GlobeNewswire Inc | Oct 20, 2020 05:30PM EDT

October 20, 2020

CHICAGO, Oct. 20, 2020 (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 third quarter of 2020. Net income applicable to common shares for the third quarter of 2020 was $23.4 million, or $0.21 per share, compared to $17.8million, or $0.16 per share, for the second quarter of 2020, and $54.1 million, or $0.49 per share, for the third quarter of 2019.

Results for the third quarter of 2020 were impacted by retail and balance sheet optimization strategies as well as securities gains. For the first nine months of 2020, the COVID-19 pandemic (the "pandemic") and governmental responses to it impacted performance for 2020, resulting in higher provision for loan losses, as well as lower net interest and noninterest income. Reported results for all periods were impacted by acquisition and integration related expenses. For additional detail on these adjustments, see the "Non-GAAP Financial Information" section presented later in this release.

SELECT THIRD QUARTER VS. SECOND QUARTER HIGHLIGHTS

-- Generated EPS of $0.21, compared to $0.16 for the prior quarter, impacted by:$0.12 per share, or $18 million, for retail and balance sheet optimization costs in the third quarter of 2020.$0.07 per share, or $10 million, for the third quarter of 2020 and $0.17 per share, or $25 million, for the prior quarter, for the estimated impact of the pandemic on the allowance for credit losses ("ACL").$0.01 per share, or $1 million, of other pandemic related expenses compared to $0.02 in the prior quarter. -- Reported pre-tax, pre-provision earnings, adjusted(1) of $71 million, up 13% from the prior quarter due primarily to:Higher fee-based revenues of $38 million, up 25% from the prior quarter, reflective of record mortgage banking income and higher transaction volumes.Controlled noninterest expense, adjusted(1), to $112 million, down 3% from the prior quarter. -- Produced net interest income of $143 million at a net margin of 2.95%, down 18 basis points from the prior quarter, reflective of lower interest rates and the full quarter impact of Paycheck Protection Program ("PPP") loans. -- Credit performance stable with risk rating migration as expected: ACL of 1.68% of total loans, 1.83% excluding PPP loans, consistent with 1.80% as of June 30, 2020.Non-performing assets ("NPAs") to total loans plus foreclosed assets of 1.11%, consistent with 1.09% at June 30, 2020.Net loan charge-offs ("NCOs") of 0.26% of average loans excluding purchased credit deteriorated ("PCD") and PPP loans, consistent with 0.27% for the prior quarter.Adverse rated performing loan migration to $707 million, increasing from $450 million in the prior quarter, concentrated in elevated risk sectors. -- Total loans of $15 billion, down 2% from the prior quarter reflecting lower customer demand and higher customer liquidity levels. -- Increased total average deposits to $16 billion, up 3% from the prior quarter reflecting higher customer balances resulting from PPP funds, other government stimuli, and seasonal inflows of municipal deposits.

"Operating performance for the quarter benefited from improved fee-based revenues and tightened cost management," said Michael L. Scudder, Chairman of the Board and Chief Executive Officer of the Company. "Encouragingly, business activity showed signs of recovery after widespread shutdowns, even as the lag in demand and low interest rates weighed on the quarter's production. Against a backdrop of uncertainty, we prudently maintained our credit reserves, strengthened capital and took steps to better position our balance sheet for today's lower rate environment. We also took steps to further optimize our retail distribution to better align with client preferences and needs. Combined, these actions position our Company for both improved performance and future investment."

Mr. Scudder concluded, "As we look ahead, our collective drive remains centered on helping our clients achieve financial success. While times such as these present challenges, they also provide opportunities to leverage our financial strength to serve the needs of our clients, grow and enhance the value of our franchise."

RETAIL OPTIMIZATION

First Midwest continues its commitment to best meet the evolving needs and preferences of its clients. During the third quarter of 2020, the Company initiated certain actions that include optimizing its retail branch network and delivery model through the consolidation of 17 branches, or approximately 15% of its branch network, in early 2021. These actions resulted in pre-tax costs of $18million associated with valuation adjustments related to locations identified for closure, modernization of our ATM network, and advisory fees and are recorded within optimization costs within noninterest expense.

BALANCE SHEET OPTIMIZATION

During the third quarter of 2020, the Company terminated longer term interest rate swaps with a notional amount of $1.1 billion, as well as reduced a portion of the borrowed funds related to the terminated swaps. At the same time, the Company liquidated $160 million of securities. As a result of these transactions, $14 million of pre-tax securities gains was fully offset by $14 million of pre-tax loss on swap terminations, with both items recorded within noninterest income. These actions are expected to positively impact future net interest income along with reducing high levels of excess liquidity as the remaining borrowed funds hedged by the terminated swaps mature in the fourth quarter of 2020.

(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 September 30, 2020 June 30, 2020 September 30, 2019 Average Yield/ Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Balance Interest Rate (%) (%) (%)Assets Other interest-earning $ 1,234,948 $ 799 0.26 $ 646,887 $ 471 0.29 $ 283,178 $ 1,702 2.38 assetsSecurities^(1) 3,291,724 19,721 2.40 3,357,984 21,040 2.51 2,869,461 19,906 2.77 Federal Home Loan Bank("FHLB") andFederal 150,033 976 2.60 154,678 368 0.95 108,735 831 3.06 Reserve Bank ("FRB")stockLoans, excluding PPP 13,558,857 131,680 3.86 13,729,250 135,952 3.98 12,539,541 160,756 5.09 loans^(1)PPP loans^(1) 1,194,808 7,001 2.33 887,997 5,368 2.43 ? ? ? Total loans^(1) 14,753,665 138,681 3.74 14,617,247 141,320 3.89 12,539,541 160,756 5.09 Total interest-earning 19,430,370 160,177 3.28 18,776,796 163,199 3.49 15,800,915 183,195 4.60 assets^(1)Cash and due from banks 284,730 275,696 224,127 Allowance for loan (243,667 ) (224,519 ) (110,616 ) lossesOther assets 2,055,262 2,040,133 1,784,754 Total assets $ 21,526,695 $ 20,868,106 $ 17,699,180 Liabilities and Stockholders' EquitySavings deposits $ 2,342,355 104 0.02 $ 2,246,643 99 0.02 $ 2,056,128 308 0.06 NOW accounts 2,744,034 307 0.04 2,549,088 637 0.10 2,483,176 3,462 0.55 Money market deposits 2,781,666 724 0.10 2,663,622 1,157 0.17 2,080,274 4,111 0.78 Time deposits 2,302,019 5,702 0.99 2,539,996 8,184 1.30 3,026,423 13,873 1.82 Borrowed funds 2,436,922 6,021 0.98 2,466,300 3,156 0.51 1,369,079 5,639 1.63 Senior and subordinated 234,464 3,498 5.94 234,259 3,577 6.14 233,642 3,783 6.42 debtTotal interest-bearing 12,841,460 16,356 0.51 12,699,908 16,810 0.53 11,248,722 31,176 1.10 liabilitiesDemand deposits 5,631,355 5,305,109 3,800,569 Total funding sources 18,472,815 0.35 18,005,017 0.38 15,049,291 0.82 Other liabilities 378,786 361,311 322,610 Stockholders' equity 2,675,094 2,501,778 2,327,279 Total liabilities and $ 21,526,695 $ 20,868,106 $ 17,699,180 stockholders' equityTax-equivalent netinterest 143,821 2.95 146,389 3.13 152,019 3.82 income/margin^(1)Tax-equivalent (1,092 ) (1,155 ) (1,232 ) adjustmentNet interest income $ 142,729 $ 145,234 $ 150,787 (GAAP)^(1)Impact of acquired loan $ 7,960 0.16 $ 6,999 0.15 $ 9,244 0.23 accretion^(1)Tax-equivalent netinterest income/ $ 135,861 2.79 $ 139,390 2.98 $ 142,775 3.59

margin, adjusted^(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(1) 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 third quarter of 2020 was down 1.7% from the second quarter of 2020 and 5.3% from the third quarter of 2019. The decrease in net interest income compared to both prior periods resulted primarily from lower interest rates, partially offset by lower costs of funds and an increase in interest income and fees on PPP loans. Compared to the second quarter of 2020, net interest income was also impacted by a decrease in average loans, excluding PPP loans, and securities, partially offset by the number of days in the quarter. Net interest income compared to the third quarter of 2019 was impacted by growth in loans and securities as well as the acquisition of interest-earning assets from the Park transaction in the first quarter of 2020.

Acquired loan accretion contributed $8.0 million, $7.0 million, and $9.2 million to net interest income for the third quarter of 2020, second quarter of 2020, and third quarter of 2019, respectively.

