1
July 27, 2010
First Midwest Bancorp, Inc.
Keefe, Bruyette & Woods
Investment Conference
2
2
Forward Looking Statements &
Additional Information
Additional Information
This presentation may contain, and during this presentation our management may make statements that may
constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead
represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and
outside our control. Forward-looking statements include, among other things, statements regarding our
financial performance, business prospects, future growth and operating strategies, objectives and results.
Actual results, performance or developments could differ materially from those expressed or implied by these
forward-looking statements. Important factors that could cause actual results to differ from those in the forward-
looking statements include, among others, those discussed in our Annual Report on Form 10-K, the preliminary
prospectus supplement and other reports filed with the Securities and Exchange Commission, copies of which
will be made available upon request. With the exception of fiscal year end information previously included in the
audited financial statements in our Annual Report on Form 10-K, the information contained herein is unaudited.
Except as required by law, we undertake no duty to update the contents of this presentation after the date of
this presentation.
constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead
represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and
outside our control. Forward-looking statements include, among other things, statements regarding our
financial performance, business prospects, future growth and operating strategies, objectives and results.
Actual results, performance or developments could differ materially from those expressed or implied by these
forward-looking statements. Important factors that could cause actual results to differ from those in the forward-
looking statements include, among others, those discussed in our Annual Report on Form 10-K, the preliminary
prospectus supplement and other reports filed with the Securities and Exchange Commission, copies of which
will be made available upon request. With the exception of fiscal year end information previously included in the
audited financial statements in our Annual Report on Form 10-K, the information contained herein is unaudited.
Except as required by law, we undertake no duty to update the contents of this presentation after the date of
this presentation.
The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles
(“U. S. GAAP”) and general practice within the banking industry. As a supplement to GAAP, the Company has
provided non-GAAP performance results. The Company believes that these non-GAAP financial measures are
useful because they allow investors to assess the Company’s operating performance. Although the non-GAAP
financial measures are intended to enhance investors’ understanding of the Company’s business and
performance, these non-GAAP financial measures should not be considered an alternative to GAAP.
(“U. S. GAAP”) and general practice within the banking industry. As a supplement to GAAP, the Company has
provided non-GAAP performance results. The Company believes that these non-GAAP financial measures are
useful because they allow investors to assess the Company’s operating performance. Although the non-GAAP
financial measures are intended to enhance investors’ understanding of the Company’s business and
performance, these non-GAAP financial measures should not be considered an alternative to GAAP.
3
3
First Midwest Presentation Index
Who We Are
Operating Performance
Credit And Capital
Market Opportunities
Why First Midwest
4
4
Who We Are
5
Loan Mix
Deposit Mix4
Highly Efficient Platform - $65mm
Of Deposits Per Branch Office
Of Deposits Per Branch Office
Leading Market Share In Non-
Downtown Chicago MSA ³
Downtown Chicago MSA ³
#9 In Market Share
#8 In Distribution Network
$5.2bn
$6.1bn
Note: Information as of 30-Jun-10.
¹ Defined as time deposits less than $100,000.
² Defined as time deposits greater than $100,000.
³ Source: SNL Financial. Non-downtown ranking and market share based on total deposits in Chicago MSA less deposits in the city of Chicago. Data as of 31-Dec-09
4 Based on average deposit mix as of 30-Jun-10
Consumer
12%
Commercial
& Industrial
& Industrial
32%
Commercial
Real Estate
Real Estate
55%
Savings &
NOW
NOW
29%
Demand
19%
Money
Market
Market
19%
Retail
Time¹
Time¹
22%
Jumbo Time²
11%
Overview Of First Midwest
Headquartered In Suburban
Chicago
Chicago
$7.8bn Assets
$5.2bn Loans
$6.1bn Deposits
69% Transactional
$4.0bn Trust Assets
6
6
Operating Performance
7
7
Second Quarter Results
Key Metrics | 2Q10 | 2Q09 |
Net Income Pre-Tax, Pre-Provision Earnings (1) | $7.8mm $33.0mm | $2.7mm $31.8mm |
Net Interest Margin | 4.21% | 3.53% |
Efficiency Ratio | 57.9% | 61.5% |
Loans (2) | $5.2bn | $5.3bn |
Avg. Transactional Deposits | $4.3bn | $3.7bn |
2 Excludes $226mm of covered loans acquired in First DuPage FDIC-assisted transaction in 4Q09. Also excludes $56mm of covered loans acquired in Peotone FDIC-assisted transaction in 2Q10.
