SOURCE: First Midwest Bancorp, Inc.

First Midwest Bancorp, Inc.

April 21, 2010 06:55 ET

First Midwest Bancorp, Inc. Announces 2010 First Quarter Results

Solid Core Operating Earnings -- Improved Credit Quality -- Strengthened Capital

ITASCA, IL--(Marketwire - April 21, 2010) - First Midwest Bancorp, Inc. (NASDAQ: FMBI)

Operating Performance

--  Net income available to common shareholders of $5.4 million, or $0.08
    per share, for first quarter 2010 vs. a net loss of $39.5 million, or
    $(0.73) per share, for fourth quarter 2009 and net income available to
    common shareholders of $3.2 million, or $0.07 per share, for first
    quarter 2009.
--  Pre-tax, pre-provision core operating earnings of $31.6 million, in
    line with fourth quarter 2009.
--  Average core transactional deposits up $477.9 million, or 13.9%,
    from first quarter 2009.
--  Tax equivalent net interest margin of 4.28% for first quarter 2010, up
    24 basis points from fourth quarter 2009 and 61 basis points from
    first quarter 2009.

Capital and Credit

--  Common equity offering of $196.7 million completed in January 2010.
--  Tangible common equity to tangible assets of 9.17%, up 288 basis
    points, or 45.8%, from fourth quarter 2009.
--  Non-performing assets reduced $44.2 million from December 31, 2009
    and $5.7 million from March 31, 2009.
--  Loan loss reserves to non-performing loans of 65% at March 31, 2010,
    compared to 58% at December 31, 2009 and 45% at March 31, 2009.

First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (NASDAQ: FMBI), the holding company of First Midwest Bank, today reported results of operations and financial condition for first quarter 2010. Net income for the quarter was $8.1 million, before adjustment for preferred dividends and non-vested restricted shares, with net income of $5.4 million, or $0.08 per share, available to common shareholders after such adjustments. This compares to net loss available to common shareholders of $39.5 million, or $(0.73) per share, for fourth quarter 2009 and net income available to common shareholders of $3.2 million, or $0.07 per share, for first quarter 2009.

Summary Update

In making the announcement, Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc., said, "Performance for the quarter was on plan, reflecting consistent, solid core earnings and improvement in our underlying credit performance. Supported by a continuing sales focus on clients' financial needs, our loan levels remained stable and core deposit inflows increased helping net interest margins to expand. As we closed the quarter, net interest margins stood 61 basis points, or 18%, higher than a year ago. Importantly, our efforts to remediate problem credits also showed positive results with non-performing assets declining 13% from year end, while past due loan levels fell for the 5th consecutive quarter."

Mr. Scudder continued, "While the economy is showing signs of improvement, the environment remains challenging as we strive to reduce problem asset levels and absorb higher credit remediation costs. During the quarter, we raised $196.7 million in common equity, solidifying an already well-capitalized balance sheet. This capital foundation, combined with our ability to generate strong core earnings, serves as a business advantage, leaving us better positioned to both navigate the credit cycle and pursue opportunities to enhance our core business."

Operating Performance

The Company generated another solid quarter of pre-tax, pre-provision core operating earnings of $31.6 million for first quarter 2010, compared to $32.7 million for fourth quarter 2009 and $36.7 million for first quarter 2009. The decrease from first quarter 2009 of $5.1 million was due primarily to increased expenses incurred to remediate problem assets, including expenses related to foreclosure and maintenance of other real estate owned ("OREO"). A reconciliation of earnings in accordance with U.S. generally accepted accounting principles ("GAAP") to the non-GAAP financial measures of pre-tax, pre-provision core operating earnings is presented on page 11 of this earnings release.

Total loans as of March 31, 2010 were $5.2 billion, relatively unchanged from December 31, 2009, and down $191.3 million from March 31, 2009, due primarily to an almost 40% decline in the residential and commercial construction loan portfolios, as the Company continued to remediate and reduce exposure to these lending categories throughout the year. Apart from these categories, the Company continued to lend as reflected in an increase for certain other commercial real estate loan portfolios.

Covered assets were $207.6 million at March 31, 2010, as compared to $223.2 million at December 31, 2009 and consist of loans and other real estate owned acquired from the former First DuPage Bank in an FDIC-assisted transaction, as well as a receivable from the FDIC. These assets earned a yield of 5.76% for the quarter.