Tax-equivalent net interest margin for the current quarter was 2.95%, decreasing 18 and 87 basis points from the second quarter of 2020 and third quarter of 2019, respectively. Excluding the impact of acquired loan accretion, tax-equivalent net interest margin was 2.79%, down 19 and 80 basis points from the second quarter of 2020 and third quarter of 2019, respectively. Compared to both prior periods, tax-equivalent net interest margin decreased as a result of lower interest rates on loans and securities, lower yields on PPP loans, as well as a higher balance of other interest-earning assets due to higher demand deposits as a result of PPP loan funds and other government stimuli, partially offset by lower cost of funds. In addition, tax-equivalent net interest margin compared to the second quarter of 2020 was impacted by higher interest rate swap expense on borrowed funds.

For the third quarter of 2020, total average interest-earning assets rose by $653.6 million and $3.6 billion from the second quarter of 2020 and third quarter of 2019, respectively. The increase compared to both prior periods resulted primarily from PPP loans and a higher balance of other interest-earning assets. In addition, the increase in average interest-earning assets compared to the third quarter of 2019 was impacted by the assets acquired in the Park Bank transaction, loan growth, and securities purchases.

Total average funding sources for the third quarter of 2020 increased by $467.8 million and $3.4 billion from the second quarter of 2020 and third quarter of 2019, respectively. The increase compared to both prior periods was driven primarily by deposit growth due to higher customer balances resulting from PPP funds and other government stimuli. In addition, the increase compared to the second quarter of 2020 was impacted by seasonal inflows of municipal deposits and compared to the third quarter of 2019 was impacted by deposits assumed in the Park Bank transaction and a higher balance of FHLB advances.

Noninterest Income Analysis(Dollar amounts in thousands)

Quarters Ended September 30, 2020 Percent Change From September June 30, September June September 30, 2020 30, 30, 30, 2020 2019 2020 2019Wealth $ 12,837 $ 11,942 $ 12,063 7.5 6.4 management feesService chargeson deposit 10,342 9,125 13,024 13.3 (20.6 ) accountsMortgage 6,659 3,477 3,066 91.5 117.2 banking incomeCard-based 4,472 3,180 4,694 40.6 (4.7 ) fees, netCapital market 886 694 4,161 27.7 (78.7 ) products incomeOther servicecharges, 2,823 2,078 3,023 35.9 (6.6 ) commissions,and feesTotal fee-based 38,019 30,496 40,031 24.7 (5.0 ) revenuesOther income 2,523 2,495 2,920 1.1 (13.6 ) Swaptermination (14,285 ) ? ? N/M N/M costsNet securities 14,328 ? ? N/M N/M gainsTotalnoninterest $ 40,585 $ 32,991 $ 42,951 23.0 (5.5 ) income

N/M Not meaningful.

Total noninterest income of $40.6 million was up 23.0% from the second quarter of 2020 and down 5.5% from the third quarter of 2019. Compared to both prior periods, the increase in wealth management fees was driven primarily by continued sales of fiduciary and investment advisory services to existing customers and a recovering market environment. The increase in service charges on deposit accounts, net card-based fees, and other service charges, commissions, and fees from the second quarter of 2020 was due to higher transaction volumes, whereas the decrease from the third quarter of 2019 resulted from the impact of lower transaction volumes as a result of the pandemic.

Record mortgage banking income for the third quarter of 2020 resulted from sales of $251.8 million of 1-4 family mortgage loans in the secondary market, compared to $168.7 million and $141.0 million in the second quarter of 2020 and third quarter of 2019, respectively.

Capital market products income decreased compared to the third quarter of 2019 as a result of lower levels of sales to corporate clients in light of market conditions.

During the third quarter of 2020, the Company terminated longer term interest rate swaps with a notional amount of $1.1 billion as a result of excess liquidity and in response to current market conditions. At the same time, the Company liquidated $160 million of securities.

As a result of these transactions, $14 million of pre-tax securities gains was fully offset by $14 million of pre-tax loss on swap terminations.

Noninterest Expense Analysis(Dollar amounts in thousands)

Quarters Ended September 30, 2020 Percent Change From September June 30, September 30, June September 30, 2020 2019 30, 30, 2020 2020 2019Salaries andemployee benefits:Salaries and $ 53,385 $ 52,592 $ 50,686 1.5 5.3 wagesRetirement andother employee 11,349 11,080 10,795 2.4 5.1 benefitsTotal salariesand employee 64,734 63,672 61,481 1.7 5.3 benefitsNet occupancyand equipment 13,736 15,116 12,787 (9.1 ) 7.4 expense^(1)Technology andrelated costs^ 10,416 9,853 6,960 5.7 49.7 (1)Professional 7,325 8,880 8,768 (17.5 ) (16.5 ) services^(1)Advertising 2,688 2,810 2,955 (4.3 ) (9.0 ) and promotionsNet other realestate owned 544 126 381 331.7 42.8 ("OREO")expenseOther expenses 12,374 14,624 11,432 (15.4 ) 8.2 Optimization 18,376 ? ? 100.0 100.0 costsAcquisitionandintegration 881 5,249 3,397 (83.2 ) (74.1 ) relatedexpensesDeliveringExcellence ? ? 234 ? (100.0 ) implementationcostsTotalnoninterest $ 131,074 $ 120,330 $ 108,395 8.9 20.9 expenseOptimization (18,376 ) ? ? (100.0 ) (100.0 ) costsAcquisitionandintegration (881 ) (5,249 ) (3,397 ) (83.2 ) (74.1 ) relatedexpensesDeliveringExcellence ? ? (234 ) ? (100.0 ) implementationcostsTotalnoninterest $ 111,817 $ 115,081 $ 104,764 (2.8 ) 6.7 expense,adjusted^(2)

^ Certain reclassifications were made to prior year amounts to conform to the(1) current year presentation.^ See the "Non-GAAP Financial Information" section presented later in this(2) release for a discussion of this non-GAAP financial measure.

Total noninterest expense increased 8.9% from the second quarter of 2020 and 20.9% from the third quarter of 2019. Noninterest expense for all periods presented was impacted by acquisition and integration related expenses. The third quarter of 2020 was impacted by optimization costs associated with retail optimization strategies, and the third quarter of 2019 was impacted by costs related to our Delivering Excellence initiative. Excluding these items, noninterest expense for the third quarter of 2020 was $111.8million, down 2.8% from the second quarter of 2020 and up 6.7% from the third quarter of 2019. Overall, noninterest expense, adjusted, to average assets, excluding PPP loans decreased to 2.19% for the third quarter of 2020, down 6% and 7% from the second quarter of 2020 and third quarter of 2019, respectively.

Operating costs associated with the Park Bank transaction completed in the first quarter of 2020 contributed to the increase in noninterest expense compared to the third quarter of 2019. These costs primarily occurred in salaries and employee benefits, net occupancy and equipment expense, professional services, technology and related costs, and other expenses.

Compared to the second quarter of 2020, salaries and employee benefits increased primarily due to lower levels of deferred loan salaries. The increase from the third quarter of 2019 was also impacted by merit increases and higher commissions resulting from sales of 1-4family mortgage loans in the secondary market, partially offset by lower incentive compensation expenses. Occupancy and equipment costs for the second quarter of 2020 were elevated by expenses resulting from the pandemic. Technology and related costs compared to the third quarter of 2019 was impacted by investments in technology, including the origination of PPP loans. Professional services expenses were lower compared to both prior periods due to elevated prior period expenses associated with process enhancements and organizational growth. Other expenses for the second quarter of 2020 was impacted by a valuation adjustment on a foreclosed asset.

Optimization costs of $18.4 million for the third quarter of 2020 primarily include valuation adjustments related to locations identified for closure, modernization of our ATM network, and advisory fees.

Acquisition and integration related expenses for the third quarter of 2020 and second quarter of 2020 resulted primarily from the acquisition of Park Bank. In addition, acquisition and integration related expenses for the second quarter of 2020 and third quarter of 2019 resulted from the acquisition of Bridgeview Bank.

