First Midwest Bancorp : 2Q 2020 Earnings Presentation

Exhibit 99.2

Earnings Call Presentation

2020 Second Quarter

July 22, 2020

GETTING OUR MOMENTUM BACK

Implemented a phased-inreturn to the workplace approach beginning June 22

~85% of all locations remain open with access to drive-upand lobby appointment service

Helped ~5,000 clients through payment deferrals and fee assistance programs

Funded over $1.2bn of PPP loans

for ~6,500 clients; impacted the lives of ~150,000 small business employees and their families

Committed $2.5mm to supporting our communities

Supporting Our Colleagues

• Enhanced health insurance programs and access to retirement benefits to provide greater flexibility, coverage and additional support
• Expanded paid time off programs
• Added provisions for emergency medical and hardship loans

Supporting Our Clients

• Branches accessible with enhanced health and safety protocols
• Reopening of certain branch lobbies
• Offering payment deferral and fee assistance programs and services:
• • Consumer, mortgage, auto loan deferrals and fee assistance
  • Commercial loan deferrals and fee assistance
  • Suspension of foreclosure and repossession actions
• Ongoing participation in the SBA's Paycheck Protection Program

Supporting Our Communities

• Additional $2.5mm contribution from the First Midwest Charitable Foundation
• Aiding individuals and families through affordable housing and financial sustainability and supporting small businesses
• Enhanced matching gifts programs to support colleague donations

LEVERAGING OUR STRENGTHS TO SUPPORT OUR CLIENTS AND COMMUNITIES

2

Q2 '20 EARNINGS HIGHLIGHTS

$0.6

$0.4

$0.2

$-

$100

$80

$60

$40

$20 $-

				Earnings Per Share
					Earnings Per Share
		$0.52	$0.51
	$0.50
									$0.41	$0.37	$0.38 $0.35
	$0.43	$0.49		$0.47	$0.22
										$0.19
									$0.18	$0.16
	Q2 '19		Q3 '19	Q4 '19		Q1 '20	Q2 '20
			EPS		djusted(1)		EPS				Pandemic
			, a			EPS
						EPS, adjusted

Pre-Tax,Pre-Provision Earnings(1)

$89

$85$84

$73

$66

$72 $63

Q2 '19	Q3 '19	Q4 '19	Q1 '20	Q2 '20
	Pre-tax,pre-provision earnings(1)		Pandemic

Earnings

EPS of $0.16 for Q2 '20; impacted by:

• $0.17 of loan loss provision for the estimated impact of the pandemic on the ACL
• $0.02 of pandemic expenses and fee assistance programs
• $0.03 of A&I related expenses
• $0.01 of dividends on preferred stock

Pre-Tax,Pre-Provision Earnings(1)

Down 12%, or $9mm from Q1 '20, impacted primarily by:

• Pandemic expenses of $2mm
• Noninterest income down $6mm, or 16%, due to lower volumes and fee assistance programs

Down 25%, or $22mm from Q2 '19, impacted primarily by:

• Noninterest expense, adjusted(1)(2) up $11mm due to acquisitions, pandemic, and merit increases
• Noninterest income down $6mm due to lower transaction volumes and fee assistance programs due to the pandemic
• NII down $2mm due to lower interest rates and accretion, partly offset by acquisitions and growth in loans and securities

RESULTS IMPACTED BY THE PANDEMIC AND LOWER RATE ENVIRONMENT

Amounts in millions, except per share data

Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms" and "Footnotes" slides for details on the calculations of these metrics,3 definitions of certain terms, and footnotes used.

LOANS

							$14,934
			$13,964	$13,913
$12,520	$12,773	$12,842				$13,754

5.29%
5.09%
4.85%
4.57%	Corporate
	Loans
	3.98%
	3.89%

Q2 '19

Q3 '19

Q4 '19

Q1 '20

Q2 '20

C&I

Agricultural

Owner-occupied CRE

Investor CRE

Consumer

Loan Yield

Loan Yield, excluding PPP

PPP

Highlights

• PPP contributed $1.2bn; decreasing loan yields by 9bps
• Up 7% from Q1 '20; down 2% excluding PPP loans
• • Consumer up 3% reflecting growth of high- quality 1-4 family mortgages
  • Corporate down 3% due to environmental impact on production, line usage, and paydown trends
• Up 19% from Q2 '19; up 4% excluding PPP loans and Park
• Mix continues to be well-diversified

Dollars in millions

Balances shown are end of period

Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms," and "Footnotes" slides for details on the calculation of these metrics, definitions of certain4 terms, and footnotes used.

