FOR IMMEDIATE RELEASE

EX-99 2 exhibit99.htm FIRST QUARTER EARNINGS RELEASE FOR IMMEDIATE RELEASE

Exhibit 99

						News Release
[LOGO]		First Midwest Bancorp, Inc.				First Midwest Bancorp 300 Park Blvd., Suite 405 P.O. Box 459 Itasca, Illinois 60143-9768 (630) 875-7450
FOR IMMEDIATE RELEASE					CONTACT:	Michael L. Scudder
						EVP, Chief Financial Officer
						(630) 875-7283
	TRADED:		Nasdaq			Steven H. Shapiro
	SYMBOL:		FMBI			EVP, Corporate Secretary
						(630) 875-7345
						www.firstmidwest.com
FIRST MIDWEST REPORTS STRONG FIRST QUARTER RESULTS FULL YEAR EARNINGS GUIDANCE REVISED UPWARD
			1^st QUARTER 2005 HIGHLIGHTS:
			*	Strong Profitability: ROE of 19.1%; ROA 1.49%
			*	Improved Earnings: EPS Up 7.8%
			*	Continuing Commercial Loan Demand: Up 8.7% Year To Year
			*	Solid Deposit Growth: Demand Up 6.3%; Time Up 9.1% Year To Year
			*	Strong Credit Quality: 2 1/2 Year Low in Nonperforming Asset Levels
			*	Continued Strong Efficiency: 49.9%

ITASCA, IL, APRIL 20, 2005 - First Midwest Bancorp, Inc. ("First Midwest") (Nasdaq: FMBI), the premier relationship-based banking franchise in the wealthy and growing suburbs of Chicago, today reported that its net income for first quarter ended March 31, 2005 increased by 7.8% on a per diluted share basis to $25.2 million, or $0.55 per diluted share, from 2004's first quarter of $24.0 million, or $0.51 per diluted share. Solid first quarter 2005 performance resulted in an annualized return on average assets of 1.49%, as compared to 1.42% for first quarter 2004, and an annualized return on average equity of 19.1%, as compared to 18.0% for first quarter 2004.

"We are off to a great start to 2005," stated First Midwest President and Chief Executive Officer John O'Meara. "Sales fundamentals are strong and momentum is building across all of our businesses. We are particularly pleased with loan demand and deposit sales, which continue to show strength. We believe these solid results are the product of our continued focus on the customer and the execution of our relationship-based selling approach."

Earnings Guidance Revised Upward

"After a thorough review of alternate interest rate scenarios, we expect net interest margin expansion compared with our budgeted expectations," O'Meara said. "This is largely the result of higher yields on the securities portfolio, improved returns on floating rate assets and a lag in repricing transactional and time deposits. Improvement in fee revenues stemming from new initiatives coupled with ongoing expense controls should also be a positive factor. Finally, credit costs should be lower than initially budgeted providing additional earnings lift. These three combined factors have driven our decision to increase our guidance of per share diluted earnings for full year performance to $2.26 to $2.36."

Net Interest Margin

First Midwest's net interest income was $57.1 million for first quarter 2005, up slightly from $56.9 million for 2004's first quarter. Net interest margin for first quarter 2005 was 3.87%, down from 3.97% for first quarter 2004 and 3.94% for fourth quarter 2004, reflecting the negative impact of comparatively higher short-term interest rates and relatively stable longer-term rates. The 7 basis point decline from fourth quarter 2004, reflected in large part the delayed benefit of higher longer-term interest rates on security portfolio yields, as these increases occurred late in first quarter 2005. Given the expectation for continued, measured Federal Reserve tightening and the factors previously mentioned, full year margins for 2005 are anticipated to vary within the range of 3.85% to 3.95%.