Average core transactional deposits for first quarter 2010 were $3.9 billion, an increase of $477.9 million, or 13.9%, from first quarter 2009. The increase was primarily due to targeted sales activities and customers' desires to maintain more liquid deposits, which were reflected in a significant increase in money market balances.

Tax-equivalent net interest margin was 4.28% for first quarter 2010, an increase from 4.04% for fourth quarter 2009 and 3.67% for first quarter 2009. The yield on average earning assets for first quarter 2010 improved 12 basis points compared to fourth quarter 2009, while the Company's cost of funds declined 12 basis points compared to fourth quarter 2009. Wider spreads obtained on fixed and floating rate loan originations, greater core deposit inflows, and lower balances of time deposits and wholesale borrowings contributed to the improvement in the margin.

The yield on average earning assets for first quarter 2010 declined 2 basis points compared to first quarter 2009, while the Company's cost of funds declined 68 basis points compared to the same period in 2009. Sales of approximately $1 billion in securities since March 31, 2009 lowered the yield by approximately 16 basis points, while the proceeds were used to significantly reduce comparatively more expensive time deposits and wholesale borrowings. Additionally, wider spreads on loan originations substantially offset the decline in the investment portfolio yield.

Fee-based revenues of $20.0 million were relatively flat compared to first quarter 2009 and down 8.8% from fourth quarter 2009, reflecting normal seasonal trends. Year-over-year increases in trust and advisory services, merchant processing, and card-based fees were offset by a 7.3% decline in service charges on deposits.

For first quarter 2010, noninterest expense increased $17.1 million compared to first quarter 2009. The increase was substantially due to losses and expenses related to OREO and expenses incurred to remediate problem loans. The year-over-year increase in salaries and employee benefits of $3.5 million was due primarily to the increase in fair value of underlying investments for the Company's non-qualified deferred compensation plan. Such increase is partially offset by a corresponding increase in other noninterest income.

Asset Quality

Non-performing assets as of March 31, 2010 were $291.8 million, down $44.2 million, or 13.2%, compared to December 31, 2009, and down $5.7 million, or 1.9%, from March 31, 2009. The improvement was driven by disposals of other real estate owned, primarily residential properties, in addition to charge-offs and the return of restructured loans to performing status.

Non-performing loans represented 4.31% of total loans at March 31, 2010, compared to 4.77% and 4.78% at December 31, 2009 and March 31, 2009, respectively. Loans 30-89 days delinquent have trended downward for the past 5 quarters and totaled $28.0 million at March 31, 2009, down $9.9 million from December 31, 2009 and $26.3 million from March 31, 2009.

The reserve for loan losses represented 2.79% of total loans outstanding at March 31, 2010, compared to 2.78% at December 31, 2009 and 2.15% at March 31, 2009. The reserve for loan losses as a percentage of non-performing loans improved to 65% at March 31, 2010, compared to 58% at December 31, 2009 and 45% at March 31, 2009. The provision for loan losses for first quarter 2010 of $18.4 million exceeded charge-offs of $18.3 million and improved as compared to $93.0 million and $48.4 million for fourth quarter 2009 and first quarter 2009, respectively.

Other real estate owned was $62.6 million at March 31, 2010, compared to $57.1 million at December 31, 2009 and $39.0 million at March 31, 2009. The Company disposed of $22.7 million of OREO during first quarter 2010 at a loss of $5.5 million. The Company also recorded a $2.3 million write down on a single residential construction property that was reappraised. This compares to a loss of $315,000 for first quarter 2009. In addition, insurance, taxes, repairs, and other costs related to OREO were $2.2 million greater than first quarter 2009.

During first quarter 2010, the Company returned loans totaling $27.9 million to performing status that were classified as troubled debt restructurings at December 31, 2009, as a result of satisfactory payment performance after the modification of the loans.

Securities Portfolio

Approximately 95% of the Company's $1.2 billion available-for-sale portfolio remains highly liquid and is comprised of municipals, collateralized mortgage obligations ("CMOs"), and agency pass-through securities. The remainder consists of trust-preferred collateralized debt obligation pools ("CDOs") with a fair value of $12.1 million and an unrealized loss of $39.4 million, and miscellaneous other securities totaling $36.5 million.

