UPDATE: Miller Tabak Reiterates Sell Rating, Lowers PT on First Midwest Bancorp

In a report published Monday, Miller Tabak + Co. reiterated its Sell rating on First Midwest Bancorp (NASDAQ: FMBI), but slightly lowered its price target from $11.39 to $11.10.Miller Tabak noted, “Despite operating a solid deposit franchise that represents a very respectable estimated strategic takeover value -- $15.6/share -- First Midwest continues to lag far behind other regional banks in "cleaning up" its troubled assets from 3-4 years ago. With a 'deadweight ratio' of non-performing assets equal to 3.13% of earning assets, vs. 1.39% on average for our coverage group, and with a loss reserve/NPA ratio of just 52%, vs. a group average of 139%, FMBI has by far the ugliest credit quality profile of any bank we follow. In a reasonably strong and sustained economic recovery, these weak credit related measures could easily be seen as creating an opportunity for investors to climb aboard for the strong recovery, leading to a leap in realized EPS power. We agree that there is more recovery potential available as a result of FMBI's dismal credit record, but the sheer weakness of that record gives us pause.”First Midwest Bancorp closed on Friday at $13.10.