SOURCE: First Midwest Bancorp, Inc.

First Midwest Bancorp, Inc.

October 21, 2009 06:55 ET

First Midwest Bancorp, Inc. Announces Third Quarter 2009 Earnings of $3.4 Million

Quarterly Highlights: Improved Capital Ratios -- Successful Debt for Equity Exchange -- Increased Loan Loss Reserves -- Solid Operating Leverage

ITASCA, IL--(Marketwire - October 21, 2009) - First Midwest Bancorp, Inc. (NASDAQ: FMBI)

Third Quarter 2009 Operating Performance

--  After-tax earnings of $3.4 million compared to $2.7 million for second
    quarter 2009 and $24.2 million for third quarter 2008.
--  Pre-tax earnings of $28.4 million, excluding provision expense and net
    securities and debt extinguishment gains/losses, compared to $25.9 million
    for second quarter 2009 and $39.8 million for third quarter 2008.
--  Average core transactional deposits up 3.4% from second quarter 2009
    and 7.6% from third quarter 2008.
--  Net interest margin of 3.66% compared to 3.53% for second quarter 2009
    and 3.63% for third quarter 2008.
--  Net securities losses realized of $7.0 million for third quarter 2009.
    

Capital and Credit

--  Increased tangible common equity 132 basis points to 6.88% from second
    quarter 2009.
--  Increased Tier 1 regulatory capital and Tier 1 common ratios to 12.88%
    and 8.43%, respectively, up 50 and 107 basis points, respectively, from
    second quarter 2009.
--  Exchanged $68.8 million of debt for 5.6 million shares of common stock
    at a pre-tax gain of approximately $14.0 million.
--  Non-accrual plus 90 days past due loans totaled $262.8 million, which
    approximates the level at June 30, 2009.
--  Increased loan loss reserves to 2.53% of total loans compared to 2.39%
    at June 30, 2009, with third quarter 2009 provision exceeding net charge-
    offs of $31.3 million by $6.7 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 third quarter 2009. Net income was $3.4 million, before adjustment for preferred dividends and non-vested restricted shares, with $773,000, or $0.02 per share available to common shareholders after such adjustments. This compares to $2.7 million and $63,000, respectively, for second quarter 2009, and net income available to common shareholders of $24.1 million, or $0.50 per share, for third quarter 2008. Return on average assets was 0.17% for third quarter 2009 compared to 0.13% and 1.16% for second quarter 2009 and third quarter 2008, respectively. Return on average common equity was 0.43% for third quarter 2009 compared to 0.04% and 13.07% for second quarter 2009 and third quarter 2008, respectively.

In making the announcement, Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc. said, "Despite the continuing economic challenges during the quarter, we again generated solid core performance, as evidenced by commercial and industrial loan growth, core transactional deposit growth, and improved net interest margins. Concurrently, we increased our loan loss reserve and continued to proactively remediate problem credits."

Mr. Scudder continued, "During the quarter, we also notably improved the quality of our capital composition by increasing our level of tangible common equity. We did so through the successful exchange of $68.8 million of the Company's subordinated and trust preferred debt for common stock at a discount from the par value of the debt securities."

Operating Performance

The Company generated income before taxes, credit losses, and net securities gains of $28.4 million for third quarter 2009, compared to $25.9 million for second quarter 2009. The increase was due primarily to a decrease in the deposit premium assessment by the Federal Deposit Insurance Corporation.

Total loans as of September 30, 2009 were $5.31 billion, a decrease of $34.7 million from June 30, 2009 and an increase of $82.5 million from September 30, 2008. During third quarter 2009, the Company securitized $25.7 million of real estate 1-4 family loans, which are now included in the securities available-for-sale portfolio, thereby accounting for the decline in consumer loans from June 30, 2009. Commercial and industrial loans increased from June 30, 2009, as did multifamily and commercial real estate office and retail categories. These increases, totaling $97.5 million, were substantially offset by reductions in construction and commercial land categories.

Average core transactional deposits for third quarter 2009 were $3.86 billion, an increase of $127.5 million, or 3.4%, from second quarter 2009 and $271.5 million, or 7.6% from third quarter 2008. The increases from both prior periods were due primarily to growth in money market account balances.

