GlobeNewswire Inc | Jul 21, 2020 05:30PM EDT

July 21, 2020

CHICAGO, July 21, 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 second quarter of 2020. Net income applicable to common shares for the second quarter of 2020 was $17.8 million, or $0.16 per share, compared to $19.4 million, or $0.18 per share, for the first quarter of 2020, and $46.6 million, or $0.43 per share, for the second quarter of 2019.

Results for the second and first quarters of 2020 were impacted by the COVID-19 pandemic (the "pandemic") and governmental responses to it, resulting in higher provision for loan losses, as well as lower net interest and noninterest income. In addition, the adoption of the current expected credit losses ("CECL") accounting standard on January 1, 2020 added to the allowance for credit losses ("ACL") and impacted certain asset quality metrics and comparability to prior periods. Reported results for all periods were impacted by the Park Bank and Bridgeview Bank transactions in the first quarter of 2020 and the second quarter of 2019, respectively, including acquisition and integration related expenses, as well as operating income and expense.

SELECT SECOND QUARTER VS. FIRST QUARTER HIGHLIGHTS

-- Generated EPS of $0.16, compared to $0.18 for the prior quarter, impacted by:$0.17 per share, or $25 million, for the second quarter of 2020 and $0.19 per share, or $28 million, for the prior quarter of loan loss provision for the estimated impact of the pandemic on the ACL.$0.02 per share, or $3 million, of pandemic expenses and fee assistance programs compared to $0.01 in the prior quarter.$0.01 per share, or $1 million, for dividends on preferred stock issued in the second quarter of 2020.$0.03 per share, or $5 million, of acquisition and integration related expenses, compared to $0.04 in the prior quarter. -- Reported pre-tax, pre-provision earnings, adjusted(1) of $63 million, down 12% from the prior quarter due primarily to the full quarter impact of the pandemic on noninterest income and noninterest expenses. -- Produced net interest income of $145 million at a net margin of 3.13%, down 41 basis points from the prior quarter, reflective of lower interest rates and the impact of the Paycheck Protection Program ("PPP") loans. -- Noninterest income decreased to $33 million, down 16% from the prior quarter, reflective of the impact of the pandemic on transaction volumes and fee assistance programs offered to clients. -- Controlled noninterest expense to average assets of 2.32%, down 24 basis points from the prior quarter. -- Grew loans to $15 billion, up 7% from March 31, 2020, impacted by $1.2 billion of PPP loans at June 30, 2020. -- Consistent underlying credit performance compared to the prior quarter:Expanded the ACL to 1.66% of total loans, 1.80% excluding PPP loans, compared to 1.62% as of March 31, 2020.Non-performing assets ("NPAs") to total loans plus foreclosed assets of 1.09%, compared to 1.24% at March 31, 2020.Net loan charge-offs, ("NCOs"), of 0.36% of average loans, compared to 0.37% for the prior quarter. -- Increased total average deposits to $15 billion, up 14% from the prior quarter. -- Increased total capital to 13.70% of risk-weighted assets, up 170 basis points from the prior quarter, which benefited from the issuance of $230.5 million of 7.000% fixed rate preferred stock. -- Completed the conversion of Park Bank operating systems to the Company's operating platform.

"Performance for the quarter reflects the enormity of the times and the magnitude of underlying governmental policy response," said Michael L. Scudder, Chairman of the Board and Chief Executive Officer of the Company. "This includes the adverse impact on revenues resulting from reduced business demand and lower rates as well as the cost of prudently building our allowance for credit losses and capital given the more challenged and volatile economic outlook."

Mr. Scudder continued, "The character of our Company and our industry has shone throughout this crisis. I am proud of how our teams have risen to the challenge, working tirelessly to quickly adopt and modify products and services to help thousands of individuals and businesses to gain relief and access to governmental assistance, including more than $1.2 billion of PPP loans."

Mr. Scudder concluded, "It remains unclear how the duration and severity of the downturn, as well as the effectiveness of fiscal support, will shape future demand and asset quality. Importantly, with the support of a talented and engaged team and a strong capital foundation, we are well-positioned to deliver on our ongoing commitment to the financial success of our clients. As always, we remain focused on strategically investing in our infrastructure, processes and capabilities to continue to better and more efficiently serve our clients for the long-term benefit of our shareholders."

ISSUANCE OF PREFERRED STOCK

During the second quarter of 2020, the Company completed the issuance of $230.5 million of its 7.000% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A and C. The Company received proceeds of $221.3million, net of underwriting discounts and commissions and issuance costs. The Company expects to use the net proceeds for general corporate purposes.

COVID-19 PANDEMIC

As one of the largest independent banks in Chicago, our mission is to help clients achieve financial success. We are committed to using our strong capital levels and ample liquidity to provide maximum support to our clients and communities during this unprecedented time. The programs and services First Midwest is offering to clients include:

-- Consumer, mortgage, and auto loan payment deferrals -- Small business payment deferrals -- Consumer and small business fee assistance programs -- Suspension of foreclosure and repossession actions -- Wide range of financial accommodations for our Commercial clients based on individual circumstances -- Ongoing participation in the PPP with $1.2 billion of loans funded to over 6,500 clients

In addition, First Midwest has committed $2.5 million from the First Midwest Charitable Foundation to support the immediate and long-term needs of the communities it serves.

(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 June 30, 2020 March 31, 2020 June 30, 2019 Average Yield/ Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Balance Interest Rate (%) (%) (%)Assets Other interest-earning assets $ 646,887 $ 471 0.29 $ 164,351 $ 816 2.00 $ 210,322 $ 1,240 2.36 Securities^(1) 3,357,984 21,040 2.51 3,066,574 20,757 2.71 2,631,437 18,423 2.80 Federal Home Loan Bank("FHLB") and 154,678 368 0.95 126,643 1,387 4.38 87,815 757 3.45 Federal Reserve Bank ("FRB")stockLoans, excluding PPP loans^(1) 13,729,250 135,952 3.98 13,073,752 148,420 4.57 12,022,470 158,442 5.29 PPP loans^(1) 887,997 5,368 2.43 ? ? ? ? ? ? Total loans^(1) 14,617,247 141,320 3.89 13,073,752 148,420 4.57 12,022,470 158,442 5.29 Total interest-earning assets^ 18,776,796 163,199 3.49 16,431,320 171,380 4.19 14,952,044 178,862 4.80 (1)Cash and due from banks 275,696 261,336 215,464 Allowance for loan losses (224,519 ) (179,392 ) (108,698 ) Other assets 2,040,133 1,891,557 1,681,240 Total assets $ 20,868,106 $ 18,404,821 $ 16,740,050 Liabilities and Stockholders' EquitySavings deposits $ 2,246,643 99 0.02 $ 2,069,163 164 0.03 $ 2,079,852 346 0.07 NOW accounts 2,549,088 637 0.10 2,273,156 1,630 0.29 2,261,103 2,776 0.49 Money market deposits 2,663,622 1,157 0.17 2,227,707 3,099 0.56 1,907,766 3,041 0.64 Time deposits 2,539,996 8,184 1.30 2,932,466 12,224 1.68 2,849,930 13,153 1.85 Borrowed funds 2,466,300 3,156 0.51 2,007,700 5,841 1.17 1,025,351 4,459 1.74 Senior and subordinated debt 234,259 3,577 6.14 234,053 3,694 6.35 220,756 3,595 6.53 Total interest-bearing 12,699,908 16,810 0.53 11,744,245 26,652 0.91 10,344,758 27,370 1.06 liabilitiesDemand deposits 5,305,109 3,884,015 3,835,567 Total funding sources 18,005,017 0.38 15,628,260 0.69 14,180,325 0.77 Other liabilities 361,311 361,404 318,156 Stockholders' equity 2,501,778 2,415,157 2,241,569 Total liabilities and $ 20,868,106 $ 18,404,821 $ 16,740,050 stockholders' equityTax-equivalent net interest 146,389 3.13 144,728 3.54 151,492 4.06 income/margin^(1)Tax-equivalent adjustment (1,155 ) (1,153 ) (1,180 ) Net interest income (GAAP)^(1) $ 145,234 $ 143,575 $ 150,312 Impact of acquired loan $ 6,999 0.15 $ 6,946 0.17 $ 10,308 0.28 accretion^(1)Tax-equivalent net interestincome/ $ 139,390 2.98 $ 137,782 3.37 $ 141,184 3.78 margin, 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 second quarter of 2020 was up 1.2% from the first quarter of 2020 and down 3.4% from the second quarter of 2019. The increase in net interest income compared to the first quarter of 2020 resulted primarily from the acquisition of interest-earning assets from the Park Bank transaction that closed in March 2020, interest income and fees on PPP loans, and lower costs of funds, partially offset by lower interest rates. Compared to the second quarter of 2019, the decrease in net interest income was driven primarily by lower interest rates, partially offset by growth in loans and securities, the acquisition of interest-earning assets from the Bridgeview Bank ("Bridgeview") transaction that closed in May 2019 and the Park transaction that closed in March 2020, and lower cost of funds.

