First Midwest Bancorp, Inc. Announces 2016 First Quarter Results
/EINPresswire.com/ -- ITASCA, IL -- (Marketwired) -- 04/19/16 -- First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (NASDAQ: FMBI), the holding company of First Midwest Bank (the "Bank"), today reported results of operations and financial condition for the first quarter of 2016. Net income for the first quarter of 2016 was $18.0 million, or $0.23 per share. This compares to $19.9 million, or $0.26 per share, for the first quarter of 2015, and $16.3 million, or $0.21 per share, for the fourth quarter of 2015. Performance for the first quarter of 2016 and fourth quarter of 2015 were impacted by acquisition and integration related pre-tax expenses of $5.0 million and $1.4 million, respectively. In addition, property valuation pre-tax adjustments of $8.6 million were recorded in the fourth quarter of 2015 as a result of strategic branch initiatives. Excluding these expenses, earnings per share was $0.27 for the first quarter of 2016 compared to $0.26 for the first quarter of 2015 and $0.29 for the fourth quarter of 2015.
SELECT FIRST QUARTER HIGHLIGHTS
-
Increased earnings per share to $0.27, up 4% from the first quarter of 2015, excluding acquisition and integration related expenses.
-
Expanded net interest margin to 3.66%, up 7 basis points, and period end interest-earning assets, up 10%, from the fourth quarter 2015.
-
Grew fee-based revenues to $34 million, an increase of 17% from the first quarter of 2015 and consistent with the fourth quarter of 2015.
-
Increased total loans to $7.8 billion, up 15% from March 31, 2015 and 9% from December 31, 2015.
-
Reduced non-performing assets to $69 million, down 15% from March 31, 2015.
-
Decreased net loan charge-offs to average loans, annualized, to 22 basis points for the first quarter of 2016, down 56% from the first quarter of 2015.
-
Consummated The National Bank & Trust Company of Sycamore transaction on March 8, 2016, adding $680 million in assets and $700 million in trust assets under management.
"Performance for the quarter was solid, reflecting consistent execution across our business lines," said Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc. "Our core earnings per share improved by 4% to $0.27 as compared to first quarter 2015, benefiting from earning asset and revenue growth as well as controlled operating expenses. Our acquisition of The National Bank & Trust Company of Sycamore significantly strengthened our balance sheet and expanded our wealth management presence, further adding to our underlying business momentum."
Mr. Scudder concluded, "A broadly slowing global economy has added uncertainty to market expectations as to the size and pace of further changes in interest rates. Against this backdrop, our priorities remain focused on strengthening our lines of business and efficiently growing and diversifying revenues. As we look ahead, we remain focused on helping our clients achieve financial success. It is this relationship centered focus combined with our strong capital foundation that leaves us well positioned to pursue opportunities to grow and perform for our shareholders."
RECENT EVENTS
The National Bank & Trust Company of Sycamore
On March 8, 2016, the Company consummated the acquisition of NI Bancshares Corporation ("NI Bancshares"), the holding company for The National Bank & Trust Company of Sycamore. With the acquisition, the Company obtained ten banking offices in northern Illinois, and added approximately $400 million in loans and $600 million in deposits. In addition, the Company acquired over $700 million in trust assets under management, which increased the Company's trust assets under management by approximately 10%. The merger consideration totaled $70.1 million and consisted of $54.9 million in Company common stock and $15.2 million in cash. The conversion of operating systems is substantially complete.
OPERATING PERFORMANCE
Net Interest Income and Margin Analysis
(Dollar amounts in thousands)
Quarters Ended
--------------------------------------------------------
March 31, 2016 December 31, 2015
--------------------------- ---------------------------
Interest Yield Interest Yield
Average Earned/ /Rate Average Earned/ /Rate
Balance Paid (%) Balance Paid (%)
----------- -------- ----- ----------- -------- -----
Assets:
Other interest-
earning assets $ 241,645 $ 342 0.57 $ 587,112 $ 530 0.36
Securities (1) 1,495,462 9,998 2.67 1,260,167 9,855 3.13
Federal Home Loan
Bank ("FHLB") and
Federal Reserve
Bank ("FRB") stock 39,773 159 1.60 38,926 371 3.81
Loans (1)(2) 7,346,035 79,356 4.34 7,013,586 76,405 4.32
----------- -------- ----- ----------- -------- -----
Total interest-
earning assets
(1) 9,122,915 89,855 3.96 8,899,791 87,161 3.89
-------- ----- -------- -----
Cash and due from
banks 133,268 131,589
Allowance for loan
and covered loan
losses (75,654) (74,823)
Other assets 876,316 865,873
----------- -----------
Total assets $10,056,845 $ 9,822,430
=========== ===========
Liabilities and
Stockholders'
Equity:
Interest-bearing
core deposits (3) $ 4,607,738 948 0.08 $ 4,471,645 930 0.08
Time deposits 1,183,463 1,437 0.49 1,152,895 1,341 0.46
Borrowed funds 303,232 1,316 1.75 167,120 1,250 2.97
Senior and
subordinated debt 201,253 3,133 6.26 201,168 3,134 6.18
----------- -------- ----- ----------- -------- -----
Total interest-
bearing
liabilities 6,295,686 6,834 0.44 5,992,828 6,655 0.44
-------- ----- -------- -----
Demand deposits (3) 2,463,017 2,560,604
----------- -----------
Total funding
sources 8,758,703 8,553,432
Other liabilities 119,554 114,492
Stockholders'
equity - common 1,178,588 1,154,506
----------- -----------
Total
liabilities
and
stockholders'
equity $10,056,845 $ 9,822,430
=========== ===========
Tax-equivalent net
interest
income/margin (1) 83,021 3.66 80,506 3.59
===== =====
Tax-equivalent
adjustment (2,307) (2,494)
-------- --------
Net interest
income (GAAP) $ 80,714 $ 78,012
======== ========
Quarters Ended
---------------------------
March 31, 2015
---------------------------
Interest Yield
Average Earned/ /Rate
Balance Paid (%)
----------- -------- -----
Assets:
Other interest-
earning assets $ 522,232 $ 398 0.31
Securities (1) 1,218,117 10,411 3.42
Federal Home Loan
Bank ("FHLB") and
Federal Reserve
Bank ("FRB") stock 37,822 357 3.78
Loans (1)(2) 6,740,399 74,186 4.46
----------- -------- -----
Total interest-
earning assets
(1) 8,518,570 85,352 4.06
-------- -----
Cash and due from
banks 124,730
Allowance for loan
and covered loan
losses (73,484)
Other assets 891,925
-----------
Total assets $ 9,461,741
===========
Liabilities and
Stockholders'
Equity:
Interest-bearing
core deposits (3) $ 4,313,802 927 0.09
Time deposits 1,266,562 1,598 0.51
Borrowed funds 127,571 18 0.06
Senior and
subordinated debt 200,910 3,144 6.35
----------- -------- -----
Total interest-
bearing
liabilities 5,908,845 5,687 0.39
-------- -----
Demand deposits (3) 2,312,431
-----------
Total funding
sources 8,221,276
Other liabilities 125,703
Stockholders'
equity - common 1,114,762
-----------
Total
liabilities
and
stockholders'
equity $ 9,461,741
===========
Tax-equivalent net
interest
income/margin (1) 79,665 3.79
=====
Tax-equivalent
adjustment (2,883)
--------
Net interest
income (GAAP) $ 76,782
========
(1) Interest income and yields on tax-exempt securities and loans are
presented on a tax-equivalent basis, assuming a federal income tax rate
of 35%. This non-GAAP financial measure assists management in comparing
revenue from both taxable and tax-exempt sources. The corresponding
income tax impact related to tax-exempt items is recorded in income tax
expense. These adjustments have no impact on net income.