Loan Growth and Funding

Outstanding loans as of March 31, 2005 totaled $4.2 billion, in contrast to $4.1 billion at March 31, 2004 and at December 31, 2004. These period-to-period loan comparisons are influenced by First Midwest's decision in 2004 to cease its indirect automobile lending and to securitize certain 1-4 family real estate loans. Excluding these loan categories, total loans as of March 31, 2005 increased $178.8 million, or 4.9%, as compared to 2004's first quarter. As of March 31, 2005, commercial loans totaled $1.2 billion, increasing 8.7% in comparison to first quarter 2004. Commercial loans continued their trend of the past 5 quarters, increasing 4.4% on an annualized basis from December 31, 2004. Based upon robust deal flow and strong pipelines, First Midwest remains optimistic about the prospects for commercial, commercial real estate, and real estate construction loan growth for the balance of 2005.

Average deposits for first quarter 2005 totaled $4.9 billion, reflecting growth in both demand and time deposit balances. In comparison to first quarter 2004, average demand balances increased 6.3% and time deposit balances grew 9.1%.

Noninterest Income and Expense

First Midwest's total noninterest income for first quarter 2005 was $20.1 million, up 15.9% as compared to $17.4 million in first quarter 2004. Excluding security gains and debt extinguishment losses, noninterest income increased 5.4% in comparison to first quarter 2004. This improvement reflects improved performance in all revenue categories, except corporate owned life insurance and other income, which were down slightly. In first quarter 2005, security gains totaled $2.6 million, while first quarter 2004 performance included $1.9 million in security gains and $1.2 million in losses on the early extinguishment of debt.

Total noninterest expense for first quarter 2005 was $39.8 million, down slightly from $40.2 million in first quarter 2004. The quarter's performance reflects comparatively lower equipment, technology-related and other costs offset by higher employee benefits, professional services and occupancy expenses. First Midwest's efficiency ratio was 49.9% for first quarter 2005, improved from 50.5% for first quarter 2004.

Credit Quality

First Midwest's level of overall credit quality improved during first quarter 2005, with nonperforming assets decreasing by 14.2% to $19.7 million from $22.9 million at year-end 2004. At March 31, 2005, nonperforming assets represented 0.47% of loans plus foreclosed real estate, the lowest such level in the last 2 1/2 years. Net charge-offs for first quarter 2005 improved to 0.36% of average loans, a 29.4% reduction from 0.51% for fourth quarter 2004. As of March 31, 2005, the reserve for loan losses stood at 343% of nonperforming loans, reflecting the highest coverage ratio of the past eight quarters.

Capital Management

First Midwest's capital position continues to exceed all of the regulatory minimum levels to be considered a "well capitalized institution" by the Federal Reserve. As of March 31, 2005, First Midwest's Total Risk Based Capital was 11.53%, compared to 11.52% as of December 31, 2004. Its Tier 1 Risk Based Capital ratio was 10.47%, up from 10.45% as of December 31, 2004. First Midwest's tangible capital ratio, which represents the ratio of stockholders' equity to total assets excluding intangible assets, stood at 6.21%, down from 6.43% as of December 31, 2004, partly reflecting the combined impact of asset growth and changes in the unrealized market value of securities. First Midwest continued to repurchase its common stock during first quarter 2005, acquiring 365,473 shares at an average price of approximately $34.20 per share funded by cash on hand. As of March 31, 2005, approximately 296,000 shares remained under First Midwest's existing repurchase authorization.

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 67 offices located in 49 communities, primarily in northeastern Illinois. First Midwest is the 2004 recipient of the Illinois Bank Community Service Award and was honored by Chicago magazine in its September, 2004 issue as one of the 25 best places to work in Chicago.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Act of 1995: Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning specific factors described in First Midwest Bancorp's 2004 Form 10-K and other filings with the U.S. Securities and Exchange Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. First Midwest does not intend to update this information and disclaims any legal obligation to the contrary. Historical information is not necessarily indicative of future performance.

Accompanying Financial Statements and Tables

Accompanying this press release is the following unaudited financial information:

* Operating Highlights, Balance Sheet Highlights and Stock Performance Data (1 page)

* Condensed Consolidated Statements of Condition (1 page)

* Condensed Consolidated Statements of Income (1 page)

* Selected Quarterly Data and 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 www.firstmidwest.com.


