Form 8-K

First Midwest Bancorp, Inc.

(Registrant)

Date: July 21, 2010

/S/ CYNTHIA A. LANCE

By: Cynthia A. Lance

Executive Vice President and

Corporate Secretary

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Co9MCoHZEQ3DWLuYK/TN9nMLvxt0pXGrbm5isNsn8d5BOuXy3euRBujZnyelzbhC sY/bTmbZHD5yFfmQ7C/DhA== 0001193125-10-162240.txt : 20100721 0001193125-10-162240.hdr.sgml : 20100721 20100721070235 ACCESSION NUMBER: 0001193125-10-162240 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20100721 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100721 DATE AS OF CHANGE: 20100721 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST MIDWEST BANCORP INC CENTRAL INDEX KEY: 0000702325 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 363161078 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-10967 FILM NUMBER: 10961478 BUSINESS ADDRESS: STREET 1: ONE PIERCE PLACE STREET 2: SUITE 1500 CITY: ITASCA STATE: IL ZIP: 60143 BUSINESS PHONE: 6308757450 MAIL ADDRESS: STREET 1: ONE PIERCE PLACE STREET 2: SUITE 1500 CITY: ITASCA STATE: IL ZIP: 60143 8-K 1 d8k.htm FORM 8-K Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 21, 2010

First Midwest Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Delaware

0-10967

36-3161078

(State or other jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)


One Pierce Place, Suite 1500, Itasca, Illinois		60143
(Address of principal executive offices)		(Zip Code)

(630) 875-7450

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

FIRST MIDWEST BANCORP, INC.

FORM 8-K

July 21, 2010

Item 2.02 Results of Operations and Financial Condition

On July 21, 2010, First Midwest Bancorp, Inc. (the “Company”) issued a press release announcing its earnings results for the quarter ended June 30, 2010. This press release, dated July 21, 2010, is attached as Exhibit 99.1 to this report.

Item 7.01 Regulation FD Disclosure

The Company also has made the information attached hereto as Exhibit 99.2 available via its website at www.firstmidwest.com/aboutinvstor_selected.asp.

The information set forth in Items 2.02 and 7.01 of this Current Report on Form 8-K, including the text of the information attached hereto as Exhibits 99.1 and 99.2, is being furnished to, but not filed with, the Securities and Exchange Commission (“SEC”) and shall not be deemed incorporated by reference into any filing made by the Company with the SEC, except as shall be expressly set forth by specific reference in such filing. The Company is not undertaking any duty to update this information after the date of this Report.

Item 9.01 Financial Statements and Exhibits

(a) and (b) not applicable

99.1

Press Release issued by First Midwest Bancorp, Inc. dated July 21, 2010

99.2

First Midwest Bancorp, Inc. Selected Financial Information

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1


			News Release

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

FOR IMMEDIATE RELEASE		CONTACT:	Paul F. Clemens
			Chief Financial Officer
			(630) 875-7347
TRADED: NASDAQ Global Select Market			www.firstmidwest.com
SYMBOL: FMBI

FIRST MIDWEST BANCORP, INC. ANNOUNCES 2010

SECOND QUARTER RESULTS

Increased Core Operating Performance – Improved Credit Quality – Solid Capital

Operating Performance

•

Net income of $7.8 million for second quarter 2010 vs. $8.1 million for first quarter 2010 and $2.7 million for second quarter 2009.

•

Pre-tax, pre-provision core operating earnings of $33.0 million for second quarter 2010, up $1.4 million, or 4.3%, from first quarter 2010 and up $1.2 million, or 3.7%, from second quarter 2009.

•

Average core transactional deposits up approximately $561.0 million, or 15.0%, from second quarter 2009.

•

Total loan balances remain stable with Commercial and Industrial up $39 million, or 11% annualized, from March 31, 2010.

Capital and Credit

•

Tangible common equity to risk-based assets of 10.71%, up 19 basis points from first quarter 2010.

•

Non-performing loans reduced by $24.1 million, or 10.8%, from March 31, 2010 and $63.4 million, or 24%, from June 30, 2009.

•

Loan loss reserves to non-performing loans of 73% at June 30, 2010, compared to 65% at March 31, 2010 and 48% at June 30, 2009.

ITASCA, IL, JULY 21, 2010 – Today First Midwest Bancorp, Inc. (the “Company” or “First Midwest”) (NASDAQ NGS: FMBI), the holding company of First Midwest Bank, reported results of operations and financial condition for second quarter 2010. Net income for the quarter was $7.8 million, before adjustment for preferred dividends and non-vested restricted shares, with net income of $5.2 million, or $0.07 per share, available to common shareholders after such adjustments. This

compares to net income available to common shareholders of $5.4 million, or $0.08 per share, for first quarter 2010 and net income available to common shareholders of $63,000, or $0.00 per share, for second quarter 2009.

Summary Update

In making the announcement, Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc., said, “Performance for the quarter reflected continued success in growing our core business and ongoing efforts to improve overall credit performance. While higher credit-related costs weighed against overall earnings, our core operating performance was solid, reflecting both linked quarter and year-over-year advances. Growth in commercial lending and overall stable loan levels, as well as a notable increase in fee-based revenues from our asset management and card-based businesses, reflect a targeted investment in our sales resources and calling activity. During the quarter, we acquired Peotone Bank and Trust Company from the FDIC, adding to our existing market footprint. In what remains a difficult environment, improvement was noted in virtually every measure of asset quality, with nonperforming loans down approximately 11% from the first quarter of 2010.”

Mr. Scudder continued, “While we have seen signs of economic improvement, the pace of recovery remains slow, due to consumer and business uncertainty as well as persistent weakness in real estate. These same conditions combine to create continued challenges as the industry and the Company strive to reduce problem asset levels and remediation costs. At the same time, I firmly believe First Midwest’s core earnings strength, market presence and leading capital foundation leave us well positioned to pursue opportunities to grow our core business.”

Operating Performance

The Company generated pre-tax, pre-provision core operating earnings of $33.0 million for second quarter 2010, compared to $31.6 million for first quarter 2010 and $31.8 million for second quarter 2009. The 4% increases compared to both prior periods were the result of higher net interest income derived from higher yields on earning assets and significantly lower funding costs. These increases more than offset higher expenses incurred to remediate troubled assets. A reconciliation of earnings in accordance with U.S. generally accepted accounting principles (“GAAP”) to the non-GAAP financial measures of pre-tax, pre-provision core operating earnings is presented on page 12 of this earnings release.

Total loans as of June 30, 2010 of $5.2 billion were relatively unchanged from March 31, 2010, although commercial and industrial loans increased by 11% annualized. The year-over-year decline of

$132.4 million from June 30, 2009 was due primarily to a 44% decrease in the residential and commercial construction and land loan portfolios, as the Company continued to remediate and reduce exposure to these lending categories.

Covered assets were $251.6 million at June 30, 2010, as compared to $207.6 million at March 31, 2010, and consist of loans, other real estate owned, and FDIC indemnification assets from the two FDIC-assisted acquisitions completed in October 2009 and April 2010. The quarter-over-quarter increase in covered assets is due to the acquisition of approximately $50 million of such assets from the former Peotone Bank and Trust Company on April 23, 2010, as discussed later in this release.

Average core transactional deposits for second quarter 2010 were $4.3 billion, an increase of $560 million, or 15.0%, from second quarter 2009. Excluding core transactional deposits acquired through FDIC-assisted transactions, the year-over-year increase in core transactional deposits was $470 million, or 12.6%, and reflects targeted marketing activities, higher seasonal balances maintained by municipal customers, and customers’ desires to maintain more liquid deposits.

Tax-equivalent net interest margin was 4.21% for second quarter 2010 compared to 4.28% for first quarter 2010. The decline in medium and long-term rates from the prior quarter resulted in a reduction in earning asset yields of 16 basis points, partially offsetting the decrease in cost of funds of 13 basis points. Also during the second quarter, average earning assets increased, mitigating the impact of the decline in interest rates and contributing $1.7 million to net interest income.