(2) Includes loans acquired through Federal Deposit Insurance Corporation
("FDIC")-assisted transactions subject to loss sharing agreements
("covered loans"), which totaled $28.4 million, $30.8 million, and
$62.8 million at March 31, 2016, December 31, 2015, and March 31, 2015,
respectively.
(3) See the Deposit Composition table for further average balance detail by
category.
For the first quarter of 2016, total average interest-earning assets rose $223.1 million from the fourth quarter of 2015 and $604.3 million from the first quarter of 2015. The increase from both prior periods was driven by organic loan growth, purchased securities, and assets acquired in the NI Bancshares transaction during first quarter of 2016.
Average funding sources increased by $205.3 million from the fourth quarter of 2015 and $537.4 million from the first quarter of 2015. Compared to both prior periods presented, the increase resulted primarily from deposits acquired from both the NI Bancshares transaction late in the first quarter of 2016 and the Peoples Bancorp, Inc. ("Peoples") transaction late in the fourth quarter of 2015, and the addition of $262.5 million of FHLB advances during the first quarter of 2016.
Tax-equivalent net interest margin for the current quarter was 3.66%, growing 7 basis points from the fourth quarter of 2015 and decreasing 13 basis points from the first quarter of 2015. Compared to the fourth quarter of 2015, the increase in tax-equivalent net interest margin was due primarily to the reinvestment of other interest-earning assets into higher yielding loans and securities. Tax-equivalent net interest margin decreased compared to the first quarter of 2015 due primarily to lower accretion on acquired loans, lower covered loan income, and the continued shift to floating rate loans, which more than offset the redeployment of other interest-earning assets into higher yielding loans and securities.
Net interest income increased by 3.5% and 5.1% from the fourth and first quarters of 2015, respectively, reflecting the increase in average loans of 4.7% and 9.0% from the same periods, respectively.
Acquired loan accretion contributed $1.4 million, $1.3 million, and $2.3 million to net interest income for the first quarter of 2016, the fourth quarter of 2015, and the first quarter of 2015, respectively.
Fee-based Revenues and Total Noninterest Income Analysis
(Dollar amounts in thousands)
March 31, 2016
Quarters Ended Percent Change from
---------------------------------- ------------------------
March 31, December 31, March 31, December 31, March 31,
2016 2015 2015 2015 2015
---------- ------------ ---------- ------------ ----------
Service charges
on deposit
accounts $ 9,473 $ 10,303 $ 9,271 (8.1) 2.2
Wealth
management
fees 7,559 7,493 7,014 0.9 7.8
Card-based fees 6,718 6,761 6,402 (0.6) 4.9
Merchant
servicing fees 3,028 2,929 2,665 3.4 13.6
Mortgage
banking income 1,368 1,777 1,123 (23.0) 21.8
Other service
charges,
commissions,
and fees 5,448 4,664 2,166 16.8 151.5
---------- ------------ ---------- ------------ ----------
Total fee-
based
revenues 33,594 33,927 28,641 (1.0) 17.3
Other income 1,445 1,729 1,948 (16.4) (25.8)
Net securities
gains 887 822 512 7.9 73.2
---------- ------------ ---------- ------------ ----------
Total
noninterest
income $ 35,926 $ 36,478 $ 31,101 (1.5) 15.5
========== ============ ========== ============ ==========
Total fee-based revenues of $33.6 million decreased 1.0% from the fourth quarter of 2015 and grew 17.3% compared to the first quarter of 2015, reflecting growth across all categories. Compared to the fourth quarter of 2015, growth in income resulted primarily from the sales of capital market products within other service charges, commissions, and fees and from services provided to customers acquired from the NI Bancshares transaction late in the first quarter of 2016. These increases were offset by the normal seasonal decline in service charges on deposit accounts and the reduction in mortgage banking income.
Continued sales of fiduciary and investment advisory services to new and existing customers drove the rise in wealth management fees compared to the first quarter of 2015. In addition, the NI Bancshares transaction, which added approximately $700.0 million in trust assets under management, contributed approximately $260,000 to wealth management fees in the first quarter of 2016.
Mortgage banking income resulted from sales of $38.7 million of 1-4 family mortgage loans in the secondary market during the first quarter of 2016, compared to $51.4 million in the fourth quarter of 2015 and $34.5 million in the first quarter of 2015.
The increases in other service charges, commissions, and fees compared to both prior periods presented were primarily due to the sales of capital market products to commercial clients. Gains realized on the sale of equipment financing contracts originated by First Midwest Equipment Finance also drove the increase compared to the first quarter of 2015.
Total noninterest income of $35.9 million was consistent with the fourth quarter of 2015 and increased 15.5% from the first quarter of 2015.
Noninterest Expense Analysis
(Dollar amounts in thousands)
March 31, 2016
Quarters Ended Percent Change from
---------------------------------- -----------------------
March 31, December 31, March 31, December 31, March 31,
2016 2015 2015 2015 2015
---------- ------------ ---------- ------------ ----------
Salaries and
employee
benefits:
Salaries and
wages $ 36,296 $ 34,295 $ 32,794 5.8 10.7
Retirement and
other
employee
benefits. 8,298 8,925 7,922 (7.0) 4.7
---------- ------------ ---------- ------------ ----------
Total
salaries
and
employee
benefits 44,594 43,220 40,716 3.2 9.5
---------- ------------ ---------- ------------ ----------
Net occupancy
and equipment
expense 9,697 9,256 10,436 4.8 (7.1)
Professional
services 5,920 6,117 5,109 (3.2) 15.9
Technology and
related costs 3,701 3,694 3,687 0.2 0.4
Merchant card
expense 2,598 2,495 2,197 4.1 18.3
Advertising and
promotions 1,589 2,211 1,223 (28.1) 29.9
Cardholder
expenses 1,359 1,329 1,268 2.3 7.2
Net other real
estate owned
("OREO")
expense 664 926 1,204 (28.3) (44.9)
Other expenses 7,447 7,525 6,817 (1.0) 9.2
---------- ------------ ---------- ------------ ----------
Total
noninterest
expense
excluding
certain
significant
transactions
(1) 77,569 76,773 72,657 1.0 6.8
Acquisition and
integration
related
expenses 5,020 1,389 -- 261.4 N/M
Property
valuation
adjustments -- 8,581 -- N/M --
---------- ------------ ---------- ------------ ----------
Total
noninterest
expense $ 82,589 $ 86,743 $ 72,657 (4.8) 13.7
========== ============ ========== ============ ==========
Efficiency ratio
(2) 64.8% 65.1% 64.5%
N/M - Not meaningful.