Net securities gains were $3.1 million for first quarter 2010 and were net of an other-than-temporary impairment charge of $2.8 million associated with the Company's CDOs.

Capital Management

In January 2010, the Company issued a total of 18,818,183 shares of common stock at a price of $11.00 per share, which resulted in a $196.7 million increase in stockholders' equity, net of the underwriting discount and related expenses. The proceeds are being used by the Company for general operating purposes. As a result, regulatory and tangible common equity ratios were significantly improved in comparison to December 31, 2009. As reflected in the following table, all regulatory mandated ratios for characterization as "well-capitalized" were significantly exceeded as of March 31, 2010.

                                                               Excess Over
                                                    Minimum     Required
                                                     "Well-     Minimums
                                March 31, December Capitalized" at March
                                  2010    31, 2009    Level     31, 2010
                                 -------  --------  --------  -------------
                                                              (Amounts in
                                                                millions)
Regulatory capital ratios:

  Total capital to risk-weighted
   assets                          17.21%    13.92%    10.00%    72% $  460
  Tier 1 capital to risk-weighted
   assets                          15.15%    11.87%     6.00%   153% $  584
  Tier 1 leverage to average
   assets                          13.06%    10.18%     5.00%   161% $  597


Regulatory capital ratios,
 excluding preferred stock:

  Total capital to risk-weighted
   assets                          14.18%    10.92%    10.00%    42% $  267
  Tier 1 capital to risk-weighted
   assets                          12.13%     8.87%     6.00%   102% $  391
  Tier 1 leverage to average
   assets                          10.45%     7.61%     5.00%   109% $  404


  Tier 1 common capital to
   risk-weighted assets            10.80%     7.55%      N/A    N/A     N/A
  Tangible equity ratios:

  Tangible common equity to
   tangible assets                  9.17%     6.29%      N/A    N/A     N/A
  Tangible common equity,
   excluding other comprehensive
   loss, to tangible assets         9.42%     6.54%      N/A    N/A     N/A
  Tangible common equity to
   risk-weighted assets            10.50%     7.26%      N/A    N/A     N/A

The Board of Directors reviews the Company's capital plan each quarter, giving consideration to the current and expected operating environment, as well as an evaluation of various capital alternatives.

About the Company

First Midwest is the premier relationship-based banking franchise in the growing Chicagoland banking market. As one of the Chicago metropolitan area's largest independent bank holding companies, First Midwest provides the full range of both business and retail banking and trust and investment management services through approximately 100 offices located in 63 communities, primarily in metropolitan Chicago.

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions 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 events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that actual results and the Company's financial condition may differ, possibly materially, from the anticipated results 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, 2009 and other reports filed with the Securities and Exchange Commission. Forward-looking statements represent management's best judgment as of the date hereof based on currently available information. Except as required by law, the Company undertakes no duty to update the contents of this press release after the date hereof.

Conference Call

A conference call to discuss the Company's results, outlook and related matters will be held on Wednesday, April 21, 2010 at 10:00 A.M. (ET). Members of the public who would like to listen to the conference call should dial (800) 322-2803 (U.S. domestic) or (617) 614-4925 (international) and enter passcode number 974 20 234. 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 (888) 286-8010 (U.S. domestic) or (617) 801-6888 (international) passcode number 741 75 560 beginning at 12:00 P.M. (ET) on April 21, 2010 until 11:59 P.M. (ET) on April 28, 2010. 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:

--  Operating Highlights, Balance Sheet Highlights, and Capital Ratios
--  Condensed Consolidated Statements of Financial Condition
--  Condensed Consolidated Statements of Income
--  Pre-Tax, Pre-Provision Core Operating Earnings
--  Loan Portfolio Composition
--  Asset Quality
--  Charge-off Data
--  Securities Available-for-Sale

Press Release and Additional Information Available on Website

This press release, the accompanying financial statements and tables, and certain additional unaudited Selected Financial Information (totaling 4 pages) are available through the "Investor Relations" section of First Midwest's website at www.firstmidwest.com.


