First Midwest Bancorp, Inc. Announces 2014 Second Quarter Results Jul 22, 2014 09:55PM

ITASCA, Ill., July 22, 2014 /PRNewswire/ -- Today, First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (NASDAQ NGS: FMBI), the holding company of First Midwest Bank (the "Bank"), reported results of operations and financial condition for the second quarter of 2014. Net income for the second quarter of 2014 was $18.5 million, or $0.25 per share. This compares to $16.2 million, or $0.22 per share, for the second quarter of 2013, and $17.7 million, or $0.24 per share, for the first quarter of 2014.

"It was an active second quarter, marked by successful execution on a number of business fronts," said Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc. "Earnings for the quarter benefited from broad based revenue growth driven by solid overall business line performance. Our loan growth was diversified, with both our commercial and consumer portfolios posting 11% increases versus last quarter and a year ago. Fee-based revenue growth was robust, increasing 8% from a seasonally impacted first quarter and 4% from last year. This improvement was offset in part by acquisition-related expenses as well as comparatively higher loan reserve provisioning as we actively manage our growing credit portfolio."

Mr. Scudder continued, "Integration efforts for our announced metro Chicago acquisitions of the Popular Community Bank branches and Great Lakes Financial Resources, Inc. remain on track for closings in the third and fourth quarters, respectively. Cumulatively, these transactions will add approximately $1.3 billion in deposits, strengthening our strong core deposit foundation and positioning us well for future performance and growth."

SELECT HIGHLIGHTS

Business Momentum

  • Increased earnings per share by 14% from the second quarter of 2013 and 4% from the first quarter of 2014.
  • Grew total loans, excluding covered loans, by 11% from June 30, 2013 and 11% annualized from March 31, 2014.
  • Recorded fee-based revenues of $27 million, up 8% from the first quarter of 2014 and 4% from the second quarter of 2013.
  • Increased tax-equivalent net interest income to $69.2 million, improving net interest margin by 4 basis points to 3.65% from the first quarter of 2014.
  • Improved efficiency ratio to 63.6% holding noninterest expense consistent with the first quarter of 2014, excluding expenses related to recently announced acquisitions.

Credit and Capital

  • Reduced non-performing assets by 25% compared to June 30, 2013 and remained stable compared to March 31, 2014.
  • Recorded annualized net loan charge-offs to average loans, excluding covered loans, of 51 basis points for the first six months of 2014 compared to 55 basis points for the same period in 2013.
  • Increased dividends per share to $0.08, up from $0.07 for the first quarter of 2014 and $0.04 for the second quarter of 2013.
  • Grew Company tier 1 common capital to risk-weighted assets to 10.45% as of June 30, 2014, a 76 basis point improvement from June 30, 2013.

Significant Events

  • Announced the acquisition of Great Lakes Financial Resources, Inc. and the Chicago banking operations of Popular Community Bank, which will add over $1.3 billion in deposits and $800 million in loans when closed in the third and fourth quarters of 2014.
  • Recorded pre-tax securities gains of $4.0 million from the sale of two investments, including a $3.5 million gain on the sale of a non-accrual CDO.
  • Reduced interest expense by prepaying $114.6 million in FHLB advances.
  • Recognized by J.D. Power as having the "Highest Customer Satisfaction with Retail Banking in the Midwest Region*" according to the 2014 Retail Banking Satisfaction Study SM.

ACQUISITIONS

On July 7, 2014, the Company entered into a definitive agreement to acquire south suburban Chicago-based Great Lakes Financial Resources, Inc. ("Great Lakes"), the holding company for Great Lakes Bank, National Association. As part of the acquisition, the Company will acquire eight locations, approximately $234 million in loans, and $490 million in deposits, 96% of which represent core deposits. The merger consideration will be a combination of Company stock and cash, with an overall transaction value of approximately $58 million, subject to certain adjustments based on the stock price of the Company prior to closing. The acquisition is subject to customary regulatory approvals and certain closing conditions, and is expected to close before the end of 2014.

On April 22, 2014, the Bank entered into a definitive agreement to acquire the Chicago area banking operations of Banco Popular North America (doing business as Popular Community Bank), which is a subsidiary of Popular, Inc. The acquisition includes Popular Community Bank's retail banking offices and its small business and middle market commercial lending activities in the Chicago metropolitan area. As part of the acquisition, the Bank will acquire twelve full-service retail branches, approximately $750 million in deposits, and approximately $525 million in loans. Subsequently, the Bank entered into an amendment to the definitive agreement to purchase additional loans of approximately $50 million. The Bank received regulatory approval for this acquisition from the Federal Reserve; however, the acquisition is subject to certain closing conditions and is expected to close in the third quarter of 2014.

