FIRST MIDWEST BANCORP INC - FORM 8-K - EX-99.1 - PRESS RELEASE

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8-K - FORM 8-K - FIRST MIDWEST BANCORP INC	d8k.htm
EX-99.2 - SELECTED FINANCIAL INFORMATION - FIRST MIDWEST BANCORP INC	dex992.htm

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 2011

FIRST QUARTER RESULTS

Improved Earnings and Credit Metrics—Strong Capital and Liquidity

Operating Performance

•

Net income applicable to common shares of $7.5 million, or $0.10 per share, for first quarter 2011 compared to $5.4 million, or $0.08 per share, for first quarter 2010.

•

Net interest margin of 4.15% for first quarter 2011, up 13 basis points from 4.02% for fourth quarter 2010.

•

Commercial and industrial loan growth of 1.9%, or 7.6% annualized, for first quarter 2011.

•

Average core transactional deposits of $4.5 billion for first quarter 2011 up $611.1 million, or 15.6%, from first quarter 2010.

Credit and Capital

•

Non-performing assets reduced $29.7 million, or 11.0%, from December 31, 2010 and $52.0 million, or 17.8% from March 31, 2010.

•

Allowance for credit losses to non-performing loans increased to 76% at March 31, 2011 compared to 67% at December 31, 2010 and 65% at March 31, 2010.

•

Tier 1 common capital to risk-weighted assets of 9.88% as of March 31, 2011, up 16 basis points from 9.72% as of December 31, 2010.

•

Tangible common equity to tangible assets of 8.26% as of March 31, 2011, up 27 basis points from 7.99% as of December 31, 2010.

ITASCA, IL, April 27, 2011 – 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 first quarter 2011. Net income for the quarter was $10.2 million, before adjustments for preferred dividends and non-vested restricted shares, with net income of $7.5 million, or $0.10 per share, applicable to common shareholders after such adjustments. This compares to net income of $8.1 million and net income applicable to common shareholders of $5.4 million, or $0.08 per share, for first quarter 2010.

SUMMARY UPDATE

“Operating performance for the quarter was encouraging and reflected the continued execution of our business priorities,” said Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc. “The quarter reflected notable improvement in overall earnings, credit, and capital metrics, as well as lower loan loss provisioning. Our core earnings continue to remain solid, reflecting the seasonality typically experienced in the first quarter, as well as improvement in margins, increased trust and investment advisory fees, and a pickup in our commercial loan activity.”

Mr. Scudder further commented, “Economic conditions remain challenging but appear to be slowly improving, with the pace of improvement closely tied to housing market recovery and employment. We remain focused on the proactive remediation of problem assets, continued investment in and expansion of our core business, and the prudent management of our capital. Our solid market presence and client-centered sales approach, enabled by our strong liquidity and capital position, leave us well positioned to benefit as the markets continue to recover, operating conditions stabilize, and demand for credit grows.”

In closing, Mr. Scudder said, “We were very proud to receive the recent news that First Midwest Bank ranked highest in the Midwest for Customer Satisfaction in the J.D. Power and Associates 2011 Retail Banking Satisfaction Study ^SM. Such recognition is testament not only to the relationship we strive to maintain with all of our clients but also the exceptional employees of First Midwest.”

OPERATING PERFORMANCE

Performance Highlights

(Dollar amounts in thousands, except per share data)


	Quarters Ended
	March 31, 2011			December 31, 2010			March 31, 2010
Operating Performance
Net income (loss)	$	10,218		$	(28,159	)	$	8,081
Net income (loss) applicable to common shares		7,497			(30,327	)		5,428
Diluted earnings (loss) per common share	$	0.10		$	(0.41	)	$	0.08
Return on average common equity		3.27	%		(12.49	%)		2.38	%
Return on average assets		0.51	%		(1.34	%)		0.43	%
Pre-tax, pre-provision core operating earnings	$	31,427			34,998			31,737
Net interest margin		4.15	%		4.02	%		4.28	%
Efficiency ratio		62.40	%		59.08	%		58.41	%
Credit, Capital, and Other
Loans, including covered loans	$	5,447,900		$	5,475,200		$	5,340,243
Average core transactional deposits ⁽¹⁾	$	4,527,937		$	4,590,489		$	3,916,804
Non-performing assets ⁽²⁾	$	239,777		$	269,466		$	291,801
Tier 1 common capital to risk-weighted assets		9.88	%		9.72	%		10.81	%
Tangible common equity to tangible assets		8.26	%		7.99	%		9.17	%

⁽¹⁾	Includes average demand deposits and average interest-bearing transactional deposits.

