First Midwest Reports Strong Third Quarter Results

ITASCA, IL -- (MARKET WIRE) -- October 25, 2006 --

3rd QUARTER 2006 HIGHLIGHTS:

--  Net Income of $31.2 million, Up 15.5% vs. 3Q05
    
--  EPS of $0.62, Up 5.1% vs. 3Q05
    
--  Net Interest Margin of 3.69% vs. 3.70% for 2Q06
    
--  Fee-Based Revenues Up 3.3%, or 13.2% Annualized vs. 2Q06
    

First Midwest Bancorp, Inc. ("First Midwest") (NASDAQ: FMBI) today reported net income for third quarter ended September 30, 2006 of $31.2 million, up 15.5% as compared to $27.0 million in third quarter 2005. For the first nine months of 2006, net income was $85.7 million, up 8.9% as compared to $78.7 million for the same period in 2005.

Operating results for the third quarter and first nine months of 2006 reflect stock option expense attributable to the adoption of FAS 123R of $737 thousand, or $450 thousand after tax, and $2.1 million, or $1.3 million after tax, respectively. In addition, performance for the first nine months of 2006 was negatively impacted by integration and related costs totaling $3.0 million, or $1.8 million after tax, recorded in the second quarter specific to the Bank Calumet acquisition.

Earnings per diluted share was $0.62 for third quarter ended September 30, 2006 and $1.74 for the first nine months of 2006, as compared to $0.59 for third quarter 2005 and $1.71 for the first nine months of 2005. Earnings per diluted share for both third quarter 2006 and the first nine months of 2006 were negatively impacted by the March 9, 2006 issuance of 4.4 million common shares in connection with the acquisition of Bank Calumet. Operating results include the impact of expensing stock options of $0.01 per diluted share in third quarter 2006 and $0.03 per diluted share in the first nine months of 2006. In addition, performance for the first nine months of 2006 was negatively impacted by $0.04 per diluted share, reflecting integration and related costs recorded in the second quarter specific to the Bank Calumet acquisition.

Third quarter 2006 performance resulted in an annualized return on average assets of 1.44%, as compared to 1.51% for third quarter 2005, and an annualized return on average equity of 17.1%, as compared to 19.8% for third quarter 2005.

"Third quarter performance reflects our ongoing efforts to build a solid foundation for future performance," said First Midwest President and Chief Executive Officer John O'Meara. "The integration of Bank Calumet into our organization continues on pace, with a focus on maximizing the sales and marketing opportunities within the Northwest Indiana marketplace. From a balance sheet perspective, plans to reduce the size of our securities portfolio are on track while corporate lending continues to show solid growth. Retail business remains stable in a very competitive operating environment. Finally, credit costs remain low, asset quality remains controlled, and our fee-based revenues continue to expand."

Earnings Guidance

O'Meara concluded, "Competition for both loans and deposits in the marketplace remains intense. Pricing pressures resulting from this competition combined with deposit balances shifting towards higher-yielding products and the persistence of a flat yield curve, continue to pressure margin performance across the industry. As we navigate the remainder of 2006, we expect the negative impact of margin contraction to be largely offset by solid corporate loan growth, low credit costs, increased fee-based revenues, and diligent expense management. Based on year-to-date results and our expectations for the fourth quarter of 2006, we currently expect full year diluted earnings per share to be in the range of $2.37 to $2.41."

Net Interest Margin

First Midwest's net interest income was $65.7 million for third quarter 2006, up 9.5% from $60.0 million for third quarter 2005. This increase was driven by a $1.2 billion increase in interest-earning assets relative to third quarter 2005, which was primarily due to the acquisition of Bank Calumet on March 31, 2006. Net interest margin for third quarter 2006 was 3.69%, stable in comparison to 3.70% in second quarter 2006, and reflected the offsetting impact of higher loan and securities yields and increased deposit and borrowing costs.

Increases in Loan Growth and Funding

Total loans grew to $5.1 billion as of September 30, 2006, an increase of 18.2% from September 30, 2005. This growth was due primarily to the addition of $676.4 million of loans acquired as part of the acquisition of Bank Calumet. Excluding indirect consumer lending, total loans as of September 30, 2006 increased 1.0%, or 4.0% annualized, in comparison to June 30, 2006. Corporate loans increased 1.7%, or 6.8% annualized, from June 30, 2006 reflecting growth in commercial, agricultural, and real estate construction lending.