(1) In management's view, total noninterest expense excluding certain
significant transactions are meaningful to the Company, as well as
analysts and investors, in assessing the Company's operating expenses
and facilitating comparisons with the prior periods presented.
(2) The efficiency ratio expresses noninterest expense, excluding OREO
expense, as a percentage of tax-equivalent net interest income plus
total fee-based revenues, other income, and tax-equivalent adjusted
bank-owned life insurance ("BOLI") income. In addition, acquisition and
integration related expenses of $5.0 million are excluded from the
efficiency ratio for the first quarter of 2016. For the fourth quarter
of 2015, property valuation adjustments of $8.6 million and acquisition
and integration related expenses of $1.4 million are excluded from the
efficiency ratio. See the accompanying Non-GAAP Reconciliations for
details on the calculation of the efficiency ratio.
Total noninterest expense increased by 1.0% from the fourth quarter of 2015 and 6.8% compared to the first quarter of 2015, excluding acquisition and integration related expenses and property valuation adjustments. The increase compared to the first quarter of 2015 was driven primarily by salaries and employee benefits and professional services costs associated with merit increases and organizational growth needs, as well as the acquisitions of Peoples and NI Bancshares.
Compared to both prior periods presented, total noninterest expense was impacted by the costs of operating the 10 banking locations acquired in the NI Bancshares transaction late in the first quarter of 2016, and the full quarter impact of the 2 banking locations acquired in the Peoples transaction late in the fourth quarter of 2015. These costs primarily occurred within salaries and employee benefits expense and other expenses.
During the fourth quarter of 2015, property valuation adjustments of $8.6 million were recognized on twelve closed branches and seven parcels of land as part of the Company's strategic branch initiatives.
LOAN PORTFOLIO AND ASSET QUALITY
Loan Portfolio Composition
(Dollar amounts in thousands)
As Of
-------------------------------------------------------
March 31, 2016
-------------------------------
Acquired December 31, March 31,
Legacy (1) Total 2015 2015
---------- --------- ---------- ------------ ----------
Commercial and
industrial $2,584,800 $ 49,591 $2,634,391 $ 2,524,726 $2,318,058
Agricultural 393,131 29,100 422,231 387,440 368,836
Commercial real
estate:
Office, retail,
and industrial. 1,457,692 108,703 1,566,395 1,395,454 1,443,562
Multi-family 520,277 41,788 562,065 528,324 560,800
Construction 258,546 2,197 260,743 216,882 191,104
Other commercial
real estate 977,335 82,967 1,060,302 931,190 881,026
---------- --------- ---------- ------------ ----------
Total
commercial
real estate 3,213,850 235,655 3,449,505 3,071,850 3,076,492
---------- --------- ---------- ------------ ----------
Total corporate
loans 6,191,781 314,346 6,506,127 5,984,016 5,763,386
---------- --------- ---------- ------------ ----------
Home equity 668,527 14,644 683,171 653,468 599,543
1-4 family
mortgages 370,457 20,430 390,887 355,854 285,758
Installment 167,578 46,401 213,979 137,602 92,834
---------- --------- ---------- ------------ ----------
Total consumer
loans 1,206,562 81,475 1,288,037 1,146,924 978,135
---------- --------- ---------- ------------ ----------
Covered loans 28,391 -- 28,391 30,775 62,830
---------- --------- ---------- ------------ ----------
Total loans $7,426,734 $ 395,821 $7,822,555 $ 7,161,715 $6,804,351
========== ========= ========== ============ ==========
March 31, 2016
Percent Change From
-----------------------
December 31, March 31,
2015 2015
------------ ---------
Commercial and
industrial 4.3 13.6
Agricultural 9.0 14.5
Commercial real
estate:
Office, retail,
and industrial. 12.2 8.5
Multi-family 6.4 0.2
Construction 20.2 36.4
Other commercial
real estate 13.9 20.3
------------ ---------
Total
commercial
real estate 12.3 12.1
------------ ---------
Total corporate
loans 8.7 12.9
------------ ---------
Home equity 4.5 13.9
1-4 family
mortgages 9.8 36.8
Installment 55.5 130.5
------------ ---------
Total consumer
loans 12.3 31.7
------------ ---------
Covered loans (7.7) (54.8)
------------ ---------
Total loans 9.2 15.0
============ =========
(1) Amount represents loans acquired in the NI Bancshares transaction which
was completed late in the first quarter of 2016.
Excluding loans acquired in the NI Bancshares transaction of $395.8 million, total loans grew by 3.7% from December 31, 2015 and 9.1% from March 31, 2015. Compared to December 31, 2015, loan growth was driven primarily by strong sales production from the corporate and consumer lending teams. Overall, the mix of loans remained consistent with both prior periods presented.
Compared to both prior periods presented, growth in corporate loans reflects the strong sales performance across diversified commercial real estate categories, as well as the continued expansion into select sector-based lending areas such as healthcare, structured finance, asset-based lending, and equipment financing. The rise in consumer loans compared to both prior periods presented reflects the continued expansion of online installment lending channels, as well as the addition of shorter-duration, floating rate home equity loans and 1-4 family mortgages.
Asset Quality
(Dollar amounts in thousands)
March 31, 2016
As of Percent Change from
---------------------------------- -----------------------
March 31, December 31, March 31, December 31, March 31,
2016 2015 2015 2015 2015
--------- ------------ --------- ------------ ---------
Asset quality,
excluding
covered loans
and covered
OREO
Non-accrual
loans $ 31,383 $ 28,875 $ 48,077 8.7 (34.7)
90 days or more
past due loans 5,483 2,883 3,564 90.2 53.8
--------- ------------ --------- ------------ ---------
Total non-
performing
loans 36,866 31,758 51,641 16.1 (28.6)
Accruing
troubled debt
restructurings
("TDRs") 2,702 2,743 3,581 (1.5) (24.5)
OREO 29,238 27,349 26,042 6.9 12.3
--------- ------------ --------- ------------ ---------
Total non-
performing
assets $ 68,806 $ 61,850 $ 81,264 11.2 (15.3)
========= ============ ========= ============ =========
30-89 days past
due loans $ 29,826 $ 16,329 $ 18,631
Non-accrual
loans to total
loans 0.40% 0.40% 0.71%
Non-performing
loans to total
loans 0.47% 0.45% 0.77%
Non-performing
assets to
total loans
plus OREO 0.88% 0.86% 1.20%
Allowance for
Credit Losses
Allowance for
loan losses $ 77,150 $ 73,630 $ 70,990
Reserve for
unfunded
commitments 1,225 1,225 1,816
--------- ------------ ---------
Total
allowance
for credit
losses $ 78,375 $ 74,855 $ 72,806
========= ============ =========
Allowance for
credit losses
to total loans
(1) 1.00% 1.05% 1.07%
Allowance for
credit losses
to loans,
excluding
acquired loans 1.11% 1.11% 1.19%
Allowance for
credit losses
to non-accrual
loans,
excluding
covered loans 244.74% 253.57% 139.62%
(1) This ratio includes acquired loans that are recorded at fair value
through an acquisition adjustment, which incorporates credit risk as of
the acquisition date with no allowance for credit losses being
established at that time. As the acquisition adjustment is accreted
into income over future periods, an allowance for credit losses on
acquired loans is established as necessary to reflect credit
deterioration.