Acquired loan accretion contributed $7.0 million, $6.9 million, and $10.3 million to net interest income for the second quarter of 2020, first quarter of 2020, and second quarter of 2019, respectively.

Tax-equivalent net interest margin for the current quarter was 3.13%, decreasing 41 and 93 basis points from the first quarter of 2020 and second quarter of 2019, respectively. Excluding the impact of acquired loan accretion, tax-equivalent net interest margin was 2.98%, down 39 and 80 basis points from the first quarter of 2020 and second 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, origination of 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. Compared to the first quarter of 2020 the seasonal increase in municipal deposits contributed to the decline. In addition, the decrease in tax-equivalent net interest margin compared to the second quarter of 2019 was impacted by actions taken to reduce rate sensitivity.

For the second quarter of 2020, total average interest-earning assets rose by $2.3 billion and $3.8 billion from the first quarter of 2020 and second quarter of 2019, respectively. The increase compared to both prior periods resulted primarily from PPP loans, securities purchases, the Park Bank transaction, and a higher balance of other interest-earning assets. In addition, the increase in average interest-earning assets compared to the second quarter of 2019 was impacted by the assets acquired in the Bridgeview transaction, as well as loan growth.

Total average funding sources for the second quarter of 2020 increased by $2.4 billion and $3.8 billion from the first quarter of 2020 and second quarter of 2019, respectively. The increase compared to both prior periods resulted primarily from FHLB advances and deposit growth due to the Park Bank transaction as well as higher customer balances resulting from PPP funds and other government stimuli. In addition, the increase compared to the second quarter of 2019 was impacted by deposits assumed in the Bridgeview transaction.

Noninterest Income Analysis(Dollar amounts in thousands)

June 30, 2020 Quarters Ended Percent Change From June 30, March 31, June 30, March June 2020 2020 2019 31, 30, 2020 2019Wealth management $ 11,942 $ 12,361 $ 12,190 (3.4 ) (2.0 )feesService charges on 9,125 11,781 12,196 (22.5 ) (25.2 )deposit accountsMortgage banking 3,477 1,788 1,901 94.5 82.9 incomeCard-based fees, net 3,180 3,968 4,549 (19.9 ) (30.1 )Capital market 694 4,722 2,154 (85.3 ) (67.8 )products incomeOther servicecharges, 2,078 2,682 2,783 (22.5 ) (25.3 )commissions, andfeesTotal fee-based 30,496 37,302 35,773 (18.2 ) (14.8 )revenuesOther income 2,495 3,065 2,753 (18.6 ) (9.4 )Net securities ? (1,005 ) ? N/M N/M lossesTotal noninterest $ 32,991 $ 39,362 $ 38,526 (16.2 ) (14.4 )income

N/M Not meaningful.

Total noninterest income of $33.0 million was down 16.2% from the first quarter of 2020 and 14.4% from the second quarter of 2019. Compared to both prior periods, the decrease in wealth management fees was driven primarily by lower market conditions. The decrease in service charges on deposit accounts, net card-based fees, and other service charges, commissions, and fees compared to both prior periods was due primarily to the impact of lower transaction volumes and the fee assistance programs offered to our clients as a result of the pandemic.

Capital market products income decreased compared to both prior periods as a result of lower levels of sales to corporate clients in light of market conditions.

Mortgage banking income for the second quarter of 2020 resulted from sales of $168.7 million of 1-4 family mortgage loans in the secondary market, compared to $116.6 million and $93.5 million in the first quarter of 2020 and second quarter of 2019, respectively. In addition, compared to the first quarter of 2020 mortgage banking income was impacted by a lower level of decline in the fair value of mortgage servicing rights.

Net securities losses of $1.0 million were recognized during the first quarter of 2020 as a result of repositioning of the Company's securities portfolio due to market conditions.

Noninterest Expense Analysis(Dollar amounts in thousands)

June 30, 2020 Quarters Ended Percent Change From June 30, March 31, June 30, March June 30, 2020 2020 2019 31, 2019 2020Salaries andemployee benefits:Salaries and $ 52,592 $ 49,990 $ 47,776 5.2 10.1 wagesRetirement andother employee 11,080 12,869 10,916 (13.9 ) 1.5 benefitsTotal salariesand employee 63,672 62,859 58,692 1.3 8.5 benefitsNet occupancyand equipment 15,116 14,227 12,294 6.2 23.0 expense^(1)Technology andrelated costs^ 9,853 8,548 7,128 15.3 38.2 (1)Professional 8,880 10,390 9,624 (14.5 ) (7.7 )services^(1)Advertising and 2,810 2,761 3,167 1.8 (11.3 )promotionsNet other realestate owned 126 420 294 (70.0 ) (57.1 )("OREO") expenseOther expenses 14,624 12,654 12,987 15.6 12.6 Acquisition andintegration 5,249 5,472 9,514 (4.1 ) (44.8 )related expensesDeliveringExcellence ? ? 442 ? (100.0 )implementationcostsTotalnoninterest $ 120,330 $ 117,331 $ 114,142 2.6 5.4 expenseAcquisition andintegration (5,249 ) (5,472 ) (9,514 ) (4.1 ) (44.8 )related expensesDeliveringExcellence ? ? (442 ) ? (100.0 )implementationcostsTotalnoninterest $ 115,081 $ 111,859 $ 104,186 2.9 10.5 expense,adjusted^(2)

(1) Certain reclassifications were made to prior year amounts to conform to the current year presentation.

(2) 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 2.6% from the first quarter of 2020 and 5.4% from the second quarter of 2019. Noninterest expense for all periods presented was impacted by acquisition and integration related expenses and the second quarter of 2019 was impacted by costs related to implementation of the Delivering Excellence initiative. Excluding these items, noninterest expense for the second quarter of 2020 was $115.1million, up 2.9% from the first quarter of 2020 and 10.5% from the second quarter of 2019. Overall, noninterest expense, adjusted, to average assets, excluding PPP loans was well controlled at 2.32% for the second quarter of 2020, down 5% and 7% from the first quarter of 2020 and second quarter of 2019, respectively.

