![]() ![]() Conversely, if the latest large credit mark taken in 3Q12 proves insufficient, or the Company doesn’t successfully execute on its various diversification efforts, the ratings could come under pressure. ![]() If the Company successfully executes on its strategic initiatives and returns to higher levels of consistent profitability, the ratings could be upgraded. These investments include the relaunching of First Midwest’s mortgage banking platform and the build out of its commercial and industrial lending platform including several asset-based lending niches that are all gaining traction. The Stable trend reflects the progress the Company has made in reducing its reliance on commercial real estate lending, working through problem assets and investments made in building the franchise. Moreover, restoring the full earnings power of the Company will take time given the still elevated levels of non-performing assets on the balance sheet primarily related to a still fragile Chicago-area real estate market, the low interest rate environment, and the increasing regulatory burden placed on all banks. While DBRS acknowledges the progress made by First Midwest in reducing the Company’s risk profile over the past several years, these remediation efforts have been more costly than we originally expected resulting in annual losses in three out of the past four years. The ratings action follows a detailed review of the Company’s operating results, financial fundamentals and future prospects. At the same time, DBRS confirmed the Bank’s Short-Term Instruments rating at R-2 (high). (First Midwest or the Company) and its primary banking subsidiary, First Midwest Bank (Bank), including the Company’s Issuer & Senior Debt rating to BBB (low) from BBB. ![]() (DBRS) has today downgraded most ratings of First Midwest Bancorp, Inc. ![]()
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