First Midwest Bancorp, Inc. Announces 2020 Second Quarter Results

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 $221.3 million, 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 Balance				Interest				Yield/ Rate (%)				Average Balance				Interest				Yield/ Rate (%)				Average Balance				Interest				Yield/ 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   Federal Reserve Bank ("FRB") stock	154,678				368				0.95				126,643				1,387				4.38				87,815				757				3.45
Loans, 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(1)	18,776,796				163,199				3.49				16,431,320				171,380				4.19				14,952,044				178,862				4.80
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' Equity
Savings 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 liabilities	12,699,908				16,810				0.53				11,744,245				26,652				0.91				10,344,758				27,370				1.06
Demand 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   stockholders' equity	$	20,868,106											$	18,404,821											$	16,740,050
Tax-equivalent net interest   income/margin(1)					146,389				3.13								144,728				3.54								151,492				4.06
Tax-equivalent adjustment					(1,155		)										(1,153		)										(1,180		)
Net interest income (GAAP)(1)					$	145,234											$	143,575											$	150,312
Impact of acquired loan accretion(1)					$	6,999			0.15								$	6,946			0.17								$	10,308			0.28
Tax-equivalent net interest income/   margin, adjusted(1)					$	139,390			2.98								$	137,782			3.37								$	141,184			3.78

⁽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)

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

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)

		Quarters Ended												June 30, 2020 Percent Change From
		June 30, 2020				March 31, 2020				June 30, 2019				March 31, 2020			June 30, 2019
Salaries and employee benefits:
Salaries and wages		$	52,592			$	49,990			$	47,776			5.2			10.1
Retirement and other employee benefits		11,080				12,869				10,916				(13.9	)		1.5
Total salaries and employee benefits		63,672				62,859				58,692				1.3			8.5
Net occupancy and equipment expense(1)		15,116				14,227				12,294				6.2			23.0
Technology and related costs(1)		9,853				8,548				7,128				15.3			38.2
Professional services(1)		8,880				10,390				9,624				(14.5	)		(7.7	)
Advertising and promotions		2,810				2,761				3,167				1.8			(11.3	)
Net other real estate owned ("OREO") expense		126				420				294				(70.0	)		(57.1	)
Other expenses		14,624				12,654				12,987				15.6			12.6
Acquisition and integration related expenses		5,249				5,472				9,514				(4.1	)		(44.8	)
Delivering Excellence implementation costs		—				—				442				—			(100.0	)
Total noninterest expense		$	120,330			$	117,331			$	114,142			2.6			5.4
Acquisition and integration related expenses		(5,249		)		(5,472		)		(9,514		)		(4.1	)		(44.8	)
Delivering Excellence implementation costs		—				—				(442		)		—			(100.0	)
Total noninterest expense, adjusted(2)		$	115,081			$	111,859			$	104,186			2.9			10.5

⁽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 $115.1 million, 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)

		As of												June 30, 2020 Percent Change From
		June 30,   2020				March 31,   2020				June 30,   2019				March 31,   2020			June 30,   2019
Commercial and industrial		$	4,789,556			$	5,064,295			$	4,524,401			(5.4	)		5.9
Agricultural		381,124				393,063				430,589				(3.0	)		(11.5	)
Commercial real estate:
Office, retail, and industrial		2,020,318				2,092,097				1,936,577				(3.4	)		4.3
Multi-family		874,861				918,944				787,155				(4.8	)		11.1
Construction		687,063				661,363				654,607				3.9			5.0
Other commercial real estate		1,475,937				1,415,892				1,447,673				4.2			2.0
Total commercial real estate		5,058,179				5,088,296				4,826,012				(0.6	)		4.8
Total corporate loans, excluding PPP   loans		10,228,859				10,545,654				9,781,002				(3.0	)		4.6
PPP loans		1,179,403				—				—				N/M			N/M
Total corporate loans		11,408,262				10,545,654				9,781,002				8.2			16.6
Home equity		892,867				973,658				874,686				(8.3	)		2.1
1-4 family mortgages		2,175,322				1,957,037				1,391,814				11.2			56.3
Installment		457,207				488,668				472,102				(6.4	)		(3.2	)
Total consumer loans		3,525,396				3,419,363				2,738,602				3.1			28.7
Total 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, 2020				March 31, 2020				June 30, 2019				March 31, 2020				June 30, 2019
Allowance for credit losses
ACL, excluding PCD loans		$	203,243			$	176,478			$	106,929			15.2				90.1
PCD loan ACL		44,434				50,223				—				(11.5	)			100.0
Total ACL		$	247,677			$	226,701			$	106,929			9.3				131.6
Provision for credit losses		$	32,649			$	39,532			$	11,491			(17.4	)			184.1
ACL to total loans(1)		1.66		%		1.62		%		0.85		%
ACL to total loans, excluding PPP loans(1)(2)		1.80		%		1.62		%		0.85		%
ACL to non-accrual loans		177.98		%		154.64		%		168.45		%