OPERATING PERFORMANCE

Net Interest Income and Margin Analysis

(Dollar amounts in thousands)

Quarters Ended

June 30, 2014

March 31, 2014

June 30, 2013

Average Balance

Interest

Earned/

Paid

Yield/

Rate

(%)

Average

Balance

Interest

Earned/

Paid

Yield/

Rate

(%)

Average

Balance

Interest

Earned/

Paid

Yield/

Rate

(%)

Assets:

Other interest-earning assets

$

532,900

$

369

0.28

$

537,137

$

382

0.29

$

674,849

$

468

0.28

Trading securities

17,913

28

0.63

17,470

28

0.64

15,610

24

0.61

Investment securities (1)

1,113,201

10,256

3.69

1,167,803

10,403

3.56

1,256,813

10,164

3.23

Federal Home Loan Bank and Federal Reserve Bank stock

35,517

348

3.92

35,161

335

3.81

40,998

342

3.34

Loans (1)(2)

5,902,953

63,901

4.34

5,722,457

61,518

4.36

5,383,891

63,829

4.76

Total interest-earning assets (1)

7,602,484

74,902

3.95

7,480,028

72,666

3.93

7,372,161

74,827

4.07

Cash and due from banks

117,108

111,500

124,996

Allowance for loan and covered loan losses

(79,071)

(86,726)

(98,006)

Other assets

776,148

777,685

860,502

Total assets

$

8,416,669

$

8,282,487

$

8,259,653

Liabilities and Stockholders' Equity:

Interest-bearing transaction deposits

$

3,721,134

720

0.08

$

3,652,938

792

0.09

$

3,584,382

810

0.09

Time deposits

1,168,898

1,791

0.61

1,196,449

1,805

0.61

1,331,499

2,193

0.66

Borrowed funds

164,605

169

0.41

222,491

383

0.70

204,449

385

0.76

Senior and subordinated debt

190,981

3,016

6.33

190,949

3,015

6.40

214,828

3,435

6.41

Total interest-bearing liabilities

5,245,618

5,696

0.44

5,262,827

5,995

0.46

5,335,158

6,823

0.51

Demand deposits

2,069,781

1,928,289

1,880,476

Total funding sources

7,315,399

7,191,116

7,215,634

Other liabilities

66,681

75,969

83,518

Stockholders' equity - common

1,034,589

1,015,402

960,501

Total liabilities and stockholders' equity

$

8,416,669

$

8,282,487

$

8,259,653

Net interest income/margin (1)

$

69,206

3.65

$

66,671

3.61

$

68,004

3.70

(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 within income tax expense. These adjustments have no impact on net income.

(2)

This item includes covered interest-earning assets consisting of loans acquired through the Company's Federal Deposit Insurance Corporation ("FDIC")-assisted transactions subject to loss sharing agreements and the related FDIC indemnification asset.

For the second quarter of 2014, total average interest-earning assets increased $122.5 million and $230.3 million from the first quarter of 2014 and the second quarter of 2013, respectively, driven by growth in the loan portfolio, which was funded by higher core deposits and cash flows from maturities of investment securities.

The decrease in total average interest-bearing liabilities of $17.2 million from the first quarter of 2014 resulted from lower levels of time deposits and borrowed funds, which more than offset the increase in interest-bearing transaction deposits. Compared to the second quarter of 2013, the reduction in borrowed funds and senior and subordinated debt mitigated the impact of the rise in interest-bearing transaction deposits. The decline in borrowed funds resulted from the prepayment of $114.6 million of FHLB advances during the second quarter of 2014. Compared to both prior periods, growth in demand deposits also contributed to the increase in total funding sources.

Tax-equivalent net interest margin for the current quarter was 3.65%, increasing 4 basis points from the first quarter of 2014 and decreasing 5 basis points from the second quarter of 2013. The decline in the yield on loans compared to both prior periods reflects the continued shift in the loan mix to floating rate loans and the flattening of the yield curve, which was mitigated by an increase in the yield on covered interest-earning assets in the second quarter of 2014. Compared to the linked quarter, the reduction in the loan yield was more than offset by higher yields on investment securities and a 29 basis point reduction in rates paid on borrowed funds primarily from the prepayment of FHLB advances, of which the full impact will be seen in the third quarter of 2014.

Noninterest Income Analysis

(Dollar amounts in thousands)

Quarters Ended

June 30, 2014Percent Change From

June 30,

 2014

March 31,

 2014

June 30,

 2013

March 31,

 2014

June 30,

 2013

Service charges on deposit accounts

$

8,973

$

8,020

$

9,118

11.9

(1.6)

Wealth management fees

6,552

6,457

6,126

1.5

7.0

Card-based fees

5,969

5,335

5,547

11.9

7.6

Merchant servicing fees

2,916

2,709

2,899

7.6

0.6

Mortgage banking income

959

1,115

1,010

(14.0)

(5.0)

Other service charges, commissions, and fees

1,639

1,413

1,308

16.0

25.3

Total fee-based revenues

27,008

25,049

26,008

7.8

3.8

Net securities gains

4,517

1,073

216

N/M

N/M

Loss on early extinguishment of debt

(2,059)

N/M

N/M

Other income

1,196

937

1,003

27.6

19.2

Net trading gains (1)

531

191

214

N/M

N/M

Total noninterest income

$

31,193

$

27,250

$

27,441

14.5

13.7

N/M - Not meaningful.

(1)

Net trading gains result from changes in the fair value of diversified investment securities held in a grantor trust under deferred compensation agreements and are substantially offset by nonqualified plan expense for each period presented.