First Midwest Bancorp, Inc.	Press Release Dated April 20,2005


Operating Highlights		Quarters Ended
Unaudited		March 31,

(Amounts in thousands except per share data)		2005			2004


Net income		$	25,207		$	24,032
Diluted earnings per share		$	0.55		$	0.51
Return on average equity		19.14%			17.97%
Return on average assets		1.49%			1.42%
Net interest margin		3.87%			3.97%
Efficiency ratio		49.88%			50.53%


Balance Sheet Highlights
Unaudited

(Amounts in thousands except per share data)		Mar. 31, 2005			Mar. 31, 2004

Total assets		$	6,910,482		$	6,848,701
Total loans		4,153,728			4,114,667
Total deposits		4,962,859			4,788,812
Stockholders' equity		519,163			524,129
Book value per share		$	11.35		$	11.26
Period end shares outstanding		45,732			46,537


Stock Performance Data		Quarters Ended
Unaudited		March 31,

		2005			2004

Market Price:
Quarter End		$	32.48		$	34.22
High		$	36.75		$	34.29
Low		$	31.92		$	31.13

Quarter end price to book value		2.9		x	3.0		x
Quarter end price to consensus estimated 2005 earnings			14.2	x		N/A
Dividends declared per share		$	0.24		$	0.22


First Midwest Bancorp, Inc.		Press Release Dated April 20, 2005


Condensed Consolidated Statements of Condition
Unaudited ⁽¹⁾			March 31,

(Amounts in thousands)			2005			2004


Assets
Cash and due from banks			$	125,150	$		159,339
Funds sold and other short-term investments			6,083			13,190
Securities available for sale			2,170,720			2,139,140
Securities held to maturity, at amortized cost			73,725			66,208
Loans			4,153,728			4,114,667
Reserve for loan losses			(56,244)			(56,628)

	Net loans		4,097,484			4,058,039

Premises, furniture and equipment			88,695			92,021
Investment in corporate owned life insurance			152,554			147,688
Goodwill and other intangible assets			96,180			98,190
Accrued interest receivable and other assets			99,891			74,886

	Total assets		$	6,910,482	$		6,848,701

Liabilities and Stockholders' Equity
Deposits			$	4,962,859	$		4,788,812
Borrowed funds			1,179,753		1,323,532
Subordinated debt - trust preferred securities			129,042		129,785
Accrued interest payable and other liabilities			119,665		82,443

	Total liabilities		6,391,319		6,324,572

Common stock			569		569
Additional paid-in capital			61,757		67,812
Retained earnings			721,645		663,906
Accumulated other comprehensive income			(5,327)		22,909
Treasury stock, at cost			(259,481)		(231,067)

	Total stockholders' equity		519,163		524,129

	Total liabilities and stockholders' equity		$	6,910,482	$		6,848,701

(1) While unaudited, the Condensed Consolidated Statements of Condition have been prepared in accordance with U.S. generally accepted accounting principles and, as of March 31, 2004, are derived from quarterly financial statements on which Ernst & Young LLP, First Midwest's independent external auditor, has rendered a Quarterly Review Report; Ernst & Young is currently in the process of completing their Quarterly Review Report for the quarter ended March 31, 2005.


First Midwest Bancorp, Inc.		Press Release Dated April 20, 2005


Condensed Consolidated Statements of Income			Quarters Ended
Unaudited ⁽¹⁾			March 31,

(Amounts in thousands except per share data)			2005		2004


Interest Income
Loans			$	59,615	$	54,645
Securities			23,484		22,644
Other			56		100

	Total interest income		83,155		77,389

Interest Expense
Deposits			17,160		13,669
Borrowed funds			6,823		4,817
Subordinated debt - trust preferred securities			2,063		2,014