⁽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, $36 million 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)

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

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 March 31, 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, 2020					% of Total			March 31, 2020					% of Total			June 30, 2019					% of Total
Net loan charge-offs(1)
Commercial and industrial		$	4,735				36.6			$	4,680				38.7			$	4,600				49.3
Agricultural		118					0.9			1,227					10.1			658					7.0
Commercial real estate:
Office, retail, and industrial		3,086					23.9			329					2.7			1,454					15.6
Multi-family		9					0.1			5					—			—					—
Construction		798					6.2			1,808					14.9			(10		)			(0.1	)
Other commercial real estate		19					0.1			164					1.4			284					3.0
Consumer		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 loans(2)(3)		(3,833		)			29.7			(1,720		)			14.2			—					N/A
Total NCOs, excluding PCD loans(2)(3)		$	9,090							$	10,394							$	9,341
Recoveries included in total NCOs		$	1,311							$	1,816							$	2,083
Quarter-to-date(1)(4):
Net loan charge-offs to average loans		0.36			%					0.37			%					0.31			%
Net loan charge-offs to average loans,   excluding PPP loans(3)(5)		0.38			%					0.37			%					0.31			%
Net loan charge-offs to average loans,   excluding PCD and PPP loans(3)(5)		0.27			%					0.32			%					0.31			%
Year-to-date(1)(4):
Net loan charge-offs to average loans		0.36			%					0.37			%					0.32			%
Net loan charge-offs to average loans,   excluding PPP loans(3)(5)		0.38			%					0.32			%					0.32			%
Net loan charge-offs to average loans,   excluding PCD and PPP loans(3)(5)		0.30			%					0.32			%					0.32			%

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, 2020				March 31, 2020				June 30, 2019				March 31, 2020			June 30, 2019
Demand deposits		$	5,305,109			$	3,884,015			$	3,835,567			36.6			38.3
Savings deposits		2,246,643				2,069,163				2,079,852				8.6			8.0
NOW accounts		2,549,088				2,273,156				2,261,103				12.1			12.7
Money market accounts		2,663,622				2,227,707				1,907,766				19.6			39.6
Core deposits		12,764,462				10,454,041				10,084,288				22.1			26.6
Time deposits		2,539,996				2,932,466				2,849,930				(13.4	)		(10.9	)
Total deposits		$	15,304,458			$	13,386,507			$	12,934,218			14.3			18.3

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 30, 2020			March 31, 2020			December 31, 2019			June 30, 2019
Company regulatory capital ratios:
Total capital to risk-weighted assets		13.70	%		12.00	%		12.96	%		12.57	%
Tier 1 capital to risk-weighted assets		11.19	%		9.64	%		10.52	%		10.11	%
Common equity Tier 1 ("CET1") to risk-weighted assets		9.70	%		9.64	%		10.52	%		10.11	%
Tier 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 assets		7.32	%		7.97	%		8.81	%		8.57	%
Tangible common equity to tangible assets, excluding PPP loans		7.77	%		7.97	%		8.81	%		8.57	%
Tangible common equity, excluding accumulated other comprehensive   income ("AOCI"), to tangible assets		7.17	%		7.79	%		8.82	%		8.59	%
Tangible common equity, excluding accumulated other comprehensive   income ("AOCI"), to tangible assets, excluding PPP loans		7.62	%		7.79	%		8.82	%		8.59	%
Tangible common equity to risk-weighted assets		9.61	%		9.63	%		10.51	%		10.11	%

⁽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 $221.3 million, 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 150^th 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 11 A.M. (ET). Members of the public who would like to listen to the conference call should dial [phone] (U.S. domestic) or [phone] (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 [phone] (U.S. domestic) or [phone] (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 [e-mail].