Tax-equivalent net interest margin improved 68 basis points to 4.21% for second quarter 2010 from 3.53% for second quarter 2009, reflecting the impact of a comparative decline in short and long-term interest rates. A $360.0 million decline in lower yielding securities, decreased reliance on higher costing wholesale funds, and improved market liquidity all contributed to the reduction in the Company’s cost of funds.

Fee-based revenues of $21.9 million for second quarter 2010 were up 9.2% from first quarter 2010, reflecting increases in all major fee categories. These revenues increased 3.1% compared to second quarter 2009 with the decline in service charge fees more than offset by a 15.1% increase in other service charges, commissions and fees (primarily merchant fee income), an 11.1% increase in card-based fees, and a 6.6% increase in trust and advisory fees.

Total noninterest income increased 12.3% from first quarter 2010 due to the bargain purchase gain stemming from the acquisition of Peotone Bank and Trust Company. Compared to second quarter 2009, total noninterest income decreased 13.0% as a result of differences in net securities gains, the fair value adjustment related to the Company’s non-qualified deferred compensation plan, in addition to the bargain purchase gain on the Peotone Bank and Trust Company transaction.

Total noninterest expense for second quarter 2010 increased approximately $2.0 million from first quarter 2010, due primarily to a $1.0 million increase in losses and write downs realized on other real estate owned, as well as a normal seasonal increase in marketing expenditures.

Total noninterest expense increased 13.9% in second quarter 2010 compared to second quarter 2009, substantially due to an $8.5 million increase in losses, write downs, and operating expenses associated with other real estate owned, $841 thousand in higher loan remediation costs (including costs to convert and value loans acquired in the FDIC-assisted transactions) as well as higher marketing, merchant processing, and technology costs. Such increases were partially offset by a $3.5 million decline in FDIC insurance premiums and a $1.7 million decline in salaries and benefits expense due primarily to the reduction in compensation related to the decline in fair value of assets underlying the non-qualified deferred compensation plan.

Acquisition of Peotone Bank and Trust Company

On April 23, 2010, the Company acquired certain loans and deposits of the former Peotone Bank and Trust Company in an FDIC-assisted transaction generating a pre-tax bargain purchase gain of $4.3 million. Loans comprise the majority of the assets acquired and are subject to a loss sharing arrangement with the FDIC whereby the Company is indemnified against the majority of any losses incurred related to these loans. The loans acquired from the former Peotone Bank and Trust Company, including the FDIC indemnification asset, total $53.1 million at June 30, 2010. These assets are excluded from the asset quality presentation in this release, given the loss share indemnification from the FDIC.

Asset Quality

Non-performing loans, excluding covered loans, represented 3.84% of total loans at June 30, 2010, compared to 4.31% and 4.93% at March 31, 2010 and June 30, 2009, respectively. Loans 30-89 days delinquent stood at $32.0 million, or 0.61% of total loans, approximating the March 31, 2010 level of $28.0 million.

The reserve for loan losses represented 2.79% of total loans outstanding at June 30, 2010, unchanged from March 31, 2010 and up from 2.39% at June 30, 2009. The reserve for loan losses as a percentage of non-performing loans, excluding covered loans, improved to 73% at June 30, 2010, compared to 65% at March 31, 2010 and 48% at June 30, 2009. Charge offs, excluding covered loans, for second quarter 2010 were $20.2 million compared to $18.3 million and $27.7 million for first quarter 2010 and second quarter 2009, respectively.

Other real estate owned was $57.0 million at June 30, 2010, compared to $62.6 million at March 31, 2010 and $50.6 million at June 30, 2009. The Company sold $21.6 million of OREO during second quarter 2010 at a loss of $5.5 million. OREO write-downs of $3.4 million were also recorded as the Company continues to align values with current market conditions.

Securities Portfolio

Approximately 95% of the Company’s $1.1 billion available-for-sale portfolio is comprised of municipals, collateralized mortgage obligations (“CMOs”), and agency pass-through securities. The remainder consists of trust-preferred collateralized debt obligation pools (“CDOs”) with a fair value of $13.7 million and an unrealized loss of $36.8 million, and miscellaneous other securities totaling $36.5 million. Net securities gains were $1.1 million for second quarter 2010 and were net of other-than-temporary impairment charges of $1.1 million primarily related to the Company’s CDOs.

Capital Management

As reflected in the following table, all regulatory mandated ratios for characterization as “well-capitalized” were exceeded as of June 30, 2010.


	June 30, 2010		March 31, 2010		Minimum “Well- Capitalized” Level		Excess Over Required Minimums at June 30, 2010
							(Amounts in millions)
Regulatory capital ratios:
Total capital to risk-weighted assets	17.31	%	17.23	%	10.00	%	73	%	$	465
Tier 1 capital to risk-weighted assets	15.25	%	15.17	%	6.00	%	154	%	$	588
Tier 1 leverage to average assets	12.69	%	13.06	%	5.00	%	154	%	$	588

Regulatory capital ratios, excluding preferred stock:
Total capital to risk-weighted assets	14.27	%	14.20	%	10.00	%	43	%	$	272
Tier 1 capital to risk-weighted assets	12.21	%	12.14	%	6.00	%	104	%	$	382
Tier 1 leverage to average assets	10.17	%	10.45	%	5.00	%	103	%	$	382

Tier 1 common capital to risk-weighted assets	10.88	%	10.81	%	N/A		N/A			N/A
Tangible equity ratios:
Tangible common equity to tangible assets	9.05	%	9.17	%	N/A		N/A			N/A
Tangible common equity, excluding other comprehensive loss, to tangible assets	9.22	%	9.42	%	N/A		N/A			N/A
Tangible common equity to risk-weighted assets	10.71	%	10.52	%	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 98 offices located in 64 communities, primarily in metropolitan Chicago.

Safe Harbor Statement

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts but instead represent only the Company’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company’s control. It is possible that actual results and the Company’s financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect the Company’s future results, see “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and other reports filed with the Securities and Exchange Commission. Forward-looking statements represent management’s best judgment as of the date hereof based on currently available information. Except as required by law, the Company undertakes no duty to update the contents of this press release after the date hereof.

Conference Call

A conference call to discuss the Company’s results, outlook and related matters will be held on Wednesday, July 21 2010 at 10:00 A.M. (ET). Members of the public who would like to listen to the conference call should dial (866) 800-8652 (U.S. domestic) or (617) 614-2705 (international) and enter passcode number 547 12 550. The number should be dialed 10 to 15 minutes prior to the start of the conference call. There is no charge to access the call. The conference call will also be accessible as an audio webcast through the Investor Relations section of the Company’s website, www.firstmidwest.com/investorrelations. For those unable to listen to the live broadcast, a replay will be available on the Company’s website or by dialing (888) 286-8010 (U.S. domestic) or (617) 801-6888 (international) passcode number 397 65 478 beginning at 1:00 P.M. (ET) on July 21, 2010 until 11:59 P.M. (ET) on July 28, 2010. Please direct any questions regarding obtaining access to the conference call to First Midwest Bancorp, Inc. Investor Relations, via e-mail, at investor.relations@firstmidwest.com.

Accompanying Financial Statements and Tables

Accompanying this press release is the following unaudited financial information:

•

Operating Highlights, Balance Sheet Highlights, and Capital Ratios

•

Condensed Consolidated Statements of Financial Condition

•

Condensed Consolidated Statements of Income

•

Pre-Tax, Pre-Provision Core Operating Earnings

•

Loan Portfolio Composition

•

Asset Quality

•

Charge-off Data

•

Securities Available-for-Sale

Press Release and Additional Information Available on Website

This press release, the accompanying financial statements and tables, and certain additional unaudited Selected Financial Information are available through the “Investor Relations” section of First Midwest’s website at www.firstmidwest.com.


