First Midwest Bancorp, Inc. Announces 2015 Second Quarter Results
(firmenpresse) - ITASCA, IL -- (Marketwired) -- 07/21/15 -- 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 second quarter of 2015. Net income for the second quarter of 2015 was $22.6 million, or $0.29 per share. This compares to $19.9 million, or $0.26 per share, for the first quarter of 2015, and $18.5 million, or $0.25 per share, for the second quarter of 2014.
"Performance for the quarter was strong," said Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc. "Quarterly earnings per share of $0.29 increased 12% from the first quarter of 2015, reflecting broad based revenue growth across all sales platforms and improved operating efficiency."
Mr. Scudder concluded, "As we look to the second half of the year, our priorities remain centered on strengthening our lines of business and efficiently growing and diversifying revenues. We continue to be sensitive to the expected rise in interest rates and committed to the underlying discipline required to navigate today's economy and the competitive lending environment. We are confident in our ability to leverage our culture, infrastructure and capital foundation to continue to grow and produce even stronger returns for our shareholders."
For the second quarter of 2015, total average interest-earning assets rose $183.0 million from the first quarter of 2015 driven by loan growth and an increase in lower yielding other interest-earning assets, which was partially offset by a decrease in investment securities. Total average funding sources increased $181.0 million from the first quarter of 2015 as a result of seasonally higher levels of interest-bearing core deposits and demand deposits.
Compared to the second quarter of 2014, the $1.1 billion increase in total average interest-earning assets and total average funding sources reflects the impact of acquisitions during the second half of 2014 and organic loan growth over the course of the year.
Tax-equivalent net interest margin for the current quarter was 3.76%, decreasing 3 basis points from the first quarter of 2015 and increasing 11 basis points from the second quarter of 2014. Compared to the first quarter of 2015, the reduction in tax-equivalent net interest margin was impacted by higher levels of other interest-earning assets, the continued shift in the loan mix to floating rate loans, and the flattening of the yield curve, which was partially offset by acquired loan accretion income and interest rate swaps. Tax-equivalent net interest margin grew compared to the second quarter of 2014 due to acquired loan accretion income and interest rate swaps, partially offset by a decrease in accretion income on covered loans and the continued shift in the loan mix.
Total fee-based revenues of $31.6 million grew 10.2% compared to the first quarter of 2015 and 16.9% compared to the second quarter of 2014, reflecting growth across all categories.
Compared to the first quarter of 2015, the increase in service charges on deposit accounts was impacted by growth and seasonality in treasury management services and a seasonal rise in other consumer deposit transactions. The increase in card-based fees from the first quarter of 2015 reflects seasonally higher transaction volumes. Growth in service charges on deposit accounts and card-based fees compared to the second quarter of 2014 resulted primarily from services provided to customers acquired in the acquisitions completed during the second half of 2014.
Compared to both prior periods presented, continued sales of fiduciary and investment advisory services to new and existing customers drove the rise in wealth management fees. During the second quarter of 2015, we sold $51.9 million of 1-4 family mortgage loans in the secondary market compared to sales of $34.5 million in the first quarter of 2015 and $32.2 million in the second quarter of 2014. 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 compared to both prior periods presented.
Total noninterest income of $34.0 million grew 9.3% and 9.0% from the first quarter of 2015 and the second quarter of 2014, respectively. During the second quarter of 2014, the Company realized net securities gains of $4.5 million and a $2.1 million loss from the prepayment of $114.6 million in FHLB advances.
The efficiency ratio improved to 62% in the second quarter of 2015 from 64% for both the first quarter of 2015 and the second quarter of 2014. Total noninterest expense increased 1.1% from the first quarter of 2015, reflecting the timing of advertising and certain OREO valuation expenses. The rise in total noninterest expense compared to the second quarter of 2014 was impacted by operating costs of the 21 banking locations acquired during the second half of 2014, of which four have been closed. These costs primarily occurred within salaries and employee benefits, net occupancy and equipment expense, technology and related costs, and other expenses.
Compared to the first quarter of 2015, the decline in net occupancy and equipment expense resulted from lower weather related costs such as snow removal and utilities.
The decrease in professional services compared to the second quarter of 2014 was driven by lower levels of loan remediation expenses and covered loan portfolio servicing costs.
Approximately half of the other expenses category consists of FDIC premiums and other intangible amortization expenses. Compared to the second quarter of 2014, the increase resulted primarily from other intangible amortization and other miscellaneous operating expenses related to the 2014 acquisitions.
Total loans, excluding covered loans, of $6.8 billion grew 3.0% on an annualized basis from March 31, 2015 and 16.2% from June 30, 2014. The loan growth from June 30, 2014 related to loans obtained in the 2014 acquisitions and organic growth.
Compared to March 31, 2015, growth was concentrated within our commercial and industrial and agricultural loan categories and reflects the continued expansion into select sector-based lending areas such as asset-based lending and leasing.
Total non-performing assets, excluding covered loans and covered OREO, decreased by $6.0 million, or 7.4%, from March 31, 2015 and $31.0 million, or 29.2%, from June 30, 2014.
Total net loan charge-offs for the second quarter of 2015 were 33 basis points of average loans, or $5.5 million, decreasing from 50 basis points for the first quarter of 2015 and 52 basis points for the second quarter of 2014.
Average core deposits of $6.8 billion for the second quarter of 2015 increased 3.3% and 18.2% compared to the first quarter of 2015 and the second quarter of 2014, respectively. The rise in average core deposits compared to the first quarter of 2015 resulted primarily from a seasonal increase in average municipal deposits of nearly $135.0 million. Compared to the second quarter of 2014, the rise was due primarily to deposits assumed in the acquisitions completed during the second half of 2014, which further strengthened the Company's core deposit base.
N/A - Not applicable.
The Company's capital ratios increased from March 31, 2015 driven primarily by growth in retained earnings. The decline in capital ratios compared to June 30, 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 second quarter of 2015, which 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, July 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. 10068552 beginning one hour after completion of the live call until 9:00 A.M. (ET) on July 29, 2015. 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," 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.
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, with assets of $9.9 billion, is a relationship-focused financial institution 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 as well as wealth management services through over 100 locations in metropolitan Chicago, northwest Indiana, central and western Illinois, and eastern Iowa. First Midwest was recognized for the second year in a row by J.D. Power as having the "Highest Customer Satisfaction with Retail Banking in the Midwest"* according to the 2015 Retail Banking Satisfaction Study(SM). First Midwest's website is .
* First Midwest Bank received the highest numerical score among retail banks in the Midwest region in the proprietary J.D. Power 2014 and 2015 Retail Banking Satisfaction Studies(SM). The 2015 study is based on 82,030 total responses measuring 20 providers in the Midwest region (IA, IL, KS, MO, WI) and measures opinions of consumers with their primary banking provider. Proprietary study results are based on experiences and perceptions of consumers surveyed April 2014 - February 2015. Your experiences may vary. Visit JDPower.com.
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: 21.07.2015 - 22:30 Uhr
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