First Midwest Bancorp, Inc. Announces 2012 Fourth Quarter and

First Midwest Bancorp, Inc. Announces 2012 Fourth Quarter and Full
Year Results 
Significant Increase in Quarterly Earnings; Substantially Improved
Credit Quality; Stable Net Interest Margin; Strong Fee-Based Revenue
Growth 
ITASCA, IL -- (Marketwire) -- 01/23/13 --  Today, First Midwest
Bancorp, Inc. (the "Company" or "First Midwest") (NASDAQ: FMBI), the
holding company of First Midwest Bank (the "Bank"), reported results
of operations and financial condition for the fourth quarter of 2012.
Net income applicable to common shares for the fourth quarter of 2012
was $13.0 million, or $0.18 per share. This compares to a net loss
applicable to common shares of $47.8 million, or $0.65 per share, for
the third quarter of 2012 and net income applicable to common shares
of $3.9 million, or $0.05 per share, for the fourth quarter of 2011. 
For the full year of 2012, the Company had a net loss applicable to
common shares of $20.7 million, or $0.28 per share. This compares to
net income applicable to common shares of $25.4 million, or $0.35 per
share, for the year ended December 31, 2011.  
"2012 was a year of transition," said Michael L. Scudder, President
and Chief Executive Officer of First Midwest Bancorp, Inc. "Through
aggressive remediation, we met our goal of substantially reducing
problem assets. While impactful to earnings, these steps greatly
improved our credit risk profile. At the same time, core earnings
remained solid in a tough business environment. Investments made to
enhance and align our sales and operations teams contributed to
diversified, underlying loan growth, significantly greater fee-based
revenues, and balanced expense control."  
Mr. Scudder continued, "As a result of these actions, we enter 2013 a
much stronger company. Continued business momentum, lower credit
costs, and control of spending will serve to strengthen earnings.
While evolving regulatory expectations and low interest rates will
present challenges, our strong capital base, augmented by improved
earnings, leaves us well positioned to pursue opportunities for
growth and return value to our shareholders."  
SELECT HIGHLIGHTS 
Operating Performance for the Fourth Quarter  


 
--  Net income applicable to common shares of $13.0 million, or $0.18 per
    share, compared to a net loss of $0.65 per share for the third quarter
    of 2012, and net income of $0.05 per share for the fourth quarter of
    2011.
--  Fee-based revenues of $26.7 million, up 9.8% from the third quarter of
    2012 and 12.0% from the fourth quarter of 2011.
--  Net interest margin of 3.84%, stable compared to the third quarter of
    2012.
--  Total loans, excluding covered loans, of $5.2 billion, grew by $101.6
    million from December 31, 2011.

  
Credit and Capital as of December 31, 2012  


 
--  Non-accrual loans of $84.5 million declined 15.1% from September 30,
    2012 and 54.9% from December 31, 2011.
--  Allowance for credit losses to loans, including covered loans, of
    1.91%, compared to 1.93% at September 30, 2012.
--  Allowance for credit losses to non-accrual loans, excluding covered
    loans, of 107%, up from 96% at September 30, 2012.
--  Tier 1 common capital to risk-weighted assets of 9.33%, an increase of
    40 basis points from September 30, 2012.

  
Significant Fourth Quarter Events  


 
--  Completed bulk loan sales, resulting in a gain, less commissions and
    other selling expenses, of $2.6 million.
--  Repurchased $4.3 million of 6.95% junior subordinated debentures and
    $12.0 million of 5.85% subordinated notes.
--  Recognized as a Chicago Tribune Top Workplace for the third
    consecutive year.

  
OPERATING PERFORMANCE  


 
                                                                            
                      Operating Performance Highlights                      
                       (Dollar amounts in thousands)                        
                                                                            
                             Quarters Ended                Years Ended      
                   --------------------------------- ---------------------- 
                    December   September   December   December    December  
                    31, 2012   30, 2012    31, 2011   31, 2012    31, 2011  
                   ---------- ----------  ---------- ----------  ---------- 
Net income (loss)  $   13,216 $  (48,527) $    6,924 $  (21,054) $   36,563 
Net income (loss)                                                           
 applicable to                                                              
 common shares     $   13,022 $  (47,812) $    3,877 $  (20,748) $   25,437 
Diluted earnings                                                            
 (loss) per common                                                          
 share             $     0.18 $    (0.65) $     0.05 $    (0.28) $     0.35 
Return on average                                                           
 common equity           5.50%    (19.36%)      1.60%     (2.14%)      2.69%
Return on average                                                           
 assets                  0.65%     (2.35%)      0.34%     (0.26%)      0.45%
Net interest margin      3.84%      3.83%       3.95%      3.86%       4.04%
Loans, excluding                                                            
 covered loans, at                                                          
 period end        $5,189,676 $5,218,345  $5,088,113 $5,189,676  $5,088,113 
Average                                                                     
 transactional                                                              
 deposits (1)      $5,276,919 $5,247,485  $4,866,800 $5,107,966  $4,755,111 
(1) Comprised of demand deposits and interest-bearing transactional         
    accounts.                                                               

 
SIGNIFICANT FOURTH QUARTER EVENTS  
Loan Sales 
During the fourth quarter of 2012, the Company disposed of $172.5
million in original carrying value of certain non-performing and
performing potential problem loans through multiple bulk loan sales.
These transactions resulted in proceeds of $94.5 million and a gain,
less commissions and other selling expenses, of $2.6 million.  
Retirement of Debt  
During the fourth quarter of 2012, the Company repurchased and
retired $4.3 million of 6.95% junior subordinated debentures at a
premium of 3.0% and $12.0 million of 5.85% subordinated notes at a
premium of 5.0%. These transactions resulted in the recognition of a
pre-tax loss of $814,000 and will reduce future annual interest
expense by approximately $1.0 million.  