Tax-equivalent net interest margin was 3.66% for third quarter 2009, an increase from 3.53% for second quarter 2009 and 3.63% for third quarter 2008. The yield on earning assets for third quarter 2009 improved 2 basis points compared to second quarter 2009, while the Company's cost of funds declined 13 basis points compared to second quarter 2009.

Fee-based revenues were $21.8 million for third quarter 2009, compared to $21.2 million for second quarter 2009 and $24.8 million for third quarter 2008. All major fee categories decreased from third quarter 2008, reflecting the impact of reduced consumer spending and lower trust advisory fees.

Other income, excluding fee-based revenues, for third quarter 2009 decreased from the previous quarter by $1.3 million, principally due to recording a negative market adjustment related to certain assets held under a non-qualified deferred compensation plan. Such decrease is substantially offset by a corresponding decrease in compensation expense.

For third quarter 2009, noninterest expense decreased $2.6 million compared to the previous quarter and increased $8.2 million from third quarter 2008. If the special industry-wide FDIC assessment incurred in second quarter 2009 is excluded from the second quarter total, noninterest expense increased by $1.0 million, with the increase primarily due to the timing of marketing expenses. The increase from third quarter 2008 is due to higher loan remediation costs, including costs associated with maintaining foreclosed real estate, and higher FDIC insurance premiums.

Credit Remediation

Non-accrual loans plus 90 days past due and still accruing loans as of September 30, 2009 were $262.8 million compared to $263.3 million at June 30, 2009, with residential construction loans comprising approximately half of the September 30, 2009 total.

At September 30, 2009, the Company had total restructured loans of $41.0 million. Restructured loans for which interest is accruing totaled $26.7 million at September 30, 2009, up from $18.9 million at June 30, 2009. Included in the non-accrual loan total are additional restructured loans totaling $14.3 million, which will not accrue interest until the borrowers demonstrate a period of performance under the restructured terms. At such time, the Company will again accrue interest on these loans.

As of September 30, 2009, loans 30-89 days past due totaled $44.3 million compared to $38.1 million at June 30, 2009.

Other real estate owned was $57.9 million as of September 30, 2009 compared to $50.6 million as of June 30, 2009. All properties are recorded at estimated fair values, less estimated selling costs.

During third quarter 2009, the Company increased its reserve for loan losses to $134.3 million, up $6.7 million from June 30, 2009. The reserve for loan losses represented 2.53% of total loans outstanding at September 30, 2009, compared to 2.39% at June 30, 2009. Net charge-offs totaled $31.3 million, or 2.32% of total average loans, during third quarter 2009, compared to $24.7 million, or 1.85% of total average loans in second quarter 2009. The provision for loan losses for third quarter 2009 was $38.0 million, compared to $36.3 million for second quarter 2009. The reserve for loan losses to non-accrual loans plus 90 days past due loans was 51.1% at September 30, 2009, an increase from 48.4% at June 30, 2009.

Securities Portfolio

Net securities losses were $7.0 million for third quarter 2009. The Company sold approximately $120 million of collateralized mortgage backed, municipal, and other securities at a net gain of $4.5 million. During third quarter 2009, the Company recorded an other-than-temporary impairment charge of $11.5 million associated with its portfolio of trust-preferred collateralized debt obligations.

Capital Management

During third quarter 2009, the Company retired $38.3 million of trust preferred debt and $29.5 million of subordinated debt at a discount to par in exchange for approximately 5.6 million shares of the Company's common stock. The total pre-tax gain from the exchanges was approximately $14.0 million. Regulatory and tangible common equity ratios were improved in comparison to June 30, 2009. The significant improvements in the Tier 1 and tangible capital ratios primarily reflect the exchange of trust preferred debt and subordinated debt classified as Tier 1 and Tier 2 debt, respectively, for common stock.

As reflected in the following table, all regulatory mandated ratios for characterization as "well-capitalized" were significantly exceeded as of September 30, 2009.