⁽²⁾

Excluding covered loans and covered other real estate owned, which were acquired through transactions with the Federal Deposit Insurance Corporation (“FDIC”) and are subject to loss sharing agreements with the FDIC whereby the Company is indemnified against the majority of any losses incurred related to these assets.

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

(Dollar amounts in thousands)


	Quarters Ended
	March 31, 2011			December 31, 2010			March 31, 2010
Income (loss) before income tax	$	10,248		$	(53,225	)	$	8,436
Provision for loan losses		19,492			73,897			18,350

Pre-tax, pre-provision earnings		29,740			20,672			26,786

*Non-Operating Items*
Securities gains, net		540			1,662			3,057
Losses on sales and write-downs of other real estate owned (“OREO”)		(2,227	)		(15,412	)		(7,879	)
Integration costs associated with Federal Deposit Insurance Corporation (“FDIC”)-assisted acquisitions		—			(576	)		(129	)

Total non-operating items		(1,687	)		(14,326	)		(4,951	)


Pre-tax, pre-provision core operating earnings ⁽¹⁾	$	31,427		$	34,998		$	31,737

⁽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.

The decline in core operating earnings from fourth quarter 2010 resulted from lower net interest income, primarily due to lower average interest-earning assets, and seasonal changes in noninterest income and expense. First quarter 2011 was relatively unchanged compared to first quarter 2010, as higher net interest income offset higher noninterest expense, excluding losses recognized on OREO. Further discussion of noninterest income and expense is presented in later sections.

Net Interest Income and Margin Analysis

(Dollar amounts in thousands)


	Quarters Ended
	March 31, 2011							December 31, 2010							March 31, 2010
	Average Balance			Interest		Yield/ Rate (%)		Average Balance			Interest		Yield/ Rate (%)		Average Balance			Interest		Yield/ Rate (%)
Assets:
Federal funds sold and other short-term investments investments	$	483,252		$	322		0.27	$	609,391		$	485		0.32	$	55,275			57		0.42
Investment securities ⁽¹⁾		1,166,991			13,048		4.47		1,139,127			13,568		4.76		1,298,832			17,879		5.51
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank stock		61,338			357		2.33		61,703			347		2.25		58,495			328		2.24
Loans, excluding covered loans ⁽¹⁾		5,075,840			63,301		5.06		5,155,416			64,387		4.95		5,197,499			64,805		5.06
Covered interest-earning assets ⁽²⁾		444,242			7,822		7.14		480,612			7,431		6.13		208,663			2,962		5.76

Total loans		5,520,082			71,123		5.23		5,636,028			71,818		5.06		5,406,162			67,767		5.08

Total interest-earning assets ⁽¹⁾		7,231,663			84,850		4.75		7,446,249			86,218		4.60		6,818,764			86,031		5.10

Cash and due from banks		121,494							128,919							112,437
Allowance for credit losses		(148,051	)						(157,145	)						(152,487	)
Other assets		889,845							896,611							887,067

Total assets	$	8,094,951						$	8,314,634						$	7,665,781

Liabilities and Stockholders’ Equity:
Interest-bearing transaction deposits	$	3,185,924			1,656		0.21	$	3,242,301			1,930		0.23	$	2,792,484			2,911		0.42
Time deposits		1,937,890			6,015		1.26		2,069,389			5,977		1.15		1,956,745			7,634		1.58
Borrowed funds		285,847			680		0.96		281,050			711		1.00		477,323			1,010		0.86
Subordinated debt		137,745			2,286		6.73		137,743			2,279		6.56		137,736			2,286		6.73