 
                                                                            
                                                                            
               Pre-Tax, Pre-Provision Operating Earnings (1)                
                       (Dollar amounts in thousands)                        
                                                                            
                               Quarters Ended              Years Ended      
                      ------------------------------- --------------------- 
                      December  September   December   December   December  
     
                 31, 2012  30, 2012    31, 2011   31, 2012   31, 2011  
                      -------- ----------  ---------- ---------  ---------- 
Income (loss) before                                                        
 income tax expense   $ 19,410 $  (85,520) $    7,220 $ (49,936) $   41,071 
Provision for loan                                                          
 losses                  5,593    111,791      21,902   158,052      80,582 
                      -------- ----------  ---------- ---------  ---------- 
  Pre-tax, pre-                                                             
   provision earnings   25,003     26,271      29,122   108,116     121,653 
                      -------- ----------  ---------- ---------  ---------- 
Adjustments to Pre-                                                         
 Tax, Pre-Provision                                                         
 Earnings                                                                   
Net securities gains                                                        
 (losses)                   88       (217)       (110)     (921)      2,410 
Net losses on sales                                                         
 and valuation                                                              
 adjustments of other                                                       
 real estate owned                                                          
 ("OREO"), excess                                                           
 properties, assets                                                         
 held-for sale, and                                                         
 other                  (1,864)    (3,280)     (1,425)   (7,974)    (10,797)
Gain, less related                                                          
 expenses, on bulk                                                          
 loan sales              2,639          -           -     2,639           - 
Accelerated                                                                 
 amortization of FDIC                                                       
 indemnification asset  (2,705)    (4,000)          -    (6,705)          - 
Gains on acquisitions,                                                      
 net of integration                                                         
 costs                    (588)     3,074       1,076     2,486       1,076 
Losses on early                                                             
 extinguishment of                                                          
 debt                     (814)         -           -      (558)          - 
Severance-related                                                           
 costs                       -       (840)     (2,000)   (1,155)     (2,269)
                      -------- ----------  ---------- ---------  ---------- 
  Total adjustments     (3,244)    (5,263)     (2,459)  (12,188)     (9,580)
                      -------- ----------  ---------- ---------  ---------- 
  Pre-tax, pre-                                                             
   provision operating                                                      
   earnings           $ 28,247 $   31,534  $   31,581 $ 120,304  $  131,233 
                      ======== ==========  ========== =========  ========== 
                                                                            
(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       
    provided this non-GAAP performance result, which the Company believes is
    useful because it assists investors in assessing the Company's operating
    performance. Although it 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.                

 
Pre-tax, pre-provision operating earnings of $28.2 million for the
fourth quarter of 2012 decreased from the third quarter of 2012 and
the fourth quarter of 2011. These reductions were driven mainly by
lower net interest income and higher noninterest expense, excluding
certain non-operating items, which was partially offset by gains on
mortgage loan sales and an increase in other fee-based revenues.  
For the full year of 2012, pre-tax, pre-provision operating earnings
declined $10.9 million compared to 2011, resulting primarily from a
reduction in net interest income, and was partially mitigated by an
increase in fee-based revenues, gains on mortgage loan sales, and the
recognition of net trading income for 2012 compared to losses for
2011.  
Further discussion of net interest income and noninterest income and
expense is presented in later sections of this release.  


 
                                                                            
                                                                            
                   Net Interest Income and Margin Analysis                  
                        (Dollar amounts in thousands)                       
                                                                             
                                                  Quarters Ended             
                                    -----------------------------------------
                                                December 31, 2012            
                                    -----------------------------------------
                                                                    Yield/   
                                       Average        Interest       Rate    
                                       Balance      Earned/Paid       (%)    
                                    -------------  ------------- ------------
Assets:                                                                      
Federal funds sold and other                                                 
 interest-earning assets            $     562,288  $         345         0.24
Trading securities                         15,597             94         2.41
Investment securities (1)               1,144,997         10,154         3.55
Federal Home Loan Bank and Federal                                           
 Reserve Bank stock                        47,232            349         2.96
Loans held-for-sale                        53,808            323         2.39
Loans, excluding covered loans (1)      5,160,576         62,192         4.79
Covered interest-earning assets (2)       248,971          3,975         6.35
                                    -------------  ------------- ------------
 Total interest-earning assets (1)      7,233,469         77,432         4.26
                                                   ------------- ------------
Cash and due from banks                   122,328                            
Allowance for loan losses                (103,302)                           
Other assets                           
   886,748                            
                                    -------------                            
 Total assets                       $   8,139,243                            
                                    =============                            
Liabilities and Stockholders'                                                
 Equity:                                                                     
Interest-bearing transaction                                                 
 deposits                           $   3,468,397            903         0.10
Time deposits                           1,447,918          2,832         0.78
Borrowed funds                            185,390            497         1.07
Senior and subordinated debt              214,764          3,445         6.38
                                    -------------  ------------- ------------
 Total interest-bearing liabilities     5,316,469          7,677         0.57
                                                   ------------- ------------
Demand deposits                         1,808,522                            
                                    -------------                            
 Total funding sources                  7,124,991                            
Other liabilities                          73,077                            
Stockholders' equity - common             941,175                            
Stockholders' equity - preferred                -                            
                                    -------------                            
 Total liabilities and stockholders'                                         
  equity                            $   8,139,243                            
                                    =============                            
Net interest income/margin (1)                     $      69,755         3.84
                                                   ============= ============
                                                                             
 
                                                                            
                                                  Quarters Ended            
                                    ----------------------------------------
                                               September 30, 2012           
                                    ----------------------------------------
                                                                   Yield/   
                                       Average       Interest       Rate    
                                       Balance     Earned/Paid       (%)    
                                    ------------- ------------- ------------
Assets:                                                                     
Federal funds sold and other                                                
 interest-earning assets            $     435,528 $         265         0.24
Trading securities                         15,389            25         0.65
Investment securities (1)               1,220,654        10,841         3.55
Federal Home Loan Bank and Federal                                          
 Reserve Bank stock                        47,111           341         2.90
Loans held-for-sale                             -             -            -
Loans, excluding covered loans (1)      5,353,911        64,289         4.78
Covered interest-earning assets (2)       276,180         3,223         4.64
                                    ------------- ------------- ------------
 Total interest-earning assets (1)      7,348,773        78,984         4.28
                                                  ------------- ------------
Cash and due from banks                   128,714                           
Allowance for loan losses                (118,925)                          
Other assets                              868,551                           
                                    -------------                           
 Total assets                       $   8,227,113                           
                                    =============                           
Liabilities and Stockholders'                                               
 Equity:                                                                    
Interest-bearing transaction                                                
 deposits                           $   3,394,675           898         0.11
Time deposits                           1,498,993         3,228         0.86
Borrowed funds                            189,835           507         1.06
Senior and subordinated debt              231,156         3,691         6.35
                                    ------------- ------------- ------------
 Total interest-bearing liabilities     5,314,659         8,324         0.62
                                                  ------------- ------------
Demand deposits                         1,852,810                           
                                    -------------                           
 Total funding sources                  7,167,469                           
Other liabilities                          77,062                           
Stockholders' equity - common             982,582                           
Stockholders' equity - preferred                -                           
                                    -------------                           
 Total liabilities and stockholders'                                        
  equity                            $   8,227,113                           
                                    =============                           
Net interest income/margin (1)                    $      70,660         3.83
                                                  ============= ============
                                                                            
