Raymond James
Institutional Investors Conference
Orlando, FL
March 8, 2011
2011 First Midwest Bancorp, Inc.
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
(“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.
(“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
First Midwest Presentation Index
Who We Are
Operating Performance
Credit And Capital
Market Opportunities
Going Forward
4
Who We Are
5
Overview Of First Midwest
Headquartered In Suburban
Chicago
Chicago
$8.1bn Assets
$5.5bn Loans (5)
$6.5bn Deposits
69% Transactional
$4.5bn Trust Assets
Loan Mix
Deposit Mix4
Highly Efficient Platform - $66mm
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
3 FDIC Acquisitions Since 4Q09
~ $800mm In Deposits
$5.5bn
$6.5bn
Note: Information as of 31-Dec-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-10.
4 Based on quarterly average deposit mix as of 31-Dec-10.
5 Includes $375mm in covered loans stemming from three FDIC-assisted transactions since 30-Sept-09.
Consumer
12%
Commercial
& Industrial
& Industrial
31%
Commercial
Real Estate
Real Estate
50%
Savings &
NOW
NOW
29%
Demand
20%
Money
Market
Market
20%
Retail
Time¹
Time¹
21%
Jumbo Time²
10%
Covered Loans
7%
6
Operating Performance
7
Fourth Quarter and Full Year Results
1 PTPP represents Pre-Tax, Pre-Provision earnings, which is a non-GAAP financial measure. For reconciliation to GAAP measure, please refer to the appendix.
2 Includes covered loans acquired from FDIC-assisted transactions totaling $375 million and $146 million as of 31-Dec-10, 09 respectively.
Top Line Revenues, Solid Margin
Significant Growth In Low Cost Deposits
8
Fourth Quarter Highlights
Solid, Peer Leading Capital
Credit Costs Elevated But Improving
1 All dollar amounts in millions.
9
Core Business Is Solid
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; items sourced from SNL.
² Risk-Weighted Assets (RWA). 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.
Efficiency Ratio % ¹
Net Interest Margin %
4.02%
10
Continued Business Investment
Strengthening Sales
Retail Households Up 10%
Enhancing Sales Resources
Market Expansion
Improving Internet Platform
Enriching Product Offering
Overdraft Program
11
Credit & Capital
12
Loan Portfolio Overview
Branch originated
Home equity dominated
~95% in footprint
81% of portfolio, 50% CRE
Diversified + granular
Most have personal guarantees
Consumer Loans = $658mm
Home Equity
8%
8%
Other
Consumer
1%
Consumer
1%
C&I
31%
31%
Office,
Retail &
Industrial
22%
Retail &
Industrial
22%
Residential
Construction
3%
Construction
3%
Commercial
Construction &
Land 3%
Construction &
Land 3%
Multi-family
6%
6%
Other CRE
16%
16%
Commercial Loans = $4.4bn
Real Estate - 1- 4
Family
3%
Family
3%
Total Loans = $5.5bn
Note: Loan data as of 31-Dec-10.
Covered 7%
Changing Commercial Real Estate Mix
$2.7bn
Note: Loan data as of year end. Excludes covered loans acquired in FDIC-assisted transactions.