	Total interest expense		26,046		20,500

	Net interest income		57,109		56,889
Provision for Loan Losses			3,150		1,928

	Net interest income after provision for loan losses		53,959		54,961

Noninterest Income
Service charges on deposit accounts			6,693		6,241
Trust and investment management fees			3,129		2,962
Other service charges, commissions, and fees			3,810		3,632
Card-based fees			2,347		2,146
Corporate owned life insurance income			1,195		1,267
Security gains (losses), net			2,561		1,939
(Losses) on early extinguishments of debt			-		(1,240)
Other			411		438

	Total noninterest income		20,146		17,385

Noninterest Expense
Salaries and employee benefits			22,853		22,116
Net occupancy expense			4,261		4,103
Equipment expenses			2,095		2,242
Technology and related costs			1,381		2,035
Other			9,182		9,709

	Total noninterest expense		39,772		40,205

Income before taxes			34,333		32,141
Income tax expense			9,126		8,109

	Net Income		$	25,207	$	24,032

	Diluted Earnings Per Share		$	0.55	$	0.51

	Dividends Declared Per Share		$	0.24	$	0.22

	Weighted Average Diluted Shares Outstanding		46,164		46,953

While unaudited, the Condensed Consolidated Statements of Income have been prepared in accordance with U.S. generally accepted accounting principles and, for the quarter ended March 31, 2004, are derived from quarterly financial statements on which Ernst & Young LLP, First Midwest's independent external auditor, has rendered a Quarterly Review Report; Ernst & Young is currently in the process of completing their Quarterly Review Report for the quarter ended March 31, 2005.


First Midwest Bancorp, Inc.	Press Release Dated April 20, 2005


Selected Quarterly Data
Unaudited					Quarters Ended

(Amounts in thousands except per share data)		3/31/05			12/31/04			9/30/04			6/30/04			03/31/04

Net interest income		$		57,109	$	58,393		$	57,534		$	56,048		$	56,889
Provision for loan losses		3,150			5,350			3,240			2,405			1,928
Noninterest income		20,146			24,076			18,813			19,107			17,385
Noninterest expense		39,772			42,797			40,359			39,977			40,205
Net income		25,207			25,220			25,172			24,712			24,032
Diluted earnings per share		$		0.55	$	0.54		$	0.54		$	0.53		$	0.51
Return on average equity		19.14%			18.57%			19.03%			19.17%			17.97%
Return on average assets		1.49%			1.46%			1.45%			1.44%			1.42%
Net interest margin		3.87%			3.94%			3.90%			3.81%			3.97%
Efficiency ratio		49.88%			50.43%			49.60%			49.89%			50.53%


Period end shares outstanding		45,732			46,065			46,370			46,632			46,537
Book value per share		$		11.35	$	11.55		$	11.56		$	10.87		$	11.26
Dividends declared per share		$		0.24	$	0.24		$	0.22		$	0.22		$	0.22





Asset Quality
Unaudited			Quarters Ended

(Amounts in thousands)			3/31/05		12/31/04			9/30/04			6/30/04			3/31/04

Nonaccrual loans			$	16,407	$		19,197	$		22,267	$		24,621	$		18,704

Foreclosed real estate			3,270		3,736			4,528			4,602			4,779
Loans past due 90 days and still accruing			4,625		2,658			3,108			4,160			6,977

Nonperforming loans to loans			0.39%		0.46%			0.53%			0.59%			0.45%
Nonperforming assets to loans plus foreclosed real estate			0.47%		0.55%			0.64%			0.70%			0.57%
Nonperforming assets plus loans past due 90 days to loans plus foreclosed real estate................................................			0.58%		0.62%			0.71%			0.80%			0.74%
Reserve for loan losses to loans			1.35%		1.37%			1.35%			1.36%			1.38%
Reserve for loan losses to nonperforming loans			343%		295%			255%			230%			303%

Provision for loan losses			$	3,150	$		5,350	$		3,240	$		2,405	$		1,928
Net loan charge-offs			3,624		5,339			3,219			2,347			1,704

Net loan charge-offs to average loans			0.36%		0.51%			0.30%			0.23%			0.17%