 
                                                                            
                                                  Quarters Ended            
                                    ----------------------------------------
                                                December 31, 2011           
                                    ----------------------------------------
                                                                   Yield/   
                                       Average       Interest       Rate    
                                       Balance     Earned/Paid       (%)    
                                    ------------- ------------- ------------
Assets:                                                                     
Federal funds sold and other                                                
 interest-earning assets            $     718,631 $         450         0.25
Trading securities                         13,420            92         2.74
Investment securities (1)               1,069,844        11,224         4.20
Federal Home Loan Bank and Federal                                          
 Reserve Bank stock                        58,187           341         2.34
Loans held-for-sale                             -             -            -
Loans, excluding covered loans (1)      5,085,792        63,202         4.93
Covered interest-earning assets (2)       343,479         6,787         7.84
                                    ------------- ------------- ------------
 Total interest-earning assets (1)      7,289,353        82,096         4.47
                                                  ------------- ------------
Cash and due from banks                   116,166                           
Allowance for loan losses                (133,824)                          
Other assets                              870,808                           
                                    -------------                           
 Total assets                       $   8,142,503                           
                                    =============                           
Liabilities and Stockholders'                                               
 Equity:                                                                    
Interest-bearing transaction                                                
 deposits                           $   3,253,579         1,029         0.13
Time deposits                           1,688,971         4,933         1.16
Borrowed funds                            252,839           670         1.05
Senior and subordinated debt              187,488         3,047         6.45
                                    ------------- ------------- ------------
 Total interest-bearing liabilities     5,382,877         9,679         0.71
                                                  ------------- ------------
Demand deposits                         1,613,221                           
                                    -------------                           
 Total funding sources                  6,996,098                           
Other liabilities                          73,721                           
Stockholders' equity - common             961,500                           
Stockholders' equity - preferred          111,184                           
                                    -------------                           
 Total liabilities and stockholders'                                        
  equity                            $   8,142,503                           
                                    =============                           
Net interest income/margin (1)                    $      72,417         3.95
                                                  ============= ============
                                                                            
(1) Revenue from tax-exempt securities and investments that receive tax     
    credits is presented on a basis comparable to taxable securities and    
    investments. Consequently, interest income and yields are presented on a
    tax-equivalent basis, assuming a federal income tax rate of 35%. This   
    non-GAAP financial measure assists management in assessing the          
    comparability of revenue arising from both taxable and tax-exempt       
    sources. The corresponding income tax impact related to tax-exempt items
    is recorded within income tax expense. These adjustments have no impact 
    on net income.                                                          
(2) Covered interest-earning assets consist of loans acquired through the   
    Company's Federal Deposit Insurance Corporation ("FDIC")-assisted       
    transactions subject to loss sharing agreements and the related FDIC    
    indemnification asset.                                                  

 
For the fourth quarter of 2012, average interest-earning assets
declined $115.3 million from the third quarter of 2012 and $55.9
million from the fourth quarter of 2011. The linked-quarter decline
in average loans was impacted by the transfer of loans to
held-for-sale at the end of the third quarter of 2012 and the
accelerated resolution of certain credits in the fourth quarter of
2012. In addition, $37.1 million of mortgage loans outstanding at
September 30, 2012 were sold during the fourth quarter of 2012.
Compared to December 31, 2011, a reduction in federal funds sold and
other interest-earning assets and covered interest-earning assets
more than offset a rise in investment securities and increased loan
balances.  
Average funding sources for the fourth quarter of 2012 were $42.5
million lower than the third quarter of 2012 and up $128.9 million
from the fourth quarter of 2011. Seasonal declines in public demand
deposits primarily contributed to the decrease in average funding
sources from the third quarter of 2012. Compared to the fourth
quarter of 2011, the increase in average demand and interest-bearing
transaction deposits reflects acquisition activity that occurred in
December 2011 and August 2012. 
Tax-equivalent net interest margin for the current quarter was 3.84%,
remaining stable compared to the third quarter of 2012 and declining
11 basis points compared to the fourth quarter of 2011. The decrease
compared to December 31, 2011 was driven by a decline in market
interest rates, which contributed to lower yields earned on
investment securities and loans, and was mitigated by a reduction in
rates paid on retail time deposits.  
Interest earned on covered assets is generally recognized through the
accretion of the discount taken on expected future cash flows.
Changes in the yield on covered interest-earning assets from the
third quarter of 2012 and the fourth quarter of 2011 were driven by
revised estimates of future cash flows and accelerated amortization
of the FDIC indemnification asset. In addition, the yield for the
fourth quarter of 2011 benefited from the resolution of certain loans
where the cash proceeds exceeded estimates.  


 
                                                                            
                                                                            
                        Noninterest Income Analysis                         
                       (Dollar amounts in thousands)                        
                                                                            
                                                       December 31, 2012    
                             Quarters Ended           Percent Change From   
                     ----------------------------- ------------------------ 
                      December  September December   September    December  
                      31, 2012   30, 2012 31, 2011   30, 2012     31, 2011  
                     ---------- --------- -------- ------------ ----------- 
Service charges on                                                          
 deposit accounts    $    9,689 $   9,502 $  9,957          2.0        (2.7)
Wealth management                                                           
 fees                     5,590     5,415    5,052          3.2        10.6 
Other service                                                               
 charges,                                                                   
 commissions, and                                                           
 fees                     6,177     4,187    3,877         47.5        59.3 
Card-based fees           5,274     5,246    4,971          0.5         6.1 
                     ---------- --------- -------- ------------ ----------- 
  Total fee-based                                                           
   revenues              26,730    24,350   23,857          9.8        12.0 
Net trading gains (1)       116       685      919        (83.1)      (87.4)
Bank-owned life                                                             
 insurance ("BOLI")                                                         
 and other income           815     1,027      893        (20.6)       (8.7)
                     ---------- --------- -------- ------------ ----------- 
  Total operating                                                           
   revenues              27,661    26,062   25,669          6.1         7.8 
Net securities gains                                                        
 (losses)                    88      (217)    (110)         N/M         N/M 
Gain on bulk loan                                                           
 sales                    5,153         -        -        100.0       100.0 
Losses on early                                                             
 extinguishment of                                                          
 debt                      (814)        -        -       (100.0)     (100.0)
Gains on acquisitions         -     3,289    1,076       (100.0)     (100.0)
                     ---------- --------- -------- ------------ ----------- 
  Total noninterest                                                         
   income            $   32,088 $  29,134 $ 26,635         10.1        20.5 
                     ========== ========= ======== ============ =========== 
                                                                            
N/M - Not meaningful.                                                       
                                                                            
(1) Net trading gains result from changes in the fair value of diversified  
    investment securities held in a grantor trust under deferred            
    compensation agreements and are substantially offset by nonqualified    
    plan expense for each period presented.                                 