Average deposits for third quarter 2006 totaled $6.2 billion, an increase of 20.2%, in comparison to third quarter 2005, primarily as a result of deposits obtained through the acquisition of Bank Calumet. In comparison to second quarter 2006, average deposits for third quarter 2006 were relatively unchanged, as growth in time deposit balances were offset by lower transactional deposit balances.

Noninterest Income and Expense

First Midwest's total noninterest income for third quarter 2006 was $27.0 million, up 32.4% from $20.4 million in third quarter 2005, primarily due to stronger fee-based revenues and higher revenue from corporate owned life insurance. For third quarter 2006, fee-based revenues totaled $23.9 million, up $5.4 million, or 29.2%, as compared to third quarter 2005, with approximately $3.4 million of this increase attributable to the acquisition of Bank Calumet, and the remainder reflecting higher service charges on deposit accounts and card-based revenues. Comparing sequential quarters, noninterest income was up 6.8% from second quarter 2006, primarily as the result of an increase in fee-based revenues. For third quarter 2006, fee-based revenues increased $771,000, or 3.3%, as compared to second quarter 2006, reflecting higher service charges, mortgage revenue, merchant processing and check printing fees, and trust income.

Total noninterest expense for third quarter 2006 was $49.1 million, up from $42.1 million in third quarter 2005. The majority of this increase is attributable to higher salaries, employee benefits, professional services, and occupancy expenses resulting from the acquisition of Bank Calumet.

First Midwest's efficiency ratio was 49.1% for third quarter 2006, as compared to 49.4% for third quarter 2005.

Stable Credit Quality

First Midwest's overall credit quality remained solid and relatively stable during third quarter 2006, with nonperforming assets as of September 30, 2006 totaling $21.5 million as compared to $19.6 million at June 30, 2006. Net charge-offs for third quarter 2006 remained low representing 0.21% of average loans, as compared to 0.16% for second quarter 2006. As of September 30, 2006, nonperforming assets, including foreclosed real estate, represented 0.42% of total loans plus foreclosed real estate, as compared to 0.39% as of June 30, 2006. As of September 30, 2006, the reserve for loan losses stood at 1.23% of total loans, as compared to 1.24% as of June 30, 2006, representing 357% of nonperforming loans.

Solid Capital Management

As of September 30, 2006, First Midwest's Total Risk Based Capital ratio was 11.6%, compared to 11.5% as of September 30, 2005. The Tier 1 Risk Based Capital ratio was 9.1%, compared to 10.4% as of September 30, 2005. First Midwest's Tier 1 Leverage Ratio was 7.0% compared to 8.2% as of September 30, 2005. First Midwest's tangible capital ratio, which represents the ratio of stockholders' equity to total assets excluding intangible assets, stood at 5.44%, down from 6.21% as of September 30, 2005. This decline was primarily due to an increase in goodwill and other intangible assets resulting from the acquisition of Bank Calumet on March 31, 2006. First Midwest has elected to suspend its stock repurchase program as it looks to rebuild tangible capital following the acquisition of Bank Calumet.

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 101 offices located in 62 communities, primarily in metropolitan Chicago. First Midwest was the only bank named by Chicago magazine as one of the 25 best places to work in Chicago.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Act of 1995: Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning specific factors described in First Midwest Bancorp's 2005 Form 10-K and other filings with the U.S. Securities and Exchange Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. First Midwest does not intend to update this information and disclaims any legal obligation to the contrary. Historical information is not necessarily indicative of future performance.

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 Data (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 October 25, 2006


Operating Highlights
Unaudited                        Quarters Ended         Nine Months Ended
                          ----------------------------  ------------------
(Amounts in thousands     Sept. 30, June 30,  Sept. 30, Sept. 30, Sept. 30,
 except per share data)     2006      2006      2005      2006      2005
                          --------  --------  --------  --------  --------
Net income                $ 31,215  $ 28,735  $ 27,030  $ 85,718  $ 78,747
Diluted earnings per
 share                    $   0.62  $   0.57  $   0.59  $   1.74  $   1.71
Return on average equity     17.09%    16.50%    19.76%    17.05%    19.59%
Return on average assets      1.44%     1.33%     1.51%     1.38%     1.51%
Net interest margin           3.69%     3.70%     3.88%     3.71%     3.89%
Efficiency ratio             49.06%    52.12%    49.39%    50.86%    49.33%