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

Operating Highlights

Unaudited

(Dollar amounts in thousands except per share data)


	Quarters Ended
	June 30, 2010			March 31, 2010			June 30, 2009
Net income	$	7,809		$	8,081		$	2,663
Net income applicable to common shares		5,171			5,428			63
Diluted earnings per common share	$	0.07		$	0.08		$	—
Return on average common equity		2.16	%		2.38	%		0.04	%
Return on average assets		0.40	%		0.43	%		0.13	%
Net interest margin		4.21	%		4.28	%		3.53	%
Efficiency ratio		57.92	%		58.41	%		61.45	%

Balance Sheet Highlights

Unaudited

(Dollar amounts in thousands except per share data)


	As Of
	June 30, 2010		March 31, 2010		June 30, 2009
Total assets	$	7,805,089	$	7,592,907	$	7,767,312
Total loans, excluding covered loans		5,208,347		5,195,874		5,340,771
Covered assets ⁽¹⁾		251,572		207,609		0
Total deposits		6,123,565		5,864,104		5,766,656
Total stockholders’ equity		1,155,512		1,143,768		892,053
Common stockholders’ equity		962,512		950,768		699,053
Book value per share	$	13.00	$	12.84	$	14.22
Period end shares outstanding		74,049		74,046		49,161

⁽¹⁾	Covered assets are subject to a loss sharing agreement with the Federal Deposit Insurance Corporation (“FDIC”) whereby the Company is indemnified against the majority of any losses incurred related to these loans and other real estate owned.

Capital Ratios

Unaudited


	As Of
	June 30, 2010		March 31, 2010		June 30, 2009
Regulatory capital ratios:
Total capital to risk-weighted assets	17.31	%	17.23	%	15.21	%
Tier 1 capital to risk-weighted assets	15.25	%	15.17	%	12.38	%
Tier 1 leverage to average assets	12.69	%	13.06	%	9.87	%

Regulatory capital ratios, excluding preferred stock:
Total capital to risk-weighted assets	14.27	%	14.20	%	12.17	%
Tier 1 capital to risk-weighted assets	12.21	%	12.14	%	9.33	%
Tier 1 leverage to average assets	10.17	%	10.45	%	7.44	%

Tier 1 common capital to risk-weighted assets	10.88	%	10.81	%	7.36	%

Tangible common equity ratios:
Tangible common equity to tangible assets	9.05	%	9.17	%	5.56	%
Tangible common equity, excluding other comprehensive loss, to tangible assets	9.22	%	9.42	%	6.23	%
Tangible common equity to risk-weighted assets	10.71	%	10.52	%	6.57	%


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

Condensed Consolidated Statements of Financial Condition

Unaudited

(Amounts in thousands)


	June 30,
	2010			2009
*Assets*
Cash and due from banks	$	136,982		$	132,231
Funds sold and other short-term investments		236,098			7,723
Trading account securities, at fair value		13,067			12,203
Securities available-for-sale, at fair value		1,090,109			1,450,082
Securities held-to-maturity, at amortized cost		87,843			86,245
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		59,864			54,768
Loans, excluding covered loans		5,208,347			5,340,771
Covered loans ⁽¹⁾		164,924			—
Reserve for loan losses		(145,027	)		(127,528	)


Net loans		5,228,244			5,213,243

Other real estate owned (“OREO”), excluding covered assets		57,023			50,640
Covered other real estate owned ⁽¹⁾		10,657			—
FDIC indemnification asset ⁽¹⁾		75,991			—
Premises, furniture, and equipment		132,335			115,702
Investment in bank owned life insurance		198,399			197,564
Goodwill and other intangible assets		281,255			282,592
Accrued interest receivable and other assets		197,222			164,319


Total assets	$	7,805,089		$	7,767,312


*Liabilities and Stockholders’ Equity*

Deposits
Transactional deposits	$	4,218,383		$	3,778,879
Time deposits		1,905,182			1,987,777


Total deposits		6,123,565			5,766,656
Borrowed funds		328,470			792,176
Subordinated debt		137,739			232,342
Accrued interest payable and other liabilities		59,803			84,085


Total liabilities		6,649,577			6,875,259

Preferred stock		190,553			189,921
Common stock		858			613
Additional paid-in capital		435,605			193,623
Retained earnings		819,890			850,950
Accumulated other comprehensive loss		(12,803	)		(49,482	)
Treasury stock, at cost		(278,591	)		(293,572	)


Total stockholders’ equity		1,155,512			892,053


Total liabilities and stockholders’ equity	$	7,805,089		$	7,767,312

⁽¹⁾	Total covered assets equal $251,572 and are comprised of covered loans, covered OREO, and an FDIC indemnification asset.


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

Condensed Consolidated Statements of Income

Unaudited

(Amounts in thousands, except per share data)


	Quarters Ended
	June 30, 2010			March 31, 2010			June 30, 2009
*Interest Income*
Loans	$	65,439		$	64,480		$	64,071
Securities		13,699			13,952			20,678
Covered assets, excluding covered OREO		2,598			2,962			—
Other		538			385			390

Total interest income		82,274			81,779			85,139

*Interest Expense*
Deposits		9,626			10,545			17,152
Borrowed funds		749			1,010			3,893
Subordinated debt		2,280			2,286			3,703

Total interest expense		12,655			13,841			24,748

Net interest income		69,619			67,938			60,391
Provision for loan losses		21,526			18,350			36,262

Net interest income after provision for loan losses		48,093			49,588			24,129

*Noninterest Income*
Service charges on deposit accounts		9,052			8,381			9,687
Trust and investment management fees		3,702			3,593			3,471
Other service charges, commissions, and fees		4,628			4,172			4,021
Card-based fees		4,497			3,893			4,048

Subtotal, fee-based revenues		21,879			20,039			21,227
Bank owned life insurance income		349			248			1,159
Securities gains, net		1,121			3,057			6,635
Gain on FDIC-assisted transaction		4,303			—			—
Other		(342	)		977			2,373

Total noninterest income		27,310			24,321			31,394

*Noninterest Expense*
Salaries and employee benefits		26,540			26,884			28,229
FDIC insurance		2,546			2,532			6,034
Net occupancy expense		5,657			6,040			5,194
Losses realized on other real estate owned		8,924			7,879			2,387
Other real estate owned expense, net		2,926			2,908			914
Loan remediation expense		1,836			2,001			995
Other professional fees		3,816			4,539			2,730
Other		15,210			12,690			12,750

Total noninterest expense		67,455			65,473			59,233

Income (loss) before taxes		7,948			8,436			(3,710	)
Income tax expense (benefit)		139			355			(6,373	)

Net income		7,809			8,081			2,663
Preferred dividends		(2,573	)		(2,572	)		(2,566	)
Net income applicable to non-vested restricted shares		(65	)		(81	)		(34	)

Net Income Applicable to Common Shares	$	5,171		$	5,428		$	63

Diluted Earnings Per Common Share	$	0.07		$	0.08		$	—
Dividends Declared Per Common Share	$	0.01		$	0.01		$	0.01
Weighted Average Diluted Common Shares Outstanding		73,028			70,469			48,501


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

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

Unaudited

(Dollar amounts in thousands)


	Quarters Ended
	June 30, 2010			March 31, 2010			June 30, 2009
Income (loss) before taxes	$	7,948		$	8,436		$	(3,710	)
Provision for loan losses		21,526			18,350			36,262

Pre-tax, pre-provision earnings		29,474			26,786			32,552


*Non-Operating Items*

Securities gains (losses), net		1,121			3,057			6,635
Gains on FDIC-assisted transaction		4,303			—			—
Losses realized on other real estate owned		(8,924	)		(7,879	)		(2,387	)
FDIC special deposit insurance assessment		—			—			(3,500	)

Total non-operating items		(3,500	)		(4,822	)		748


Pre-tax, pre-provision core operating earnings	$	32,974		$	31,608		$	31,804


Risk-weighted assets	$	6,362,015		$	6,381,679		$	6,335,010
Pre-tax, pre-provision core operating earnings to risk-weighted assets		2.07	%		1.98	%		2.01	%

⁽¹⁾

The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and general practice within the banking industry. As a supplement to GAAP, the Company has provided this non-GAAP performance result. The Company believes that this non-GAAP financial measure is useful because it allows investors to assess the Company’s operating performance. Although this non-GAAP financial measure is intended to enhance investors’ understanding of the Company’s business and performance, this non-GAAP financial measure should not be considered an alternative to GAAP.