Total non-performing assets represented 0.88% of total loans and OREO at March 31, 2016, consistent with 0.86% at December 31, 2015 and down from 1.20% at March 31, 2015.
Loans 30-89 days past due to total loans was 0.38% at March 31, 2016 compared to 0.23% and 0.28% at December 31, 2015 and March 31, 2015, respectively. The increase in loans 30-89 days past due compared to the fourth quarter of 2015 was driven primarily by normal fluctuations and loans acquired in the NI Bancshares transaction that are currently in the process of renewal.
Charge-Off Data
(Dollar amounts in thousands)
Quarters Ended
------------------------------------------------------
March 31, % of December 31, % of March 31, % of
2016 Total 2015 Total 2015 Total
--------- ----- ------------ ----- --------- -----
Net loan charge-offs
(1):
Commercial and
industrial $ 1,396 34.3 $ 1,781 52.8 $ 6,657 80.6
Agricultural -- -- -- -- -- --
Office, retail,
and industrial 421 10.3 267 7.9 (166) (2.0)
Multi-family 179 4.4 (27) (0.8) 24 0.3
Construction 111 2.7 105 3.2 (17) (0.2)
Other commercial
real estate 1,294 31.8 110 3.3 1,051 12.7
Consumer 672 16.5 1,134 33.6 479 5.8
Covered -- -- -- -- 228 2.8
--------- ----- ------------ ----- --------- -----
Total net loan
charge-offs $ 4,073 100.0 $ 3,370 100.0 $ 8,256 100.0
========= ===== ============ ===== ========= =====
Net loan charge-offs
to average loans,
annualized 0.22% 0.19% 0.50%
(1) Amounts represent charge-offs, net of recoveries.
DEPOSIT PORTFOLIO
Deposit Composition
(Dollar amounts in thousands)
March 31, 2016
Average for Quarters Ended Percent Change from
---------------------------------- -----------------------
March 31, December 31, March 31, December 31, March 31,
2016 2015 2015 2015 2015
---------- ------------ ---------- ------------ ---------
Demand deposits $2,463,017 $ 2,560,604 $2,312,431 (3.8) 6.5
Savings deposits 1,575,174 1,483,962 1,426,546 6.1 10.4
NOW accounts 1,448,666 1,411,425 1,365,494 2.6 6.1
Money market
accounts 1,583,898 1,576,258 1,521,762 0.5 4.1
---------- ------------ ---------- ------------ ---------
Core deposits 7,070,755 7,032,249 6,626,233 0.5 6.7
Time deposits
and other 1,183,463 1,152,895 1,266,562 2.7 (6.6)
---------- ------------ ---------- ------------ ---------
Total
deposits $8,254,218 $ 8,185,144 $7,892,795 0.8 4.6
========== ============ ========== ============ =========
Average core deposits of $7.1 billion for the first quarter of 2016 increased by 0.5% and 6.7% compared to the fourth quarter of 2015 and the first quarter of 2015, respectively. The rise in average core deposits compared to the fourth quarter of 2015 resulted primarily from $443.1 million in core deposits assumed in the NI Bancshares transaction, which contributed $110.0 million to average core deposits as the transaction was completed late in the first quarter of 2016. This increase more than offset the normal seasonal decline in commercial deposits. Compared to the first quarter of 2015, the rise in average core deposits was driven by growth, the NI Bancshares transaction, and the full quarter impact of deposits assumed in the December of 2015 Peoples acquisition.
CAPITAL MANAGEMENT
Capital Ratios
As of
----------------------------------------
March 31, December 31, March 31,
2016 2015 2015
------------ ------------ ------------
Company regulatory capital ratios:
Total capital to risk-weighted
assets 10.64% 11.15% 11.23%
Tier 1 capital to risk-weighted
assets 9.81% 10.28% 10.35%
Tier 1 common capital to risk-
weighted assets 9.30% 9.73% 9.79%
Tier 1 leverage to average
assets 9.56% 9.40% 9.32%
Company tangible common equity
ratios (1)(2):
Tangible common equity to
tangible assets 8.25% 8.59% 8.54%
Tangible common equity,
excluding other comprehensive
loss, to tangible assets 8.39% 8.89% 8.68%
Tangible common equity to risk-
weighted assets 9.04% 9.29% 9.51%
(1) Ratio is not subject to formal Federal Reserve regulatory guidance.
(2) Tangible common equity ("TCE") represents common stockholders' equity
less goodwill and identifiable intangible assets. In management's view,
Tier 1 common capital and TCE measures are meaningful to the Company,
as well as analysts and investors, in assessing the Company's use of
equity and in facilitating comparisons with competitors. See the
accompanying Non-GAAP Reconciliations for details of the calculation of
these ratios.
Compared to both prior year periods presented, the Company's regulatory capital ratios related to end-of-period risk-weighted assets decreased due to organic loan growth and the NI Bancshares acquisition completed late in the first quarter of 2016.
The Board of Directors approved a quarterly cash dividend of $0.09 per common share during the first quarter of 2016, which is consistent with the quarterly dividend paid to shareholders in the fourth quarter of 2015 and follows a dividend increase from $0.08 to $0.09 per common share during the first quarter of 2015.
Conference Call
A conference call to discuss the Company's results, outlook, and related matters will be held on Wednesday, April 20, 2016 at 11:00 A.M. (ET). Members of the public who would like to listen to the conference call should dial (877) 507-0639 (U.S. domestic) or (412) 317-6003 (International) and ask for the First Midwest Bancorp, Inc. Earnings Conference Call. The number should be dialed 10 to 15 minutes prior to the start of the conference call. There is no charge to access the call. The conference call will also be accessible as an audio webcast through the Investor Relations section of the Company's website, www.firstmidwest.com/investorrelations. For those unable to listen to the live broadcast, a replay will be available on the Company's website or by dialing (877) 344-7529 (U.S. domestic) or (412) 317-0088 (International) conference ID 10084141 beginning one hour after completion of the live call until 9:00 A.M. (ET) on April 28, 2016. Please direct any questions regarding obtaining access to the conference call to First Midwest Bancorp, Inc. Investor Relations, via e-mail, at investor.relations@firstmidwest.com.