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 December 31, 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 Company’s 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 January 1, 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	Media
Patrick S. Barrett	Maurissa Kanter
EVP, Chief Financial Officer	SVP, Director of Corporate Communications
708.831.7231	708.831.7345
[e-mail]	[e-mail]

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				2019
Period-End Balance Sheet
Assets
Cash and due from banks	$	304,445			$	252,138			$	214,894			$	273,613			$	199,684
Interest-bearing deposits in other banks	637,856				229,474				84,327				202,054				126,966
Equity securities, at fair value	43,954				40,098				42,136				40,723				40,690
Securities available-for-sale, at fair value	3,435,862				3,382,865				2,873,386				2,905,738				2,793,316
Securities held-to-maturity, at amortized cost	19,628				19,825				21,997				22,566				23,277
FHLB and FRB stock	148,512				154,357				115,409				112,845				109,466
Loans:
Commercial and industrial	4,789,556				5,064,295				4,481,525				4,570,361				4,524,401
Agricultural	381,124				393,063				405,616				417,740				430,589
Commercial real estate:
Office, retail, and industrial	2,020,318				2,092,097				1,848,718				1,892,877				1,936,577
Multi-family	874,861				918,944				856,553				817,444				787,155
Construction	687,063				661,363				593,093				637,256				654,607
Other commercial real estate	1,475,937				1,415,892				1,383,708				1,425,292				1,447,673
PPP loans	1,179,403				—				—				—				—
Home equity	892,867				973,658				851,454				833,955				874,686
1-4 family mortgages	2,175,322				1,957,037				1,927,078				1,686,967				1,391,814
Installment	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 losses	(240,052		)		(219,948		)		(108,022		)		(109,028		)		(105,729		)
Net 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 equipment, net	143,001				145,844				147,996				147,064				148,347
Investment in bank-owned life insurance ("BOLI")	299,649				298,827				296,351				297,610				297,118
Goodwill and other intangible assets	940,182				935,241				875,262				876,219				878,802
Accrued interest receivable and other assets	568,239				539,748				437,581				458,303				415,379
Total assets	$	21,244,881			$	19,753,300			$	17,850,397			$	18,013,454			$	17,462,233
Liabilities and Stockholders' Equity
Noninterest-bearing deposits	$	5,602,016			$	4,222,523			$	3,802,422			$	3,832,744			$	3,748,316
Interest-bearing deposits	10,055,640				9,876,427				9,448,856				9,608,183				9,440,272
Total 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 subordinated debt	234,358				234,153				233,948				233,743				233,538
Accrued interest payable and other liabilities	391,461				336,280				335,620				345,695				332,156
Stockholders' equity	2,656,211				2,435,707				2,370,793				2,339,599				2,300,573
Total liabilities and stockholders' equity	$	21,244,881			$	19,753,300			$	17,850,397			$	18,013,454			$	17,462,233
Stockholders' equity, excluding AOCI	$	2,627,484			$	2,400,384			$	2,372,747			$	2,332,861			$	2,303,383
Stockholders' equity, common	2,425,711				2,435,707				2,370,793				2,339,599				2,300,573