Total interest-bearing liabilities		5,547,406			10,637		0.78		5,730,483			10,897		0.75		5,364,288			13,841		1.05

Demand deposits		1,342,013							1,348,188							1,124,320

Total funding sources		6,889,419							7,078,671							6,488,608
Other liabilities		83,217							79,700							57,307
Stockholders’ equity - common		929,315							963,263							926,866
Stockholders’ equity - preferred		193,000							193,000							193,000

Total liabilities and stockholders’ equity	$	8,094,951						$	8,314,634						$	7,665,781

Net interest income/margin ⁽¹⁾				$	74,213		4.15				$	75,321		4.02				$	72,190		4.28

⁽¹⁾	Interest income and yields are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%.

⁽²⁾	Covered interest-earning assets consist of loans acquired through the Company’s FDIC-assisted transactions and the related FDIC indemnification asset.

Average interest-earning assets for first quarter 2011 decreased $214.6 million, or 2.9%, from fourth quarter 2010. The quarter-over-quarter decrease in average interest-earning assets was driven by remediation of non-performing loans and a reduction in average short-term investments.

Average interest-earning assets for first quarter 2011 rose $412.9 million, or 6.1%, from first quarter 2010. This increase was due primarily to the addition of covered interest-earning assets and the investment of deposits acquired in the Company’s FDIC-assisted transactions, partially offset by remediation of non-performing loans.

Average funding sources for first quarter 2011 declined $189.3 million, or 2.7%, from fourth quarter 2010. The reduction in core transactional deposits from fourth quarter 2010 to first quarter 2011 resulted from seasonal declines in public funds balances.

Average funding sources increased $400.8 million, or 6.2%, from first quarter 2010 to first quarter 2011. The growth during this period resulted from a $217.7 million, or 19.4%, rise in average demand deposits and a $393.4 million, or 14.1%, increase in average interest-bearing transactional deposits (collectively core transactional deposits). The addition of core transactional deposits reflected ongoing sales efforts, customers’ liquidity preferences in today’s low interest rate environment, and the acquisition of deposits through the Company’s FDIC-assisted transactions. This increase was partially offset by a decline in more expensive short-term borrowings.

Interest earned on covered loans is generally recognized through the accretion of the discount taken on expected future cash flows. The Company realized actual cash flows in excess of estimates on certain loans of $954,000 for first quarter 2011 and

$629,000 in fourth quarter 2010. This additional income is included in interest on covered interest-earning assets in the table above and increased net interest margin by 5 basis points for first quarter 2011 and 3 basis points for fourth quarter 2010.

Noninterest Income Analysis

(Dollar amounts in thousands)


	Quarters Ended								March 31, 2011 Percent Change From
	March 31, 2011		December 31, 2010			March 31, 2010			December 31, 2010			March 31, 2010
Service charges on deposit accounts	$	8,144	$	9,202		$	8,381			(11.5	)		(2.8	)
Trust and investment advisory fees		4,116		4,040			3,593			1.9			14.6
Other service charges, commissions, and fees		4,914		4,506			4,172			9.1			17.8
Card-based fees		4,529		4,640			3,893			(2.4	)		16.3

Total fee-based revenues		21,703		22,388			20,039			(3.1	)		8.3
Bank owned life insurance income		252		696			248			(63.8	)		1.6
Other income		978		451			516			116.9			89.5

Total operating revenues		22,933		23,535			20,803			(2.6	)		10.2
Trading gains, net		744		970			461			(23.3	)		61.4
Gains on securities sales, net		540		1,718			5,820			(68.6	)		(90.7	)
Securities impairment losses		—		(56	)		(2,763	)		(100.0	)		(100.0	)

Total noninterest income	$	24,217	$	26,167		$	24,321			(7.5	)		(0.4	)

Fee-based revenues for first quarter 2011 declined 3.1% from fourth quarter 2010 and rose 8.3% compared to first quarter 2010. The reduction from fourth quarter 2010 to first quarter 2011 was attributed to an 11.5% decline in service charges on deposits partially offset by a 9.1% increase in other service charges, commissions, and fees (primarily merchant fee income). The decline in service charges from fourth quarter 2010 was due primarily to lower overdraft occurrences by customers as well as normal seasonality.