First Midwest Bancorp, Inc.             Press Release Dated April 21, 2010

Operating Highlights

Unaudited

(Dollar amounts in thousands except per share data)

                                                 Quarters Ended
                                     -------------------------------------
                                      March 31,   December 31,  March 31,
                                        2010          2009        2009
                                     -----------  -----------  -----------
Net income (loss)                    $     8,081  $   (37,491) $     5,727
Net income (loss) applicable to
 common shares                             5,428      (39,542)       3,155
Diluted earnings (loss) per common
 share                               $      0.08  $     (0.73) $      0.07
Return on average common equity             2.38%    (19.84%)         1.78%
Return on average assets                    0.43%     (1.92%)         0.28%
Net interest margin                         4.28%        4.04%        3.67%
Efficiency ratio                           58.41%       58.48%       52.33%



Balance Sheet Highlights

Unaudited

(Dollar amounts in thousands except
 per share data)
                                                     As Of
                                     -------------------------------------
                                      March 31,   December 31,  March 31,
                                        2010          2009        2009
                                     -----------  -----------  -----------
Total assets                         $ 7,592,907  $ 7,710,672  $ 8,252,576
Total loans, excluding covered loans   5,195,874    5,203,246    5,387,128
Total deposits                         5,864,104    5,885,279    5,508,382
Total stockholders' equity             1,143,768      941,521      903,612
Common stockholders' equity              950,768      748,521      710,612
Book value per share                 $     12.84  $     13.66  $     14.61
Period end shares outstanding             74,046       54,793       48,628


Capital Ratios

Unaudited


                                                     As Of
                                     -------------------------------------
                                      March 31,   December 31,  March 31,
                                        2010          2009        2009
                                     -----------  -----------  -----------
Regulatory capital ratios:

  Total capital to risk-weighted
   assets                                  17.21%       13.92%       14.62%
  Tier 1 capital to risk-weighted
   assets                                  15.15%       11.87%       11.85%
  Tier 1 leverage to average assets        13.06%       10.18%        9.60%


Regulatory capital ratios, excluding
 preferred stock:

  Total capital to risk-weighted
   assets                                  14.18%       10.92%       11.70%
  Tier 1 capital to risk-weighted assets   12.13%        8.87%        8.93%
  Tier 1 leverage to average assets        10.45%        7.61%        7.23%


Tier 1 common capital to risk-weighted
 assets                                    10.80%        7.55%        7.04%

Tangible common equity ratios:

  Tangible common equity to tangible
   assets                                   9.17%        6.29%        5.36%
  Tangible common equity, excluding
   other comprehensive loss, to tangible
   assets                                   9.42%        6.54%        5.83%
  Tangible common equity to risk-weighted
   assets                                  10.50%        7.26%        6.47%





First Midwest Bancorp, Inc.              Press Release Dated April 21, 2010


Condensed Consolidated Statements of Financial Condition

Unaudited

                                                         March  31,
                                                  ------------------------
(Dollar amounts in thousands)                         2010         2009
                                                  -----------  -----------
Assets
Cash and due from banks                           $    97,251  $   103,586
Funds sold and other short-term investments            29,663        3,741
Trading account securities, at fair value              14,114       10,885
Securities available-for-sale, at fair value        1,152,039    1,901,919
Securities held-to-maturity, at amortized cost         90,449       81,566
Federal Home Loan Bank and Federal Reserve Bank
 stock, at cost                                        59,428       54,768
Loans                                               5,195,874    5,387,128
Reserve for loan losses                              (144,824)    (116,001)
                                                  -----------  -----------
    Net loans                                       5,051,050    5,271,127
                                                  -----------  -----------
Other real estate owned                                62,565       38,984
Covered assets                                        207,609            -
Premises, furniture, and equipment                    128,180      117,880
Investment in bank owned life insurance               198,201      199,070
Goodwill and other intangible assets                  280,477      283,570
Accrued interest receivable and other assets          221,881      185,480
                                                  -----------  -----------
    Total assets                                  $ 7,592,907  $ 8,252,576
                                                  ===========  ===========