Press Release and Additional Information Available on Website
This press release and the accompanying unaudited Selected Financial Information are available through the "Investor Relations" section of First Midwest's website at www.firstmidwest.com/investorrelations.
Forward-Looking Statements
This press release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of words such as "may," "might," "will," "would," "should," "could," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "probable," "potential," "possible," "target," "continue," "look forward," or "assume" and words of similar import. Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and events may differ, possibly materially, from the anticipated results or events indicated in these forward-looking statements. Forward-looking statements are not guarantees of future performance, and we caution you not to place undue reliance on these statements. Forward-looking statements are made only as of the date of this press release, and we undertake no obligation to update any forward-looking statements contained in this press release to reflect new information or events or conditions after the date hereof.
Forward-looking statements may be deemed to include, among other things, statements relating to our future financial performance, the performance of our loan or securities portfolio, the expected amount of future credit reserves or charge-offs, corporate strategies or objectives, anticipated trends in our business, regulatory developments, acquisition transactions, including estimated synergies, cost savings and financial benefits of pending or consummated transactions, and growth strategies, including possible future acquisitions. These statements are subject to certain risks, uncertainties and assumptions. For a discussion of these risks, uncertainties and assumptions, you should refer to the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2015, as well as our subsequent filings made with the Securities and Exchange Commission. However, these risks and uncertainties are not exhaustive. Other sections of such reports describe additional factors that could adversely impact our business and financial performance.
Non-GAAP Financial Information
The Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practice within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company's operating performance. Although intended to enhance investors' understanding of the Company's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. See the following reconciliations for details on the calculation of these measures to the extent presented herein.
About the Company
First Midwest is a relationship-focused financial institution and one of the largest independent bank holding companies based in the Midwest. First Midwest's principal subsidiary, First Midwest Bank, and its affiliates provide a full range of commercial, retail, wealth management, trust, and private banking products and services through over 110 locations in metropolitan Chicago, northwest Indiana, central and western Illinois, and eastern Iowa. First Midwest's website is www.firstmidwest.com.
Accompanying Unaudited Selected Financial Information
Consolidated Statements of Financial Condition (Unaudited)
(Dollar amounts in thousands)
As of
-----------------------------------------------------------
December September
March 31, 31, 30, June 30, March 31,
2016 2015 2015 2015 2015
----------- ----------- ----------- ----------- -----------
Period-End
Balance Sheet
Assets
Cash and due
from banks $ 135,049 $ 114,587 $ 125,279 $ 135,546 $ 126,450
Interest-
bearing
deposits in
other banks 171,312 266,615 822,264 811,287 492,607
Trading
securities, at
fair value 17,408 16,894 17,038 18,172 18,374
Securities
available-for-
sale, at fair
value 1,625,579 1,306,636 1,151,418 1,142,407 1,151,603
Securities
held-to-
maturity, at
amortized cost 21,051 23,152 23,723 24,292 25,861
FHLB and FRB
stock 40,916 39,306 38,748 38,748 38,748
Loans:
Commercial
and
industrial 2,634,391 2,524,726 2,392,860 2,366,056 2,318,058
Agricultural 422,231 387,440 393,732 377,410 368,836
Commercial
real estate:
Office,
retail,
and
industrial 1,566,395 1,395,454 1,414,077 1,432,502 1,443,562
Multi-
family 562,065 528,324 539,308 557,947 560,800
Construction 260,743 216,882 192,086 190,970 191,104
Other
commercial
real
estate 1,060,302 931,190 869,748 871,119 881,026
Home equity 683,171 653,468 647,223 599,320 599,543
1-4 family
mortgages 390,887 355,854 294,261 283,562 285,758
Installment 213,979 137,602 131,185 113,382 92,834
Covered loans 28,391 30,775 51,219 57,917 62,830
----------- ----------- ----------- ----------- -----------
Total loans 7,822,555 7,161,715 6,925,699 6,850,185 6,804,351
Allowance for
loan losses (77,150) (73,630) (72,500) (71,463) (70,990)
----------- ----------- ----------- ----------- -----------
Net loans 7,745,405 7,088,085 6,853,199 6,778,722 6,733,361
OREO 29,649 27,782 32,035 28,230 33,351
Premises,
furniture, and
equipment, net 141,323 122,278 127,443 128,621 128,698
Investment in
BOLI 218,873 209,601 208,666 207,814 207,190
Goodwill and
other
intangible
assets 369,979 339,277 331,250 332,223 333,202
Accrued
interest
receivable and
other assets 212,378 178,463 203,983 216,965 209,151
----------- ----------- ----------- ----------- -----------
Total assets $10,728,922 $ 9,732,676 $ 9,935,046 $ 9,863,027 $ 9,498,596
=========== =========== =========== =========== ===========
Liabilities and
Stockholders'
Equity
Noninterest-
bearing
deposits $ 2,627,530 $ 2,414,454 $ 2,671,793 $ 2,508,316 $ 2,339,492
Interest-
bearing
deposits 6,153,288 5,683,284 5,624,657 5,704,355 5,575,187
----------- ----------- ----------- ----------- -----------
Total
deposits 8,780,818 8,097,738 8,296,450 8,212,671 7,914,679
Borrowed funds 387,411 165,096 169,943 189,036 131,200
Senior and
subordinated
debt 201,293 201,208 201,123 201,039 200,954
Accrued
interest
payable and
other
liabilities 134,835 122,366 119,861 135,324 135,813
Stockholders'
equity 1,224,565 1,146,268 1,147,669 1,124,957 1,115,950
----------- ----------- ----------- ----------- -----------
Total
liabilities
and
stockholders'
equity $10,728,922 $ 9,732,676 $ 9,935,046 $ 9,863,027 $ 9,498,596
=========== =========== =========== =========== ===========
Stockholders'
equity,
excluding
accumulated
other
comprehensive
income
("AOCI") $ 1,239,606 $ 1,174,657 $ 1,163,487 $ 1,146,189 $ 1,128,755
Stockholders'
equity, common 1,224,565 1,146,268 1,147,669 1,124,957 1,115,950
Condensed Consolidated Statements of Income (Unaudited)
(Dollar amounts in thousands)
Quarters Ended
--------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