LOAN DIVERSIFICATION - CORPORATE

$11.4bn

76% of Total Loans

40% C&I / 34% CRE / 2% Agricultural

Other C&I	Senior Housing
Loans	Healthcare Services
	and Hospitals
	Leveraged
	Finance

Elevated

Risk

	% of
	total
Sector	loans	Risk Mitigants
Franchises	2.0%	National, leading branch QSRs
Recreation / Entertainment	1.5%	Very granular, real estate secured
Restaurants	0.8%	Very granular, real estate secured

Agricultural	(both C&I and CRE	Hotels
categories)
	Multi-family	Retail - C&I
Owner Occupied	Construction	Total
CRE	Retail - CRE
Office, Industrial, and
Other Investor CRE

0.6%

0.4%

5.3%

All major brands, avg. LTV 50%

Small strip centers with avg. LTV 57%

C&ICRE Agricultural

SOLID UNDERWRITING AND GRANULAR, DIVERSIFIED PORTFOLIO MITIGATES RISKS

Data as of June 30, 2020

Dollar amounts in millions unless otherwise noted

Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms" and "Footnotes" slides for details on the calculations of these metrics, definitions of5 certain terms, and footnotes used.

LOAN DIVERSIFICATION - CONSUMER

$3.5bn

24% of Total Loans

Home Equity

Avg. FICO - 764

Avg. LTV - 71%

Other Installment

Avg. FICO - 762

Elevated

Risk

1-4 Family

Avg. FICO - 779

Avg. LTV - 67%

	% of
	total
Sector	loans	Risk Mitigants
		~90% have FICO > 700;
Unsecured Installment	1.8% Avg loan size ~$9k

HIGH QUALITY CREDIT - GEOGRAPHICALLY DISPERSED

Data as of June 30, 2020

Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms" and "Footnotes" slides for details on the calculations of these metrics,6 definitions of certain terms, and footnotes used.

ALLOWANCE FOR CREDIT LOSSES

Net Charge-offs

Highlights

				$12	$13	•	Asset quality remains stable, metrics distorted by CECL
0.60%				$4		-	$4mm of $13mm of Q2 '20 NCOs relate to PCD loans that
		$11	$2
	$9	$9					were fully reserved; no provision impact
		0.37%
0.40%				0.36%		-	Excluding PCD and PPP loans, NCOs to average loans(1)(2)
0.31%
							of 0.27% for Q2 '20, lower than prior quarters
					0.27%
				0.32%
0.20%						Robust ACL to total loans of 1.80%, excluding PPP(1)
				$10	$9
	Q2 '19	Q3 '19	Q4 '19	Q1 '20	Q2 '20	• $25mm in Q2 '20 provision to incorporate estimated impact of
		NCOs, excluding PCD				the pandemic based upon:
			(1)
		PCD					- Multiple forecast scenarios of GDP, unemployment and HPI
		NCOs / Avg Loans(2)		(1)(2)
		NCOs / Avg Loans, excluding PCD and PPP Loans			- Detailed portfolio reviews
		Allowance and Provision
				- Effects of relief programs

2.00%				1.62%	1.80%
					1.66%
				1.22%
1.00%	0.85%				0.90%
			$40
				$33
	0.38%
	$11
-%	Q2 '19	Q3 '19	Q4 '19	Q1 '20	Q2 '20

Allowance / Loans, excluding PPP loans(1)

Allowance / Loans

Provision / Avg Loans(2)

Provision

• Increase in ACL to total loans compared to Q2 '19 reflects the adoption of CECL on January 1, 2020
• • $76mm (69%) total ACL increase compared to Q4 '19
  • • $32mm (29%), excluding acquired
    • $44mm (40%) for acquired
  • $16mm of ACL established for Park

Dollar amounts in millions
Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms," and "Footnotes" slides for details on the calculation of these metrics, definitions of certain	7
terms, and footnotes used.