 
Total fee-based revenues for the fourth quarter of 2012 grew 9.8%
compared to the third quarter of 2012 and 12.0% from the fourth
quarter of 2011. The increase in fee-based revenues from both prior
periods presented was attributed primarily to gains on mortgage loan
sales, an increase in service charges on business checking accounts,
and higher debit card income. An increase in merchant fees driven by
higher processing volumes also contributed to the growth compared to
December 31, 2011.  
As described in the "Significant Quarter Events" section, the Company
completed bulk loan sales of certain non-performing and performing
potential problem loans, which resulted in a gain, before commissions
and other selling expenses, of $5.2 million. In addition, a pre-tax
loss of $814,000 was recognized on the repurchase and retirement of
junior subordinated debentures and subordinated notes during the
fourth quarter of 2012.  


 
                                                                            
                                                                            
                        Noninterest Expense Analysis                        
                       (Dollar amounts in thousands)                        
                                                                            
                                                       December 31, 2012    
                           Quarters Ended             Percent Change From   
                ----------------------------------- ----------------------- 
                  December   September    December   September    December  
                  31,2012     30,2012     31,2011     30,2012     31,2011   
                ----------- ----------- ----------- ----------- ----------- 
Salaries and                                                                
 wages          $    27,036 $    26,064 $    26,380         3.7         2.5 
Nonqualified                                                                
 plan expense                                                               
 (1)                    205         817       1,208       (74.9)      (83.0)
Retirement and                                                              
 other employee                                                             
 benefits             6,787       6,230       7,632         8.9       (11.1)
                ----------- ----------- ----------- ----------- ----------- 
  Total                                                                     
   compensation                                                             
   expense           34,028      33,111      35,220         2.8        (3.4)
                ----------- ----------- ----------- ----------- ----------- 
Net losses on                                                               
 sales and                                                                  
 valuation                                                                  
 adjustments of                                                             
 OREO                    31       2,025       1,425       (98.5)      (97.8)
Net OREO                                                                    
 operating                                                                  
 expense              1,294       1,183       1,540         9.4       (16.0)
                ----------- ----------- ----------- ----------- ----------- 
  Total OREO                                                                
   expense            1,325       3,208       2,965       (58.7)      (55.3)
                ----------- ----------- ----------- ----------- ----------- 
Loan remediation                                                            
 costs                5,654       3,206       4,846        76.4        16.7 
Other                                                                       
 professional                                                               
 services             4,761       3,459       3,180        37.6        49.7 
                ----------- ----------- ----------- ----------- ----------- 
  Total                                                                     
   professional                                                             
   services          10,415       6,665       8,026        56.3        29.8 
                ----------- ----------- ----------- ----------- ----------- 
Net occupancy                                                               
 and equipment                                                              
 expense              8,747       8,108       7,681         7.9        13.9 
Technology and                                                              
 related costs        3,231       2,906       2,876        11.2        12.3 
FDIC premiums         1,763       1,785       1,758        (1.2)        0.3 
Advertising and                                                             
 promotions           1,744       1,427       1,239        22.2        40.8 
Merchant card                                                               
 expense              2,192       2,272       1,849        (3.5)       18.6 
Other expenses        7,457       6,641       4,977        12.3        49.8 
Accelerated                                                                 
 amortization of                                                            
 FDIC                                                                       
 indemnification                                                            
 asset                2,705       4,000           -       (32.4)      100.0 
                ----------- ----------- ----------- ----------- ----------- 
  Total                                                                     
   noninterest                                                              
   expense      $    73,607 $    70,123 $    66,591         5.0        10.5 
                =========== =========== =========== =========== =========== 
                                                                            
(1) Nonqualified plan expense results from changes in the Company's         
    obligation to participants under deferred compensation agreements.      

 
Total noninterest expense for the fourth quarter of 2012 increased
5.0% compared to the third quarter of 2012 and 10.5% compared to the
fourth quarter of 2011.  
Salaries and wages increased from the third quarter of 2012 due to a
decrease in deferred salaries resulting from lower new loan volume,
short-term staffing c
osts associated with the FDIC-assisted
acquisition of Waukegan Savings Bank ("Waukegan Savings"), and higher
short-term incentive compensation expense. This was partially
mitigated by a reduction in general salaries expense from fewer full
time employees. 
For the quarter ended December 31, 2011, a $1.3 million correction of
the 2010 actuarial pension expense calculation drove higher
retirement and employee benefit expenses compared to December 31,
2012. The fourth quarter of 2012 also reflects an increase in
post-employment benefits expense.  
OREO expenses declined from both prior periods presented due to a
gain on the sale of a vacant commercial lot during the fourth quarter
of 2012. In addition, the elevated levels of valuation adjustments
during the third quarter of 2012 resulted from declines in the values
of one commercial property and one vacant land parcel.  
Fourth quarter 2012 loan remediation costs were elevated due to
expenses of $2.5 million related to the previously discussed bulk
loan sales. This increase in expense was partially mitigated by
declines in real estate taxes paid on non-performing loans in the
fourth quarter of 2012.  
Other professional services increased compared to the third quarter
of 2012 and the fourth quarter of 2011 due to higher personnel
recruitment expenses, the acceleration of certain capitalized costs,
and increased attorney fees related to various legal proceedings.  
Net occupancy and equipment expense increased from both prior periods
presented driven by the timing of general improvements to facilities
and equipment, operating expenses for former Waukegan Savings
branches prior to conversion, and increased real estate tax expenses.
These expenses were partially offset by lower utilities costs from
mild weather conditions.  
Higher technology and related costs for the fourth quarter of 2012
resulted from conversion expenses related to Waukegan Savings.  
The accelerated amortization of the FDIC indemnification asset
results from 
an adjustment in the timing and amount of future cash
flows expected to be received from the FDIC under the loss sharing
agreements based on management's periodic estimates of future cash
flows from covered loans. This charge benefited the yield on covered
interest earning assets in the fourth quarter of 2012 and is expected
to result in higher interest income on covered assets in future
periods.  
Valuation adjustments of $1.3 million on a former banking office
transferred to OREO in the fourth quarter of 2012 contributed to the
variance from both prior periods presented.  
LOAN PORTFOLIO AND ASSET QUALITY 


