GlobeNewswire Inc | Jan 18, 2022 08:00AM EST

January 18, 2022

CHICAGO, Jan. 18, 2022 (GLOBE NEWSWIRE) -- First Midwest Bancorp, Inc. (the "Company" or "First Midwest"), the holding company of First Midwest Bank (the "Bank"), today reported results of operations and financial condition for the fourth quarter and full year of 2021. Net income applicable to common shares for the fourth quarter of 2021 was $44 million, or $0.39 per diluted common share, compared to $50 million, or $0.44 per diluted common share, for the third quarter of 2021, and $37 million, or $0.33 per diluted common share, for the fourth quarter of 2020. For the full year of 2021, the Company reported net income applicable to common shares of $182 million, or $1.60 per diluted common share, compared to $98 million, or $0.87 per diluted common share, for the year ended December 31, 2020.

Comparative results for all periods were impacted by the timing of costs related to acquisitions. In addition, certain periods were impacted by retail and balance sheet optimization strategies, and securities gains, as well as the Company's response to the COVID-19 pandemic (the "pandemic") and federal, state and local responses to the pandemic. To facilitate comparisons between periods, adjustments to reported results have been made to reflect these impacts. For additional detail on these adjustments, see the "Non-GAAP Financial Information" section presented later in this release.

FOURTH QUARTER AND FULL YEAR HIGHLIGHTS

-- Improved diluted EPS to $0.39 for the fourth quarter of 2021 and $1.60 for the full year of 2021, up 18% and 84% from the same periods in 2020; down 5% and up 44% on an adjusted(1) basis, respectively.Generated total revenue of $183 million for the fourth quarter of 2021 and $751 million for the full year of 2021, both up 4% from the same periods in 2020. Net interest income and margin down 6% and 39 basis points ("bps"), respectively, from the fourth quarter of 2020 and down 2% and 27 bps from the full year of 2020, reflective of the lower interest rate environment and elevated liquidity.Fee-based revenues up 1% and 15% from the fourth quarter of 2020 and full year of 2020, respectively.Controlled noninterest expense to average assets of 2.18% for the fourth quarter of 2021 and 2.21% for the full year of 2021, down 7 bps and 17 bps from the same periods in 2020. -- Grew total loans to $15 billion, up 3% from the prior year, excluding PPP loans. -- Increased total average deposits to $17 billion for both the fourth quarter and full year of 2021, up 10% and 13% from the same periods in 2020. -- Established the allowance for credit losses ("ACL") at $210 million, or 1.45% of total loans, excluding PPP loans, compared to 1.77% at December 31, 2020, reflective of improving credit environment.Lowered non-performing assets and performing loans classified as substandard and special mention 21% and 16%, respectively, compared to December 31, 2020.Reduced net loan charge-offs ("NCOs") to average loans to 0.05% for the fourth quarter of 2021 and 0.23% for the full year of 2021, compared to 0.12% and 0.24% for the same periods in 2020, excluding purchased credit deteriorated ("PCD") and PPP loans. -- Generated 67 bps of Tier 1 capital to risk-weighted assets during 2021, ending the year at 12.2%, largely reflective of higher retained earnings.

"The best of First Midwest was once again on display throughout 2021," said Michael L. Scudder, Chairman of the Board and Chief Executive Officer of the Company. "The year's financial results were strong, reflecting solid operating performance. I am extremely proud of our 2,000 colleagues who represent First Midwest each day. Amid the demands of an ongoing health crisis and challenging operating environment, they have remained agile and focused all while working tirelessly to help support our clients, communities, and each other."

Mr. Scudder continued, "We are very encouraged and excited about what lies ahead for our Company. Strong capital levels and a highly engaged team provide operating flexibility as we see economic recovery and growing opportunities for business expansion. As we look to our future, our ongoing integration planning efforts relative to our announced business combination with Old National Bank are on pace and in line with our expectations. This combination will see us grow to become one of the Midwests largest commercial banks and position us well for continued expansion, investment, and innovation in talent, capabilities, and services all to the benefit of our clients, colleagues, communities and stockholders."

PENDING MERGER

First Midwest and Old National Bancorp

On June 1, 2021, the Company and Old National Bancorp ("Old National"), the holding company for Old National Bank, jointly announced that they entered into a definitive merger agreement to combine in an all-stock merger of equals transaction to create a premier Midwestern bank with approximately $45 billion of combined assets. The merger agreement provides for a fixed exchange ratio whereby holders of First Midwest common stock will receive 1.1336 shares of Old National common stock for each share of First Midwest common stock they own. The merger agreement has been unanimously approved by the boards of directors of both companies, and has also been approved by approximately 99% of the votes cast at each company's respective shareholder meeting.

As of the date of announcement, the overall transaction was valued at approximately $6.5 billion. On August 19, 2021, the Office of the Comptroller of the Currency approved the application for the merger of First Midwest Bank and Old National Bank. Completion of the merger remains subject to regulatory approval by the Board of Governors of the Federal Reserve System and certain other customary closing conditions set forth in the merger agreement.

(1) This metric is a non-GAAP financial measure. For details on the calculation of this metric, see the sections titled "Non-GAAP Financial Information" and "Non-GAAP Reconciliations" presented later in this release.

OPERATING PERFORMANCE

Net Interest Income and Margin Analysis(Dollar amounts in thousands)

Quarters Ended December 31, 2021 September 30, 2021 December 31, 2020 Yield Yield Yield Average Balance Interest / Average Interest / Average Interest / Rate Balance Rate Balance Rate (%) (%) (%)Assets Otherinterest-earning $ 2,122,042 $ 1,462 0.27 $ 1,672,005 $ 1,222 0.29 $ 1,244,999 $ 930 0.30assetsSecurities^(1) 3,308,840 18,711 2.26 3,265,812 16,189 1.98 3,164,310 17,051 2.16Federal Home LoanBank ("FHLB")andFederal 106,096 867 3.27 106,759 852 3.19 123,287 1,342 4.35Reserve Bank("FRB") stockLoans, excluding 14,308,310 122,879 3.41 14,364,785 127,631 3.53 13,335,154 126,474 3.77PPP loans^(1)PPP loans^(1) 317,553 5,119 6.40 549,380 9,772 7.06 1,013,511 15,195 5.96Total loans^(1) 14,625,863 127,998 3.47 14,914,165 137,403 3.66 14,348,665 141,669 3.93Totalinterest-earning 20,162,841 149,038 2.94 19,958,741 155,666 3.10 18,881,261 160,992 3.39assets^(1)Cash and due from 286,846 277,720 252,268 banksAllowance for loan (208,048 ) (215,395 ) (246,278 ) lossesOther assets 1,805,033 1,878,494 1,995,074 Total assets $ 22,046,672 $ 21,899,560 $ 20,882,325 Liabilities andStockholders' EquitySavings deposits $ 2,825,792 125 0.02 $ 2,785,816 124 0.02 $ 2,436,930 109 0.02NOW accounts 3,165,689 280 0.04 3,213,637 275 0.03 2,774,989 277 0.04Money market 3,316,492 510 0.06 3,211,355 549 0.07 2,923,881 694 0.09depositsTime deposits 1,736,197 1,702 0.39 1,800,493 1,915 0.42 2,047,260 3,131 0.61Borrowed funds 1,288,778 3,143 0.97 1,281,968 3,146 0.97 1,661,731 4,158 1.00Senior and 235,490 3,467 5.84 235,284 3,467 5.85 234,669 3,482 5.90subordinated debtTotalinterest-bearing 12,568,438 9,227 0.29 12,528,553 9,476 0.30 12,079,460 11,851 0.39liabilitiesDemand deposits 6,411,550 6,272,903 5,753,600 Total funding 18,979,988 0.19 18,801,456 0.20 17,833,060 0.26sourcesOther liabilities 336,533 364,576 373,854 Stockholders' 2,730,151 2,733,528 2,675,411 equityTotal liabilitiesandstockholders' $ 22,046,672 $ 21,899,560 $ 20,882,325 equityTax-equivalent netinterestincome/ 139,811 2.75 146,190 2.91 149,141 3.14margin^(1)Tax-equivalent (1,035 ) (994 ) (1,030 ) adjustmentNet interest $ 138,776 $ 145,196 $ 148,111 income (GAAP)^(1)Impact of acquired $ 5,684 0.11 $ 6,231 0.12 $ 7,603 0.16loan accretion^(1)Tax-equivalent netinterest income/ $ 134,127 2.64 $ 139,959 2.79 $ 141,538 2.98margin, adjusted^(1)

(1) Interest income and yields on tax-exempt securities and loans are presented on a tax-equivalent basis, assuming a federal income tax rate of 21%. The corresponding income tax impact related to tax-exempt items is recorded in income tax expense. These adjustments have no impact on net income. See the "Non-GAAP Financial Information" section presented later in this release for a discussion of this non-GAAP financial measure.

Net interest income for the fourth quarter of 2021 decreased by 4.4% from the third quarter of 2021 and was down 6.3% from the fourth quarter of 2020. Net interest income compared to both prior periods was impacted by a decrease in interest income and fees on PPP loans, as well as lower yields on loans and acquired loan accretion, partially offset by higher income on equity securities held in a grantor trust under our deferred compensation plan, which are substantially offset by the corresponding obligation to participants within total salaries and employee benefits. In addition, loan growth and lower cost of funds partially offset the decrease compared to the fourth quarter of 2020.

