,306
 Net Loans (A) 1,402,033 1,402,775 1,391,012 1,370,880
 Reserve for Loan Losses 19,875 21,318 20,638 17,864
 Deposits and Repurchase
 Agreements 2,109,761 2,068,177 2,064,232 2,166,676
 Stockholders' Equity 183,040 180,974 178,316 166,174
 Book Value per Share 14.67 14.46 14.23 13.25
 CAPITAL RATIOS:
 Stockholders' Equity to
 Total Assets (pct.) 7.90 7.95 7.71 7.02
 Stockholders' Equity to
 Net Loans (pct.) 13.06 12.90 12.82 12.12
 Tier 1 Capital to Risk-
 Based Assets (pct.) 10.01(B) 9.94 10.08 9.26
 Total Capital to Risk-
 Based Assets (pct.) 11.21(B) 11.24 11.38 10.21
 CREDIT QUALITY:
 June 30, March 31, Dec. 31,
 1992 1992 1991 1990
 Loans Past Due 90 Days
 and Still Accruing $ 4,542 $ 5,881 $ 7,686 $ 3,937
 Nonaccrual Loans 24,184 29,089 20,719 17,986
 Renegotiated Loans 69 71 104 1,694
 Foreclosed Real Estate 27,433 25,085 19,616 16,370
 Nonperforming Loans (C)
 to Net Loans (pct.) 1.73 2.08 1.50 1.44
 Nonperforming Assets (D)
 to Net Loans Plus Fore-
 closed Real Estate (pct.) 3.62 3.80 2.87 2.60
 Reserve for Loan Losses
 to Net Loans (pct.) 1.42 1.52 1.48 1.30
 Reserve for Loan Losses
 to Nonperforming Loans 81.95 73.11 99.11 90.77
 Net Loan Charge-Offs (E)
 to Average Net Loans 1.36 1.07 0.92 0.54
 STOCK PERFORMANCE:
 Quarters ended Years ended Dec. 31,
 June 30, March 31,
 1992 1992 1991 1990
 Market Value:
 High $ 17.00 $ 17.25 $ 20.00 $ 23.00
 Low 14.75 15.50 13.00 11.75
 Period End 15.75 16.00 16.25 14.50
 Price/Earnings
 Multiple (F) 11.3x 11.3x 11.4x 8.1x
 Price/Book Multiple (G) 1.1x 1.1x 1.1x 1.1x
 (A) Net Loans equals Total Loans Net of Unearned Interest.
 (B) Estimated.
 (C) Nonperforming Loans equals Nonaccrual Loans plus Renegotiated
 Loans.
 (D) Nonperforming Assets equals Nonperforming Loans plus Foreclosed
 Real Estate.
 (E) Net Loan Charge-offs are Annualized on a Year-to-Date Basis.
 (F) Based on Period End Stock Prices and Most Recent 12-Month Net
 Income Per Share.
 (G) Based on Period End Stock Prices and Book Value Per Share.
 INCOME STATEMENT SUMMARY:
 Quarters Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Interest Income $ 43,792 $ 53,482 $ 89,411 $ 106,807
 Tax Equivalent Adjustment 623 742 1,244 1,458
 Tax Equivalent
 Interest Income 44,415 54,224 90,655 108,265
 Interest Expense (20,610) (29,374) (42,611) (60,510)
 Tax Equivalent
 Net Interest Income 23,805 24,850 48,044 47,755
 Provision for Loan Losses (4,313) (4,769) (8,703) (7,489)
 Other Operating Income 5,416 5,033 10,947 9,621
 Investment Security Gains, Net 2,562 180 4,472 173
 Other Operating Expenses (20,354) (18,934) (41,444) (37,387)
 Tax Equivalent Income before
 Income Taxes 7,116 6,360 13,316 12,673
 Income Tax Expense (2,115) (961) (3,384) (2,297)
 Tax Equivalent Adjustment (623) (742) (1,244) (1,458)
 Adjusted Income Taxes (2,738) (1,703) (4,628) (3,755)
 NET INCOME $ 4,378 $ 4,657 $ 8,688 $ 8,918
 PER SHARE DATA:
 NET INCOME $ 0.35 $ 0.37 $ 0.69 $ 0.71
 Dividends Paid $ 0.13 $ 0.13 $ 0.26 $ 0.26
 Average Shares Outstanding 12,493 12,541 12,510 12,541
 PERFORMANCE RATIOS:
 Return on Average Equity (pct) 9.65 10.92 9.64 10.62
 Return on Average Assets (pct) 0.77 0.78 0.77 0.76
 Net Interest Margin (Tax
 Equivalent) (pct.) 4.55 4.55 4.61 4.42
 -0- 7/15/92
 /CONTACT: James M. Roolf of First Midwest Bancorp, 708-778-8700/
 (FMBI) CO: First Midwest Bancorp Inc. ST: Illinois IN: FIN SU: ERN


PS -- NY081 -- 9657 07/15/92 15:16 EDT
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