 
                                                                            
                         Loan Portfolio Composition                         
                       (Dollar amounts in thousands)                        
                                                                            
                                                          December 31, 2012 
                                                           Percent Change   
                                    As Of                       From        
                    ------------------------------------ ------------------ 
                      December    September    December  September December 
                        31,          30,         31,        30,       31,   
                        2012        2012         2011       2012     2011   
                    ----------- ------------ ----------- --------- -------- 
Corporate:                                                                  
  Commercial and                                                            
   industrial       $ 1,631,474 $  1,610,169 $ 1,458,446       1.3     11.9 
  Agricultural          268,618      259,787     243,776       3.4     10.2 
  Commercial real                                                           
   estate:                                                                  
    Office              474,717      484,215     444,368      (2.0)     6.8 
    Retail              368,796      356,093     334,034       3.6     10.4 
    Industrial          489,678      490,023     520,680      (0.1)    (6.0)
    Multi-family        285,481      309,509     288,336      (7.8)    (1.0)
    Residential                                                             
     construction        61,462       61,920     105,836      (0.7)   (41.9)
    Commercial                                                              
     construction       124,954      136,509     144,909      (8.5)   (13.8)
    Other commercial                                                        
     real estate        773,121      780,712     888,146      (1.0)   (13.0)
                    ----------- ------------ ----------- --------- -------- 
      Total                                                                 
       commercial                                                           
       real estate    2,578,209    2,618,981   2,726,309      (1.6)    (5.4)
                    ----------- ------------ ----------- --------- -------- 
        Total                                                               
         corporate                                                          
         loans        4,478,301    4,488,937   4,428,531      (0.2)     1.1 
                    ----------- ------------ ----------- --------- -------- 
Consumer:                                                                   
  Home equity loans     390,033      397,506     416,194      (1.9)    (6.3)
  1-4 family                                                                
   mortgages            282,948      292,908     201,099      (3.4)    40.7 
  Installment loans      38,394       38,994      42,289      (1.5)    (9.2)
                    ----------- ------------ ----------- --------- -------- 
        Total                                                               
         consumer                                                           
         loans          711,375      729,408     659,582      (2.5)     7.9 
                    ----------- ------------ ----------- --------- -------- 
      Total loans,                                                          
       excluding                                                            
       covered loans  5,189,676    5,218,345   5,088,113      (0.5)     2.0 
Covered loans           197,894      216,610     260,502      (8.6)   (24.0)
                    ----------- ------------ ----------- --------- -------- 
      Total loans   $ 5,387,570 $  5,434,955 $ 5,348,615      (0.9)     0.7 
                    =========== ============ =========== ========= ======== 

 
Total loans, excluding covered loans, of $5.2 billion declined
modestly compared to September 30, 2012, as continued growth in the
commercial and industrial ("C&I") and agricultural portfolios was
more than offset by the accelerated resolution of certain credits. In
addition, $37.1 million of mortgage loans outstanding at September
30, 2012 were sold during the fourth quarter of 2012.  
Compared to December 31, 2011, total loans, excluding covered loans,
increased $101.6 million, reflecting growth primarily in the C&I,
agricultural, and 1-4 family portfolios. Loans acquired in the
Waukegan Savings transaction during the third quarter of 2012 and
continued origination efforts drove the rise in 1-4 family mortgages.
During the previous twelve months, decreases in the construction
portfolios were mostly driven by efforts to reduce lending exposure
to less favorable categories. The completion of the bulk loan sales
during the fourth quarter of 2012 resulted in the disposition of
$172.5 million in original carrying value of certain non-performing
and performing potential problem loans, which also contributed to
declines across the loan portfolio.  


 
                                                                            
                                                                            
                    Asset Quality Indicators by Category                    
                        (Dollar amounts in thousands)                       
                                                                            
                                         Performing Loans                   
                        --------------------------------------------------  
                                       Special                              
                            Pass       Mention    Substandard     Total     
                        -----------  -----------  -----------  -----------  
December 31, 2012                                                           
  Commercial and                                                            
   industrial           $ 1,558,932  $    37,833  $     8,768  $ 1,605,533  
  Agricultural              267,114          331            -      267,445  
  Commercial real                                                           
   estate:                                                                  
    Office, retail, and                                                     
     industrial           1,235,950       57,271       16,746    1,309,967  
    Multi-family            282,126        1,921            -      284,047  
    Residential                                                             
     construction            33,392       11,870       11,588       56,850  
    Commercial                                                              
     construction            95,567       14,340       14,174      124,081  
    Other commercial                                                        
     real estate            712,702       14,056       30,149      756,907  
                        -----------  -----------  -----------  -----------  
      Total commercial                                                      
       real estate        2,359,737       99,458       72,657    2,531,852  
                        -----------  -----------  -----------  -----------  
        Total corporate                                                     
         loans            4,185,783      137,622       81,425    4,404,830  
  Consumer loans            700,312            -            -      700,312  
                        -----------  -----------  -----------  -----------  
      Total loans       $ 4,886,095  $   137,622  $    81,425  $ 5,105,142  
                        ===========  ===========  ===========  ===========  
Changes from:                                                               
  September 30, 2012           (0.3%)       (4.9%)       14.4%        (0.3%)
  December 31, 2011             8.6%       (50.2%)      (35.7%)        4.2% 
                                                                            
                                                                            
                                                                            
 
                                                  
                                                  
      Asset Quality Indicators by Category        
          (Dollar amounts in thousands)           
                                                  
                                                  
                                                  