ASSET QUALITY

Non-performing Assets

2.00%	$174
	$49

1.24%

$109$109

$96

1.00%

0.91%

0.77%

$125

0.00%

Q2 '19

Q3 '19

Q4 '19

Q1 '20

NPAs, excluding PCD

PCD NPAs

NPAs / Loans + Foreclosed Assets

NPAs / Loans + Foreclosed Assets, excluding PCD & PPP Loans(1)

$163

$45

1.09%

0.87%

$118

Q2 '20

Highlights

Asset quality remains stable, metrics distorted by CECL

• NPA metric, excluding PCD & PPP loans of 0.87%, down 4bps and up 10bps from Q1 '20 and Q2 '19, respectively
• Adverse loans of $450mm, up $12mm and $40mm from Q1 '20 and Q2 '19, respectively, reflective of normal fluctuations

Adverse Loans

6.00%	$410			$438	$450
				$78
	$29			$79
					4.40%
4.00%	4.19%			4.15%
			3.94%
2.00%	$381			$359	$372
Q2 '19	Q3 '19	Q4 '19	Q1 '20	Q2 '20

Adverse Loans, excluding PCI/PCD

PCI/PCD Adverse Loans

Adverse Loans to Corporate Loans(1)

Adverse Loans, excluding PPP Loans, to Corporate Loans (1)

METRICS LARGELY UNCHANGED, REFLECTS CECL

Dollar amounts in millions

Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms," and "Footnotes" slides for details on the calculation of these metrics,8 definitions of certain terms, and footnotes used.

DEPOSITS
							Highlights
				$15,304	• Average deposits of $15bn, up 14% from
						Q1 '20 and 18% Q2 '19 reflecting:
	$13,445	$13,460	$13,386			-	Park acquisition
$12,934			- Higher customer balances due to PPP funds
							and government stimulus
						- Normal seasonal increase in municipal
	0.64%						deposits compared to Q1 '20
0.60%		0.59%			83%	- Bridgeview acquisition contributed to the
						increase compared to Q2 '19
					Core
			0.51%		•	Mix shift to 58% retail, 32% commercial,
					10% public, due to PPP funds
					•	Cost of deposits decreased 25bps due primarily
						to lower rate environment and the increase in
						demand deposits
				0.26%
Q2 '19	Q3 '19	Q4 '19	Q1 '20	Q2 '20

			Demand			Savings
			NOW			Money Market
			Time				Cost of Deposits

Dollars in millions

Balances shown are QTD averages

Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms," and "Footnotes" slides for details on the calculation of these metrics, definitions of certain9 terms, and footnotes used.

STRONG FUNDING AND LIQUIDITY

Funding Profile

Highlights

Interest-bearing	Time | 13%
transactions | 42%

Brokered CD's | 1%

Borrowed funds | 14%

Demand | 30%

Core Deposits

Time Deposits

Borrowed Funds

• $15bn of very stable long-term deposit base is primary source of liquidity
• Over $7bn in additional funding sources provide ample capacity to support our clients, colleagues, and communities
• • ~$4bn comprised of unencumbered securities and cash, FHLB capacity and Fed availability - meaningfully higher than undrawn commitments
• Flexibility to utilize PPPLF or other sources to fund PPP demand
• • No outstanding balance for Q2 '20

AMPLE LIQUIDITY PROVIDES FLEXIBILITY TO MEET EXPECTED DEMAND

Data as of June 30, 2020

Funding Profile data reflects QTD averages

Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms," and "Footnotes" slides for details on the calculation of these metrics, definitions of certain10 terms, and footnotes used.

NET INTEREST INCOME

Trend and Composition

Total interest-earning	Q2 '19		Q3 '19		Q4 '19		Q1 '20		Q2 '20
							$18,777
assets	$14,952	$15,801	$15,969	$16,431
NIM(1)	4.06 %	3.82 %	3.72 %	3.54 %	3.13 %
Accretion	(0.28)%	(0.23)%	(0.24)%	(0.17)%	(0.15)%
NIM, adjusted(1)
3.78 %	3.59 %	3.48 %	3.37 %	2.98 %

$150	$151	$148	$144	$145
		$9
$10
		$10
					$7
			$7

3.78%

3.59%

3.48%

3.37%

2.98%

Q2 '19			Q3 '19		Q4 '19		Q1 '20		Q2 '20
			NII		Accretion		NIM, adjusted	(1)