First Midwest Bancorp, Inc.
Condensed Consolidated Statements of Income (Unaudited) (Dollar amounts in thousands)
	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				2019
Income 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 losses	32,649				39,532				9,594				12,498				11,491					72,181				21,935
Net interest income after   provision for credit losses	112,585				104,043				138,765				138,289				138,821					216,628				267,401
Noninterest Income
Service charges on deposit   accounts	9,125				11,781				12,664				13,024				12,196					20,906				23,736
Wealth 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 market products   income	694				4,722				6,337				4,161				2,154					5,416				3,433
Mortgage banking income	3,477				1,788				4,134				3,066				1,901					5,265				2,905
Other service charges,   commissions, and fees	2,078				2,682				2,946				3,023				2,783					4,760				5,394
Total fee-based revenues	30,496				37,302				43,077				40,031				35,773					67,798				68,185
Other income	2,495				3,065				3,419				2,920				2,753					5,560				5,247
Net securities losses	—				(1,005		)		—				—				—					(1,005		)		—
Total noninterest   income	32,991				39,362				46,496				42,951				38,526					72,353				73,432
Noninterest 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   employee benefits	11,080				12,869				9,930				10,795				10,916					23,949				22,154
Total salaries and   employee benefits	63,672				62,859				62,973				61,481				58,692					126,531				116,065
Net occupancy and   equipment expense	15,116				14,227				12,940				12,787				12,294					29,343				26,091
Professional services	8,880				10,390				10,949				8,768				9,624					19,270				16,711
Technology and related costs	9,853				8,548				7,429				6,960				7,128					18,401				13,398
Advertising and promotions	2,810				2,761				2,896				2,955				3,167					5,571				5,539
Net 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 and integration   related expenses	5,249				5,472				5,258				3,397				9,514					10,721				13,205
Delivering Excellence   implementation costs	—				—				223				234				442					—				700
Total noninterest expense	120,330				117,331				116,748				108,395				114,142					237,661				216,252
Income before income tax   expense	25,246				26,074				68,513				72,845				63,205					51,320				124,581
Income 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 applicable to   non-vested restricted shares	(187		)		(192		)		(424		)		(465		)		(389		)			(379		)		(792		)
Net income applicable   to common shares	$	17,840			$	19,414			$	51,697			$	54,080			$	46,625				$	37,254			$	92,280
Net income applicable to   common shares, adjusted(1)	21,777				24,272				55,807				56,803				54,091					46,049				102,709

