First Midwest Bancorp, Inc. Announces Fourth Quarter Loss Per Share of $0.11, Net of a Noncash Impairment Charge of $0.67

ITASCA, IL--(Marketwire - January 23, 2008) - First Midwest Bancorp, Inc. (NASDAQ: FMBI)

FOURTH QUARTER PERFORMANCE HIGHLIGHTS:

--  Improved Loan Growth Continues Recent Trend
    
--  Credit Costs Below Record-Breaking Year
    
--  Fee Income Strong and Growing
    
--  Staff Reconciled For New Sales Challenges
    

Fourth Quarter Synopsis:

First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (NASDAQ: FMBI), the holding company of First Midwest Bank, today reported results of operations and financial condition for fourth quarter and full year 2007. First Midwest Chairman and Chief Executive Officer, John M. O'Meara reported, "The Company's net income for full year 2007 was $80.2 million, which is net of a $32.5 million after-tax noncash charge to earnings associated with the impairment of the Company's asset-backed collateralized debt securities portfolio. This compares to $117.2 million for full year 2006. The Company reported a loss of $0.11 per diluted share for fourth quarter 2007 and earnings of $1.62 per diluted share for full year 2007, as compared to $0.63 per diluted share for fourth quarter 2006 and $2.37 per diluted share for full year 2006. The impairment charge reduced fourth quarter and full year 2007 diluted earnings per share by $0.67 and $0.65, respectively. Return on average equity was 10.7% for full year 2007 and 16.9% for full year 2006. Return on average assets was 1.0% and 1.4% for full year 2007 and 2006, respectively.

For additional information regarding the noncash impairment charge, one should refer to the 8-K filing dated January 22, 2008.

Exclusive of the impairment charge, earnings per share performance for the current quarter amounted to $0.56 as compared to $0.55 in third quarter 2007. Linked quarter performance was impacted by approximately $621,000, or $0.01 per diluted share, in severance expense associated with targeted staff reductions. Fourth quarter 2007 performance, in comparison to the prior quarter, further reflected the combined impact of seasonal changes in our funding mix and reductions in the Federal Reserve's targeted discount rate, which saw net interest margin decline by 10 basis points."

O'Meara further commented, "Performance in the fourth quarter evidences our response to the industry-wide challenges present in the marketplace, which included challenging credit markets and continued pressure on loan yields and deposit pricing. Expansion of loan totals remain on trend, credit costs remain controlled and lower than 2006. Fee income for 2007 grew 8.6% as compared to the prior year, primarily due to stronger service charges and trust revenues. Rationalization of our staffing levels should improve our competitiveness. First Midwest's priorities will remain focused on the long-term by continuing to execute our needs-based selling approach, protecting our capital, maintaining liquidity, and taking those actions necessary to generate sustainable earnings growth, including strategic additions to our staff and fee generating businesses."

Balance Sheet Discussion:

Loans outstanding at December 31, 2007 were up $32.2 million from September 30, 2007. The increase was due primarily to growth in commercial real estate and construction loans. Loans outstanding declined $45.3 million from December 31, 2006. The net year-over-year decline reflects the combined impact of participation loan payoffs and rapid prepayment of multifamily loan portfolios, which occurred primarily in the first half of 2007, as well as the continued paydown of the Company's indirect auto loan portfolio.

Fourth quarter 2007 average transaction deposit balances decreased $51.1 million from third quarter 2007 due primarily to the seasonal decline in public fund and commercial NOW deposits. Average annual transaction deposit balances grew $72.0 million from 2006, primarily due to growth in savings deposits.

Asset Quality Performance:

Loan charge-offs as a percentage of average loans for fourth quarter and full year 2007 were 0.13% and 0.16%, respectively, compared to 0.12% for third quarter 2007 and 0.30% and 0.21% for fourth quarter and full year 2006, respectively. Nonperforming assets, including ninety-day past due loans totaled $45.9 million, or 0.92% of loans plus foreclosed real estate, at December 31, 2007, compared to $38.2 million, or 0.77%, at September 30, 2007 and $31.7 million, or 0.63%, at December 31, 2006. Increases in ninety-day past due credits were concentrated in a small number of well-secured deals. Loan valuation reserves, as a percentage of total loans, stood at 1.25%, unchanged from September 30, 2007 and year-end 2006.