Highlights

• NII up 1% from Q1 '20 and down 3% from Q2 '19
• PPP loans added $5mm to NII
• Accretion consistent with Q1 '20, and down $3mm from Q2 '19
• Impacted by lower interest rates and acquisitions
• Loan and security growth partly offset decline from Q2 '19
• NIM, adjusted(1) of 2.98%, down 39bps from Q1 '20 and down 80bps Q2 '19, impacted by:
• Lower interest rates partially offset by lower cost of funds
• Origination of PPP loans
• Higher other interest-earning assets due to PPP and stimulus
• Seasonal municipal deposits impact decline from Q1 '20
• Actions taken to reduce rate sensitivity also impacted the decline from Q2 '19

Dollars in millions
Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms," and "Footnotes" slides for details on the calculation of these metrics, definitions of certain	11
terms, and footnotes used.

NONINTEREST INCOME

Trend and Composition

Highlights

	$47
	$43
$39			$40

$33

Q2 '19

Q3 '19

Q4 '19

Q1 '20

Q2 '20

		Deposit service charges		Wealth management
		Card-based		Capital market products income
		Mortgage banking		Other noninterest income(3)

• Down 16% from Q1 '20 and 14% from
  Q2 '19 impacted by:
• • Lower transaction volumes and fee assistance programs due to the pandemic:
  • • Deposit service charges
    • Card-based
    • Capital markets
  • Wealth management down due to market conditions
  • Higher mortgage banking due to higher sales volumes, partly offset
• Securities losses of $1mm in Q1 '20 reflects the repositioning of the securities portfolio due to market conditions

Dollars in millions
Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms," and "Footnotes" slides for details on the calculation of these metrics, definitions of certain	12
terms, and footnotes used.

NONINTEREST EXPENSE
	Trend and Composition						Highlights
					Periods Ended				• Noninterest expense, adjusted(1) of $115mm
								- Up 3% from Q1 '20 and 10% from Q2 '19,
			Q2 '19		Q3 '19	Q4 '19		Q1 '20	Q2 '20
Noninterest expense as reported	$	114	$	108	$	117	$	117	$	120	impacted by:
A&I related expenses			(10)		(3)		(6)		(5)		(5)	◦ Operating costs from acquisitions;
							represents ~65% of increase from
Noninterest expense, adjusted(1)	$	104	$	105	$	111	$	112	$	115
	Q1 '20 and ~40% from Q2 '20
												◦
												Pandemic
			$111		$	112		$115		◦	Merit increases
$104	$105											◦ Investments in technology and process
													improvements
												• Controlled noninterest expense, adjusted to
												average assets excluding PPP (1)(2) of 2.32%,
												down 5% from Q1 '20 and 7% from Q2 '19
2.50%			2.47%	2.44%
	2.35%								2.32%

Q2 '19	Q3 '19	Q4 '19	Q1 '20	Q2 '20
Salaries & Benefits				Occupancy & Equipment
Professional services				Technology
Other noninterest expense (4)			Noninterest expense, adj. to average assets excluding PPP (1)(2)

Dollars in millions
Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms," and "Footnotes" slides for details on the calculation of these metrics, definitions of certain	13
terms, and footnotes used.

CAPITAL

	Q2 '19	Q3 '19	Q4 '19	Q1 '20	Q2 '20
Regulatory Capital Ratios:
• CET1 capital to RWA	10.11%	10.18%	10.52%	9.64%	9.70%
• Tier 1 capital to RWA	10.11%	10.18%	10.52%	9.64%	11.19%

• Total capital to RWA 12.57% 12.62% 12.96% 12.00% 13.70%

TBV per common share

$12.86

$13.31

$13.60

$13.14

$13.00

Highlights

• Q2 '20 Total and Tier 1 capital ratios increased due to earnings and issuance of $231mm of preferred stock
• Elected CECL transition for regulatory capital relief in 2020
• • Retains ~25bps of CET1 and tier 1 capital

			Robust Capital Levels
									Excess Capital
										Above
				7.0%				Conservation	Buffer
CET1 Capital	4.50%
								$418mm
	9.70%
					8.50%
Tier 1 Capital	6.00%
								$416mm
	11.19%
							10.5%
Total Capital			8.00%
								$495mm
	13.70%
		Minimum Requirement	FMBI	Capital Conservation Buffer

• Strong excess capital position, solid operating leverage and credit reserves
• • Capital levels remain sufficient in a severely adverse economic scenario
  • Consistent with mid-size, regional, and national peers
• Q2 '20 dividend of $0.14 per common share, consistent with Q1 '20

Robust Capital Levels data as of June 30, 2020
Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms," and "Footnotes" slides for details on the calculation of these metrics, definitions of certain terms,	14
and footnotes used.