LOAN PORTFOLIO AND ASSET QUALITY

Loan Portfolio Composition(Dollar amounts in thousands)

As of September 30, 2020 Percent Change From September 30, June 30, September 30, June September 2020 2020 2019 30, 30, 2020 2019Commercialand $ 4,635,571 $ 4,789,556 $ 4,570,361 (3.2 ) 1.4 industrialAgricultural 377,466 381,124 417,740 (1.0 ) (9.6 ) Commercial real estate:Office,retail, and 1,950,406 2,020,318 1,892,877 (3.5 ) 3.0 industrialMulti-family 868,293 874,861 817,444 (0.8 ) 6.2 Construction 631,607 687,063 637,256 (8.1 ) (0.9 ) Othercommercial 1,452,994 1,475,937 1,425,292 (1.6 ) 1.9 real estateTotalcommercial 4,903,300 5,058,179 4,772,869 (3.1 ) 2.7 real estateTotalcorporateloans, 9,916,337 10,228,859 9,760,970 (3.1 ) 1.6 excludingPPPloansPPP loans 1,196,538 1,179,403 ? 1.5 N/M Totalcorporate 11,112,875 11,408,262 9,760,970 (2.6 ) 13.9 loansHome equity 827,746 892,867 833,955 (7.3 ) (0.7 ) 1-4 family 2,287,555 2,175,322 1,686,967 5.2 35.6 mortgagesInstallment 425,012 457,207 491,427 (7.0 ) (13.5 ) Totalconsumer 3,540,313 3,525,396 3,012,349 0.4 17.5 loansTotal loans $ 14,653,188 $ 14,933,658 $ 12,773,319 (1.9 ) 14.7

N/M Not meaningful.

Total loans includes loans originated under the PPP loan program in the second and third quarters of 2020, which totaled $1.2billion as of September 30, 2020. Excluding these loans, total loans decreased 2.2% from June 30, 2020. Excluding PPP loans and the loans acquired in the Park Bank acquisition in the first quarter of 2020, total loans decreased 0.8% from September 30, 2019. Compared to both prior periods, corporate loans, excluding PPP loans were impacted by lower production and line usage and higher paydowns due to current economic conditions as a result of the ongoing pandemic.

Growth in consumer loans compared to both prior periods resulted primarily from strong production and purchases of 1-4family mortgages, which more than offset higher prepayments. In addition, compared to the third quarter of 2019, purchases of home equity loans contributed to the increase.

Allowance for Credit Losses(Dollar amounts in thousands)

As of September 30, 2020 Percent Change From September June 30, September June September 30, 2020 30, 30, 30, 2020 2019 2020 2019Allowance for credit lossesACL, excluding $ 209,988 $ 203,243 $ 110,228 3.3 90.5 PCD loansPCD loan ACL 36,885 44,434 ? (17.0 ) 100.0 Total ACL $ 246,873 $ 247,677 $ 110,228 (0.3 ) 124.0 Provision for $ 15,927 $ 32,649 $ 12,498 (51.2 ) 27.4 credit lossesACL to total 1.68 % 1.66 % 0.86 % loans^(1)ACL to totalloans, 1.83 % 1.80 % 0.86 % excluding PPPloans^(1)(2)ACL tonon-accrual 171.95 % 177.98 % 141.88 % loans

Prior to the adoption of the current expected credit losses accounting standard ("CECL") on January 1, 2020, this ratio included acquired loans^ that were recorded at fair value through an acquisition adjustment netted(1) in loans. Subsequent to adoption, an ACL on acquired loans is established as of the acquisition date and the acquired loans are no longer recorded net of a credit-related acquisition adjustment. This ratio excludes PPP loans that are expected to be forgiven. As a^ result, no allowance for credit losses is associated with these loans. See(2) the "Non-GAAP Financial Information" section presented later in this release for a discussion of this non-GAAP financial measure.

The Company adopted CECL on January 1, 2020, which impacted both the level of ACL as well as other asset quality metrics due to the change in accounting for acquired PCD loans. In addition, the Company participated in the PPP program, which resulted in $1.2 billion of loans originated in the second and third quarters of 2020 that are expected to be forgiven by the Small Business Administration ("SBA"). As a result, certain metrics are presented excluding PCD and PPP loans to provide comparability to prior periods.

The ACL was $246.9 million or 1.68% of total loans as of September 30, 2020, consistent with June 30, 2020 and increasing $136.6million compared to September 30, 2019. Excluding the impact of PPP loans, ACL to total loans was 1.83% as of September 30, 2020, consistent with 1.80% and up from 0.86% as of June 30, 2020 and September 30, 2019, respectively. Compared to September 30, 2019, the increase in ACL is a result of the adoption of the CECL accounting standard, the Park Bank acquisition, as well as additional ACL established as a result of the pandemic.

Asset Quality(Dollar amounts in thousands)

As of September 30, 2020 Percent Change From September June 30, September June September 30, 2020 30, 30, 30, 2020 2019 2020 2019Asset quality Non-accrual loans,excluding PCD loans^ $ 103,582 $ 94,044 $ 77,692 10.1 33.3 (1)(2)Non-accrual PCD loans^ 39,990 45,116 ? (11.4 ) N/M (1)Total non-accrual 143,572 139,160 77,692 3.2 84.8 loans90 days or more pastdue loans, still 3,781 3,241 4,657 16.7 (18.8 ) accruinginterest^(1)Total non-performing 147,353 142,401 82,349 3.5 78.9 loans, ("NPLs")Accruing troubled debtrestructurings 841 1,201 1,422 (30.0 ) (40.9 ) ("TDRs")Foreclosed assets^(3) 15,299 19,024 25,266 (19.6 ) (39.4 ) Total NPAs $ 163,493 $ 162,626 $ 109,037 0.5 49.9 30-89 days past due $ 21,551 $ 36,342 $ 46,171 (40.7 ) (53.3 ) loans^(1)30-89 days past dueloans, excluding $ 19,042 $ 34,872 $ 46,171 (45.4 ) (58.8 ) PCDloans^(1)(2)Special mention loans^ $ 395,295 $ 256,373 $ 185,369 54.2 113.2 (4)Substandard loans^(4) 311,430 193,337 171,731 61.1 81.3 Total adverse rated $ 706,725 $ 449,710 $ 357,100 57.2 97.9 performing loans^(4)Non-accrual loans to total loans:Non-accrual loans to 0.98 % 0.93 % 0.61 % total loansNon-accrual loans tototal loans, 1.07 % 1.01 % 0.61 % excludingPPP loans^(1)(2)(5)Non-accrual loans tototal loans,excluding 0.78 % 0.70 % 0.61 % PCD and PPP loans^(1)(2)(5)Non-performing loans to total loans:NPLs to total loans 1.01 % 0.95 % 0.64 % NPLs to total loans,excluding PPP loans^ 1.10 % 1.04 % 0.64 % (1)(2)(5)NPLs to total loans,excluding PCD and PPP 0.81 % 0.72 % 0.64 %

loans^(1)(2)(5)Non-performing assets to total loans plus foreclosed assets:NPAs to total loans 1.11 % 1.09 % 0.85 % plus foreclosed assetsNPAs to total loansplus foreclosedassets, 1.21 % 1.18 % 0.85 % excluding PPP loans^(1)(2)(5)NPAs to total loansplus foreclosedassets, 0.93 % 0.87 % 0.85 % excluding PCD and PPPloans^(1)(2)(5)Adverse rated performing loans to total loans:Adverse ratedperforming loans to 6.36 % 3.94 % 3.66 % corporateloansAdverse ratedperforming loans,excluding PPP 7.13 % 4.40 % 3.66 % loans to corporateloans

N/M ? Not meaningful. Prior to the adoption of CECL on January 1, 2020, purchased credit impaired ("PCI") loans with an accretable yield were considered current and were not included in past due loan totals. In addition, PCI loans with an accretable^ yield were excluded from non-accrual loans. Subsequent to adoption, PCD(1) loans, including those previously classified as PCI, are included in past due and non-accrual loan totals. In addition, an ACL is established as of the acquisition date or upon the adoption of CECL for loans previously classified as PCI, as PCD loans are no longer recorded net of a credit-related acquisition adjustment.^ See the "Non-GAAP Financial Information" section presented later in this(2) release for a discussion of this non-GAAP financial measure. Foreclosed assets consists of OREO and other foreclosed assets acquired in^ partial or total satisfaction of defaulted loans. Other foreclosed assets(3) are included in other assets in the Consolidated Statements of Financial Condition.^ Adverse rated performing loans excludes accruing TDRs.(4)^ This ratio excludes PPP loans that are expected to be forgiven. As a(5) result, no allowance for credit losses is associated with these loans.

NPAs represented 1.11% of total loans and foreclosed assets at September 30, 2020 compared to 1.09% and 0.85% at June30, 2020 and September 30, 2019, respectively. Excluding the impact of PCD and PPP loans, NPAs to total loans plus foreclosed assets was 0.93% at September 30, 2020, compared to 0.87% at June 30, 2020 and 0.85% at September 30, 2019, reflective of normal fluctuations that occur on a quarterly basis.

Adverse rated performing loans increased to $707 million for the third quarter of 2020 from $450 million and $357 million at June 30, 2020 and September 30, 2019, respectively. This increase is as a result of the pandemic's impact on certain borrowers primarily focused in elevated risk sectors that the Company has determined require additional monitoring. These loans exhibit potential or well-defined weaknesses but continue to accrue interest because they are well secured, and collection of principal and interest is expected.