Total fee-based revenues increased 7.8% compared to the linked-quarter, reflecting increases across most categories. Growth was driven by higher levels of non-sufficient funds transactions, which comprise the majority of service charges on deposit accounts, a rise in card-based and merchant servicing fees due to increased transaction volumes, and continued positive performance in wealth management.

Total noninterest income of $31.2 million grew 14.5% from the first quarter of 2014. Sales of a non-accrual CDO and a portion of the Company's hedge fund investment resulted in pre-tax gains of $4.0 million, which were partially offset by a $2.1 million loss from the prepayment of $114.6 million in FHLB advances.

Compared to the second quarter of 2013, total fee-based revenues and total noninterest income grew 3.8% and 13.7%, respectively, due to growth in wealth management fees, card-based fees, and securities gains, excluding the loss on the prepayment of FHLB advances.

Noninterest Expense Analysis

(Dollar amounts in thousands)

Quarters Ended

June 30, 2014Percent Change From

June 30,

 2014

March 31,

 2014

June 30,

 2013

March 31,

 2014

June 30,

 2013

Salaries and employee benefits:

Salaries and wages

$

27,853

$

27,197

$

26,553

2.4

4.9

Nonqualified plan expense (1)

550

186

267

N/M

N/M

Retirement and other employee benefits

6,158

6,108

6,101

0.8

0.9

Total salaries and employee benefits

34,561

33,491

32,921

3.2

5.0

Net occupancy and equipment expense

7,672

9,391

7,793

(18.3)

(1.6)

Professional services

6,517

5,389

5,595

20.9

16.5

Technology and related costs

3,104

3,074

2,884

1.0

7.6

Advertising and promotions

2,307

1,613

2,033

43.0

13.5

Merchant card expense

2,383

2,213

2,321

7.7

2.7

Net OREO expense

1,569

1,556

1,084

0.8

44.7

Cardholder expenses

1,081

1,014

1,043

6.6

3.6

Other expenses

5,823

5,927

6,753

(1.8)

(13.8)

Total noninterest expense

$

65,017

$

63,668

$

62,427

2.1

4.1

Efficiency ratio (2)

63.60

%

66.66

%

64.27

%

N/M - Not meaningful.

(1)

Nonqualified plan expense results from changes in the Company's obligation to participants under deferred compensation agreements and is substantially offset by earnings on related assets included in noninterest income.

(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, trading gains (losses), and tax-equivalent adjusted BOLI income. Net securities gains are excluded from the efficiency ratio. The $2.1 million loss on the prepayment of FHLB advances and $830,000 of acquisition-related expenses are excluded from the efficiency ratio for the quarter ended June 30, 2014.

The Company's efficiency ratio improved from 66.66% to 63.60%. Total noninterest expense for the second quarter of 2014 increased 2.1% and 4.1% compared to the first quarter of 2014 and the second quarter of 2013, respectively. The rise in total noninterest expense compared to both prior periods was impacted by costs associated with increased sales production and $830,000 in professional services expenses related to the announced acquisitions. Excluding the acquisition-related expenses, total noninterest expense approximated the first quarter of 2014.

Compared to both prior periods presented, the increase in salaries and employee benefits expense resulted primarily from the timing of certain incentive compensation accruals and the increase in nonqualified plan expense, which is offset by net trading gains in noninterest income.

Net occupancy and equipment expense was elevated in the first quarter of 2014 due to higher utilities and snow removal costs.

As discussed above, increased legal expenses primarily related to acquisition activity drove the rise in professional services expense for the second quarter of 2014.

Advertising and promotions expense increased from the first quarter of 2014 due to the timing of certain advertising costs.

Higher levels of other expenses in the second quarter of 2013 resulted from recording $750,000 in adjusted amortization of the FDIC indemnification asset. No adjusted amortization of the FDIC indemnification asset was required during 2014 based on management's current estimates of future cash flows on covered loans.

LOAN PORTFOLIO AND ASSET QUALITY

Loan Portfolio Composition

(Dollar amounts in thousands)

As Of

June 30, 2014

Percent Change From

June 30,

 2014

March 31,

 2014

June 30,

 2013

March 31,

 2014

June 30,

 2013

Corporate

Commercial and industrial

$

2,073,018

$

1,917,396

$

1,743,139

8.1

18.9

Agricultural

330,626

321,343

288,632

2.9

14.5

Commercial real estate:

Office

444,956

454,962

449,641

(2.2)

(1.0)

Retail

377,427

389,010

383,447

(3.0)

(1.6)

Industrial

490,018

504,122

486,761

(2.8)

0.7

Multi-family

350,430

337,332

306,182

3.9

14.5

Construction

195,109

181,012

167,500

7.8

16.5

Other commercial real estate

798,324

822,934

759,367

(3.0)

5.1

Total commercial real estate

2,656,264

2,689,372

2,552,898

(1.2)

4.0

Total corporate loans

5,059,908

4,928,111

4,584,669

2.7

10.4

Consumer

Home equity

485,085

475,103

374,406

2.1

29.6

1-4 family mortgages

241,156

240,561

291,770

0.2

(17.3)

