First Midwest Bancorp, Inc. Declares Fourth Quarter Dividend

• Press Release
• Source: First Midwest Bancorp, Inc.
• On 7:00 am EST, Wednesday December 10, 2008

ITASCA, IL--(MARKET WIRE)--Dec 10, 2008 -- First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (NasdaqGS:FMBI - News), the holding company of First Midwest Bank, today announced that the Company will pay a cash dividend of $0.225 per share on its common stock for the fourth quarter of 2008, the dividend being payable on January 13, 2009 to stockholders of record as of the close of business on December 19, 2008. The fourth quarter dividend represents an annualized yield of 5.0% based on First Midwest's closing price on December 9, 2008. This payment represents a reduction of $0.085 per share or 27% from the dividend paid by the Company for the third quarter of 2008.

Related Quotes

Symbol	Price	Change
FMBI	11.01	+0.31

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"Modification of our dividend generates additional equity capital, fortifying our balance sheet as we position ourselves to successfully manage through what is expected to be a period of increasing economic challenge," said Michael L. Scudder, President and Chief Executive Officer. "Our decision to reduce the dividend was difficult, and while such actions have become more commonplace in the industry, it was only arrived at following a deliberate review of our capital plans and the operating environment. Consequently, we believe this action is both responsible and prudent given the reality of the times, our responsibility as a financial leader in our markets and the opportunities that lie ahead. When combined with the $193 million in preferred capital recently received though the Treasury's Capital Purchase Plan, the dividend modification increases our capital strength as well as our capacity to meet the financial needs of our customers. Accordingly, we believe this action is in the best long-term interest of the Company, our stockholders and our customers."

Mr. Scudder noted that this quarterly cash dividend represents the 104th consecutive quarterly dividend distribution since the Company's formation in 1983, and the first dividend reduction in the Company's history.

First Midwest is the premier relationship-based banking franchise in the growing Chicagoland banking market. As one of the Chicago metropolitan area's largest independent bank holding companies, First Midwest provides the full range of both business and retail banking and trust and investment management services through some 100 offices located in 62 communities, primarily in metropolitan Chicago. First Midwest was recently recognized by the Alfred P. Sloan Awards for Business Excellence in Workforce Flexibility in the greater Chicago Area.

     CONTACT:
     Paul F. Clemens
     EVP and CFO
     (630) 875-7347
     http://www.firstmidwest.com