NasdaqGS:FMBI

Stock Analysis Report

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Executive Summary

First Midwest Bancorp, Inc. operates as the bank holding company for First Midwest Bank that provides various banking products and services.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has First Midwest Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FMBI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.5%

FMBI

5.6%

US Banks

0.7%

US Market


1 Year Return

-29.3%

FMBI

-13.5%

US Banks

20.1%

US Market

Return vs Industry: FMBI underperformed the US Banks industry which returned -14.6% over the past year.

Return vs Market: FMBI underperformed the US Market which returned 17.1% over the past year.


Shareholder returns

FMBIIndustryMarket
7 Day7.5%5.6%0.7%
30 Day6.1%8.1%6.4%
90 Day22.5%20.7%20.1%
1 Year-26.8%-29.3%-10.5%-13.5%22.6%20.1%
3 Year-31.8%-36.7%-7.3%-14.8%45.1%35.7%
5 Year-18.0%-26.7%18.8%4.3%79.7%60.3%

Price Volatility Vs. Market

How volatile is First Midwest Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Midwest Bancorp undervalued compared to its fair value and its price relative to the market?

4.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FMBI ($13.48) is trading below our estimate of fair value ($14.12)

Significantly Below Fair Value: FMBI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FMBI is poor value based on its PE Ratio (10.4x) compared to the US Banks industry average (10.1x).

PE vs Market: FMBI is good value based on its PE Ratio (10.4x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: FMBI is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: FMBI is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is First Midwest Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMBI's forecast earnings growth (8.7% per year) is above the savings rate (2.2%).

Earnings vs Market: FMBI's earnings (8.7% per year) are forecast to grow slower than the US market (24.1% per year).

High Growth Earnings: FMBI's earnings are forecast to grow, but not significantly.

Revenue vs Market: FMBI's revenue (1.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: FMBI's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FMBI's Return on Equity is forecast to be low in 3 years time (4.9%).


Next Steps

Past Performance

How has First Midwest Bancorp performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FMBI has high quality earnings.

Growing Profit Margin: FMBI's current net profit margins (21.9%) are lower than last year (28.3%).


Past Earnings Growth Analysis

Earnings Trend: FMBI's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: FMBI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FMBI had negative earnings growth (-23.2%) over the past year, making it difficult to compare to the Banks industry average (-3%).


Return on Equity

High ROE: FMBI's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is First Midwest Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: FMBI's Assets to Equity ratio (8x) is low.

Allowance for Bad Loans: FMBI has a sufficient allowance for bad loans (169%).

Low Risk Liabilities: 84% of FMBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: FMBI has an appropriate level of Loans to Assets ratio (69%).

Low Risk Deposits: FMBI's Loans to Deposits ratio (94%) is appropriate.

Level of Bad Loans: FMBI has an appropriate level of bad loans (1%).


Next Steps

Dividend

What is First Midwest Bancorp current dividend yield, its reliability and sustainability?

4.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FMBI's dividend (4.15%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: FMBI's dividend (4.15%) is low compared to the top 25% of dividend payers in the US market (4.3%).


Stability and Growth of Payments

Stable Dividend: FMBI's dividends per share have been stable in the past 10 years.

Growing Dividend: FMBI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.2%), FMBI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FMBI's dividends in 3 years are forecast to be covered by earnings (54.2% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Banks industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Mike Scudder (59 yo)

11.92yrs

Tenure

US$3,949,637

Compensation

Mr. Michael L. Scudder, also known as Mike, has been the Chief Executive Officer of First Midwest BanCorp, Inc. since September 14, 2008. Mr. Scudder has been the Chief Executive Officer of First Midwest B ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD3.95M) is about average for companies of similar size in the US market ($USD4.53M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Scudder
Chairman of the Board & CEO11.92yrsUS$3.95m0.30%
$ 4.6m
Mark Sander
President6yrsUS$2.42m0.21%
$ 3.3m
Patrick Barrett
Executive VP & CFO3.58yrsUS$1.46m0.065%
$ 995.2k
Thomas Prame
Executive VP & Director of Consumer Banking - First Midwest Bank8.17yrsUS$969.67k0.051%
$ 790.3k
Michael Jamieson
Executive VP & Director of Commercial Banking -First Midwest Bank4.58yrsUS$1.27m0.031%
$ 474.7k
Jo Boylan
Executive VP and Chief Information & Operations Officer4.58yrsno data0.028%
$ 432.2k
Ryan Cushing
Senior VP of Corporate Developmentno datano datano data
Nicholas Chulos
Executive VP8.58yrsUS$742.98k0.058%
$ 899.2k
Maurissa Kanter
Senior VP & Director of Corporate Communicationsno datano datano data
R. Rose
Executive VP & Chief Human Resources Officer1.42yrsno data0.014%
$ 217.1k
James Roolf
Senior Vice Presidentno datano datano data
Angela Putnam
Senior Vice President6.58yrsno data0.018%
$ 275.7k

4.6yrs

Average Tenure

58yo

Average Age

Experienced Management: FMBI's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Scudder
Chairman of the Board & CEO11.92yrsUS$3.95m0.30%
$ 4.6m
Mark Sander
President6yrsUS$2.42m0.21%
$ 3.3m
Michael Small
Independent Director10yrsUS$122.50k0.028%
$ 429.3k
Peter Henseler
Independent Director9.42yrsUS$118.50k0.024%
$ 371.7k
Ellen Rudnick
Lead Independent Director0.25yrUS$122.88k0.033%
$ 511.6k
Robert O'Meara
Chairman Emeritus2.75yrsUS$547.22kno data
J. Vanderwoude
Independent Director29.58yrsUS$152.50k0.011%
$ 168.6k
Phupinder Gill
Independent Director10yrsUS$122.50k0.026%
$ 400.3k
Kathryn Hayley
Independent Director4yrsUS$123.50k0.020%
$ 310.0k
Stephen Van Arsdell
Independent Director3.5yrsUS$130.00k0.014%
$ 222.3k
Barbara Boigegrain
Independent Director12yrsUS$127.50k0.036%
$ 550.2k
Thomas Brown
Independent Director3.5yrsUS$122.50k0.0026%
$ 40.4k

5.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: FMBI's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FMBI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Company Information

First Midwest Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Midwest Bancorp, Inc.
  • Ticker: FMBI
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.541b
  • Shares outstanding: 114.31m
  • Website: https://www.firstmidwest.com

Number of Employees


Location

  • First Midwest Bancorp, Inc.
  • 8750 West Bryn Mawr Avenue
  • Suite 1300
  • Chicago
  • Illinois
  • 60631-3655
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMBINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1983
FM6DB (Deutsche Boerse AG)YesCommon StockDEEURApr 1983
FMBI.PNasdaqGS (Nasdaq Global Select)DP 1/40 NC PPF AUSUSDMay 2020
FMBI.ONasdaqGS (Nasdaq Global Select)7% DP SH PF CUSUSDJun 2020

Biography

First Midwest Bancorp, Inc. operates as the bank holding company for First Midwest Bank that provides various banking products and services. The company accepts checking, NOW, money market, and savings acc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 23:37
End of Day Share Price2020/08/12 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.