First Midwest Bancorp, Inc. Announces 2015 First Quarter Results
Strong Earnings Growth - Increased Revenue - Greater Efficiency - Improved Asset Quality
(firmenpresse) - ITASCA, IL -- (Marketwired) -- 04/21/15 -- 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 2015. Net income for the first quarter of 2015 was $19.9 million, or $0.26 per share. This compares to $14.6 million, or $0.19 per share, for the fourth quarter of 2014, and $17.7 million, or $0.24 per share, for the first quarter of 2014.
"Performance for the quarter was solid and on plan," said Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc. "Quarterly earnings per share of $0.26 increased 8% from a year ago, largely reflective of our acquisitions of Great Lakes Bank and Popular Community Bank branches during the second half of 2014. The resulting revenue growth, aided by building sales momentum, contributed to our improved operating efficiency."
Mr. Scudder concluded, "As we look ahead, our priorities remain focused on strengthening our lines of business and efficiently growing and diversifying revenues. We remain sensitive to the expected rise in interest rates, which in turn will require balanced navigation of short term performance and competitive pressures. At the same time, our liquidity and strong core deposit foundation provide us with an advantage that we believe few others enjoy. As we look ahead, we have the opportunity to leverage this advantage along with our strong capital foundation to grow and produce enhanced returns for our shareholders."
For the first quarter of 2015, total average interest-earning assets rose $197.7 million from the linked quarter driven by loans acquired late in the fourth quarter of 2014 and purchases of investment securities. Compared to the first quarter of 2014, the $1.0 billion increase in total average interest-earning assets reflects the impact of loans and securities acquired during the second half of 2014 and solid organic loan growth over the course of the year.
Total average funding sources for the first quarter of 2015 increased $176.9 million from the fourth quarter of 2014 and $1.0 billion compared to the first quarter of 2014. The rise from both prior periods resulted mainly from acquisition activity. The decline in borrowed funds from the first quarter of 2014 was due to the prepayment of $114.6 million of FHLB advances during the second quarter of 2014.
Tax-equivalent net interest margin for the current quarter was 3.79%, increasing 3 basis points from the fourth quarter of 2014 and 18 basis points from the first quarter of 2014. Excluding acquired loan accretion income and interest rate swaps, tax-equivalent net interest margin was consistent with the fourth and first quarters of 2014.
Total noninterest income of $31.1 million remained consistent compared to the linked quarter and grew 14.1% compared to the first quarter of 2014.
Total fee-based revenues increased 14.3% from the first quarter of 2014, reflecting growth across most categories. Higher levels of service charge volume, primarily from new customers acquired in the acquisitions completed during the second half of 2014, impacted the rise in service charges on deposit accounts. Sales to new and existing customers continued to drive the increase in wealth management fees. The rise in card-based fees reflects higher transaction volumes. Fee income generated by sales of capital market products to commercial clients and gains realized on the sale of leasing equipment contracts contributed to the increase in other service charges, commissions, and fees.
Total fee-based revenues decreased 2.5% from the fourth quarter of 2014 as growth in wealth management fees from new customer relationships and higher levels of mortgage banking income were more than offset by the normal seasonal decline in service charges on deposit accounts and other service charges, commissions, and fees. Seasonally lower volumes of non-sufficient funds transactions contributed to the decrease in service charges on deposit accounts.
The efficiency ratio improved to 64% from 66% for the linked quarter, after excluding acquisition and integration related expenses incurred in the fourth quarter of 2014, and 67% for the first quarter of 2014. Likewise, total noninterest expense declined 3.8% from the fourth quarter of 2014, excluding acquisition and integration related expenses. The 14.1% rise in total noninterest expense compared to the first quarter of 2014 was substantially due to operating costs of the 21 banking locations acquired during the second half of 2014.
Salaries and wages increased compared to the first quarter of 2014 driven by additional salaries resulting from the acquisitions completed during 2014 and other salary expenses associated with growth and organizational needs.
Retirement and other employee benefits rose compared to the first quarter of 2014 due to the acquisitions completed during 2014 and comparatively higher incentive compensation expenses.
Net occupancy and equipment expense increased from the fourth quarter of 2014 driven by higher costs related to winter weather conditions and a rise in depreciation and real estate taxes related to the banking locations acquired in 2014. Compared to the first quarter of 2014, increases in occupancy costs from the acquired banking locations were partially offset by lower year-over-year weather related costs.
Professional services expense declined compared to the fourth quarter of 2014 as the Company incurred lower legal and loan remediation expenses, as well as lower costs to service our covered loan portfolio.
Technology and related costs increased compared to the first quarter of 2014 due primarily to greater processing expenses associated with operating the acquired banking locations.
Advertising and promotions expense decreased compared to both prior periods presented due to the timing of certain advertising costs.
Net OREO expense decreased compared to the fourth and first quarters of 2014 due to reduced valuation adjustments and higher net gains on sales of OREO properties.
