SOURCE: First Midwest Bancorp, Inc.

First Midwest Bancorp, Inc.

April 22, 2009 06:55 ET

First Midwest Bancorp, Inc. Announces First Quarter 2009 Earnings per Share of $0.07, up From ($0.57) Loss per Share for Fourth Quarter 2008

Stable Core Operations -- Improved Capital Ratios -- Higher Loan Loss Reserves

ITASCA, IL--(Marketwire - April 22, 2009) - First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (NASDAQ: FMBI) --

First Quarter 2009 Operating Performance

--  After tax earnings of $3.2 million and diluted EPS of $0.07, as
    compared to diluted LPS of ($0.57) for fourth quarter 2008 and EPS of $0.51
    for first quarter 2008.
    
--  Pre-tax earnings, excluding provision expense and net securities
    gains, improved 6.3% from first quarter 2008.
    
--  Net interest margin of 3.67% up 14 basis points versus 3.53% for first
    quarter 2008 and down 4 basis points from 3.71% for fourth quarter 2008.
    
--  Efficiency ratio improved to 52.3% compared to 54.0% for first quarter
    2008 and 59.1% for fourth quarter 2008.
    

Capital, Credit, and Other

--  Tangible common equity and Tier 1 regulatory capital ratios of 5.36%
    and 11.85%, respectively, increased from year-end 2008.
    
--  Loan loss reserves increased to 2.15% of total loans as compared to
    1.75% at December 31, 2008, with first quarter 2009 provision exceeding
    charge-offs by $22 million.
    
--  Non-performing loans, including loans past due 90 days, increased to
    4.80% of total loans compared to 3.21% at December 31, 2008.
    
--  Net securities gains realized of $8.2 million; tax benefits recognized
    of $4.0 million.
    

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 2009. Net income available to common shareholders was $3.2 million for first quarter 2009, or $0.07 per share, compared to a net loss of $27.6 million, or ($0.57) per share, for fourth quarter 2008 and net income of $25.0 million, or $0.51 per share, for first quarter 2008. Return on average assets was 0.15% for first quarter 2009 as compared to (1.31%) and 1.25% for fourth quarter and first quarter 2008, respectively. Return on average common equity was 1.78% for first quarter 2009 as compared to (13.92%) and 13.75% for fourth quarter and first quarter 2008, respectively.

In announcing these results, Michael L. Scudder, the Company's President and Chief Executive Officer said, "Our first quarter operating results reflect both the impact of current economic conditions on our credit costs as well as the implementation of planned initiatives designed to respond to those conditions. Operating performance for the quarter, excluding credit costs, was up from a year ago as we profited from stronger interest margins, the stability of our core funding base, targeted loan growth and lower operating expenses. During the quarter, we made the difficult decision to reduce our dividend and took advantage of improvement in the debt security markets to reduce the size of our securities portfolio. In combination, these actions helped further our objective of enhancing our tangible capital position as well as improve our overall liquidity."

Mr. Scudder further commented, "Non-performing asset levels are elevated from year-end as we work through a longer and more challenging remediation cycle for real estate and construction-related credits. Recognizing this, and reflective of current conditions, we have increased our level of loan loss provisioning, bringing our level of reserves to 2.15% of total loans, 1.7 times the level existent a year ago.

"Our solid capital base and ability to generate strong core earnings continue to serve as an advantage as we navigate the difficulties of the current credit cycle. This advantage enables First Midwest to continue to meet the financial needs of our customers and communities and leaves us and our shareholders better positioned to benefit as conditions improve."

Operating Performance

The Company recorded a loss before taxes of $3.8 million for first quarter 2009, as compared to income of $30.1 million for first quarter 2008, with the difference largely due to higher provision for loan losses. Provision for loan losses for first quarter 2009 was $48.4 million as contrasted to $9.1 million for first quarter 2008. Excluding the provision for loan losses and net securities gains from each period, income before taxes was $36.4 million for first quarter 2009 and $34.2 million for first quarter 2008.

Total loans as of March 31, 2009 were $5.39 billion, up 2.0% annualized compared to fourth quarter 2008, with the increase reflecting net growth in commercial and industrial loans as well as commercial real estate lending offset by a decline in outstanding loans for residential land and development. Total average deposits for first quarter 2009 were $5.51 billion, compared to $5.64 billion for fourth quarter 2008, a 1.76% decline largely reflective of normal seasonality.