Installment

57,308

49,315

36,720

16.2

56.1

Total consumer loans

783,549

764,979

702,896

2.4

11.5

Total loans, excluding covered loans

5,843,457

5,693,090

5,287,565

2.6

10.5

Covered loans

104,867

122,387

171,861

(14.3)

(39.0)

Total loans

$

5,948,324

$

5,815,477

$

5,459,426

2.3

9.0

Total loans, excluding covered loans, of $5.8 billion rose by $150.4 million, or 10.6% on an annualized basis, from March 31, 2014 and $555.9 million from June 30, 2013. Both corporate and consumer loan portfolios continue to benefit from well-balanced growth distributed across the majority of the categories, reflecting credits of varying size within our market footprint. Strong growth in the commercial and industrial and agricultural loan categories reflects the impact of greater resource investments and expansion into certain sector-based lending areas, such as agri-business, asset-based lending, and healthcare.

During the second quarter of 2014, consumer loans grew 9.7% on an annualized basis from the first quarter of 2014, excluding $32.2 million of 1-4 family mortgage loans sold. The 29.6% year-over-year increase in the home equity portfolio reflects organic growth and the purchase of $100.6 million of high quality, shorter-duration, floating rate loans.

Asset Quality

(Dollar amounts in thousands)

As Of

June 30, 2014

Percent Change From

June 30,

 2014

March 31,

 2014

June 30,

 2013

March 31,

 2014

June 30,

 2013

Asset quality, excluding covered loans and covered OREO

Non-accrual loans

$

66,728

$

64,217

$

89,193

3.9

(25.2)

90 days or more past due loans

3,533

4,973

3,832

(29.0)

(7.8)

Total non-performing loans

70,261

69,190

93,025

1.5

(24.5)

Accruing troubled debt restructurings ("TDRs")

5,697

6,301

8,287

(9.6)

(31.3)

OREO

30,331

30,026

39,497

1.0

(23.2)

Total non-performing assets

$

106,289

$

105,517

$

140,809

0.7

(24.5)

30-89 days past due loans

$

24,167

$

12,861

$

21,756

87.9

11.1

Performing potential problem loans:

Special mention

$

102,543

$

84,908

$

113,310

20.8

(9.5)

Substandard

70,462

75,096

77,567

(6.2)

(9.2)

Total performing potential problem

loans (1)

$

173,005

$

160,004

$

190,877

8.1

(9.4)

Non-accrual loans to total loans

1.14

%

1.13

%

1.69

%

Non-performing loans to total loans

1.20

%

1.22

%

1.76

%

Non-performing assets to loans plus OREO

1.81

%

1.84

%

2.64

%

Performing potential problem loans to total corporate loans (1)

3.42

%

3.25

%

4.16

%

Allowance for Credit Losses

Allowance for loan losses

$

68,983

$

69,203

$

79,729

(0.3)

(13.5)

Allowance for covered loan losses

9,343

11,429

14,381

(18.3)

(35.0)

Total allowance for loan and covered loan losses

78,326

80,632

94,110

(2.9)

(16.8)

Reserve for unfunded commitments

1,616

1,616

2,866

(43.6)

Total allowance for credit losses

$

79,942

$

82,248

$

96,976

(2.8)

(17.6)

Allowance for credit losses to loans, including covered loans

1.34

%

1.41

%

1.78

%

Allowance for credit losses to non-accrual loans, excluding covered loans

105.80

%

110.28

%

92.60

%

(1)

Total performing potential problem loans excludes accruing TDRs of $3.6 million as of June 30, 2014, $2.4 million as of March 31, 2014, and $2.8 million as of June 30, 2013.

Non-performing assets, excluding covered loans and covered OREO, remained stable compared to March 31, 2014 and decreased by $34.5 million, or 24.5%, from June 30, 2013.

Performing potential problem loans were 3.42% of corporate loans at June 30, 2014, compared to 4.16% at June 30, 2013 and 3.25% at March 31, 2014.

The majority of loans 30-89 days past due at June 30, 2014 were in the process of renewal.

Charge-Off Data

(Dollar amounts in thousands)

Quarters Ended

June 30,

 2014

% of

Total

March 31,

 2014

% of

Total

June 30,

 2013

% of

Total

Net loan charge-offs (1):

Commercial and industrial

$

1,840

24.1

$

1,367

20.5

$

2,448

33.5

Agricultural

153

2.3

95

1.3

Office, retail, and industrial

3,221

42.1

1,025

15.4

1,418

19.4

Multi-family

265

3.5

89

1.3

183

2.5

Construction

232

3.0

503

7.6

845

11.5

Other commercial real estate

472

6.2

1,627

24.5

218

3.0

Consumer

1,615

21.1

1,890

28.4

2,110

28.8

Net loan charge-offs, excluding covered loans

7,645

100.0

6,654

100.0

7,317

100.0

Net covered loan charge-offs (1)

2

(340)

1,977

Total net loan charge-offs

$

7,647

$

6,314

$

9,294

Net loan charge-offs to average loans, excluding covered loans, annualized:

Quarter-to-date

0.53

%

0.48

%

0.57

%

Year-to-date

0.51

%

0.48

%

0.55

%

(1)

Amounts represent charge-offs, net of recoveries.