                                                   Minimum   Excess Over
                                                    "Well-    Required
                                    September June  Capital-  Minimums at
                                       30,     30,   ized"   September 30,
                                      2009    2009   Level       2009
                                    -------  ------  ------  --------------
                                                              (Amounts in
                                                                millions)
Regulatory Capital Ratios:
   Total capital to risk-weighted
    assets                           15.27%  15.21%  10.00%     53%   $ 329
   Tier 1 capital to risk-weighted
    assets                           12.88%  12.38%   6.00%    115%   $ 429
   Tier 1 leverage to average
    assets                           10.52%   9.87%   5.00%    110%   $ 421

Regulatory capital ratios,
 excluding preferred stock:
   Total capital to risk-weighted
    assets                           12.18%  12.17%  10.00%     22%   $ 136
   Tier 1 capital to risk-weighted
    assets                            9.78%   9.33%   6.00%     63%   $ 236
   Tier 1 leverage to average
    assets                            7.99%   7.44%   5.00%     60%   $ 228

Tier 1 common capital to
 risk-weighted assets                 8.43%   7.36%    N/A     N/A      N/A
   Tangible equity ratios:
   Tangible common equity to
    tangible assets                   6.88%   5.56%    N/A     N/A      N/A
   Tangible common equity,
    excluding other comprehensive
    loss, to tangible assets          7.10%   6.23%    N/A     N/A      N/A
Tangible common equity to
 risk-weighted assets                 8.16%   6.57%    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 93 offices located in 62 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, 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, October 21, 2009 at 10:00 a.m. (ET). Members of the public who would like to listen to the conference call should dial 1-800-706-7741 (U.S. domestic) or 1-617-614-3471 (international) and enter passcode number 257 08 857. The number should be dialed at 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/aboutinvestor_overview.asp. 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 465 26 612, beginning at 1:00 p.m. (ET) on October 21, 2009 until 11:59 p.m. (ET) on October 28, 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, 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)
--  Securities Available-for-Sale (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 www.firstmidwest.com.

First Midwest Bancorp, Inc.           Press Release Dated October 21, 2009

Operating Highlights
Unaudited                                        Quarters Ended
                                         ---------------------------------
(Dollar amounts in thousands,          September 30, June 30, September 30,
 except per share data)                    2009        2009        2008
                                         ---------   ---------   ---------
Net income                               $   3,351   $   2,663   $  24,191
Net income applicable to common shares         773          63      24,149
Diluted earnings per share               $    0.02   $       -   $    0.50
Return on average common equity               0.43%       0.04%      13.07%
Return on average assets                      0.17%       0.13%       1.16%
Net interest margin                           3.66%       3.53%       3.63%
Efficiency ratio                             59.13%      61.45%      50.30%


Balance Sheet Highlights
Unaudited                                              As Of
                                       -----------------------------------
(Dollar amounts in thousands,         September 30, June 30,  September 30,
 except per share data)                   2009        2009         2008
                                       ----------- ----------- -----------
Total assets                           $ 7,678,434 $ 7,767,312 $ 8,246,655
Total loans                              5,306,068   5,340,771   5,223,582
Total deposits                           5,749,153   5,766,656   5,658,284
Total stockholders’ equity                 983,579     892,053     718,909
Common stockholders’ equity                790,579     699,053     718,909
Book value per common share            $     14.43 $     14.22 $     14.80
Period end common shares outstanding        54,800      49,161      48,590


Capital Ratios
Unaudited                                              As Of
                                          --------------------------------
                                          September   June 30,  September
                                           30, 2009    2009     30, 2008
                                          ---------- ---------- ----------
Regulatory capital ratios:
   Total capital to risk-weighted
    assets                                   15.27%      15.21%     12.04%
   Tier 1 capital to risk-weighted
    assets                                   12.88%      12.38%      9.42%
   Tier 1 leverage to average assets         10.52%       9.87%      7.59%

Regulatory capital ratios, excluding
 preferred stock:
   Total capital to risk-weighted assets     12.18%      12.17%     12.04%
   Tier 1 capital to risk-weighted assets     9.78%       9.33%      9.42%
   Tier 1 leverage to average assets          7.99%       7.44%      7.59%