Charge-Off Data (Dollar amounts in thousands)

Quarters Ended September 30, % of June 30, % of September % of 2020 Total 2020 Total 30, Total 2019Net loan charge-offs^(1)Commercial and $ 5,470 34.7 $ 4,735 36.6 $ 5,532 60.1 industrialAgricultural 265 1.7 118 0.9 439 4.8 Commercial real estate:Office, retail, 1,339 8.5 3,086 23.9 219 2.4 and industrialMulti-family ? ? 9 0.1 (38 ) (0.4 ) Construction 4,889 31.1 798 6.2 (2 ) ? Othercommercial real 1,753 11.1 19 0.1 (43 ) (0.5 ) estateConsumer 2,027 12.9 4,158 32.2 3,092 33.6 Total NCOs $ 15,743 100.0 $ 12,923 100.0 $ 9,199 100.0 Less: NCOs onPCD loans^(2) (6,923 ) 44.0 (3,833 ) 29.7 ? N/A(3)Total NCOs,excluding PCD $ 8,820 $ 9,090 $ 9,199 loans^(2)(3)Recoveriesincluded in $ 1,795 $ 1,311 $ 2,073 total NCOsQuarter-to-date ^(1)(4):Net loancharge-offs to 0.42 % 0.36 % 0.29 % average loansNet loancharge-offs toaverage 0.46 % 0.38 % 0.29 % loans,excluding PPPloans^(3)(5)Net loancharge-offs toaverageloans, 0.26 % 0.27 % 0.29 % excluding PCDand PPP loans^(3)(5)Year-to-date^ (1)(4):Net loancharge-offs to 0.38 % 0.36 % 0.31 % average loansNet loancharge-offs toaverage 0.40 % 0.38 % 0.31 % loans,excluding PPPloans^(3)(5)Net loancharge-offs toaverageloans, 0.29 % 0.30 % 0.31 % excluding PCDand PPP loans^(3)(5)

N/A ? Not applicable.^ Amounts represent charge-offs, net of recoveries.(1) Prior to the adoption of CECL on January 1, 2020, 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, an ACL on PCD loans, including those previously(2) identified as PCI, 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.^ See the "Non-GAAP Financial Information" section presented later in this(3) release for a discussion of this non-GAAP financial measure.^ Annualized based on the actual number of days for each period presented.(4)^ This ratio excludes PPP loans that are expected to be forgiven if employee(5) retention criteria are met and funds are used for eligible expenses. As a result, no allowance for credit losses is associated with these loans.

NCOs to average loans, annualized was 0.42%, compared to 0.36% for the second quarter of 2020 and 0.29% for the third quarter of 2019. Excluding charge-offs on PCD and the impact of PPP loans on this metric, NCOs to average loans was 0.26% for the third quarter of 2020, down from 0.27% for the second quarter of 2020 and 0.29% for the third quarter of 2019.

DEPOSIT PORTFOLIO

Deposit Composition(Dollar amounts in thousands)

Average for the Quarters Ended September 30, 2020 Percent Change From September 30, June 30, September 30, June September 2020 2020 2019 30, 30, 2020 2019Demand $ 5,631,355 $ 5,305,109 $ 3,800,569 6.1 48.2 depositsSavings 2,342,355 2,246,643 2,056,128 4.3 13.9 depositsNOW 2,744,034 2,549,088 2,483,176 7.6 10.5 accountsMoneymarket 2,781,666 2,663,622 2,080,274 4.4 33.7 accountsCore 13,499,410 12,764,462 10,420,147 5.8 29.6 depositsTime 2,302,019 2,539,996 3,026,423 (9.4 ) (23.9 ) depositsTotal $ 15,801,429 $ 15,304,458 $ 13,446,570 3.2 17.5 deposits

Total average deposits were $15.8 billion for the third quarter of 2020, up 3.2% from the second quarter of 2020 and 17.5% from the third quarter of 2019. Compared to both prior periods, the rise in total average deposits was impacted by higher customer balances resulting from PPP funds and other government stimuli. In addition, the increase in total average deposits compared to the second quarter of 2020 was impacted by seasonal inflows of municipal deposits and compared to the third quarter of 2019 was impacted by the deposits assumed in the Park Bank transaction in March 2020.

CAPITAL MANAGEMENT

Capital Ratios

As of September June December September 30, 30, 31, 30, 2020 2020 2019 2019Company regulatory capital ratios:Total capital to risk-weighted 14.06 % 13.70 % 12.96 % 12.62 %assetsTier 1 capital to 11.48 % 11.19 % 10.52 % 10.18 %risk-weighted assetsCommon equity Tier 1 ("CET1") 9.97 % 9.70 % 10.52 % 10.18 %to risk-weighted assetsTier 1 capital to average 8.50 % 8.70 % 8.81 % 8.67 %assetsCompany tangible common equity ratios^(1) (2):Tangible common equity to 7.43 % 7.32 % 8.81 % 8.54 %tangible assetsTangible common equity totangible assets, excluding PPP 7.90 % 7.77 % 8.81 % 8.54 %loansTangible common equity,excluding accumulated othercomprehensive 7.30 % 7.17 % 8.82 % 8.50 %income ("AOCI"), to tangibleassetsTangible common equity,excluding accumulated othercomprehensive 7.77 % 7.62 % 8.82 % 8.50 %income ("AOCI"), to tangibleassets, excluding PPP loansTangible common equity to 9.84 % 9.61 % 10.51 % 10.24 %risk-weighted assets

^ These ratios are not subject to formal Federal Reserve regulatory guidance.(1) Tangible common equity ("TCE") is a non-GAAP measure that represents common^ stockholders' equity less goodwill and identifiable intangible assets. For(2) details of the calculation of these ratios, see the sections titled, "Non-GAAP Financial Information" and "Non-GAAP Reconciliations" presented later in this release.

Total and Tier 1 capital to risk-weighted assets ratios increased compared to all prior periods primarily as a result of retained earnings and the mix of risk-weighted assets. Compared to September 30, 2019 total and Tier 1 capital ratios also benefited from the issuance of preferred stock. In addition, compared to September 30, 2019, all capital ratios were impacted by the approximately 50 basis point decrease due to the Park Bank acquisition, 15 basis point decrease due to stock repurchases, and the impact of loan growth and securities purchases on risk-weighted and average assets. The Company elected the five year CECL transition relief for regulatory capital, which retained approximately 30 basis points of CET1 and tier 1 capital at September 30, 2020.

The Board of Directors approved a quarterly cash dividend of $0.14 per common share during the third quarter of 2020, which is consistent with the second quarter of 2020 and the third quarter of 2019. This dividend represents the 151st consecutive cash dividend paid by the Company since its inception in 1983.

Conference Call

A conference call to discuss the Company's results, outlook, and related matters will be held on Wednesday, October 21, 2020 at 11A.M. (ET). Members of the public who would like to listen to the conference call should dial (877) 507-0639 (U.S. domestic) or (412) 317-6003 (International) and ask for the First Midwest Bancorp, Inc. Earnings Conference Call. The number should be dialed 10 to 15 minutes prior to the start of the conference call. There is no charge to access the call. The conference call will also be accessible as an audio webcast through the Investor Relations section of the Company's website, investor.firstmidwest.com. For those unable to listen to the live broadcast, a replay will be available on the Company's website or by dialing (877) 344-7529 (U.S. domestic) or (412) 317-0088 (International) conference I.D. 10148585 beginning one hour after completion of the live call until 9:00 A.M. (ET) on January 20, 2021. Please direct any questions regarding obtaining access to the conference call to First Midwest Bancorp, Inc. Investor Relations, via e-mail, at investor.relations@firstmidwest.com.

Press Release, Presentation Materials, and Additional Information Available on Website

This press release, the presentation materials to be discussed during the conference call, 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 press release, as well as any oral statements made by or on behalf of First Midwest, may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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," "predict," "project," "probable," "potential," "possible," "target," "continue," "look forward," or "assume" and words of similar import. 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, including the related outlook for 2020, the performance of First Midwest's loan or securities portfolio, the expected amount of future credit reserves or charge-offs, corporate strategies or objectives, including the impact of certain actions and initiatives, anticipated trends in First Midwest's business, regulatory developments, acquisition transactions, estimated synergies, cost savings and financial benefits of announced and completed transactions, growth strategies, including possible future acquisitions, and the continued or potential effects of the pandemic on our 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 pandemic, including the continued effects on our business, operations and employees, as well as on our 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 December31, 2019, 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, 30-89 days past due 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, 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 optimization costs (third quarter of 2020), swap termination costs (third quarter of 2020) acquisition and integration related expenses associated with completed and pending acquisitions (all periods), net securities gains (losses) (third and first quarters of 2020), and Delivering Excellence implementation costs (all periods in 2019). 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, acquisition and integration related expenses, and Delivering Excellence implementation costs. 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, 30-89 days past due loans, non-accrual loans to total loans, NPLs to total loans, NPAs to total loans plus foreclosed assets, 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 expected to be forgiven by the SBA 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 $21 billion of assets and an additional $13 billion of assets under management. First Midwest Bank and First Midwest's other affiliates provide a full range of commercial, treasury management, equipment leasing, consumer, wealth management, trust and private banking products and services. First Midwest operates branches and other locations throughout metropolitan Chicago, southeast Wisconsin, northwest Indiana, eastern Iowa and other markets in the Midwest. Visit First Midwest at www.firstmidwest.com.

