Sterne Agee Lowering FMBI Estimates

Sterne Agee is lowering its 2011E on First Midwest Bancorp, Inc. FMBI to $0.30 (-$0.19), its 2012E to $0.90 (-$0.20) and its 2013E to $1.15 (-$0.15). “Estimate reductions are driven by a combination of higher operating expenses, less balance sheet growth, share issuance in the out years, and modestly higher credit cost assumptions (based on the expectation that some 2011 credit costs were pulled forward into 2010),” Sterne Agee writes. “Our 2011 provision assumption reflects a ~47% reduction to 1.5% of loans from 2.8% in 2010. We also are now assuming a common offering may be necessary to fully exit TARP in 2012.” First Midwest Bancorp currently trades at $12.09.