2010 Loan Mix
2007 Loan Mix
$2.6bn
Levels Reflect Improvement; Influenced By In-Flows And Disposition Strategy
Quarterly
Year Over Year
14
Non-Performing Asset Trends
$’s In Millions
$’s In Millions
15
Down ~41% From 2009
Total In-Flow Reduced From $365.3mm In 2009 To $214.5mm In 2010
Influenced By Construction And Development, Primarily Residential
Lower C&D Exposure, Delinquency Levels Reduced
Non-Accrual Loan In-Flow
Problem Asset In-Flow Reduced
Strategy Objective:
More Aggressively Pursue NPA Resolution
Focus:
Selected Construction And Land Related Assets
16
17
Addressing Reality of Credit Cycle
Conditions Slowly Improving, Real Estate Lagging
C&D Remains Under Stress, Lower Exposure
Continued Focus On Reducing NPA Levels
Adjustment Of Carrying Values To Facilitate Disposition
Continued Investment In Remediation
Multiple Strategies
Cash Flowing Properties Offer Greater Alternatives
Leading Capital Foundation
First Midwest vs. Peers
First Midwest vs. Peers
Source: Company data and SNL Financial. FMBI as of 31-Dec-10 and other companies as of 31-Dec-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 | 2/6 | 6/15 |
1
1
1
2
2
2
18
19
Market Opportunities
Market Disruption
Environment Creates Opportunities
In Greater Chicago Area
~ 40 Failures Since Start Of 2009
~ 70 Institutions ($32 Billion) With Texas Ratio > 100%
Well Positioned To Benefit
Strong Capital Position
Solid Reputation: In Marketplace 70+ Years
Tenured Sales Force
Experienced Management
21
Acquisition | Date | Deposits | Core (1) | Loans | Branches | ~ House -holds | Pre-Tax Gain |
First DuPage | 4Q09 | $232 | 26% | $212 | 1 | 3,000 | $13 |
Peotone Bank And Trust | 2Q10 | $84 | 73% | $53 | 2 | 4,000 | $4 |
Palos Bank And Trust | 3Q10 | $462 | 47% | $297 | 5 | 18,000 | $0 |
Total | $778 | $562 | 8 | 25,000 | $17 |
Acquisitions Made
1 Defined as total deposits less time deposits.
Expanded Footprint, Financially Accretive,
Solid Deposit Retention (90+%)
All dollar amounts in millions.
22
Acquisition Opportunities
Selective Criteria
Strategically And Financially Accretive
Ability To Strengthen The Company
Leverages Our Skills
Local Market Knowledge
Experienced And Successful Acquirer
7 Deals, $2.7bn Since 2003
FDIC-Assisted Deals Becoming More Competitive
Deals Likely Smaller
Eventual Shift From Assisted To Unassisted
23
Going Forward
24
Priorities for 2011
Proactively Address Credit
Lower Problem Assets
Continue To Position For Long-Term Success
Asset Formation
Investment In Sales
Expand Market Presence
Central Business District
DuPage County
Pursue Growth Opportunities
Prudently Manage Capital
25
Why First Midwest
Premier Community Banking Franchise
Strong Core
Working Through Cycle
Solid Capital; Liquidity
Experienced Team
Market Opportunities Available
Positioned For Long-term Success
26
Questions?
27
28
Appendix
30
Residential Construction & Land Loans
(Represent 3% of Total Loans; $ in Millions)
(Represent 3% of Total Loans; $ in Millions)
Non-Performing Loans
Net Charge-Offs
Loan Summary
Performing
Non-
Performing
Performing
Size of Portfolio
$123
$52
Avg. Loan Size ($000s)
$542
$747
Supported by Interest Reserve
2%
0%
30-89 Days Past Due
$0
$0
Allocated Loss Reserve
$27
NPLs / Loans
35.9%
33.8%
29.5%
27.0%
30.0%
NCOs / Avg. Loans1
42.90%
6.03%
15.45%
7.64%
71.72%
Note: Portfolio data as of 31-Dec-10, excludes covered loans.
1 Annualized.
$36
Charge-
Offs
Related to
Shift in
Strategy
Offs
Related to
Shift in
Strategy
Ordinary
Charge- Offs
Charge- Offs
31
Commercial Construction & Land Loans
(Represent 3% of Total Loans; $ in Millions)
(Represent 3% of Total Loans; $ in Millions)
Non-Performing Loans
Net Charge-Offs
NPLs / Loans | 9.0% | 8.6% | 10.1% | 11.1% | 17.4% | NCOs / Avg. Loans² | 4.07% | 0.46% | 0.21% | 0.46% | 17.33% |
Performing | Non-Performing | |
Size of Portfolio | $135 | $29 |
Avg. Loan Size ($000s) | $993 | $3,490 |
Supported by Interest Reserve | 11% | $0 |
30-89 Days Past Due | $0 | $0 |
Allocated Loss Reserve | $8 |
Note: Portfolio data as of 31-Dec-10, excludes covered loans.
1 Annualized.
$8
Charge-
Offs
Related to
Shift in
Strategy
Offs
Related to
Shift in
Strategy
Ordinary
Charge-
Offs
Charge-
Offs
Loan Summary