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FIRST MIDWEST BANCORP REPORTS THIRD QUARTER EARNINGS

 FIRST MIDWEST BANCORP REPORTS THIRD QUARTER EARNINGS
 NAPERVILLE, Ill., Oct. 15 /PRNewswire/ -- First Midwest Bancorp, Inc. (NASDAQ-NMS: FMBI) today reported third quarter net income of $4.5 million or $0.36 per share. The results reflect continuing improvement in performance when compared to the year's second and first quarter results of $4.4 million, or $0.35 per share, and $4.3 million or $0.34 per share, respectively. They are down modestly, however, from last year's third quarter performance of $4.8 million, or $0.38 per share.
 Comparing the performance for the quarter just ended with that of last year's like quarter, improvement was achieved in the lower provision for loan losses of $3.1 million vs. $4.0 million and in the higher other operating income of $6.1 million vs. $5.1 million. This improvement was offset, however, by lower investment securities gains of $600,000 vs. $900,000 and higher other operating expenses of $20.9 million vs. $19.3 million reflecting the continuing high costs associated with asset remediation.
 Net income for the first nine months of the year was $13.2 million, or $1.06 per share, off slightly from last year's like period of $13.7 million, or $1.09 per share. Positively impacting performance as compared to last year's like period were increases in other operating income of $17.1 million vs. $14.7 million and higher securities gains of $5.1 million vs. $1.1 million. Again, the improvement was offset by higher other operating expenses of $62.4 million vs. $56.7 million dominantly related to the costs associated with asset remediation.
 Further progress was made during the quarter in asset remediation with nonperforming loans at Sept. 30 reduced to $22.2 million or 1.57 percent of net loans down from $24.3 million or 1.73 percent at June 30 and $29.2 million or 2.08 percent at March 31. Nonperforming assets (nonperforming loans plus foreclosed real estate) improved similarly and at Sept. 30 stood at $47.2 million compared to $51.7 million and $54.2 million at June 30 and March 31, respectively.
 The investigation of the circumstances surrounding the $6.5 million nonperforming loan discussed in the 1991 Annual Report and the 1992 First and Second Quarter Reports has been concluded. Discussions continue with the borrower and its principal officer with a view to the entire indebtedness being restructured into separate loans that will be amortized over varying periods of time with the officer pledging substantial personal assets as additional collateral. It is anticipated that the actual restructuring will be completed before year end. It is not yet certain what part, if any, of the $6.5 million may be carried as nonperforming after the restructuring. The valuation and contingency reserves established in the first quarter of $1 million and $500,000, respectively, continue to be maintained. Again, it is not yet certain what part, if any, of the $1.5 million reserves may be maintained after the restructuring. Based upon the facts now known, it is believed that the reserves maintained are appropriate.
 Capital was further strengthened during the quarter resulting in stockholders' equity, Tier 1 and total capital ratios at quarter end of 8.05 percent, 10.32 percent and 11.54 percent, respectively. On both a consolidated company and individual affiliate bank basis, capital substantially exceeds recent federally prescribed minimums with each affiliate bank's capital qualifying it as a "well capitalized" (the highest category) bank.
 "The third quarter's performance demonstrates continuing improvement comparing favorably with that of both the second and first quarters of the year," said Robert P. O'Meara, First Midwest Bancorp president and chief executive officer. "Importantly, the asset quality improvements achieved during the quarter were consistent with projections."
 At $2.3 billion, First Midwest Bancorp is Illinois' fourth largest publicly traded bank holding company whose four regional banks and trust company operate 38 banking and six trust offices in northern Illinois.
 FIRST MIDWEST BANCORP, INC.