OUTLOOK RECAP

(For the Year Ended 2020; unless otherwise noted)

We offer commentary on factors influencing FY2020 outlook for key categories.

Guidance below is dependent upon the duration and severity of the pandemic and the effectiveness of fiscal support.

Loans and Deposits

• Dependent upon economic conditions, customer behavior and stimulus
• PPP will further impact

NII and NIM

• Both NII and NIM, adj,(1) decline in Q3 with growth expected in Q4
• Accretion of ~$25mm reflecting CECL transition, ~$3mm reclass to lower provision
• Includes potential impacts from PPP

Noninterest Income

• Modest improvement in Q3 and Q4; second half in-line with first half
• Dependent upon length and severity of the pandemic and customer behavior

Noninterest Expense, Adjusted

• Quarterly expense expected to return to Q1 levels the remainder of the year

Asset Quality

• Dependent upon economic conditions, customer behavior and stimulus

Taxes

• Effective tax rate expected to be approximately 25%

Capital

• Strong capital provides flexibility to navigate the impact of the pandemic

Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms," and "Footnotes" slides for details on the calculation
of these metrics, definitions of certain terms, and footnotes used.	15

FINANCIAL RESULTS

		Q2 '19			Q3'19			Q4'19			Q1 '20			Q2 '20
Net Interest Income	$	150	$	151	$	148	$	144	$	145
Loan Loss Provision		12			12			10			40			33
Noninterest Income		39			43			46			40			33
Net Securities Losses		-			-			-			(1)			-
Noninterest Expense		114			108			117			117			120
Income before Income Taxes		63			74			67			26			25
Income Tax Expense		16			18			16			6			6
Net Income	$	47	$	56	$	51	$	20	$	19
Preferred dividends		-			-			-			-			(1)
Net Income Applicable to
Common Shares	$	47		$	56		$	51		$	20		$	18
EPS	$	0.43	$	0.49	$	0.47	$	0.18	$	0.16
EPS, Adjusted(1)	$	0.50	$	0.52	$	0.51	$	0.22	$	0.19
ROATCE(1)(2)		13.8 %			15.4 %			14.4 %			5.7 %			5.3 %
ROATCE, Adjusted(1)(2)		16.0 %			16.1 %			15.5 %			6.9 %			6.4 %
Noninterest Expense, adjusted
to Average Assets, Excluding														2.3 %
PPP Loans(1)(2)		2.5 %			2.3 %			2.5 %			2.4 %
Efficiency Ratio(1)		55 %			54 %			56 %			60 %			64 %

Dollars in millions, except per share data
Note: See the accompanying "Non-GAAP Financial Information," "Glossary of Terms," and "Footnotes" slides for details on the calculation of these metrics, definitions of certain	16
terms, and footnotes used.

FORWARD-LOOKING STATEMENTS

This presentation, 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 COVID-19 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 COVID-19 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.

Note: See the accompanying "Glossary of Terms" slide for definitions of certain terms used.

17

APPENDIX

18

NON-GAAP FINANCIAL INFORMATION

The Company's accounting and reporting policies conform to U.S. 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, tax-equivalent NII (including its individual components), tax-equivalent NIM, tax-equivalent NIM, adjusted, noninterest expense, adjusted, ROATCE, ROATCE, adjusted, non-accrual loans, excluding PCD loans, 30-89 days past due loans, excluding PCD 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, ROATCE, 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, ROATCE, 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 NII and NIM 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 NII and NIM on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes. In addition, management believes that presenting tax-equivalent NIM, 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 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.

Note: See the accompanying "Glossary of Terms" slide for definitions of certain terms used.