Balance Sheet Highlights
Unaudited                                     Quarters Ended
                                  ---------------------------------------
(Amounts in thousands except per   Sept. 30,      June 30,     Sept. 30,
 share data)                          2006          2006          2005
                                  -----------   -----------   -----------
Total assets                      $ 8,596,864   $ 8,692,828   $ 7,201,261
Total loans                         5,069,554     5,041,345     4,287,266
Total deposits                      6,229,390     6,258,185     5,225,847
Stockholders' equity                  745,869       694,938       536,181
Book value per share              $     14.92   $     13.92   $     11.81
Period end shares outstanding          50,001        49,925        45,385




Stock Performance Data
Unaudited                                     Quarters Ended
                                  ---------------------------------------
                                   Sept. 30,      June 30,     Sept. 30,
                                      2006          2006          2005
                                  -----------   -----------   -----------
Market Price:
   Quarter End                    $     37.89   $     37.08   $     37.24
   High                           $     38.89   $     37.52   $     39.18
   Low                            $     34.42   $     34.64   $     34.43
Quarter end price to book value           2.5 x         2.7 x         3.2 x
Quarter end price to consensus
 estimated 2006 earnings                 15.6 x        15.2 x         N/A
Dividends declared per share      $     0.275   $     0.275   $     0.250





First Midwest Bancorp, Inc.          Press Release Dated October 25, 2006


 Condensed Consolidated Statements of Condition
 Unaudited (1)                                          September 30,
                                                  ------------------------
 (Amounts in thousands)                               2006         2005
                                                  -----------  -----------


 Assets
 Cash and due from banks                          $   182,484  $   170,473
 Funds sold and other short-term investments            9,516        8,109
 Securities available for sale                      2,561,962    2,299,250
 Securities held to maturity, at amortized cost        98,745       49,118
 Loans                                              5,069,554    4,287,266
 Reserve for loan losses                              (62,370)     (56,283)
                                                  -----------  -----------

   Net loans                                        5,007,184    4,230,983
                                                  -----------  -----------

 Premises, furniture, and equipment                   122,662       96,292
 Investment in corporate owned life insurance         194,632      155,005
 Goodwill and other intangible assets                 293,839       95,114
 Accrued interest receivable and other assets         125,840       96,917
                                                  -----------  -----------

   Total assets                                   $ 8,596,864  $ 7,201,261
                                                  -----------  -----------




 Liabilities and Stockholders' Equity
 Deposits                                         $ 6,229,390  $ 5,225,847
 Borrowed funds                                     1,295,316    1,221,151
 Long-term debt                                       228,747      130,421
 Accrued interest payable and other liabilities        97,542       87,661
                                                  -----------  -----------

   Total liabilities                                7,850,995    6,665,080
                                                  -----------  -----------

 Common stock                                             613          569
 Additional paid-in capital                           203,860       60,749
 Retained earnings                                    807,039      752,446
 Accumulated other comprehensive loss                  (1,674)      (5,944)
 Treasury stock, at cost                             (263,969)    (271,639)
                                                  -----------  -----------

   Total stockholders' equity                         745,869      536,181
                                                  -----------  -----------

   Total liabilities and stockholders' equity     $ 8,596,864  $ 7,201,261
                                                  -----------  -----------



(1) While unaudited, the Condensed Consolidated Statements of Condition
    have been prepared in accordance with U.S. generally accepted
    accounting principles and, as of September 30, 2005, are derived
    from quarterly financial statements on which Ernst & Young LLP,
    First Midwest's independent external auditor, has rendered a
    Quarterly Review Report. Ernst & Young is currently in the process
    of completing their Quarterly Review Report for the quarter ended
    September 30, 2006.