CONTACTS:

Investors MediaPatrick S. Barrett Maurissa KanterEVP, Chief Financial Officer SVP, Director of Corporate Communications708.831.7231 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 September 30, June 30, March 31, December 31, September 30, 2020 2020 2020 2019 2019Period-End Balance SheetAssets Cash and due from $ 254,212 $ 304,445 $ 252,138 $ 214,894 $ 273,613 banksInterest-bearingdeposits in other 936,528 637,856 229,474 84,327 202,054 banksEquity securities, at 55,021 43,954 40,098 42,136 40,723 fair valueSecuritiesavailable-for-sale, 3,279,884 3,435,862 3,382,865 2,873,386 2,905,738 at fair valueSecuritiesheld-to-maturity, at 22,193 19,628 19,825 21,997 22,566 amortized costFHLB and FRB stock 138,120 148,512 154,357 115,409 112,845 Loans: Commercial and 4,635,571 4,789,556 5,064,295 4,481,525 4,570,361 industrialAgricultural 377,466 381,124 393,063 405,616 417,740 Commercial real estate:Office, retail, and 1,950,406 2,020,318 2,092,097 1,848,718 1,892,877 industrialMulti-family 868,293 874,861 918,944 856,553 817,444 Construction 631,607 687,063 661,363 593,093 637,256 Other commercial real 1,452,994 1,475,937 1,415,892 1,383,708 1,425,292 estatePPP loans 1,196,538 1,179,403 ? ? ? Home equity 827,746 892,867 973,658 851,454 833,955 1-4 family mortgages 2,287,555 2,175,322 1,957,037 1,927,078 1,686,967 Installment 425,012 457,207 488,668 492,585 491,427 Total loans 14,653,188 14,933,658 13,965,017 12,840,330 12,773,319 Allowance for loan (239,048 ) (240,052 ) (219,948 ) (108,022 ) (109,028 ) lossesNet loans 14,414,140 14,693,606 13,745,069 12,732,308 12,664,291 OREO 6,552 9,947 9,814 8,750 12,428 Premises, furniture, 132,267 143,001 145,844 147,996 147,064 and equipment, netInvestment inbank-owned life 300,429 299,649 298,827 296,351 297,610 insurance ("BOLI")Goodwill and other 935,801 940,182 935,241 875,262 876,219 intangible assetsAccrued interestreceivable and other 612,996 568,239 539,748 437,581 458,303 assetsTotal assets $ 21,088,143 $ 21,244,881 $ 19,753,300 $ 17,850,397 $ 18,013,454 Liabilities and Stockholders' EquityNoninterest-bearing $ 5,555,735 $ 5,602,016 $ 4,222,523 $ 3,802,422 $ 3,832,744 depositsInterest-bearing 10,215,838 10,055,640 9,876,427 9,448,856 9,608,183 depositsTotal deposits 15,771,573 15,657,656 14,098,950 13,251,278 13,440,927 Borrowed funds 1,957,180 2,305,195 2,648,210 1,658,758 1,653,490 Senior and 234,563 234,358 234,153 233,948 233,743 subordinated debtAccrued interestpayable and other 460,656 391,461 336,280 335,620 345,695 liabilitiesStockholders' equity 2,664,171 2,656,211 2,435,707 2,370,793 2,339,599 Total liabilities and $ 21,088,143 $ 21,244,881 $ 19,753,300 $ 17,850,397 $ 18,013,454 stockholders' equityStockholders' equity, $ 2,638,422 $ 2,627,484 $ 2,400,384 $ 2,372,747 $ 2,332,861 excluding AOCIStockholders' equity, 2,433,671 2,425,711 2,435,707 2,370,793 2,339,599 common