Operating costs associated with the Park Bank transaction completed late in the first quarter of 2020 contributed to the increase in noninterest expense compared to both prior periods. In addition, operating costs associated with the Bridgeview transaction contributed to the increase in noninterest expense compared to the second 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 both prior periods, salaries and employee benefits was also impacted by merit increases and commissions resulting from sales of 1-4 family mortgage loans in the secondary market, partially offset by lower incentive compensation expenses. The increase in occupancy and equipment costs compared to both prior periods was also driven by expenses resulting from the pandemic. Technology and related costs compared to both prior periods was impacted by investments in technology, including the origination of PPP loans. Professional services decreased compared to both prior periods due to lower loan remediation expenses and higher prior period expenses associated with process enhancements and organizational growth. Compared to both prior periods, other expenses increased as a result of a valuation adjustment on a foreclosed asset.

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

LOAN PORTFOLIO AND ASSET QUALITY

Loan Portfolio Composition(1)(Dollar amounts in thousands)

June 30, 2020 As of Percent Change From June 30, March 31, June 30, March June 2020 2020 2019 31, 30, 2020 2019Commercialand $ 4,789,556 $ 5,064,295 $ 4,524,401 (5.4 ) 5.9 industrialAgricultural 381,124 393,063 430,589 (3.0 ) (11.5 )Commercial real estate:Office,retail, and 2,020,318 2,092,097 1,936,577 (3.4 ) 4.3 industrialMulti-family 874,861 918,944 787,155 (4.8 ) 11.1 Construction 687,063 661,363 654,607 3.9 5.0 Othercommercial 1,475,937 1,415,892 1,447,673 4.2 2.0 real estateTotalcommercial 5,058,179 5,088,296 4,826,012 (0.6 ) 4.8 real estateTotalcorporateloans, 10,228,859 10,545,654 9,781,002 (3.0 ) 4.6 excludingPPP loansPPP loans 1,179,403 ? ? N/M N/M Totalcorporate 11,408,262 10,545,654 9,781,002 8.2 16.6 loansHome equity 892,867 973,658 874,686 (8.3 ) 2.1 1-4 family 2,175,322 1,957,037 1,391,814 11.2 56.3 mortgagesInstallment 457,207 488,668 472,102 (6.4 ) (3.2 )Totalconsumer 3,525,396 3,419,363 2,738,602 3.1 28.7 loansTotal loans $ 14,933,658 $ 13,965,017 $ 12,519,604 6.9 19.3

N/M Not meaningful.

(1) Certain reclassifications were made to prior period amounts to conform to the current presentation.

Loan growth was positively impacted by the PPP loan program in the second quarter of 2020, which added $1.2 billion as of June 30, 2020. Excluding these loans, total loans decreased 1.5% from March 31, 2020. Excluding PPP loans and the loans acquired in the Park Bank acquisition in the first quarter of 2020, total loans grew 4.1% from June 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 1-4 family mortgages, which more than offset higher prepayments. In addition, compared to the second quarter of 2019, purchases of home equity loans contributed to the increase.

Allowance for Credit Losses(Dollar amounts in thousands)

As of June 30, 2020 Percent Change From June 30, March 31, June 30, March 31, June 2020 2020 2019 2020 30, 2019Allowance for credit lossesACL, excluding $ 203,243 $ 176,478 $ 106,929 15.2 90.1 PCD loansPCD loan ACL 44,434 50,223 ? (11.5 ) 100.0 Total ACL $ 247,677 $ 226,701 $ 106,929 9.3 131.6 Provision for $ 32,649 $ 39,532 $ 11,491 (17.4 ) 184.1 credit lossesACL to total 1.66 % 1.62 % 0.85 % loans^(1)ACL to totalloans, 1.80 % 1.62 % 0.85 % excluding PPPloans^(1)(2)ACL tonon-accrual 177.98 % 154.64 % 168.45 % loans

(1) 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. 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.

(2) This ratio excludes PPP loans that are expected to be forgiven if employee retention criteria are met and funds are used for eligible expenses. 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 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 purchased credit deteriorated ("PCD") loans. In addition, the Company participated in the PPP program, which resulted in $1.2 billion of loans originated in the second quarter of 2020 that are expected to be forgiven by the SBA. As a result, certain metrics are presented excluding PCD and PPP loans to provide comparability to prior periods.

The ACL was $247.7 million or 1.66% of total loans as of June 30, 2020, increasing $21.0 million and $140.7 million compared to March 31, 2020 and June 30, 2019, respectively. Excluding the impact of PPP loans, ACL to total loans was 1.80% as of June 30, 2020, up from 1.62% and 0.85% as of March 31, 2020 and June 30, 2019, respectively. As a result of the pandemic, a provision for loan losses of $25 million and $28 million was recorded in the second quarter and first quarter of 2020, respectively. Compared to June 30, 2019, adoption of the CECL accounting standard increased the ACL by $76 million, which included $32 million attributable to loans and unfunded commitments, $36million for PCD acquired loans, and $8 million for non-PCD acquired loans. In addition, in the first quarter of 2020, $14.3 million in allowance for credit losses was established through the acquisition accounting adjustments for PCD loans acquired in the Park Bank acquisition along with an additional $1.7 million in provision for loan losses on non-PCD loans.

Asset Quality(Dollar amounts in thousands)

June 30, 2020 As of Percent Change From June 30, March 31, June 30, March June 2020 2020 2019 31, 30, 2020 2019Asset quality Non-accrual loans,excluding PCD $ 94,044 $ 97,649 $ 63,477 (3.7 ) 48.2 loans^(1)(2)Non-accrual PCD 45,116 48,950 ? (7.8 ) N/M loans^(1)Total non-accrual 139,160 146,599 63,477 (5.1 ) 119.2 loans90 days or morepast due loans, 3,241 5,052 2,615 (35.8 ) 23.9 still accruing interest^(1)Totalnon-performing 142,401 151,651 66,092 (6.1 ) 115.5 loans, ("NPLs")Accruing troubleddebt 1,201 1,216 1,441 (1.2 ) (16.7 )restructurings ("TDRs")Foreclosed assets^ 19,024 21,027 28,488 (9.5 ) (33.2 )(3)Total NPAs $ 162,626 $ 173,894 $ 96,021 (6.5 ) 69.4 30-89 days past $ 36,342 $ 81,127 $ 34,460 due loans^(1)30-89 days pastdue loans, $ 34,872 $ 75,581 $ 34,460 excluding PCD loans^(1)(2)Non-accrual loans to total loans:Non-accrual loans 0.93 % 1.05 % 0.51 % to total loansNon-accrual loansto total loans,excluding 1.01 % 1.05 % 0.51 % PPP loans^(1)(2)(4)Non-accrual loansto total loans,excluding 0.70 % 0.71 % 0.51 % PCD and PPPloans^(1)(2)(4)Non-performingloans to total loans:NPLs to total 0.95 % 1.09 % 0.53 % loansNPLs to totalloans, excluding 1.04 % 1.09 % 0.53 % PPP loans^(1)(2)(4)NPLs to totalloans, excluding 0.72 % 0.75 % 0.53 % PCD and PPP loans^(1)(2)(4)Non-performing assets to total loans plus foreclosed assets:NPAs to totalloans plus 1.09 % 1.24 % 0.77 % foreclosed assetsNPAs to totalloans plusforeclosed assets, 1.18 % 1.24 % 0.77 % excluding PPPloans^(1)(2)(4)NPAs to totalloans plusforeclosed assets, 0.87 % 0.91 % 0.77 % excluding PCDand PPP loans^(1)(2)(4)

N/M Not meaningful.

(1) 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 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.