19

NON-GAAP FINANCIAL INFORMATION

								Quarters Ended
		June 30,			September 30,			December 31,			March 31,			June 30,
		2019			2019			2019			2020			2020
Earnings Per Share
Net income	$	47,014	$	54,545	$	52,121	$	19,606	$	19,064
Dividends and accretion on preferred stock		-			-			-			-			(1,037)
Net income applicable to non-vested restricted shares		(389)			(465)			(424)			(192)			(187)
Net income applicable to common shares		46,625			54,080			51,697			19,414			17,840
Adjustments to net income:
Net securities losses		-			-			-			1,005			-
Tax effect of net securities losses		-			-			-			(251)			-
A&I related expenses		9,514			3,397			5,258			5,472			5,249
Tax effect of A&I related expenses		(2,379)			(849)			(1,315)			(1,368)			(1,312)
Delivering Excellence implementation costs(5)		442			234			223			-			-
Tax effect of Delivering Excellence implementation costs		(111)			(59)			(56)			-			-
Total adjustments to net income		7,466			2,723			4,110			4,858			3,937
Net income applicable to common shares, adjusted	$	54,091	$	56,803	$	55,807	$	24,272	$	21,777
Weighted-average diluted common shares outstanding		108,467			109,662			109,578			110,365			113,336
Diluted EPS	$	0.43	$	0.49	$	0.47	$	0.18	$	0.16
Diluted EPS, adjusted(6)	$	0.50	$	0.52	$	0.51	$	0.22	$	0.19
Return on Average Tangible Common Equity
Net income applicable to common shares	$	46,625	$	54,080	$	51,697	$	19,414	$	17,840
Intangibles amortization		2,624			2,750			2,744			2,770			2,820
Tax effect of intangibles amortization		(656)			(688)			(686)			(693)			(705)
Total adjustments to net income(6)		7,466			2,723			4,110			4,858			3,937
Net income applicable to common shares, excluding intangibles amortization, adjusted(6)	$	56,059		$	58,865		$	57,865		$	26,349		$	23,892
Average stockholders' equity	$	2,241,569	$	2,327,279	$	2,359,197	$	2,415,157	$	2,443,212
Less: average intangible assets		(832,263)			(877,069)			(874,829)			(887,600)			(934,022)
Average TCE	$	1,409,306	$	1,450,210	$	1,484,368	$	1,527,557	$	1,509,190
ROATCE, adjusted(2)(6)
	15.95 %			16.10 %			15.47 %			6.94 %			6.37 %

Amounts in thousands, except per share data

Note: See the accompanying "Glossary of Terms" and "Footnotes" slides for definitions of certain terms used and footnotes.

20

NON-GAAP FINANCIAL INFORMATION

								Quarters Ended
		June 30,			September 30,			December 31,			March 31,			June 30,
		2019			2019			2019			2020			2020
Efficiency Ratio Calculation
Noninterest expense	$	114,142	$	108,395	$	116,748	$	117,331	$	120,330
Less:
Net OREO expense		(294)			(381)			(1,080)			(420)			(126)
A&I related expenses		(9,514)			(3,397)			(5,258)			(5,472)			(5,249)
Delivering Excellence implementation costs(5)		(442)			(234)			(223)			-			-
Total	$	103,892		$	104,383		$	110,187		$	111,439		$	114,955
Tax-equivalent NII(1)(7)
$	151,492	$	152,019	$	149,711	$	144,728	$	146,389
Noninterest income		38,526			42,951			46,496			39,362			32,991
Less: net securities losses		-			-			-			1,005			-
Total	$	190,018	$	194,970	$	196,207	$	185,095	$	179,380
Efficiency ratio		54.67 %			53.54 %			56.16 %			60.21 %			64.08 %
Tax-Equivalent NII / NIM
NII	$	150,312	$	150,787	$	148,359	$	143,575	$	145,234
Tax-equivalent adjustment		1,180			1,232			1,352			1,153			1,155
Tax-equivalent NII(2)(7)
	151,492			152,019			149,711			144,728			146,389
Less: accretion		(10,308)			(9,244)			(9,657)			(6,946)			(6,999)
Tax-equivalent NII, adjusted	$	141,184		$	142,775		$	140,054		$	137,782		$	139,390
Average interest-earning assets	$	14,952,044	$	15,800,915	$	15,969,287	$	16,431,320	$	18,776,796
NIM(2)(7)		4.06 %			3.82 %			3.72 %			3.54 %			3.13 %
NIM, adjusted(2)(7)		3.78 %			3.59 %			3.48 %			3.37 %			2.98 %
Loan Yield
Tax-equivalent loan interest income(7)	$	158,442	$	160,756	$	155,863	$	148,420	$	141,320
Less: accretion		(10,308)			(9,244)			(9,657)			(6,946)			(6,999)
Tax-equivalent loan interest income, adjusted	$	148,134		$	151,512		$	146,206		$	141,474		$	134,321
Average loans	$	12,022,470	$	12,539,541	$	12,753,436	$	13,073,752	$	14,617,247
Loan yield		5.29 %			5.09 %			4.85 %			4.57 %			3.89 %
Loan yield, excluding accretion		4.94 %			4.79 %			4.55 %			4.35 %			3.70 %