                        Non-accrual     Total     
                           Loans        Loans     
                        -----------  -----------  
December 31, 2012                                 
  Commercial and                                  
   industrial           $    25,941  $ 1,631,474  
  Agricultural                1,173      268,618  
  Commercial real                                 
   estate:                                        
    Office, retail, and                           
     industrial              23,224    1,333,191  
    Multi-family              1,434      285,481  
    Residential                                   
     construction             4,612       61,462  
    Commercial                                    
     construction               873      124,954  
    Other commercial                              
     real estate             16,214      773,121  
                        -----------  -----------  
      Total commercial                            
       real estate           46,357    2,578,209  
                        -----------  -----------  
        Total corporate                           
         loans               73,471    4,478,301  
  Consumer loans             11,063      711,375  
                        -----------  -----------  
      Total loans       $    84,534  $ 5,189,676  
                        ===========  ===========  
Changes from:                                     
  September 30, 2012          (15.1%)       (0.5%)
  December 31, 2011           (54.9%)        2.0% 

 
The combination of special mention loans and substandard loans was
consistent with September 30, 2012 and declined $184.2 million, or
45.7%, from December 31, 2011. The improvement from December 31, 2011
was driven by the completion of the bulk loan sales during the fourth
quarter of 2012, in addition to ongoing remediation activities. As of
December 31, 2012, special mention, substandard, and non-accrual
loans totaled $303.6 million, compared to $577.8 million at December
31, 2011.  


 
                                                                            
                                                                            
                               Asset Quality                                
                       (Dollar amounts in thousands)                        
                                                                            
                                                       December 31, 2012    
                                As Of                 Percent Change From   
                  -------------------------------- ------------------------ 
                   December   September  December    September    December  
                   31, 2012   30, 2012   31, 2011    30, 2012     31, 2011  
                  ---------- ---------- ---------- ------------ ----------- 
Asset quality,                                                              
 excluding                                                                  
 covered loans                                                              
 and covered                                                                
 OREO(1)                                                                    
Non-accrual loans $   84,534 $   99,579 $  187,325        (15.1)      (54.9)
90 days or more                                                             
 past due loans        8,689     12,582      9,227        (30.9)       (5.8)
                  ---------- ---------- ---------- ------------ ----------- 
  Total non-                                                                
   performing                                                               
   loans              93,223    112,161    196,552        (16.9)      (52.6)
Troubled debt                                                               
 restructurings                                                             
 (still accruing                                                            
 interest)             6,867      6,391     17,864          7.4       (61.6)
OREO                  39,953     36,487     33,975          9.5        17.6 
                  ---------- ---------- ---------- ------------ ----------- 
  Total non-                                                                
   performing                                                               
   assets         $  140,043 $  155,039 $  248,391         (9.7)      (43.6)
                  ========== ========== ========== ============ =========== 
30-89 days past                                                             
 due loans        $   22,666 $   20,088 $   27,495         12.8       (17.6)
Allowance for                                                               
 credit losses    $   90,750 $   95,548 $  120,973         (5.0)      (25.0)
Non-accrual loans                                                           
 to total loans         1.63%      1.91%      3.68%                         
Non-performing                                                              
 loans to total                                                             
 loans                  1.80%      2.15%      3.86%                         
Non-performing                                                              
 assets to loans                                                            
 plus OREO              2.68%      2.95%      4.85%                         
Allowance for                                                               
 credit losses to                                                           
 loans                  1.75%      1.83%      2.38%                         
Allowance for                                                               
 credit losses to                                                           
 non-accrual                                                                
 loans                   107%        96%        65%                         
                                                                            
Allowance for                                                               
 credit losses,                                      
                       
 including                                                                  
 covered loans    $  102,812 $  104,995 $  121,962         (2.1)      (15.7)
Allowance for                                                               
 credit losses to                                                           
 loans, including                                                           
 covered loans          1.91%      1.93%      2.28%                         
                                                                            
(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 on these assets.                                               

 
Non-performing assets, excluding covered loans and covered OREO, were
$140.0 million at December 31, 2012, decreasing $15.0 million from
September 30, 2012 and $108.3 million from December 31, 2011.  


 
                                                                            
                                                                            
                               Charge-Off Data                              
                        (Dollar amounts in thousands)                       
                                                                            
                                           Quarters Ended                   
                        ----------------------------------------------------
                        December   % of  September   % of  December   % of  
                        31, 2012  Total   30, 2012   Total 31, 2011   Total 
                        -------- ------- --------- ---------------- --------
Net loan charge-offs                                                        
 (1):                                                                       
  Commercial and                                                            
   industrial           $  1,778    28.4 $  41,781     33.4$  8,910     32.3
  Agricultural              (177)   (2.8)    4,531      3.6     484      1.8
  Office, retail, and                                                       
   industrial                 95     1.5    29,368     23.5   3,779     13.7
  Multi-family                 9     0.1     2,755      2.2   4,803     17.4
  Residential                                                               
   construction              134     2.1     9,242      7.4   2,498      9.1
  Commercial                                                                
   construction              100     1.6    11,037      8.8   1,673      6.1
  Other commercial real                                                     
   estate                  1,786    28.5    23,452     18.7   3,002     10.9
  Consumer                 2,536    40.6     2,920      2.4   2,395      8.7
                        -------- ------- --------- -------- ------- --------
    Total net loan                                                          
     charge-offs,                                                           
     excluding covered                                                      
     loans                 6,261   100.0   125,086    100.0  27,544    100.0
                                 =======           ========         ========
    Net covered loan                                                        
     charge-offs (1)       1,465               442            3,687         
                        --------         ---------         --------         
      Total net loan                                                        
       charge-offs      $  7,726         $ 125,528         $ 31,231         
                        ========         =========         ========         
Net loan charge-offs to                                                     
 average loans,                                                             
 excluding covered                                                          
 loans, annualized:                                                         
  Quarter-to-date           0.48%             9.29%            2.15%        
  Year-to-date              3.32%             4.26%            1.84%        
                                                                            
(1) Amounts represent charge-offs, net of recoveries.                       