Acquired loan accretion contributed $5.7 million, $6.2 million, and $7.6 million to net interest income for the fourth quarter of 2021, the third quarter of 2021, and the fourth quarter of 2020, respectively.

Tax-equivalent net interest margin for the current quarter was 2.75%, decreasing by 16 basis points from the third quarter of 2021 and 39 basis points from the fourth quarter of 2020. Excluding the impact of acquired loan accretion, tax-equivalent net interest margin was 2.64%, down 15 basis points from the third quarter of 2021 and 34 basis points from the fourth quarter of 2020. Compared to both prior periods tax-equivalent net interest margin decreased due primarily to lower PPP loan income and yields on loans, excluding PPP loans, as well as a higher balance of other interest-earning assets from growth in commercial deposits compared to the third quarter of 2021 and PPP loan funds and other government stimuli compared to the fourth quarter of 2020. Higherincome on equity securitiesheld in a grantor trust under ourdeferred compensation plan and lower cost of funds partially offset the decrease compared to both prior periods.

For the fourth quarter of 2021, total average interest-earning assets increased by $204.1 million from the third quarter of 2021 and increased $1.3 billion from the fourth quarter of 2020. The increase compared to both prior periods resulted primarily from a higher balance of other interest-earning assets due to deposit growth, partially offset by lower PPP loan funds. In addition, compared to the fourth quarter of 2020, loan growth contributed to the increase in interest-earning assets.

Total average funding sources for the fourth quarter of 2021 increased by $178.5 million from the third quarter of 2021 and $1.1 billion from the fourth quarter of 2020. The increase compared to the third quarter of 2021 was impacted by growth in commercial deposits, partially offset by the seasonal outflows of municipal deposits. Compared to the fourth quarter of 2020, the increase was driven by higher customer balances resulting from PPP funds and other government stimuli, partially offset by a decrease in FHLB advances.

Noninterest Income Analysis(Dollar amounts in thousands)

Quarters Ended December 31, 2021 Percent Change From December September December September December 31, 30, 31, 30, 31, 2021 2021 2020 2021 2020Wealth management $ 14,246 $ 14,820 $ 13,548 (3.9 ) 5.2 feesService charges on 12,149 11,496 10,811 5.7 12.4 deposit accountsMortgage banking 6,149 6,664 9,191 (7.7 ) (33.1 )incomeCard-based fees, 4,451 4,992 4,530 (10.8 ) (1.7 )netCapital market 1,462 1,333 659 9.7 121.9 products incomeOther servicecharges, 3,775 2,832 2,993 33.3 26.1 commissions, andfeesTotal fee-based 42,232 42,137 41,732 0.2 1.2 revenuesOther income 2,247 3,043 3,550 (26.2 ) (36.7 )Swap termination ? ? (17,567 ) N/M N/M costsTotal noninterest $ 44,479 $ 45,180 $ 27,715 (1.6 ) 60.5 income

N/M Not meaningful.

Total noninterest income of $44.5 million was down 1.6% and up 60.5% from the third quarter of 2021 and the fourth quarter of 2020, respectively. Excluding the impact of swap termination costs in the fourth quarter of 2020, total noninterest income decreased 1.8%. Wealth management fees decreased compared to a record third quarter of 2021 due to seasonality and increased compared to the fourth quarter of 2020 due to positive market performance and continued sales of fiduciary and investment advisory services to new and existing customers. The increase in service charges on deposit accounts compared to the third quarter of 2021 was due primarily to seasonality, whereas the increase from the fourth quarter of 2020 resulted from the impact of higher transaction volumes.

Mortgage banking income for the fourth quarter of 2021 resulted from sales of $179.1 million of 1-4 family mortgage loans in the secondary market compared to $199.9 million in the third quarter of 2021 and $275.6 million in the fourth quarter of 2020. In addition, mortgage banking income for the fourth quarter of 2021 was impacted by decreases in market pricing on sales of 1-4 family mortgage loans compared to the same period in 2020.

Capital market products income increased compared to both prior periods as a result higher levels of sales to corporate clients in light of market conditions. Other service charges, commissions, and fees for the fourth quarter of 2021 was elevated as a result of sales of loans at gains. Other income compared to both prior periods was impacted by lower fair value adjustments on equity securities as a result of the market environment, partially offset by benefit settlements on bank-owned life insurance. In addition, other income for the third quarter of 2021 was elevated as a result of net gains from the disposition of branch properties and other miscellaneous items.

During the fourth quarter of 2020, the Company terminated longer term interest rate swaps with notional amounts of $510million due to excess liquidity and in response to market conditions. As a result of this transaction, $17.6 million of pre-tax losses on swap terminations were recorded in the same period.

Noninterest Expense Analysis(Dollar amounts in thousands)

Quarters Ended December 31, 2021 Percent Change From December September December September December 31, 30, 31, 30, 31, 2021 2021 2020 2021 2020Salaries andemployee benefits:Salaries and $ 56,334 $ 51,503 $ 55,950 9.4 0.7 wagesRetirement andother employee 11,112 10,924 10,430 1.7 6.5 benefitsTotal salariesand employee 67,446 62,427 66,380 8.0 1.6 benefitsNet occupancyand equipment 13,550 14,198 14,002 (4.6 ) (3.2 )expenseTechnology and 10,468 10,742 11,005 (2.6 ) (4.9 )related costsProfessional 7,620 6,991 8,424 9.0 (9.5 )servicesAdvertising 2,853 3,168 1,850 (9.9 ) 54.2 and promotionsNet other realestate owned 442 (4 ) 106 N/M 317.0 ("OREO")expenseOther expenses 14,565 15,616 12,851 (6.7 ) 13.3 Acquisitionandintegration 3,945 2,916 1,860 35.3 112.1 relatedexpensesOptimization ? ? 1,493 N/M N/M costsTotalnoninterest $ 120,889 $ 116,054 $ 117,971 4.2 2.5 expenseAcquisitionandintegration (3,945 ) (2,916 ) (1,860 ) 35.3 112.1 relatedexpensesOptimization ? ? (1,493 ) N/M N/M costsTotalnoninterest $ 116,944 $ 113,138 $ 114,618 3.4 2.0 expense,adjusted^(1)

N/M Not meaningful.

(1) See the "Non-GAAP Financial Information" section presented later in this release for a discussion of this non-GAAP financial measure.

Total noninterest expense increased 4.2% and 2.5% compared to the third quarter of 2021 and fourth quarter of 2020, respectively. Noninterest expense for all periods presented was impacted by acquisition and integration related expenses. In addition, the fourth quarter of 2020 was impacted by optimization costs. Excluding these items, noninterest expense for the fourth quarter of 2021 was $116.9 million, up 3.4% and 2.0% from the third quarter of 2021 and fourth quarter of 2020, respectively. Overall, noninterest expense, adjusted, to average assets, excluding PPP loans, was 2.14% for the fourth quarter of 2021, up 4 basis points from the third quarter of 2021 and down 15 basis points from the fourth quarter of 2020.

The increase in salaries and employee benefits compared to both prior periods was driven primarily by higher compensation accruals and deferred compensation plan obligations due to income on the respective equity securities held in a grantor trust. Compared to the fourth quarter of 2020, the increase in salaries and employee benefits was impacted by merit increases, partially offset by the ongoing benefits of optimization strategies. Net occupancy expense decreased compared to both prior periods as a result of lower maintenance costs. Professional services expense increased compared to the third quarter of 2021 due mainly to higher loan related fees associated with 1-4 family mortgage production. Compared to the fourth quarter of 2020, professional services expense decreased due primarily to lower loan remediation costs. Advertising and promotions expense increased compared to the fourth quarter of 2020 due to the timing of certain costs related to marketing campaigns. Other expenses decreased compared to the third quarter of 2021 as a result of lower other miscellaneous expenses. Compared to the fourth quarter of 2020, other expenses increased due primarily to higher servicing fees from purchases of consumer loans.

Optimization costs of $1.5 million for the fourth quarter of 2020, primarily include valuation adjustments related to locations identified for closure, modernization of our ATM network, advisory fees, employee severance, and other expenses associated with locations identified for closure.

Acquisition and integration related expenses for the fourth and third quarters of 2021 resulted from the pending merger with Old National. Acquisition and integration related expenses for the fourth quarter of 2020 resulted from the acquisition of Park Bank, which closed in the first quarter of 2020.