--------- ------------ ------------- --------- ---------
Income Statement
Interest income $ 87,548 $ 84,667 $ 84,292 $ 84,556 $ 82,469
Interest expense 6,834 6,655 6,390 5,654 5,687
--------- ------------ ------------- --------- ---------
Net interest
income 80,714 78,012 77,902 78,902 76,782
Provision for loan
losses 7,593 4,500 4,100 6,000 6,552
--------- ------------ ------------- --------- ---------
Net interest
income after
provision
for loan
losses 73,121 73,512 73,802 72,902 70,230
--------- ------------ ------------- --------- ---------
Noninterest Income
Service charges
on deposit
accounts 9,473 10,303 10,519 9,886 9,271
Wealth
management
fees 7,559 7,493 7,222 7,433 7,014
Card-based fees 6,718 6,761 6,868 6,953 6,402
Merchant
servicing fees 3,028 2,929 3,207 2,938 2,665
Mortgage
banking income 1,368 1,777 1,402 1,439 1,123
Other service
charges,
commissions,
and fees 5,448 4,664 3,900 2,924 2,166
--------- ------------ ------------- --------- ---------
Total fee-
based
revenues 33,594 33,927 33,118 31,573 28,641
Other income 1,445 1,437 1,372 1,900 1,948
Net securities
gains 887 822 524 515 512
Gains on sales
of properties -- 292 -- -- --
--------- ------------ ------------- --------- ---------
Total
noninterest
income 35,926 36,478 35,014 33,988 31,101
--------- ------------ ------------- --------- ---------
Noninterest Expense
Salaries and
employee
benefits:
Salaries and
wages 36,296 34,295 33,554 33,096 32,794
Retirement and
other employee
benefits 8,298 8,925 7,807 7,198 7,922
--------- ------------ ------------- --------- ---------
Total
salaries and
employee
benefits 44,594 43,220 41,361 40,294 40,716
--------- ------------ ------------- --------- ---------
Net occupancy
and equipment
expense 9,697 9,256 9,406 9,622 10,436
Professional
services 5,920 6,117 6,172 5,322 5,109
Technology and
related costs 3,701 3,694 3,673 3,527 3,687
Merchant card
expense 2,598 2,495 2,722 2,472 2,197
Advertising and
promotions 1,589 2,211 1,828 2,344 1,223
Cardholder
expenses 1,359 1,329 1,354 1,292 1,268
Net OREO
expense 664 926 1,290 1,861 1,204
Other expenses 7,447 7,525 6,559 6,717 6,817
Acquisition and
integration
related
expenses 5,020 1,389 -- -- --
Property
valuation
adjustments -- 8,581 -- -- --
--------- ------------ ------------- --------- ---------
Total
noninterest
expense 82,589 86,743 74,365 73,451 72,657
--------- ------------ ------------- --------- ---------
Income before
income tax
expense 26,458 23,247 34,451 33,439 28,674
Income tax
expense 8,496 6,923 11,167 10,865 8,792
--------- ------------ ------------- --------- ---------
Net income $ 17,962 $ 16,324 $ 23,284 $ 22,574 $ 19,882
========= ============ ============= ========= =========
Net income
applicable to
common shares $ 17,750 $ 16,145 $ 23,058 $ 22,325 $ 19,654
Net income
applicable to
common shares,
excluding certain
significant
transactions (1) $ 20,762 $ 22,127 $ 23,058 $ 22,325 $ 19,654
Footnotes to Condensed Consolidated Statements of Income
(1) Certain significant transactions include acquisition and integration
related expenses associated with completed and pending acquisitions and
property valuation adjustments related to strategic branch initiatives.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share data)
As of or for the
--------------------------------------------------------
Quarters Ended
--------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
--------- ------------ ------------- --------- ---------
Earnings Per Share
Basic earnings per
common share
("EPS") (1) $ 0.23 $ 0.21 $ 0.30 $ 0.29 $ 0.26
Diluted EPS (1) $ 0.23 $ 0.21 $ 0.30 $ 0.29 $ 0.26
Diluted EPS,
excluding certain
significant
transactions (1)
(6) $ 0.27 $ 0.29 $ 0.30 $ 0.29 $ 0.26
Common Stock and
Related Per Common
Share Data
Book value $ 15.06 $ 14.70 $ 14.72 $ 14.43 $ 14.31
Tangible book value$ 10.51 $ 10.35 $ 10.47 $ 10.17 $ 10.04
Dividends declared
per share $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09
Closing price at
period end $ 18.02 $ 18.43 $ 17.54 $ 18.97 $ 17.37
Closing price to
book value 1.2 1.3 1.2 1.3 1.2
Period end shares
outstanding 81,298 77,952 77,942 77,961 77,957
Period end treasury
shares 9,976 10,276 10,286 10,267 10,271
Common dividends $ 7,228 $ 7,017 $ 7,014 $ 7,022 $ 7,011
Key Ratios/Data
Return on average
common equity (1)
(2) 6.06% 5.55% 8.06% 7.97% 7.15%
Return on average
tangible common
equity (1) (2) 8.87% 8.06% 11.68% 11.62% 10.52%
Return on average
tangible common
equity, excluding
certain
significant
transactions (1)
(2) (6) 10.32% 10.94% 11.68% 11.62% 10.52%
Return on average
assets (2) 0.72% 0.66% 0.94% 0.94% 0.85%
Efficiency ratio
(1) 64.82% 65.11% 63.20% 61.70% 64.46%
Net interest margin
(3) 3.66% 3.59% 3.58% 3.76% 3.79%
Loans to deposits 89.09% 88.44% 83.48% 83.41% 85.97%
Yield on average
interest-earning
assets (3) 3.96% 3.89% 3.86% 4.02% 4.06%
Cost of funds 0.44% 0.44% 0.42% 0.38% 0.39%
Net noninterest
expense to average
assets 1.90% 2.08% 1.60% 1.66% 1.80%
Effective income
tax rate 32.11% 29.78% 32.41% 32.50% 30.66%
Capital Ratios
Total capital to
risk-weighted
assets (1) 10.64% 11.15% 11.43% 11.37% 11.23%
Tier 1 capital to
risk-weighted
assets (1) 9.81% 10.28% 10.55% 10.49% 10.35%
Tier 1 common
capital to risk-
weighted assets
(CET1) (1) 9.30% 9.73% 10.00% 9.93% 9.79%
Tier 1 leverage to
average assets (1) 9.56% 9.40% 9.29% 9.34% 9.32%
Tangible common
equity to tangible
assets (1) 8.25% 8.59% 8.50% 8.32% 8.54%
Tangible common
equity, excluding
AOCI, to tangible
assets (1) 8.39% 8.89% 8.67% 8.54% 8.68%
Tangible common
equity to risk-
weighted assets
(1) 9.04% 9.29% 9.70% 9.55% 9.51%
Note: Selected Financial Information footnotes are located at the end of
this section.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share data)
As of or for the
--------------------------------------------------------
Quarters Ended
--------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
--------- ------------ ------------- --------- ---------
Asset Quality
Performance Data
Non-performing
assets(4)
Commercial and
industrial $ 5,364 $ 5,587 $ 6,438 $ 11,100 $ 12,913
Agricultural 295 355 112 317 358
Commercial real
estate:
Office, retail,
and industrial 10,910 6,875 6,961 12,599 11,363
Multi-family 410 796 1,046 1,287 700
Construction 778 905 3,332 4,940 7,488
Other commercial
real estate 5,555 5,611 5,898 5,513 5,915
Consumer 8,071 8,746 8,521 9,253 9,340
--------- ------------ ------------- --------- ---------
Total non-accrual
loans 31,383 28,875 32,308 45,009 48,077
90 days or more
past due loans 5,483 2,883 4,559 2,744 3,564
--------- ------------ ------------- --------- ---------
Total non-