For first quarter 2011 compared to first quarter 2010, there were increases in all categories of operating revenues except for service charges on deposits.

An increase in trust assets under management drove the increase in trust and investment advisory fees from first quarter 2010 to first quarter 2011. During this period, trust assets under management increased 14.7% from $4.0 billion to $4.6 billion. Approximately $500 million of this increase was derived equally from sales efforts and improving market values with the remaining $100 million increase resulting from the addition of managed assets acquired in an FDIC-assisted transaction.

Increased merchant fees led the increase in other service charges, commissions, and fees for both prior periods presented. The year-over-year increase in merchant fees was due primarily to a 25% volume increase resulting from customers acquired in an FDIC-assisted transaction. The increase in card-based fees from first quarter 2010 to first quarter 2011 was attributed to both volume and transaction rates.

Noninterest Expense Analysis

(Dollar amounts in thousands)


	Quarters Ended						March 31, 2011 Percent Change From
	March 31, 2011		December 31, 2010		March 31, 2010		December 31, 2010			March 31, 2010
Salaries and employee benefits	$	32,523	$	31,028	$	26,884		4.8			21.0
OREO expense, net:
Write-downs of OREO		1,112		11,957		2,338		(90.7	)		(52.4	)
Losses on the sales of OREO, net		1,115		3,455		5,541		(67.7	)		(79.9	)
OREO operating expense, net		1,704		2,408		2,908		(29.2	)		(41.4	)

Total OREO expense		3,931		17,820		10,787		(77.9	)		(63.6	)

Loan remediation costs		2,848		2,330		3,224		22.2			(11.7	)
Other professional services		2,271		2,194		3,316		3.5			(31.5	)

Total professional services		5,119		4,524		6,540		13.2			(21.7	)

FDIC premiums		2,725		2,967		2,532		(8.2	)		7.6
Net occupancy and equipment expense		9,103		7,916		8,168		15.0			11.4
Technology and related costs		2,623		3,209		2,483		(18.3	)		5.6
Advertising and promotions		1,079		1,637		1,059		(34.1	)		1.9
Other expenses		8,020		7,973		7,020		0.6			14.2

Total noninterest expense	$	65,123	$	77,074	$	65,473		(15.5	)		(0.5	)

Total noninterest expense, excluding losses recognized on OREO	$	62,896	$	61,662	$	59,594		2.0			5.5

Total noninterest expense for first quarter 2011 decreased 15.5% from fourth quarter 2010 and was relatively flat from first quarter 2010. The majority of the increase in salaries and employee benefits from fourth quarter 2010 resulted from annual merit increases and increased benefit costs. The increase from first quarter 2010 to first quarter 2011 was impacted by the timing of certain benefit accruals, as well as annual merit increases and an increase in overall staffing levels, including additional staff employed through the Company’s FDIC-assisted transactions.

OREO expenses were elevated in 2010 due to higher levels of write-downs and losses on sales of OREO and related operating expenses.

An increase in the rates charged for property taxes as well as property taxes associated with branches acquired through the Company’s FDIC-assisted transactions resulted in an increase in net occupancy and equipment expense from both prior periods. In addition, in fourth quarter 2010, the Company received a refund for prior years’ property taxes based on an appeal of assessed property values.

Income Taxes

Income tax expense decreased from first quarter 2010 to first quarter 2011. Effective January 1, 2011, the Illinois corporate income tax rate increased from 7.3% to 9.5%. As a result of this rate change, the Company recorded a $1.6 million state tax benefit related to the write-up of state deferred tax assets. This benefit was offset, in part, by a $108,000 increase in first quarter 2011 income tax expense related to the rate increase. The rate increase is expected to result in an approximately 1% increase to the Company’s effective income tax rate in 2011.