LOAN PORTFOLIO AND ASSET QUALITY

Loan Portfolio Composition(Dollar amounts in thousands)

As of December 31, 2021 Percent Change From December 31, September 30, December 31, September December 2021 2021 2020 30, 31, 2021 2020Commercialand $ 4,834,332 $ 4,705,458 $ 4,578,254 2.7 5.6 industrialAgricultural 327,873 349,159 364,038 (6.1 ) (9.9 )Commercial real estate:Office,retail, and 1,746,944 1,765,592 1,861,768 (1.1 ) (6.2 )industrialMulti-family 1,120,748 1,082,941 872,813 3.5 28.4 Construction 588,247 595,204 612,611 (1.2 ) (4.0 )Othercommercial 1,275,906 1,408,955 1,481,976 (9.4 ) (13.9 )real estateTotalcommercial 4,731,845 4,852,692 4,829,168 (2.5 ) (2.0 )real estateTotalcorporateloans, 9,894,050 9,907,309 9,771,460 (0.1 ) 1.3 excludingPPPloansPPP loans 230,687 384,100 785,563 (39.9 ) (70.6 )Totalcorporate 10,124,737 10,291,409 10,557,023 (1.6 ) (4.1 )loansHome equity 565,443 591,126 761,725 (4.3 ) (25.8 )1-4 family 3,418,059 3,332,732 3,022,413 2.6 13.1 mortgagesInstallment 557,252 573,465 410,071 (2.8 ) 35.9 Totalconsumer 4,540,754 4,497,323 4,194,209 1.0 8.3 loansTotal loans $ 14,665,491 $ 14,788,732 $ 14,751,232 (0.8 ) (0.6 )

Total loans includes loans originated under the PPP loan program, which totaled $230.7 million, $384.1 million, and $785.6million as of December 31, 2021, September 30, 2021, and December 31, 2020, respectively. Excluding these loans, total loans were up 1% annualized from September30, 2021 and 3% from December 31, 2020. Compared to both prior periods, strong production and line usage within our sector-based lending businesses drove the increase in corporate loan growth, excluding PPP loans. Middle market businesses also contributed to this growth compared to December 31, 2020. Production was partially offset by higher paydowns and prepayments due to excess borrower liquidity as a result of the pandemic and the impact of certain customers selling their commercial business or investment real estate properties, as well as refinancing with institutions offering loan terms outside of our credit parameters.

Consumer loans compared to both prior periods were impacted by purchases of 1-4 family mortgages, as well as strong production in the 1-4 family mortgages portfolio, which was partially offset by higher prepayments. In addition, consumer loans compared to December 31, 2020 were impacted by purchases of installment loans.

Allowance for Credit Losses(Dollar amounts in thousands)

As of or for the Quarters Ended December 31, 2021 Percent Change From December September December September December 31, 30, 31, 30, 31, 2021 2021 2020 2021 2020ACL, excluding $ 190,510 $ 195,903 $ 215,915 (2.8 ) (11.8 )PCD loansPCD loan ACL 19,352 18,963 31,127 2.1 (37.8 )Total ACL $ 209,862 $ 214,866 $ 247,042 (2.3 ) (15.1 )Provision for $ (2,924 ) $ ? $ 10,507 N/M (127.8 )credit lossesACL to total 1.43 % 1.45 % 1.67 % loansACL to totalloans, 1.45 % 1.49 % 1.77 % excluding PPPloans^(1)ACL tonon-accrual 205.79 % 243.94 % 173.33 % loans

N/M Not meaningful.

(1) This ratio excludes PPP loans that are fully guaranteed by the Small Business Administration ("SBA"). As a result, no allowance for credit losses is associated with these loans. See the "Non-GAAP Financial Information" section presented later in this release for a discussion of this non-GAAP financial measure.

The ACL was $209.9 million or 1.43% of total loans as of December 31, 2021, decreasing $5.0 million from September 30, 2021 and $37.2million compared to December 31, 2020. Excluding the impact of PPP loans, ACL to total loans was 1.45% as of December 31, 2021, compared to 1.49% and 1.77% as of September 30, 2021 and December 31, 2020, respectively. The decrease from both prior periods reflects an improving credit environment as well as net charge-offs on PCD loans that previously had an ACL established upon acquisition.

Asset Quality(Dollar amounts in thousands)

As of December 31, 2021 Percent Change From December 31, September 30, December 31, September December 2021 2021 2020 30, 31, 2021 2020Non-accrual loans,excluding PCD $ 80,920 $ 64,166 $ 109,957 26.1 (26.4 )loans^(1)Non-accrual PCD 21,059 23,917 32,568 (11.9 ) (35.3 )loansTotal non-accrual 101,979 88,083 142,525 15.8 (28.4 )loans90 days or morepast due loans,still 927 1,293 4,395 (28.3 ) (78.9 )accruinginterest^(1)Totalnon-performing 102,906 89,376 146,920 15.1 (30.0 )loans, ("NPLs")Accruing troubleddebt 534 539 813 (0.9 ) (34.3 )restructurings("TDRs")Foreclosed assets^ 25,837 26,375 16,671 (2.0 ) 55.0 (2)Totalnon-performing $ 129,277 $ 116,290 $ 164,404 11.2 (21.4 )assets ("NPAs")30-89 days past $ 34,430 $ 30,718 $ 40,656 12.1 (15.3 )due loansSpecial mention $ 314,772 $ 330,218 $ 409,083 (4.7 ) (23.1 )loans^(3)Substandard loans^ 325,520 351,192 357,219 (7.3 ) (8.9 )(3)Total performingloans classifiedassubstandard $ 640,292 $ 681,410 $ 766,302 (6.0 ) (16.4 )and specialmention^(3)Non-accrual loans to total loans:Non-accrual loans 0.70 % 0.60 % 0.97 % to total loansNon-accrual loansto total loans, 0.71 % 0.61 % 1.02 % excludingPPPloans^(1)(4)Non-accrual loansto total loans, 0.57 % 0.45 % 0.80 % excludingPCD andPPP loans^(1)(4)Non-performingloans to total loans:NPLs to total 0.70 % 0.60 % 1.00 % loansNPLs to totalloans, excluding 0.71 % 0.62 % 1.05 % PPP loans^(1)(4)NPLs to totalloans, excluding 0.57 % 0.46 % 0.83 % PCD and PPPloans^(1)(4)Non-performing assets to total loans plus foreclosed assets:NPAs to totalloans plus 0.88 % 0.78 % 1.11 % foreclosed assetsNPAs to totalloans plusforeclosed 0.89 % 0.81 % 1.18 % assets,excludingPPP loans^(1)(4)NPAs to totalloans plusforeclosed 0.76 % 0.65 % 0.96 % assets,excludingPCD and PPP loans^(1)(4)Performing loans classified as substandard and special mention to corporateloans:Performing loansclassified assubstandardandspecial 6.32 % 6.62 % 7.26 % mention tocorporate loans^(3)Performing loansclassified assubstandardandspecial 6.47 % 6.88 % 7.84 % mention tocorporate loans,excluding PPPloans^(3)

(1) See the "Non-GAAP Financial Information" section presented later in this release for a discussion of this non-GAAP financial measure.

(2) Foreclosed assets consists of OREO and other foreclosed assets acquired in partial or total satisfaction of defaulted loans. Other foreclosed assets are included in other assets in the Consolidated Statements of Financial Condition.

(3) Performing loans classified as substandard and special mention excludes accruing TDRs.

(4) This ratio excludes PPP loans that are fully guaranteed by the SBA. As a result, no allowance for credit losses is associated with these loans.

NPAs represented 0.88% of total loans and foreclosed assets at December 31, 2021 compared to 0.78% and 1.11% at September30, 2021 and December 31, 2020, respectively. Excluding the impact of PCD and PPP loans, NPAs to total loans plus foreclosed assets was 0.76% at December 31, 2021, compared to 0.65% at September 30, 2021 and 0.96% at December 31, 2020. The increase compared to September 30, 2021 is reflective of normal fluctuations that occur on a quarterly basis. The decrease compared to December 31, 2020 is due primarily to an improving credit environment as well as one corporate loan relationship transferred from non-accrual loans to foreclosed assets during the first nine months of 2021.

Performing loans classified as substandard and special mention decreased to $640.3 million at December 31, 2021 from $681.4million and $766.3million at September 30, 2021 and December 31, 2020, respectively. The decrease from both prior periods was driven by an improving credit environment.

Charge-Off Data (Dollar amounts in thousands)

Quarters Ended December % of September % of December % of 31, Total 30, Total 31, Total 2021 2021 2020Net loan charge-offs^(1)Commercial and $ (39 ) (1.9 ) $ 5,002 59.8 $ 3,536 33.6industrialAgricultural 122 5.9 (37 ) (0.4 ) 1,779 16.9Commercial real estate:Office, retail, (7 ) (0.3 ) 556 6.7 1,701 16.1and industrialMulti-family 85 4.1 1 ? 19 0.2Construction 189 9.1 986 11.8 140 1.3Other commercial 261 12.5 829 9.9 916 8.7real estateConsumer 1,469 70.6 1,023 12.2 2,448 23.2Total NCOs $ 2,080 100.0 $ 8,360 100.0 $ 10,539 100.0Less: NCOs on (327 ) 15.7 (1,757 ) 21.0 (6,488 ) 61.6PCD loans^(2)Total NCOs,excluding PCD $ 1,753 $ 6,603 $ 4,051 loans^(2)Total recoveries $ 2,254 $ 3,397 $ 2,588 included aboveQuarter-to-Date^ (1)(3):Net charge-offs 0.06 % 0.22 % 0.29 % to average loansNet charge-offsto average 0.06 % 0.23 % 0.31 % loans,excludingPPP loans^(2)(4)Net charge-offsto averageloans,excluding 0.05 % 0.18 % 0.12 % PCD and PPPloans^(2)(4)Year-to-Date^(1) (3):Net charge-offs 0.27 % 0.35 % 0.36 % to average loansNet charge-offsto average 0.29 % 0.37 % 0.38 % loans, excludingPPP loans^(2)(4)Net charge-offsto averageloans,excluding 0.23 % 0.29 % 0.24 % PCD and PPPloans^(2)(4)

(1) Amounts represent charge-offs, net of recoveries.