First Midwest Bancorp, Inc.            Press Release Dated October 25, 2006

Condensed Consolidated Statements
 of Income                            Quarters Ended    Nine Months Ended
Unaudited (1)                         September 30,       September 30,
                                    ------------------- -------------------
(Amounts in thousands except per
 share data)                          2006      2005      2006      2005
                                    --------- --------- --------- ---------
Interest Income
Loans                               $  93,929 $  69,482 $ 258,756 $ 193,422
Securities                             32,374    24,664    91,833    72,992
Other                                     134       111       423       256
                                    --------- --------- --------- ---------
  Total interest income               126,437    94,257   351,012   266,670
                                    --------- --------- --------- ---------
Interest Expense
Deposits                               40,335    23,137   105,349    60,501
Borrowed funds                         16,799     9,049    46,869    23,471
Long-term debt                          3,630     2,090     9,698     6,197
                                    --------- --------- --------- ---------
  Total interest expense               60,764    34,276   161,916    90,169
                                    --------- --------- --------- ---------
  Net interest income                  65,673    59,981   189,096   176,501
Provision for loan losses               2,715     1,200     6,364     6,150
                                    --------- --------- --------- ---------
  Net interest income after
   provision for loan losses           62,958    58,781   182,732   170,351
                                    --------- --------- --------- ---------
Noninterest Income
Service charges on deposit accounts    10,971     7,752    29,442    21,891
Trust and investment management
 fees                                   3,736     3,255    10,603     9,534
Other service charges, commissions,
 and fees                               5,471     4,881    14,773    13,093
Card-based fees                         3,734     2,625    10,065     7,592
                                    --------- --------- --------- ---------
  Subtotal, fee-based revenues         23,912    18,513    64,883    52,110
                                    --------- --------- --------- ---------
Corporate owned life insurance
 income                                 2,206     1,308     5,650     3,726
Security gains, net                       509       292       898     2,837
Other                                     364       270     2,199     1,529
                                    --------- --------- --------- ---------
  Total noninterest income             26,991    20,383    73,630    60,202
                                    --------- --------- --------- ---------
Noninterest Expense
Salaries and employee benefits         27,023    24,276    79,694    71,188
Net occupancy expense                   5,482     3,990    15,146    12,278
Equipment expense                       2,651     2,270     7,487     6,438
Technology and related costs            1,770     1,387     5,052     4,164
Other                                  12,192    10,185    37,441    29,057
                                    --------- --------- --------- ---------
  Total noninterest expense            49,118    42,108   144,820   123,125
                                    --------- --------- --------- ---------
Income before taxes                    40,831    37,056   111,542   107,428
Income tax expense                      9,616    10,026    25,824    28,681
                                    --------- --------- --------- ---------
  Net Income                        $  31,215 $  27,030 $  85,718 $  78,747

                                    --------- --------- --------- ---------
  Diluted Earnings Per Share        $    0.62 $    0.59 $    1.74 $    1.71
                                    --------- --------- --------- ---------
  Dividends Declared Per Share      $   0.275 $   0.250 $   0.825 $    0.74
                                    --------- --------- --------- ---------
  Weighted Average Diluted Shares
   Outstanding                         50,315    45,761    49,158    45,940
                                    --------- --------- --------- ---------


(1) While unaudited, the Condensed Consolidated Statements of Income have
    been prepared in accordance with U.S. generally accepted accounting
    principles and, for the quarter and nine months ended September 30,
    2005, are derived from quarterly financial statements on which Ernst &
    Young LLP, First Midwest's independent external auditor, has rendered a
    Quarterly Review Report.  Ernst & Young is currently in the process of
    completing their Quarterly Review Report for the quarter and nine
    months ended September 30, 2006.




First Midwest Bancorp, Inc.            Press Release Dated October 25, 2006

Selected Quarterly Data

Unaudited                Year to Date
                     --------------------
(Amounts in
 thousands except
 per share data)       9/30/06    9/30/05
                     ---------  ---------
Net interest income  $ 189,096  $ 176,501
Provision for loan
 losses                  6,364      6,150
Noninterest income      73,630     60,202
Noninterest expense    144,820    123,125
Net income              85,718     78,747
Diluted earnings per
 share               $    1.74  $    1.71
Return on average
 equity                  17.05%     19.59%
Return on average
 assets                   1.38%      1.51%
Net interest margin       3.71%      3.89%
Efficiency ratio         50.86%     49.33%
                     ---------  ---------
Period end shares
 outstanding            50,001     45,385
Book value per share $   14.92  $   11.81
Dividends declared
 per share           $   0.825  $   0.740
                     ---------  ---------

