Midwest Banc Holdings, Inc. Reports Q3 Results
Reflects Previously Announced Measures That Position It for Future Growth
Midwest Bank and Trust Company Ends the Third Quarter as “Well Capitalized” with a 10.3% Total Risk Based Capital Ratio”
Strength and Stability Will Increase Further with $85.5 Million of TARP Capital, Announced Today
MELROSE PARK, Ill.--(BUSINESS WIRE)--Midwest Banc Holdings, Inc. (NASDAQ:MBHI) today reported a net loss of ($159.7) million for the third quarter ended September 30, 2008. These results reflect the previously announced pre-tax charges of: a $42 million provision for loan losses, a $64.5 million charge for losses on investments in preferred equity securities of Fannie Mae and Freddie Mac, and an $80 million non-cash goodwill impairment charge, due primarily to the recent decline in market capitalization which can be attributed in part to the losses on the GSE preferred securities. The net loss per share of ($5.76), compares to income per share for the second quarter of 2008 of $.06 and $0.20 for the third quarter of 2007.
Subsequent to the end of the quarter, Midwest Banc Holdings was informed that it has received preliminary approval to receive $85.5 million of new capital in the form of preferred stock to be issued to the U.S. Treasury under the TARP Capital Purchase Program. Institutions selected to participate in this program need the endorsement from their primary regulator as the program is designed to assist healthy financial institutions. The proceeds from the preferred stock issuance are expected to strengthen Midwest Banc Holdings' balance sheet, resulting in total risk based capital in excess of 11%, and provide support to Midwest Bank, its already well-capitalized subsidiary. It is expected that the preferred shares will be issued and the new capital will be received during the fourth quarter of 2008.
“Midwest’s third quarter results reflect certain actions, announced previously on September 16, that better position our company to take advantage of opportunities in the Chicago market during this challenging economic environment. Even though we realized the impact of these actions on our September 30, balance sheet, the Bank ended the third quarter “well-capitalized”, even without the additional capital anticipated from the Treasury’s TARP program,” said James Giancola, Chief Executive Officer of Midwest Banc Holdings, Inc.
Giancola noted that at the end of the third quarter, Midwest Bank had a Tier 1 Leverage Ratio of 7.10%; a Tier 1 Risk-Based Capital Ratio of 9.01%; and a Total Risk Based Capital Ratio of 10.27%.
Capital
The total risk based capital ratio for Midwest at September 30, 2008, was 8.04% on a consolidated company basis. Midwest Bank was well capitalized at September 30, 2008, with a total risk based capital ratio of 10.27%. Estimated on a pro forma basis, giving effect to the planned issuance of $85.5 million of preferred stock under the TARP, at September 30, 2008 the consolidated company would have had a total risk based capital ratio of 11.13% and the bank subsidiary would have had a total risk based capital ratio of 10.80%. The pro forma Bank ratio also exceeds the regulatory guidelines for classification as “well capitalized”, which is the highest regulatory capital rating given to financial institutions.
Loan Portfolio & Asset Quality
Average loans increased $53.2 million in the third quarter, but ending loans were down $7 million compared to June 30, 2008, partially due to $25.1 million in net loan charge offs. The migration from construction lending to commercial and industrial lending has continued, as commercial loans increased by $12 million in the third quarter while construction loans decreased $25 million.
In the third quarter, Midwest recorded a provision for loan losses of $42 million and net loan charge-offs totaling $25.1 million. The loan portfolio, non-performing loans, and provision for loan losses show that Midwest has made a strong commitment to asset quality.