(2) See the "Non-GAAP Financial Information" section presented later in this release for a discussion of this non-GAAP financial measure.

(3) Annualized based on the actual number of days for each period presented.

(4) This ratio excludes PPP loans that are fully guaranteed by the SBA. As a result, no allowance for credit losses is associated with these loans.

Net loan charge-offs to average loans, annualized, were 0.06% for the fourth quarter of 2021, compared to 0.22% for the third quarter of 2021 and 0.29% for the fourth quarter of 2020. Excluding charge-offs on PCD and PPP loans on this metric, NCOs to average loans was 0.05% for the fourth quarter of 2021, down from 0.18% for the third quarter of 2021 and 0.12% for the fourth quarter of 2020. For the year ended December 31, 2021, net loan charge-offs to average loans was 0.27% compared to 0.36% for the same period in 2020. Excluding charge-offs on PCD and PPP loans, NCOs to average loans was 0.23% for 2021 and 0.24% for 2020.

DEPOSIT PORTFOLIO

Deposit Composition(Dollar amounts in thousands)

Average for the Quarters Ended December 31, 2021 Percent Change From December 31, September 30, December 31, September December 2021 2021 2020 30, 31, 2021 2020Demand $ 6,411,550 $ 6,272,903 $ 5,753,600 2.2 11.4 depositsSavings 2,825,792 2,785,816 2,436,930 1.4 16.0 depositsNOW 3,165,689 3,213,637 2,774,989 (1.5 ) 14.1 accountsMoneymarket 3,316,492 3,211,355 2,923,881 3.3 13.4 accountsCore 15,719,523 15,483,711 13,889,400 1.5 13.2 depositsTime 1,736,197 1,800,493 2,047,260 (3.6 ) (15.2 )depositsTotal $ 17,455,720 $ 17,284,204 $ 15,936,660 1.0 9.5 deposits

Total average deposits were $17.5 billion for the fourth quarter of 2021, up modestly from the third quarter of 2021 and up 9.5% from the fourth quarter of 2020. The increase in total average deposits compared to the third quarter of 2021 was impacted by growth in commercial deposits, partially offset by seasonal outflows of municipal deposits. Compared to the fourth quarter of 2020, the increase in total average deposits was due to higher customer balances resulting from PPP funds and other government stimulus measures.

CAPITAL MANAGEMENT

Capital Ratios

As of December September December 31, 30, 31, 2021 2021 2020Company regulatory capital ratios:Total capital to risk-weighted assets 14.47 % 14.26 % 14.14 %Tier 1 capital to risk-weighted assets 12.22 % 11.99 % 11.55 %Common equity Tier 1 ("CET1") to 10.74 % 10.51 % 10.06 %risk-weighted assetsTier 1 capital to average assets 8.97 % 8.89 % 8.91 %Company tangible common equity ratios^(1)(2): Tangible common equity to tangible assets 7.63 % 7.53 % 7.67 %Tangible common equity to tangible assets, 7.72 % 7.67 % 7.98 %excluding PPP loansTangible common equity, excludingaccumulated other comprehensiveincome 7.81 % 7.65 % 7.54 %("AOCI"), to tangible assetsTangible common equity, excluding AOCI, to 7.90 % 7.79 % 7.85 %tangible assets, excludingPPP loansTangible common equity to risk-weighted 10.24 % 10.08 % 9.93 %assets

(1) These ratios are not subject to formal Federal Reserve regulatory guidance.

(2) Tangible common equity ("TCE") is a non-GAAP measure that represents common stockholders' equity less goodwill and identifiable intangible assets. For details of the calculation of these ratios, see the sections titled, "Non-GAAP Financial Information" and "Non-GAAP Reconciliations" presented later in this release.

Risk-weighted regulatory capital ratios compared to all prior periods were impacted by retained earnings and the mix of risk-weighted assets. Total capital to risk-weighted assets compared to December 31, 2020 was impacted by the beginning of the five-year phase-out of Tier 2 treatment of the Company's subordinated debt. The Company elected the five-year current expected credit losses ("CECL") transition relief for regulatory capital, which retained approximately 30 basis points of CET1 and Tier 1 capital at December 31, 2021.

The Board of Directors approved a quarterly cash dividend of $0.14 per common share during the fourth quarter of 2021, which is consistent with third quarter of 2021 and the fourth quarter of 2020. This dividend represents the 156th consecutive cash dividend paid by the Company since its inception in 1983.

Press Release and Additional Information Available on Website

This press release and the accompanying unaudited Selected Financial Information are available through the Investor Relations section of First Midwest's website at investor.firstmidwest.com.

Forward-Looking Statements

This communication may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding the financial condition, results of operations, business plans and future performance of First Midwest. In some cases, forward-looking statements can be identified by the use of words such as "may," "might," "will," "would," "should," "could," "expect," "plan," "intend," "anticipate," "believe," "estimate," "outlook," "forecast," "predict," "project," "probable," "potential," "possible," "target," "continue," "look forward," or "assume" and words of similar import. Because forward-looking statements relate to future results and occurrences, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Forward-looking statements are not historical facts or guarantees of future performance but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and events may differ, possibly materially, from the anticipated results or events indicated in these forward-looking statements. First Midwest cautions you not to place undue reliance on these statements. Forward-looking statements speak only as of the date made, and First Midwest undertakes no obligation to update any forward-looking statements.

Forward-looking statements may be deemed to include, among other things, statements relating to First Midwest's future financial performance, the performance of First Midwest's loan or securities portfolio, the expected amount of future credit allowances or charge-offs, the timing of the pending merger of First Midwest and Old National, the failure to obtain necessary regulatory approvals or to satisfy any of the other conditions to the merger on a timely basis or at all, the possibility that the anticipated benefits of the merger are not realized when expected or at all, corporate strategies or objectives, including the impact of certain actions and initiatives, anticipated trends in First Midwest's business, regulatory developments, estimated synergies, cost savings and financial benefits of completed transactions, growth strategies, the inability to realize cost savings or improved revenues or to implement integration plans associated with the proposed merger with Old National and the continued or potential effects of the COVID-19 pandemic and related variants and mutations on First Midwest's business, financial condition, liquidity, loans, asset quality and results of operations. These statements are subject to certain risks, uncertainties and assumptions, including the duration, extent and severity of the COVID-19 pandemic and related variants and mutations, including the continued effects on First Midwest's business, operations and employees, as well as on First Midwest's customers and service providers, and on economies and markets more generally and other risks, uncertainties and assumptions that are discussed under the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in First Midwest's Annual Report on Form 10-K for the year ended December 31, 2020, and in First Midwest's subsequent filings made with the Securities and Exchange Commission ("SEC"). These risks and uncertainties are not exhaustive, and other sections of these reports describe additional factors that could adversely impact First Midwest's business and financial performance.

Non-GAAP Financial Information

The Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company's operating performance. These non-GAAP financial measures include EPS, adjusted, the efficiency ratio, return on average assets, adjusted, tax-equivalent net interest income (including its individual components), tax-equivalent net interest margin, tax-equivalent net interest margin, adjusted, noninterest expense, adjusted, tangible common equity to tangible assets, tangible common equity, excluding AOCI, to tangible assets, tangible common equity to risk-weighted assets, return on average common equity, adjusted, return on average tangible common equity, return on average tangible common equity, adjusted, non-accrual loans, excluding PCD loans, non-accrual loans to total loans, excluding PPP loans, non-accrual loans to total loans, excluding PCD and PPP loans, NPLs to total loans, excluding PPP loans, NPLs to total loans, excluding PCD and PPP loans, NPAs to total loans plus foreclosed assets, excluding PPP loans, NPAs to total loans plus foreclosed assets, excluding PCD and PPP loans, performing loans classified as substandard and special mention to corporate loans, excluding PPP loans, NCOs, excluding PCD loans, NCOs to average loans, excluding PPP loans, NCOs to average loans, excluding PCD and PPP loans, and pre-tax, pre-provision earnings, adjusted.

The Company presents EPS, the efficiency ratio, return on average assets, return on average common equity, and return on average tangible common equity, all adjusted for certain significant transactions. These transactions include acquisition and integration related expenses associated with completed and pending acquisitions (all periods), optimization costs (second and first quarters of 2021 and fourth quarter of 2020), swap termination costs (fourth quarter of 2020), income tax benefits (fourth quarter of 2020), and net securities gains (full year 2020). In addition, net OREO expense is excluded from the calculation of the efficiency ratio. Management believes excluding these transactions from EPS, the efficiency ratio, return on average assets, return on average common equity, and return on average tangible common equity may be useful in assessing the Company's underlying operational performance since these transactions do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding acquisition and integration related expenses from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these transactions from these metrics may enhance comparability for peer comparison purposes.