Net loan charge-offs declined 17.7% from the second quarter of 2013. In addition, year-to-date net loan charge-offs to average loans, excluding covered loans, annualized, decreased 7.3%.

CAPITAL MANAGEMENT

Capital Ratios

(Dollar amounts in thousands)

June 30,

 2014

March 31,

 2014

December 31,

 2013

June 30,

 2013

Regulatory

Minimum For "Well- Capitalized"

Excess Over

Required Minimums at June 30, 2014

Bank regulatory capital ratios:

Total capital to risk-weighted assets

13.37

%

13.72

%

13.86

%

13.89

%

10.00

%

34

%

$

229,632

Tier 1 capital to risk-weighted assets

12.20

%

12.49

%

12.61

%

12.63

%

6.00

%

103

%

$

422,543

Tier 1 leverage to average assets

10.37

%

10.54

%

10.24

%

10.31

%

5.00

%

107

%

$

430,619

Company regulatory capital ratios:

Total capital to risk-weighted assets

12.20

%

12.20

%

12.39

%

12.10

%

N/A

N/A

N/A

Tier 1 capital to risk-weighted assets

10.97

%

10.92

%

10.91

%

10.61

%

N/A

N/A

N/A

Tier 1 leverage to average assets

9.61

%

9.53

%

9.18

%

8.77

%

N/A

N/A

N/A

Company tier 1 common capital to risk-weighted assets (1)(2)

10.45

%

10.39

%

10.37

%

9.69

%

N/A

N/A

N/A

Company tangible common equity ratios (1)(3):

Tangible common equity to tangible assets

9.52

%

9.25

%

9.09

%

8.62

%

N/A

N/A

N/A

Tangible common equity, excluding other comprehensive loss, to tangible assets

9.71

%

9.49

%

9.43

%

8.75

%

N/A

N/A

N/A

Tangible common equity to risk-weighted assets

10.74

%

10.67

%

10.67

%

10.64

%

N/A

N/A

N/A

Non-performing assets to tangible common equity and allowance for credit losses

12.59

%

12.76

%

14.74

%

17.77

%

N/A

N/A

N/A

N/A - Not applicable.

(1)

Ratio is not subject to formal Federal Reserve regulatory guidance.

(2)

Excludes the impact of trust-preferred securities.

(3)

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.

The Company's total capital to risk-weighted assets remained stable compared to March 31, 2014. The Company's tier 1 leverage to average assets ratio increased 8 basis points from March 31, 2014 driven by strong earnings and the increase in allowable deferred tax assets, which more than offset the increase in average assets. The Bank's regulatory ratios exceeded all regulatory mandated ratios for characterization as "well-capitalized" as of June 30, 2014.

The Board of Directors approved an increase in the quarterly cash dividend from $0.07 to $0.08 per common share during the second quarter of 2014, which followed a dividend increase from $0.04 to $0.07 per common share in the fourth quarter of 2013.

About the Company

First Midwest is the premier relationship-based financial institution in the dynamic Chicagoland banking market. As one of Illinois' largest independent bank holding companies, First Midwest provides a full range of business and retail banking and wealth management services through approximately 90 banking offices located in metropolitan Chicago, northwest Indiana, central and western Illinois, and eastern Iowa. First Midwest has been recognized by J.D. Power as having the "Highest Customer Satisfaction with Retail Banking in the Midwest Region*" according to the 2014 Retail Banking Satisfaction StudySM. The Company website is www.firstmidwest.com.

* 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 StudySM.. Study based on 80,445 total responses measuring 21 providers in the Midwest region (IA, IL, KS, MO, MN, WI) and measures opinions of consumers with their primary banking provider. Proprietary study results are based on experiences and perceptions of consumers surveyed January 2014. Your experiences may vary. Visit JDPower.com.

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 is useful because it assists investors in assessing the Company's operating performance. This includes tax-equivalent net interest income (including its individual components), the efficiency ratio, tier 1 common capital to risk-weighted assets, tangible common equity to tangible assets, tangible common equity, excluding other comprehensive loss, to tangible assets, tangible common equity to risk-weighted assets, and non-performing assets to tangible common equity and allowance for credit losses. Although it is 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.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts but instead represent only the Company's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that actual results or events and the Company's financial condition may differ, possibly materially, from the anticipated results, events and financial condition indicated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect the Company's future results, see "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and the risks and other factors identified in other reports filed with the Securities and Exchange Commission ("SEC"). Forward-looking statements represent management's best judgment as of the date hereof based on currently available information. The Company undertakes no duty to update any forward-looking statements contained in this press release after the date hereof.

Additional Information for Stockholders of Great Lakes

The information contained in this press release does not constitute an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval. First Midwest will file a registration statement on Form S-4 with the SEC in connection with the proposed acquisition of Great Lakes. The registration statement will include a proxy statement of Great Lakes, which also will constitute a prospectus of First Midwest, that will be sent to the stockholders of Great Lakes. Stockholders of Great Lakes are advised to read the proxy statement and prospectus, as well as other documents filed with the SEC, when they become available because they will contain important information about First Midwest, Great Lakes and the proposed transaction. When filed, these documents can be obtained free of charge from the SEC's website at www.sec.gov. These documents also can be obtained free of charge by accessing First Midwest's website at www.firstmidwest.com under the tab "Investor Relations" and then under "SEC Filings." Alternatively, these documents, when available, can be obtained free of charge from First Midwest upon written request to First Midwest Bancorp, Inc., Attn: Corporate Secretary, One Pierce Place, Suite 1500, Itasca, Illinois 60143 or by calling (630) 875-7463, or from Great Lakes upon written request to Great Lakes Financial Resources, Inc., Attn: Thomas S. Agler, President, 4600 West Lincoln Highway, Matteson, Illinois 60443 or by calling (708) 283-5800.