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

Loan Portfolio Composition, Excluding Covered Loans

Unaudited

(Dollar amounts in thousands)


	As Of								Percent Change From
	6/30/10		% of Total		3/31/10		6/30/09		3/31/10		6/30/09
Commercial and industrial	$	1,494,119	28.7	%	$	1,454,714	$	1,457,413	2.7	%	2.5	%
Agricultural and farmland		199,597	3.8	%		200,527		210,675	(0.5	%)	(5.3	%)
Commercial real estate:
Office, retail, and industrial		1,220,191	23.4	%		1,239,583		1,117,748	(1.6	%)	9.2	%
Construction:
Residential construction and land		241,094	4.6	%		276,322		458,913	(12.7	%)	(47.5	%)
Commercial construction and land		202,041	3.9	%		233,662		325,425	(13.5	%)	(37.9	%)

Total construction		443,135	8.5	%		509,984		784,338	(13.1	%)	(43.5	%)

Multifamily		369,281	7.1	%		348,178		305,976	6.1	%	20.7	%
Investor-owned rental property		120,436	2.3	%		121,040		132,173	(0.5	%)	(8.9	%)
Other commercial real estate		711,287	13.7	%		669,462		626,959	6.2	%	13.5	%

Total commercial real estate		2,864,330	55.0	%		2,888,247		2,967,194	(0.8	%)	(3.5	%)

Consumer:
Home equity		458,066	8.8	%		464,655		480,706	(1.4	%)	(4.7	%)
Real estate 1-4 family		145,457	2.8	%		139,840		171,186	4.0	%	(15.0	%)
Other consumer		46,778	0.9	%		47,891		53,597	(2.3	%)	(12.7	%)

Total consumer		650,301	12.5	%		652,386		705,489	(0.3	%)	(7.8	%)

Total loans, excluding covered loans	$	5,208,347	100.0	%	$	5,195,874	$	5,340,771	0.2	%	(2.5	%)


*Office, Retail, and Industrial*
Office	$	415,846	34.1	%	$	396,749	$	356,946	4.8	%	16.5	%
Retail		310,819	25.5	%		346,218		297,829	(10.2	%)	4.4	%
Industrial		493,526	40.4	%		496,616		462,973	(0.6	%)	6.6	%

Total office, retail, and industrial	$	1,220,191	100.0	%	$	1,239,583	$	1,117,748	(1.6	%)	9.2	%


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

Asset Quality, Excluding Covered Assets

Unaudited

(Dollar amounts in thousands)


	As Of
	6/30/10			% of Loan Category		% of Total		3/31/10			6/30/09
Non-accrual loans:
Commercial and industrial	$	39,942		2.67	%	20.6	%	$	38,095		$	41,542
Agricultural and farmland		1,139		0.57	%	0.6	%		2,532			452
Office, retail, and industrial		17,170		1.41	%	8.9	%		18,204			13,058
Residential construction and land		71,148		29.51	%	36.7	%		93,412			143,231
Commercial construction and land		20,457		10.13	%	10.6	%		20,023			3,833
Multi-family		7,904		2.14	%	4.1	%		8,349			10,632
Investor-owned rental property		6,083		5.05	%	3.1	%		5,947			2,787
Other commercial real estate		15,867		2.23	%	8.2	%		15,859			14,642
Consumer		13,979		2.15	%	7.2	%		13,652			7,076

Total non-accrual loans, excluding covered loans		193,689		3.72	%	100.0	%		216,073			237,253

90 days past due loans (still accruing interest):
Commercial and industrial		2,209		0.15	%	35.2	%		3,938			7,174
Agricultural and farmland		—		0.00	%	0	%		—			1,931
Office, retail, and industrial		1,550		0.13	%	24.7	%		676			1,013
Residential construction and land		—		0	%	0	%		—			5,022
Commercial construction and land		—		0	%	0	%		—			881
Multi-family		—		0	%	0	%		368			699
Investor-owned rental property		116		0.10	%	1.8	%		201			592
Other commercial real estate		1,387		0.19	%	22.1	%		23			1,154
Consumer		1,018		0.16	%	16.2	%		2,789			7,605

Total 90 days past due loans		6,280		0.12	%	100.0	%		7,995			26,071

Total non-performing loans, excluding covered loans		199,969							224,068			263,324

Restructured loans, still accruing		9,030							5,168			18,877
OREO, excluding covered OREO		57,023							62,565			50,640

Total non-performing assets, excluding covered assets	$	266,022						$	291,801		$	332,841

30-89 days past due loans	$	32,012						$	28,018		$	38,128
Reserve for loan losses and unfunded commitments	$	145,477						$	144,824		$	127,528
*Asset Quality Ratios, Excluding Covered Assets*
Non-accrual loans to loans		3.72	%						4.16	%		4.44	%
Non-performing loans to loans		3.84	%						4.31	%		4.93	%
Non-performing assets to loans plus OREO		5.05	%						5.55	%		6.17	%
Reserve for loan losses to loans		2.79	%						2.79	%		2.39	%
Reserve for loan losses to non-accrual loans		75	%						67	%		54	%
Reserve for loan losses to non-performing loans		73	%						65	%		48	%


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

Charge-off Data, Excluding Charge-offs on Covered Loans

Unaudited

(Dollar amounts in thousands)


	Quarters Ended
	6/30/10			% of Loan Category		% of Total		3/31/10			6/30/09
Net loans charged-off:
Commercial and industrial	$	2,679		0.18	%	13.2	%	$	4,463		$	7,006
Agricultural and farmland		546		0.27	%	2.7	%		141			—
Office, retail, and industrial		2,353		0.19	%	11.6	%		1,644			217
Residential construction and land		9,994		4.15	%	49.4	%		4,452			8,427
Commercial construction and land		115		0.06	%	0.6	%		270			734
Multifamily		485		0.13	%	2.4	%		512			1,086
Investor-owned rental property		982		0.82	%	4.9	%		254			12
Other commercial real estate		525		0.07	%	2.6	%		4,195			2,451
Consumer		2,543		0.39	%	12.6	%		2,403			4,802

Total net loans charged-off, excluding covered assets	$	20,222		0.39	%	100.0	%	$	18,334		$	24,735


Net loan charge-offs, excluding covered charge-offs to average loans, annualized:
Quarter-to-date		1.56	%	—		—			1.43	%		1.85	%
Year-to-date		1.49	%	—		—			1.43	%		1.91	%


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

Covered Assets ⁽¹⁾

Unaudited

(Dollar amounts in thousands)


	As Of
	June 30, 2010		March 31, 2010		December 31, 2009
Loans	$	164,924	$	144,369	$	146,319
Other real estate owned		10,657		8,649		8,981
FDIC indemnification asset		75,991		54,591		67,945

Total covered assets	$	251,572	$	207,609	$	223,245

90 days or more past due loans	$	47,912	$	52,464	$	30,286
30-89 days past due loans	$	13,725	$	10,175	$	22,988
Net charge-offs – quarter to date	$	651	$	0	$	0

⁽¹⁾	Covered assets are subject to a loss sharing agreement with the Federal Deposit Insurance Corporation (“FDIC”) whereby the Company is indemnified against the majority of any losses incurred related to these loans and other real estate owned.