Income tax expense, provision for loan losses, and the certain significant transactions listed above are excluded from the calculation of pre-tax, pre-provision earnings, adjusted due to the fluctuation in income before income tax and the level of provision for loan losses required based on the estimated impact of the pandemic on the ACL. Management believes pre-tax, pre-provision earnings, adjusted may be useful in assessing the Company's underlying operational performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.

The Company presents noninterest expense, adjusted, which excludes optimization costs, and acquisition and integration related expenses. Management believes that excluding these items from noninterest expense may be useful in assessing the Companys underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.

The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes. In addition, management believes that presenting tax-equivalent net interest margin, adjusted, may enhance comparability for peer comparison purposes and is useful to the Company, as well as analysts and investors, since acquired loan accretion income may fluctuate based on the size of each acquisition, as well as from period to period.

In management's view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from stockholders' equity and retain the effect of accumulated other comprehensive loss in stockholders' equity.

The Company presents non-accrual loans, non-accrual loans to total loans, NPLs to total loans, NPAs to total loans plus foreclosed assets, performing loans classified as substandard and special mention to corporate loans, excluding PPP loans, NCOs, and NCOs to average loans, all excluding PCD and/or PPP loans. Management believes excluding PCD and PPP loans is useful as it facilitates better comparability between periods. Prior to the adoption of CECL on January1, 2020, PCI loans with an accretable yield were considered current and were not included in past due and non-accrual loan totals and the portion of PCI loans deemed to be uncollectible was recorded as a reduction of the credit-related acquisition adjustment, which was netted within loans. Subsequent to adoption, PCD loans, including those previously classified as PCI, are included in past due and non-accrual loan totals and an ACL on PCD loans is established as of the acquisition date and the PCD loans are no longer recorded net of a credit-related acquisition adjustment. PCD loans deemed to be uncollectible are recorded as a charge-off through the ACL. The Company began originating PPP loans during the second quarter of 2020 and the loans are fully guaranteed by the SBA and are expected to be forgiven if the applicable criteria are met. Additionally, management believes excluding PCD and PPP loans from these metrics may enhance comparability for peer comparison purposes.

Although 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. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the previously provided tables and the following reconciliations in the "Non-GAAP Reconciliations" section for details on the calculation of these measures to the extent presented herein.

About First Midwest

First Midwest (NASDAQ: FMBI) is a relationship-focused financial institution and one of the largest independent publicly traded bank holding companies based on assets headquartered in Chicago and the Midwest, with approximately $22 billion of assets and an additional $15billion of wealth management assets. First Midwest Bank and its other affiliates provide a full range of commercial, treasury management, equipment leasing, consumer, mortgage, wealth management, trust and private banking products and services. The primary footprint of First Midwest's branch network and other locations is in metropolitan Chicago, southeast Wisconsin, northwest Indiana, central and western Illinois, and eastern Iowa. Visit First Midwest at www.firstmidwest.com.

CONTACTS:

Investors MediaPatrick S. Barrett Maurissa KanterEVP, Chief Financial Officer SVP, Director of Corporate Communications(708) 831-7231 (708) 831-7345pat.barrett@firstmidwest.com maurissa.kanter@firstmidwest.com

Accompanying Unaudited Selected Financial Information

First Midwest Bancorp, Inc.Consolidated Statements of Financial Condition (Unaudited)(Dollar amounts in thousands) As of December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 Period-End Balance SheetAssets Cash and due from $ 220,207 $ 270,020 $ 232,989 $ 223,713 $ 196,364 banksInterest-bearingdeposits in other 1,898,865 1,654,917 1,312,412 786,814 920,880 banksEquity securities, at 118,857 114,848 112,977 96,983 76,404 fair valueSecuritiesavailable-for-sale, 3,147,220 3,212,908 3,156,194 3,195,405 3,096,408 at fair valueSecuritiesheld-to-maturity, at 8,655 10,853 11,593 11,711 12,071 amortized costFHLB and FRB stock 106,097 106,090 106,890 106,170 117,420 Loans: Commercial and 4,834,332 4,705,458 4,608,148 4,546,317 4,578,254 industrialAgricultural 327,873 349,159 342,834 355,883 364,038 Commercial real estate:Office, retail, and 1,746,944 1,765,592 1,807,428 1,827,116 1,861,768 industrialMulti-family 1,120,748 1,082,941 1,012,722 906,124 872,813 Construction 588,247 595,204 577,338 614,021 612,611 Other commercial real 1,275,906 1,408,955 1,461,370 1,463,582 1,481,976 estatePPP loans 230,687 384,100 705,915 1,109,442 785,563 Home equity 565,443 591,126 629,367 690,030 761,725 1-4 family mortgages 3,418,059 3,332,732 3,287,773 3,187,066 3,022,413 Installment 557,252 573,465 602,324 483,945 410,071 Total loans 14,665,491 14,788,732 15,035,219 15,183,526 14,751,232 Allowance for loan (201,237 ) (206,241 ) (214,601 ) (235,359 ) (239,017 )lossesNet loans 14,464,254 14,582,491 14,820,618 14,948,167 14,512,215 OREO 5,196 5,106 5,289 6,273 8,253 Premises, furniture, 120,555 123,413 125,837 129,514 132,045 and equipment, netInvestment inbank-owned life 300,730 300,387 300,537 301,365 301,101 insurance ("BOLI")Goodwill and other 920,599 923,383 926,176 928,974 932,764 intangible assetsAccrued interestreceivable and other 467,007 473,764 513,912 473,502 532,753 assetsTotal assets $ 21,778,242 $ 21,778,180 $ 21,625,424 $ 21,208,591 $ 20,838,678 Liabilities and Stockholders' EquityNoninterest-bearing $ 6,191,885 $ 6,097,698 $ 6,187,478 $ 6,156,145 $ 5,797,899 depositsInterest-bearing 10,999,044 11,100,704 10,845,405 10,455,309 10,214,565 depositsTotal deposits 17,190,929 17,198,402 17,032,883 16,611,454 16,012,464 Borrowed funds 1,291,816 1,274,572 1,299,424 1,295,737 1,546,414 Senior and 235,588 235,383 235,178 234,973 234,768 subordinated debtAccrued interestpayable and other 317,181 346,600 353,791 413,112 355,026 liabilitiesStockholders' equity 2,742,728 2,723,223 2,704,148 2,653,315 2,690,006 Total liabilities and $ 21,778,242 $ 21,778,180 $ 21,625,424 $ 21,208,591 $ 20,838,678 stockholders' equityStockholders' equity, $ 2,780,521 $ 2,748,604 $ 2,710,089 $ 2,675,411 $ 2,663,627 excluding AOCIStockholders' equity, 2,512,228 2,492,723 2,473,648 2,422,815 2,459,506 common

First Midwest Bancorp, Inc.Condensed Consolidated Statements of Income (Unaudited)(Dollar amounts in thousands) Quarters Ended Years Ended December September June 30, March 31, December December December 31, 30, 31, 31, 31, 2021 2021 2021 2021 2020 2021 2020 Income Statement Interest income $ 148,003 $ 154,672 $ 154,000 $ 151,150 $ 159,962 $ 607,825 $ 651,318 Interest expense 9,227 9,476 9,712 10,035 11,851 38,450 71,669 Net interest income 138,776 145,196 144,288 141,115 148,111 569,375 579,649 Provision for loan (2,924 ) ? ? 6,098 10,507 3,174 98,615 lossesNet interest incomeafterprovision for 141,700 145,196 144,288 135,017 137,604 566,201 481,034 loan lossesNoninterest Income Wealth management 14,246 14,820 14,555 14,149 13,548 57,770 50,688 feesService charges on 12,149 11,496 10,778 9,980 10,811 44,403 42,059 depositaccountsMortgage banking 6,149 6,664 6,749 10,187 9,191 29,749 21,115 incomeCard-based fees, net 4,451 4,992 4,764 4,556 4,530 18,763 16,150 Capital market 1,462 1,333 1,954 2,089 659 6,838 6,961 products incomeOther servicecharges,commissions, 3,775 2,832 2,823 2,761 2,993 12,191 10,576 and feesTotal fee-based 42,232 42,137 41,623 43,722 41,732 169,714 147,549 revenuesOther income 2,247 3,043 4,647 2,081 3,550 12,018 11,633 Swap termination ? ? ? ? (17,567 ) ? (31,852 )costsNet securities gains ? ? ? ? ? ? 13,323 Total 44,479 45,180 46,270 45,803 27,715 181,732 140,653 noninterestincomeNoninterest Expense Salaries and employee benefits: Salaries and wages 56,334 51,503 51,887 53,693 55,950 213,417 211,917 Retirement andotheremployee 11,112 10,924 12,324 12,708 10,430 47,068 45,728 benefitsTotal salaries 67,446 62,427 64,211 66,401 66,380 260,485 257,645 andemployee benefitsNet occupancy 13,550 14,198 13,654 14,752 14,002 56,154 57,081 andequipment expenseTechnology and 10,468 10,742 10,453 10,284 11,005 41,947 39,822 related costsProfessional services 7,620 6,991 7,568 8,059 8,424 30,238 35,019 Advertising and 2,853 3,168 2,899 1,835 1,850 10,755 10,109 promotionsNet OREO expense 442 (4 ) 160 589 106 1,187 1,196 Other expenses 14,565 15,616 14,670 14,735 12,851 59,586 52,503 Acquisition andintegrationrelated 3,945 2,916 7,773 245 1,860 14,879 13,462 expensesOptimization costs ? ? 31 1,525 1,493 1,556 19,869 Total noninterest 120,889 116,054 121,419 118,425 117,971 476,787 486,706 expenseIncome before 65,290 74,322 69,139 62,395 47,348 271,146 134,981 incometax expenseIncome tax expense 16,737 19,459 18,018 17,372 5,743 71,586 27,083 Net income $ 48,553 $ 54,863 $ 51,121 $ 45,023 $ 41,605 $ 199,560 $ 107,898 Preferred dividends (4,034 ) (4,033 ) (4,034 ) (4,034 ) (4,049 ) (16,135 ) (9,119 )Net income applicableto non-vested (398 ) (517 ) (521 ) (486 ) (369 ) (1,922 ) (984 )restricted sharesNet income applicable $ 44,121 $ 50,313 $ 46,566 $ 40,503 $ 37,187 $ 181,503 $ 97,795 tocommon sharesNet income applicabletocommon shares, 47,080 52,500 52,419 41,831 49,238 193,830 133,052 adjusted^(1)

Footnotes to Condensed Consolidated Statements of Income(1)See the "Non-GAAP Reconciliations" section for the detailed calculation.