First Midwest Bancorp, Inc. Condensed Consolidated Statements of Income (Unaudited) (Dollar amounts in thousands) Quarters Ended Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, 2020 2020 2020 2019 2019 2020 2019Income Statement Interest income $ 159,085 $ 162,044 $ 170,227 $ 176,604 $ 181,963 $ 491,356 $ 522,135 Interest expense 16,356 16,810 26,652 28,245 31,176 59,818 82,012 Net interest income 142,729 145,234 143,575 148,359 150,787 431,538 440,123 Provision for loan losses 15,927 32,649 39,532 9,594 12,498 88,108 34,433 Net interest incomeafter 126,802 112,585 104,043 138,765 138,289 343,430 405,690 provision for credit lossesNoninterest Income Service charges ondeposit 10,342 9,125 11,781 12,664 13,024 31,248 36,760 accountsWealth management fees 12,837 11,942 12,361 12,484 12,063 37,140 35,853 Card-based fees, net 4,472 3,180 3,968 4,512 4,694 11,620 13,621 Capital marketproducts 886 694 4,722 6,337 4,161 6,302 7,594 incomeMortgage banking income 6,659 3,477 1,788 4,134 3,066 11,924 5,971 Other servicecharges, 2,823 2,078 2,682 2,946 3,023 7,583 8,417 commissions, and feesTotal fee-based revenues 38,019 30,496 37,302 43,077 40,031 105,817 108,216 Other income 2,523 2,495 3,065 3,419 2,920 8,083 8,167 Swap termination costs (14,285 ) ? ? ? ? (14,285 ) ? Net securities gains 14,328 ? (1,005 ) ? ? 13,323 ? (losses)Total noninterest 40,585 32,991 39,362 46,496 42,951 112,938 116,383 incomeNoninterest Expense Salaries and employee benefits: Salaries and wages 53,385 52,592 49,990 53,043 50,686 155,967 144,597 Retirement and other 11,349 11,080 12,869 9,930 10,795 35,298 32,949 employee benefitsTotal salaries and 64,734 63,672 62,859 62,973 61,481 191,265 177,546 employee benefitsNet occupancy and 13,736 15,116 14,227 12,940 12,787 43,079 38,878 equipment expenseProfessional services 7,325 8,880 10,390 10,949 8,768 26,595 25,479 Technology and related costs 10,416 9,853 8,548 7,429 6,960 28,817 20,358 Advertising and promotions 2,688 2,810 2,761 2,896 2,955 8,259 8,494 Net OREO expense 544 126 420 1,080 381 1,090 1,356 Other expenses 12,374 14,624 12,654 13,000 11,432 39,652 35,000 Optimization costs 18,376 ? ? ? ? 18,376 ? Acquisition andintegration 881 5,249 5,472 5,258 3,397 11,602 16,602 related expensesDeliveringExcellence ? ? ? 223 234 ? 934 implementation costsTotal noninterest expense 131,074 120,330 117,331 116,748 108,395 368,735 324,647 Income before incometax 36,313 25,246 26,074 68,513 72,845 87,633 197,426 expenseIncome tax expense 8,690 6,182 6,468 16,392 18,300 21,340 49,809 Net income $ 27,623 $ 19,064 $ 19,606 $ 52,121 $ 54,545 $ 66,293 $ 147,617 Preferred dividends (4,033 ) (1,037 ) ? ? ? (5,070 ) ? Net income applicableto (236 ) (187 ) (192 ) (424 ) (465 ) (615 ) (1,257 ) non-vested restricted sharesNet income applicable $ 23,354 $ 17,840 $ 19,414 $ 51,697 $ 54,080 $ 60,608 $ 146,360 to common sharesNet income applicableto 37,765 21,777 24,272 55,807 56,803 83,814 159,511 common shares, 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 Nine Months Ended September June 30, March 31, December September September September 30, 31, 30, 30, 30, 2020 2020 2020 2019 2019 2020 2019EPS Basic EPS $ 0.21 $ 0.16 $ 0.18 $ 0.47 $ 0.49 $ 0.54 $ 1.36 Diluted EPS $ 0.21 $ 0.16 $ 0.18 $ 0.47 $ 0.49 $ 0.54 $ 1.35 Diluted EPS, adjusted^(1) $ 0.33 $ 0.19 $ 0.22 $ 0.51 $ 0.52 $ 0.75 $ 1.47 Common Stock and Related Per Common Share Data Book value $ 21.29 $ 21.23 $ 21.33 $ 21.56 $ 21.27 $ 21.29 $ 21.27 Tangible book value $ 13.11 $ 13.00 $ 13.14 $ 13.60 $ 13.31 $ 13.11 $ 13.31 Dividends declared per share $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.42 $ 0.40 Closing price at period end $ 10.78 $ 13.35 $ 13.24 $ 23.06 $ 19.48 $ 10.78 $ 19.48 Closing price to book value 0.5 0.6 0.6 1.1 0.9 0.5 0.9 Period end shares outstanding 114,293 114,276 114,213 109,972 109,970 114,293 109,970 Period end treasury shares 11,067 11,079 11,136 10,443 10,441 11,067 10,441 Common dividends $ 16,011 $ 16,015 $ 16,002 $ 15,404 $ 15,406 $ 48,028 $ 43,746 Dividend payout ratio 66.67 % 87.50 % 77.78 % 29.79 % 28.57 % 77.78 % 29.41 %Dividend payout ratio, adjusted^ 42.42 % 73.68 % 63.64 % 27.45 % 26.92 % 56.00 % 27.21 %(1)Key Ratios/Data Return on averagecommon 3.80 % 2.94 % 3.23 % 8.69 % 9.22 % 3.33 % 8.75 %equity^(2)Return on averagecommon 6.15 % 3.58 % 4.04 % 9.38 % 9.68 % 4.60 % 9.54 %equity, adjusted^(1)(2)Return on averagetangible 6.73 % 5.32 % 5.66 % 14.37 % 15.36 % 5.90 % 14.55 %common equity^(2)Return on averagetangible 10.53 % 6.37 % 6.94 % 15.47 % 16.10 % 7.95 % 15.80 %common equity, adjusted^(1)(2)Return on average assets^(2) 0.51 % 0.37 % 0.43 % 1.16 % 1.22 % 0.44 % 1.18 %Return on averageassets, 0.78 % 0.44 % 0.53 % 1.25 % 1.28 % 0.59 % 1.29 %adjusted^(1)(2)Loans to deposits 92.91 % 95.38 % 99.05 % 96.90 % 95.03 % 92.91 % 95.03 %Efficiency ratio^(1) 60.36 % 64.08 % 60.21 % 56.16 % 53.54 % 61.52 % 54.60 %Net interest margin^(2)(3) 2.95 % 3.13 % 3.54 % 3.72 % 3.82 % 3.19 % 3.97 %Yield on averageinterest-earning 3.28 % 3.49 % 4.19 % 4.43 % 4.60 % 3.63 % 4.70 %assets^(2)(3)Cost of funds^(2)(4) 0.35 % 0.38 % 0.69 % 0.74 % 0.82 % 0.46 % 0.77 %Noninterest expense toaverage 2.42 % 2.32 % 2.56 % 2.59 % 2.43 % 2.43 % 2.60 %assets^(2)Noninterest expense, adjustedtoaverage assets, excluding 2.19 % 2.32 % 2.44 % 2.47 % 2.35 % 2.31 % 2.46 %PPPloans^(1)(2)Effective income tax rate 23.93 % 24.49 % 24.81 % 23.93 % 25.12 % 24.35 % 25.23 %Capital Ratios Total capital torisk-weighted 14.06 % 13.70 % 12.00 % 12.96 % 12.62 % 14.01 % 12.62 %assets^(1)Tier 1 capital torisk-weighted 11.48 % 11.19 % 9.64 % 10.52 % 10.18 % 11.42 % 10.18 %assets^(1)CET1 to risk-weighted assets^(1) 9.97 % 9.70 % 9.64 % 10.52 % 10.18 % 9.91 % 10.18 %Tier 1 capital to average assets 8.50 % 8.70 % 8.60 % 8.81 % 8.67 % 8.46 % 8.67 %^(1)Tangible common equityto 7.43 % 7.32 % 7.97 % 8.81 % 8.54 % 7.43 % 8.54 %tangible assets^(1)Tangible common equity,excluding AOCI, to 7.30 % 7.17 % 7.79 % 8.81 % 8.50 % 7.30 % 8.50 %tangibleassets^(1)Tangible common equity torisk- 9.84 % 9.61 % 9.63 % 10.51 % 10.24 % 9.84 % 10.24 %weighted assets^(1)Note: Selected Financial Information footnotes are located at the end of this section.

First Midwest Bancorp, Inc. Selected Financial Information (Unaudited)(Amounts in thousands, except per share data) As of or for the Quarters Ended Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, 2020 2020 2020 2019 2019 2020 2019Asset Quality Performance Data Non-performing assets Commercial and industrial $ 40,781 $ 19,475 $ 24,944 $ 29,995 $ 26,739 $ 40,781 $ 26,739 Agricultural 13,293 8,494 5,823 5,954 6,242 13,293 6,242 Commercial real estate: Office, retail, and 26,406 26,342 26,107 25,857 26,812 26,406 26,812 industrialMulti-family 1,547 2,132 2,688 2,697 2,152 1,547 2,152 Construction 2,977 18,640 18,764 152 152 2,977 152 Other commercial real estate 4,690 5,304 4,562 4,729 4,680 4,690 4,680 Consumer 13,888 13,657 14,761 12,885 10,915 13,888 10,915 Non-accrual, excludingPCD 103,582 94,044 97,649 82,269 77,692 103,582 77,692 loansNon-accrual PCD loans 39,990 45,116 48,950 ? ? 39,990 ? Total non-accrual loans 143,572 139,160 146,599 82,269 77,692 143,572 77,692 90 days or more past dueloans, 3,781 3,241 5,052 5,001 4,657 3,781 4,657 still accruing interestTotal NPLs 147,353 142,401 151,651 87,270 82,349 147,353 82,349 Accruing TDRs 841 1,201 1,216 1,233 1,422 841 1,422 Foreclosed assets^(5) 15,299 19,024 21,027 20,458 25,266 15,299 25,266 Total NPAs $ 163,493 $ 162,626 $ 173,894 $ 108,961 $ 109,037 $ 163,493 $ 109,037 30-89 days past due loans $ 21,551 $ 36,342 $ 81,127 $ 31,958 $ 46,171 $ 21,551 $ 46,171 Allowance for credit losses Allowance for loan losses $ 239,048 $ 240,052 $ 219,948 $ 108,022 $ 109,028 $ 239,048 $ 109,028 Reserve for unfunded 7,825 7,625 6,753 1,200 1,200 7,825 1,200 commitmentsTotal ACL $ 246,873 $ 247,677 $ 226,701 $ 109,222 $ 110,228 $ 246,873 $ 110,228 Provision for loan losses $ 15,927 $ 32,649 $ 39,532 $ 9,594 $ 12,498 $ 88,108 $ 34,433 Net charge-offs by category Commercial and industrial $ 5,470 $ 4,735 $ 4,680 $ 6,799 $ 5,532 $ 14,885 $ 15,193 Agricultural 265 118 1,227 15 439 1,610 1,186 Commercial real estate: Office, retail, and 1,339 3,086 329 256 219 4,754 2,291 industrialMulti-family ? 9 5 (439 ) (38 ) 14 301 Construction 4,889 798 1,808 3 (2 ) 7,495 (12 ) Other commercial real estate 1,753 19 164 13 (43 ) 1,936 430 Consumer 2,027 4,158 3,901 3,953 3,092 10,086 8,235 Total NCOs $ 15,743 $ 12,923 $ 12,114 $ 10,600 $ 9,199 $ 40,780 $ 27,624 Less: NCOs on PCD loans (6,923 ) (3,833 ) (1,720 ) ? ? (12,476 ) ? Total NCOs, excluding $ 8,820 $ 9,090 $ 10,394 $ 10,600 $ 9,199 $ 28,304 $ 27,624 PCD loansTotal recoveries included $ 1,795 $ 1,311 $ 1,816 $ 2,153 $ 2,073 $ 4,922 $ 5,849 aboveNote: Selected Financial Information footnotes are located at the end of this section.

