First Midwest Bancorp (FMBI) has reported 26.92 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $20.72 million, or $0.25 a share in the quarter, compared with $16.32 million, or $0.21 a share for the same period last year.
Revenue during the quarter grew 11.31 percent to $122.43 million from $109.99 million in the previous year period. Net interest income for the quarter rose 12.83 percent over the prior year period to $88.02 million. Non-interest income for the quarter rose 8.86 percent over the last year period to $39.71 million.
First Midwest Bancorp has made provision of $5.31 million for loan losses during the quarter, up 17.93 percent from $4.50 million in the same period last year.
Net interest margin contracted 15 basis points to 3.44 percent in the quarter from 3.59 percent in the last year period. Efficiency ratio for the quarter improved to 63.98 percent from 64.95 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Strong performance in 2016 was capped by solid fourth quarter results, reflecting balanced business execution against a backdrop of substantial growth," said Michael L. Scudder, president and chief executive officer. "Away from certain integration and organizational costs attendant to this growth, earnings per share improved 10% and 8% for the quarter and full year versus a year ago. This performance benefited from consistent sales success across major business lines as well as our acquisition of NI Bancshares Corporation in March of 2016. Further, we were very pleased to close on our acquisition of Standard Bancshares, Inc., a $2.3 billion asset financial institution, on January 6, 2017. As a result, we begin 2017 with $14 billion in assets, 40% larger than we began 2016, and having greatly strengthened our place as the premier commercial bank in metro Chicago."
Liabilities outpace assets growthTotal assets stood at $11,422.56 million as on Dec. 31, 2016, up 17.36 percent compared with $9,732.68 million on Dec. 31, 2015. On the other hand, total liabilities stood at $10,165.48 million as on Dec. 31, 2016, up 18.39 percent from $8,586.41 million on Dec. 31, 2015.
Loans outpace deposit growthNet loans stood at $8,168.06 million as on Dec. 31, 2016, up 15.24 percent compared with $7,088.08 million on Dec. 31, 2015. Deposits stood at $8,828.60 million as on Dec. 31, 2016, up 9.03 percent compared with $8,097.74 million on Dec. 31, 2015. Noninterest-bearing deposit liabilities were $2,766.75 million or 31.34 percent of total deposits on Dec. 31, 2016, compared with $2,414.45 million or 29.82 percent of total deposits on Dec. 31, 2015.
Investments stood at $1,959.66 million as on Dec. 31, 2016, up 45.52 percent or $612.98 million from year-ago. Shareholders equity stood at $1,257.08 million as on Dec. 31, 2016, up 9.67 percent or $110.81 million from year-ago.
Return on average assets moved up 6 basis points to 0.72 percent in the quarter from 0.66 percent in the last year period. At the same time, return on average equity increased 87 basis points to 6.42 percent in the quarter from 5.55 percent in the last year period.
Credit quality deterioratesFirst Midwest Bancorp witnessed a deterioration in credit quality during the quarter. Nonperforming assets moved up 48.74 percent or $30.15 million to $92 million on Dec. 31, 2016 from $61.85 million on Dec. 31, 2015. Nonperforming assets to total loans was 1.11 percent in the quarter, up from 0.86 percent in the last year period. Book value per share was $15.46 for the quarter, up 5.17 percent or $0.76 compared to $14.70 for the same period last year.
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