Amounts in thousands, except per share data

Note: See the accompanying "Glossary of Terms" and "Footnotes" slides for definitions of certain terms used and footnotes.

21

NON-GAAP FINANCIAL INFORMATION

								Quarters Ended
		June 30,			September 30,			December 31,			March 31,			June 30,
		2019			2019			2019			2020			2020
Tangible Common Equity
Stockholders' equity	$	2,300,573	$	2,339,599	$	2,370,793	$	2,435,707	$	2,425,711
Less: goodwill and other intangible assets		(878,802)			(876,219)			(875,262)			(935,241)			(940,182)
TCE	$	1,421,771		$	1,463,380		$	1,495,531		$	1,500,466		$	1,485,529
Total assets	$	17,462,233	$	18,013,454	$	17,850,397	$	19,753,300	$	21,244,881
Less: goodwill and other intangible assets		(878,802)			(876,219)			(875,262)			(935,241)			(940,182)
Tangible assets	$	16,583,431	$	17,137,235	$	16,975,135	$	18,818,059	$	20,304,699
TCE to tangible assets		8.57 %			8.54 %			8.81 %			7.97 %			7.32 %
Pre-Tax,Pre-Provision Earnings
Net Income	$	47,014	$	54,545	$	52,121	$	19,606	$	19,064
Income tax expense		16,191			18,300			16,392			6,468			6,182
Provision for credit losses		11,491			12,498			9,594			39,532			32,649
Pre-Tax,Pre-Provision Earnings	$	74,696	$	85,343	$	78,107	$	65,606	$	57,895
Adjustments to pre-tax,pre-provision earnings:
Net securities losses		-			-			-			1,005			-
A&I related expenses		9,514			3,397			5,258			5,472			5,249
Delivering Excellence implementation costs(5)		442			234			223			-			-
Total adjustments		9,956			3,631			5,481			6,477			5,249
Pre-Tax,Pre-Provision Earnings, adjusted	$	84,652	$	88,974	$	83,588	$	72,083	$	63,144

Amounts in thousands, except per share data

Note: See the accompanying "Glossary of Terms" and "Footnotes" slides for definitions of certain terms used and footnotes.