First Midwest Bancorp, Inc. Selected Financial Information (Unaudited) As of or for the Quarters Ended Nine Months Ended September June 30, March 31, December 31, September September September 30, 30, 30, 30, 2020 2020 2020 2019 2019 2020 2019Adverse Rated Performing Loans Special mention loans^(8) $ 395,295 $ 256,373 $ 240,826 $ 188,703 $ 185,369 $ 395,295 $ 185,369 Substandard loans^(8) 311,430 193,337 196,923 188,711 171,731 311,430 171,731 Total adverserated $ 706,725 $ 449,710 $ 437,749 $ 377,414 $ 357,100 $ 706,725 $ 357,100 performing loans^(8)Asset quality ratios Non-accrual loans to 0.98 % 0.93 % 1.05 % 0.64 % 0.61 % 0.98 % 0.61 %total loansNon-accrual loans tototal 1.07 % 1.01 % 1.05 % 0.64 % 0.61 % 1.07 % 0.61 %loans,excluding PPP loans^(6)Non-accrual loans tototalloans, 0.78 % 0.70 % 0.71 % 0.64 % 0.61 % 0.78 % 0.61 %excluding PCD and PPPloans^(6)NPLs to total loans 1.01 % 0.95 % 1.09 % 0.68 % 0.64 % 1.01 % 0.64 %NPLs to total loans,excluding 1.10 % 1.04 % 1.09 % 0.68 % 0.64 % 1.10 % 0.64 %PPP loans^(6)NPLs to total loans,excluding 0.81 % 0.72 % 0.75 % 0.68 % 0.64 % 0.81 % 0.64 %PCD and PPP loans^(6)NPAs to total loansplus 1.11 % 1.09 % 1.24 % 0.85 % 0.85 % 1.11 % 0.85 %foreclosed assetsNPAs to total loansplusforeclosed assets, 1.21 % 1.18 % 1.24 % 0.85 % 0.85 % 1.21 % 0.85 %excludingPPP loans^(6)NPAs to total loansplusforeclosed assets, 0.93 % 0.87 % 0.91 % 0.85 % 0.85 % 0.93 % 0.85 %excludingPCD and PPP loans^(6)NPAs to tangible commonequity 9.37 % 9.38 % 10.07 % 6.79 % 6.93 % 9.37 % 6.93 %plus ACLNon-accrual loans to 0.68 % 0.66 % 0.74 % 0.46 % 0.43 % 0.68 % 0.43 %total assetsAdverse rated performingloans 6.36 % 3.94 % 4.15 % 3.95 % 3.66 % 6.36 % 3.66 %to corporate loansAdverse rated performingloans,excluding PPP loans 7.13 % 4.40 % 4.15 % 3.95 % 3.66 % 7.13 % 3.66 %tocorporate loans^(6)Allowance for credit losses and net charge-off ratios ACL to total loans^(7) 1.68 % 1.66 % 1.62 % 0.85 % 0.86 % 1.68 % 0.86 %ACL to non-accrual loans 171.95 % 177.98 % 154.64 % 132.76 % 141.88 % 171.95 % 141.88 %ACL to NPLs 167.54 % 173.93 % 149.49 % 125.15 % 133.85 % 167.54 % 133.85 %NCOs to average loans^(2) 0.42 % 0.36 % 0.37 % 0.33 % 0.29 % 0.38 % 0.31 %NCOs to averageloans, 0.46 % 0.38 % 0.37 % 0.33 % 0.29 % 0.40 % 0.31 %excluding PPP loans^(2)NCOs to averageloans, 0.26 % 0.27 % 0.32 % 0.33 % 0.29 % 0.29 % 0.31 %excluding PCD and PPPloans^(2)

Footnotes to Selected Financial Information^ See the "Non-GAAP Reconciliations" section for the detailed calculation.(1)^ Annualized based on the actual number of days for each period presented.(2)^ Presented on a tax-equivalent basis, assuming the applicable federal income(3) tax rate of 21%.^ Cost of funds expresses total interest expense as a percentage of total(4) average funding sources. Foreclosed assets consists of OREO and other foreclosed assets acquired in^ partial or total satisfaction of defaulted loans. Other foreclosed assets(5) are included in other assets in the Consolidated Statements of Financial Condition.^ This ratio excludes PPP loans that are expected to be forgiven if employee(6) retention criteria are met and funds are used for eligible expenses. As a result, no allowance for credit losses is associated with these loans. Prior to the adoption of CECL on January 1, 2020, this ratio included acquired loans that were recorded at fair value through an acquisition adjustment netted in loans, which incorporated credit risk as of the^ acquisition date with no ACL being established at that time. As the(7) acquisition adjustment was accreted into income over future periods, an ACL on acquired loans was established as necessary to reflect credit deterioration. Subsequent to adoption, an ACL on acquired loans is established as of the acquisition date and the acquired loans are no longer recorded net of a credit-related acquisition adjustment.^ Adverse rated performing loans excludes accruing TDRs.(8)



First Midwest Bancorp, Inc. Non-GAAP Reconciliations (Unaudited) (Amounts in thousands, except per share data) Quarters Ended Nine Months Ended September June 30, March 31, December 31, September September September 30, 30, 30, 30, 2020 2020 2020 2019 2019 2020 2019EPS Net income $ 27,623 $ 19,064 $ 19,606 $ 52,121 $ 54,545 $ 66,293 $ 147,617 Dividends and accretion on (4,033 ) (1,037 ) ? ? ? (5,070 ) ? preferred stockNet income applicable tonon- (236 ) (187 ) (192 ) (424 ) (465 ) (615 ) (1,257 ) vested restricted sharesNet income applicable to 23,354 17,840 19,414 51,697 54,080 60,608 146,360 common sharesAdjustments to net income: Optimization costs 18,376 ? ? ? ? 18,376 ? Tax effect ofoptimization (4,594 ) ? ? ? ? (4,594 ) ? costsSwap termination costs 14,285 ? ? ? ? 14,285 ? Tax effect of swaptermination (3,571 ) ? ? ? ? (3,571 ) ? costsAcquisition andintegration 881 5,249 5,472 5,258 3,397 11,602 16,602 related expensesTax effect of acquisitionand (220 ) (1,312 ) (1,368 ) (1,315 ) (849 ) (2,900 ) (4,151 ) integration related expensesNet securities (gains) losses (14,328 ) ? 1,005 ? ? (13,323 ) ? Tax effect of netsecurities 3,582 ? (251 ) ? ? 3,331 ? (gains) lossesDelivering Excellence ? ? ? 223 234 ? 934 implementation costsTax effect of DeliveringExcellence ? ? ? (56 ) (59 ) ? (234 ) implementationcostsTotal adjustments to net 14,411 3,937 4,858 4,110 2,723 23,206 13,151 income, net of taxNet income applicable tocommon shares, $ 37,765 $ 21,777 $ 24,272 $ 55,807 $ 56,803 $ 83,814 $ 159,511 adjusted^(1)Weighted-average common shares outstanding: Weighted-average common 113,160 113,145 109,922 109,059 109,281 112,079 107,852 shares outstanding (basic)Dilutive effect ofcommon 276 191 443 519 381 322 394 stock equivalentsWeighted-average dilutedcommon shares 113,436 113,336 110,365 109,578 109,662 112,401 108,246 outstandingBasic EPS $ 0.21 $ 0.16 $ 0.18 $ 0.47 $ 0.49 $ 0.54 $ 1.36 Diluted EPS $ 0.21 $ 0.16 $ 0.18 $ 0.47 $ 0.49 $ 0.54 $ 1.35 Diluted EPS, adjusted^(1) $ 0.33 $ 0.19 $ 0.22 $ 0.51 $ 0.52 $ 0.75 $ 1.47 Anti-dilutive shares notincludedin the computation of ? ? ? ? ? ? ? dilutedEPSDividend Payout Ratio Dividends declared per share $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.42 $ 0.40 Dividend payout ratio 66.67 % 87.50 % 77.78 % 29.79 % 28.57 % 77.78 % 29.41 % Dividend payout ratio, adjusted^ 42.42 % 73.68 % 63.64 % 27.45 % 26.92 % 56.00 % 27.21 % (1) Note: Non-GAAP Reconciliations footnotes are located at the end of this section.