LOAN PORTFOLIO AND ASSET QUALITY

Loan Portfolio Composition

(Dollar amounts in thousands)


	As Of									March 31, 2011 Percent Change From
	March 31, 2011		% of Total			December 31, 2010		March 31, 2010		December 31, 2010			March 31, 2010
Corporate:
Commercial and industrial	$	1,493,465		29.2	%	$	1,465,903	$	1,454,714		1.9			2.7
Agricultural and farmland		234,898		4.6	%		227,756		200,527		3.1			17.1
Commercial real estate:
Office		412,256		8.1	%		396,836		396,749		3.9			3.9
Retail		320,313		6.3	%		328,751		346,218		(2.6	)		(7.5	)
Industrial		473,311		9.3	%		478,026		496,616		(1.0	)		(4.7	)
Multi-family		344,645		6.8	%		349,862		348,178		(1.5	)		(1.0	)
Residential construction		151,887		3.0	%		174,690		276,322		(13.1	)		(45.0	)
Commercial construction		153,392		3.0	%		164,472		233,662		(6.7	)		(34.4	)
Other commercial real estate		850,334		16.7	%		856,357		790,502		(0.7	)		7.6

Total commercial real estate		2,706,138		53.2	%		2,748,994		2,888,247		(1.6	)		(6.3	)

Total corporate loans		4,434,501		87.0	%		4,442,653		4,543,488		(0.2	)		(2.4	)


Consumer:
Home equity		434, 138		8.5	%		445,243		464,655		(2.5	)		(6.6	)
Real estate 1-4 family		178,538		3.5	%		160,890		139,840		11.0			27.7
Other consumer		48,366		1.0	%		51,774		47,891		(6.6	)		1.0

Total consumer loans		661,042		13.0	%		657,907		652,386		(0.5	)		1.3

Total loans, excluding covered loans		5,095,543		100.0	%		5,100,560		5,195,874		(0.1	)		(1.9	)

Covered loans		352,357					374,640		144,369		(5.9	)		144.1

Total loans	$	5,447,900				$	5,475,200	$	5,340,243		(0.5	)		2.0

Total loans of $5.4 billion as of March 31, 2011 remained relatively unchanged from December 31, 2010. A decline in the construction loan portfolios from December 31, 2010 was substantially offset by annualized growth of 7.6% in commercial and industrial loans.

Total loans increased $107.7 million, or 2.0%, from March 31, 2010 to March 31, 2011. The growth was driven by the addition of covered loans acquired through the Company’s FDIC-assisted transactions, which more than offset declines in the construction loan portfolios.

Asset Quality

(Dollar amounts in thousands)


	As Of
	2011			2010
	March 31			December 31			March 31
*Non-performing assets, excluding covered loans and covered OREO*
Non-accrual loans	$	186,563		$	211,782		$	216,073
90 days or more past due loans		5,231			4,244			7,995

Total non-performing loans		191,794			216,026			224,068

Restructured loans (still accruing interest)		14,120			22,371			5,168
Other real estate owned		33,863			31,069			62,565

Total non-performing assets	$	239,777		$	269,466		$	291,801

30-89 days past due loans	$	28,927		$	23,646		$	28,018

Non-accrual loans to total loans		3.66	%		4.15	%		4.16	%
Non-performing loans to total loans		3.76	%		4.24	%		4.31	%
Non-performing assets to loans plus OREO		4.67	%		5.25	%		5.55	%
Allowance for credit losses to loans		2.85	%		2.84	%		2.79	%
Allowance for credit losses to non-accrual loans		78	%		69	%		67	%
Allowance for credit losses to non-performing loans		76	%		67	%		65	%

*Covered loans and covered OREO ⁽¹⁾*
Non-accrual loans	$	—		$	—		$	—
90 days or more past due loans ⁽²⁾		91,165			86,910			52,464

Total non-performing loans		91,165			86,910			52,464
Restructured loans (still accruing interest)		—			—			—
Other real estate owned		28,871			29,698			8,649

Total non-performing assets	$	120,036		$	116,608		$	61,113

30-89 days past due loans	$	10,399		$	18,445		$	10,175

*Non-performing assets, including covered loans and covered OREO*
Non-accrual loans	$	186,563		$	211,782		$	216,073
90 days or more past due loans		96,396			91,154			60,459

