EXHIBIT 16










                                                               August 30, 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/A 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
Chicago, Illinois