IPO Company Profile
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Midwest Banc Holdings, Inc.
501 West North Street, Melrose Park, IL 60160 * (708) 865-1053

The company is a community-based bank holding company. The Company provides a wide range of banking services, personal and corporate trust services, residential mortgage services and limited securities brokerage services.

Primary Underwriting Group
ManagerTierPhone
Howe Barnes Investments, Inc.Lead Manager (312) 655-2952

Offering Information
NASNTL:MBHI Financial: SIC 6036
Type of Shares:Common Shares Filing Date:12/19/97
U.S. Shares:1,100,000 Offer Date:2/23/98
Non-U.S. Shares:0 Filing Range:$13.00 - $15.00
Primary Shares:1,100,000 Offer Price:$15.00
Secondary Shares:0 Gross Spread:$1.05
Offering Amount: $15,400,000 Selling:$0.50
Expenses:$400,000 Reallowance:$0.25
Post-IPO Shares:11,115,898

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Vedder Price Kaufman & Kammholz
Bank's Law Firm: Chapman and Cutler
Registrar/Transfer Agent: Harris Trust & Savings Bank
Auditor: Crowe, Chizek and Company

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
12/31/96 9/30/97 9/30/96 9/30/97
Revenue:$57.30$49.66$42.11Assets:$878.76
Net Income:$7.31$6.28$5.50Curr Assets:
EPS:$0.73$0.63$0.56Liabilities:$827.76
Prior EPS:$0.60Curr Liab:
Cash Flow/Oper:$10.50$7.38$10.62Equity:$50.99
Cash Flow/Fin:$119.23$83.40$92.87Cash:$0.04
Cash Flow/Inv:-$130.83-$88.82

Competition
The Company and the Banks face strong direct competition for deposits, loans and other financial services from other commercial banks, thrifts, credit unions, stockbrokers and finance divisions of auto and farm equipment companies. Some of the competitors are local, while others are statewide or nationwide. Several major multibank holding companies currently operate in the Chicago metropolitan market. These financial institutions are generally much larger than the Company and have greater access to capital and other resources. Some of the financial institutions and financial services organizations with which the Company competes are not subject to the same degree of regulation as that imposed on bank holding companies, and federally insured, state-chartered banks and national banks. As a result, such nonbank competitors have advantages over the Company in providing certain services.

Use of Proceeds
The Company will use approximately $5.0 million of the net proceeds from the Offering for capital contributions to the banks to fund anticipated growth and expansion and will apply the remaining net proceeds from the Offering to reduce short-term borrowings under the Company's revolving line of credit.

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