Total non-performing loans		282,959			302,936			276,532

Restructured loans (still accruing interest)		14,120			22,371			5,168
Other real estate owned		62,734			60,767			71,214

Total non-performing assets	$	359,813		$	386,074		$	352,914

30-89 days past due loans	$	39,326		$	42,091		$	38,193

Non-accrual loans to total loans		3.42	%		3.87	%		4.05	%
Non-performing loans to total loans		5.19	%		5.53	%		5.18	%
Non-performing assets to loans plus OREO		6.53	%		6.97	%		6.52	%
Allowance for credit losses to loans		2.66	%		2.65	%		2.71	%
Allowance for credit losses to non-accrual loans		78	%		69	%		67	%
Allowance for credit losses to non-performing loans		51	%		48	%		52	%

⁽¹⁾	Covered loans and covered OREO were acquired through transactions with the FDIC and are subject to loss sharing agreements with the FDIC whereby the Company is indemnified against the majority of any losses incurred related to these assets.

⁽²⁾	These loans are past due based on contractual terms, but are performing according to the Company’s current expectations of cash flows.

Non-performing assets, excluding covered loans and covered OREO, were $239.8 million at March 31, 2011, decreasing $29.7 million, or 11.0%, from December 31, 2010 and $52.0 million, or 17.8%, from March 31, 2010. The reductions were substantially due to remediation activities, dispositions, and charge-offs partially offset by loans downgraded to non-accrual status. During the quarter, the Company either sold or transferred to held-for-sale $19.5 million in non-performing assets and returned $9.6 million of restructured loans to performing status as a result of satisfactory payment performance after the modification of the loans.

Charge-off Data

(Dollar amounts in thousands)


	Quarters Ended
	March 11, 2011			% of Loan Category		% of Total		December 31, 2010			March 31, 2010
Net loans charged-off:
Commercial and industrial	$	3,128			0.21		16.9	$	10,198		$	4,463
Agricultural and farmland		9			—		—		125			141
Office, retail, and industrial		1,183			0.10		6.4		2,888			1,644
Multi-family		549			0.16		3.0		1,206			512
Residential construction		5,418			3.57		29.4		35,935			4,452
Commercial construction		261			0.17		1.4		7,743			270
Other commercial real estate		5,358			0.63		29.0		12,202			4,449
Consumer		2,563			0.39		13.9		2,612			2,403

Total net loans charged-off, excluding covered loans		18,469			0.36		100.0		72,909			18,334

Net charge-offs on covered loans		1,092							935			—

Total net charge-offs	$	19,561						$	73,844		$	18,334


Net loan charge-offs to average loans, excluding covered loans, annualized:
Quarter-to-date		1.48	%						5.61	%		1.43	%
Year-to-date		1.48	%						2.80	%		1.43	%

Net charge-offs for first quarter 2011 were down $54.3 million, or 73.5%, from fourth quarter 2010 and up $1.2 million, or 6.7%, from first quarter 2010. The quarter-over-quarter variance was driven by the additional charge-offs related to the change in disposition strategy implemented in fourth quarter 2010 with respect to certain construction related loans and OREO properties.

CAPITAL MANAGEMENT

Capital Ratios

(Dollar amounts in thousands)


										Regulatory Minimum For “Well- Capitalized”			Excess Over Required Minimums at March 31, 2011
	March 31,						December 31,
	2011			2010			2010
Regulatory capital ratios:
Total capital to risk-weighted assets		16.36	%		17.23	%		16.18	%		10.00	%		64	%	$	400,070
Tier 1 capital to risk-weighted assets		14.29	%		15.17	%		14.11	%		6.00	%		138	%	$	521,783
Tier 1 leverage to average assets		11.53	%		13.06	%		11.16	%		5.00	%		131	%	$	509,471