| Loan Portfolio | |||||||||||||
| (dollars in millions) | |||||||||||||
| As of September 30, 2008 | |||||||||||||
| Total | Total | % | |||||||||||
| Loan Type | Balance | Availability | Commitment | Availability | |||||||||
| Land | $ | 81.4 | $ | 10.8 | $ | 92.2 | 11.7 | % | |||||
| Land Development, Residential | 41.9 | 8.0 | 49.9 | 16.0 | % | ||||||||
| Land Development, Commercial | 29.6 | 6.9 | 36.5 | 18.9 | % | ||||||||
| Land Development, Teardown | 6.5 | 2.2 | 8.7 | 25.5 | % | ||||||||
| Condo | 74.8 | 16.8 | 91.6 | 18.3 | % | ||||||||
| Residential Construction | 90.8 | 9.4 | 100.2 | 9.4 | % | ||||||||
| Commercial Construction | 55.4 | 15.9 | 71.3 | 22.2 | % | ||||||||
| Residential Non-Builder | 14.5 | 4.0 | 18.5 | 21.6 | % | ||||||||
| Buy Farmland | 1.5 | 0.4 | 1.9 | 20.1 | % | ||||||||
| Letters of Credit | - | 1.3 | 1.3 | 100.0 | % | ||||||||
| Total Const. & Land Development | $ | 396.5 | $ | 75.6 | $ | 472.1 | 16.0 | % | |||||
| 1-4 Residential | $ | 76.6 | $ | - | $ | 76.6 | 0.0 | % | |||||
| 1-4 ARM | 50.0 | 0.0 | 50.0 | 0.1 | % | ||||||||
| Total Residential | $ | 126.6 | $ | 0.0 | $ | 126.6 | 0.0 | % | |||||
| Home Equity Fixed | $ | 12.6 | $ | 0.5 | $ | 13.1 | 3.7 | % | |||||
| Home Equity Floating | 157.3 | 125.5 | 282.8 | 44.4 | % | ||||||||
| Total Home Equity | $ | 169.9 | $ | 126.0 | $ | 295.9 | 42.6 | % | |||||
| CRE - Non-Owner Occupied | $ | 688.0 | $ | 28.4 | $ | 716.4 | 4.0 | % | |||||
| CRE - Owner Occupied | 565.8 | 57.7 | 623.5 | 9.3 | % | ||||||||
| Total CRE | $ | 1,253.8 | $ | 86.1 | $ | 1,339.9 | 6.4 | % | |||||
| Commercial & Industrial | $ | 536.2 | $ | 369.9 | $ | 906.1 | 40.8 | % | |||||
| Agricultural | $ | 5.7 | $ | 0.9 | $ | 6.6 | 13.9 | % | |||||
| Consumer | $ | 8.1 | $ | 2.5 | $ | 10.6 | 23.6 | % | |||||
| Overdrafts, Settlement, Accounting Adjustments | $ | (2.5 | ) | $ | - | $ | - | ||||||
| Total Portfolio | $ | 2,494.2 | $ | 661.1 | $ | 3,157.9 | 20.9 | % | |||||
- Total construction & land loan commitments are 84% funded
- Land loans represent only 6.4% of the loan portfolio
| Loan Quality | ||||||||||||||
| (dollars in millions) | ||||||||||||||
| As of September 30, 2008 | ||||||||||||||
| Amount ($) | ||||||||||||||
| Delinquency | NPL | Partially |
Specifically |
|||||||||||
| Loan Type | Balance | ($) | (%) | ($) | (%) | Charged-Off | Reserved | |||||||
| Land | $ 81.4 | $ 1.6 | 1.98% | $ 7.5 | 9.19% | $ 5.2 | $ 0.6 | |||||||
| Land Development, Residential | 41.9 | - | 0.00% | - | 0.00% | - | - | |||||||
| Land Development, Commercial | 29.6 | 2.6 | 8.93% | - | 0.00% | - | - | |||||||
| Land Development, Teardown | 6.5 | - | 0.00% | - | 0.00% | - | - | |||||||
| Condo | 74.8 | 0.2 | 0.32% | 20.5 | 27.44% | 8.0 | 1.2 | |||||||
| Residential Construction | 90.8 | 4.5 | 4.96% | 3.1 | 3.36% | 5.5 | - | |||||||
| Commercial Construction | 55.4 | - | 0.00% | 3.5 | 6.25% | - | - | |||||||
| Residential Non-Builder | 14.5 | - | 0.00% | 0.7 | 4.52% | - | - | |||||||
| Buy Farmland | 1.5 | - | 0.00% | - | 0.00% | - | - | |||||||
| Letters of Credit | - | - | - | - | - | |||||||||
| Total Const. & Land Development | $ 396.5 | $ 9.0 | 2.27% | $ 35.2 | 8.87% | $ 18.7 | $ 1.8 | |||||||
| 1-4 Residential | $ 76.6 | $ 0.2 | 0.24% | $ 1.3 | 1.68% | $ 0.4 | $ - | |||||||
| 1-4 ARM | 50.0 | - | 0.00% | 1.8 | 3.58% | 0.4 | - | |||||||
| Total Residential | $ 126.6 | $ 0.2 | 0.14% | $ 3.1 | 2.43% | $ 0.8 | $ - | |||||||
| Home Equity Fixed | $ 12.6 | $ 0.0 | 0.23% | $ 0.0 | 0.04% | $ 0.1 | $ - | |||||||
| Home Equity Floating | 157.3 | 1.1 | 0.68% | 1.1 | 0.70% | 0.8 | 0.2 | |||||||
| Total Home Equity | $ 169.9 | $ 1.1 | 0.65% | $ 1.1 | 0.65% | $ 0.8 | $ 0.2 | |||||||
| CRE - Non-Owner Occupied | $ 688.0 | $ 2.7 | 0.39% | $ 5.5 | 0.79% | $ 0.1 | $ 1.2 | |||||||
| CRE - Owner Occupied | 565.8 | 3.9 | 0.69% | 11.3 | 1.99% | 10.4 | 0.8 | |||||||
| Total CRE | $ 1,253.8 | $ 6.6 | 0.53% | $ 16.7 | 1.34% | $ 10.5 | $ 2.1 | |||||||
| Commercial & Industrial | $ 536.2 | $ 7.7 | 1.44% | $ 4.4 | 0.81% | $ 11.2 | $ 1.4 | |||||||