1 This is a non-GAAP financial measure. For reconciliation to GAAP measure, please refer to the appendix.
8
Second Quarter Highlights
Lending Offset By Remediation
C&I up 11% Annualized Vs. 1Q10
Top Line Revenue Growth
Margin 4.21%; Improved Fee-based Revenues
Improved Credit Metrics
Ample Credit And Liquidity
9
Source: FMBI based on internal data; peer data from SNL Financial
¹ Equal to non-interest expense divided by fully taxable equivalent (FTE) net interest income and non-interest income. Excludes nonrecurring items.
² This is a non-GAAP financial measure. For reconciliation to GAAP measure, please refer to the appendix.
³ Chicago Peers based on median of MBFI, OSBC, PVTB, TAYC and WTFC.
4 Metro Peers based on median of CATY, CBSH, CFR, FCF, FMER, FULT, MBFI, ONB, PVTB, SUSQ, UMPQ, VLY, WTFC, and WTNY.
Net Interest Margin %
Comparison To Peers
10
Strengthening Our Sales Platform
Sales Team
Adding Depth And Resources
Training
Internet Enhancement
Product Alignment
11
11
Credit And Capital
12
~95% in footprint
Diversified + granular
Majority have personal guarantees
Consumer Loans = $650mm
Home Equity
9%
9%
Other
Consumer
1%
Consumer
1%
C&I
32%
32%
Office,
Retail &
Industrial
23%
Retail &
Industrial
23%
Residential
Construction
& Land 5%
Construction
& Land 5%
Commercial
Construction &
Land 4%
Construction &
Land 4%
Multi-family
7%
7%
Other CRE
16%
16%
Commercial Loans = $4.6bn
Real Estate - 1- 4
Family
3%
Family
3%
Total Loans = $5.2bn
People we know, businesses we know, markets we understand
Note: Loan data as of 30-Jun-10. Excludes $226mm of covered loans acquired in First DuPage FDIC-assisted transaction in 4Q09. Also excludes $56mm of covered loans acquired
in Peotone FDIC-assisted transaction in 2Q10.
in Peotone FDIC-assisted transaction in 2Q10.
Addressing Realities Of Credit Cycle -
Loan Portfolio Overview
Loan Portfolio Overview
Branch originated
Home equity dominated
13
Non-Accrual Loans + 90s ($mm)
5%
Performing | Non- Performing | |
Size of Portfolio ($mm) | $170 | $71 |
Avg. Loan Size ($000s) | $571 | $1,321 |
Loans > $5mm | 3 | 3 |
% of Loans In-Market | 96% | 100% |
% with Current Appraisal | 70% | 97% |
NALs + 90s / Loans | 23.2% | 31.2% | 36.0% 34.1% 29.5% | NCOs / Avg. Loans¹ | 7.2% | 7.3% | 4.8% | 42.6% 6.4% 16.6% |
Note: Portfolio data as of 30-Jun-10. ¹ Annualized
Residential Construction
14
Office | Retail | Industrial | |
Size of Portfolio ($mm) | $416 | $311 | $494 |
Avg. Loan Size (000s) | $835 | $841 | $885 |
Loans > $5mm | 18 | 9 | 14 |
Owner Occupied | 30% | 20% | 40% |
% of Loans In-Market | 93% | 96% | 96% |
Non-Accrual Loans + 90s ($mm)
2Q10 Loans: $1.2bn
Office
34%
34%
Retail
26%
26%
Industrial
40%
40%
23%
Note: Portfolio data as of 30-Jun-10. Owner occupied and loans in market as of 31-Dec-09
¹ Annualized
15
Non-Accrual Loans + 90s
Net Charge-Offs
Note: Excludes $226mm of covered loans acquired in First DuPage FDIC-assisted transaction in 4Q09. Also excludes $56mm of covered loans acquired in Peotone FDIC-assisted
transaction in 2Q10.
transaction in 2Q10.