Other expense decreased from the linked quarter due primarily to signage disposal costs recorded in the fourth quarter of 2014. Compared to the first quarter of 2014 the increase in other expense resulted primarily from additional FDIC premiums, other intangibles amortization, and other miscellaneous expenses related to the 2014 acquisitions.
Total loans, excluding covered loans, of $6.7 billion grew 5.1% on an annualized basis from December 31, 2014 and 18.4% from March 31, 2014. As of March 31, 2015, total loans, excluding acquired loans of $660.9 million and covered loans, grew $387.5 million, or 6.8%, from March 31, 2014. The majority of this loan growth from March 31, 2014 was driven by well-balanced growth distributed across the commercial and industrial, agricultural, multi-family, and consumer categories.
Growth from December 31, 2014 was concentrated within our commercial and industrial and agricultural loan categories and reflects the continued expansion into certain sector-based lending areas such as asset-based lending and healthcare. The rise in consumer loans reflects the purchase of $55.1 million of high quality, shorter-duration, floating rate home equity loans.
Total non-performing assets, excluding covered loans and covered OREO, decreased by $10.5 million, or 11.4%, from December 31, 2014 and $24.3 million, or 23.0%, from March 31, 2014. Lower levels of non-accrual loans, accruing TDRs, and OREO contributed to the decline compared to both prior periods presented. The improvement in non-accrual loans compared to December 31, 2014 was primarily related to the final resolution of a large commercial loan relationship originally identified in the third quarter of 2014, for which a specific reserve was then established.
Total net loan charge-offs for the first quarter of 2015 reflect the remediation of three corporate relationships. Included was a charge-off related to the final resolution of a large commercial loan relationship originally identified in the third quarter of 2014, for which a specific reserve was then established. In addition, charge-offs were recorded on two classified corporate credits where changes in borrower circumstances dictated accelerated remediation.
The Company''s capital ratios increased from December 31, 2014, driven primarily by growth in retained earnings. The decline in capital ratios compared to March 31, 2014 resulted from the addition of risk-weighted and average assets, including goodwill and other intangible assets, related to acquisitions. These declines were partially offset by earnings and an increase in allowable deferred tax assets.
The Board of Directors approved a quarterly cash dividend of $0.09 per common share during the first quarter of 2015, which follows a dividend increase from $0.07 to $0.08 per common share during the second quarter of 2014.
First Midwest, with assets of approximately $9.5 billion, is a premier relationship-based financial institution in the Chicago banking market and one of Illinois'' largest independent publicly-traded banking companies. First Midwest''s principal subsidiary, First Midwest Bank, and other affiliates provide a full range of business, middle-market and retail banking and wealth management services to commercial and industrial, commercial real estate, municipal, and consumer customers through over 100 locations in metropolitan Chicago, northwest Indiana, central and western Illinois, and eastern Iowa. First Midwest was recognized by J.D. Power as having the "Highest Customer Satisfaction with Retail Banking in the Midwest"* according to the 2014 Retail Banking Satisfaction Study(SM). The Company website is .
* First Midwest Bank received the highest numerical score among retail banks in the Midwest region in the proprietary J.D. Power 2014 Retail Banking Satisfaction Study(SM). The Study is based on 80,445 total responses measuring 21 providers in the Midwest region (Iowa, Illinois, Kansas, Missouri, Minnesota, and Wisconsin) and measures opinions of consumers with their primary banking provider. Proprietary study results are based on experiences and perceptions of consumers surveyed January 2014. Individual experiences may vary. Visit JDPower.com.
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. This includes, but is not limited to, earnings per share, excluding acquisition and integration related expenses, top-line revenue (which includes interest income plus fee-based revenue), tax-equivalent net interest income (including its individual components), tax-equivalent net interest margin, the efficiency ratio, tangible common equity to tangible assets, tangible common equity, excluding other comprehensive loss, to tangible assets, and tangible common equity to risk-weighted assets. 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 accompanying Supplemental Financial Information for details on the calculation of these measures to the extent presented herein.
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," or "continue" 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, 2014, 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.
A conference call to discuss the Company''s results, outlook, and related matters will be held on Wednesday, April 22, 2015 at 10:00 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, . 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 I.D. 10063529 beginning one hour after completion of the live call until 9:00 A.M. (ET) on April 29, 2015. Please direct any questions regarding obtaining access to the conference call to First Midwest Bancorp, Inc. Investor Relations, via e-mail, at .
Accompanying this press release is the following unaudited financial information:
Condensed Consolidated Statements of Financial Condition
Condensed Consolidated Statements of Income
This press release, the accompanying financial statements and tables, and certain additional unaudited Selected Financial Information are available through the "Investor Relations" section of First Midwest''s website at .
First Midwest Bancorp, Inc.
One Pierce Place, Suite 1500
Itasca, Illinois 60143-9768
(630) 875-7450
(Investors)
EVP and Chief Financial Officer
(630) 875-7347
(Media)
SVP and Corporate Relations Officer
(630) 875-7533
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Datum: 21.04.2015 - 16:21 Uhr
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