Tax equivalent net interest margin was 3.67% for first quarter 2009, down 4 basis points from fourth quarter 2008 and up 14 basis points from first quarter 2008. Over the past 4 quarters, the yield on average earning assets declined 117 basis points while the cost of funds declined 150 basis points.

Fee-based revenues were $20.1 million for first quarter 2009, a decline of approximately $3.0 million, compared to both fourth quarter and first quarter 2008. This decrease largely stems from reduced consumer spending and the impact on overdraft fees as well as card-based fees. Further, trust and investment advisory fees declined 16% as compared to first quarter 2008, resulting from the adverse impact of lower asset values on revenues.

In comparison to first quarter 2008, bank-owned life insurance income declined $1.9 million for first quarter 2009. In the current environment, management elected to accept lower market returns in order to reduce its risk to market volatility through investment in shorter-duration, lower yielding money market instruments.

For first quarter 2009, noninterest expense declined by $0.9 million, or 1.9%, compared to first quarter 2008, largely due to a decline in salaries and benefits expense of $2.9 million and reflective of a 4% decline in full time equivalent employees. This reduction substantially offset a $2.1 million increase in FDIC insurance premiums and a $1.4 million increase in legal and operating costs associated with credit remediation and foreclosed real estate. Overall, the efficiency ratio improved to 52.3% for first quarter 2009, compared to 59.1% for fourth quarter 2008 and 54.0% for first quarter 2008.

Credit Remediation

Non-performing loans as of March 31, 2009 were $258.5 million compared to $172.1 million at December 31, 2008, with residential land and development loans comprising 50% of the March 31, 2009 total. Non-accrual loans at March 31, 2009 totaled $183.5 million compared to $127.8 million at December 31, 2008, while loans 90 days past due and still accruing totaled $73.9 million, up from $37.0 million at December 31, 2008. Restructured loans totaled $1.1 million at March 31, 2009, a decline of $6.3 million from December 31, 2008.

As of March 31, 2009, loans 30-89 days past due totaled $54.3 million, a decline of $61.9 million from December 31, 2008. The decline reflects the benefits derived from expanded resources focused on the early remediation of potential problem loans as well as the migration of certain loans to other problem categories.

Foreclosed real estate was $39.0 million as of March 31, 2009 as compared to $24.4 million as of December 31, 2008. All properties are recorded at current appraised values, less estimated selling costs.

As of March 31, 2009, the Company increased its reserve for loan losses to $116.0 million, up $22.1 million from December 31, 2008 and $51.2 million from March 31, 2008. The reserve for loan losses represented 2.15% of total loans outstanding at March 31, 2009, compared to 1.75% at December 31, 2008 and 1.28% at March 31, 2008. Net charge offs totaled $26.3 million during first quarter 2009, compared to $18.3 million in fourth quarter 2008 and $6.1 million in first quarter 2008. The provision for loan losses for first quarter 2009 was $48.4 million, compared to $42.4 million and $9.1 million for fourth quarter 2008 and first quarter 2008, respectively.

Securities Portfolio

Net securities gains were $8.2 million for first quarter 2009, compared to a net securities loss of $34.2 million for fourth quarter 2008 and a net securities gain of $5.0 million for first quarter 2008. During first quarter 2009, the Company took advantage of opportunities in the market to sell $323.5 million of mortgage-backed and municipal securities for a gain of $11.1 million. This was partially offset by impairment charges totaling $2.9 million associated with two trust-preferred collateralized debt obligations ("CDOs"). Management elected early adoption of Financial Accounting Standards Board ("FASB") Staff Position ("FSP") FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments. As a consequence, estimated credit losses were recognized on these two CDOs during the quarter, and a cumulative adjustment of $11.3 million was recorded to retained earnings, representing the estimated liquidity components of previously recorded other-than-temporary impairments associated with its CDOs.

Income Taxes

In first quarter 2009, the Company increased the amount of benefit recognized with respect to certain previously identified uncertain tax positions under FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109, Accounting for Income Taxes ("FIN 48") as a result of certain developments in pending tax audits. The increase in recognized tax benefit resulted in a $4.0 million reduction in income tax expense in first quarter 2009.