22

NON-GAAP FINANCIAL INFORMATION

								Quarters Ended
		June 30,			September 30,			December 31,			March 31,			June 30,
		2019			2019			2019			2020			2020
Allowance for Credit Losses to Total Loans
Allowance for credit losses	$	106,929	$	110,228	$	109,222	$	226,701	$	247,677
Less: allowance for PPP loans		-			-			-			-			-
Allowance for credit losses, excluding PPP loan allowance	$	106,929	$	110,228	$	109,222	$	226,701	$	247,677
Total loans	$	12,519,604	$	12,773,319	$	12,840,330	$	13,965,017	$	14,933,658
Less: PPP loans		-			-			-			-			(1,179,403)
Total loans, excluding PPP loans	$	12,519,604	$	12,773,319	$	12,840,330	$	13,965,017	$	13,754,255
Allowance to total loans, excluding PPP loans		0.85 %			0.86 %			0.85 %			1.62 %			1.80 %
Non-performing assets / Loans and Foreclosed assets
Non-performing assets	$	96,021	$	109,037	$	108,961	$	173,894	$	162,626
Less: non-accrual PCD loans		-			-			-			(48,950)			(45,116)
Non-performing assets, excluding non-accrual PCD loans	$	96,021	$	109,037	$	108,961	$	124,944	$	117,510
Total loans	$	12,519,604	$	12,773,319	$	12,840,330	$	13,965,017	$	14,933,658
Less:
PPP loans		-			-			-			-			(1,179,403)
PCD loans		-			-			-			(275,172)			(243,207)
Foreclosed assets		28,488			25,266			20,458			21,027			19,024
Total loans and foreclosed assets, excluding PCD and PPP loans	$	12,548,092	$	12,798,585	$	12,860,788	$	13,710,872	$	13,530,072
Non-performing assets and loans to foreclosed assets, excluding PCD and PPP		0.77 %			0.85 %			0.85 %			0.91 %			0.87 %
Net Charge-offs to average loans
Total net charge-offs	$	9,341	$	9,199	$	10,600	$	12,114	$	12,923
Less: net charge-offs for PCD loans		-			-			-			(1,720)			(3,833)
Total net charge-offs, excluding PCD loans	$	9,341	$	9,199	$	10,600	$	10,394	$	9,090
Total average loans	$	12,020,820	$	12,538,189	$	12,752,389	$	13,073,005	$	14,616,798
Less:
Average PPP loans		-			-			-			-			(887,997)
Average PCD loans		-			-			-			(165,906)			(177,138)
Total average loans, excluding PCD and PPP loans	$	12,020,820	$	12,538,189	$	12,752,389	$	12,907,099	$	13,551,663
Net charge-offs to loans, excluding PCD and PPP loans (2)
	0.31 %			0.29 %			0.33 %			0.32 %			0.27 %

Amounts in thousands, except per share data

Note: See the accompanying "Glossary of Terms" and "Footnotes" slides for definitions of certain terms used and footnotes.

23

GLOSSARY OF TERMS

Adverse loans - loans risk rated special mention or substandard, excluding accruing TDRs Allowance, ACL - Allowance for credit losses A&I - Acquisition and integration related expenses bn - Billion

bps - Basis points Bridgeview - Bridgeview Bank C&I - Commercial and industrial

CECL - Current Expected Credit Losses CET1 - Common equity Tier 1

CD - Certificate of deposit

Core Deposits - Represents demand, savings, NOW and money market deposits

CRE - Commercial real estate EPS - Earnings per share FICO - Fair Issac Corporation FHLB - Federal Home Loan Bank

First Midwest or the Company - First Midwest Bancorp, Inc. Foreclosed Assets - OREO and other foreclosed assets

FY - Full year

GAAP - U.S. generally accepted accounting principles GDP - Gross national product

HPI - House price index k - Thousands

LTV - Loan-to-value

1. - Million

NCOs - Net charge-offs

NII - Net interest income

NIM - Tax-equivalent net interest margin

NOW - Negotiable order of withdrawal

NPAs - Non-performing assets

Park - Park Bank

Pandemic - COVID-19 pandemic

PCD - Purchased credit deteriorated

1. - Paycheck Protection Program

PPPLF - Paycheck Protection Program Liquidity Facility OREO - Other real estate owned

QSR - Qualified special representative agreement QTD - Quarter-to-date

ROATCE - Return on average tangible common equity RWA - Risk-weighted assets

SBA - Small Business Administration SEC - Securities and Exchange Commission TBV - Tangible book value

TCE - Tangible common equity - represents common stockholders' equity less goodwill and identifiable intangible assets

TDRs - Troubled debt restructurings

24

FOOTNOTES

(1) This financial measure includes certain adjustments. See the accompanying "Non-GAAP Financial Information" slides for detail.

1. Annualized based on the actual number of days for each period presented.
2. Other noninterest income includes merchant servicing fees and other service charges, commissions, and fees.
3. Other noninterest expense includes advertising and promotions expense, net OREO expense, and other expenses.
4. The Company initiated certain actions in connection with its Delivering Excellence initiative in the second quarter of 2018, demonstrating the Company's ongoing commitment to provide service excellence to its clients and maximizing both the efficiency and scalability of its operating platform.
5. Adjustments to net income for each period presented are detailed in the EPS non-GAAP reconciliation in the accompanying "Non- GAAP Financial Information" slides.
6. Presented on a tax-equivalent basis, assuming the applicable federal income tax rate of 21%.

25