First Midwest Bancorp, Inc.Selected Financial Information (Unaudited)(Amounts in thousands, except per share data) As of or for the Quarters Ended Years Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, 2021 2021 2021 2021 2020 2021 2020 EPS Basic EPS $ 0.39 $ 0.45 $ 0.41 $ 0.36 $ 0.33 $ 1.61 $ 0.87 Diluted EPS $ 0.39 $ 0.44 $ 0.41 $ 0.36 $ 0.33 $ 1.60 $ 0.87 Diluted EPS, adjusted^ $ 0.41 $ 0.46 $ 0.46 $ 0.37 $ 0.43 $ 1.70 $ 1.18 (1)Common Stock and Related Per Common Share Data Book value $ 22.01 $ 21.83 $ 21.67 $ 21.22 $ 21.52 $ 22.01 $ 21.52 Tangible book value $ 13.95 $ 13.75 $ 13.55 $ 13.08 $ 13.36 $ 13.95 $ 13.36 Dividends declared per $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.56 $ 0.56 shareClosing price at period $ 20.48 $ 19.01 $ 19.83 $ 21.91 $ 15.92 $ 20.48 $ 15.92 endClosing price to book 0.9 0.9 0.9 1.0 0.7 0.9 0.7 valuePeriod end shares 114,128 114,167 114,177 114,196 114,296 114,128 114,296 outstandingPeriod end treasury 11,259 11,213 11,199 11,176 11,071 11,259 11,071 sharesCommon dividends $ 15,792 $ 15,974 $ 15,979 $ 15,997 $ 16,017 $ 63,742 $ 64,045 Dividend payout ratio 35.90 % 31.11 % 34.15 % 38.89 % 42.42 % 34.78 % 64.37 %Dividend payout ratio, 34.15 % 30.43 % 30.43 % 37.84 % 32.56 % 32.94 % 47.46 %adjusted^(1)Key Ratios/Data Return on average 7.00 % 7.97 % 7.60 % 6.70 % 6.05 % 7.32 % 4.01 %commonequity^(2)Return on averagecommonequity, adjusted 7.47 % 8.32 % 8.56 % 6.92 % 8.01 % 7.82 % 5.46 %^(1)(2)Return on averagetangiblecommon equity^ 11.62 % 13.17 % 12.77 % 11.35 % 10.35 % 12.24 % 7.02 %(1)(2)Return on averagetangiblecommon equity, 12.36 % 13.72 % 14.31 % 11.71 % 13.53 % 13.03 % 9.36 %adjusted^(1)(2)Return on average assets 0.87 % 0.99 % 0.95 % 0.87 % 0.79 % 0.92 % 0.53 %^(2)Return on average 0.93 % 1.03 % 1.06 % 0.90 % 1.02 % 0.98 % 0.70 %assets,adjusted^(1)(2)Loans to deposits 85.31 % 85.99 % 88.27 % 91.40 % 92.12 % 85.31 % 92.12 %Efficiency ratio^(1) 63.22 % 59.12 % 59.24 % 61.77 % 58.90 % 60.81 % 60.84 %Net interest margin^(2) 2.75 % 2.91 % 2.96 % 3.03 % 3.14 % 2.91 % 3.18 %(3)Yield on averageinterest-earningassets 2.94 % 3.10 % 3.16 % 3.24 % 3.39 % 3.11 % 3.57 %^(2)(3)Cost of funds^(2)(4) 0.19 % 0.20 % 0.21 % 0.23 % 0.26 % 0.21 % 0.41 %Noninterest expense to 2.18 % 2.10 % 2.26 % 2.30 % 2.25 % 2.21 % 2.38 %averageassets^(2)Noninterest expense,adjusted toaverage 2.14 % 2.10 % 2.22 % 2.38 % 2.29 % 2.21 % 2.31 %assets, excludingPPPloans^(1)(2)Effective income tax 25.63 % 26.18 % 26.06 % 27.84 % 12.13 % 26.40 % 20.06 %rateEffective income tax 25.63 % 26.18 % 26.06 % 27.84 % 19.81 % 26.40 % 22.76 %rate,adjusted^(1)Capital Ratios Total capital torisk-weightedassets^ 14.47 % 14.26 % 14.19 % 14.26 % 14.14 % 14.47 % 14.14 %(1)Tier 1 capital torisk-weightedassets^ 12.22 % 11.99 % 11.71 % 11.67 % 11.55 % 12.22 % 11.55 %(1)CET1 to risk-weighted 10.74 % 10.51 % 10.23 % 10.17 % 10.06 % 10.74 % 10.06 %assets^(1)Tier 1 capital to 8.97 % 8.89 % 8.85 % 8.96 % 8.91 % 8.97 % 8.91 %average assets^(1)Tangible common equity 7.63 % 7.53 % 7.48 % 7.37 % 7.67 % 7.63 % 7.67 %totangible assets^(1)Tangible commonequity,excluding AOCI, 7.81 % 7.65 % 7.50 % 7.48 % 7.54 % 7.81 % 7.54 %to tangible assets^(1)Tangible common equityto risk-weighted assets^ 10.24 % 10.08 % 9.92 % 9.73 % 9.93 % 10.24 % 9.93 %(1)Note: Selected Financial Information footnotes are located at the end of thissection.

First Midwest Bancorp, Inc.Selected Financial Information (Unaudited)(Amounts in thousands, except per share data) As of or for the Quarters Ended Years Ended December September June 30, March 31, December December December 31, 30, 31, 31, 31, 2021 2021 2021 2021 2020 2021 2020 Asset quality Performance Data Non-performing assets Commercial and $ 11,096 $ 9,952 $ 42,036 $ 59,723 $ 38,314 $ 11,096 $ 38,314 industrialAgricultural 6,410 6,682 7,135 8,684 10,719 6,410 10,719 Commercial real estate: Office, retail, and 23,756 13,450 17,367 23,339 27,382 23,756 27,382 industrialMulti-family 12,751 2,672 2,622 3,701 1,670 12,751 1,670 Construction 1,104 1,154 1,154 1,154 1,155 1,104 1,155 Other commercial real 11,629 13,083 14,200 15,406 15,219 11,629 15,219 estateConsumer 14,174 17,173 16,867 16,643 15,498 14,174 15,498 Non-accrual, excluding 80,920 64,166 101,381 128,650 109,957 80,920 109,957 PCDloansNon-accrual PCD loans 21,059 23,917 23,101 29,734 32,568 21,059 32,568 Total non-accrual loans 101,979 88,083 124,482 158,384 142,525 101,979 142,525 90 days or more pastdue loans,still 927 1,293 878 5,354 4,395 927 4,395 accruing interestTotal NPLs 102,906 89,376 125,360 163,738 146,920 102,906 146,920 Accruing TDRs 534 539 782 798 813 534 813 Foreclosed assets^(5) 25,837 26,375 26,732 13,228 16,671 25,837 16,671 Total NPAs $ 129,277 $ 116,290 $ 152,874 $ 177,764 $ 164,404 $ 129,277 $ 164,404 30-89 days past due $ 34,430 $ 30,718 $ 21,051 $ 30,973 $ 40,656 $ 34,430 $ 40,656 loansAllowance for credit lossesAllowance for loan $ 201,237 $ 206,241 $ 214,601 $ 235,359 $ 239,017 $ 201,237 $ 239,017 lossesReserve for 8,625 8,625 8,625 8,025 8,025 8,625 8,025 unfundedcommitmentsTotal ACL $ 209,862 $ 214,866 $ 223,226 $ 243,384 $ 247,042 $ 209,862 $ 247,042 Provision for loan $ (2,924 ) $ ? $ ? $ 6,098 $ 10,507 $ 3,174 $ 98,615 lossesNet charge-offs by categoryCommercial and $ (39 ) $ 5,002 $ 14,733 $ 1,740 $ 3,536 $ 21,436 $ 18,421 industrialAgricultural 122 (37 ) ? 363 1,779 448 3,389 Commercial real estate: Office, retail, and (7 ) 556 3,878 4,377 1,701 8,804 6,455 industrialMulti-family 85 1 2 (5 ) 19 83 33 Construction 189 986 208 ? 140 1,383 7,635 Other commercial real 261 829 459 371 916 1,920 2,852 estateConsumer 1,469 1,023 1,478 2,910 2,448 6,880 12,534 Total NCOs $ 2,080 $ 8,360 $ 20,758 $ 9,756 $ 10,539 $ 40,954 $ 51,319 Less: NCOs on PCD loans (327 ) (1,757 ) (4,337 ) (2,107 ) (6,488 ) (8,528 ) (18,964 )Total NCOs, excluding $ 1,753 $ 6,603 $ 16,421 $ 7,649 $ 4,051 $ 32,426 $ 32,355 PCDloansTotal recoveries $ 2,254 $ 3,397 $ 2,869 $ 1,561 $ 2,588 $ 10,081 $ 7,510 included aboveNote: Selected Financial Information footnotes are located at the end of thissection.