Participants in this Transaction

First Midwest, Great Lakes and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Great Lakes stockholders in connection with the proposed transaction under the rules of the SEC. Certain information regarding the interests of these participants, and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the proxy statement and prospectus regarding the proposed transaction when it becomes available. Additional information about First Midwest and its directors and officers may be found in the definitive proxy statement of First Midwest relating to its 2014 Annual Meeting of Stockholders filed with the SEC on April 17, 2014. This definitive proxy statement can be obtained free of charge from the SEC's website at www.sec.gov.

Conference Call

A conference call to discuss the Company's results, outlook, and related matters will be held on Wednesday, July 23, 2014 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, 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 I.D. 10048372 beginning one hour after completion of the live call until 9:00 A.M. (ET) on July 31, 2014. 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.

Accompanying Financial Statements and Tables

Accompanying this press release is the following unaudited financial information:

  • Condensed Consolidated Statements of Financial Condition
  • Condensed Consolidated Statements of Income

Press Release and Additional Information Available on Website

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 www.firstmidwest.com/investorrelations.

Condensed Consolidated Statements of Financial Condition

Unaudited

(Amounts in thousands)

June 30,

 2014

March 31,

2014

December 31,

2013

June 30,

 2013

Assets

Cash and due from banks

$

155,099

$

198,544

$

110,417

$

130,992

Interest-bearing deposits in other banks

322,874

393,768

476,824

653,113

Trading securities, at fair value

18,231

17,774

17,317

15,451

Securities available-for-sale, at fair value

1,050,475

1,080,750

1,112,725

1,223,486

Securities held-to-maturity, at amortized cost

26,471

43,251

44,322

30,373

Federal Home Loan Bank and Federal Reserve Bank stock, at cost

35,588

35,161

35,161

35,161

Loans, excluding covered loans

5,843,457

5,693,090

5,580,005

5,287,565

Covered loans

104,867

122,387

134,355

171,861

Allowance for loan and covered loan losses

(78,326)

(80,632)

(85,505)

(94,110)

Net loans

5,869,998

5,734,845

5,628,855

5,365,316

OREO, excluding covered OREO

30,331

30,026

32,473

39,497

Covered OREO

9,825

7,355

8,863

13,681

FDIC indemnification asset

10,276

15,537

16,585

23,158

Premises, furniture, and equipment

118,305

119,219

120,204

118,285

Investment in BOLI

194,502

193,673

193,167

207,081

Goodwill and other intangible assets

274,962

275,605

276,366

279,421

Accrued interest receivable and other assets

188,310

183,011

180,128

208,310

Total assets

$

8,305,247

$

8,328,519

$

8,253,407

$

8,343,325

Liabilities and Stockholders' Equity

Noninterest-bearing deposits

$

2,025,666

$

1,961,371

$

1,911,602

$

1,855,906

Interest-bearing deposits

4,869,584

4,855,386

4,854,499

5,010,841

Total deposits

6,895,250

6,816,757

6,766,101

6,866,747

Borrowed funds

104,201

223,699

224,342

196,603

Senior and subordinated debt

190,996

190,964

190,932

214,843

Accrued interest payable and other liabilities

75,362

76,674

70,590

90,479

Total liabilities

7,265,809

7,308,094

7,251,965

7,368,672

Common stock

858

858

858

858

Additional paid-in capital

407,895

406,009

414,293

411,470

Retained earnings

878,607

866,132

853,740

813,516

Accumulated other comprehensive loss, net of tax

(15,271)

(19,772)

(26,792)

(10,299)

Treasury stock, at cost

(232,651)

(232,802)

(240,657)

(240,892)

Total stockholders' equity

1,039,438

1,020,425

1,001,442

974,653

Total liabilities and stockholders' equity

$

8,305,247

$

8,328,519

$

8,253,407

$

8,343,325

 

Condensed Consolidated Statements of Income

Unaudited

(Amounts in thousands, except per share data)

Quarters Ended

June 30,

 2014

March 31,

 2014

June 30,

 2013

Interest Income

Loans, excluding covered loans

$

60,634

$

59,002

$

59,111

Covered loans

2,605

1,938

4,151

Investment securities

8,019

8,005

7,657

Other short-term investments

745

745

834

Total interest income

72,003

69,690

71,753

Interest Expense

Deposits

2,511

2,597

3,003

Borrowed funds

169

383

385

Senior and subordinated debt

3,016

3,015

3,435

Total interest expense

5,696

5,995

6,823

Net interest income

66,307

63,695

64,930

Provision for loan and covered loan losses

5,341

1,441

5,813

Net interest income after provision for loan and covered loan losses

60,966

62,254

59,117

Noninterest Income

Service charges on deposit accounts

8,973

8,020

9,118

Wealth management fees

6,552

6,457

6,126

Card-based fees

5,969

5,335

5,547

Mortgage banking income

959

1,115

1,010

Other service charges, commissions, and fees

4,555

4,122

4,207

Net securities gains

4,517

1,073

216

Loss on early extinguishment of debt

(2,059)