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

(3) 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.

(4) This ratio excludes PPP loans that are expected to be forgiven if employee retention criteria are met and funds are used for eligible expenses. 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.

NPAs represented 1.09% of total loans and foreclosed assets at June 30, 2020 compared to 1.24% and 0.77% at March31, 2020 and June 30, 2019, respectively. Excluding the impact of PCD and PPP loans, NPAs to total loans plus foreclosed assets was 0.87% at June 30, 2020, compared to 0.91% at March 31, 2020 and 0.77% at June 30, 2019, reflective of normal fluctuations that occur on a quarterly basis. The increase from June 30, 2019 occurred within non-accrual loans and is isolated to certain credits for which the Company has remediation plans in place.

Total 30-89 days past due loans, excluding PCD loans of $34.9 million decreased by $40.7 million from March 31, 2020 and were consistent with June 30, 2019. Reported levels at March 31, 2020 were elevated largely due to timing as renewal and payment activity on two loan relationships was delayed into the first week of April 2020.

Charge-Off Data(Dollar amounts in thousands)

Quarters Ended June 30, % of March 31, % of June 30, % of 2020 Total 2020 Total 2019 TotalNet loan charge-offs^(1)Commercial and $ 4,735 36.6 $ 4,680 38.7 $ 4,600 49.3 industrialAgricultural 118 0.9 1,227 10.1 658 7.0 Commercial real estate:Office, retail, 3,086 23.9 329 2.7 1,454 15.6 and industrialMulti-family 9 0.1 5 ? ? ? Construction 798 6.2 1,808 14.9 (10 ) (0.1 )Other commercial 19 0.1 164 1.4 284 3.0 real estateConsumer 4,158 32.2 3,901 32.2 2,355 25.2 Total NCOs $ 12,923 100.0 $ 12,114 100.0 $ 9,341 100.0 Less: NCOs on PCD (3,833 ) 29.7 (1,720 ) 14.2 ? N/A loans^(2)(3)Total NCOs,excluding PCD $ 9,090 $ 10,394 $ 9,341 loans^(2)(3)Recoveriesincluded in total $ 1,311 $ 1,816 $ 2,083 NCOsQuarter-to-date^ (1)(4):Net loancharge-offs to 0.36 % 0.37 % 0.31 % average loansNet loancharge-offs toaverage loans, 0.38 % 0.37 % 0.31 % excluding PPPloans^(3)(5)Net loancharge-offs toaverage loans, 0.27 % 0.32 % 0.31 % excluding PCDand PPP loans^(3)(5)Year-to-date^(1) (4):Net loancharge-offs to 0.36 % 0.37 % 0.32 % average loansNet loancharge-offs toaverage loans, 0.38 % 0.32 % 0.32 % excluding PPPloans^(3)(5)Net loancharge-offs toaverage loans, 0.30 % 0.32 % 0.32 % excluding PCDand PPP loans^(3)(5)

N/A Not applicable.

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

(2) 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 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.

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

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

(5) This ratio excludes PPP loans that are expected to be forgiven if employee retention criteria are met and funds are used for eligible expenses. 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.

NCOs to average loans, annualized was 0.36%, compared to 0.37% for the first quarter of 2020 and 0.31% for the second quarter of 2019. Excluding charge-offs on PCD and the impact of PPP loans on this metric, NCOs to average loans was 0.27% for the second quarter of 2020, down from 0.32% for the first quarter of 2020 and 0.31% for the second quarter of 2019.

DEPOSIT PORTFOLIO

Deposit Composition(Dollar amounts in thousands)

Average for the Quarters Ended June 30, 2020 Percent Change From June 30, March 31, June 30, March June 30, 2020 2020 2019 31, 2019 2020Demand $ 5,305,109 $ 3,884,015 $ 3,835,567 36.6 38.3 depositsSavings 2,246,643 2,069,163 2,079,852 8.6 8.0 depositsNOW 2,549,088 2,273,156 2,261,103 12.1 12.7 accountsMoneymarket 2,663,622 2,227,707 1,907,766 19.6 39.6 accountsCore 12,764,462 10,454,041 10,084,288 22.1 26.6 depositsTime 2,539,996 2,932,466 2,849,930 (13.4 ) (10.9 )depositsTotal $ 15,304,458 $ 13,386,507 $ 12,934,218 14.3 18.3 deposits

Total average deposits were $15.3 billion for the second quarter of 2020, up 14.3% from the first quarter of 2020 and 18.3% from the second quarter of 2019. Compared to both prior periods, the rise in total average deposits was impacted by higher deposits due to the Park Bank transaction in March 2020 as well as higher customer balances resulting from PPP funds and other government stimuli. The increase in total average deposits compared to the first quarter of 2020 was also impacted by the normal seasonal increase in municipal deposits. In addition, the increase compared to the second quarter of 2019 was impacted by deposits assumed in the Bridgeview transaction in May 2019.

CAPITAL MANAGEMENT

Capital Ratios

As of June March December June 30, 31, 31, 30, 2020 2020 2019 2019Company regulatory capital ratios: Total capital to risk-weighted 13.70 % 12.00 % 12.96 % 12.57 %assetsTier 1 capital to risk-weighted 11.19 % 9.64 % 10.52 % 10.11 %assetsCommon equity Tier 1 ("CET1") to 9.70 % 9.64 % 10.52 % 10.11 %risk-weighted assetsTier 1 capital to average assets 8.70 % 8.60 % 8.81 % 8.96 %Company tangible common equity ratios^(1)(2): Tangible common equity to tangible 7.32 % 7.97 % 8.81 % 8.57 %assetsTangible common equity to tangible 7.77 % 7.97 % 8.81 % 8.57 %assets, excluding PPP loansTangible common equity, excludingaccumulated other comprehensive 7.17 % 7.79 % 8.82 % 8.59 % income ("AOCI"), to tangibleassetsTangible common equity, excludingaccumulated other comprehensive 7.62 % 7.79 % 8.82 % 8.59 % income ("AOCI"), to tangibleassets, excluding PPP loansTangible common equity to 9.61 % 9.63 % 10.51 % 10.11 %risk-weighted 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.

Total and Tier 1 capital ratios increased compared to March 31, 2020 and June 30, 2019 as earnings and the issuance of preferred stock more than offset the impact of loan growth and securities purchases on risk-weighted assets. In addition, compared to June 30, 2019, all capital ratios were impacted by the approximately 50 basis point decrease due to the Park Bank acquisition, and 15 basis point decrease due to stock repurchases. The Company elected the five year CECL transition relief for regulatory capital which retained approximately 25 basis points of CET1 and tier 1 capital at June 30, 2020.

During the second quarter of 2020, the Company completed the issuance of $230.5 million of 7.000% Fixed Rate Non-Cumulative Perpetual Preferred Stock through a Series A and Series C issuance. The Company received proceeds of $221.3million, net of underwriting discounts and commissions and issuance costs.

The Board of Directors approved a quarterly cash dividend of $0.14 per common share during the second quarter of 2020, which is consistent with the first quarter of 2020 and the second quarter of 2019. This dividend represents the 150th 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, July 22, 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. 10145988 beginning one hour after completion of the live call until 9:00 A.M. (ET) on August 5, 2020. 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 its 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, return on average tangible common equity and pre-tax, pre-provision earnings, all adjusted for certain significant transactions. These transactions include acquisition and integration related expenses associated with completed and pending acquisitions (all periods), net securities losses (first quarter of 2020), and Delivering Excellence implementation costs (all periods in 2019). In addition, income tax expense and provision for loan losses 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 excluding these transactions from EPS, the efficiency ratio, return on average assets, return on average common equity, return on average tangible common equity, and pre-tax, pre-provision earnings 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.