| Agricultural | $ 5.7 | $ - | 0.00% | $ - | 0.00% | $ - | $ - | |||||||
| Consumer | $ 8.1 | $ 0.1 | 0.98% | $ 0.0 | 0.25% | $ 0.0 | $ - | |||||||
| Overdrafts, Settlement, Accounting Adjustments | $ (2.5) | $ - | $ - | $ - | $ - | |||||||||
| Total Portfolio | $ 2,494.2 | $ 24.7 | 0.99% | $ 60.5 | 2.42% | $ 42.0 | $ 5.5 | |||||||
- Non performing land loans totaling $7.5 million have been partially charged-off by 41%
- Non performing construction & land loans totaling $35.2 million have been partially charged-off by 35%
- Non performing CRE loans totaling $16.7 million have been partially charged-off by 39%
- Non-performing commercial loans totaling $4.4 million have been partially charged-off by 72%
- As of September 30, 2008, Midwest had loan loss reserves of $39.4 million or $1.58% of total loans
Liquidity
The company continued its effective liquidity management during the third quarter, a period of unprecedented tightness in the interbank credit market. September 30, 2008, non-interest bearing demand deposits were flat compared to June 30, 2008, while total deposits increased by $173 million. The increase in total deposits included a $176 million increase in retail certificates of deposits. Fed funds purchased and FRB discount window borrowings were zero as of September 30, down from $198 million at June 30, and other wholesale borrowings were up $40 million on a linked quarter basis.
Financial Highlights
On October 1, 2007, Midwest Banc Holdings, Inc. acquired Northwest Suburban Bancorp, Inc. Special merger-related charges were $114,000 in the first quarter 2008; $80,000 in the second quarter 2008; and $77,000 in the third quarter of 2008. Therefore, comparisons involving prior periods may be affected by these merger-related charges.
|
Earnings |
| (Loss) per common share was ($5.76) for the third quarter and ($5.93) for the nine months ended September 30, 2008, compared to income per share of: |
| -- $.06 for second quarter 2008 |
| -- $.20 for third quarter 2007 |
| -- $.58 for nine months 2007 |
|
-- Net (loss) was ($159.7) million for the third quarter and ($162.7) million for the nine months ended September 30, 2008, compared to: |
| -- $2.4 million for second quarter 2008 |
| -- $4.8 million for third quarter 2007 |
| -- $14.4 million for nine months 2007 |
| -- Net interest margin was 2.77% for the third quarter and 2.83% for the nine months ended September 30, 2008. The decrease in Midwest's margin to 2.77% for the quarter compared to 2.89% for the second quarter 2008 was wholly attributable to the impact of loans put on non-accrual status and the reduction in the dividend on the GSE preferred stock investment. This compares to: |
| -- 2.89% for second quarter 2008 |
| -- 3.10% for third quarter 2007 |
| -- 3.05% for nine months 2007 |
|
Loans and Loan Quality |
| -- Average loans in the third quarter increased |
| -- $53.2 million compared to second quarter 2008 |
| -- Annualized net charge-off rate was 3.98% for third quarter 2008, compared to: |
| -- .35% for the second quarter 2008 |
| -- .13% for the third quarter 2007 |
| -- Nonaccrual loans at September 30, 2008 were $60.5 million or 2.42% of loans, compared to: |
| -- 1.64% of loans at June 30, 2008 |
| -- 2.23% of loans at September 30, 2007 |
| -- Nonperforming assets at September 30, 2008 were $68.5 million, or 1.91% of assets, compared to: |
| -- 1.16% of assets at June 30, 2008 |
| -- 1.55% of assets at September 30, 2007 |
| -- Allowance for loan losses at September 30, 2008 was $39.4 million, or 1.58% of loans, compared to: |
| -- .90% of loans at June 30, 2008 |
| -- 1.24% of loans at September 30, 2007 |
| -- Allowance for loan losses to nonaccrual loans was 65% at September 30, 2008, compared to: |
| -- 55% at June 30, 2008 |
| -- 56% at September 30, 2007 |
| -- Loan delinquencies 30-89 days to loans were .99% at September 30, 2008, compared to: |
| -- .35% at June 30, 2008 |
| -- .49% at June 30, 2007 |
Additional financial data are contained in the accompanying statements, tables and schedules.