Other income

1,727

1,128

1,217

Total noninterest income

31,193

27,250

27,441

Noninterest Expense

Salaries and employee benefits

34,561

33,491

32,921

Net occupancy and equipment expense

7,672

9,391

7,793

Professional services

6,517

5,389

5,595

Technology and related costs

3,104

3,074

2,884

Net OREO expense

1,569

1,556

1,084

Other expenses

11,594

10,767

12,150

Total noninterest expense

65,017

63,668

62,427

Income before income tax expense

27,142

25,836

24,131

Income tax expense

8,642

8,172

7,955

Net income

$

18,500

$

17,664

$

16,176

Diluted earnings per common share

$

0.25

$

0.24

$

0.22

Dividends declared per common share

$

0.08

$

0.07

$

0.04

Weighted average diluted common shares outstanding

74,333

74,159

74,024

Logo - http://photos.prnewswire.com/prnh/20140722/129605

SOURCE First Midwest Bancorp, Inc.


Sporting Kansas City vs. Manchester City Tickets: Ticket Down Has Slashed Ticket Prices for Manchester City vs. Sporting Kansas City on July 23rd Jul 22, 2014 09:50PM

Kansas City, MO (PRWEB) July 22, 2014

Ticket Down is a reliable source for cheap Sporting Kansas City vs. Manchester City tickets at Sporting Park in Kansas City, MO. This friendly exhibition match will take place on Wednesday, July 23rd. Tickets can be conveniently printed out for this exciting match right up to game time. Ticket Down can be reached toll free at 1-877-870-3653. All tickets for Sporting Kansas City vs. Manchester City are authentic and covered by Ticket Down's customer satisfaction guarantee.

About TicketDown.com:

Ticket Down delivers tickets to sold out concerts and events worldwide when no one else can, and they do so at discounted prices. This popular ticket exchange also has Sporting Kansas City vs. Manchester City tickets at the lowest online prices. Add promo/coupon code SOCCER-2014 for added savings on any ticket order.

Note: Ticket Down is not associated with any of the soccer teams or venues mentioned in this release. The names that are used in this release are purely for descriptive purposes. We are not affiliated with or do we endorse any artists or venues in this release.

Check out our discount codes online for all upcoming events. Ticket Down has low overheads which allow this well-known ticket site to keep prices low.

Read the full story at http://www.prweb.com/releases/2014/07/prweb12039792.htm


Print Audit® Releases Facilities Manager 3.1.0R Jul 22, 2014 09:30PM

Calgary, Alberta (PRWEB) July 22, 2014

Print Audit® has released another significant update for the Print Audit Facilities Manager web portal. Facilities Manager 3.1.0R includes fixes for issues found in previous releases of the software as well as numerous new reporting and alerting enhancements.

Print Audit Facilities Manager is a powerful, easy to use managed print services tool designed to remotely collect meter reads, automate supplies fulfillment and report service information for managing fleets of printers, copiers and multi-function devices. The product is currently used by over 1,000 dealers worldwide and boasts a 40% market share in the United States.

Facilities Manager version 3.1.0R offers several toner change detection enhancements, including the ability to detect if a toner cartridge has been changed based on the toner serial number for devices that provide it. The latest release also allows users to view the toner level and device life count before a cartridge was changed in order to track if cartridges are being replaced too soon.

For a complete list of changes in this release, please refer to the "Latest Release Notes" in the application's online help section.

For more information about Print Audit Facilities Manager, please visit:

http://www.printaudit.com/facilities-manager.asp

About Print Audit®:

Established in 1999 and headquartered in Calgary, Alberta, Print Audit's mission is to help office equipment dealers grow their businesses. The company does this through its Premier membership program which was created to teach dealers how to Win New Customers, Keep Current Customers and Build Recurring Revenue. To date, Premier members have acquired 950 new customers, added over $3 million in monthly recurring revenue and retained 92% of their print management clients. Premier members are working together to build the most influential group of office equipment dealers in the world.

Print Audit is the most comprehensive provider of device and print management solutions. The company not only helps members remotely manage their printer fleets, but has also developed a variety of tools that enable organizations to monitor and control user printing behavior. Premier members enjoy access to all of Print Audit solutions for a flat monthly fee.

Print Audit has offices located worldwide. Visit http://www.printaudit.com to learn more.