Liabilities and Stockholders' Equity

Deposits

  Transactional deposits                          $ 3,948,025  $ 3,522,289
  Time deposits                                     1,899,375    1,943,076
  Brokered deposits                                    16,704       43,017
                                                  -----------  -----------
    Total deposits                                  5,864,104    5,508,382
Borrowed funds                                        387,163    1,535,752
Subordinated debt                                     137,737      232,375
Accrued interest payable and other liabilities         60,135       72,455
                                                  -----------  -----------
Total liabilities                                   6,449,139    7,348,964
                                                  -----------  -----------
Preferred stock                                       190,392      189,768
Common stock                                              858          613
Additional paid-in capital                            434,704      211,325
Retained earnings                                     815,395      851,339
Accumulated other comprehensive loss                  (18,878)     (37,470)
Treasury stock, at cost                              (278,703)    (311,963)
                                                  -----------  -----------
    Total stockholders' equity                      1,143,768      903,612
                                                  -----------  -----------
    Total liabilities and stockholders' equity    $ 7,592,907  $ 8,252,576
                                                  ===========  ===========




First Midwest Bancorp, Inc.              Press Release Dated April 21, 2010

Condensed Consolidated Statements of Income

Unaudited

(Amounts in thousands, except
 per share data)                                    Quarters Ended
                                          --------------------------------
                                           March 31, December 31, March 31,
                                             2010       2009        2009
                                           ---------  ---------  ---------
Interest Income
Loans                                      $  64,480  $  65,668  $  65,447
Securities                                    13,952     14,848     25,682
Covered assets                                 2,962      1,419          -
Other                                            385        435        351
                                           ---------  ---------  ---------
    Total interest income                     81,779     82,370     91,480
                                           ---------  ---------  ---------

Interest Expense

Deposits                                      10,545     12,774     18,927
Borrowed funds                                 1,010      1,276      4,632
Subordinated debt                              2,286      2,379      3,702
                                           ---------  ---------  ---------
    Total interest expense                    13,841     16,429     27,261
                                           ---------  ---------  ---------
    Net interest income                       67,938     65,941     64,219
Provision for loan losses                     18,350     93,000     48,410
                                           ---------  ---------  ---------
Net interest income (loss) after provision
 for loan losses                              49,588    (27,059)    15,809
                                           ---------  ---------  ---------
Noninterest Income

Service charges on deposit accounts            8,381      9,977      9,044
Trust and investment management fees           3,593      3,704      3,329
Other service charges, commissions, and fees   4,172      4,280      4,006
Card-based fees                                3,893      4,000      3,755
                                           ---------  ---------  ---------
    Subtotal, fee-based revenues              20,039     21,961     20,134
Bank owned life insurance income                 248        281        541
Securities gains (losses) net                  3,057     (5,772)     8,222
Gain on FDIC-assisted transaction                  -     13,071          -
Gains on early extinguishment of debt              -      1,267          -
Other                                            977        939       (126)
                                           ---------  ---------  ---------
    Total noninterest income                  24,321     31,747     28,771
                                           ---------  ---------  ---------
Noninterest Expense

Salaries and employee benefits                26,884     27,592     23,311
Net occupancy expense                          6,040      5,453      6,506
Losses realized on other real estate owned     7,879     14,051        315
Other real estate owned expense, net           2,908      1,642        689
Loan remediation expense                       2,001      2,013        519
Federal Deposit Insurance Corporation
 ("FDIC") insurance                            2,532      2,720      2,361
Equipment expense                              2,128      2,208      2,331
Technology and related costs                   2,483      2,375      2,240
Other                                         12,618     12,467     10,122
                                           ---------  ---------  ---------
    Total noninterest expense                 65,473     70,521     48,394
                                           ---------  ---------  ---------
Income (loss) before taxes                     8,436    (65,833)    (3,814)
Income tax expense (benefit)                     355    (28,342)    (9,541)
                                           ---------  ---------  ---------
    Net income (loss)                          8,081    (37,491)     5,727
Preferred dividends                           (2,572)    (2,569)    (2,563)
Net (income) loss applicable to non-vested
 restricted shares                               (81)       518         (9)
                                           ---------  ---------  ---------
  Net Income (Loss) Applicable to Common
   Shares                                  $   5,428  $ (39,542) $   3,155
                                           =========  =========  =========
    Diluted Earnings (Loss) Per Common
     Share                                 $    0.08  $   (0.73) $    0.07
    Dividends Declared Per Common Share    $    0.01  $    0.01  $    0.01
    Weighted Average Diluted Shares
     Outstanding                              70,469     54,152     48,493