Asset Quality Data
Unaudited                 Year to Date
                     --------------------
(Amounts in
 thousands)            9/30/06    9/30/05
                     ---------  ---------
Nonaccrual loans     $  17,459  $  12,206
Foreclosed real
 estate                  4,088      2,711
Loans past due 90
 days and still
 accruing               11,296     10,386
                     ---------  ---------
Nonperforming loans
 to loans                 0.34%      0.28%
Nonperforming
 assets to loans
 plus foreclosed real
 estate                   0.42%      0.35%
Nonperforming assets
 plus loans past due
 90 days to loans
 plus foreclosed
 real estate              0.65%      0.59%
Reserve for loan
 losses to loans          1.23%      1.31%
Reserve for loan
 losses to
 nonperforming loans       357%       461%
                     ---------  ---------
Provision for loan
 losses              $   6,364  $   6,150
Net loan charge-offs     6,322      6,585
                     ---------  ---------
Net loan charge-offs
 to average loans         0.18%      0.21%
                     ---------  ---------

Selected Quarterly
 Data
Unaudited                             Quarters  Ended
                     -----------------------------------------------------
(Amounts in
 thousands except
 per share data)       9/30/06    6/30/06    3/31/05   12/31/05    9/30/05
                     ---------  ---------  ---------  ---------  ---------
Net interest income  $  65,673  $  65,958  $  57,465  $  59,349  $  59,981
Provision for loan
 losses                  2,715      2,059      1,590      2,780      1,200
Noninterest income      26,991     25,267     21,372     14,410     20,383
Noninterest expense     49,118     51,990     43,712     42,578     42,108
Net income              31,215     28,735     25,768     22,630     27,030
Diluted earnings per
 share               $    0.62  $    0.57  $    0.55  $    0.49  $    0.59
Return on average
 equity                  17.09%     16.50%     17.64%     16.58%     19.76%
Return on average
 assets                   1.44%      1.33%      1.44%      1.25%      1.51%
Net interest margin       3.69%      3.70%      3.76%      3.79%      3.88%
Efficiency ratio         49.06%     52.12%     51.51%     49.76%     49.39%
                     ---------  ---------  ---------  ---------  ---------
Period end shares
 outstanding            50,001     49,925     49,866     45,387     45,385
Book value per share $   14.92  $   13.92  $   13.81  $   11.99  $   11.81
Dividends declared
 per share           $   0.275  $   0.275  $   0.275  $   0.275  $   0.250
                     ---------  ---------  ---------  ---------  ---------

Asset Quality Data
Unaudited                             Quarters Ended
                     -----------------------------------------------------
(Amounts in
 thousands)            9/30/06    6/30/06    3/31/06   12/31/05    9/30/05
                     ---------  ---------  ---------  ---------  ---------
Nonaccrual loans     $  17,459  $  15,447  $  17,178  $  11,990  $  12,206
Foreclosed real
 estate                  4,088      4,195      4,033      2,878      2,711
Loans past due 90
 days and still
 accruing               11,296     14,185     10,693      8,958     10,386
                     ---------  ---------  ---------  ---------  ---------
Nonperforming loans
 to loans                 0.34%      0.31%      0.34%      0.28%      0.28%
Nonperforming assets
 to loans plus
 foreclosed real
 estate                   0.42%      0.39%      0.42%      0.35%      0.35%
Nonperforming assets
 plus loans past due
 90 days to loans
 plus foreclosed
 real estate              0.65%      0.67%      0.63%      0.55%      0.59%
Reserve for loan
 losses to loans          1.23%      1.24%      1.24%      1.31%      1.31%
Reserve for loan
 losses to
 nonperforming loans       357%       404%       363%       470%       461%
                     ---------  ---------  ---------  ---------  ---------
Provision for loan
 losses              $   2,715  $   2,059  $   1,590  $   2,780  $   1,200
Net loan charge-offs     2,704      2,053      1,565      2,670      1,179
                     ---------  ---------  ---------  ---------  ---------
Net loan charge-offs
 to average loans         0.21%      0.16%      0.15%      0.25%      0.11%
                     ---------  ---------  ---------  ---------  ---------

Contact Information: CONTACTS: Michael L. Scudder EVP, Chief Financial Officer (630) 875-7283 www.firstmidwest.com First Midwest Bancorp One Pierce Place, Suite 1500 Itasca, Illinois 60143-9768 (630) 875-7450