Read the full story at http://www.prweb.com/releases/2014/07/prweb12039534.htm


Predictions Of Home Prices For 2016 And Beyond Jul 22, 2014 09:30PM

Chicago, IL (PRWEB) July 22, 2014

Analysts at lending institutions like Peoples Home Equity are always making predictions about the future of the housing market based on the most current data. In this piece, we turn to the prediction of a different lender, the two tier lending institution, Bank of America Merrill Lynch (BAML). According to a MortgageNewsDaily.com July 21 release titled "Home Prices to Level Off and Reverse Course Within 2 Years - Analysts", BAML analysts believe home prices will set a peak by mid-2016. This price trajectory is based on the expectation of the Federal Reserve to raise short terms interest rates relatively more than long term rates. The S&P/ Case-Schiller Home Price Index (HPI) is expected to increase up to 155.5 by the end of 2014, and to 167.3 by the end of 2016 the peak year. Once at their 2016 peak home prices are then predicted to fall and not return to this 2016 peak until 2022. According to these analysts the housing market will enter a growth rate of 3 percent over the next 30 months which is much more stable than the 11 percent growth we've seen in 2013 and 9.5 percent growth in 2011. The results showed that the growth rate from this year until 2022 will average about 1.0 percent.

Case Shiller's Housing Price Index has been volatile over the past few years. Initially the index was over-valued by 9.7 percent in the first quarter of 2014 rising from a bottom of being -6.2 percent under-valued in 2011. Bank Of America Merrill Lynch predicts that home prices will be 12 overvalues by late 2015 early 16 which leads to a predicted retracement to at least fair value in 2016. No major interest rates changes are expected over this period.

If in fact, the housing market experiecnes a steady and stable recovery from 2016 to 2022 with low home price growth, first-time home buyers would have a good chance of purchasing a property. Peoples Home Equity believes Americans still need to put a couple years of credit history under their belt before being able to purchase a home. By the time 2016 comes around the positive effects of low unemployment and building credit history may perfectly coincide with falling home prices to create a perfect buying opportunity for first-time home buyers.

For prospective home buyers that are interested in purchasing a property now, consider obtaining a mortgage from Peoples Home Equity. Contact a Peoples Home Equity loan officer today at: 262-563-4026

Read the full story at http://www.prweb.com/releases/2014/07/prweb12039767.htm


Liberty University's New Residence Hall Nearing Completion, Will Welcome 1,200 Students for the Fall Semester Jul 22, 2014 09:15PM

Lynchburg, VA (PRWEB) July 22, 2014

This fall, Liberty University will open Residential Commons I, its first high-rise residence hall. The building features nine stories and approximately 1,200 beds. Construction is in its final stages -- exterior work is wrapping up, landscaping is underway, and interior work is bustling in preparation for students to begin moving in for the fall semester.

The new hall combines the social benefits of a traditional community hall with the privacy expected by incoming students. Each room accommodates two students and includes a private bath, with a long hallway connecting the rooms to encourage camaraderie. Hallways lead to a common area on each floor.

"We wanted to keep that traditional hall setting for students to build unity while also providing more privacy for the individual," said Jamey Sublett, director of Student Housing. "Each floor offers community space where students can hang out, study together, eat, play games, or watch TV."

These coed areas provide the luxury of a living room with plenty of comfortable seating, booths, and televisions capable of connecting to computers or game consoles. There is also a laundry room on each floor. The common areas are located in the center of the L-shaped building with a wing jutting out from either side. The wings, where the rooms are located, are divided by gender with one wing designated for male students and the other for female students.

Mark Hine, Liberty's senior vice president for Student Affairs, said that the new residence hall is designed to enhance community. As campus continues to grow -- with more than 13,600 resident students expected this fall -- he said it is vital to ensure that campus remains inviting to the individual.

"It is not so much about the masses," Hine said, "it is the personal touch that we want to give our students when they come to the university. Peer-on-peer contact is so important in a college student's life. … People want to know that they are important as individuals. When we are able to build lots of small communities through our prayer groups (and) our brother/sister dorm activities, it gives a very large campus a very small feel."

The new residence hall is another major milestone in Liberty's $500 million campus rebuilding. Hine said he is blown away by how much campus has changed since he was a student in the early 1970s.

"Over the years it has been absolutely amazing to watch the transformation of this piece of property as Liberty has sprung up out of the ground," he said.

When Hine was a student in the fall of 1973, Liberty's current campus was still a dairy farm. In the spring of 1978 he moved into Dorm 4, one of several temporary living facilities that were located on Liberty's Champion Circle. Several of those buildings were torn down recently to make room for the new residence hall.
"I watched the old pass out and the new come in, and it has been an amazing transition," Hine said.

Some of those old buildings are now being used as temporary academic space, as the campus rebuilding continues to take shape. They will soon be torn down to build more residence halls and complete the Residential Commons.

"This new residence hall is propelling us into the future," Hine said. "There are more coming behind it … these halls are giving Liberty the ability to provide state-of-the-art facilities for students while keeping the importance on the individual."

About Liberty University
Liberty University, founded in 1971, is the largest private, nonprofit university in the nation, the largest university in Virginia, and the largest Christian university in the world. Located near the Blue Ridge Mountains on more than 7,000 acres in Lynchburg, Va., Liberty offers more than 450 unique programs of study from the associate to the doctoral level. More than 200 programs are offered online. Liberty's mission is to train Champions for Christ with the values, knowledge, and skills essential for impacting tomorrow's world.

Read the full story at http://www.prweb.com/releases/2014/07/prweb12039512.htm


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