The Company presents noninterest expense, adjusted, which excludes 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 Small Business Administration ("SBA") if employee retention criteria are met and funds are used for eligible expenses. 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 June 30, March 31, December 31, September 30, June 30, 2020 2020 2019 2019 2019Period-End Balance SheetAssets Cash and due from $ 304,445 $ 252,138 $ 214,894 $ 273,613 $ 199,684 banksInterest-bearingdeposits in other 637,856 229,474 84,327 202,054 126,966 banksEquity securities, 43,954 40,098 42,136 40,723 40,690 at fair valueSecuritiesavailable-for-sale, 3,435,862 3,382,865 2,873,386 2,905,738 2,793,316 at fair valueSecuritiesheld-to-maturity, 19,628 19,825 21,997 22,566 23,277 at amortized costFHLB and FRB stock 148,512 154,357 115,409 112,845 109,466 Loans: Commercial and 4,789,556 5,064,295 4,481,525 4,570,361 4,524,401 industrialAgricultural 381,124 393,063 405,616 417,740 430,589 Commercial real estate:Office, retail, and 2,020,318 2,092,097 1,848,718 1,892,877 1,936,577 industrialMulti-family 874,861 918,944 856,553 817,444 787,155 Construction 687,063 661,363 593,093 637,256 654,607 Other commercial 1,475,937 1,415,892 1,383,708 1,425,292 1,447,673 real estatePPP loans 1,179,403 ? ? ? ? Home equity 892,867 973,658 851,454 833,955 874,686 1-4 family 2,175,322 1,957,037 1,927,078 1,686,967 1,391,814 mortgagesInstallment 457,207 488,668 492,585 491,427 472,102 Total loans 14,933,658 13,965,017 12,840,330 12,773,319 12,519,604 Allowance for loan (240,052 ) (219,948 ) (108,022 ) (109,028 ) (105,729 )lossesNet loans 14,693,606 13,745,069 12,732,308 12,664,291 12,413,875 OREO 9,947 9,814 8,750 12,428 15,313 Premises,furniture, and 143,001 145,844 147,996 147,064 148,347 equipment, netInvestment inbank-owned life 299,649 298,827 296,351 297,610 297,118 insurance ("BOLI")Goodwill and other 940,182 935,241 875,262 876,219 878,802 intangible assetsAccrued interestreceivable and 568,239 539,748 437,581 458,303 415,379 other assetsTotal assets $ 21,244,881 $ 19,753,300 $ 17,850,397 $ 18,013,454 $ 17,462,233 Liabilities andStockholders' EquityNoninterest-bearing $ 5,602,016 $ 4,222,523 $ 3,802,422 $ 3,832,744 $ 3,748,316 depositsInterest-bearing 10,055,640 9,876,427 9,448,856 9,608,183 9,440,272 depositsTotal deposits 15,657,656 14,098,950 13,251,278 13,440,927 13,188,588 Borrowed funds 2,305,195 2,648,210 1,658,758 1,653,490 1,407,378 Senior and 234,358 234,153 233,948 233,743 233,538 subordinated debtAccrued interestpayable and other 391,461 336,280 335,620 345,695 332,156 liabilitiesStockholders' 2,656,211 2,435,707 2,370,793 2,339,599 2,300,573 equityTotal liabilitiesand stockholders' $ 21,244,881 $ 19,753,300 $ 17,850,397 $ 18,013,454 $ 17,462,233 equityStockholders'equity, excluding $ 2,627,484 $ 2,400,384 $ 2,372,747 $ 2,332,861 $ 2,303,383 AOCIStockholders' 2,425,711 2,435,707 2,370,793 2,339,599 2,300,573 equity, common