Tier 1 common capital to risk-weighted
 assets                                       8.43%       7.36%      7.49%
   Tangible common equity ratios:
   Tangible common equity to tangible
    assets                                    6.88%       5.56%      5.44%
   Tangible common equity, excluding
    other comprehensive loss, to
    tangible assets                           7.10%       6.23%      6.09%
   Tangible common equity to risk-
    weighted assets                           8.16%       6.57%      6.69%


First Midwest Bancorp, Inc.           Press Release Dated October 21, 2009

Condensed Consolidated Statements of Condition
Unaudited                                               September 30,
                                                  ------------------------
(Amounts in thousands)                                2009         2008
                                                  -----------  -----------
Assets
Cash and due from banks                           $   115,905  $   126,073
Funds sold and other short-term investments            81,693          564
Trading account securities, at fair value              13,231       15,252
Securities available-for-sale, at fair value        1,349,669    2,024,881
Securities held-to-maturity, at amortized cost         83,860       85,982
Federal Home Loan Bank and Federal Reserve Bank
 stock, at cost                                        54,768       54,767
Loans                                               5,306,068    5,223,582
Reserve for loan losses                              (134,269)     (69,811)
                                                  -----------  -----------
   Net loans                                        5,171,799    5,153,771
                                                  -----------  -----------
Other real estate owned                                57,945       23,697
Premises, furniture, and equipment                    122,083      120,592
Investment in bank owned life insurance               197,681      207,390
Goodwill and other intangible assets                  281,614      285,643
Accrued interest receivable and other assets          148,186      148,043
                                                  -----------  -----------
   Total assets                                   $ 7,678,434  $ 8,246,655
                                                  ===========  ===========
Liabilities and Stockholders' Equity
Deposits
Transactional deposits                            $ 3,833,267  $ 3,462,867
Time deposits                                       1,904,985    2,070,633
Brokered deposits                                      10,901      124,784
                                                  -----------  -----------
   Total deposits                                   5,749,153    5,658,284
Borrowed funds                                        716,299    1,554,703
Subordinated debt                                     157,717      232,442
Accrued interest payable and other liabilities         71,686       82,317
                                                  -----------  -----------
   Total liabilities                                6,694,855    7,527,746
                                                  -----------  -----------
Preferred stock                                       190,076            -
Common stock                                              670          613
Additional paid-in capital                            251,423      207,503
Retained earnings                                     851,178      875,947
Accumulated other comprehensive loss                  (16,217)     (51,807)
Treasury stock, at cost                              (293,551)    (313,347)
                                                  -----------  -----------
   Total stockholders' equity                         983,579      718,909
                                                  -----------  -----------
   Total liabilities and stockholders' equity     $ 7,678,434  $ 8,246,655
                                                  ===========  ===========



First Midwest Bancorp, Inc.            Press Release Dated October 21, 2009
Condensed Consolidated Statements of
 Income
Unaudited
                                                 Quarters Ended
                                      ------------------------------------
(Amounts in thousands, except per    September 30,   June 30, September 30,
 share data)                             2009         2009        2008
                                      ------------  --------  ------------