 
Net loan charge-offs for the fourth quarter of 2012 were $7.7 million,
down $117.8 million, or 93.8%, from the third quarter of 2012 and
$23.5 million, or 75.3%, from December 31, 2011. The higher level of
charge-offs in the third quarter of 2012 resulted from accelerated
credit remediation actions taken by management for select credits.  
CAPITAL MANAGEMENT  


 
                                                                            
                               Capital Ratios                               
                        (Dollar amounts in thousands)                       
                                                                            
                                               Regulatory                   
                                                 Minimum      Excess Over   
                  December September December      For     Required Minimums
                     31,      30,       31,      "Well-     at December 31, 
                    2012      2012     2011   Capitalized"        2012      
                  -------- --------- -------- ------------ -----------------
Regulatory capital                                                          
 ratios:                                                                    
  Total capital to                                                          
   risk-weighted                                                            
   assets            11.90%    11.65%   13.68%       10.00%     19% $120,412
  Tier 1 capital                                                            
   to risk-                                                                 
   weighted assets   10.28%     9.92%   11.61%        6.00%     71% $271,569
  Tier 1 leverage                                                           
   to average                                                               
   assets             8.40%     8.13%    9.28%        5.00%     68% $264,032
Tier 1 common                                                               
 capital to risk-                                                           
 weighted assets                                                            
 (1)                  9.33%     8.93%   10.26%     N/A (2) N/A (2)   N/A (2)
Tangible common                                                             
 equity ratios                                                              
 (3):                                                                       
  Tangible common                                                           
   equity to                                                                
   tangible assets    8.44%     8.26%    8.83%     N/A (2) N/A (2)   N/A (2)
  Tangible common                                                           
   equity,                                                                  
   excluding other                                                          
   comprehensive                                                            
   loss, to                                                                 
   tangible assets    8.64%     8.38%    9.00%     N/A (2) N/A (2)   N/A (2)
  Tangible common                                                           
   equity to risk-                                                          
   weighted assets   10.39%    10.12%   10.88%     N/A (2) N/A (2)   N/A (2)
Non-performing                                                              
 assets to                                                                  
 tangible common                                                            
 equity and                                                                 
 allowance for                                                              
 credit losses       18.36%    20.50%   31.01%     N/A (2) N/A (2)   N/A (2)
                                                                            
(1) Excludes the impact of trust-preferred securities.                      
(2) Ratio is not subject to formal Federal Reserve regulatory guidance.     
(3) Tangible common equity ("TCE") represents common stockholders' equity   
    (i.e., total stockholders' equity less preferred stock) less goodwill   
    and identifiable intangible assets, net of related deferred tax         
    liabilities. Return on TCE measures the Company's earnings as a         
    percentage of TCE. In management's view, Tier 1 common and TCE measures 
    are meaningful to the Company, as well as analysts and investors, in    
    assessing the Company's use of equity and in facilitating comparisons   
    with competitors.                                                       

 
The Company's regulatory capital ratios increased compared to the
third quarter of 2012 due to increased earnings, which more than
offset the impact of the repurchase and retirement of $16.3 million
of junior subordinated debentures and subordinated notes.  
As of December 31, 2012, the Company's regulatory ratios exceeded all
regulatory mandated ratios for characterization as
"well-capitalized." 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 dynamic Chicagoland banking market. As one of the Chicago
metropolitan area's largest independent bank holding companies, First
Midwest provides the full range of business and retail banking and
wealth management services through approximately 95 offices located
in communities in metropolitan Chicago, northwest Indiana, central
and western Illinois, and eastern Iowa. First Midwest has been
recognized by the Chicago Tribune as one of Chicago's Top Workplaces
for the third consecutive year by being named a National Standard Top
Workplace. Additionally, Forbes has recognized First Midwest as one
of America's Most Trustworthy Companies for 2012.  
Safe Harbor Statement  
This press release may contain "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, 2011 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. The Company undertakes no duty to update any
forward-looking statements contained in 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, January 23, 2013 at 10:00
AM (ET). Members of the public who would like to listen to the
conference call should dial (888) 317-6016 (U.S. domestic) or (412)
317-6016 (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. 10022875 beginning one
hour after completion of the live call until 9:00 A.M. (ET) on
January 31, 2013. 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

  
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/investorrelations.  


 
                                                                            
                                                                            
          Condensed Consolidated Statements of Financial Condition          
                                 Unaudited                                  
                           (Amounts in thousands)                           
                                                                            
                                 December 31,   September 30,  December 31, 
                                     2012           2012           2011     
                                 ------------  --------------  ------------ 
Assets                                                                      
Cash and due from banks          $    149,420  $      124,447  $    123,354 
Interest-bearing deposits in                                                
 other banks                          566,846         393,927       518,176 
Trading securities, at fair                                                 
 value                                 14,162          15,512        14,469 
Securities available-for-sale,                                              
 at fair value                      1,082,403       1,191,582     1,013,006 
Securities held-to-maturity, at                                             
 amortized cost                        34,295          41,944        60,458 
Federal Home Loan Bank and                                                  
 Federal Reserve Bank stock, at                                             
 cost                                  47,232          47,232        58,187 
Loans held-for-sale                         -          90,011         4,200 
Loans, excluding covered loans      5,189,676       5,218,345     5,088,113 
Covered loans                         197,894         216,610       260,502 
Allowance for loan and covered                                              
 loan losses                          (99,446)       (102,445)     (119,462)
                                 ------------  --------------  ------------ 
    Net loans                       5,288,124       5,332,510     5,229,153 
                                 ------------  --------------  ------------ 
OREO, excluding covered OREO           39,953          36,487        33,975 
Covered OREO                           13,123           8,729        23,455 
FDIC indemnification asset             37,051          47,191        65,609 
Premises, furniture, and                                                    
 equipment                            121,596         132,005       134,977 
Investment in BOLI                    206,405         206,043       206,235 
Goodwill and other intangible                                               
 assets                               281,059         281,914       283,650 
Accrued interest receivable and                                             
 other assets                         218,170         217,642       204,690 
                                 ------------  --------------  ------------ 
    Total assets                 $  8,099,839  $    8,167,176  $  7,973,594 
                                 ============  ==============  ============ 
Liabilities and Stockholders'                                               
 Equity                                                                     
Deposits                                                                    
  Transactional deposits         $  5,272,307  $    5,253,658  $  4,820,058 
  Time deposits                     1,399,948       1,495,397     1,659,117 
                                 ------------  --------------  ------------ 
    Total deposits                  6,672,255       6,749,055     6,479,175 
Borrowed funds                        185,984         183,691       205,371 
Senior and subordinated debt          214,779         231,171       252,153 
Accrued interest payable and                                                
 other liabilities                     85,928          69,824        74,308 
                                 ------------  --------------  ------------ 
    Total liabilities               7,158,946       7,233,741     7,011,007 
                                 ------------  --------------  ------------ 
Common stock                              858             858           858 
Additional paid-in capital            418,318         417,245       428,001 
Retained earnings                     786,453         773,976       810,487 
Accumulated other comprehensive                                             
 loss, net of tax                     (15,660)         (9,248)      (13,276)
Treasury stock, at cost              (249,076)       (249,396)     (263,483)
                                 ------------  --------------  ------------ 
    Total stockholders' equity        940,893         933,435       962,587 
                                 ------------  --------------  ------------ 
    Total liabilities and                                                   
     stockholders' equity        $  8,099,839  $    8,167,176  $  7,973,594 
                                 ============  ==============  ============ 
                                                                            