First Midwest Bancorp, Inc. Condensed Consolidated Statements of Income (Unaudited) (Dollar amounts in thousands) Quarters Ended Six Months Ended June 30, March 31, December September June 30, June 30, June 30, 31, 30, 2020 2020 2019 2019 2019 2020 2019Income Statement Interest income $ 162,044 $ 170,227 $ 176,604 $ 181,963 $ 177,682 $ 332,271 $ 340,172 Interest expense 16,810 26,652 28,245 31,176 27,370 43,462 50,836 Net interest income 145,234 143,575 148,359 150,787 150,312 288,809 289,336 Provision for loan 32,649 39,532 9,594 12,498 11,491 72,181 21,935 lossesNet interest incomeafter 112,585 104,043 138,765 138,289 138,821 216,628 267,401 provision for creditlossesNoninterest Income Service charges ondeposit 9,125 11,781 12,664 13,024 12,196 20,906 23,736 accountsWealth management fees 11,942 12,361 12,484 12,063 12,190 24,303 23,790 Card-based fees, net 3,180 3,968 4,512 4,694 4,549 7,148 8,927 Capital marketproducts 694 4,722 6,337 4,161 2,154 5,416 3,433 incomeMortgage banking 3,477 1,788 4,134 3,066 1,901 5,265 2,905 incomeOther service charges, commissions, and 2,078 2,682 2,946 3,023 2,783 4,760 5,394 feesTotal fee-based 30,496 37,302 43,077 40,031 35,773 67,798 68,185 revenuesOther income 2,495 3,065 3,419 2,920 2,753 5,560 5,247 Net securities losses ? (1,005 ) ? ? ? (1,005 ) ? Total noninterest 32,991 39,362 46,496 42,951 38,526 72,353 73,432 incomeNoninterest Expense Salaries and employee benefits: Salaries and wages 52,592 49,990 53,043 50,686 47,776 102,582 93,911 Retirement and other 11,080 12,869 9,930 10,795 10,916 23,949 22,154 employee benefitsTotal salaries and 63,672 62,859 62,973 61,481 58,692 126,531 116,065 employee benefitsNet occupancy and 15,116 14,227 12,940 12,787 12,294 29,343 26,091 equipment expenseProfessional services 8,880 10,390 10,949 8,768 9,624 19,270 16,711 Technology and related 9,853 8,548 7,429 6,960 7,128 18,401 13,398 costsAdvertising and 2,810 2,761 2,896 2,955 3,167 5,571 5,539 promotionsNet OREO expense 126 420 1,080 381 294 546 975 Other expenses 14,624 12,654 13,000 11,432 12,987 27,278 23,568 Acquisition andintegration 5,249 5,472 5,258 3,397 9,514 10,721 13,205 related expensesDelivering Excellence ? ? 223 234 442 ? 700 implementation costsTotal noninterest 120,330 117,331 116,748 108,395 114,142 237,661 216,252 expenseIncome before incometax 25,246 26,074 68,513 72,845 63,205 51,320 124,581 expenseIncome tax expense 6,182 6,468 16,392 18,300 16,191 12,650 31,509 Net income $ 19,064 $ 19,606 $ 52,121 $ 54,545 $ 47,014 $ 38,670 $ 93,072 Preferred dividends (1,037 ) ? ? ? ? (1,037 ) ? Net income applicableto (187 ) (192 ) (424 ) (465 ) (389 ) (379 ) (792 ) non-vestedrestricted sharesNet income applicable $ 17,840 $ 19,414 $ 51,697 $ 54,080 $ 46,625 $ 37,254 $ 92,280 to common sharesNet income applicableto 21,777 24,272 55,807 56,803 54,091 46,049 102,709 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 Six Months Ended June 30, March 31, December September June 30, June 30, June 30, 31, 30, 2020 2020 2019 2019 2019 2020 2019EPS Basic EPS $ 0.16 $ 0.18 $ 0.47 $ 0.49 $ 0.43 $ 0.33 $ 0.86 Diluted EPS $ 0.16 $ 0.18 $ 0.47 $ 0.49 $ 0.43 $ 0.33 $ 0.86 Diluted EPS, $ 0.19 $ 0.22 $ 0.51 $ 0.52 $ 0.50 $ 0.41 $ 0.96 adjusted^(1)Common Stock and Related Per Common Share Data Book value $ 21.23 $ 21.33 $ 21.56 $ 21.27 $ 20.80 $ 21.23 $ 20.80 Tangible book $ 13.00 $ 13.14 $ 13.60 $ 13.31 $ 12.86 $ 13.00 $ 12.86 valueDividendsdeclared per $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.28 $ 0.26 shareClosing price at $ 13.35 $ 13.24 $ 23.06 $ 19.48 $ 20.47 $ 13.35 $ 20.47 period endClosing price to 0.6 0.6 1.1 0.9 1.0 0.6 1.0 book valuePeriod endshares 114,276 114,213 109,972 109,970 110,589 114,276 110,589 outstandingPeriod end 11,079 11,136 10,443 10,441 9,818 11,079 9,818 treasury sharesCommon dividends $ 16,015 $ 16,002 $ 15,404 $ 15,406 $ 15,503 $ 32,017 $ 28,340 Dividend payout 87.50 % 77.78 % 29.79 % 28.57 % 32.56 % 84.85 % 30.23 %ratioDividend payoutratio, adjusted^ 73.68 % 63.64 % 27.45 % 26.92 % 28.00 % 68.29 % 27.08 %(1)Key Ratios/Data Return onaverage common 2.94 % 3.23 % 8.69 % 9.22 % 8.34 % 3.08 % 8.50 % equity^(2)Return onaverage common 3.58 % 4.04 % 9.38 % 9.68 % 9.68 % 3.81 % 9.46 % equity,adjusted^(1)(2)Return onaverage tangible 5.32 % 5.66 % 14.37 % 15.36 % 13.83 % 5.49 % 14.11 % common equity^(2)Return onaverage tangible common 6.37 % 6.94 % 15.47 % 16.10 % 15.95 % 6.65 % 15.64 %equity, adjusted^(1)(2)Return onaverage assets^ 0.37 % 0.43 % 1.16 % 1.22 % 1.13 % 0.40 % 1.16 %(2)Return onaverage assets, 0.44 % 0.53 % 1.25 % 1.28 % 1.31 % 0.49 % 1.29 % adjusted^(1)(2)Loans to 95.38 % 99.05 % 96.90 % 95.03 % 94.93 % 95.38 % 94.93 %depositsEfficiency ratio 64.08 % 60.21 % 56.16 % 53.54 % 54.67 % 62.12 % 55.16 %^(1)Net interest 3.13 % 3.54 % 3.72 % 3.82 % 4.06 % 3.33 % 4.05 %margin^(2)(3)Yield on averageinterest-earning 3.49 % 4.19 % 4.43 % 4.60 % 4.80 % 3.82 % 4.76 % assets^(2)(3)Cost of funds^ 0.38 % 0.69 % 0.74 % 0.82 % 0.77 % 0.52 % 0.75 %(2)(4)Noninterestexpense to 2.32 % 2.56 % 2.59 % 2.43 % 2.73 % 2.43 % 2.69 %average assets^(2)Noninterestexpense,adjusted to average 2.32 % 2.44 % 2.47 % 2.35 % 2.50 % 2.32 % 2.52 %assets,excluding PPP loans^(1)(2)Effective income 24.49 % 24.81 % 23.93 % 25.12 % 25.62 % 24.65 % 25.29 %tax rateCapital Ratios Total capital torisk-weighted 13.70 % 12.00 % 12.96 % 12.62 % 12.57 % 13.70 % 12.57 % assets^(1)Tier 1 capitalto risk-weighted 11.19 % 9.64 % 10.52 % 10.18 % 10.11 % 11.19 % 10.11 % assets^(1)CET1 torisk-weighted 9.70 % 9.64 % 10.52 % 10.18 % 10.11 % 9.70 % 10.11 %assets^(1)Tier 1 capitalto average 8.70 % 8.60 % 8.81 % 8.67 % 8.96 % 8.70 % 8.96 %assets^(1)Tangible commonequity to 7.32 % 7.97 % 8.81 % 8.54 % 8.57 % 7.32 % 8.57 % tangibleassets^(1)Tangible commonequity,excluding AOCI, 7.17 % 7.79 % 8.82 % 8.50 % 8.59 % 7.17 % 8.59 %to tangible assets^(1)Tangible commonequity to risk- 9.61 % 9.63 % 10.51 % 10.24 % 10.11 % 9.61 % 10.11 % weightedassets^(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 Six Months Ended June 30, March 31, December September June 30, June 30, June 30, 31, 30, 2020 2020 2019 2019 2019 2020 2019Asset Quality Performance DataNon-performing assets Commercial and $ 19,475 $ 24,944 $ 29,995 $ 26,739 $ 19,809 $ 19,475 $ 19,809 industrialAgricultural 8,494 5,823 5,954 6,242 6,712 8,494 6,712 Commercial real estate: Office, retail, and 26,342 26,107 25,857 26,812 17,875 26,342 17,875 industrialMulti-family 2,132 2,688 2,697 2,152 5,322 2,132 5,322 Construction 18,640 18,764 152 152 152 18,640 152 Other commercial real 5,304 4,562 4,729 4,680 3,982 5,304 3,982 estateConsumer 13,657 14,761 12,885 10,915 9,625 13,657 9,625 Non-accrual, excludingPCD 94,044 97,649 82,269 77,692 63,477 94,044 63,477 loansNon-accrual PCD loans 45,116 48,950 ? ? ? ? ? Total non-accrual loans 139,160 146,599 82,269 77,692 63,477 94,044 63,477 90 days or more pastdue loans, 3,241 5,052 5,001 4,657 2,615 3,241 2,615 still accruinginterestTotal NPLs 142,401 151,651 87,270 82,349 66,092 97,285 66,092 Accruing TDRs 1,201 1,216 1,233 1,422 1,441 1,201 1,441 Foreclosed assets^(5) 19,024 21,027 20,458 25,266 28,488 19,024 28,488 Total NPAs $ 162,626 $ 173,894 $ 108,961 $ 109,037 $ 96,021 $ 117,510 $ 96,021 30-89 days past due $ 36,342 $ 81,127 $ 31,958 $ 46,171 $ 34,460 $ 36,342 $ 34,460 loansAllowance for credit lossesAllowance for loan $ 240,052 $ 219,948 $ 108,022 $ 109,028 $ 105,729 $ 240,052 $ 105,729 lossesReserve for unfunded 7,625 6,753 1,200 1,200 1,200 7,625 1,200 commitmentsTotal ACL $ 247,677 $ 226,701 $ 109,222 $ 110,228 $ 106,929 $ 247,677 $ 106,929 Provision for loan $ 32,649 $ 39,532 $ 9,594 $ 12,498 $ 11,491 $ 72,181 $ 21,935 lossesNet charge-offs by categoryCommercial and $ 4,735 $ 4,680 $ 6,799 $ 5,532 $ 4,600 $ 9,415 $ 9,661 industrialAgricultural 118 1,227 15 439 658 1,345 747 Commercial real estate: Office, retail, and 3,086 329 256 219 1,454 3,415 2,072 industrialMulti-family 9 5 (439 ) (38 ) ? 14 339 Construction 798 1,808 3 (2 ) (10 ) 2,606 (10 )Other commercial real 19 164 13 (43 ) 284 183 473 estateConsumer 4,158 3,901 3,953 3,092 2,355 8,059 5,143 Total NCOs $ 12,923 $ 12,114 $ 10,600 $ 9,199 $ 9,341 $ 25,037 $ 18,425 Less: NCOs on PCD loans (3,833 ) (1,720 ) ? ? ? (5,553 ) ? Total NCOs, excludingPCD $ 9,090 $ 10,394 $ 10,600 $ 9,199 $ 9,341 $ 19,484 $ 18,425 loansTotal recoveries $ 1,311 $ 1,816 $ 2,153 $ 2,073 $ 2,083 $ 3,127 $ 3,776 included 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 SixMonths Ended June 30, March December September June 30, June 30, June 30, 31, 31, 30, 2020 2020 2019 2019 2019 2020 2019Assetquality ratiosNon-accrualloans to 0.93 % 1.05 % 0.64 % 0.61 % 0.51 % 0.93 % 0.51 %total loansNon-accrualloans tototalloans, 1.01 % 1.05 % 0.64 % 0.61 % 0.51 % 1.01 % 0.51 %