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 31,				September 30,				June 30,					June 30,				June 30,
	2020				2020				2019				2019				2019					2020				2019
EPS
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, adjusted(1)	$	0.19			$	0.22			$	0.51			$	0.52			$	0.50				$	0.41			$	0.96
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 value	$	13.00			$	13.14			$	13.60			$	13.31			$	12.86				$	13.00			$	12.86
Dividends declared per share	$	0.14			$	0.14			$	0.14			$	0.14			$	0.14				$	0.28			$	0.26
Closing price at period end	$	13.35			$	13.24			$	23.06			$	19.48			$	20.47				$	13.35			$	20.47
Closing price to book value	0.6				0.6				1.1				0.9				1.0					0.6				1.0
Period end shares outstanding	114,276				114,213				109,972				109,970				110,589					114,276				110,589
Period end treasury shares	11,079				11,136				10,443				10,441				9,818					11,079				9,818
Common dividends	$	16,015			$	16,002			$	15,404			$	15,406			$	15,503				$	32,017			$	28,340
Dividend payout ratio	87.50		%		77.78		%		29.79		%		28.57		%		32.56		%			84.85		%		30.23		%
Dividend payout ratio, adjusted(1)	73.68		%		63.64		%		27.45		%		26.92		%		28.00		%			68.29		%		27.08		%
Key Ratios/Data
Return on average common   equity(2)	2.94		%		3.23		%		8.69		%		9.22		%		8.34		%			3.08		%		8.50		%
Return on average common   equity, adjusted(1)(2)	3.58		%		4.04		%		9.38		%		9.68		%		9.68		%			3.81		%		9.46		%
Return on average tangible   common equity(2)	5.32		%		5.66		%		14.37		%		15.36		%		13.83		%			5.49		%		14.11		%
Return on average tangible   common equity, adjusted(1)(2)	6.37		%		6.94		%		15.47		%		16.10		%		15.95		%			6.65		%		15.64		%
Return on average assets(2)	0.37		%		0.43		%		1.16		%		1.22		%		1.13		%			0.40		%		1.16		%
Return on average assets,   adjusted(1)(2)	0.44		%		0.53		%		1.25		%		1.28		%		1.31		%			0.49		%		1.29		%
Loans to deposits	95.38		%		99.05		%		96.90		%		95.03		%		94.93		%			95.38		%		94.93		%
Efficiency ratio(1)	64.08		%		60.21		%		56.16		%		53.54		%		54.67		%			62.12		%		55.16		%
Net interest margin(2)(3)	3.13		%		3.54		%		3.72		%		3.82		%		4.06		%			3.33		%		4.05		%
Yield on average interest-earning   assets(2)(3)	3.49		%		4.19		%		4.43		%		4.60		%		4.80		%			3.82		%		4.76		%
Cost of funds(2)(4)	0.38		%		0.69		%		0.74		%		0.82		%		0.77		%			0.52		%		0.75		%
Noninterest expense to average   assets(2)	2.32		%		2.56		%		2.59		%		2.43		%		2.73		%			2.43		%		2.69		%
Noninterest expense, adjusted to   average assets, excluding PPP   loans(1)(2)	2.32		%		2.44		%		2.47		%		2.35		%		2.50		%			2.32		%		2.52		%
Effective income tax rate	24.49		%		24.81		%		23.93		%		25.12		%		25.62		%			24.65		%		25.29		%
Capital Ratios
Total capital to risk-weighted   assets(1)	13.70		%		12.00		%		12.96		%		12.62		%		12.57		%			13.70		%		12.57		%
Tier 1 capital to risk-weighted   assets(1)	11.19		%		9.64		%		10.52		%		10.18		%		10.11		%			11.19		%		10.11		%
CET1 to risk-weighted assets(1)	9.70		%		9.64		%		10.52		%		10.18		%		10.11		%			9.70		%		10.11		%
Tier 1 capital to average assets(1)	8.70		%		8.60		%		8.81		%		8.67		%		8.96		%			8.70		%		8.96		%
Tangible common equity to   tangible assets(1)	7.32		%		7.97		%		8.81		%		8.54		%		8.57		%			7.32		%		8.57		%
Tangible common equity, excluding AOCI, to tangible   assets(1)	7.17		%		7.79		%		8.82		%		8.50		%		8.59		%			7.17		%		8.59		%
Tangible common equity to risk-   weighted assets(1)	9.61		%		9.63		%		10.51		%		10.24		%		10.11		%			9.61		%		10.11		%
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 31,				September 30,				June 30,					June 30,				June 30,
	2020				2020				2019				2019				2019					2020				2019
Asset Quality Performance Data
Non-performing assets
Commercial and industrial	$	19,475			$	24,944			$	29,995			$	26,739			$	19,809				$	19,475			$	19,809
Agricultural	8,494				5,823				5,954				6,242				6,712					8,494				6,712
Commercial real estate:
