First Midwest Bancorp, Inc. Announces 2016 First Quarter Results
(firmenpresse) - 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.
"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."
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.
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.
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.
N/M - Not meaningful.
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.
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.
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.
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.
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.
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, . 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 .
This press release and the accompanying unaudited Selected Financial Information are available through the "Investor Relations" section of First Midwest''s website at .
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.
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.
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 .
Investors:
Paul F. Clemens
EVP and Chief Financial Officer
(630) 875-7347
Media:
James M. Roolf
SVP and Corporate Relations Officer
(630) 875-7533
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Datum: 19.04.2016 - 16:24 Uhr
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