 Consolidated Highlights (unaudited)
 (in thousands, except per share data)
 BALANCE SHEET HIGHLIGHTS:
 Sept. 30, June 30, March 31, Dec. 31,
 1992 1992 1992 1991
 Total Assets $2,306,296 $2,317,602 $2,275,573 $2,311,402
 Net Loans (A) 1,413,130 1,402,033 1,402,775 1,391,012
 Reserve for Loan
 Losses 19,974 19,875 21,318 20,638
 Deposits and Repurchase
 Agreements 2,081,012 2,109,761 2,068,177 2,064,232
 Stockholders' Equity 185,756 183,040 180,974 178,316
 Book Value per Share 14.91 14.67 14.46 14.23
 CAPITAL RATIOS In Percent:
 Stockholders' Equity to
 Total Assets 8.05 7.90 7.95 7.71
 Stockholders' Equity to
 Net Loans 13.15 13.06 12.90 12.82
 Tier 1 Capital to Risk-
 Based Assets 10.32 10.01 9.94 10.08
 Total Capital to Risk-
 Based Assets 11.54 11.21 11.24 11.38
 CREDIT QUALITY: Sept. 30, June 30, March 31, Dec. 31,
 1992 1992 1992 1991
 Loans Past Due 90 Days
 and Still Accruing $ 6,915 $ 4,542 $ 5,881 $ 7,686
 Nonaccrual Loans 22,126 24,184 29,089 20,719
 Renegotiated Loans 68 69 71 104
 Foreclosed Real Estate 25,030 27,433 25,085 19,616
 Nonperforming Loans (B)
 to Net Loans (percent) 1.57 1.73 2.08 1.50
 Nonperforming Assets (C)
 to Net Loans Plus
 Foreclosed Real Estate
 (percent) 3.28 3.62 3.80 2.87
 Reserve for Loan Losses
 to Net Loans (percent) 1.41 1.42 1.52 1.48
 Reserve for Loan Losses
 to Nonperforming Loans
 (percent) 90.00 81.95 73.11 99.11
 Net Loan Charge-Offs (E)
 to Average Net Loans
 (percent) 1.20 1.36 1.07 0.92
 STOCK PERFORMANCE: Quarters Ended Year
 ended
 Sept. 30, June 30, March 31, Dec. 31,
 1992 1992 1992 1991
 Market Value:
 High $ 18.00 $ 17.00 $ 17.25 $ 20.00
 Low 14.25 14.75 15.50 13.00
 Period End 17.00 15.75 16.00 16.25
 Price/Earnings
 Multiple (E) 12.2x 11.3x 11.3x 11.4x
 Price/Book Multiple (F) 1.1x 1.1x 1.1x 1.1x
 (A) Net Loans equals Total Loans Net of Unearned Interest.
 (B) Nonperforming Loans equals Nonaccrual Loans plus Renegotiated Loans.
 (C) Nonperforming Assets equals Nonperforming Loans + Foreclosed Real Estate.
 (D) Net Loan Charge-offs are Annualized on a Year-to-Date Basis.
 (E) Based on Period End Stock Prices and Most Recent 12-month Net Income Per Share.
 (F) Based on Period End Stock Prices and Book Value Per Share.
 INCOME STATEMENT SUMMARY:
 Quarters Ended 9 Months Ended
 Sept. 30 Sept. 30
 1992 1991 1992 1991
 Interest Income $ 42,261 $ 51,917 $131,672 $158,724
 Tax Equivalent Adjustment 568 713 1,812 2,171
 Tax Equiv. Interest Income 42,829 52,630 133,484 160,895
 Interest Expense (18,410) (27,889) (61,021) (88,399)
 Tax Equiv. Net Interest Inc. 24,419 24,741 72,463 72,496
 Provision for Loan Losses (3,149) (3,985) (11,852) (11,474)
 Other Operating Income 6,122 5,060 17,069 14,681
 Investment Security Gains, Net 629 878 5,101 1,051
 Other Operating Expenses (20,946) (19,315) (62,390) (56,702)
 Tax Equivalent Income before
 Income Taxes 7,075 7,379 20,391 20,052
 Income Tax Expense (1,963) (1,900) (5,347) (4,197)
 Tax Equivalent Adjustment (568) (713) (1,812) (2,171)
 Adjusted Income Taxes (2,531) (2,613) (7,159) (6,368)
 NET INCOME $ 4,544 $ 4,766 $ 13,232 $ 13,684
 PER SHARE DATA:
 NET INCOME $ 0.36 $ 0.38 $ 1.06 $ 1.09
 Dividends Paid $ 0.13 $ 0.13 $ 0.39 $ 0.39
 Average Shares Outstanding 12,465 12,541 12,494 12,541
 PERFORMANCE RATIOS (in percent):
 Return on Average Equity 9.79 10.86 9.69 10.70
 Return on Average Assets 0.78 0.80 0.77 0.77
 Net Interest Margin (Tax
 Equivalent) 4.60 4.52 4.61 4.45
 -0- 10/15/92
 /CONTACT: James Roolf of First Midwest, 708-778-8700/
 (FMBI) CO: First Midwest Bancorp, Inc. ST: Illinois IN: FIN SU: ERN


PS -- NY089 -- 0560 10/15/92 15:26 EDT
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Date:Oct 15, 1992
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