Office, retail, and industrial	26,342				26,107				25,857				26,812				17,875					26,342				17,875
Multi-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 estate	5,304				4,562				4,729				4,680				3,982					5,304				3,982
Consumer	13,657				14,761				12,885				10,915				9,625					13,657				9,625
Non-accrual, excluding PCD   loans	94,044				97,649				82,269				77,692				63,477					94,044				63,477
Non-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 past due loans,   still accruing interest	3,241				5,052				5,001				4,657				2,615					3,241				2,615
Total 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 loans	$	36,342			$	81,127			$	31,958			$	46,171			$	34,460				$	36,342			$	34,460
Allowance for credit losses
Allowance for loan losses	$	240,052			$	219,948			$	108,022			$	109,028			$	105,729				$	240,052			$	105,729
Reserve for unfunded   commitments	7,625				6,753				1,200				1,200				1,200					7,625				1,200
Total ACL	$	247,677			$	226,701			$	109,222			$	110,228			$	106,929				$	247,677			$	106,929
Provision for loan losses	$	32,649			$	39,532			$	9,594			$	12,498			$	11,491				$	72,181			$	21,935
Net charge-offs by category
Commercial and industrial	$	4,735			$	4,680			$	6,799			$	5,532			$	4,600				$	9,415			$	9,661
Agricultural	118				1,227				15				439				658					1,345				747
Commercial real estate:
Office, retail, and industrial	3,086				329				256				219				1,454					3,415				2,072
Multi-family	9				5				(439		)		(38		)		—					14				339
Construction	798				1,808				3				(2		)		(10		)			2,606				(10		)
Other commercial real estate	19				164				13				(43		)		284					183				473
Consumer	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, excluding PCD   loans	$	9,090			$	10,394			$	10,600			$	9,199			$	9,341				$	19,484			$	18,425
Total recoveries included above	$	1,311			$	1,816			$	2,153			$	2,073			$	2,083				$	3,127			$	3,776
Note: 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																Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,				June 30,			June 30,
	2020			2020			2019			2019			2019				2020			2019
Asset quality ratios
Non-accrual loans to total loans	0.93	%		1.05	%		0.64	%		0.61	%		0.51	%			0.93	%		0.51	%
Non-accrual loans to total loans,   excluding PPP loans(6)	1.01	%		1.05	%		0.64	%		0.61	%		0.51	%			1.01	%		0.51	%
Non-accrual loans to total loans,   excluding PCD and PPP loans(6)	0.70	%		0.71	%		0.64	%		0.61	%		0.51	%			0.70	%		0.51	%
NPLs to total loans	0.95	%		1.09	%		0.68	%		0.64	%		0.53	%			0.95	%		0.53	%
NPLs to total loans, excluding   PPP loans(6)	1.04	%		1.09	%		0.68	%		0.64	%		0.53	%			1.04	%		0.53	%
NPLs to total loans, excluding   PCD and PPP loans(6)	0.72	%		0.75	%		0.68	%		0.64	%		0.53	%			0.72	%		0.53	%
NPAs to total loans plus   foreclosed assets	1.09	%		1.24	%		0.85	%		0.85	%		0.77	%			1.09	%		0.77	%
NPAs to total loans plus   foreclosed assets, excluding   PPP loans(6)	1.18	%		1.24	%		0.85	%		0.85	%		0.77	%			1.18	%		0.77	%
NPAs to total loans plus   foreclosed assets, excluding   PCD and PPP loans(6)	0.87	%		0.91	%		0.85	%		0.85	%		0.77	%			0.87	%		0.77	%
NPAs to tangible common equity   plus ACL	9.38	%		10.07	%		6.79	%		6.93	%		6.28	%			9.38	%		6.28	%
Non-accrual loans to total assets	0.66	%		0.74	%		0.46	%		0.43	%		0.36	%			0.66	%		0.36	%
Allowance for credit losses and net charge-off ratios
ACL to total loans(7)	1.66	%		1.62	%		0.85	%		0.86	%		0.85	%			1.66	%		0.85	%
ACL to non-accrual loans	177.98	%		154.64	%		132.76	%		141.88	%		168.45	%			263.36	%		168.45	%
ACL to NPLs	173.93	%		149.49	%		125.15	%		133.85	%		161.79	%			254.59	%		161.79	%
NCOs to average loans(2)	0.36	%		0.37	%		0.33	%		0.29	%		0.31	%			0.36	%		0.32	%
NCOs to average loans,   excluding PPP loans(2)	0.38	%		0.37	%		0.33	%		0.29	%		0.31	%			0.38	%		0.32	%
NCOs to average loans,   excluding PCD and PPP loans(2)	0.27	%		0.32	%		0.33	%		0.29	%		0.31	%			0.30	%		0.32	%