Interest Income
 Loans                                $     66,035  $ 64,071  $     74,929
 Securities                                 16,621    21,002        26,520
 Other                                         106        66            37
                                      ------------  --------  ------------
     Total interest income                  82,762    85,139       101,486
                                      ------------  --------  ------------
Interest Expense
 Deposits                                   15,324    17,152        25,574
 Borrowed funds                              2,768     3,893         9,451
 Subordinated debt                           3,689     3,703         3,703
                                      ------------  --------  ------------
     Total interest expense                 21,781    24,748        38,728
                                      ------------  --------  ------------
     Net interest income                    60,981    60,391        62,758
 Provision for loan losses                  38,000    36,262        13,029
                                      ------------  --------  ------------
     Net interest income after
      provision for loan losses             22,981    24,129        49,729
                                      ------------  --------  ------------
 Noninterest Income
 Service charges on deposit accounts        10,046     9,687        11,974
 Trust and investment management fees        3,555     3,471         3,818
 Other service charges, commissions,
  and fees                                   4,222     4,021         4,834
 Card-based fees                             4,023     4,048         4,141
                                      ------------  --------  ------------
     Subtotal, fee-based revenues           21,846    21,227        24,767
 Bank owned life insurance income              282     1,159         1,882
 Securities (losses) gains, net             (6,975)    6,635        (1,746)
 Gains on early extinguishment of
  debt                                      13,991         -             -
 Other                                       1,946     2,373        (1,209)
                                      ------------  --------  ------------
     Total noninterest income               31,090    31,394        23,694
                                      ------------  --------  ------------
 Noninterest Expense
 Salaries and employee benefits             27,416    28,229        26,996
 FDIC insurance                              2,558     6,034           261
 Net occupancy expense                       5,609     5,194         5,732
 Loan remediation and other real
  estate owned expense, net                  4,619     4,296           811
 Equipment expense                           2,228     2,195         2,484
 Technology and related costs                2,230     2,142         1,990
 Other                                      11,980    11,143        10,162
                                      ------------  --------  ------------
     Total noninterest expense              56,640    59,233        48,436
                                      ------------  --------  ------------
 (Loss) income before taxes                 (2,569)   (3,710)       24,987
 Income tax (benefit) expense               (5,920)   (6,373)          796
                                      ------------  --------  ------------
     Net Income                              3,351     2,663        24,191
 Preferred dividends                        (2,567)   (2,566)            -
 Net income applicable to non-vested
  restricted shares                            (11)      (34)          (42)
                                      ------------  --------  ------------
     Net Income Applicable to Common
      Shares                          $        773  $     63  $     24,149
                                      ============  ========  ============
     Diluted Earnings Per Common
      Share                           $       0.02  $      -  $       0.50
     Dividends Declared Per Common
      Share                           $       0.01  $   0.01  $       0.31
     Weighted Average Diluted Common
      Shares Outstanding                    48,942    48,501        48,499





First Midwest
 Bancorp, Inc.                        Press Release Dated October 21, 2009

                                                           Percent Change
 Unaudited                      As Of                         From
              ----------------------------------------- -----------------
(Dollar
 amounts in                 % of
 thousands)      9/30/09   Total     6/30/09    9/30/08 6/30/08   9/30/08
              ---------- -------  ---------- ---------- -------   -------
Loan Portfolio
 Composition
  Commercial
   and
   industrial $1,484,601    28.0% $1,457,413 $1,485,541     1.9%     (0.1%)
  Agricultural   200,955     3.8%    210,675    234,755    (4.6%)   (14.4%)
  Commercial
   real
   estate:
    Office,
    retail,
    and
    industrial 1,151,276    21.7%  1,117,748    999,319     3.0%     15.2%
    Residential
     const-
     ruction     400,502     7.5%    458,913    509,974   (12.7%)   (21.5%)
    Commercial
     construc-
     tion        196,198     3.7%    204,042    229,492    (3.8%)   (14.5%)
    Commercial
     land        105,264     2.0%    121,383     92,658   (13.3%)    13.6%
    Multifamily  342,807     6.5%    305,976    237,506    12.0%     44.3%
    Investor-
     owned
     rental
     property    117,276     2.2%    132,173    133,375   (11.3%)   (12.1%)
    Other
     commercial
     real
     estate      636,153    12.0%    626,959    550,071     1.5%     15.6%
              ---------- -------  ---------- ---------- -------   -------
      Total
       commercial
       real
       estate  2,949,476    55.6%  2,967,194  2,752,395    (0.6%)     7.2%
              ---------- -------  ---------- ---------- -------   -------
  Consumer:
    Home
     equity      478,204     9.0%    480,706    468,703    (0.5%)     2.0%
    Real
     estate
     1-4
     family      138,862     2.6%    171,186    205,851   (18.9%)   (32.5%)
    Other
     consumer     53,970     1.0%     53,597     76,337     0.7%    (29.3%)
              ---------- -------  ---------- ---------- -------   -------
     Total
      consumer   671,036    12.6%    705,489    750,891    (4.9%)   (10.6%)
              ---------- -------  ---------- ---------- -------   -------
    Total
     loans    $5,306,068   100.0% $5,340,771 $5,223,582    (0.6%)     1.6%
              ========== =======  ========== ========== =======   =======