Regulatory capital ratios, excluding preferred stock⁽¹⁾:
Total capital to risk-weighted assets		13.29	%		14.20	%		13.12	%		10.00	%		33	%	$	207,070
Tier 1 capital to risk-weighted assets		11.22	%		12.14	%		11.06	%		6.00	%		87	%	$	328,783
Tier 1 leverage to average assets		9.06	%		10.45	%		8.74	%		5.00	%		81	%	$	316,471

Tier 1 common capital to risk-weighted assets ^{(2) (3)}		9.88	%		10.81	%		9.72	%		N/A	⁽³⁾		N/A	⁽³⁾		N/A	⁽³⁾
Tangible common equity ratios:
Tangible common equity to tangible assets		8.26	%		9.17	%		7.99	%		N/A	⁽³⁾		N/A	⁽³⁾		N/A	⁽³⁾
Tangible common equity, excluding other comprehensive loss, to tangible assets		8.58	%		9.42	%		8.34	%		N/A	⁽³⁾		N/A	⁽³⁾		N/A	⁽³⁾
Tangible common equity to risk-weighted assets		10.18	%		10.52	%		9.93	%		N/A	⁽³⁾		N/A	⁽³⁾		N/A	⁽³⁾

⁽¹⁾	These ratios exclude the impact of $193.0 million in preferred shares issued to the U.S. Department of the Treasury in December 2008 as part of its Capital Purchase Plan.

⁽²⁾	Excludes the impact of preferred shares and trust-preferred securities.

⁽³⁾	Ratio is not subject to formal Federal Reserve regulatory guidance.

All regulatory mandated ratios for characterization as “well-capitalized” were exceeded as of March 31, 2011.

About the Company

First Midwest is the premier relationship-based banking franchise in the growing Chicagoland banking market. As one of the Chicago metropolitan area’s largest independent bank holding companies, First Midwest provides the full range of both business and retail banking and trust and investment management services through some 100 offices located primarily in metropolitan Chicago. First Midwest was recently recognized by the Chicago Tribune as one of the top 20 best places to work in Chicago among large employers. First Midwest Bank received the highest numerical score among retail banks in the Midwest region in the proprietary J.D. Power and Associates 2011 Retail Banking Satisfaction Study (SM). The study was based on 51,620 total responses measuring 27 providers in the Midwest region (IA, IL, KS, MO, MN, and WI) and measures opinions of consumers with their primary banking provider. These proprietary study results are based on experiences and perceptions of consumers surveyed in January 2011. Your experiences may vary. Visit jdpower.com.

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.

Conference Call

A conference call to discuss the Company’s results, outlook and related matters will be held on Wednesday, April 27, 2011 at 10:00 A.M. (EDT). Members of the public who would like to listen to the conference call should dial (877) 317-6789 (U.S. domestic) or (412) 317-6789 (international) and ask for the First Midwest Bancorp, Inc. Earnings Conference Call. 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 (877) 344-7529 (U.S. domestic) or (412) 317-0088 (international) conference I.D. 450019 beginning one hour after completion of the live call until 9:00 A.M. (EDT) on May 5, 2011. 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:

•

Condensed Consolidated Statements of Financial Condition

•

Condensed Consolidated Statements of Income

•

Non-performing Assets and Past Due Loans

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.

Condensed Consolidated Statements of Financial Condition

Unaudited

(Amounts in thousands)


	March 31, 2011			December 31, 2010			March 31, 2010
*Assets*
Cash and due from banks	$	104,982		$	102,495		$	97,251
Interest-bearing deposits in other banks		421,478			483,281			2,928
Federal funds sold and other short-term investments		—			—			26,735
Trading account securities, at fair value		16,227			15,282			14,114
Securities available-for-sale, at fair value		1,057,758			1,057,802			1,152,039
Securities held-to-maturity, at amortized cost		81,218			81,320			90,449
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		61,338			61,338			59,428
Loans held-for-sale		3,800			236			—
Loans, excluding covered loans		5,095,543			5,100,560			5,195,874
Covered loans		352,357			374,640			144,369
Allowance for loan losses		(142,503	)		(142,572	)		(144,824	)