performing loans 36,866 31,758 36,867 47,753 51,641
Accruing troubled
debt
restructurings 2,702 2,743 2,771 3,067 3,581
Other real estate
owned 29,238 27,349 31,129 24,471 26,042
--------- ------------ ------------- --------- ---------
Total non-
performing
assets $ 68,806 $ 61,850 $ 70,767 $ 75,291 $ 81,264
========= ============ ============= ========= =========
30-89 days past due
loans (4) $ 29,826 $ 16,329 $ 28,629 $ 28,625 $ 18,631
Allowance for
credit losses
Allowance for loan
losses $ 75,582 $ 71,992 $ 68,384 $ 66,602 $ 65,311
Allowance for
covered loan
losses 1,568 1,638 4,116 4,861 5,679
Reserve for
unfunded
commitments 1,225 1,225 1,225 1,816 1,816
--------- ------------ ------------- --------- ---------
Total allowance for
credit losses $ 78,375 $ 74,855 $ 73,725 $ 73,279 $ 72,806
========= ============ ============= ========= =========
Provision for loan
losses $ 7,593 $ 4,500 $ 4,100 $ 6,000 $ 6,552
Net charge-offs by
category
Commercial and
industrial $ 1,396 $ 1,781 $ 1,601 $ 3,273 $ 6,657
Agricultural -- -- -- -- --
Commercial real
estate:
Office, retail,
and industrial 421 267 457 1,862 (166)
Multi-family 179 (27) 67 466 24
Construction 111 105 (114) (188) (17)
Other commercial
real estate 1,294 110 92 (603) 1,051
Consumer 672 1,134 959 432 479
Covered loans -- -- 1 285 228
--------- ------------ ------------- --------- ---------
Total net
charge-offs $ 4,073 $ 3,370 $ 3,063 $ 5,527 $ 8,256
========= ============ ============= ========= =========
Total recoveries
included above $ 1,116 $ 1,031 $ 1,294 $ 2,579 $ 1,797
Note: Selected Financial Information footnotes are located at the end of
this section.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share data)
As of or for the
--------------------------------------------------------
Quarters Ended
--------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
--------- ------------ ------------- --------- ---------
Asset Quality
ratios(4)
Non-accrual loans
to total loans 0.40% 0.40% 0.47% 0.66% 0.71%
Non-performing
loans to total
loans 0.47% 0.45% 0.54% 0.70% 0.77%
Non-performing
assets to total
loans plus OREO 0.88% 0.86% 1.02% 1.10% 1.20%
Non-performing
assets to
tangible common
equity plus
allowance for
credit losses 7.39% 7.03% 7.99% 8.74% 9.56%
Non-accrual loans
to total assets 0.29% 0.30% 0.33% 0.46% 0.51%
Allowance for
credit losses and
net charge-off
ratios
Allowance for
credit losses to
total loans (5) 1.00% 1.05% 1.06% 1.07% 1.07%
Allowance for
credit losses to
loans, excluding
acquired loans 1.11% 1.11% 1.14% 1.16% 1.19%
Allowance for
credit losses to
non-accrual loans
(4) 244.74% 253.57% 215.45% 152.01% 139.62%
Allowance for
credit losses to
non-performing
loans (4) 208.34% 230.55% 188.81% 143.27% 129.99%
Net charge-offs to
average loans (2) 0.22% 0.19% 0.18% 0.33% 0.50%
Footnotes to Selected Financial Information
(1) See the Non-GAAP Reconciliations section for detailed calculation.
(2) Annualized based on the actual number of days for each period
presented.
(3) Tax equivalent basis reflects federal and state tax benefits.
(4) Excludes covered loans and covered OREO.
(5) This ratio includes acquired loans that are recorded at fair value
through an acquisition adjustment, which incorporates credit risk, as
of the acquisition date with no allowance for credit losses being
established at that time. As the acquisition adjustment is accreted
into income over future periods, an allowance for credit losses is
established on acquired loans as necessary to reflect credit
deterioration.
(6) Certain significant transactions include acquisition and integration
related expenses associated with completed and pending acquisitions and
property valuation adjustments related to strategic branch initiatives.
Non-GAAP Reconciliations (Unaudited)
(Amounts in thousands, except per share data)
Quarters Ended
--------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
--------- ------------ ------------- --------- ---------
Earnings Per Share
Net income $ 17,962 $ 16,324 $ 23,284 $ 22,574 $ 19,882
Net income
applicable to
non-vested
restricted shares (212) (179) (226) (249) (228)
--------- ------------ ------------- --------- ---------
Net income
applicable to
common shares 17,750 16,145 23,058 22,325 19,654
Tax-equivalent
acquisition and
integration
related expenses
(2) 3,012 833 -- -- --
Tax-equivalent
property
valuation
adjustments (2) -- 5,149 -- -- --
--------- ------------ ------------- --------- ---------
Net income
applicable to
common shares,
excluding
certain
significant
transactions
(1) $ 20,762 $ 22,127 $ 23,058 $ 22,325 $ 19,654
========= ============ ============= ========= =========
Weighted-average
common shares
outstanding:
Weighted-average
common shares
outstanding
(basic) 77,980 77,121 77,106 77,089 76,918
Dilutive effect
of common stock
equivalents 12 13 13 12 12
--------- ------------ ------------- --------- ---------
Weighted-
average
diluted
common shares
outstanding 77,992 77,134 77,119 77,101 76,930
========= ============ ============= ========= =========
Basic EPS $ 0.23 $ 0.21 $ 0.30 $ 0.29 $ 0.26
Diluted EPS $ 0.23 $ 0.21 $ 0.30 $ 0.29 $ 0.26
Diluted EPS,
excluding certain
significant
transactions (1) $ 0.27 $ 0.29 $ 0.30 $ 0.29 $ 0.26
Anti-dilutive
shares not
included in the
computation of
diluted EPS 608 735 751 768 948
Efficiency Ratio
Calculation
Noninterest
expense $ 82,589 $ 86,743 $ 74,365 $ 73,451 $ 72,657
Less: --
Net OREO expense (664) (926) (1,290) (1,861) (1,204)
Acquisition and
integration
related
expenses (5,020) (1,389) -- -- --
Property
valuation
adjustments -- (8,581) -- -- --
--------- ------------ ------------- --------- ---------
Total $ 76,905 $ 75,847 $ 73,075 $ 71,590 $ 71,453
========= ============ ============= ========= =========
Tax-equivalent net
interest income
(2) $ 83,021 $ 80,506 $ 80,511 $ 81,595 $ 79,665
Fee-based revenues 33,594 33,927 33,118 31,573 28,641
Add:
Other income,
excluding BOLI
income 579 515 446 446 1,065
Tax-adjusted
BOLI (BOLI/.6) 1,443 1,537 1,543 2,423 1,472
--------- ------------ ------------- --------- ---------
Total $ 118,637 $ 116,485 $ 115,618 $ 116,037 $ 110,843
========= ============ ============= ========= =========
Efficiency ratio 64.82% 65.11% 63.20% 61.70% 64.46%
Tax Equivalent Net
Interest Income
Net interest
income $ 80,714 $ 78,012 $ 77,902 $ 78,902 $ 76,782
Tax-equivalent
adjustment 2,307 2,494 2,609 2,693 2,883
--------- ------------ ------------- --------- ---------
Tax-equivalent
net interest
income (2) $ 83,021 $ 80,506 $ 80,511 $ 81,595 $ 79,665
========= ============ ============= ========= =========
Note: Non-GAAP Reconciliations footnotes are located at the end of this
section.