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

Securities Available-For-Sale

Unaudited

(Dollar amounts in thousands)


	U.S. Treasury and Agency			Collateralized Mortgage Obligations			Other Mortgage Backed			State and Municipal			Collateralized Debt Obligations			Other			Total
*As of June 30, 2010*
Amortized cost	$	9,919		$	264,240		$	119,933		$	622,268		$	50,547		$	34,966		$	1,101,873
Gross unrealized gains (losses):
Gross unrealized gains		12			7,055			7,779			13,413			0			1,734			29,993
Gross unrealized losses		(1	)		(1,582	)		(19	)		(3,079	)		(36,883	)		(193	)		(41,757	)

Net unrealized gains (losses)		11			5,473			7,760			10,334			(36,883	)		1,541			(11,764	)

Fair value	$	9,930		$	269,713		$	127,693		$	632,602		$	13,664		$	36,507		$	1,090,109


*As of March 31, 2010*
Amortized cost	$	755		$	269,457		$	181,953		$	635,036		$	51,596		$	34,949		$	1,173,746
Gross unrealized gains (losses):
Gross unrealized gains		1			8,807			8,533			8,046			—			1,177			26,564
Gross unrealized losses		—			(1,761	)		(29	)		(6,666	)		(39,418	)		(397	)		(48,271	)

Net unrealized gains (losses)		1			7,046			8,504			1,380			(39,418	)		780			(21,707	)

Fair value	$	756		$	276,503		$	190,457		$	636,416		$	12,178		$	35,729		$	1,152,039


*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 unrealized 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

EX-99.2 3 dex992.htm FIRST MIDWEST BANCORP, INC. SELECTED FINANCIAL INFORMATION First Midwest Bancorp, Inc. Selected Financial Information

Exhibit 99.2

First Midwest Bancorp, Inc.

Selected Financial Information

(Amounts in thousands, except per share data)


	2010						2009										2008						2007
	June 30/YTD		2nd Quarter		1st Quarter		Dec. 31/YTD		4th Quarter		3rd Quarter		2nd Quarter		1st Quarter		Dec. 31/YTD		4th Quarter		3rd Quarter		Dec. 31/YTD
Period-End Balance Sheet
Total assets	$	7,805,089	$	7,805,089	$	7,592,907	$	7,710,672	$	7,710,672	$	7,678,434	$	7,767,312	$	8,252,576	$	8,528,341	$	8,528,341	$	8,246,655	$	8,091,518
Securities HTM - amortized cost		87,843		87,843		90,449		84,182		84,182		83,860		86,245		81,566		84,306		84,306		85,982		97,671
Securities AFS - fair market value		1,090,109		1,090,109		1,152,039		1,266,760		1,266,760		1,349,669		1,450,082		1,901,919		2,216,186		2,216,186		2,024,881		2,080,046
FHLB and FRB stock		59,864		59,864		59,428		56,428		56,428		54,768		54,768		54,768		54,767		54,767		54,767		54,767
*Loans:*
Commercial and industrial		1,494,119		1,494,119		1,454,714		1,438,063		1,438,063		1,484,601		1,457,413		1,508,175		1,490,101		1,490,101		1,485,541		1,347,481
Agricultural		199,597		199,597		200,527		209,945		209,945		200,955		210,675		219,178		216,814		216,814		234,755		235,498
Real estate - office, retail, and industrial		1,220,191		1,220,191		1,239,583		1,212,965		1,212,965		1,151,276		1,117,748		1,086,987		1,025,241		1,025,241		999,319		824,078
Real estate - residential construction		241,094		241,094		276,322		313,919		313,919		400,502		458,913		466,195		509,059		509,059		509,974		505,194
Real estate - commercial construction		107,572		107,572		138,994		134,680		134,680		196,198		204,042		232,675		258,253		258,253		229,492		244,904
Real estate - commercial land		94,469		94,469		94,668		96,838		96,838		105,264		121,383		107,540		98,322		98,322		92,658		143,289
Real estate - multifamily		369,281		369,281		348,178		333,961		333,961		342,807		305,976		311,865		286,963		286,963		237,506		217,266
Real estate - other commercial		831,723		831,723		790,502		798,983		798,983		753,429		759,132		725,311		729,329		729,329		683,446		661,480
Real estate - 1-4 family		145,457		145,457		139,840		139,983		139,983		138,862		171,186		185,486		198,197		198,197		205,851		220,741
Consumer		504,844		504,844		512,546		523,909		523,909		532,174		534,303		543,716		547,784		547,784		545,040		563,741

Total loans		5,208,347		5,208,347		5,195,874		5,203,246		5,203,246		5,306,068		5,340,771		5,387,128		5,360,063		5,360,063		5,223,582		4,963,672
*Other Assets:*
Covered assets		251,572		251,572		207,609		223,245		223,245		—		—		—		—		—		—		—
Bank owned life insurance		198,399		198,399		198,201		197,962		197,962		197,681		197,564		199,070		198,533		198,533		207,390		203,535
Goodwill and other intangibles		281,255		281,255		280,477		281,479		281,479		281,614		282,592		283,570		284,548		284,548		285,643		288,235
*Deposits:*
Demand deposits		1,188,356		1,188,356		1,129,777		1,133,756		1,133,756		1,069,870		1,058,553		1,046,660		1,040,763		1,040,763		1,056,905		1,064,684
Interest bearing deposits		4,935,209		4,935,209		4,734,327		4,751,523		4,751,523		4,679,283		4,708,103		4,461,722		4,544,991		4,544,991		4,601,379		4,714,177

Total deposits		6,123,565		6,123,565		5,864,104		5,885,279		5,885,279		5,749,153		5,766,656		5,508,382		5,585,754		5,585,754		5,658,284		5,778,861
Fed funds purchased and repurchase agreements		191,036		191,036		194,355		238,390		238,390		265,917		566,794		685,016		737,598		737,598		928,966		665,164
Other borrowed funds		137,434		137,434		147,808		452,786		452,786		450,382		225,382		850,736		960,736		960,736		625,737		599,064
Subordinated debt		137,739		137,739		137,737		137,735		137,735		157,717		232,342		232,375		232,409		232,409		232,442		230,082
Stockholders’ equity		1,155,512		1,155,512		1,143,768		941,521		941,521		983,579		892,053		903,612		908,279		908,279		718,909		723,975
Stockholders’ equity, excluding OCI		1,168,315		1,168,315		1,162,646		960,187		960,187		999,796		941,535		941,082		926,321		926,321		770,716		735,702
Stockholders’ equity, common		962,512		962,512		950,768		748,521		748,521		790,579		699,053		710,612		715,949		715,949		718,909		723,975
Stockholders’ equity, common excluding OCI		975,315		975,315		969,646		767,187		767,187		806,796		748,535		748,082		733,991		733,991		770,716		735,702
Stockholders’ equity, preferred		193,000		193,000		193,000		193,000		193,000		193,000		193,000		193,000		192,330		192,330		—		—
Average Balance Sheet
Total assets	$	7,786,235	$	7,905,364	$	7,665,781	$	8,064,109	$	7,764,163	$	7,877,055	$	8,195,690	$	8,428,879	$	8,225,440	$	8,365,535	$	8,275,818	$	8,091,333
Securities - HTM taxable		11,422		14,736		8,072		8,520		11,625		7,396		7,454		7,571		7,670		7,575		7,647		9,450
Securities - HTM tax-exempt		77,655		77,490		77,821		77,464		77,834		77,470		79,129		75,398		84,718		78,089		82,213		88,099
Securities - AFS taxable		534,337		494,373		574,746		890,848		652,354		711,552		990,358		1,217,308		1,171,264		1,195,909		1,192,899		1,268,389
Securities - AFS tax-exempt		632,494		626,856		638,193		770,380		660,076		721,872		810,485		892,169		936,933		917,418		931,565		906,905
FHLB and FRB stock		59,130		59,758		58,495		55,081		56,013		54,768		54,768		54,768		54,767		54,767		54,767		54,774
Total loans		5,201,052		5,204,566		5,197,499		5,348,979		5,304,690		5,346,769		5,366,393		5,378,905		5,149,879		5,275,981		5,205,188		4,943,479
Covered loans		221,355		233,907		208,663		28,049		111,281		—		—		—		—		—		—		—
Other earning assets		185,594		314,480		55,275		102,801		52,324		210,667		129,716		16,921		35,310		58,231		24,868		30,507