Office,
 Retail, and
 Industrial
    Office    $  376,897    32.7% $  356,946 $  318,041     5.6%     18.5%
    Retail       314,586    27.3%    297,829    260,095     5.6%     21.0%
    Industrial   459,793    40.0%    462,973    421,183    (0.7%)     9.2%
              ---------- -------  ---------- ---------- -------   -------
     Total
      office,
      retail,
      and
      indus-
      trial   $1,151,276   100.0% $1,117,748 $  999,319     3.0%     15.2%
              ========== =======  ========== ========== =======   =======





First Midwest Bancorp, Inc.           Press Release Dated October 21, 2009

Unaudited                                       As Of
                          ------------------------------------------------
                                      % of
(Dollar amounts in                    Loan      % of
 thousands)               9/30/09   Category   Total    6/30/09   9/30/08
                          --------  --------  --------  --------  --------
Asset Quality
Non-accrual loans:
   Commercial and
    industrial            $ 45,134      3.04%     17.6% $ 41,542  $ 13,961
   Agricultural              2,384      1.19%      0.9%      452        12
   Office, retail, and
    industrial              15,738      1.37%      6.1%   13,058     1,195
   Residential
    construction           138,593     34.60%     54.0%  143,231    28,335
   Commercial
    construction                 -         -         -         -         -
   Multi-family             15,910      4.64%      6.2%   10,632     2,827
   Other commercial real
    estate                  25,818      4.06%     10.1%   21,262     1,833
   Consumer                 13,228      1.97%      5.1%    7,076     5,154
                          --------  ========  --------  --------  --------
      Total non-accrual
       loans               256,805      4.84%    100.0%  237,253    53,317
                          --------  ========  ========  --------  --------
90 days past due loans
 (still accruing
 interest):
   Commercial and
    industrial               3,216      0.22%     53.9%    7,174     4,006
   Agricultural                  -         -         -     1,931     1,751
   Office, retail, and
    industrial               1,036      0.09%     17.4%    1,013     4,838
   Residential
    construction                66      0.02%      1.1%    5,022    17,615
   Commercial
    construction                 -         -         -       689         -
   Multi-family                238      0.07%      4.0%      699     1,216
   Other commercial real
    estate                     338      0.05%      5.7%    1,938     2,469
   Consumer                  1,066      0.16%     17.9%    7,605     5,421
                          --------  ========  --------  --------  --------
      Total 90 days past
       due loans             5,960      0.11%    100.0%   26,071    37,316
                          --------  ========  ========  --------  --------
      Total non-accrual
       and 90 days
       past due loans      262,765                       263,324    90,633
Restructured, accruing
 loans                      26,718                        18,877     3,731
                          --------                      --------  --------
      Total
       non-performing
       loans              $289,483                      $282,201  $ 94,364
                          ========                      ========  ========
Other real estate owned   $ 57,945                      $ 50,640  $ 23,697
30-89 days past due loans $ 44,346      0.84%        -  $ 38,128  $104,769
Reserve for loan losses   $134,269         -         -  $127,528  $ 69,811
Asset Quality Ratios
Non-accrual loans to
 loans                        4.84%        -         -      4.44%     1.02%
Non-accrual plus 90 days
 past due loans to loans      4.95%        -         -      4.93%     1.74%
Non-performing loans to
 loans                        5.46%        -         -      5.28%     1.81%
Reserve for loan losses
 to loans                     2.53%        -         -      2.39%     1.34%
Reserve for loan losses
 to non-accrual loans           52%        -         -        54%      131%
Reserve for loan losses
 to non-accrual plus
 90 days past due
 loans to loans                 51%        -         -        48%       77%
Reserve for loan losses
 to non-performing loans        46%        -         -        45%       74%
                          ========                      ========  ========