Capital Management

Regulatory and tangible common equity ratios were improved in comparison to December 31, 2008, with such improvement driven by retention of earnings and a decline in total assets, with the decline primarily due to a reduction in the size of the investment securities portfolio. All regulatory mandated ratios for characterization as "well capitalized" were significantly exceeded as of March 31, 2009:

                                                               Excess Over
                                                    Minimum     Required
                                                    "Well-     Minimums at
                                 March   December Capitalized"  March 31,
                               31, 2009  31, 2008    Level        2009
                               --------  --------  ----------  -----------
                                                               (Amounts in
                                                                millions)

Regulatory Capital Ratios:
   Tier 1 Risk Based              11.85%    11.60%       6.00%   98%  $386

   Total Risk Based Capital       14.62%    14.36%      10.00%   46%  $305

   Tier 1 Leverage Capital         9.60%     9.41%       5.00%   92%  $375

Regulatory Capital
 Ratios, Excluding
 Preferred Equity:
   Tier 1 Risk Based               8.93%     8.68%       6.00%   49%  $193

   Total Risk Based Capital       11.70%    11.44%      10.00%   17%  $112

   Tier 1 Leverage Capital         7.23%     7.04%       5.00%   45%  $182

Tangible Common Equity Ratios:
   Tangible Common Equity          5.36%     5.23%        N/A   N/A    N/A

   Tangible Common Equity,
    Excluding OCI                  5.83%     5.45%        N/A   N/A    N/A

On March 16, 2009, the Company announced, in an effort to build capital during this period of economic uncertainty, a reduction in its quarterly common stock dividend from $0.225 per share to $0.010 per share. This dividend action will enable the retention of approximately $42 million in capital over the course of a year.

The Board of Directors reviews the Company's capital plan each quarter, giving cognizance to the current and expected operating environment as well as an evaluation of various capital alternatives. Consistent with its dividend history, First Midwest would look to return to a more normalized dividend level as circumstances permit.

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 some 100 offices located in 62 communities, primarily in metropolitan Chicago. First Midwest was recently recognized by the Alfred P. Sloan awards for Business Excellence in Workforce Flexibility in the greater Chicago Area.

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, 2008 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 22, 2009 at 10:00 a.m. (ET). Members of the public who would like to listen to the conference call should dial 1-866-713-8395 (U.S. domestic) or 1-617-597-5309 (international) and enter passcode number 697 31 099. The number should be dialed at least 10 minutes prior to the start of the conference 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/aboutinvestor_overview.asp. There is no charge to access the call. For those unable to listen to the live broadcast, a replay will be available on the Company's website or by dialing 1-888-286-8010 (U.S. domestic) or 1-617-801-6888 (international) passcode number 172 71 558, beginning approximately one hour after the event through 11:59 p.m. (ET) on April 29, 2009. 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, Stock Performance
    Data, and Capital Ratios (1 page)
--  Condensed Consolidated Statements of Condition (1 page)
--  Condensed Consolidated Statements of Income (1 page)
--  Loan Portfolio Composition (1 page)
--  Asset Quality (1 page)
    

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 3 pages) are available through the "Investor Relations" section of First Midwest's website at http://www.firstmidwest.com/aboutinvestor_selected.asp.

First Midwest Bancorp, Inc.             Press Release Dated April 22, 2009


Operating Highlights
Unaudited                                        Quarters Ended
                                     -------------------------------------
(Amounts in thousands except per      March 31,     December    March 31,
 share data)                             2009       31, 2008       2008
                                     -----------  -----------  -----------
Net income (loss)                    $     5,727  $   (26,890) $    25,038
Net income (loss) applicable to
 common shares                             3,155      (27,568)      24,979
Diluted earnings per share           $      0.07  $     (0.57) $      0.51
Return on average equity                    1.78%      (13.92%)      13.75%
Return on average assets                    0.15%       (1.31%)       1.25%
Net interest margin                         3.67%        3.71%        3.53%
Efficiency ratio                           52.33%       59.06%       54.02%



Balance Sheet Highlights
Unaudited                                            As Of
                                     -------------------------------------
(Dollar amounts in thousands except   March 31,     December    March 31,
 per share data)                        2009        31, 2008      2008
                                     -----------  -----------  -----------
Total assets                         $ 8,252,576  $ 8,528,341  $ 8,315,368
Total loans                            5,387,128    5,360,063    5,045,765
Total deposits                         5,508,382    5,585,754    5,721,562
Total stockholders’ equity               903,612      908,279      737,927
Common stockholders’ equity              710,612      715,949      737,927
Book value per common share          $     14.61  $     14.72  $     15.20
Period end common shares outstanding      48,628       48,630       48,561