                                                                            
                                                                            
                Condensed Consolidated Statements of Income                 
                                 Unaudited                                  
               (Amounts in thousands, except per share data)                
                                                                            
                              Quarters Ended               Years Ended      
                     -------------------------------- --------------------- 
                      December   September  December   December   December  
                      31, 2012   30, 2012   31, 2011   31, 2012   31, 2011  
                     ---------- ---------- ---------- ---------- ---------- 
Interest Income                                                             
Loans                $   61,596 $   63,672 $   62,774 $  248,752 $  252,865 
Investment                                                                  
 securities               7,517      8,058      8,313     32,923     36,659 
Covered loans             3,975      3,223      6,787     15,873     28,904 
Federal funds sold                                                          
 and other short-                                                           
 term investments         1,111        631        883      3,021      3,083 
                     ---------- ---------- ---------- ---------- ---------- 
  Total interest                                                            
   income                74,199     75,584     78,757    300,569    321,511 
                     ---------- ---------- ---------- ---------- ---------- 
Interest Expense                                                            
Deposits                  3,735      4,126      5,962     18,052     27,256 
Borrowed funds              497        507        670      2,009      2,743 
Senior and                                                                  
 subordinated debt        3,445      3,691      3,047     14,840      9,892 
                     ---------- ---------- ---------- ---------- ---------- 
  Total interest                                                            
   expense                7,677      8,324      9,679     34,901     39,891 
                     ---------- ---------- ---------- ---------- ---------- 
  Net interest                                                              
   income                66,522     67,260     69,078    265,668    281,620 
Provision for loan                                                          
 and covered loan                                                           
 losses                   5,593    111,791     21,902    158,052     80,582 
                     ---------- ---------- ---------- ---------- ---------- 
  Net interest                                                              
   income after                                                             
   provision for                                                            
   loan and covered                                                         
   loan losses           60,929    (44,531)    47,176    107,616    201,038 
                     ---------- ---------- ---------- ---------- ---------- 
Noninterest Income                                                          
Service charges on                                                          
 deposit accounts         9,689      9,502      9,957     36,699     37,879 
Wealth management                                                           
 fees                     5,590      5,415      5,052     21,791     20,324 
Other service                                                               
 charges,                                                                   
 commissions, and                                                           
 fees                     6,177      4,187      3,877     17,981     16,386 
Card-based fees           5,274      5,246      4,971     20,852     19,593 
                     ---------- ---------- ---------- ---------- ---------- 
  Total fee-based                                                           
   revenues              26,730     24,350     23,857     97,323     94,182 
Net securities gains                                                        
 (losses)                    88       (217)      (110)      (921)     2,410 
Gain on bulk loan                                                           
 sales                    5,153          -          -      5,153          - 
Gains on                                                                    
 acquisitions                 -      3,289      1,076      3,289      1,076 
Net trading gains                                                           
 (losses)                   116        685        919      1,627       (691)
Other                         1      1,027        893      3,477      4,960 
                     ---------- ---------- ---------- ---------- ---------- 
  Total noninterest                                                         
   income                32,088     29,134     26,635    109,948    101,937 
                     ---------- ---------- ---------- ---------- ---------- 
Noninterest Expense                                                         
Salaries and                                                                
 employee benefits       34,028     33,111     35,220    130,755    128,774 
Net OREO expense          1,325      3,208      2,965     10,521     16,293 
Net occupancy and                                                           
 equipment expense        8,747      8,108      7,681     32,699     32,953 
Professional                                                                
 services                10,415      6,665      8,026     29,614     26,356 
Technology and                                                              
 related costs            3,231      2,906      2,876     11,846     10,905 
FDIC premiums             1,763      1,785      1,758      6,926      7,990 
Accelerated                                                                 
 amortization of                                                            
 FDIC                                                                       
 indemnification                                                            
 asset                    2,705      4,000          -      6,705          - 
Other                    11,393     10,340      8,065     38,434     38,633 
                     ---------- ---------- ---------- ---------- ---------- 
  Total noninterest                                                         
   expense               73,607     70,123     66,591    267,500    261,904 
                     ---------- ---------- ---------- ---------- ---------- 
Income (loss) before                                                        
 income tax expense      19,410    (85,520)     7,220    (49,936)    41,071 
Income tax expense                                                          
 (benefit)                6,194    (36,993)       296    (28,882)     4,508 
                     ---------- ---------- ---------- ---------- ---------- 
  Net income (loss)      13,216    (48,527)     6,924    (21,054)    36,563 
Preferred dividends           -          -     (3,027)         -    (10,776)
Net (income) loss                                                           
 applicable to non-                                                         
 vested restricted                                                          
 shares                    (194)       715        (20)       306       (350)
                     ---------- ---------- ---------- ---------- ---------- 
  Net income (loss)                                                         
   applicable to                                                            
   common shares     $   13,022 $  (47,812)$    3,877 $  (20,748)$   25,437 
                     ========== ========== ========== ========== ========== 
  Diluted earnings                                                          
   (loss) per common                                                        
   share             $     0.18 $    (0.65)$     0.05 $    (0.28)$     0.35 
  Dividends declared                                                        
   per common share  $     0.01 $     0.01 $     0.01 $     0.04 $     0.04 
Weighted average                                                            
 diluted common                                                             
 shares outstanding      73,758     73,742     73,382     73,666     73,289 

  
CONTACT:
Paul F. Clemens
(Investors)
EVP and Chief Financial Officer
(630) 875-7347
paul.clemens@firstmidwest.com 
James M. Roolf
(Media)
SVP and Corporate Relations Officer
(630) 875-7533
jim.roolf@firstmidwest.com 
First Midwest Bancorp, Inc.
One Pierce Place, Suite 1500
Itasca, Illinois 60143-9768
(630) 875-7450
www.firstmidwest.com 
 
 
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