Market Overview

First Midwest Bancorp, Inc. Announces 2017 Second Quarter Results

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ITASCA, Ill., July 25, 2017 (GLOBE NEWSWIRE) -- 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 second quarter of 2017. Net income for the second quarter of 2017 was $35.0 million, or $0.34 per share. This compares to $22.9 million, or $0.23 per share, for the first quarter of 2017, and $25.3 million, or $0.31 per share, for the second quarter of 2016.

Reported results for all periods presented were impacted by certain significant transactions, which include acquisition and integration related expenses associated with completed and pending acquisitions. Excluding these certain significant transactions, earnings per share (1) was $0.35 for the second quarter of 2017, compared to $0.34 for the first quarter of 2017 and $0.32 for the second quarter of 2016.

SELECT SECOND QUARTER HIGHLIGHTS

  • Increased earnings per share to $0.35, up 9% from the second quarter of 2016 and 3%, or 12% annualized, from the first quarter of 2017, excluding certain significant transactions (1).

  • Improved return on average tangible common equity to 13.37%, up from 11.94% for the second quarter of 2016.

  • Grew loans to $10.2 billion, up 28% from June 30, 2016 and 7% annualized from March 31, 2017.

  • Expanded net interest income to $118 million, up 31% from the second quarter of 2016 and 2% from the first quarter of 2017.

  • Increased net interest margin to 3.88%, up from 3.72% for the second quarter of 2016 and consistent with 3.89% for the first quarter of 2017. Excluding acquired loan accretion, net interest margin (1) grew 9 basis points to 3.60% from the first quarter of 2017.

  • Grew fee-based revenues to $41 million, an increase of 15% from the second quarter of 2016 and 9% from the first quarter of 2017.

  • Improved efficiency ratio (1) to 59%, down from 61% for both the second quarter of 2016 and the first quarter of 2017.

  • Increased dividends per share to $0.10, up 11% from the second quarter of 2016 and the first quarter of 2017.

"Performance for the quarter was strong, reflective of balanced delivery across our business," said Michael L. Scudder, President and Chief Executive Officer of the Company. "Earnings per share of $0.34 stood 10% higher from a year ago, benefiting from the expected revenue growth and improved operating efficiency accompanying our successful acquisition of Standard Bancshares in early January. Lending activity was solid, with late quarter closings providing added earnings momentum. At the same time, targeted efforts to expand and diversify our fee-based revenues are also evident, up 9% compared to last quarter."

Mr. Scudder concluded, "As we look ahead, we continue to navigate the backdrop of a more favorable rate environment as well as elevated market competition. As we do so, our focus remains centered on those actions that accrue to the long-term benefit of our shareholders – helping our clients to achieve financial success."

(1) These metrics are non-GAAP financial measures. For details on the calculation of these metrics, see the sections titled "Non-GAAP Financial Information" and "Non-GAAP Reconciliations" presented later in this release.

OPERATING PERFORMANCE

Net Interest Income and Margin Analysis
(Dollar amounts in thousands)
 
  Quarters Ended
  June 30, 2017     March 31, 2017     June 30, 2016
  Average
Balance
  Interest   Yield/
Rate
(%)
    Average
Balance
  Interest   Yield/
Rate
(%)
    Average
Balance
  Interest   Yield/
Rate
(%)
Assets:                                      
Other interest-earning asset $ 262,206     $ 686     1.05       $ 215,915     $ 441     0.83       $ 300,945     $ 426     0.57  
Securities (1) 1,983,341     11,482     2.32       2,021,157     11,535     2.28       1,721,781     10,636     2.47  
Federal Home Loan Bank ("FHLB") and
  Federal Reserve Bank ("FRB") stock
57,073     441     3.09       54,219     368     2.71       42,561     200     1.88  
Loans (1) 10,064,119     115,949     4.62       9,920,513     113,409     4.64       7,883,806     87,481     4.46  
Total interest-earning assets (1) 12,366,739     128,558     4.17       12,211,804     125,753     4.17       9,949,093     98,743     3.99  
Cash and due from banks 188,886               176,953               154,693          
Allowance for loan losses (92,152 )             (89,065 )             (80,561 )        
Other assets 1,497,370               1,373,433               945,291          
Total assets $ 13,960,843               $ 13,673,125               $ 10,968,516          
Liabilities and Stockholders' Equity:                                      
Interest-bearing core deposits (2) $ 6,025,167     1,705     0.11       $ 5,837,150     1,497     0.10       $ 4,941,779     991     0.08  
Time deposits 1,538,845     2,024     0.53       1,515,597     1,712     0.46       1,277,694     1,491     0.47  
Borrowed funds 553,046     2,099     1.52       734,091     2,194     1.21       461,363     1,499     1.31  
Senior and subordinated debt 194,819     3,105     6.39       194,677  
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