Capital Ratios
Unaudited                                            As Of
                                     -------------------------------------
                                      March 31,     December    March 31,
                                        2009        31, 2008      2008
                                     -----------  -----------  -----------
Regulatory capital ratios:
  Total capital to risk-weighted
   assets                                  14.62%       14.36%       11.63%
  Tier 1 capital to risk-weighted
   assets                                  11.85%       11.60%        9.08%
  Tier 1 leverage to average assets         9.60%        9.41%        7.51%

Regulatory capital ratios, excluding
 preferred equity:
  Total capital to risk-weighted
   assets                                  11.70%       11.44%       11.63%
  Tier 1 capital to risk-weighted
   assets                                   8.93%        8.68%        9.08%
  Tier 1 leverage to average assets         7.23%        7.04%        7.51%

Tangible common equity ratios:
  Tangible common equity to tangible
   assets                                   5.36%        5.23%        5.62%
  Tangible common equity, excluding
   other comprehensive loss, to
   tangible assets                          5.83%        5.45%        5.73%







First Midwest Bancorp, Inc.             Press Release Dated April 22, 2009


Condensed Consolidated Statements of Condition
Unaudited                                                 March 31,
                                                  ------------------------
(Amounts in thousands)                                2009         2008
                                                  -----------  -----------
Assets
Cash and due from banks                           $   103,586  $   171,037
Funds sold and other short-term investments             3,741        1,808
Trading account securities                             10,885       17,305
Securities available-for-sale                       1,901,919    2,100,602
Securities held to maturity, at amortized cost         81,566       95,651
Federal Home Loan Bank and Federal Reserve Bank
 stock, at cost                                        54,768       54,767
Loans                                               5,387,128    5,045,765
Reserve for loan losses                              (116,001)     (64,780)
                                                  -----------  -----------

   Net loans                                        5,271,127    4,980,985
                                                  -----------  -----------
Foreclosed real estate                                 38,984        8,607
Premises, furniture, and equipment                    117,880      123,257
Investment in bank owned life insurance               199,070      203,987
Goodwill and other intangible assets                  283,570      287,141
Accrued interest receivable and other assets          185,480      270,221
                                                  -----------  -----------

   Total assets                                   $ 8,252,576  $ 8,315,368
                                                  ===========  ===========
Liabilities and Stockholders' Equity
 Deposits
 Transactional deposits                           $ 3,522,289  $ 3,562,499
 Time deposits                                      1,943,076    2,131,759
 Brokered deposits                                     43,017       27,304
                                                  -----------  -----------

   Total deposits                                   5,508,382    5,721,562
Borrowed funds                                      1,535,752    1,413,726
Subordinated debt                                     232,375      232,509
Accrued interest payable and other liabilities         72,455      209,644
                                                  -----------  -----------

   Total liabilities                                7,348,964    7,577,441
                                                  -----------  -----------
Preferred stock                                       189,768            -
Common stock                                              613          613
Additional paid-in capital                            211,325      206,011
Retained earnings                                     851,339      854,931
Accumulated other comprehensive (loss)                (37,470)      (9,333)
Treasury stock, at cost                              (311,963)    (314,295)
                                                  -----------  -----------

   Total stockholders' equity                         903,612      737,927
                                                  -----------  -----------

   Total liabilities and stockholders' equity     $ 8,252,576  $ 8,315,368
                                                  ===========  ===========






First Midwest Bancorp, Inc.             Press Release Dated April 22, 2009

Condensed Consolidated Statements of Income
Unaudited                                          Quarters Ended
                                           -------------------------------
(Amounts in thousands except per share     March 31,  December   March 31,
 data)                                       2009     31, 2008     2008
                                           ---------  ---------  ---------

