SOURCE: First Midwest Bancorp, Inc.

First Midwest Bancorp, Inc.

November 28, 2011 11:28 ET

First Midwest Bancorp, Inc. Repurchases All Preferred Stock From U.S. Treasury

ITASCA, IL--(Marketwire - Nov 28, 2011) - First Midwest Bancorp, Inc. ("First Midwest" or the "Company") (NASDAQ: FMBI) announced today the repurchase of all of the Company's $193 million of Series B Cumulative Perpetual Preferred Stock, which was issued to the United States Department of the Treasury ("Treasury") as a part of the Troubled Asset Relief Program ("TARP"). The repurchase of the preferred stock, which was completed on November 23, 2011, will result in a one-time, noncash, after-tax charge of approximately $1.5 million or $0.02 per share in the fourth quarter, representing the unaccreted discount recorded at the date of issuance. In total, Treasury received $193.2 million, including $214,000 in accrued dividends from First Midwest as a result of the repurchase. Over the life of its investment, dividends totaling $28.6 million were paid to Treasury by First Midwest.

The repayment was funded with the net proceeds received from the Company's issuance of $115 million of five year 5.875% senior notes and cash on hand. The Company intends to immediately begin negotiations to repurchase the warrant held by Treasury to purchase 1.3 million shares of First Midwest common stock.

"We are very pleased to make this announcement," said Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc. "It was the right time to redeem Treasury's investment and, with the absence of any requirement to raise equity, clearly in the best interest of our shareholders. We believe the approval to repay TARP further validates the strength and stability of First Midwest and recognizes the positive actions we have undertaken to enhance our credit and operating performance. Following repayment, we continue to maintain capital levels well in excess of the highest regulatory guidelines and will eliminate the dividend associated with the preferred stock. As we look forward, the strength of our capital and liquidity remain a competitive advantage and leave us well positioned to both meet the financial needs of our clients and expand our business."

About the Company

First Midwest is the premier relationship-based banking franchise in the dynamic Chicagoland banking market. As one of the Chicago metropolitan area's largest independent bank holding companies, First Midwest provides the full range of business, retail banking and trust and investment management services through some 100 offices located in communities in metropolitan Chicago, northwest Indiana, central and western Illinois and eastern Iowa. First Midwest was recently recognized as having the "Highest Customer Satisfaction with Retail Banking in the Midwest" according to the J.D. Power and Associates 2011 Retail Banking Satisfaction Study(SM). Additionally, First Midwest has been recognized by the Chicago Tribune for the second straight year as one the top 20 best places to work in Chicago among large employers.

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, 2010 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.

Contact Information

    Paul Clemens (Investors)
    EVP and Chief Financial Officer
    First Midwest Bancorp, Inc.
    (630) 875-7347

    James M. Roolf (Media)
    Media Relations
    First Midwest Bancorp, Inc.
    (815) 774-2071

    First Midwest Bancorp, Inc.
    One Pierce Place, Suite 1500
    Itasca, Illinois 60143-9768
    (630) 875-7450