Total earning assets		6,923,039		7,026,166		6,818,764		7,282,122		6,926,197		7,130,494		7,438,303		7,643,040		7,440,541		7,587,970		7,499,147		7,301,603
*Deposits:*
Demand deposits		1,152,865		1,181,097		1,124,320		1,061,208		1,115,096		1,056,188		1,044,033		1,028,617		1,043,972		1,043,596		1,053,530		1,055,251
Savings deposits		781,690		803,353		759,786		751,386		744,876		749,995		762,375		748,350		792,524		748,065		784,646		754,009
NOW accounts		1,040,362		1,157,246		922,179		984,529		953,772		1,062,708		1,026,432		893,687		935,429		923,643		983,364		900,956
Money market deposits		1,133,329		1,155,889		1,110,519		937,766		1,079,943		995,132		903,728		768,202		787,218		737,658		770,967		859,864

Core transactional deposits		4,108,246		4,297,585		3,916,804		3,734,889		3,893,687		3,864,023		3,736,568		3,438,856		3,559,143		3,452,962		3,592,507		3,570,080
Time deposits > $100,000		647,601		645,624		649,600		703,487		677,171		697,421		741,356		698,301		802,500		738,486		839,495		827,907
Time deposits < $100,000		1,288,718		1,270,492		1,307,145		1,297,720		1,331,556		1,241,024		1,247,992		1,371,370		1,369,879		1,444,120		1,330,535		1,491,995

Total time deposits		1,936,319		1,916,116		1,956,745		2,001,207		2,008,727		1,938,445		1,989,348		2,069,671		2,172,379		2,182,606		2,170,030		2,319,902

Total deposits		6,044,565		6,213,701		5,873,549		5,736,096		5,902,414		5,802,468		5,725,916		5,508,527		5,731,522		5,635,568		5,762,537		5,889,982
FFP, repos, other borrowed funds		409,694		342,808		477,323		1,118,792		661,976		870,397		1,261,949		1,694,928		1,438,908		1,638,037		1,476,403		1,131,700
Subordinated debt		137,737		137,738		137,736		208,621		143,816		226,693		232,358		232,391		231,961		232,425		232,458		227,756

Total funding sources		6,591,996		6,694,247		6,488,608		7,063,509		6,708,206		6,899,558		7,220,223		7,435,846		7,402,391		7,506,030		7,471,398		7,249,438
Stockholders’ equity		1,136,220		1,152,394		1,119,866		927,673		983,595		905,347		907,421		913,809		764,731		845,755		735,022		750,111
Stockholders’ equity, common		943,220		959,394		926,866		734,673		790,595		712,347		714,421		720,809		750,497		789,128		735,022		750,111
Stockholders’ equity, preferred		193,000		193,000		193,000		193,000		193,000		193,000		193,000		193,000		14,234		56,627		—		—

First Midwest Bancorp, Inc.

Selected Financial Information

(Amounts in thousands, except per share data)


	2010									2009															2008									2007
	June 30/YTD			2nd Quarter			1st Quarter			Dec. 31/YTD			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			Dec. 31/YTD			4th Quarter			3rd Quarter			Dec. 31/YTD
Income Statement
Interest income	$	164,053		$	82,274		$	81,779		$	341,751		$	82,370		$	82,762		$	85,139		$	91,480		$	409,207		$	97,933		$	101,486		$	476,961
Interest expense		26,496			12,655			13,841			90,219			16,429			21,781			24,748			27,261			162,610			32,920			38,728			236,832

Net interest income		137,557			69,619			67,938			251,532			65,941			60,981			60,391			64,219			246,597			65,013			62,758			240,129
Loan loss provision		39,876			21,526			18,350			215,672			93,000			38,000			36,262			48,410			70,254			42,385			13,029			7,233
Service charges on deposit accounts		17,433			9,052			8,381			38,754			9,977			10,046			9,687			9,044			44,987			11,206			11,974			45,015
Trust and investment management fees		7,295			3,702			3,593			14,059			3,704			3,555			3,471			3,329			15,130			3,420			3,818			15,701
Other service charges, commissions, and fees		8,800			4,628			4,172			16,529			4,280			4,222			4,021			4,006			18,846			4,554			4,834			22,183
Card-based fees		8,390			4,497			3,893			15,826			4,000			4,023			4,048			3,755			16,143			3,868			4,141			15,925

Subtotal, total fee-based revenue		41,918			21,879			20,039			85,168			21,961			21,846			21,227			20,134			95,106			23,048			24,767			98,824
Bank owned life insurance income		597			349			248			2,263			281			282			1,159			541			(2,369	)		(8,858	)		1,882			8,033
Security (losses) gains, net		4,178			1,121			3,057			2,110			(5,772	)		(6,975	)		6,635			8,222			(35,611	)		(34,215	)		(1,746	)		(50,801	)
Gain on FDIC-assisted transaction		4,303			4,303			—			13,071			13,071			—			—			—			—			—			—			—
Gains on early extinguishment of debt		—			—			—			15,258			1,267			13,991			—			—			—			—			—			—
Other income		635			(342	)		977			5,132			939			1,946			2,373			(126	)		(3,119	)		(2,104	)		(1,209	)		4,197

Total noninterest income		51,631			27,310			24,321			123,002			31,747			31,090			31,394			28,771			54,007			(22,129	)		23,694			60,253
Salaries and employee benefits		53,424			26,540			26,884			106,548			27,592			27,416			28,229			23,311			99,910			20,356			26,996			111,598
Occupancy and equipment expense		15,976			7,808			8,168			31,724			7,661			7,837			7,389			8,837			33,334			8,421			8,216			32,594
FDIC insurance		5,078			2,546			2,532			13,673			2,720			2,558			6,034			2,361			1,065			301			261			747
Other real estate expense, net		22,637			11,850			10,787			23,459			15,693			3,461			3,301			1,004			3,409			1,289			637			972
Other intangibles amortization		2,032			1,029			1,003			3,929			994			979			978			978			4,378			1,095			1,094			4,423
Acquisition and restructure charges		—			—			—			—			—			—			—			—			—			—			—			36
Other expenses		33,781			17,682			16,099			55,455			15,861			14,389			13,302			11,903			52,209			15,119			11,232			48,767

Total noninterest expense		132,928			67,455			65,473			234,788			70,521			56,640			59,233			48,394			194,305			46,581			48,436			199,137
Pre-tax earnings		16,384			7,948			8,436			(75,926	)		(65,833	)		(2,569	)		(3,710	)		(3,814	)		36,045			(46,082	)		24,987			94,012
Income taxes		494			139			355			(50,176	)		(28,342	)		(5,920	)		(6,373	)		(9,541	)		(13,291	)		(19,192	)		796			13,853

Net income	$	15,890		$	7,809		$	8,081		$	(25,750	)	$	(37,491	)	$	3,351		$	2,663		$	5,727		$	49,336		$	(26,890	)	$	24,191		$	80,159