Non-GAAP Reconciliations (Unaudited)
(Amounts in thousands, except per share data)
As of or for the
------------------------------------------------------------
Quarters Ended
------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
----------- ------------ ------------- ---------- ----------
Risk-Based
Capital Data
Common stock $ 913 $ 882 $ 882 $ 882 $ 882
Additional
paid-in
capital 493,153 446,672 445,037 443,558 441,689
Retained
earnings 964,250 953,516 944,209 927,939 912,387
Treasury
stock, at
cost (218,710) (226,413) (226,641) (226,190) (226,203)
Goodwill and
other
intangible
assets (357,895) (327,115) (318,854) (319,243) (319,635)
Disallowed
deferred tax
assets (2,956) (1,902) (2,889) (3,046) (3,354)
----------- ------------ ------------- ---------- ----------
Common
equity Tier
1 capital 878,755 845,640 841,744 823,900 805,766
Trust-
preferred
securities 50,690 50,690 50,690 50,690 50,690
Other
disallowed
deferred tax
assets (1,970) (2,868) (4,334) (4,568) (5,030)
----------- ------------ ------------- ---------- ----------
Tier 1
capital 927,475 893,462 888,100 870,022 851,426
Tier 2 capital 78,375 74,855 73,725 73,279 72,806
----------- ------------ ------------- ---------- ----------
Total
capital $ 1,005,850 $ 968,317 $ 961,825 $ 943,301 $ 924,232
=========== ============ ============= ========== ==========
Risk-weighted
assets $ 9,452,551 $ 8,687,864 $ 8,414,729 $8,296,679 $8,229,627
Adjusted
average
assets $ 9,700,671 $ 9,501,087 $ 9,559,796 $9,318,347 $9,134,320
Total capital
to risk-
weighted
assets 10.64% 11.15% 11.43% 11.37% 11.23%
Tier 1 capital
to risk-
weighted
assets 9.81% 10.28% 10.55% 10.49% 10.35%
Tier 1 common
capital to
risk-weighted
assets 9.30% 9.73% 10.00% 9.93% 9.79%
Tier 1
leverage to
average
assets 9.56% 9.40% 9.29% 9.34% 9.32%
Tangible
Common Equity
Stockholders'
equity $ 1,224,565 $ 1,146,268 $ 1,147,669 $1,124,957 $1,115,950
Less: goodwill
and other
intangible
assets (369,979) (339,277) (331,250) (332,223) (333,202)
----------- ------------ ------------- ---------- ----------
Tangible
common
equity 854,586 806,991 816,419 792,734 782,748
Less: AOCI 15,041 28,389 15,818 21,232 12,805
----------- ------------ ------------- ---------- ----------
Tangible
common
equity,
excluding
AOCI $ 869,627 $ 835,380 $ 832,237 $ 813,966 $ 795,553
=========== ============ ============= ========== ==========
Total assets $10,728,922 $ 9,732,676 $ 9,935,046 $9,863,027 $9,498,596
Less: goodwill
and other
intangible
assets (369,979) (339,277) (331,250) (332,223) (333,202)
----------- ------------ ------------- ---------- ----------
Tangible
assets $10,358,943 $ 9,393,399 $ 9,603,796 $9,530,804 $9,165,394
=========== ============ ============= ========== ==========
Tangible
common equity
to tangible
assets 8.25% 8.59% 8.50% 8.32% 8.54%
Tangible
common
equity,
excluding
AOCI, to
tangible
assets 8.39% 8.89% 8.67% 8.54% 8.68%
Tangible
common equity
to risk-
weighted
assets 9.04% 9.29% 9.70% 9.55% 9.51%
Note: Non-GAAP Reconciliations footnotes are located at the end of this
section.
Non-GAAP Reconciliations (Unaudited)
(Amounts in thousands, except per share data)
As of or for the
-----------------------------------------------------------
Quarters Ended
-----------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
---------- ------------ ------------- ---------- ----------
Return on
Average Common
and Tangible
Common Equity
Net income
applicable to
common shares $ 17,750 $ 16,145 $ 23,058 $ 22,325 $ 19,654
Intangibles
amortization 985 971 973 978 998
Tax-equivalent
adjustment of
intangibles
amortization (394) (388) (389) (391) (399)
---------- ------------ ------------- ---------- ----------
Net income
applicable
to common
shares,
excluding
intangibles
amortization 18,341 16,728 23,642 22,912 20,253
Tax-equivalent
acquisition
and
integration
related
expenses (2) 3,012 833 -- -- --
Tax-equivalent
property
valuation
adjustments
(2) -- 5,149 -- -- --
---------- ------------ ------------- ---------- ----------
Net income
applicable
to common
shares,
excluding
intangibles
amortization
and certain
significant
transactions
(1) $ 21,353 $ 22,710 $ 23,642 $ 22,912 $ 20,253
========== ============ ============= ========== ==========
Average
stockholders'
equity $1,178,588 $ 1,154,506 $ 1,134,967 $1,123,530 $1,114,762
Less: average
intangible
assets (346,549) (331,013) (331,720) (332,694) (333,684)
---------- ------------ ------------- ---------- ----------
Average
tangible
common
equity $ 832,039 $ 823,493 $ 803,247 $ 790,836 $ 781,078
========== ============ ============= ========== ==========
Return on
average common
equity (3) 6.06% 5.55% 8.06% 7.97% 7.15%
Return on
average
tangible
common equity
(3) 8.87% 8.06% 11.68% 11.62% 10.52%
Return on
average
tangible
common equity,
excluding
certain
significant
transactions
(1) (3) 10.32% 10.94% 11.68% 11.62% 10.52%
Footnotes to Non-GAAP Reconciliations
(1) Certain significant transactions include acquisition and integration
related expenses associated with completed and pending acquisitions and
property valuation adjustments related to strategic branch initiatives.
(2) Tax equivalent basis reflects federal and state tax benefits.
(3) Annualized based on the actual number of days for each period
presented.
Contact Information
Investors:
Paul F. Clemens
EVP and Chief Financial Officer
(630) 875-7347
paul.clemens@firstmidwest.com
Media:
James M. Roolf
SVP and Corporate Relations Officer
(630) 875-7533
jim.roolf@firstmidwest.com
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