Net loans		5,305,397			5,332,628			5,195,419

Other real estate owned (“OREO”), excluding covered OREO		33,863			31,069			62,565
Covered OREO		28,871			29,698			8,649
Federal Deposit Insurance Corporation (“FDIC”) indemnification asset		78,468			88,981			54,591
Premises, furniture, and equipment		138,119			140,907			128,180
Investment in bank owned life insurance		197,889			197,644			198,201
Goodwill and other intangible assets		290,135			291,383			280,477
Accrued interest receivable and other assets		225,445			232,909			221,881


Total assets	$	8,044,988		$	8,146,973		$	7,592,907


*Liabilities and Stockholders’ Equity*

Deposits
Transactional deposits	$	4,545,670		$	4,519,492		$	3,948,025
Time deposits		1,874,224			1,991,984			1,916,079


Total deposits		6,419,894			6,511,476			5,864,104
Borrowed funds		273,342			303,974			387,163
Subordinated debt		137,746			137,744			137,737
Accrued interest payable and other liabilities		90,130			81,734			60,135


Total liabilities		6,921,112			7,034,928			6,449,139

Preferred stock		191,050			190,882			190,392
Common stock		858			858			858
Additional paid-in capital		422,405			437,550			434,704
Retained earnings		794,569			787,678			815,395
Accumulated other comprehensive loss, net of tax		(24,373	)		(27,739	)		(18,878	)
Treasury stock, at cost		(260,633	)		(277,184	)		(278,703	)


Total stockholders’ equity		1,123,876			1,112,045			1,143,768


Total liabilities and stockholders’ equity	$	8,044,988		$	8,146,973		$	7,592,907

Condensed Consolidated Statements of Income

Unaudited

(Amounts in thousands, except per share data)


	Quarters Ended
	March 31, 2011			December 31, 2010			March 31, 2010
*Interest Income*
Loans	$	62,917		$	63,983		$	64,480
Investment securities		9,865			10,230			13,952
Covered loans		7,822			7,431			2,962
Federal funds sold and other short–term investments		679			832			385

Total interest income		81,283			82,476			81,779

*Interest Expense*
Deposits		7,671			7,907			10,545
Borrowed funds		680			711			1,010
Subordinated debt		2,286			2,279			2,286

Total interest expense		10,637			10,897			13,841

Net interest income		70,646			71,579			67,938
Provision for loan losses		19,492			73,897			18,350

Net interest income (loss) after provision for loan losses		51,154			(2,318	)		49,588

*Noninterest Income*
Service charges on deposit accounts		8,144			9,202			8,381
Trust and investment management fees		4,116			4,040			3,593
Other service charges, commissions, and fees		4,914			4,506			4,172
Card-based fees		4,529			4,640			3,893

Total fee-based revenues		21,703			22,388			20,039
Bank owned life insurance income		252			696			248
Securities gains, net		540			1,662			3,057
Other		1,722			1,421			977

Total noninterest income		24,217			26,167			24,321

*Noninterest Expense*
Salaries and employee benefits		32,523			31,028			26,884
OREO expense, net		3,931			17,820			10,787
FDIC premiums		2,725			2,967			2,532
Net occupancy and equipment expense		9,103			7,916			8,168
Technology and related costs		2,623			3,209			2,483
Professional fees		5,119			4,524			6,540
Other		9,099			9,610			8,079

Total noninterest expense		65,123			77,074			65,473

Income (loss) before income tax		10,248			(53,225	)		8,436
Income tax expense (benefit)		30			(25,066	)		355

Net income (loss)		10,218			(28,159	)		8,081
Preferred dividends		(2,581	)		(2,579	)		(2,572	)
Net (income) loss applicable to non-vested restricted shares		(140	)		411			(81	)

Net income (loss) applicable to common shares	$	7,497		$	(30,327	)	$	5,428

Diluted earnings (loss) per common share	$	0.10		$	(0.41	)	$	0.08
Dividends declared per common share	$	0.01		$	0.01		$	0.01
Weighted average diluted shares outstanding		73,151			73,085			70,469

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FIRST MIDWEST BANCORP INC Reports