Interest Income
Loans                                      $  65,447  $  71,849  $  81,334
Securities                                    26,030     26,024     27,120
Other                                              3         60         21
                                           ---------  ---------  ---------
  Total interest income                       91,480     97,933    108,475
                                           ---------  ---------  ---------
Interest Expense
Deposits                                      18,927     22,802     34,210
Borrowed funds                                 4,632      6,416     12,076
Subordinated debt                              3,702      3,702      3,689
                                           ---------  ---------  ---------
  Total interest expense                      27,261     32,920     49,975
                                           ---------  ---------  ---------
  Net interest income                         64,219     65,013     58,500
Provision for loan losses                     48,410     42,385      9,060
                                           ---------  ---------  ---------
  Net interest income after provision for
   loan losses                                15,809     22,628     49,440
                                           ---------  ---------  ---------
Noninterest Income
Service charges on deposit accounts            9,044     11,206     10,422
Trust and investment management fees           3,329      3,420      3,947
Other service charges, commissions, and
 fees                                          4,006      4,554      5,002
Card-based fees                                3,755      8,868      3,898
  Subtotal, fee-based revenues                20,134     23,048     23,269
Bank owned life insurance income                 541     (8,858)     2,462
Securities gains (losses), net                 8,222    (34,215)     4,968
Other                                           (126)    (2,104)      (680)
                                           ---------  ---------  ---------
  Total noninterest income                    28,771    (22,129)    30,019
                                           ---------  ---------  ---------
Noninterest Expense
Salaries and employee benefits                23,311     20,356     26,190
Net occupancy expense                          6,506      5,967      6,151
Equipment expense                              2,331      2,454      2,567
Technology and related costs                   2,240      1,848      1,771
Other                                         14,006     15,956     12,664
                                           ---------  ---------  ---------
  Total noninterest expense                   48,394     46,581     49,343
                                           ---------  ---------  ---------
(Loss) income before taxes                    (3,814)   (46,082)    30,116
Income tax (benefit) expense                  (9,541)   (19,192)     5,078
                                           ---------  ---------  ---------
  Net Income (Loss)                            5,727    (26,890)    25,038
Preferred dividends                           (2,563)      (712)         -
Net income applicable to non-vested
 restricted shares                                (9)        33        (59)
                                           ---------  ---------  ---------
  Net Income (Loss) Applicable to Common
   Shares                                  $   3,155  $ (27,568) $  24,979
                                           =========  =========  =========
  Diluted Earnings Per Share               $    0.07      (0.57) $    0.51
  Dividends Declared Per Share             $   0.010      0.225  $   0.310
  Weighted Average Diluted Shares
   Outstanding                                48,493     48,508     48,537








First Midwest Bancorp, Inc.            Press Release Dated April 22, 2009

                                                         Percent Change
Unaudited                      As Of                          From
               --------------------------------------- ------------------
(Dollar
 amounts in               % of
 thousands)     3/31/09   Total  12/31/08    3/31/08   12/31/08   3/31/08
               ---------- -----  ---------- ---------- --------   -------
Loan Portfolio
 Composition
  Commercial
   and
   industrial  $1,508,175  28.0% $1,490,101 $1,396,665      1.2%      8.0%
  Agricultural    141,190   2.6%    142,635    200,614     (1.0%)   (29.6%)
  Commercial
   real
   estate:
    Office,
     retail,
     and
     industri-
     al         1,211,844  22.5%  1,127,689  1,020,403      7.5%     18.8%
    Residen-
     tial land
     and
     develop-
     ment         466,195   8.7%    509,059    515,052     (8.4%)    (9.5%)
    Multi-
     family       257,039   4.8%    237,646    188,474      8.2%     36.4%
    Other
     commer-
     cial real
     estate     1,073,483  19.9%  1,106,952    952,622     (3.0%)    12.7%
               ---------- -----  ---------- ---------- --------   -------
      Total
       commer-
       cial
       real
       estate   3,008,561  55.9%  2,981,346  2,676,551      0.9%     12.4%
               ---------- -----  ---------- ---------- --------   -------
  Consumer:
    Home
     equity       480,283   8.9%    477,105    459,068      0.7%      4.6%
    Real
     estate
     1-4
     family       185,486   3.4%    198,197    224,895     (6.4%)   (17.5%)
    Other
     consumer      63,433   1.2%     70,679     87,972    (10.3%)   (27.9%)
               ---------- -----  ---------- ---------- --------   -------
      Total
       consumer   729,202  13.5%    745,981    771,935     (2.2%)    (5.5%)
               ---------- -----  ---------- ---------- --------   -------
    Total
     loans     $5,387,128 100.0% $5,360,063 $5,045,765      0.5%      6.8%
               ========== =====  ========== ========== ========   =======