                                          Quarters Ended
                          ------------------------------------------------
                                      % of
(Dollar amounts in                    Loan      % of
 thousands)               9/30/09   Category   Total    6/30/09   9/30/08
                          --------  --------  --------  --------  --------
Charge-off Data
Net loans charged-off:
   Commercial and
    industrial            $ 12,585      0.85%     40.3% $  7,006  $  1,899
   Agricultural                  -         -         -         -        (4)
   Office, retail, and
    industrial               3,496      0.30%     11.2%      217         2
   Residential
    construction             5,181      1.29%     16.6%    8,427     5,856
   Commercial
    construction                 -         -         -         -         -
   Multifamily                  29      0.01%      0.1%    1,086       (40)
   Other commercial real
    estate                   6,400      1.01%     20.4%    3,197        62
   Consumer                  3,568      0.53%     11.4%    4,802     1,547
                          --------  ========  --------  --------  --------
      Total net loans
       charged-off        $ 31,259      2.32%    100.0% $ 24,735  $  9,322
                          ========  ========  ========  ========  ========
Net loan charge-offs to
 average loans
 (annualized):
 Quarter-to-date              2.32%        -         -      1.85%     0.71%
 Year-to-date                 2.05%        -         -      1.91%     0.52%



First Midwest Bancorp, Inc.           Press Release Dated October 21, 2009

Securities Available-For-Sale
Unaudited
                 Collateral-                 Collateral-
           U.S.      ized             State     ized
         Treasury  Mortgage  Other     and      Debt
           and      Oblig-  Mortgage  Muni-    Oblig-
          Agency    ations   Backed   cipal    ations   Other     Total
         --------- -------- -------- -------- -------- -------- ----------
As of
 September
 30, 2009
Amortized
 cost    $     757 $322,780 $233,396 $680,216 $ 60,290 $ 50,929 $1,348,368
Gross
 unrealized
 gains
 (losses):
 Gross
  unrealized
  gains          -   10,651   10,782   29,176        -      578     51,187
 Gross
  unrealized
  losses         -   (2,224)      (3)  (1,078) (44,747)  (1,834)   (49,886)
         --------- -------- -------- -------- -------- -------- ----------
  Net
   unreal-
   ized
   gains
   (losses)      -    8,427   10,779   28,098  (44,747)  (1,256)     1,301
         --------- -------- -------- -------- -------- -------- ----------
Fair
 value   $     757 $331,207 $244,175 $708,314 $ 15,543 $ 49,673 $1,349,669
         ========= ======== ======== ======== ======== ======== ==========

As of
 June 30,
 2009
Amortized
 cost    $       - $382,526 $221,481 $767,856 $ 71,789 $ 59,646 $1,503,298
Gross
 unrealized
 gains
 (losses):
 Gross
  unrealized
  gains          -    8,349    6,786    4,907        -      140     20,182
 Gross
  unrealized
  losses         -   (3,456)     (15) (14,778) (51,474)  (3,675)   (73,398)
         --------- -------- -------- -------- -------- -------- ----------
  Net
   unreal-
   ized
   gains
   (losses)      -    4,893    6,771   (9,871) (51,474)  (3,535)   (53,216)
         --------- -------- -------- -------- -------- -------- ----------
Fair
 value   $       - $387,419 $228,252 $757,985 $ 20,315 $ 56,111 $1,450,082
         ========= ======== ======== ======== ======== ======== ==========

As of
 September
 30, 2008
Amortized
 cost    $   2,901 $515,376 $517,139 $926,519 $ 85,286 $ 50,973 $2,098,194
Gross
 unrealized
 gains
 (losses):
 Gross
  unrealized
  gains          6    1,798    1,970    1,987       80       26      5,867
 Gross
  unrealized
  losses         -   (6,827)  (3,068) (45,854) (14,000)  (9,431)   (79,180)
         --------- -------- -------- -------- -------- -------- ----------
  Net
   unreal-
   ized
   gains
   (losses)      6   (5,029)  (1,098) (43,867) (13,920)  (9,405)   (73,313)
         --------- -------- -------- -------- -------- -------- ----------
Fair
 value   $   2,907 $510,347 $516,041 $882,652 $ 71,366 $ 41,568 $2,024,881
         ========= ======== ======== ======== ======== ======== ==========

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