Margin Performance:

Net interest margin for fourth quarter 2007 stood at 3.53%, compared with 3.63% for third quarter 2007 and 3.57% for fourth quarter 2006, and represents the first decline since fourth quarter 2006. The decline from third quarter 2007 was due primarily to reductions in the Federal Reserve's targeted discount rate during fourth quarter 2007. Given the Company's asset and liability profile, such changes impact the yield on loans more quickly than the Company's cost of funding. During fourth quarter 2007, the weighted average yield on interest-earning assets declined 24 basis points, while the weighted average rate on interest-bearing liabilities declined 15 basis points from third quarter 2007. Depending upon future changes by the Federal Reserve, the Company expects its margin to recover in 2008 as it adjusts its cost of funds through rate reductions and changes its mix of assets and funding.

Fee-based Revenues:

Fee-based revenues for fourth quarter and full year 2007 increased 8.6% and 12.0%, respectively, from the same periods in 2006. The increases for both periods were led by double digit growth in service charges on deposits, trust fees, and annuity sales.

Operating Efficiency:

The efficiency ratio for fourth quarter 2007 was 53.9%, compared to 51.9% for third quarter 2007 and 49.6% for fourth quarter 2006. For full year 2007, the efficiency ratio was 52.5% compared to 50.5% for full year 2006. As part of the Company's continuing effort to improve productivity, it reduced future operating expenses during fourth quarter 2007, primarily by consolidating certain support areas, resulting in a $621,000 charge for severance-related costs.

Capital Analysis and Projection:

First Midwest's capital position continues to exceed all of the regulatory minimum levels to be considered a "well capitalized institution" by the Federal Reserve System. As of December 31, 2007, First Midwest's Total Risk Based Capital ratio was 11.7%, compared to 12.2% as of September 30, 2007 and December 31, 2006. Its Tier 1 Risk Based Capital ratio was 9.1%, compared to 9.6% at September 30, 2007 and December 31, 2006. First Midwest's tangible capital ratio, which represents the ratio of stockholders' equity to total assets excluding intangible assets, stood at 5.6% compared to 5.8% at September 30, 2007 and 5.6% at December 31, 2006.

During fourth quarter 2007, 296,961 shares were repurchased in accordance with the Company's share repurchase program. During fourth quarter 2007, dividends of $0.31 per share were declared, representing a 5.1% increase from $0.295 declared in third quarter 2007.

Tax Discussion:

In August, the State of Illinois enacted new legislation that will affect the apportionment of income to Illinois. As a result of this legislation, the Company adjusted the value of certain state deferred tax assets. The adjustment resulted in an after-tax $1.4 million benefit to fourth quarter 2007 net income.

About First Midwest:

First Midwest is the premier relationship-based banking franchise in the growing Chicagoland banking market. As one of the Chicago metropolitan area's largest independent bank holding companies, First Midwest provides the full range of both business and retail banking and trust and investment management services through 102 offices located in 63 communities, primarily in metropolitan Chicago. First Midwest was recently recognized by the Alfred P. Sloan Awards for Business Excellence in Workforce Flexibility in the greater Chicago Area.

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts but instead represent only the Company's beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that actual results and the Company's financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect the Company's future results, see "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and other reports filed with the Securities and Exchange Commission. Forward-looking statements represent management's best judgment as of the date hereof based on currently available information. Except as required by law, the Company undertakes no duty to update the contents of this press release after the date hereof.

Conference Call

A conference call to discuss the Company's results, outlook and related matters will be held on Wednesday, January 23rd, at 10:00 am (ET). Members of the public who would like to listen to the conference call should dial 1-800-659-1942 (U.S. domestic) or 1-617-614-2710 (international) and enter passcode number 988 06 980. The number should be dialed at least 10 minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast through the Investor Relations section of the Company's web site, www.firstmidwest.com/aboutinvestor_overview.asp. There is no charge to access the call. For those unable to listen to the live broadcast, a replay will be available on the Company's web site or by dialing 1-888-286-8010 (U.S. domestic) or 1-617-801-6888 (international) passcode number 380 84 383, beginning approximately one hour after the event through 11:59 pm (ET) on January 30, 2008. 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.