Net income applicable to common shares	$	10,599		$	5,171		$	5,428		$	(35,551	)	$	(39,542	)	$	773		$	63		$	3,155		$	48,482		$	(27,568	)	$	24,149		$	80,094
Basic earnings per common share	$	0.15		$	0.07		$	0.08		$	(0.71	)	$	(0.73	)	$	0.02		$	0.00		$	0.07		$	1.00		$	(0.57	)	$	0.50		$	1.62
Diluted earnings per common share	$	0.15		$	0.07		$	0.08		$	(0.71	)	$	(0.73	)	$	0.02		$	0.00		$	0.07		$	1.00		$	(0.57	)	$	0.50		$	1.62
Weighted average shares outstanding		71,756			73,028			70,469			50,034			54,152			48,942			48,501			48,493			48,462			48,487			48,470			49,295
Weighted average diluted shares outstanding		71,756			73,028			70,469			50,034			54,152			48,942			48,501			48,493			48,515			48,508			48,499			49,586
Tax equivalent adjustment ⁽¹⁾	$	8,517		$	4,265		$	4,252		$	19,658		$	4,448		$	4,691		$	5,091		$	5,428		$	22,225		$	5,496		$	5,572		$	20,906
Net interest income (FTE) ⁽¹⁾	$	146,074		$	73,884		$	72,190		$	271,190		$	70,389		$	65,672		$	65,482		$	69,647		$	268,822		$	70,509		$	68,330		$	261,035
Common stock and related per common share data:
Book value	$	13.00		$	13.00		$	12.84		$	13.66		$	13.66		$	14.43		$	14.22		$	14.61		$	14.72		$	14.72		$	14.80		$	14.94
Tangible book value		9.20			9.20			9.05			8.52			8.52			9.29			8.47			8.78			8.87			8.87			8.92			8.99
Dividends declared per share		0.020			0.010			0.010			0.040			0.010			0.010			0.010			0.010			1.155			0.225			0.310			1.195
Market price - period high		17.95			17.95			14.43			20.25			11.50			11.64			12.00			20.25			40.09			28.97			40.09			39.31
Market price - period low		10.37			12.10			10.37			5.94			9.09			6.19			5.94			5.96			13.56			13.65			13.56			29.67
Closing price at period end	$	12.16		$	12.16		$	13.55		$	10.89		$	10.89		$	11.27		$	7.31		$	8.59		$	19.97		$	19.97		$	24.24		$	30.60
Closing price to book value		0.9			0.9			1.1			0.8			0.8			0.8			0.5			0.6			1.4			1.4			1.6			2.0
Period end shares outstanding		74,049			74,049			74,046			54,793			54,793			54,800			49,161			48,628			48,630			48,630			48,590			48,453
Period end treasury shares		11,738			11,738			11,741			12,176			12,176			12,169			12,165			12,698			12,696			12,696			12,736			12,873
Number of shares repurchased		—			—			—			—			—			—			—			—			5			—			—			1,767
Common dividends	$	1,481		$	741		$	740		$	2,020		$	492		$	556		$	486		$	486		$	56,206		$	10,955		$	15,088		$	58,765
Preferred dividends	$	4,825		$	2,412		$	2,413		$	9,650		$	2,413		$	2,412		$	2,413		$	2,412		$	670		$	670		$	—		$	—
Other Key Ratios/Data:
Return on average common equity ⁽²⁾		2.27	%		2.16	%		2.38	%		-4.84	%		-19.84	%		0.43	%		0.04	%		1.78	%		6.46	%		-13.90	%		13.07	%		10.68	%
Return on average assets ⁽²⁾		0.41	%		0.40	%		0.43	%		-0.32	%		-1.92	%		0.17	%		0.13	%		0.28	%		0.60	%		-1.28	%		1.16	%		0.99	%
Net interest margin ⁽¹⁾		4.25	%		4.21	%		4.28	%		3.72	%		4.04	%		3.66	%		3.53	%		3.67	%		3.61	%		3.71	%		3.63	%		3.58	%
Yield on average earning assets ⁽¹⁾		5.02	%		4.94	%		5.10	%		4.96	%		4.98	%		4.88	%		4.86	%		5.12	%		5.80	%		5.43	%		5.69	%		6.82	%
Cost of funds		0.98	%		0.92	%		1.05	%		1.50	%		1.17	%		1.48	%		1.61	%		1.73	%		2.56	%		2.03	%		2.40	%		3.82	%
Efficiency ratio ⁽¹⁾		58.16	%		57.92	%		58.41	%		57.86	%		58.48	%		59.13	%		61.45	%		52.33	%		53.49	%		59.06	%		50.30	%		52.50	%
Net noninterest expense ratio ⁽²⁾		2.21	%		2.31	%		2.34	%		1.76	%		2.42	%		1.64	%		1.69	%		1.34	%		1.27	%		1.64	%		1.11	%		1.09	%
Effective income tax rate		3.0	%		1.7	%		4.2	%		66.1	%		43.1	%		230.4	%		171.8	%		250.2	%		-36.9	%		41.6	%		3.2	%		14.7	%
Full time equivalent employees - end of period		1,762			1,762			1,729			1,739			1,739			1,751			1,766			1,767			1,809			1,809			1,792			1,856
Number of bank offices		95			95			94			94			94			94			94			97			97			97			98			99
Number of automated teller machines		131			131			129			127			127			127			128			130			129			129			130			131

Note: Discussion of footnotes (1) and (2) are located at the end of this document.

First Midwest Bancorp, Inc.

Selected Financial Information

(Amounts in thousands, except per share data)


	2010									2009															2008									2007
	June 30/YTD			2nd Quarter			1st Quarter			Dec. 31/YTD			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			Dec. 31/YTD			4th Quarter			3rd Quarter			Dec. 31/YTD
Parent Company Data:
Parent investment in subsidiaries - end of period	$	1,204,551		$	1,204,551		$	1,188,859		$	1,008,836		$	1,008,836		$	947,040		$	915,129		$	921,904		$	921,548		$	921,548		$	910,987		$	861,841

Risk-Based Capital Data:
Preferred stock	$	190,553		$	190,553		$	190,392		$	190,233		$	190,233		$	190,076		$	189,921		$	189,768		$	189,617		$	189,617		$	—		$	—
Common stock		858			858			858			670			670			670			613			613			613			613			613			613
Accumulated paid in capital		435,605			435,605			434,704			252,322			252,322			251,423			193,623			211,325			210,698			210,698			207,503			207,851
Retained earnings		819,890			819,890			815,395			810,626			810,626			851,178			850,950			851,339			837,390			837,390			875,947			844,972
Treasury stock		(278,591	)		(278,591	)		(278,703	)		(293,664	)		(293,664	)		(293,551	)		(293,572	)		(311,963	)		(311,997	)		(311,997	)		(313,347	)		(317,734	)
Trust preferred securities		84,730			84,730			84,730			84,730			84,730			84,730			125,000			125,000			125,000			125,000			125,000			125,000
Minority interest		1			1			3			5			5			111			111			111			111			111			111			111
Unrealized loss on equity securities		—			—			—			—			—			—			(46	)		(238	)		(126	)		(126	)		(136	)		(25	)
Intangible assets		(281,255	)		(281,255	)		(280,477	)		(281,479	)		(281,479	)		(281,614	)		(282,592	)		(283,570	)		(284,548	)		(284,548	)		(285,643	)		(288,235	)
Disallowed deferred tax assets		(1,761	)		(1,761	)		—			—			—			—			—			—			—			—			—			—

Tier 1 capital		970,030			970,030			966,902			763,443			763,443			803,023			784,008			782,385			766,758			766,758			610,048			572,553
Tier 2 capital		130,957			130,957			131,114			131,836			131,836			149,073			179,709			182,844			182,675			182,675			169,727			161,708

Total capital	$	1,100,987		$	1,100,987		$	1,098,016		$	895,279		$	895,279		$	952,096		$	963,717		$	965,229		$	949,433		$	949,433		$	779,775		$	734,261