First Midwest Bancorp, Inc.              Press Release Dated April 21, 2010

Pre-Tax, Pre-Provision Core Operating Earnings (1)

Unaudited

(Dollar amounts in thousands)

                                                Quarters Ended
                                     -------------------------------------
                                       March 31,  December 31,  March 31,
                                         2010         2009         2009
                                     -----------  -----------  -----------
Income (loss) before taxes           $     8,436  $   (65,833) $    (3,814)
Provision for loan losses                 18,350       93,000       48,410
                                     -----------  -----------  -----------
    Pre-tax, pre-provision earnings       26,786       27,167       44,596
                                     -----------  -----------  -----------
Non-Operating Items

Securities gains (losses), net             3,057       (5,772)       8,222
Gain on FDIC-assisted transaction              -       13,071            -
Gains on early extinguishment of debt          -        1,267            -
Losses realized on other real estate
 owned                                    (7,879)     (14,051)        (315)
    Total non-operating items             (4,822)      (5,485)       7,907
                                     -----------  -----------  -----------
Pre-tax, pre-provision core
 operating earnings                  $    31,608  $    32,652  $    36,689
                                     ===========  ===========  ===========
Risk-weighted assets                 $ 6,381,679  $ 6,433,094  $ 6,600,684
Pre-tax, pre-provision core
 operating earnings to risk-weighted
 assets                                     1.97%        2.03%        2.22%


(1) 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 has
    provided this non-GAAP performance result. The Company believes that
    this non-GAAP financial measure is useful because it allows investors
    to assess the Company's operating performance. Although this non-GAAP
    financial measure is intended to enhance investors' understanding of
    the Company's business and performance, this non-GAAP financial
    measure should not be considered an alternative to GAAP.





First Midwest Bancorp, Inc.              Press Release Dated April 21, 2010

Loan Portfolio Composition

Unaudited

(Dollar amounts in thousands)

                             % of
                   3/31/10   Total  12/31/09     3/31/09  12/31/09 3/31/09
                  ---------- -----  ---------- ---------- -------  -------
Commercial and
 industrial       $1,454,714  28.0% $1,438,063 $1,508,175    1.2%    (3.5%)
Agricultural and
 farmland            200,527   3.9%    209,945    219,178   (4.5%)   (8.5%)
Commercial real
 estate:
 Office, retail,
  and industrial   1,239,583  23.9%  1,212,965  1,086,987    2.2%    14.0%
 Residential
  construction and
  land               276,322   5.3%    313,919    466,195  (12.0%)  (40.7%)
 Commercial
  construction and
  land               233,662   4.5%    231,518    340,215    0.9%   (31.3%)
 Multifamily         348,178   6.7%    333,961    311,865    4.3%    11.6%
 Investor-owned
  rental property    121,040   2.3%    119,132    132,049    1.6%    (8.3%)
 Other commercial
  real estate        669,462  12.9%    679,851    593,262   (1.5%)   12.8%
                  ---------- -----  ---------- ---------- -------  -------
  Total commercial
   real estate     2,888,247  55.6%  2,891,346  2,930,573   (0.1%)   (1.4%)
                  ---------- -----  ---------- ---------- -------  -------

Consumer:

 Home equity         464,655   8.9%    470,523    480,283   (1.2%)   (3.3%)
 Real estate 1-4
  family             139,840   2.7%    139,983    185,486   (0.1%)  (24.6%)
 Other consumer       47,891   0.9%     53,386     63,433  (10.3%)  (24.5%)
                  ---------- -----  ---------- ---------- -------  -------
  Total consumer     652,386  12.5%    663,862    729,202   (1.7%)  (10.5%)
                  ---------- -----  ---------- ---------- -------  -------
 Total loans      $5,195,874 100.0% $5,203,246 $5,387,128   (0.1%)   (3.6%)
                  ========== =====  ========== ========== =======  =======
Office, Retail,
 and Industrial

 Office           $  396,749  32.0% $  394,228 $  346,806    0.6%    14.4%
 Retail              346,218  27.9%    331,803    295,336    4.3%    17.2%
 Industrial          496,616  40.1%    486,934    444,845    2.0%    11.6%
                  ---------- -----  ---------- ---------- -------  -------
  Total office,
   retail, and
   industrial     $1,239,583 100.0% $1,212,965 $1,086,987    2.2%    14.0%
                  ========== =====  ========== ========== =======  =======