Accompanying Financial Statements and Tables

Accompanying this press release is the following unaudited financial information:

--  Operating Highlights, Balance Sheet Highlights and Stock Performance
    Data (1 page)
--  Condensed Consolidated Statements of Condition (1 page)
--  Condensed Consolidated Statements of Income (1 page)
--  Selected Quarterly Data and Asset Quality (1 page)
    

Press Release and Additional Information Available on Website

This press release, the accompanying financial statements and tables, and certain additional unaudited Selected Financial Information (totaling 3 pages) are available through the "Investor Relations" section of First Midwest's website at www.firstmidwest.com.

First Midwest Bancorp, Inc.            Press Release Dated January 23, 2008


Operating Highlights

Unaudited                    Quarters Ended               Years Ended
(Amounts in         ------------------------------  ----------------------
 thousands except    Dec. 31,  Sept. 30,  Dec. 31,    Dec. 31,    Dec. 31,
 per share data)       2007      2007      2006        2007        2006
                    ---------- -------- ----------  ----------- ----------
Net income           $ (5,418) $27,237  $   31,528  $   80,159  $  117,246
Diluted earnings per
 share               $  (0.11) $  0.55  $     0.63  $     1.62  $     2.37
Return on average
 equity                 (2.91%)  14.57%      16.40%      10.69%      16.87%
Return on average
 assets                 (0.27%)   1.35%       1.47%       0.99%       1.42%
Net interest margin      3.53%    3.63%       3.57%       3.58%       3.67%
Efficiency ratio        53.87%   51.87%      49.56%      52.50%      50.53%



Balance Sheet Highlights

Unaudited                                     Ending Balances As Of
                                        ----------------------------------
(Amounts in thousands except per         Dec. 31,    Sept. 30,   Dec. 31,
 share data)                               2007        2007        2006
                                        ----------  ----------  ----------
Total assets                            $8,091,518  $7,884,345  $8,441,526
Total loans                              4,963,672   4,931,472   5,008,944
Total deposits                           5,778,861   5,834,175   6,167,216
Stockholders' equity                       723,975     727,928     751,014
Book value per share                    $    14.94  $    14.94  $    15.01
Shares outstanding                          48,453      48,735      50,025



Stock Performance Data

Unaudited                                         Quarters Ended
                                        ----------------------------------
                                         Dec. 31,    Sept. 30,   Dec. 31,
                                           2007        2007        2006
                                        ----------  ----------  ----------
Market Price:
   Quarter End                          $    30.60  $    34.16  $    38.68
   High                                 $    36.50  $    36.62  $    39.52
   Low                                  $    29.67  $    31.87  $    36.62
Quarter end price to
 book value                                  2.0 x       2.3 x       2.6 x
Quarter end price to
 2007 earnings                              13.5 x         N/A         N/A
Dividends declared
 per share                              $    0.310  $    0.295  $    0.295
                                        ----------  ----------  ----------




First Midwest Bancorp, Inc.            Press Release Dated January 23, 2008


Condensed Consolidated Statements of Condition

Unaudited                                               December 31,
                                                  ------------------------
(Amounts in thousands)                                2007         2006
                                                  -----------  -----------

Assets
Cash and due from banks                           $   193,792  $   209,825
Funds sold and other short-term investments             1,439        9,841
Trading account securities                             18,352       15,878
Securities available for sale                       2,134,813    2,442,674
Securities held to maturity, at amortized cost         97,671       91,380
Loans                                               4,963,672    5,008,944
Reserve for loan losses                               (61,800)     (62,370)
                                                  -----------  -----------

  Net loans                                         4,901,872    4,946,574
                                                  -----------  -----------

Premises, furniture, and equipment                    125,828      126,677
Investment in corporate owned life insurance          203,535      196,598
Goodwill and other intangible assets                  288,235      292,658
Accrued interest receivable and other assets          125,981      109,421
                                                  -----------  -----------

  Total assets                                    $ 8,091,518  $ 8,441,526
                                                  -----------  -----------

Liabilities and Stockholders' Equity
Deposits                                          $ 5,778,861  $ 6,167,216
Borrowed funds                                      1,264,228    1,182,268
Subordinated debt                                     230,082      228,674
Accrued interest payable and other liabilities         94,372      112,354
                                                  -----------  -----------