First Midwest Bancorp, Inc. Selected Financial Information (Unaudited)

As of or for the Quarters Ended Years Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, 2021 2021 2021 2021 2020 2021 2020 Performing loans classified as substandard and special mention Special mention $ 314,772 $ 330,218 $ 343,547 $ 355,563 $ 409,083 $ 314,772 $ 409,083 loans^(7)Substandard loans 325,520 351,192 325,727 342,600 357,219 325,520 357,219 ^(7)Total performingloansclassifiedas substandard $ 640,292 $ 681,410 $ 669,274 $ 698,163 $ 766,302 $ 640,292 $ 766,302 andspecialmention^(7)Asset quality ratiosNon-accrual loans 0.70 % 0.60 % 0.83 % 1.04 % 0.97 % 0.70 % 0.97 %to total loansNon-accrual loansto total 0.71 % 0.61 % 0.87 % 1.13 % 1.02 % 0.71 % 1.02 %loans,excludingPPP loans^(6)Non-accrual loansto totalloans,excluding 0.57 % 0.45 % 0.72 % 0.93 % 0.80 % 0.57 % 0.80 %PCD and PPP loans^(6)NPLs to total 0.70 % 0.60 % 0.83 % 1.08 % 1.00 % 0.70 % 1.00 %loansNPLs to totalloans, 0.71 % 0.62 % 0.87 % 1.16 % 1.05 % 0.71 % 1.05 %excludingPPPloans^(6)NPLs to totalloans, 0.57 % 0.46 % 0.72 % 0.97 % 0.83 % 0.57 % 0.83 %excludingPCDand PPP loans^(6)NPAs to totalloans 0.88 % 0.78 % 1.01 % 1.17 % 1.11 % 0.88 % 1.11 %plusforeclosedassetsNPAs to totalloansplusforeclosed 0.89 % 0.81 % 1.06 % 1.26 % 1.18 % 0.89 % 1.18 %assets,excludingPPPloans^(6)NPAs to totalloansplusforeclosed 0.76 % 0.65 % 0.92 % 1.07 % 0.96 % 0.76 % 0.96 %assets,excludingPCDand PPP loans^(6)NPAs to tangiblecommon 7.18 % 6.52 % 8.63 % 10.23 % 9.27 % 7.18 % 9.27 %equityplus ACLNon-accrual loans 0.47 % 0.40 % 0.58 % 0.75 % 0.68 % 0.47 % 0.68 %to total assetsPerforming loansclassifiedassubstandardand special 6.32 % 6.62 % 6.36 % 6.45 % 7.26 % 6.32 % 7.26 %mentiontocorporate loans^(7)Performing loansclassifiedassubstandardand special 6.47 % 6.88 % 6.82 % 7.19 % 7.84 % 6.47 % 7.84 %mentiontocorporate loans,excludingPPPloans^(6)(7)Allowance for credit losses and net charge-off ratios ACL to total 1.43 % 1.45 % 1.48 % 1.60 % 1.67 % 1.43 % 1.67 %loans^(7)ACL to 205.79 % 243.94 % 179.32 % 153.67 % 173.33 % 205.79 % 173.33 %non-accrual loansACL to NPLs 203.94 % 240.41 % 178.07 % 148.64 % 168.15 % 203.94 % 168.15 %NCOs to average 0.06 % 0.22 % 0.55 % 0.26 % 0.29 % 0.27 % 0.36 %loans^(2)NCOs to averageloans,excluding 0.06 % 0.23 % 0.59 % 0.28 % 0.31 % 0.29 % 0.38 %PPP loans^(2)(6)NCOs to averageloans,excluding 0.05 % 0.18 % 0.47 % 0.22 % 0.12 % 0.23 % 0.24 %PCD andPPPloans^(2)(6)

Footnotes to Selected Financial Information(1)See the "Non-GAAP Reconciliations" section for the detailed calculation.(2)Annualized based on the actual number of days for each period presented.(3)Presented on a tax-equivalent basis, assuming the applicable federal income tax rate of 21%.(4)Cost of funds expresses total interest expense as a percentage of total average funding sources.(5)Foreclosed assets consists of OREO and other foreclosed assets acquired in partial or total satisfaction of defaulted loans. Other foreclosed assets are included in other assets in the Consolidated Statements of Financial Condition.(6)This ratio excludes PPP loans that are fully guaranteed by the SBA. As a result, no allowance for credit losses is associated with these loans.(7)Performing loans classified as substandard and special mention excludes accruing TDRs.

First Midwest Bancorp, Inc.Non-GAAP Reconciliations (Unaudited)(Amounts in thousands, except per share data) Quarters Ended Years Ended December September June 30, March 31, December December December 31, 30, 31, 31, 31, 2021 2021 2021 2021 2020 2021 2020 EPS Net income $ 48,553 $ 54,863 $ 51,121 $ 45,023 $ 41,605 $ 199,560 $ 107,898 Dividends andaccretion on (4,034 ) (4,033 ) (4,034 ) (4,034 ) (4,049 ) (16,135 ) (9,119 )preferred stockNet incomeapplicable to (398 ) (517 ) (521 ) (486 ) (369 ) (1,922 ) (984 )non-vestedrestricted sharesNet incomeapplicable 44,121 50,313 46,566 40,503 37,187 181,503 97,795 tocommon sharesAdjustments to net income:Acquisition andintegrationrelated 3,945 2,916 7,773 245 1,860 14,879 13,462 expensesTax effect ofacquisition (986 ) (729 ) (1,943 ) (61 ) (465 ) (3,719 ) (3,365 )andintegrationrelated expensesOptimization costs ? ? 31 1,525 1,493 1,556 19,869 Tax effect of ? ? (8 ) (381 ) (373 ) (389 ) (4,967 )optimization costsSwap termination ? ? ? ? 17,567 ? 31,852 costsTax effect of swap ? ? ? ? (4,392 ) ? (7,963 )terminationcostsIncome tax benefits ? ? ? ? (3,639 ) ? (3,639 )Net securities ? ? ? ? ? ? (13,323 )gainsTax effect of net ? ? ? ? ? ? 3,331 securitiesgainsTotal adjustmentsto netincome, net 2,959 2,187 5,853 1,328 12,051 12,327 35,257 of taxNet incomeapplicabletocommon $ 47,080 $ 52,500 $ 52,419 $ 41,831 $ 49,238 $ 193,830 $ 133,052 shares,adjusted^(1)Weighted-average common shares outstanding:Weighted-averagecommonshares 112,930 112,898 112,865 113,098 113,174 112,947 112,355 outstanding (basic)Dilutive effect ofcommonstock 995 878 775 773 430 834 347 equivalentsWeighted-averagedilutedcommon 113,925 113,776 113,640 113,871 113,604 113,781 112,702 sharesoutstandingBasic EPS $ 0.39 $ 0.45 $ 0.41 $ 0.36 $ 0.33 $ 1.61 $ 0.87 Diluted EPS $ 0.39 $ 0.44 $ 0.41 $ 0.36 $ 0.33 $ 1.60 $ 0.87 Diluted EPS, $ 0.41 $ 0.46 $ 0.46 $ 0.37 $ 0.43 $ 1.70 $ 1.18 adjusted^(1)Anti-dilutiveshares notincludedin the ? ? ? ? ? ? ? computation ofdilutedEPSDividend Payout RatioDividends declared $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.56 $ 0.56 per shareDividend payout 35.90 % 31.11 % 34.15 % 38.89 % 42.42 % 34.78 % 64.37 %ratioDividend payout 34.15 % 30.43 % 30.43 % 37.84 % 32.56 % 32.94 % 47.46 %ratio, adjusted^(1) Note: Non-GAAP Reconciliations footnotes are located at the end of thissection.