Commercial
 Real Estate
 Detail
Office
 Retail,
 and
 Industrial
   Office      $  404,857  33.4% $  373,272 $  326,107      8.5%     24.1%
   Retail         338,858  28.0%    313,286    279,612      8.2%     21.2%
   Industrial     468,129  38.6%    441,131    414,684      6.1%     12.9%
               ---------- -----  ---------- ---------- --------   -------
     Total
      office,
      retail,
      and
      industri-
      al       $1,211,844 100.0% $1,127,689 $1,020,403      7.5%     18.8%
               ========== =====  ========== ========== ========   =======
Residential
 Land and
 Development
   Structures  $  143,497  30.8% $  185,929 $  209,146    (22.8%)   (31.4%)
   Land           322,698  69.2%    323,130    305,906     (0.1%)     5.5%
               ---------- -----  ---------- ---------- --------   -------
     Total
      residen-
      tial
      land
      and
      develop-
      ment     $  466,195 100.0% $  509,059 $  515,052     (8.4%)    (9.5%)
               ========== =====  ========== ========== ========   =======
Other
 Commercial
 Real Estate
    Commercial
     land      $  258,869  24.1% $  280,120 $  260,502     (7.6%)    (0.6%)
    1-4 family
     investors    189,901  17.7%    193,227    169,768     (1.7%)    11.9%
    Service
     stations
     and truck
     stops        145,571  13.6%    146,891    117,592     (0.9%)    23.8%
    Warehouses
     and
     storage       89,541   8.3%     85,276     71,921      5.0%     24.5%
    Hotels         80,365   7.5%     79,186     59,199      1.5%     35.8%
    Restaurants    49,897   4.6%     48,106     48,147      3.7%      3.6%
    Medical        37,929   3.5%     42,269     42,912    (10.3%)   (11.6%)
    Automobile
     dealers       37,627   3.5%     38,505     30,934     (2.3%)    21.6%
    Mobile
     home
     parks         21,559   2.0%     36,790     23,481    (41.4%)    (8.2%)
    Recrea-
     tional        12,587   1.2%     14,515     16,348    (13.3%)   (23.0%)
    Religious      11,121   1.0%     11,224     11,291     (0.9%)    (1.5%)
    Other         138,516  12.9%    130,843    100,527      5.9%     37.8%
               ---------- -----  ---------- ---------- --------   -------
      Total
       other
       commer-
       cial
       real
       estate  $1,073,483 100.0% $1,106,952 $  952,622     (3.0%)    12.7%
               ========== =====  ========== ========== ========   =======







First Midwest Bancorp, Inc.             Press Release Dated April 22, 2009

Unaudited                                      As Of
                         -------------------------------------------------
                                     % of
(Dollar amounts in                   Loan      % of
 thousands)              3/31/09   Category    Total    12/31/08  3/31/08
                         --------  --------  ---------  --------  --------
Asset Quality
Non-accrual loans:
   Commercial and
    industrial           $ 33,245      2.20%      19.8% $ 15,586  $  6,770
   Office, retail, and
    industrial             12,769      1.05%       4.6%    2,533       730
   Residential land and
    development           107,766     23.12%      61.9%   97,060     4,081
   Multi-family             6,989      2.72%       4.2%    1,387     1,361
   Other commercial real
    estate                 16,025      1.49%       5.5%    6,926       255
   Consumer                 6,747      0.93%       4.0%    4,276     3,876
                         --------  ========  ---------  --------  --------
      Total non-accrual
       loans              183,541      3.41%     100.0%  127,768    17,073
                         --------  ========  =========  --------  --------
Restructured loans          1,063                          7,344     1,942
90 days past due loans
 (still accruing
 interest):
   Commercial and
    industrial             16,208      1.07%      18.1% $  6,818  $  3,926
   Agricultural             1,751      1.24%       1.9%    1,751         -
   Office, retail, and
    industrial             12,719      1.05%      19.8%    3,214         -
   Residential land and
    development            20,593      4.42%      27.3%    8,489    17,438
   Multi-family             3,356      1.31%       3.7%    1,881     2,332
   Other commercial real
    estate                  8,900      0.83%      17.6%    6,586     2,451
   Consumer                10,402      1.43%      11.6%    8,260     5,150
                         --------  ========  ---------  --------  --------
      Total 90 days past
       due loans           73,929      1.37%     100.0%   36,999    31,297
                         --------  ========  =========  --------  --------
      Total
       non-performing
       loans             $258,533                       $172,111  $ 50,252
                         ========                       ========  ========
Foreclosed real estate   $ 38,984                         24,368     8,607
30-89 days past due
 loans                   $ 54,311      1.01%     100.0% $116,206  $185,186
Reserve for loan losses  $116,001         -          -  $ 93,869  $ 64,780