  Total liabilities                                 7,367,543    7,690,512
                                                  -----------  -----------

Common stock                                              613          613
Additional paid-in capital                            207,851      205,044
Retained earnings                                     844,972      823,787
Accumulated other comprehensive (loss)                (11,727)     (15,288)
Treasury stock, at cost                              (317,734)    (263,142)
                                                  -----------  -----------

  Total stockholders' equity                          723,975      751,014
                                                  -----------  -----------

  Total liabilities and stockholders' equity      $ 8,091,518  $ 8,441,526
                                                  -----------  -----------




First Midwest Bancorp, Inc.            Press Release Dated January 23, 2008


Condensed Consolidated
 Statements of Income              Quarters Ended         Years Ended
Unaudited                           December 31,          December 31,
                                --------------------- ---------------------
(Amounts in thousands except
 per share data)                  2007       2006       2007       2006
                                ---------  ---------- ---------  ----------

Interest Income
Loans                           $  87,998  $   94,183 $ 365,370  $  352,939
Securities                         26,510      31,076   110,864     122,909
Other                                 103         138       727         561
                                ---------  ---------- ---------  ----------

  Total interest income           114,611     125,397   476,961     476,409
                                ---------  ---------- ---------  ----------

Interest Expense
Deposits                           40,598      42,769   166,267     148,118
Borrowed funds                     12,148      16,105    55,540      62,974
Subordinated debt                   3,767       3,760    15,025      13,458
                                ---------  ---------- ---------  ----------

  Total interest expense           56,513      62,634   236,832     224,550
                                ---------  ---------- ---------  ----------

  Net interest income              58,098      62,763   240,129     251,859
Provision for loan losses           2,042       3,865     7,233      10,229
                                ---------  ---------- ---------  ----------

  Net interest income after
   provision for loan losses       56,056      58,898   232,896     241,630
                                ---------  ---------- ---------  ----------

Noninterest Income
Service charges on deposit
 accounts                          11,986      10,594    45,015      40,036
Trust and investment management
 fees                               4,061       3,666    15,701      14,269
Other service charges,
 commissions, and fees              5,324       5,362    22,183      20,135
Card-based fees                     3,979       3,712    15,925      13,777
                                ---------  ---------- ---------  ----------

  Subtotal, fee-based revenues     25,350      23,334    98,824      88,217
                                ---------  ---------- ---------  ----------
Corporate owned life insurance
 income                             2,117       1,966     8,033       7,616
Security (losses) gains, net      (50,041)      3,371   (50,801)      4,269
Other                                 109         982     4,197       3,181
                                ---------  ---------- ---------  ----------

  Total noninterest income        (22,465)     29,653    60,253     103,283
                                ---------  ---------- ---------  ----------

Noninterest Expense
Salaries and employee benefits     27,686      26,507   111,598     106,201
Net occupancy expense               5,480       5,007    22,054      20,153
Equipment expense                   2,744       2,740    10,540      10,227
Technology and related costs        1,760       1,532     7,084       6,584
Other                              12,594      12,009    47,861      49,450
                                ---------  ---------- ---------  ----------

  Total noninterest expense        50,264      47,795   199,137     192,615
                                ---------  ---------- ---------  ----------

Income before taxes               (16,673)     40,756    94,012     152,298
Income tax expense                (11,255)      9,228    13,853      35,052
                                ---------  ---------- ---------  ----------

  Net (Loss) Income             $  (5,418) $   31,528 $  80,159  $  117,246
                                ---------  ---------- ---------  ----------

  Diluted Earnings Per Share    $   (0.11) $     0.63 $    1.62  $     2.37
                                ---------  ---------- ---------  ----------

  Dividends Declared Per Share  $   0.310  $    0.295 $   1.195  $    1.120
                                ---------  ---------- ---------  ----------

  Weighted Average Diluted
   Shares Outstanding              48,754      50,392    49,622      49,469
                                ---------  ---------- ---------  ----------