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 30,					June 30,						June 30,					June 30,
	2020					2020					2019					2019					2019						2020					2019
EPS
Net income	$	19,064				$	19,606				$	52,121				$	54,545				$	47,014					$	38,670				$	93,072
Dividends and accretion on   preferred stock	(1,037		)			—					—					—					—						(1,037		)			—
Net income applicable to non-   vested restricted shares	(187		)			(192		)			(424		)			(465		)			(389		)				(379		)			(792		)
Net income applicable to   common shares	17,840					19,414					51,697					54,080					46,625						37,254					92,280
Adjustments to net income:
Acquisition and integration   related expenses	5,249					5,472					5,258					3,397					9,514						10,721					13,205
Tax effect of acquisition and   integration related expenses	(1,312		)			(1,368		)			(1,315		)			(849		)			(2,379		)				(2,680		)			(3,301		)
Net securities losses	—					1,005					—					—					—						1,005					—
Tax effect of net securities   losses	—					(251		)			—					—					—						(251		)			—
Delivering Excellence   implementation costs	—					—					223					234					442						—					700
Tax effect of Delivering   Excellence implementation   costs	—					—					(56		)			(59		)			(111		)				—					(175		)
Total adjustments to net   income, net of tax	3,937					4,858					4,110					2,723					7,466						8,795					10,429
Net income applicable to   common shares,   adjusted(1)	$	21,777				$	24,272				$	55,807				$	56,803				$	54,091					$	46,049				$	102,709
Weighted-average common shares outstanding:
Weighted-average common   shares outstanding (basic)	113,145					109,922					109,059					109,281					108,467						111,533					107,126
Dilutive effect of common   stock equivalents	191					443					519					381					—						339					—
Weighted-average diluted   common shares   outstanding	113,336					110,365					109,578					109,662					108,467						111,872					107,126
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, adjusted(1)	$	0.19				$	0.22				$	0.51				$	0.52				$	0.50					$	0.41				$	0.96
Anti-dilutive shares not included   in the computation of diluted   EPS	—					—					—					—					—						—					—
Dividend Payout Ratio
Dividends declared per share	$	0.14				$	0.14				$	0.14				$	0.14				$	0.14					$	0.28				$	0.26
Dividend payout ratio	87.50			%		77.78			%		29.79			%		28.57			%		32.56			%			84.85			%		30.23			%
Dividend payout ratio, adjusted(1)	73.68			%		63.64			%		27.45			%		26.92			%		28.00			%			68.29			%		27.08			%
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					2019
Return on Average Common and Tangible Common Equity
Net income applicable to   common shares	$	17,840				$	19,414				$	51,697				$	54,080				$	46,625					$	37,254				$	92,280
Intangibles amortization	2,820					2,770					2,744					2,750					2,624						5,590					4,987
Tax effect of intangibles   amortization	(705		)			(693		)			(686		)			(688		)			(656		)				(1,398		)			(1,247		)
Net income applicable to   common shares, excluding   intangibles amortization	19,955					21,491					53,755					56,142					48,593						41,446					96,020
Total adjustments to net income,   net of tax(1)	3,937					4,858					4,110					2,723					7,466						8,795					10,429
Net income applicable to   common shares, adjusted(1)	$	23,892				$	26,349				$	57,865				$	58,865				$	56,059					$	50,241				$	106,449
Average stockholders' common   equity	$	2,443,212				$	2,415,157				$	2,359,197				$	2,327,279				$	2,241,569					$	2,429,184				$	2,190,210
Less: average intangible assets	(934,022		)			(887,600		)			(874,829		)			(877,069		)			(832,263		)				(910,811		)			(817,915		)
Average tangible common   equity	$	1,509,190				$	1,527,557				$	1,484,368				$	1,450,210				$	1,409,306					$	1,518,373				$	1,372,295
Return on average common   equity(2)	2.94			%		3.23			%		8.69			%		9.22			%		8.34			%			3.08			%		8.50			%
Return on average common   equity, adjusted(1)(2)	3.58			%		4.04			%		9.38			%		9.68			%		9.68			%			3.81			%		9.46			%
Return on average tangible   common equity(2)	5.32			%		5.66			%		14.37			%		15.36			%		13.83			%			5.49			%		14.11			%
Return on average tangible   common equity, adjusted(1)(2)	6.37			%		6.94			%		15.47			%		16.10			%		15.95			%			6.65			%		15.64			%
Return on Average Assets
Net income	$	19,064				$	19,606				$	52,121				$	54,545				$	47,014					$	38,670				$	93,072