Asset Quality Ratios
Non-accrual loans to
 loans                       3.41%        -          -      2.38%     0.33%
Non-performing loans to
 loans                       4.80%        -          -      3.21%     0.96%
Reserve for loan losses
 to loans                    2.15%        -          -      1.75%     1.24%
Reserve for loan losses
 to non-accrual loans          63%        -          -        73%      379%
Reserve for loan losses
 to non-performing loans       45%        -          -        55%      129%
                         ========                       ========  ========

                         -------------------------------------------------
                                     % of
(Dollar amounts in                   Loan      % of
 thousands)               3/31/09  Category    Total    12/31/08   3/31/08
                         --------  --------  ---------  --------  --------
Charge-off Data
Net loans charged-off:
   Commercial and
    industrial           $ 12,093      0.80%      46.0% $  5,601  $  3,188
   Office, retail, and
    industrial                878      0.07%       3.3%      699         -
   Residential land and
    development            10,719      2.30%      40.8%    9,227       559
   Multifamily                 43      0.02%       0.2%      164       842
   Other commercial real
    estate                     69      0.01%       0.3%      397       673
   Consumer                 2,476      0.34%       9.4%    2,239       818
                         --------  ========  ---------  --------  --------
      Total net loans
       charged-off       $ 26,278      1.98%     100.0% $ 18,327  $  6,080
                         ========  ========  =========  ========  ========
Net loan charge-offs to
 average loans
 (annualized):
 Quarter-to-date             1.98%        -          -      1.38%     0.49%
Year-to-date                 1.98%        -          -      0.74%     0.49%







First Midwest Bancorp, Inc.             Press Release Dated April 22, 2009

Securities Available-For-Sale
Unaudited

                                   Collateralized   Other
                            U.S.      Mortgage     Mortgage     State and
                          Treasury   Obligations    Backed      Municipal
                        ------------ -----------  -----------  -----------
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
                        ============ ===========  ===========  ===========

As of December 31, 2008
Amortized cost          $      1,039 $   694,285  $   504,918  $   907,036

Gross unrealized gains
 (losses):
   Gross unrealized
    gains                          2       7,668       13,421       12,606
   Gross unrealized
    losses                         -      (3,114)         (74)     (12,895)
                        ------------ -----------  -----------  -----------
     Net unrealized
      gains (losses)               2       4,554       13,347         (289)
                        ------------ -----------  -----------  -----------
Fair value              $      1,041 $   698,839  $   518,265  $   906,747
                        ============ ===========  ===========  ===========

As of March 31, 2008
Amortized cost          $     11,533 $   471,431  $   533,373  $   949,107

Gross unrealized gains
 (losses):
   Gross unrealized
    gains                        124       4,572        6,096       12,796
   Gross unrealized
    losses                         -      (2,548)        (324)      (3,164)
                        ------------ -----------  -----------  -----------
     Net unrealized
      gains (losses)             124       2,024        5,772        9,632
                        ------------ -----------  -----------  -----------
Fair value              $     11,657 $   473,455  $   539,145  $   958,739
                        ============ ===========  ===========  ===========




                       Collateralized
                            Debt
Unaudited               Obligations     Other        Total
                        -----------  -----------  -----------
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
                        ===========  ===========  ===========

As of December 31, 2008
Amortized cost          $    78,883  $    51,820  $ 2,237,981

Gross unrealized gains
 (losses):
  Gross unrealized
   gains                          -          213       33,910
  Gross unrealized
   losses                   (36,797)      (2,825)     (55,705)
                        -----------  -----------  -----------
    Net unrealized
     gains (losses)         (36,797)      (2,612)     (21,795)
                        -----------  -----------  -----------
Fair value              $    42,086  $    49,208  $ 2,216,186
                        ===========  ===========  ===========

As of March 31, 2008
Amortized cost          $    93,232  $    45,630  $ 2,104,306

Gross unrealized gains
 (losses):
   Gross unrealized
    gains                       348           38       23,974
   Gross unrealized
    losses                  (18,624)      (3,018)     (27,678)
                        -----------  -----------  -----------
     Net unrealized
      gains (losses)        (18,276)      (2,980)      (3,704)
                        -----------  -----------  -----------
Fair value              $    74,956  $    42,650  $ 2,100,602
                        ===========  ===========  ===========

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