NALs + 90s / Loans | |||||
Residential Construction & Land | 20.7 % | 27.5% | 32.3% | 34.6% | 36.0% 33.81% 29.51% |
Portfolio Excl. Resi. Const. & Land | 1.2 | 2.6 | 2.4 | 2.5 | 2.8 2.66 2.59 |
Total | 3.1 | 4.8 | 4.9 | 5.0 | 4.8 4.31 3.84 |
NCOs / Avg. Loans - Annualized | |||||
Residential Construction & Land | 7.18% | 8.91% | 7.31% | 4.78% | 42.55% 6.00% 14.97% |
Portfolio Excl. Resi. Const. & Land | 0.75 | 1.29 | 1.33 | 2.10 | 3.54 1.15 0.83% |
Total | 1.38 | 1.98 | 1.85 | 2.32 | 6.17 1.43 1.56% |
$164.7
$257.5
$263.3
$262.8
$248.3
$82.4
$31.3
$24.7
$26.3
$18.3
$224.1
$18.4
$200.0
$20.2
Historical Credit Performance
16
$153.2
$128.2
$64.2
$50.3
$42.0
Remediation efforts have resulted in much greater control over delinquencies
$36.0
$38.3
Delinquency Trends
($ in millions)
($ in millions)
17
Addressing Reality of Credit Cycle
Problems Concentrated In Residential Construction
Reflects Illiquidity Of Suburban Market
Performance Influenced By Sales And Property Values
Investment In Remediation
NPA Inflows Stabilizing; Shifting To Liquidation
Progress Influenced By Market Liquidity
30 - 89 Day Delinquencies Down 16% From 2Q09
Adjusting Carrying Values To Market And Disposition Strategy
18
Leading Capital Foundation
First Midwest vs. Peers
First Midwest vs. Peers
Source: company data and SNL Financial. FMBI as of a 30-Jun-10 and other companies as of 31-Mar-10. FMBI Tier 1 Common excludes equity credit allocated to TARP warrants.
1 Chicago Peers based on median of MBFI, OSBC, PVTB, TAYC and WTFC.
2 Metro Peers based on median of CATY, CBSH, CFR, FCF, FMER, FULT, MBFI, ONB, PVTB, SUSQ, UMPQ, VLY, WTFC, and WTNY.
Tier 1 Common
FMBI Rank | 1/6 | 2/15 |
1
1
1
2
2
2
19
19
Market Opportunities
07 26 10 14 17
20
Market Disruption
Environment Creates Opportunities
Within Chicago Market
25 Failures Since Start Of 2009
35 Institutions ($24 Billion) With Texas Ratio > 100%
Well Positioned To Benefit
Strong Capital Position
Solid Reputation: In Marketplace 70+ Years
Tenured Sales Force
Experienced Management
07 26 10 14 17
21
Acquisition Opportunities
Selective Criteria
Strategically And Financially Accretive
Ability To Strengthen The Company
Leverages Our Skills
Local Market Knowledge
Experienced And Successful Acquirer
6 Deals, $2.2bn Since 2003
FDIC Becoming More Competitive
Deals Likely Smaller
Eventual Shift From Assisted To Unassisted
21
22
22
Acquisition | Date | Deposits | Core (1) | Retention | Loans | Branch | Pre-Tax Gain |
First DuPage | 4Q09 | $229 | 26% | 90% | $226 | 1 | $13 |
Peotone Bank And Trust | 2Q10 | $84 | 49% | 100% | $56 | 2 | $4 |
Total | $313 | $282 | 3 | $17 |
Acquisitions Made
(1) Defined as total deposits less time deposits
Expanded Footprint, Financially Accretive,
Stronger Deposit Base
All dollar amounts in millions
23
23
Why First Midwest
24
Position For Long-term Success
Investment In Sales
Expand Market Presence
Pursue Growth Opportunities
Manage Through Credit Cycle
Continued Remediation Focus
NPA Trends Slower, With Declines Dependent Upon Liquidation Success
And Incremental Stress In CRE
And Incremental Stress In CRE
Manage Capital And Changing Regulatory Environment
Priorities for 2010
25
Positioned For Long-term Success
Why First Midwest
Strong Core
Working Through Cycle
Solid Capital; Liquidity
Experienced Team
Market Opportunities Available
26
Questions?
26
27
27
28
28
Appendix
29
Reconciliation of Non-GAAP Measures
($ in 000s)
($ in 000s)