Hosting a Conference Call
Midwest will conduct a conference call to discuss these results November 3, 2008, at 11:00 A.M. eastern/10:00 A.M. central.
The webcast and call will be hosted by members of management. A brief discussion of results and trends will be followed by questions from professional investors and analysts invited to participate in the interactive portion of the discussion.
Interested parties wishing to participate in the interactive portion of the call can dial in to 800-860-2442 or +1 412-858-4600 for international calls. The live webcast can be accessed and will be available for replay at www.midwestbanc.com. The audio replay may be accessed through November 11, 2008 at 877-344-7529 or +1 412-317-0088. The replay passcode is 425125.
Franchise
Midwest Banc Holdings, Inc., with $3.6 billion in assets, provides a wide range of retail and commercial banking services, personal and corporate trust services, securities services and insurance brokerage services in the greater Chicago area. The principal operating subsidiaries of Midwest Banc Holdings, Inc. are Midwest Bank and Trust Company and Midwest Financial and Investment Services, Inc. Midwest has 29 banking offices and operates 31 ATMs. Midwest is a member of the Allpoint®/STARsf® surcharge-free network giving Midwest customers’ access to thousands of surcharge-free ATMs nationwide, with over 1,000 ATMs in the Chicagoland area.
Information on Midwest products, services and locations is available at: www.midwestbanc.com
Forward-Looking Statements
This press release contains certain "Forward-Looking Statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and should be reviewed in conjunction with the Company's Annual Report on Form 10-K and other publicly available information regarding the Company, copies of which are available from the Company upon request. Such publicly available information sets forth certain risks and uncertainties related to the Company's business which should be considered in evaluating "Forward-Looking Statements."
|
Financial Highlights Midwest Banc Holdings, Inc. (In thousands, except per share data) |
||||||||||
| Three Months Ended | ||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||
| 2008 | 2008 | 2008 | 2007 | 2007 | ||||||
|
Income Statement Data: |
||||||||||
|
Net income (Loss) |
$ (159,714) |
$ 2,428 |
$ (5,416) |
$ 4,222 |
$ 4,836 |
|||||
| Per Share Data: | ||||||||||
| Basic and diluted earnings | $ (5.76) | $ .06 | $ (.22) | $ .14 | $ .20 | |||||
| Cash dividends declared | — | .13 | .13 | .13 | .13 | |||||
| Book value | 5.89 | 11.76 | 12.14 | 11.94 | 11.69 | |||||
| “If converted” book value(11) | 6.74 | 12.06 | 12.41 | 12.23 | 11.69 | |||||
| Tangible book value(1) | 2.51 | 5.48 | 5.79 | 5.56 | 8.02 | |||||
| “If converted” tangible book value(1)(11) | 3.68 | 6.37 | 6.65 | 6.44 | 8.02 | |||||
| Stock price at period end | 4.00 | 4.87 | 12.78 | 12.42 | 14.77 | |||||
| Share Data: | ||||||||||
| Common shares outstanding – at period end | 27,859 | 27,859 | 27,839 | 27,804 | 24,406 | |||||
| Basic - average | 27,859 | 27,855 | 27,838 | 27,895 | 24,454 | |||||
| Diluted - average | 27,859 | 27,958 | 27,838 | 28,043 | 24,647 | |||||
|
Selected Financial Ratios: |
||||||||||
| Return on average assets | (17.25)% | .26% | (.59)% | .45% | .64% | |||||
| Return on average equity | (181.60) | 2.57 | (5.69) | 4.80 | 6.75 | |||||
| Net interest margin (tax equivalent) | 2.77 | 2.89 | 2.82 | 2.93 | 3.10 | |||||
| Efficiency ratio(2)(3) | 387 | 70 | 66 | 73 | 64 | |||||
| Dividend payout ratio | — | 233 | N/M | 91 | 67 | |||||
| Loans to deposits at period end | 99 | 107 | 103 | 101 | 101 | |||||
