KPMG PEAT MARWICK LLP                  EXHIBIT 16

                              Peat Marwick Plaza
                             303 East Wacker Drive
                            Chicago, IL 60601-9973






                                                               August 22, 1996


Securities and Exchange Commission
Washington, D.C. 10549



Ladies and Gentlemen:

We  were previously principal accountants for First Midwest Bancorp, Inc. and,
under the date of January 19,  1996, we reported on the consolidated financial
statements of First Midwest Bancorp,  Inc. and subsidiaries as of and  for the
years ended December 31, 1995 and  1994.  On August 21, 1996, our  appointment
as principal accountants was terminated.  We have read First Midwest Bancorp's
statements included under Item 4 of its Form 8-K dated August 21, 1996, and we
agree with such  statements, except that we are not in  a position to agree or
disagree  with First  Midwest's  statements that  the  change was  unanimously
recommended by the Audit Committee.

                                    Very truly yours,



                                    /s/ KPMG Peat Marwick LLP