Risk-adjusted assets	$	6,362,015		$	6,362,015		$	6,372,521		$	6,424,597		$	6,424,597		$	6,234,283		$	6,335,010		$	6,600,684		$	6,609,359		$	6,609,359		$	6,475,903		$	6,340,614
Tangible common equity		681,257			681,257			670,291			467,042			467,042			508,965			416,461			427,042			431,401			431,401			433,266			435,740
Tangible common equity excluding OCI		694,060			694,060			689,169			485,708			485,708			525,182			465,943			464,512			449,443			449,443			485,073			447,467
Adjusted average assets		7,641,829			7,641,829			7,404,963			7,496,478			7,496,478			7,636,913			7,945,014			8,151,469			8,146,655			8,146,655			8,040,248			7,671,104
Tier 1 capital / risk-based assets		15.25	%		15.25	%		15.17	%		11.88	%		11.88	%		12.88	%		12.38	%		11.85	%		11.60	%		11.60	%		9.42	%		9.03	%
Tier 1 common capital / risk-based assets		10.88	%		10.88	%		10.81	%		7.56	%		7.56	%		8.43	%		7.36	%		7.04	%		6.79	%		6.79	%		7.49	%		7.06	%
Total capital / risk-based assets		17.31	%		17.31	%		17.23	%		13.94	%		13.94	%		15.27	%		15.21	%		14.62	%		14.36	%		14.36	%		12.04	%		11.58	%
Leverage ratio		12.69	%		12.69	%		13.06	%		10.18	%		10.18	%		10.52	%		9.87	%		9.60	%		9.41	%		9.41	%		7.59	%		7.46	%
Tangible common equity ratio		9.05	%		9.05	%		9.17	%		6.29	%		6.29	%		6.88	%		5.56	%		5.36	%		5.23	%		5.23	%		5.44	%		5.58	%
Tangible common equity ratio, excluding OCI		9.22	%		9.22	%		9.42	%		6.54	%		6.54	%		7.10	%		6.23	%		5.83	%		5.45	%		5.45	%		6.09	%		5.73	%
Tangible common equity / risk-based assets		10.71	%		10.71	%		10.52	%		7.27	%		7.27	%		8.16	%		6.57	%		6.47	%		6.53	%		6.53	%		6.69	%		6.87	%

First Midwest Bancorp, Inc.

Selected Financial Information

(Amounts in thousands, except per share data)


	2010									2009															2008									2007
	June 30/YTD			2nd Quarter			1st Quarter			Dec. 31/YTD			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			Dec. 31/YTD			4th Quarter			3rd Quarter			Dec. 31/YTD
Asset Quality Performance Data:
*Non-accrual loans:*
Commercial	$	39,942		$	39,942		$	38,095		$	28,193		$	28,193		$	45,134		$	41,542		$	33,245		$	15,586		$	15,586		$	13,961		$	9,128
Agricultural		1,139			1,139			2,532			2,673			2,673			2,384			452			12			12			12			12			362
Real estate- office, retail, and industrial		17,170			17,170			18,204			21,396			21,396			15,738			13,058			12,769			2,533			2,533			1,195			552
Real estate - residential construction		71,148			71,148			93,412			112,798			112,798			138,593			143,231			107,766			97,060			97,060			28,335			107
Real estate - multifamily		7,904			7,904			8,349			12,486			12,486			15,910			10,632			6,989			1,387			1,387			2,827			3,480
Real estate - other commercial		42,407			42,407			41,829			53,221			53,221			25,818			21,262			16,013			6,914			6,914			1,833			1,439
Real estate - 1-4 family		5,706			5,706			5,826			5,819			5,819			4,975			1,034			1,756			857			857			795			583
Consumer		8,273			8,273			7,826			7,629			7,629			8,253			6,042			4,991			3,419			3,419			4,359			2,796

Total non-accrual loans		193,689			193,689			216,073			244,215			244,215			256,805			237,253			183,541			127,768			127,768			53,317			18,447
Loans past due 90 days and still accruing		6,280			6,280			7,995			4,079			4,079			5,960			26,071			73,929			36,999			36,999			37,316			21,149

Total non-performing loans		199,969			199,969			224,068			248,294			248,294			262,765			263,324			257,470			164,767			164,767			90,633			39,596
Restructured, accruing loans		9,030			9,030			5,168			30,553			30,553			26,718			18,877			1,063			7,344			7,344			3,731			7,391
Other real estate owned		57,023			57,023			62,565			57,137			57,137			57,945			50,640			38,984			24,368			24,368			23,697			6,053

Total non-performing assets		266,022			266,022			291,801			335,984			335,984			347,428			332,841			297,517			196,479			196,479			118,061			53,040
Loans past due 30-89 days and still accruing		32,012			32,012			28,018			37,912			37,912			44,346			38,128			54,311			116,206			116,206			104,769			100,820
Reserve for loan losses (RLL):
RLL	$	145,027		$	145,027		$	144,824		$	144,808		$	144,808		$	134,269		$	127,528		$	116,001		$	93,869		$	93,869		$	69,811		$	61,800
Reserve for unfunded commitments		450			450			—			—			—			—			—			—			—			—			—			—

Total reserve for loan losses		145,477			145,477			144,824			144,808			144,808			134,269			127,528			116,001			93,869			93,869			69,811			61,800
Loan loss provision		39,876			21,526			18,350			215,672			93,000			38,000			36,262			48,410			70,254			42,385			13,029			7,233
*Net charge-offs by category:*
Commercial		7,142			2,679			4,463			55,004			23,320			12,585			7,006			12,093			13,026			5,601			1,899			4,925
Agricultural		687			546			141			180			180			—			—			—			38			—			(4	)		10
Real estate - office, retail, and industrial		3,997			2,353			1,644			7,856			3,265			3,496			217			878			732			699			2			—
Real estate - residential construction		14,446			9,994			4,452			62,642			38,315			5,181			8,427			10,719			15,780			9,227			5,856			231
Real estate - multifamily		997			485			512			3,483			2,325			29			1,086			43			1,796			164			(40	)		490
Real estate - other commercial		6,341			1,622			4,719			21,517			11,851			6,400			3,197			69			1,248			397			62			(34	)
Real estate - 1-4 family		381			261			120			930			168			216			326			220			576			57			239			145
Consumer		4,565			2,282			2,283			13,121			3,037			3,352			4,476			2,256			4,989			2,182			1,308			2,036

Net charge-offs, excluding covered assets		38,556			20,222			18,334			164,733			82,461			31,259			24,735			26,278			38,185			18,327			9,322			7,803
Charge-offs on covered assets		651			651			—			—			—			—			—			—			—			—			—			—

Total net charge-offs		39,207			20,873			18,334			164,733			82,461			31,259			24,735			26,278			38,185			18,327			9,322			7,803
*Asset Quality ratios:*
Non-accrual loans / loans		3.72	%		3.72	%		4.16	%		4.69	%		4.69	%		4.84	%		4.44	%		3.41	%		2.38	%		2.38	%		1.02	%		0.37	%
Non-performing loans / loans		3.84	%		3.84	%		4.31	%		4.77	%		4.77	%		4.95	%		4.93	%		4.78	%		3.07	%		3.07	%		1.74	%		0.80	%
Non-performing assets / loans plus OREO		5.05	%		5.05	%		5.55	%		6.39	%		6.39	%		6.48	%		6.17	%		5.48	%		3.65	%		3.65	%		2.25	%		1.07	%
Non-accrual loans / total assets		2.48	%		2.48	%		2.85	%		3.17	%		3.17	%		3.34	%		3.05	%		2.22	%		1.50	%		1.50	%		0.65	%		0.23	%
*Loan loss ratios:*
RLL / loans		2.79	%		2.79	%		2.79	%		2.78	%		2.78	%		2.53	%		2.39	%		2.15	%		1.75	%		1.75	%		1.34	%		1.25	%
RLL / non-accrual loans		75.11	%		75.11	%		67.03	%		59.30	%		59.30	%		52.28	%		53.75	%		63.20	%		73.47	%		73.47	%		130.94	%		335.01	%
RLL / non-performing loans		72.75	%		72.75	%		64.63	%		58.32	%		58.32	%		51.10	%		48.43	%		45.05	%		56.97	%		56.97	%		77.03	%		156.08	%
Net charge-offs to average net loans		1.49	%		1.56	%		1.43	%		3.08	%		6.17	%		2.32	%		1.85	%		1.98	%		0.74	%		1.38	%		0.71	%		0.16	%

Footnotes:

(1)	Tax equivalent basis reflects federal and state tax benefits.

(2)	Annualized based on the number of days outstanding for each period presented.

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