| Loans to assets at period end | 70 | 67 | 66 | 67 | 66 | |||||
| Equity to assets at period end | 5.78 | 9.95 | 10.22 | 10.16 | 9.41 | |||||
|
Tangible equity to tangible assets at period end(1)(4) |
3.24 | 5.51 | 5.75 | 5.62 | 6.65 | |||||
| Tier 1 capital to risk-weighted assets | 6.26 | 9.09 | 9.33 | 9.21 | 11.42 | |||||
| Total capital to risk-weighted assets | 8.04 | 10.43 | 10.61 | 10.17 | 12.52 | |||||
| Tier 1 leverage ratio | 4.94 | 7.38 | 7.47 | 7.33 | 8.99 | |||||
| Full time equivalent employees | 550 | 543 | 543 | 539 | 460 | |||||
| Balance Sheet Data: | ||||||||||
| Total earning assets | $ 3,176,629 | $ 3,275,580 | $ 3,298,143 | $ 3,266,461 | $ 2,750,334 | |||||
| Average earning assets | 3,263,571 | 3,274,335 | 3,276,965 | 3,301,501 | 2,736,154 | |||||
| Average assets | 3,682,449 | 3,686,350 | 3,686,269 | 3,721,444 | 3,020,254 | |||||
| Average loans | 2,512,653 | 2,459,486 | 2,459,830 | 2,453,292 | 1,989,119 | |||||
| Average securities | 715,219 | 762,889 | 765,966 | 808,774 | 698,541 | |||||
| Average deposits | 2,411,013 | 2,384,764 | 2,415,385 | 2,480,831 | 2,022,709 | |||||
|
Tangible share-holders’ equity(1) |
113,101 | 195,751 | 204,295 | 197,713 | 195,790 | |||||
| Average equity | 349,878 | 379,677 | 382,603 | 348,639 | 284,231 | |||||
|
See footnotes at end of statements, tables and schedules. |
||||||||||
|
Financial Highlights Midwest Banc Holdings, Inc. (In thousands, except per share data) |
||||||||
| Nine Months Ended | ||||||||
| September 30, | September 30, | |||||||
| 2008 | 2007 | |||||||
|
Income Statement Data: |
||||||||
|
Net income (Loss) |
$ |
(162,702 |
) |
$ |
14,355 |
|||
| Per Share Data: | ||||||||
| Basic earnings | $ | (5.93 | ) | $ | .58 | |||
| Diluted earnings | (5.93 | ) | .58 | |||||
| Cash dividends declared | .26 | .39 | ||||||
|
Share Data: |
||||||||
| Common shares outstanding - at period end | 27,859 | 24,406 | ||||||
| Basic – average | 27,851 | 24,594 | ||||||
| Diluted – average | 27,851 | 24,821 | ||||||
| Selected Financial Ratios: | ||||||||
| Return on average assets | (5.90 | )% | .64 | % | ||||
| Return on average equity | (58.64 | ) | 6.67 | |||||
| Net interest margin (tax equivalent) | 2.83 | 3.05 | ||||||
| Efficiency ratio(2)(3) | 155 | 66 | ||||||
| Dividend payout ratio | N/M | 68 | ||||||
| Full time equivalent employees | 550 | 460 | ||||||
| Balance Sheet Data: | ||||||||
| Total earning assets | $ | 3,176,629 | $ | 2,750,334 | ||||
| Average earning assets | 3,271,594 | 2,711,169 | ||||||
| Average assets | 3,685,013 | 2,999,877 | ||||||
| Average loans | 2,477,452 | 1,965,828 | ||||||
| Average securities | 747,905 | 700,778 | ||||||
| Average deposits | 2,403,748 | 2,013,327 | ||||||
| Tangible shareholders’ equity(1) | 113,101 | 195,790 | ||||||
| Average equity | 370,643 | 287,575 | ||||||
|
See footnotes at end of statements, tables and schedules. |
||||||||
|
Statement of Income Midwest Banc Holdings, Inc. (In thousands, except per share data) |
||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 30, | September 30, | ||||||||||||||||
| 2008 | 2008 | 2008 | 2007 | 2007 | ||||||||||||||||
|
Interest Income
Loans |
$ |
37,364 |
$ |
37,392 |
$ |
40,806 |
$ |
44,598 |
$ |
37,566 |
||||||||||
| Loans held for sale | — | — | — | — | 11 | |||||||||||||||
| Securities | ||||||||||||||||||||
| Taxable | 7,739 | 8,977 | 9,060 | 9,886 | 8,609 | |||||||||||||||
| Exempt from fed income taxes | 574 | 593 | 598 | 645 | 462 | |||||||||||||||
| Trading securities | — | — | — | — | 2 | |||||||||||||||
| Dividends from FRB and FHLB stock | 184 | 184 | 183 | 158 | 227 | |||||||||||||||