First Midwest Bancorp, Inc.              Press Release Dated April 21, 2010

Asset Quality

Unaudited


(Dollar amounts in
 thousands)                                    As Of
                           -----------------------------------------------
                                       % of
                                       Loan    % of
                            3/31/10  Category  Total  12/31/09    3/31/09
                           --------- --------  -----  ---------  ---------
Non-accrual loans:

 Commercial and industrial $  38,095     2.62%  17.6% $  28,193  $  33,245
 Agricultural and farmland     2,532     1.26%   1.2%     2,673         12
 Office, retail, and
  industrial                  18,204     1.47%   8.4%    21,396     12,769
 Residential construction
  and land                    93,412    33.81%  43.2%   112,798    107,766
 Commercial construction
  and land                    20,023     8.57%   9.3%    20,864      8,984
 Multi-family                  8,349     2.40%   3.9%    12,486      6,989
 Investor-owned rental
  property                     5,947     4.91%   2.8%     4,351      2,536
 Other commercial real
  estate                      15,859     2.37%   7.3%    28,006      4,493
 Consumer                     13,652     2.09%   6.3%    13,448      6,747
                           --------- ========  -----  ---------  ---------
  Total non-accrual loans    216,073     4.16% 100.0%   244,215    183,541
                           --------- ========  =====  ---------  ---------

90 days past due loans
 (still accruing
 interest):

 Commercial and industrial     3,938     0.27%  49.2%     1,964     16,208
 Agricultural and farmland         -     0.00%   0.0%         -      1,751
 Office, retail, and industrial  676     0.05%   8.5%       330     12,719
 Residential construction and
  land                             -     0.00%   0.0%        86     20,593
 Commercial construction
  and land                         -     0.00%   0.0%         -      2,942
 Multi-family                    368     0.11%   4.6%        55      3,356
 Investor-owned rental
  property                       201     0.17%   2.5%       225        524
 Other commercial real estate     23     0.00%   0.3%       130      5,434
 Consumer                      2,789     0.43%  34.9%     1,289     10,402
                           --------- ========  -----  ---------  ---------
  Total 90 days past due
   loans                       7,995     0.15% 100.0%     4,079     73,929
                           --------- ========  =====  ---------  ---------
  Total non-performing
   loans                     224,068                    248,294    257,470
Restructured loans, still
 accruing                      5,168                     30,553      1,063
Other real estate owned
 ("OREO")                     62,565                     57,137     38,984
                           ---------                  ---------  ---------
  Total non-performing
   assets                  $ 291,801                  $ 335,984  $ 297,517
                           =========                  =========  =========
30-89 days past due loans  $  28,018                  $  37,912  $  54,311
Reserve for loan losses    $ 144,824                  $ 144,808  $ 116,001


Asset Quality Ratios

Non-accrual loans to loans      4.16%                      4.69%      3.41%
Non-performing loans to loans   4.31%                      4.77%      4.78%
Non-performing assets to
 loans plus OREO                5.55%                      6.39%      5.48%
Reserve for loan losses to
 loans                          2.79%                      2.78%      2.15%
Reserve for loan losses to
 non-accrual loans                67%                        59%        63%
Reserve for loan losses to
 non-performing loans             65%                        58%        45%






First Midwest Bancorp, Inc.              Press Release Dated April 21, 2010

Charge-off Data

Unaudited

(Dollar amounts in                        Quarters Ended
 thousands)                -----------------------------------------------
                                      % of
                                      Loan        % of
                           3/31/10  Category     Total  12/31/09   3/31/09
                          --------  --------     -----  --------  --------
Net loans charged-off:

 Commercial and
  industrial              $  4,463      0.31%     24.3% $ 23,320  $ 12,093
 Agricultural and farmland     141      0.07%      0.7%      180         -
 Office, retail, and
  industrial                 1,644      0.13%      9.0%    3,265       878
 Residential construction
  and land                   4,452      1.61%     24.3%   38,315    10,719
 Commercial construction
  and land                     270      0.12%      1.5%    2,715         -
 Multifamily                   512      0.15%      2.8%    2,325        43
 Investor-owned rental
  property                     254      0.21%      1.4%    1,229       120
 Other commercial real
  estate                     4,195      0.63%     22.9%    7,907       (51)
 Consumer                    2,403      0.37%     13.1%    3,205     2,476
                          --------  ========     -----  --------  --------
  Total net loans
   charged-off            $ 18,334      0.35%    100.0% $ 82,461  $ 26,278
                          ========  ========     =====  ========  ========
Net loan charge-offs to
 average loans,
 annualized:

 Quarter-to-date              1.43%        -         -      6.17%     1.98%
 Year-to-date                 1.43%        -         -      3.08%     1.98%




First Midwest Bancorp, Inc.              Press Release Dated April 21, 2010

Securities Available-For-Sale

Unaudited

(Dollar amounts in  thousands)


                            U.S.
                          Treasury  Collateralized   Other
                            and       Mortgage      Mortgage    State and
                           Agency    Obligations     Backed     Municipal
                          --------   ----------    ----------   ----------
As of March 31, 2010
Amortized cost            $    755   $  269,457    $  181,953   $  635,036
Gross unrealized gains
 (losses):
   Gross unrealized gains        1        8,807         8,533        8,046
   Gross unrealized losses       -       (1,761)          (29)      (6,666)
                          --------   ----------    ----------   ----------
     Net unrealized gains
      (losses)                   1        7,046         8,504        1,380
                          --------   ----------    ----------   ----------
Fair value                $    756   $  276,503    $  190,457   $  636,416
                          ========   ==========    ==========   ==========

As of December 31, 2009
Amortized cost            $    756   $  299,920    $  239,567   $  649,269
Gross unrealized gains
 (losses):
   Gross unrealized gains        -       10,060         9,897        8,462
   Gross unrealized losses       -       (2,059)         (182)      (6,051)
                          --------   ----------    ----------   ----------
     Net unrealized gains
      (losses)                   -        8,001         9,715        2,411
                          --------   ----------    ----------   ----------
Fair value                $    756   $  307,921    $  249,282   $  651,680
                          ========   ==========    ==========   ==========

As of March 31, 2009
Amortized cost            $    122   $  598,367    $  344,503   $  861,547
Gross unrealized gains
 (losses):
   Gross unrealized gains        -       14,094        11,575        9,136
   Gross unrealized losses       -       (3,120)          (24)     (16,134)
                          --------   ----------    ----------   ----------
     Net unrealized gains
      (losses)                   -       10,974        11,551       (6,998)
                          --------   ----------    ----------   ----------
Fair value                $    122   $  609,341    $  356,054   $  854,549
                          ========   ==========    ==========   ==========


                       Collateralized
                            Debt
                         Obligations    Other          Total
                          ---------   ----------    -----------
As of March 31, 2010
Amortized cost            $ 51,596    $   34,949    $ 1,173,746
Gross unrealized gains
 (losses):
   Gross unrealized gains        -         1,177         26,564
   Gross unrealized losses (39,418)         (397)       (48,271)
                          --------    ----------    -----------
     Net unrealized gains
      (losses)             (39,418)          780        (21,707)
                          --------    ----------    -----------
Fair value                $ 12,178    $   35,729    $ 1,152,039
                          ========    ==========    ===========
                                
As of December 31, 2009
Amortized cost            $ 54,359    $   44,238    $ 1,288,109
Gross unrealized gains
 (losses):
   Gross unrealized gains        -         2,376         30,795
   Gross unrealized losses (42,631)       (1,221)       (52,144)
                          --------    ----------    -----------
     Net unrealized gains
      (losses)             (42,631)        1,155        (21,349)
                          --------    ----------    -----------
Fair value                $ 11,728    $   45,393    $ 1,266,760
                          ========    ==========    ===========
As of March 31, 2009
Amortized cost            $ 75,922    $   56,612    $ 1,937,073
Gross unrealized gains
 (losses):
   Gross unrealized gains        -           104         34,909
   Gross unrealized losses (41,395)       (9,390)       (70,063)
                          --------    ----------    -----------
     Net unrealized gains
      (losses)             (41,395)       (9,286)       (35,154)
                          --------    ----------    -----------
Fair value                $ 34,527    $   47,326    $ 1,901,919
                          ========    ==========    ===========

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