NasdaqGS:FMBI

Stock Analysis Report

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, undervalued and pays a dividend.


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

-1.8%

FMBI

-0.3%

US Banks

0.06%

US Market


1 Year Return

-11.9%

FMBI

11.1%

US Banks

19.3%

US Market

Return vs Industry: FMBI underperformed the US Banks industry which returned 11.1% over the past year.

Return vs Market: FMBI underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

FMBIIndustryMarket
7 Day-1.8%-0.3%0.06%
30 Day-1.8%-0.5%1.7%
90 Day-3.7%0.6%9.0%
1 Year-9.6%-11.9%14.4%11.1%21.8%19.3%
3 Year-11.6%-16.8%24.7%15.7%49.5%39.9%
5 Year33.4%20.8%74.9%55.1%73.1%54.1%

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?

37.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FMBI ($20.79) is trading below our estimate of fair value ($33)

Significantly Below Fair Value: FMBI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FMBI is good value based on its PE Ratio (11.4x) compared to the Banks industry average (12.6x).

PE vs Market: FMBI is good value based on its PE Ratio (11.4x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: FMBI is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: FMBI is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is First Midwest Bancorp forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMBI's forecast earnings growth (6.8% per year) is above the savings rate (1.7%).

Earnings vs Market: FMBI's earnings (6.8% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: FMBI's revenue (7.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: FMBI's revenue (7.8% 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 (9.9%).


Next Steps

Past Performance

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

21.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FMBI has high quality earnings.

Growing Profit Margin: FMBI's current net profit margins (28%) are higher than last year (25.5%).


Past Earnings Growth Analysis

Earnings Trend: FMBI's earnings have grown significantly by 21.7% per year over the past 5 years.

Accelerating Growth: FMBI's earnings growth over the past year (26.5%) exceeds its 5-year average (21.7% per year).

Earnings vs Industry: FMBI earnings growth over the past year (26.5%) exceeded the Banks industry 12.2%.


Return on Equity

High ROE: FMBI's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: FMBI has a low level of unsold assets or inventory.

Debt Coverage by Assets: FMBI's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: FMBI's level of assets compared to its equity is low.

Allowance for Bad Loans: FMBI has a sufficient allowance for bad loans.

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

Loan Level: FMBI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FMBI's loans are broadly funded by customer deposits.

Level of Bad Loans: FMBI has an appropriate level of bad loans (0.68%)


Next Steps

Dividend

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

2.71%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: FMBI's dividend (2.69%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: FMBI's dividend (2.69%) is low compared to the top 25% of dividend payers in the US market (3.71%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.5%), 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 well covered by earnings (32.4% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Mike Scudder (58yo)

11.4yrs

Tenure

US$3,439,577

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 ($USD3.44M) is about average for companies of similar size in the US market ($USD3.81M).

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 & CEO11.4yrsUS$3.44m0.27% $6.2m
Mark Sander
President5.5yrsUS$2.19m0.19% $4.3m
Patrick Barrett
Executive VP & CFO3.1yrsUS$1.70m0.047% $1.1m
Thomas Prame
Executive VP & Director of Strategic Planning and Consumer Banking - First Midwest Bank7.7yrsUS$820.13k0.046% $1.0m
Michael Jamieson
Executive VP & Director of Commercial Banking -First Midwest Bank4.1yrsUS$1.14m0.031% $713.1k
Jo Boylan
Executive VP and Chief Information & Operations Officer4.1yrsno data0.024% $541.2k
Kate Lanagan
Assistant Vice President & IR Officer0yrsno datano data
Nicholas Chulos
Executive VP8.1yrsUS$742.98k0.053% $1.2m
Maurissa Kanter
Senior VP & Director of Corporate Communications0yrsno datano data
R. Rose
Executive VP & Chief Human Resources Officer0.9yrsno data0.0084% $193.2k

4.1yrs

Average Tenure

57yo

Average Age

Experienced Management: FMBI's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Scudder
Chairman of the Board & CEO11.4yrsUS$3.44m0.27% $6.2m
Mark Sander
President5.5yrsUS$2.19m0.19% $4.3m
Michael Small
Independent Director9.5yrsUS$113.00k0.027% $620.5k
Peter Henseler
Independent Director8.9yrsUS$120.08k0.023% $527.7k
Ellen Rudnick
Independent Director14.5yrsUS$107.50k0.033% $743.5k
Robert O'Meara
Chairman Emeritus2.3yrsUS$547.22kno data
J. Vanderwoude
Lead Independent Director2.3yrsUS$153.80k0.011% $260.0k
Phupinder Gill
Independent Director9.5yrsUS$123.34k0.025% $571.6k
Stephen Van Arsdell
Independent Director3yrsUS$119.48k0.015% $342.9k
Barbara Boigegrain
Independent Director11.5yrsUS$117.50k0.034% $787.9k

7.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: FMBI's board of directors are considered experienced (7.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 5.2%.


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$2.286b
  • Shares outstanding: 109.97m
  • Website: https://www.firstmidwest.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMBINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1983
FM6DB (Deutsche Boerse AG)YesCommon StockDEEURApr 1983

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 accounts, as well as various types of short-term and long-term certificates of deposit. Its loan products include working capital loans; accounts receivable financing; inventory and equipment financing; sector-based lending, including healthcare, asset-based lending, structured finance, and syndications; agricultural loans; and mortgages, home equity lines and loans, personal loans, specialty loans, and consumer secured loans, as well as funding for the construction, purchase, refinance, or improvement of commercial real estate properties. In addition, the company offers treasury management products and services comprising automated clearing house collection, lockbox, remote deposit capture, and financial electronic data interchange; wire transfer, account reconciliation, controlled disbursement, direct deposit, and positive pay services; information reporting services; corporate credit cards; and liquidity management, fraud prevention, and merchant services. Further, it provides fiduciary and executor, financial planning, investment advisory, employee benefit plan, and private banking services to corporate and public retirement plans, foundations and endowments, high net worth individuals, and multi-employer trust funds. Additionally, the company offers debit and automated teller machine, and credit cards; Internet and mobile, and telephone banking services; and financial education services. It serves commercial and industrial, commercial real estate, municipal, and consumer customers. The company operates 120 locations and 177 automated teller machines in greater Chicago metropolitan area, northwest Indiana, central and western Illinois, and eastern Iowa. First Midwest Bancorp, Inc. was incorporated in 1982 and is headquartered in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:25
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.