| Short-term investments | 27 | 98 | 148 | 150 | 297 | |||||||||||||||
| Total interest income | 45,888 | 47,244 | 50,795 | 55,437 | 47,174 | |||||||||||||||
| Interest Expense | ||||||||||||||||||||
| Deposits | 15,301 | 16,111 | 19,089 | 21,577 | 18,634 | |||||||||||||||
| Federal funds purchased | 563 | 672 | 815 | 673 | 64 | |||||||||||||||
| Securities sold under repurchase agreements | 3,338 | 3,482 | 3,178 | 3,443 | 3,137 | |||||||||||||||
| Advances from the FHLB | 2,779 | 2,437 | 3,482 | 3,811 | 3,640 | |||||||||||||||
| Junior subordinated debentures | 864 | 876 | 1,045 | 1,325 | 1,334 | |||||||||||||||
| Revolving note payable | 96 | 94 | 80 | 168 | 18 | |||||||||||||||
| Term note payable | 565 | 575 | 887 | 1,184 | — | |||||||||||||||
| Subordinated debt | 229 | 232 | 3 | — | — | |||||||||||||||
| Total interest expense | 23,735 | 24,479 | 28,579 | 32,181 | 26,827 | |||||||||||||||
| Net interest income | 22,153 | 22,765 | 22,216 | 23,256 | 20,347 | |||||||||||||||
| Provision for loan losses | 41,950 | 4,415 | 5,400 | 1,410 | 1,800 | |||||||||||||||
| Net interest income after provision for loan losses | ||||||||||||||||||||
| (19,797 | ) | 18,350 | 16,816 | 21,846 | 18,547 | |||||||||||||||
| Noninterest Income | ||||||||||||||||||||
| Service charges on deposit accounts | 1,918 | 1,953 | 1,963 | 1,953 | 1,535 | |||||||||||||||
| Gains (losses) on securities transactions | (16,652 | ) | 44 | 12 | 9 | 6 | ||||||||||||||
| Impairment charge on securities | (47,801 | ) | — | (17,586 | ) | — | — | |||||||||||||
| Gains on sale of loans | (75 | ) | — | — | 1 | 41 | ||||||||||||||
| Insurance and brokerage commissions | 448 | 683 | 560 | 488 | 685 | |||||||||||||||
| Trust | 451 | 482 | 449 | 508 | 453 | |||||||||||||||
| Increase in CSV of life insurance | 911 | 865 | 858 | 871 | 736 | |||||||||||||||
| Gain on sale of property | — | — | 15,196 | — | — | |||||||||||||||
| Other | 288 | 367 | 338 | 331 | 244 | |||||||||||||||
| Total noninterest income | (60,512 | ) | 4,394 | 1,790 | 4,161 | 3,700 | ||||||||||||||
| Noninterest Expenses | ||||||||||||||||||||
| Salaries and employee benefits | 12,515 | 11,015 | 13,040 | 11,665 | 9,740 | |||||||||||||||
| Occupancy and equipment | 3,211 | 3,093 | 2,899 | 2,740 | 2,362 | |||||||||||||||
| Professional services | 2,016 | 1,796 | 1,538 | 1,857 | 1,297 | |||||||||||||||
| Marketing | 575 | 713 | 576 | 614 | 538 | |||||||||||||||
| Foreclosed properties | 24 | 237 | 5 | (2 | ) | 4 | ||||||||||||||
| Amortization of intangible assets | 624 | 625 | 625 | 644 | 409 | |||||||||||||||
| Merger related charges | 77 | 80 | 114 | 1,333 | — | |||||||||||||||
| Loss on extinguishment of debt | — | — | 7,121 | — | — | |||||||||||||||
| Goodwill impairment | 80,000 | — | — | — | — | |||||||||||||||
| Other | 4,254 | 2,809 | 2,691 | 2,574 | 1,895 | |||||||||||||||
| Total noninterest expenses | 103,296 | 20,368 | 28,609 | 21,425 | 16,245 | |||||||||||||||
| Income (Loss) before income taxes | (183,605 | ) | 2,376 | (10,003 | ) | 4,582 | 6,002 | |||||||||||||
| Provision (benefit) for income taxes | (23,891 | ) | (52 | ) | (4,587 | ) | 360 | 1,166 | ||||||||||||
| Net Income (Loss) | $ | (159,714 | ) | $ | 2,428 | $ | (5,416 | ) | $ | 4,222 | $ | 4,836 | ||||||||
| Net Income (Loss) available to common shareholders |
$ |
(160,550 |
) |
$ |
1,592 |
$ |
(6,251 |
) |
$ |
4,018 |
$ |
4,836 |
||||||||
| Basic and diluted earnings per share | $ | (5.76 | ) | $ | .06 | $ | (.22 | ) | $ | .14 | $ | .20 | ||||||||
| Cash dividends declared per share | $ | — | $ | .13 | $ | .13 | $ | .13 | $ | .13 | ||||||||||
| Top line revenue (5) | $ | (38,359 | ) | $ | 27,159 | $ | 24,006 | $ | 27,417 | $ | 24,047 | |||||||||