Total adjustments to net income,   net of tax(1)	3,937					4,858					4,110					2,723					7,466						8,795					10,429
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(2)	0.37			%		0.43			%		1.16			%		1.22			%		1.13			%			0.40			%		1.16			%
Return on average assets,   adjusted(1)(2)	0.44			%		0.53			%		1.25			%		1.28			%		1.31			%			0.49			%		1.29			%
Noninterest Expense to Average Assets
Noninterest expense	$	120,330				$	117,331				$	116,748				$	108,395				$	114,142					$	237,661				$	216,252
Less:
Delivering Excellence   implementation costs	—					—					(223		)			(234		)			(442		)				—					(700		)
Acquisition and integration   related expenses	(5,249		)			(5,472		)			(5,258		)			(3,397		)			(9,514		)				(10,721		)			(13,205		)
Total	$	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, excluding PPP   loans	$	19,980,129				$	18,404,821				$	17,889,158				$	17,699,180				$	16,740,050					$	19,636,463				$	16,206,906
Noninterest expense to average   assets(2)	2.32			%		2.56			%		2.59			%		2.43			%		2.73			%			2.43			%		2.69			%
Noninterest expense, adjusted to   average assets, excluding PPP   loans(2)	2.32			%		2.44			%		2.47			%		2.35			%		2.50			%			2.32			%		2.52			%
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					2019
Efficiency 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 and integration   related expenses	(5,249		)			(5,472		)			(5,258		)			(3,397		)			(9,514		)				(10,721		)			(13,205		)
Delivering Excellence   implementation costs	—					—					(223		)			(234		)			(442		)				—					(700		)
Total	$	114,955				$	111,439				$	110,187				$	104,383				$	103,892					$	226,394				$	201,372
Tax-equivalent net interest   income(3)	$	146,389				$	144,728				$	149,711				$	152,019				$	151,492					$	291,117				$	291,624
Noninterest income	32,991					39,362					46,496					42,951					38,526						72,353					73,432
Less: net securities losses	—					1,005					—					—					—						1,005					—
Total	$	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 losses	32,649					39,532					9,594					12,498					11,491						72,181					21,935
Pre-Tax, Pre-Provision   Earnings	$	57,895				$	65,606				$	78,107				$	85,343				$	74,696					$	123,501				$	146,516
Adjustments 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(5)	—					—					223					234					442						—					700
Total adjustments	5,249					6,477					5,481					3,631					9,956						11,726					13,905
Pre-Tax, Pre-Provision   Earnings, adjusted	$	63,144				$	72,083				$	83,588				$	88,974				$	84,652					$	135,227				$	160,421
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					2019
Tangible Common Equity
Stockholders' equity, common	$	2,425,711				$	2,435,707				$	2,370,793				$	2,339,599				$	2,300,573
Less: goodwill and other intangible assets	(940,182		)			(935,241		)			(875,262		)			(876,219		)			(878,802		)
Tangible common equity	1,485,529					1,500,466					1,495,531					1,463,380					1,421,771
Less: AOCI	(28,727		)			(35,323		)			1,954					(6,738		)			2,810
Tangible common equity, excluding AOCI	$	1,456,802				$	1,465,143				$	1,497,485				$	1,456,642				$	1,424,581
Total assets	$	21,244,881				$	19,753,300				$	17,850,397				$	18,013,454				$	17,462,233
Less: goodwill and other intangible assets	(940,182		)			(935,241		)			(875,262		)			(876,219		)			(878,802		)
Tangible assets	$	20,304,699				$	18,818,059				$	16,975,135				$	17,137,235				$	16,583,431
Less: PPP loans	(1,179,403		)			—					—					—					—
Tangible assets, excluding PPP loans	$	19,125,296				$	18,818,059				$	16,975,135				$	17,137,235				$	16,583,431
Risk-weighted assets	$	15,458,361				$	15,573,684				$	14,225,444				$	14,294,011				$	14,056,482
Tangible common equity to tangible assets	7.32			%		7.97			%		8.81			%		8.54			%		8.57			%
Tangible common equity to tangible assets, excluding PPP loans	7.77			%		7.97			%		8.81			%		8.54			%		8.57			%
Tangible common equity, excluding AOCI, to tangible assets	7.17			%		7.79			%		8.82			%		8.50			%		8.59			%
Tangible common equity, excluding AOCI, to tangible assets,   excluding PPP loans	7.62			%		7.79			%		8.82			%		8.50			%		8.59			%
Tangible common equity to risk-weighted assets	9.61			%		9.63			%		10.51			%		10.24			%		10.11			%

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%.