First Midwest Bancorp, Inc.Non-GAAP Reconciliations (Unaudited)(Amounts in thousands, except per share data) As of or for the Quarters Ended Years Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, 2021 2021 2021 2021 2020 2021 2020 Return on Average Common and Tangible Common Equity Net income applicable $ 44,121 $ 50,313 $ 46,566 $ 40,503 $ 37,187 $ 181,503 $ 97,795 tocommon sharesIntangibles amortization 2,784 2,793 2,798 2,807 2,807 11,182 11,207 Tax effect of (696 ) (698 ) (700 ) (702 ) (702 ) (2,796 ) (2,803 )intangiblesamortizationNet income applicabletocommon shares, 46,209 52,408 48,664 42,608 39,292 189,889 106,199 excludingintangiblesamortizationTotal adjustments tonetincome, net of tax^ 2,959 2,187 5,853 1,328 12,051 12,327 35,257 (1)Net income applicabletocommon shares, $ 49,168 $ 54,595 $ 54,517 $ 43,936 $ 51,343 $ 202,216 $ 141,456 adjusted^(1)Average stockholders' $ 2,499,651 $ 2,503,028 $ 2,456,034 $ 2,453,253 $ 2,444,911 $ 2,478,187 $ 2,437,011 commonequityLess: average intangible (921,937 ) (924,743 ) (927,522 ) (931,322 ) (934,347 ) (926,351 ) (923,741 )assetsAverage tangible $ 1,577,714 $ 1,578,285 $ 1,528,512 $ 1,521,931 $ 1,510,564 $ 1,551,836 $ 1,513,270 commonequityReturn on average 7.00 % 7.97 % 7.60 % 6.70 % 6.05 % 7.32 % 4.01 %commonequity^(2)Return on averagecommonequity, adjusted^ 7.47 % 8.32 % 8.56 % 6.92 % 8.01 % 7.82 % 5.46 %(1)(2)Return on averagetangiblecommon equity^ 11.62 % 13.17 % 12.77 % 11.35 % 10.35 % 12.24 % 7.02 %(2)Return on averagetangiblecommon equity, 12.36 % 13.72 % 14.31 % 11.71 % 13.53 % 13.03 % 9.36 %adjusted^(1)(2)Return on Average Assets Net income $ 48,553 $ 54,863 $ 51,121 $ 45,023 $ 41,605 $ 199,560 $ 107,898 Total adjustments tonetincome, net of tax^ 2,959 2,187 5,853 1,328 12,051 12,327 35,257 (1)Net income, adjusted^(1) $ 51,512 $ 57,050 $ 56,974 $ 46,351 $ 53,656 $ 211,887 $ 143,155 Average assets $ 22,046,672 $ 21,899,560 $ 21,533,209 $ 20,919,040 $ 20,882,325 $ 21,603,531 $ 20,424,771 Return on average assets 0.87 % 0.99 % 0.95 % 0.87 % 0.79 % 0.92 % 0.53 %^(2)Return on average 0.93 % 1.03 % 1.06 % 0.90 % 1.02 % 0.98 % 0.70 %assets,adjusted^(1)(2)Noninterest Expense to Average Assets Noninterest expense $ 120,889 $ 116,054 $ 121,419 $ 118,425 $ 117,971 $ 476,787 $ 486,706 Less: Acquisition andintegrationrelated (3,945 ) (2,916 ) (7,773 ) (245 ) (1,860 ) (14,879 ) (13,462 )expensesOptimization costs ? ? (31 ) (1,525 ) (1,493 ) (1,556 ) (19,869 )Total $ 116,944 $ 113,138 $ 113,615 $ 116,655 $ 114,618 $ 460,352 $ 453,375 Average assets $ 22,046,672 $ 21,899,560 $ 21,533,209 $ 20,919,040 $ 20,882,325 $ 21,603,531 $ 20,424,771 Less: average PPP loans (317,553 ) (549,380 ) (1,035,386 ) (1,014,798 ) (1,013,511 ) (726,876 ) (775,883 )Average assets, $ 21,729,119 $ 21,350,180 $ 20,497,823 $ 19,904,242 $ 19,868,814 $ 20,876,655 $ 19,648,888 excluding PPPloansNoninterest expense to 2.18 % 2.10 % 2.26 % 2.30 % 2.25 % 2.21 % 2.38 %averageassets^(2)Noninterest expense,adjusted toaverage 2.14 % 2.10 % 2.22 % 2.38 % 2.29 % 2.21 % 2.31 %assets, excludingPPPloans^(2) Note: Non-GAAP Reconciliations footnotes are located at the end of thissection.

First Midwest Bancorp, Inc.Non-GAAP Reconciliations (Unaudited)(Amounts in thousands, except per share data) As of or for the Quarters Ended Years Ended December September June 30, March 31, December December December 31, 30, 31, 31, 31, 2021 2021 2021 2021 2020 2021 2020 Efficiency Ratio Calculation Noninterest expense $ 120,889 $ 116,054 $ 121,419 $ 118,425 $ 117,971 $ 476,787 $ 486,706 Less: Acquisition and integration (3,945 ) (2,916 ) (7,773 ) (245 ) (1,860 ) (14,879 ) (13,462 )related expensesNet OREO expense (442 ) 4 (160 ) (589 ) (106 ) (1,187 ) (1,196 )Optimization costs ? ? (31 ) (1,525 ) (1,493 ) (1,556 ) (19,869 )Total $ 116,502 $ 113,142 $ 113,455 $ 116,066 $ 114,512 $ 459,165 $ 452,179 Tax-equivalent net interest $ 139,811 $ 146,190 $ 145,241 $ 142,098 $ 149,141 $ 573,340 $ 584,079 income^(3)Noninterest income 44,479 45,180 46,270 45,803 27,715 181,732 140,653 Less: Swap termination costs ? ? ? ? 17,567 ? 31,852 Net securities gains ? ? ? ? ? ? (13,323 )Total $ 184,290 $ 191,370 $ 191,511 $ 187,901 $ 194,423 $ 755,072 $ 743,261 Efficiency ratio 63.22 % 59.12 % 59.24 % 61.77 % 58.90 % 60.81 % 60.84 %Pre-Tax, Pre-Provision Earnings Net Income $ 48,553 $ 54,863 $ 51,121 $ 45,023 $ 41,605 $ 199,560 $ 107,898 Income tax expense 16,737 19,459 18,018 17,372 5,743 71,586 27,083 Provision for credit losses (2,924 ) ? ? 6,098 10,507 3,174 98,615 Pre-Tax, Pre-ProvisionEarnings $ 62,366 $ 74,322 $ 69,139 $ 68,493 $ 57,855 $ 274,320 $ 233,596 Adjustments to pre-tax, pre-provision earnings:Acquisition and $ 3,945 $ 2,916 $ 7,773 $ 245 $ 1,860 $ 14,879 $ 13,462 integrationrelated expensesOptimization costs ? ? 31 1,525 1,493 1,556 19,869 Swap termination costs ? ? ? ? 17,567 ? 31,852 Net securities gains ? ? ? ? ? ? (13,323 )Total adjustments 3,945 2,916 7,804 1,770 20,920 16,435 51,860 Pre-Tax, Pre-ProvisionEarnings, $ 66,311 $ 77,238 $ 76,943 $ 70,263 $ 78,775 $ 290,755 $ 285,456 adjusted Note: Non-GAAP Reconciliations footnotes are located at the end of thissection.

First Midwest Bancorp, Inc.Non-GAAP Reconciliations (Unaudited)(Amounts in thousands, except per share data) As of or for the Quarters Ended December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 Tangible Common EquityStockholders' $ 2,512,228 $ 2,492,723 $ 2,473,648 $ 2,422,815 $ 2,459,506 equity, commonLess: goodwilland other (920,599 ) (923,383 ) (926,176 ) (928,974 ) (932,764 )intangible assetsTangible common 1,591,629 1,569,340 1,547,472 1,493,841 1,526,742 equityLess: AOCI 37,793 25,381 5,941 22,096 (26,379 )Tangible commonequity, excluding $ 1,629,422 $ 1,594,721 $ 1,553,413 $ 1,515,937 $ 1,500,363 AOCITotal assets $ 21,778,242 $ 21,778,180 $ 21,625,424 $ 21,208,591 $ 20,838,678 Less: goodwilland other (920,599 ) (923,383 ) (926,176 ) (928,974 ) (932,764 )intangible assetsTangible assets 20,857,643 20,854,797 20,699,248 20,279,617 19,905,914 Less: PPP loans (230,687 ) (384,100 ) (705,915 ) (1,109,442 ) (785,563 )Tangible assets,excluding PPP $ 20,626,956 $ 20,470,697 $ 19,993,333 $ 19,170,175 $ 19,120,351 loansTangible commonequity to 7.63 % 7.53 % 7.48 % 7.37 % 7.67 %tangible assetsTangible commonequity totangible assets, 7.72 % 7.67 % 7.74 % 7.79 % 7.98 %excluding PPPloansTangible commonequity, excluding 7.81 % 7.65 % 7.50 % 7.48 % 7.54 %AOCI, totangibleassetsTangible commonequity, excludingAOCI, to 7.90 % 7.79 % 7.77 % 7.91 % 7.85 %tangibleassets,excluding PPPloansTangible commonequity to 10.24 % 10.08 % 9.92 % 9.73 % 9.93 %risk-weightedassets

Footnotes to Non-GAAP Reconciliations(1)Adjustments to net income for each period presented are detailed in the EPS non-GAAP reconciliation above. For additional discussion of adjustments, see the "Non-GAAP Financial Information" section.(2)Annualized based on the actual number of days for each period presented. (3)Presented on a tax-equivalent basis, assuming the applicable federal income tax rate of 21%.