| Noninterest income to top line revenue | N/M | 16 | % | 7 | % | 15 | % | 15 | % | |||||||||||
|
See footnotes at end of statements, tables and schedules. |
||||||||||||||||||||
|
Statement of Income Midwest Banc Holdings, Inc. (In thousands, except per share data) |
|||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||
| Increase | Increase | ||||||||||||||||
| 2008 | 2007 | (Decrease) | (Decrease) | ||||||||||||||
|
Interest Income
Loans |
$ |
115,562 |
$ |
110,447 |
$ |
5,115 |
4.6 |
% |
|||||||||
| Loans held for sale | — | 89 | (89 | ) | (100.0 | ) | |||||||||||
| Securities | |||||||||||||||||
| Taxable | 25,776 | 24,901 | 875 | 3.5 | |||||||||||||
| Exempt from fed income taxes | 1,765 | 1,624 | 141 | 8.7 | |||||||||||||
| Trading securities | — | 2 | (2 | ) | (100.0 | ) | |||||||||||
| Dividends from FRB and FHLB stock | 551 | 681 | (130 | ) | (19.1 | ) | |||||||||||
| Short-term investments | 273 | 688 | (415 | ) | (60.3 | ) | |||||||||||
| Total interest income | 143,927 | 138,432 | 5,495 | 4.0 | |||||||||||||
| Interest Expense | |||||||||||||||||
| Deposits | 50,501 | 55,115 | (4,614 | ) | (8.4 | ) | |||||||||||
| Federal funds purchased | 2,050 | 1,156 | 894 | 77.3 | |||||||||||||
| Securities sold under repurchase agreements | 9,998 | 7,859 | 2,139 | 27.2 | |||||||||||||
| Advances from the FHLB | 8,698 | 10,958 | (2,260 | ) | (20.6 | ) | |||||||||||
| Junior subordinated debentures | 2,785 | 3,950 | (1,165 | ) | (29.5 | ) | |||||||||||
| Revolving note payable | 270 | 18 | 252 | 1,400.0 | |||||||||||||
| Term note payable | 2,027 | — | 2,027 | 100.0 | |||||||||||||
| Subordinated debt | 464 | — | 464 | 100.0 | |||||||||||||
| Total interest expense | 76,793 | 79,056 | (2,263 | ) | (2.9 | ) | |||||||||||
| Net interest income | 67,134 | 59,376 | 7,758 | 13.1 | |||||||||||||
| Provision for loan losses | 51,765 | 3,481 | 48,284 | 1,387.1 | |||||||||||||
| Net interest income after provision | |||||||||||||||||
| for loan losses | 15,369 | 55,895 | (40,526 | ) | (72.5 | ) | |||||||||||
| Noninterest Income | |||||||||||||||||
| Service charges on deposit accounts | 5,834 | 4,744 | 1,090 | 23.0 | |||||||||||||
| Gains (losses) on securities transactions | (16,596 | ) | 23 | (16,619 | ) | (72,256.5 | ) | ||||||||||
| Impairment charge on securities | (65,387 | ) | — | (65,387 | ) | (100.0 | ) | ||||||||||
| Net Trading profits | — | — | — | — | |||||||||||||
| Gains on sale of loans | (75 | ) | 441 | (516 | ) | (117.0 | ) | ||||||||||
| Insurance and brokerage commissions | 1,691 | 1,799 | (108 | ) | (6.0 | ) | |||||||||||
| Trust | 1,382 | 1,349 | 33 | 2.5 | |||||||||||||
| Increase in CSV of life insurance | 2,634 | 2,192 | 442 | 20.2 | |||||||||||||
| Gain on sale of property | 15,196 | — | 15,196 | 100.0 | |||||||||||||
| Other | 993 | 768 | 225 | 29.3 | |||||||||||||
| Total noninterest income | (54,328 | ) | 11,316 | (65,644 | ) | (580.1 | ) | ||||||||||
| Noninterest Expenses | |||||||||||||||||
| Salaries and employee benefits | 36,570 | 30,550 | 6,020 | 19.7 | |||||||||||||
| Occupancy and equipment | 9,203 | 6,741 | 2,462 | 36.5 | |||||||||||||
| Professional services | 5,350 | 3,612 | 1,738 | 48.1 | |||||||||||||
| Marketing | 1,864 | 1,696 | 168 | 9.9 | |||||||||||||
| Foreclosed properties | 266 | 36 | 230 | 638.9 | |||||||||||||
| Amortization of intangible assets | 1,874 | 1,273 | 601 | 47.2 | |||||||||||||
| Merger related charges | 271 | (21 | ) | 292 | 1,390.5 | ||||||||||||
| Loss on extinguishment of debt | 7,121 | — | 7,121 | 100.0 | |||||||||||||
| Goodwill Impairment | 80,000 | — | 80,000 | 100.0 | |||||||||||||
| Other | 9,754 | 6,083 | 3,671 | 60.4 | |||||||||||||