excludingPPP loans^(6)Non-accrualloans tototalloans, 0.70 % 0.71 % 0.64 % 0.61 % 0.51 % 0.70 % 0.51 %

excludingPCD and PPPloans^(6)NPLs to 0.95 % 1.09 % 0.68 % 0.64 % 0.53 % 0.95 % 0.53 %total loansNPLs tototalloans, 1.04 % 1.09 % 0.68 % 0.64 % 0.53 % 1.04 % 0.53 %excluding PPPloans^(6)NPLs tototalloans,excluding 0.72 % 0.75 % 0.68 % 0.64 % 0.53 % 0.72 % 0.53 % PCD andPPP loans^(6)NPAs tototal loansplus 1.09 % 1.24 % 0.85 % 0.85 % 0.77 % 1.09 % 0.77 %

foreclosedassetsNPAs tototal loansplus

foreclosed 1.18 % 1.24 % 0.85 % 0.85 % 0.77 % 1.18 % 0.77 %assets,excluding PPPloans^(6)NPAs tototal loansplus

foreclosed 0.87 % 0.91 % 0.85 % 0.85 % 0.77 % 0.87 % 0.77 %assets,excluding PCD andPPP loans^(6)NPAs totangiblecommon 9.38 % 10.07 % 6.79 % 6.93 % 6.28 % 9.38 % 6.28 %equity plus ACLNon-accrualloans to 0.66 % 0.74 % 0.46 % 0.43 % 0.36 % 0.66 % 0.36 %totalassetsAllowance for credit losses and net charge-off ratios ACL tototal loans 1.66 % 1.62 % 0.85 % 0.86 % 0.85 % 1.66 % 0.85 %^(7)ACL tonon-accrual 177.98 % 154.64 % 132.76 % 141.88 % 168.45 % 263.36 % 168.45 %loansACL to NPLs 173.93 % 149.49 % 125.15 % 133.85 % 161.79 % 254.59 % 161.79 %NCOs toaverage 0.36 % 0.37 % 0.33 % 0.29 % 0.31 % 0.36 % 0.32 %loans^(2)NCOs toaverageloans, 0.38 % 0.37 % 0.33 % 0.29 % 0.31 % 0.38 % 0.32 %excludingPPP loans^(2)NCOs toaverageloans, 0.27 % 0.32 % 0.33 % 0.29 % 0.31 % 0.30 % 0.32 %excludingPCD and PPPloans^(2)

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 expected to be forgiven if employee retention criteria are met and funds are used for eligible expenses. As a result, no allowance for credit losses is associated with these loans.(7)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 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.