First Midwest Bancorp, Inc. Non-GAAP Reconciliations (Unaudited) (Amounts in thousands, except per share data) As of or for the Quarters Ended Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, 2020 2020 2020 2019 2019 2020 2019Return on Average Common and Tangible Common Equity Net income applicable to $ 23,354 $ 17,840 $ 19,414 $ 51,697 $ 54,080 $ 60,608 $ 146,360 common sharesIntangibles amortization 2,810 2,820 2,770 2,744 2,750 8,400 7,737 Tax effect of intangibles (703 ) (705 ) (693 ) (686 ) (688 ) (2,100 ) (1,934 ) amortizationNet income applicable tocommon shares, excluding 25,461 19,955 21,491 53,755 56,142 66,908 152,163 intangibles amortizationTotal adjustments to netincome, 14,411 3,937 4,858 4,110 2,723 23,206 13,151 net of tax^(1)Net income applicable to $ 39,872 $ 23,892 $ 26,349 $ 57,865 $ 58,865 $ 90,114 $ 165,314 common shares, adjusted^(1)Average stockholders'common $ 2,444,594 $ 2,443,212 $ 2,415,157 $ 2,359,197 $ 2,327,279 $ 2,434,358 $ 2,236,402 equityLess: average intangible assets (938,712 ) (934,022 ) (887,600 ) (874,829 ) (877,069 ) (920,180 ) (837,850 ) Average tangible common $ 1,505,882 $ 1,509,190 $ 1,527,557 $ 1,484,368 $ 1,450,210 $ 1,514,178 $ 1,398,552 equityReturn on average common 3.80 % 2.94 % 3.23 % 8.69 % 9.22 % 3.33 % 8.75 % equity^(2)Return on average common 6.15 % 3.58 % 4.04 % 9.38 % 9.68 % 4.60 % 9.54 % equity, adjusted^(1)(2)Return on averagetangible 6.73 % 5.32 % 5.66 % 14.37 % 15.36 % 5.90 % 14.55 % common equity^(2)Return on averagetangible 10.53 % 6.37 % 6.94 % 15.47 % 16.10 % 7.95 % 15.80 % common equity, adjusted^(1)(2)Return on Average Assets Net income $ 27,623 $ 19,064 $ 19,606 $ 52,121 $ 54,545 $ 66,293 $ 147,617 Total adjustments to netincome, 14,411 3,937 4,858 4,110 2,723 23,206 13,151 net of tax^(1)Net income, adjusted^(1) $ 42,034 $ 23,001 $ 24,464 $ 56,231 $ 57,268 $ 89,499 $ 160,768 Average assets $ 21,526,695 $ 20,868,106 $ 18,404,821 $ 17,889,158 $ 17,699,180 $ 20,271,140 $ 16,709,797 Return on average assets^(2) 0.51 % 0.37 % 0.43 % 1.16 % 1.22 % 0.44 % 1.18 % Return on average assets, 0.78 % 0.44 % 0.53 % 1.25 % 1.28 % 0.59 % 1.29 % adjusted^(1)(2)Noninterest Expense to Average Assets Noninterest expense $ 131,074 $ 120,330 $ 117,331 $ 116,748 $ 108,395 $ 368,735 $ 324,647 Less: Optimization costs (18,376 ) ? ? ? ? (18,376 ) ? Acquisition andintegration (881 ) (5,249 ) (5,472 ) (5,258 ) (3,397 ) (11,602 ) (16,602 ) related expensesDelivering Excellence ? ? ? (223 ) (234 ) ? (934 ) implementation costsTotal $ 111,817 $ 115,081 $ 111,859 $ 111,267 $ 104,764 $ 338,757 $ 307,111 Average assets $ 21,526,695 $ 20,868,106 $ 18,404,821 $ 17,889,158 $ 17,699,180 $ 20,271,140 $ 16,709,797 Less: average PPP loans (1,194,808 ) (887,977 ) ? ? ? (696,095 ) ? Average assets, excludingPPP $ 20,331,887 $ 19,980,129 $ 18,404,821 $ 17,889,158 $ 17,699,180 $ 19,575,045 $ 16,709,797 loansNoninterest expense toaverage 2.42 % 2.32 % 2.56 % 2.59 % 2.43 % 2.43 % 2.60 % assets^(2)Noninterest expense, adjustedtoaverage assets, excluding 2.19 % 2.32 % 2.44 % 2.47 % 2.35 % 2.31 % 2.46 % PPPloans^(2) Note: Non-GAAP Reconciliations footnotes are located at the end of this section.

First Midwest Bancorp, Inc. Non-GAAP Reconciliations (Unaudited) (Amounts in thousands, except per share data) As of or for the Quarters Ended Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, 2020 2020 2020 2019 2019 2020 2019Efficiency Ratio Calculation Noninterest expense $ 131,074 $ 120,330 $ 117,331 $ 116,748 $ 108,395 $ 368,735 $ 324,647 Less: Optimization costs (18,376 ) ? ? ? ? (18,376 ) ? Acquisition andintegration (881 ) (5,249 ) (5,472 ) (5,258 ) (3,397 ) (11,602 ) (16,602 ) related expensesNet OREO expense (544 ) (126 ) (420 ) (1,080 ) (381 ) (1,090 ) (1,356 ) Delivering Excellence ? ? ? (223 ) (234 ) ? (934 ) implementation costsTotal $ 111,273 $ 114,955 $ 111,439 $ 110,187 $ 104,383 $ 337,667 $ 305,755 Tax-equivalent netinterest $ 143,821 $ 146,389 $ 144,728 $ 149,711 $ 152,019 $ 434,938 $ 443,643 income^(3)Noninterest income 40,585 32,991 39,362 46,496 42,951 112,938 116,383 Less: Swap termination costs 14,285 ? ? ? ? 14,285 ? Net securities (gains) losses (14,328 ) ? 1,005 ? ? (13,323 ) ? Total $ 184,363 $ 179,380 $ 185,095 $ 196,207 $ 194,970 $ 548,838 $ 560,026 Efficiency ratio 60.36 % 64.08 % 60.21 % 56.16 % 53.54 % 61.52 % 54.60 % Pre-Tax, Pre-Provision Earnings Net Income $ 27,623 $ 19,064 $ 19,606 $ 52,121 $ 54,545 $ 66,293 $ 147,617 Income tax expense 8,690 6,182 6,468 16,392 18,300 21,340 49,809 Provision for credit losses 15,927 32,649 39,532 9,594 12,498 88,108 34,433 Pre-Tax,Pre-Provision $ 52,240 $ 57,895 $ 65,606 $ 78,107 $ 85,343 $ 175,741 $ 231,859 EarningsAdjustments to pre-tax, pre- provision earnings:Optimization costs 18,376 ? ? ? ? 18,376 ? Swap termination costs 14,285 ? ? ? ? 14,285 ? Acquisition andintegration 881 5,249 5,472 5,258 3,397 11,602 16,602 related expensesNet securities (gains) losses (14,328 ) ? 1,005 ? ? (13,323 ) ? Delivering Excellence ? ? ? 223 234 ? 934 implementation costsTotal adjustments 19,214 5,249 6,477 5,481 3,631 30,940 17,536 Pre-Tax,Pre-Provision $ 71,454 $ 63,144 $ 72,083 $ 83,588 $ 88,974 $ 206,681 $ 249,395 Earnings, adjusted Note: Non-GAAP Reconciliations footnotes are located at the end of this section.

First Midwest Bancorp, Inc.Non-GAAP Reconciliations (Unaudited)(Amounts in thousands, except per share data) As of or for the Quarters Ended September 30, June 30, March 31, December 31, September 30, 2020 2020 2020 2019 2019Tangible Common EquityStockholders' $ 2,433,671 $ 2,425,711 $ 2,435,707 $ 2,370,793 $ 2,339,599 equity, commonLess: goodwilland other (935,801 ) (940,182 ) (935,241 ) (875,262 ) (876,219 ) intangibleassetsTangible common 1,497,870 1,485,529 1,500,466 1,495,531 1,463,380 equityLess: AOCI (25,749 ) (28,727 ) (35,323 ) 1,954 (6,738 ) Tangible commonequity, $ 1,472,121 $ 1,456,802 $ 1,465,143 $ 1,497,485 $ 1,456,642 excluding AOCITotal assets $ 21,088,143 $ 21,244,881 $ 19,753,300 $ 17,850,397 $ 18,013,454 Less: goodwilland other (935,801 ) (940,182 ) (935,241 ) (875,262 ) (876,219 ) intangibleassetsTangible assets $ 20,152,342 $ 20,304,699 $ 18,818,059 $ 16,975,135 $ 17,137,235 Less: PPP loans (1,196,538 ) (1,179,403 ) ? ? ? Tangibleassets, $ 18,955,804 $ 19,125,296 $ 18,818,059 $ 16,975,135 $ 17,137,235 excluding PPPloansRisk-weighted $ 15,216,075 $ 15,458,361 $ 15,573,684 $ 14,225,444 $ 14,294,011 assetsTangible commonequity to 7.43 % 7.32 % 7.97 % 8.81 % 8.54 % tangible assetsTangible commonequity totangible 7.90 % 7.77 % 7.97 % 8.81 % 8.54 % assets,excluding PPPloansTangible commonequity,excluding AOCI, 7.30 % 7.17 % 7.79 % 8.82 % 8.50 % to tangibleassetsTangible commonequity,excluding AOCI,to tangible 7.77 % 7.62 % 7.79 % 8.82 % 8.50 % assets,excluding PPPloansTangible commonequity to 9.84 % 9.61 % 9.63 % 10.51 % 10.24 % risk-weightedassets

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