| Total noninterest expenses | 152,273 | 49,970 | 102,303 | 204.7 | |||||||||||||
| Income (loss) before income taxes | (191,232 | ) | 17,241 | (208,473 | ) | (1,209.2 | ) | ||||||||||
| Provision (benefit) for income taxes | (28,530 | ) | 2,886 | (31,416 | ) | (1,088.6 | ) | ||||||||||
| Net Income (Loss) | $ | (162,702 | ) | $ | 14,355 | $ | (177,057 | ) | (1,233.4 | ) | |||||||
| Net Income (Loss) available to common shareholders | $ | (165,209 | ) | $ | 14,355 | $ | (179,564 | ) | (1,250.9 | ) | |||||||
| Basic earnings per share | $ | (5.93 | ) | $ | .58 | $ | (6.51 | ) | $ | (1,122.4 | ) | ||||||
| Diluted earnings per share | $ | (5.93 | ) | $ | .58 | $ | (6.51 | ) | $ | (1,122.4 | ) | ||||||
| Cash dividends declared per share | $ | .26 | $ | .39 | $ | (.13 | ) | $ | (33.3 | ) | |||||||
| Top line revenue (5) | $ | 12,806 | $ | 70,692 | $ | (57,886 | ) | $ | (81.9 | ) | |||||||
| Noninterest income to top line revenue | N/M | 16 | % | 15 | % | ||||||||||||
|
See footnotes at end of statements, tables and schedules. |
|||||||||||||||||
|
Balance Sheet Midwest Banc Holdings, Inc. (In thousands) |
||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2008 | 2008 | 2008 | 2007 | 2007 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash | $ | 111,769 | $ | 85,015 | $ 71,080 | $ | 70,111 | $ 46,963 | ||||||||||||
| Short-term investments | 1,674 | 3,042 | 31,415 | 14,388 | 17,241 | |||||||||||||||
| Securities available-for-sale | 618,215 | 710,803 | 737,089 | 710,881 | 660,986 | |||||||||||||||
| Securities held-to-maturity | 30,817 | 31,389 | 32,674 | 37,601 | 40,978 | |||||||||||||||
| Total securities | 649,032 | 742,192 | 769,763 | 748,482 | 701,964 | |||||||||||||||
| Federal Reserve and FHLB stock, at cost | 31,698 | 29,264 | 29,264 | 29,264 | 23,683 | |||||||||||||||
| Loans held for sale | — | — | — | — | — | |||||||||||||||
| Loans | 2,494,225 | 2,501,082 | 2,467,701 | 2,474,327 | 2,007,446 | |||||||||||||||
| Allowance for loan losses | (39,428 | ) | (22,606 | ) | (20,344 | ) | (26,748 | ) | (24,879 | ) | ||||||||||
| Net loans | 2,454,797 | 2,478,476 | 2,447,357 | 2,447,579 | 1,982,567 | |||||||||||||||
| Cash value of life insurance | 83,800 | 82,889 | 82,024 | 81,166 | 67,412 | |||||||||||||||
| Premises and equipment | 38,216 | 38,739 | 38,232 | 41,821 | 22,468 | |||||||||||||||
| Foreclosed properties | 8,025 | 2,375 | 2,527 | 2,220 | 2,246 | |||||||||||||||
| Goodwill and other intangibles | 94,136 | 174,947 | 176,861 | 177,451 | 89,443 | |||||||||||||||
| Other | 110,230 | 89,781 | 81,923 | 80,300 | 78,578 | |||||||||||||||
| Total assets | $ | 3,583,377 | $ | 3,726,720 | $ 3,730,446 | $ | 3,692,782 | $ 3,032,565 | ||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Noninterest-bearing | $ | 334,545 | $ | 334,813 | $ 313,727 | $ | 321,317 | $ 246,153 | ||||||||||||
| Interest-bearing | 2,178,459 | 2,005,230 | 2,090,985 | 2,136,831 | 1,748,774 | |||||||||||||||
| Total deposits | 2,513,004 | 2,340,043 | 2,404,712 | 2,458,148 | 1,994,927 | |||||||||||||||
| Federal funds purchased & FRB discount window | — | 198,000 | 184,500 | 81,000 | 12,000 | |||||||||||||||
| Securities sold under repurchase agreements | 297,650 | 297,650 | 394,764 | 283,400 | 317,118 | |||||||||||||||
| FHLB advances | 380,000 | 340,000 | 190,000 | 323,439 | 319,925 | |||||||||||||||
| Junior subordinated debentures | 60,774 | 60,757 | 60,741 | 60,724 | 65,861 | |||||||||||||||
| Revolving note payable | 20,600 | 7,600 | 6,500 | 2,500 | 2,500 | |||||||||||||||
| Term note payable | 55,000 | 55,000 | 55,000 | 70,000 | — | |||||||||||||||
| Subordinated debt | ||||||||||||||||||||