First Midwest Bancorp, Inc. Non-GAAP Reconciliations (Unaudited) (Amounts in thousands, except per share data) Quarters Ended Six Months Ended June 30, March 31, December 31, September June 30, June 30, June 30, 30, 2020 2020 2019 2019 2019 2020 2019EPS Net income $ 19,064 $ 19,606 $ 52,121 $ 54,545 $ 47,014 $ 38,670 $ 93,072 Dividends and accretion on (1,037 ) ? ? ? ? (1,037 ) ? preferred stockNet income applicable tonon- (187 ) (192 ) (424 ) (465 ) (389 ) (379 ) (792 ) vested restricted sharesNet income applicable to 17,840 19,414 51,697 54,080 46,625 37,254 92,280 common sharesAdjustments to net income: Acquisition and integration 5,249 5,472 5,258 3,397 9,514 10,721 13,205 related expensesTax effect of acquisitionand (1,312 ) (1,368 ) (1,315 ) (849 ) (2,379 ) (2,680 ) (3,301 ) integration relatedexpensesNet securities losses ? 1,005 ? ? ? 1,005 ? Tax effect of netsecurities ? (251 ) ? ? ? (251 ) ? lossesDelivering Excellence ? ? 223 234 442 ? 700 implementation costsTax effect of Delivering Excellence implementation ? ? (56 ) (59 ) (111 ) ? (175 ) costsTotal adjustments to net 3,937 4,858 4,110 2,723 7,466 8,795 10,429 income, net of taxNet income applicable to common shares, $ 21,777 $ 24,272 $ 55,807 $ 56,803 $ 54,091 $ 46,049 $ 102,709 adjusted^(1)Weighted-average common shares outstanding:Weighted-average common shares outstanding 113,145 109,922 109,059 109,281 108,467 111,533 107,126 (basic)Dilutive effect of common 191 443 519 381 ? 339 ? stock equivalentsWeighted-average diluted common shares 113,336 110,365 109,578 109,662 108,467 111,872 107,126 outstandingBasic EPS $ 0.16 $ 0.18 $ 0.47 $ 0.49 $ 0.43 $ 0.33 $ 0.86 Diluted EPS $ 0.16 $ 0.18 $ 0.47 $ 0.49 $ 0.43 $ 0.33 $ 0.86 Diluted EPS, adjusted^(1) $ 0.19 $ 0.22 $ 0.51 $ 0.52 $ 0.50 $ 0.41 $ 0.96 Anti-dilutive shares notincluded in the computation of ? ? ? ? ? ? ? diluted EPSDividend Payout Ratio Dividends declared per $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.28 $ 0.26 shareDividend payout ratio 87.50 % 77.78 % 29.79 % 28.57 % 32.56 % 84.85 % 30.23 %Dividend payout ratio, 73.68 % 63.64 % 27.45 % 26.92 % 28.00 % 68.29 % 27.08 %adjusted^(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 Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2020 2020 2019 2019 2019 2020 2019Return on Average Common and Tangible Common Equity Net income applicable to $ 17,840 $ 19,414 $ 51,697 $ 54,080 $ 46,625 $ 37,254 $ 92,280 common sharesIntangibles amortization 2,820 2,770 2,744 2,750 2,624 5,590 4,987 Tax effect of intangibles (705 ) (693 ) (686 ) (688 ) (656 ) (1,398 ) (1,247 ) amortizationNet income applicable to common shares, excluding 19,955 21,491 53,755 56,142 48,593 41,446 96,020 intangibles amortizationTotal adjustments to netincome, 3,937 4,858 4,110 2,723 7,466 8,795 10,429 net of tax^(1)Net income applicable to common shares, adjusted^ $ 23,892 $ 26,349 $ 57,865 $ 58,865 $ 56,059 $ 50,241 $ 106,449 (1)Average stockholders'common $ 2,443,212 $ 2,415,157 $ 2,359,197 $ 2,327,279 $ 2,241,569 $ 2,429,184 $ 2,190,210 equityLess: average intangible (934,022 ) (887,600 ) (874,829 ) (877,069 ) (832,263 ) (910,811 ) (817,915 ) assetsAverage tangible common $ 1,509,190 $ 1,527,557 $ 1,484,368 $ 1,450,210 $ 1,409,306 $ 1,518,373 $ 1,372,295 equityReturn on average common 2.94 % 3.23 % 8.69 % 9.22 % 8.34 % 3.08 % 8.50 % equity^(2)Return on average common 3.58 % 4.04 % 9.38 % 9.68 % 9.68 % 3.81 % 9.46 % equity, adjusted^(1)(2)Return on average tangible 5.32 % 5.66 % 14.37 % 15.36 % 13.83 % 5.49 % 14.11 % common equity^(2)Return on average tangible common equity, adjusted^ 6.37 % 6.94 % 15.47 % 16.10 % 15.95 % 6.65 % 15.64 %(1)(2)Return on Average Assets Net income $ 19,064 $ 19,606 $ 52,121 $ 54,545 $ 47,014 $ 38,670 $ 93,072 Total adjustments to netincome, 3,937 4,858 4,110 2,723 7,466 8,795 10,429 net of tax^(1)Net income, adjusted^(1) $ 23,001 $ 24,464 $ 56,231 $ 57,268 $ 54,480 $ 47,465 $ 103,501 Average assets $ 20,868,106 $ 18,404,821 $ 17,889,158 $ 17,699,180 $ 16,740,050 $ 19,636,463 $ 16,206,906 Return on average assets^ 0.37 % 0.43 % 1.16 % 1.22 % 1.13 % 0.40 % 1.16 %(2)Return on average assets, 0.44 % 0.53 % 1.25 % 1.28 % 1.31 % 0.49 % 1.29 % adjusted^(1)(2)Noninterest Expense to Average Assets Noninterest expense $ 120,330 $ 117,331 $ 116,748 $ 108,395 $ 114,142 $ 237,661 $ 216,252 Less: Delivering Excellence ? ? (223 ) (234 ) (442 ) ? (700 ) implementation costsAcquisition and integration (5,249 ) (5,472 ) (5,258 ) (3,397 ) (9,514 ) (10,721 ) (13,205 ) related expensesTotal $ 115,081 $ 111,859 $ 111,267 $ 104,764 $ 104,186 $ 226,940 $ 202,347 Average assets $ 20,868,106 $ 18,404,821 $ 17,889,158 $ 17,699,180 $ 16,740,050 $ 19,636,463 $ 16,206,906 Less: average PPP loans (887,977 ) ? ? ? ? ? ? Average assets, excludingPPP $ 19,980,129 $ 18,404,821 $ 17,889,158 $ 17,699,180 $ 16,740,050 $ 19,636,463 $ 16,206,906 loansNoninterest expense toaverage 2.32 % 2.56 % 2.59 % 2.43 % 2.73 % 2.43 % 2.69 % assets^(2)Noninterest expense,adjusted to average assets, excluding 2.32 % 2.44 % 2.47 % 2.35 % 2.50 % 2.32 % 2.52 %PPP loans^(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 Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2020 2020 2019 2019 2019 2020 2019Efficiency Ratio Calculation Noninterest expense $ 120,330 $ 117,331 $ 116,748 $ 108,395 $ 114,142 $ 237,661 $ 216,252 Less: Net OREO expense (126 ) (420 ) (1,080 ) (381 ) (294 ) (546 ) (975 ) Acquisition andintegration (5,249 ) (5,472 ) (5,258 ) (3,397 ) (9,514 ) (10,721 ) (13,205 ) related expensesDelivering Excellence ? ? (223 ) (234 ) (442 ) ? (700 ) implementation costsTotal $ 114,955 $ 111,439 $ 110,187 $ 104,383 $ 103,892 $ 226,394 $ 201,372 Tax-equivalent netinterest $ 146,389 $ 144,728 $ 149,711 $ 152,019 $ 151,492 $ 291,117 $ 291,624 income^(3)Noninterest income 32,991 39,362 46,496 42,951 38,526 72,353 73,432 Less: net securities ? 1,005 ? ? ? 1,005 ? lossesTotal $ 179,380 $ 185,095 $ 196,207 $ 194,970 $ 190,018 $ 364,475 $ 365,056 Efficiency ratio 64.08 % 60.21 % 56.16 % 53.54 % 54.67 % 62.12 % 55.16 %Pre-Tax, Pre-Provision Earnings Net Income $ 19,064 $ 19,606 $ 52,121 $ 54,545 $ 47,014 $ 38,670 $ 93,072 Income tax expense 6,182 6,468 16,392 18,300 16,191 12,650 31,509 Provision for credit 32,649 39,532 9,594 12,498 11,491 72,181 21,935 lossesPre-Tax, Pre-Provision $ 57,895 $ 65,606 $ 78,107 $ 85,343 $ 74,696 $ 123,501 $ 146,516 EarningsAdjustments to pre-tax,pre- provision earnings:Net securities losses ? 1,005 ? ? ? 1,005 ? A&I related expenses 5,249 5,472 5,258 3,397 9,514 10,721 13,205 Delivering Excellence implementation costs^ ? ? 223 234 442 ? 700 (5)Total adjustments 5,249 6,477 5,481 3,631 9,956 11,726 13,905 Pre-Tax, Pre-Provision $ 63,144 $ 72,083 $ 83,588 $ 88,974 $ 84,652 $ 135,227 $ 160,421 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 June 30, March 31, December 31, September 30, June 30, 2020 2020 2019 2019 2019Tangible Common EquityStockholders'equity, $ 2,425,711 $ 2,435,707 $ 2,370,793 $ 2,339,599 $ 2,300,573 commonLess:goodwill andother (940,182 ) (935,241 ) (875,262 ) (876,219 ) (878,802 ) intangibleassetsTangible 1,485,529 1,500,466 1,495,531 1,463,380 1,421,771 common equityLess: AOCI (28,727 ) (35,323 ) 1,954 (6,738 ) 2,810 Tangiblecommonequity, $ 1,456,802 $ 1,465,143 $ 1,497,485 $ 1,456,642 $ 1,424,581 excludingAOCITotal assets $ 21,244,881 $ 19,753,300 $ 17,850,397 $ 18,013,454 $ 17,462,233 Less:goodwill andother (940,182 ) (935,241 ) (875,262 ) (876,219 ) (878,802 ) intangibleassetsTangible $ 20,304,699 $ 18,818,059 $ 16,975,135 $ 17,137,235 $ 16,583,431 assetsLess: PPP (1,179,403 ) ? ? ? ? loansTangibleassets, $ 19,125,296 $ 18,818,059 $ 16,975,135 $ 17,137,235 $ 16,583,431 excluding PPPloansRisk-weighted $ 15,458,361 $ 15,573,684 $ 14,225,444 $ 14,294,011 $ 14,056,482 assetsTangiblecommon equity 7.32 % 7.97 % 8.81 % 8.54 % 8.57 %to tangibleassetsTangiblecommon equityto tangible 7.77 % 7.97 % 8.81 % 8.54 % 8.57 %assets,excluding PPPloansTangiblecommonequity,excluding 7.17 % 7.79 % 8.82 % 8.50 % 8.59 %AOCI, totangibleassetsTangiblecommonequity,excludingAOCI, to 7.62 % 7.79 % 8.82 % 8.50 % 8.59 %tangibleassets, excludingPPP loansTangiblecommon equityto 9.61 % 9.63 % 10.51 % 10.24 % 10.11 %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%.