First Midwest Bancorp, Inc.           Press Release Dated January 23, 2008


Selected Quarterly Data

Unaudited         Years Ended                 Quarters Ended
              ------------------ -----------------------------------------
(Amounts in
 thousands
 except per
 share data)   12/31/07 12/31/06 12/31/07 9/30/07 6/30/07 3/31/07 12/31/06
              --------- -------- -------- ------- ------- ------- --------
Net interest
 income        $240,129 $251,859 $ 58,098 $60,697 $60,964 $60,370 $ 62,763
Provision for
 loan losses      7,233   10,229    2,042     470   1,761   2,960    3,865
Noninterest
 income          60,253  103,283  (22,465) 23,395  30,623  28,700   29,653
Noninterest
 expense        199,137  192,615   50,264  49,981  50,737  48,155   47,795
Net income       80,159  117,246   (5,418) 27,237  29,311  29,029   31,528
Diluted
 earnings per
 share         $   1.62 $   2.37 $  (0.11)$  0.55 $  0.59 $  0.58 $   0.63
Return on
 average equity   10.69%   16.87%  (2.91%)  14.57%  15.47%  15.48%   16.40%
Return on
 average assets    0.99%    1.42%  (0.27%)   1.35%   1.44%   1.42%    1.47%
Net interest
 margin            3.58%    3.67%    3.53%   3.63%   3.61%   3.53%    3.57%
Efficiency
 ratio            52.50%   50.53%   53.87%  51.87%  52.13%  52.19%   49.56%
              --------- -------- -------- ------- ------- ------- --------

Period end
 shares
 outstanding     48,453   50,025   48,453  48,735  49,494  49,747   50,025
Book value per
 share         $  14.94 $  15.01 $  14.94 $ 14.94 $ 14.97 $ 15.16 $  15.01
Dividends
 declared per
 share         $  1.195 $  1.120 $  0.310 $ 0.295 $ 0.295 $ 0.295 $  0.295
              --------- -------- -------- ------- ------- ------- --------



Asset Quality

Unaudited         Years Ended                 Quarters Ended
              ------------------ -----------------------------------------
(Amounts in
 thousands)    12/31/07 12/31/06 12/31/07 9/30/07 6/30/07 3/31/07 12/31/06
              --------- -------- -------- ------- ------- ------- --------
Nonaccrual
 loans         $ 18,447 $ 16,209 $ 18,447 $12,771 $14,927 $17,582 $ 16,209
Restructured
 loans              280        -      280       -       -       -        -
              --------- -------- -------- ------- ------- ------- --------

  Total
   nonperforming
   loans         18,727   16,209   18,727  12,771  14,927  17,582   16,209
              --------- -------- -------- ------- ------- ------- --------

Foreclosed real
 estate           6,053    2,727    6,053   4,032   3,683   3,195    2,727
Loans past due
 90 days and
 still accruing  21,149   12,810   21,149  21,421  19,633  15,603   12,810
              --------- -------- -------- ------- ------- ------- --------

Nonperforming
 loans to loans    0.38%    0.32%    0.38%   0.26%   0.30%   0.35%    0.32%
Nonperforming
 assets to loans
 plus foreclosed
 real estate       0.50%    0.38%    0.50%   0.34%   0.38%   0.42%    0.38%
Nonperforming
 assets plus
 loans past due
 90 days to
 loans plus
 foreclosed
 real estate       0.92%    0.63%    0.92%   0.77%   0.78%   0.73%    0.63%
Reserve for
 loan losses to
 loans             1.25%    1.25%    1.25%   1.25%   1.27%   1.25%    1.25%
Reserve for
 loan losses to
 nonperforming
 loans              330%     385%     330%    481%    418%    355%     385%
              --------- -------- -------- ------- ------- ------- --------

Provision for
 loan losses   $  7,233 $ 10,229 $  2,042 $   470 $ 1,761 $ 2,960 $  3,865
Net loan
 charge-offs      7,803   10,187    1,654   1,449   1,770   2,930    3,865
              --------- -------- -------- ------- ------- ------- --------

Net loan
 charge-offs to
 average loans     0.16%    0.21%    0.13%   0.12%   0.14%   0.24%    0.30%
              --------- -------- -------- ------- ------- ------- --------

Contact Information: Contact: Paul F. Clemens EVP, Chief Financial Officer (630) 875-7347 www.firstmidwest.com First Midwest Bancorp One Pierce Place, Suite 1500 Itasca, Illinois 60143 (630) 875-7450