Midwest Banc Holdings, Inc.MBHI

James J. Giancola

JoAnn Sannasardo Lilek

August 2008

Any oral statements made by representatives of the Company or any written statements contained in any written documents provided at this presentation concerning financial and other projections constitute forward looking statements within the meaning of the Securities Exchange Act and are subject to the Safe Harbor created under that Act. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to be accurate. Important factors that could cause actual results to differ materially from the Company's expectations include those factors identified in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, copies of which are available upon request. Such publicly available information sets forth certain risks and uncertainties related to the Company's business, including but not limited to adverse changes in economic conditions, loan portfolio quality or interest rates, effects of competition, technological change or government regulation, loss of key management or inability to manage or attain growth objectives. These risks and uncertainties should be considered in evaluating “Forward Looking Statements.”

Forward Looking Statements

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Our Message Today Management enhancements

Capitalize on dislocation in Chicago market

Transformed into full-service bank

2Q08 highlights

Improving net interest margin

“Big Bank Relief”

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Chief Financial Officer JoAnn Sannasardo Lilek

23-year career at LaSalle ABN-AMRO reporting directly to Chairman

CFO DSC Logistics last 6 years Chair the Board of Trustees, Lou Holland Trust for

Holland Capital Management, L.P. President of the Board of Directors, YWCA Metropolitan

Chicago Member:

Chicago Finance Exchange Financial Executives International University of Chicago Women’s Business Group Executives’ Club of Chicago

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Other Management Enhancements Brogan Ptacin, EVP Head of Corporate Banking

9-year career EVP Royal American Corporation C&I Lending 12-year career American National, President of Melrose Park subsidiary

Jonathan P. Gilfillan, EVP Head of CRE Lending SVP Park National Bank 15-year career LaSalle National Bank, CRE lending

Susan K. Moll, SVP Financial Planning & Analysis 11-year career Bank of America (LaSalle) 14-year career with other money center banks

Additional key hires to be named

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Vital Statistics

Assets $3.7 billion

Shares 27.8 million

Market Cap (1) $166 million

(1) As of July 24, 2008.

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Serving Chicagoland: 29 Offices

McHenry

Union

Algonquin

Island Lake

Barrington Buffalo Grove

Inverness

Mount Prospect

Des Plaines

Glenview

Roselle

Bloomingdale

Bensenville

Addison Village

Naperville Downers Grove

Hinsdale

Melrose Park

Norridge

Elmwood Park

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6th Largest Independent Chicago Bank

Source: SNL; pro forma information as of June 2007

RankIndependent

Chicago Market Deposits MarketBank Share Institution State Offices ($ Billions) Share

1 Bank of America NC 198 39.1$ 15 % 6 %2 JPMorgan Chase NY 351 39.0 15 93 BMO Financial Group Canada 202 29.7 11 134 National City Corp. OH 133 10.7 4 125 Northern Trust IL 19 8.9 3 206 Fifth Third Bancorp OH 150 8.4 3 127 Corus Bankshares IL 14 8.4 3 100 (1)

8 Royal Bank of Scotland UK 133 7.8 3 19 Citigroup NY 68 7.6 3 1

1 10 Wintrust Financial IL 73 7.2 3 962 11 MB Financial IL 67 5.4 2 983 12 First Midw est Bancorp IL 89 5.2 2 88

13 FBOP IL 33 3.3 1 2814 TCF Financial MN 208 3.1 1 31

4 15 Metropolitan Bank Group IL 83 2.8 1 1005 16 PrivateBancorp IL 8 2.5 1 68

6 17 Midwest Banc Holdings IL 29 2.5 1 1007 18 Taylor Capital Group IL 13 2.5 1 100

19 U.S. Bancorp MN 55 2.4 1 28 20 Old Second Bancorp IL 37 2.3 1 969 21 American Charterd Bancorp IL 14 2.2 1 10010 22 First American Bank Corp IL 46 2.1 1 9211 23 Standard Bancshares IL 43 1.8 1 10012 24 West Suburban Bancorp IL 39 1.7 1 9913 25 Parkw ay Bancorp IL 22 1.6 1 97

Other (257 Institutions) 1,178 59.6 22

Total in Market 3,305 268.2$ 100 %

(1) At December 31, 2007, approximately 56% of the Bank's $7.4 billion in retail deposits (excluding brokered deposits) were sourced from outside of Illinois.

Percentof ParentDeposits

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The Chicago Opportunity Chicago MSA: 3rd largest in US based on deposits

If a state, the Chicago MSA would rank 5th in US

$268 billion in deposits

Rich diversity of small and middle market business

MBHI building a franchise to be bedrock of long-term shareholder value

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MBHI: Transforming from Thrift to Bank

Transitioning loan portfolio from 2004 “thrift” to “bank” model through two acquisitions.

17%

37%

10%

24% 12%

12/31/2004$1.1 Billion

6/30/2008$2.5 Billion

Commercial

CRE - Owner Occupied

CRE - Non Owner Occupied

Consumer

Construction

1-4 Family

In 2004 virtually none of CRE was owner occupied

Today, 45% of the CRE portfolio is owner occupied

8%

19%

25%

10% 18%

20%

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MBHI: Full-Service Bank

Personal Banking Full suite of deposit products Retail branch network

29 offices Allpoint ATM Network

32,000 nationwide NetTeller & Bill Pay Home / Consumer Loans

Small Business Cash management services Business lending

Commercial Real Estate, Industrial, and

Construction Lending Cash management Condo Property Management

Wealth Management Private banking Trust and asset management

Investment Services Brokerage

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Asset Quality Improving Asset quality ratios at lowest levels since late 2006

* Peer Group Consists of: AMFI, FMBI, MBFI, OSBC, PVTB, TAYC, WTFC

NALs / Loans

2.20%

1.99%1.90%

1.64%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

12/31/2006 12/31/2007 3/31/2008 6/30/2008

MBHI Peer Average *

NPAs / Assets

1.55%

1.39%1.33%

1.16%

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

12/31/2006 12/31/2007 3/31/2008 6/30/2008

MBHI Peer Average *

2nd Quarter Highlights

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Net Income $ 2.428 million

EPS $ .06

Net Interest Margin 2.89 %

NPAs / Assets 1.16 %

NCOs / Average Loans 0.35 %

Delinquencies 30-89 Days / Loans 0.35 %

Loan Growth (Annualized) 5 %

Total Risk Based Capital Ratio 10.4 %

2nd Quarter Results

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Big Bank Relief $37 million in new

loan relationships in the second quarter

Over the last month, $100+ million new retail customer deposits through recent campaign

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2.00%

4.00%

6.00%

8.00%

6/07 7/07 8/07 9/07 10/07 11/07 12/07 1/08 2/08 3/08 4/08 5/08 6/08

Yields, Costs and Margin

Cost Liabilities

NIM

* 6/07 and 6/08 figures represent second quarter following Guide 3** Monthly figures are computed based on actual days

Earning Assets

6.92%*

5.88%*

4.36%*

3.32%*3.05%*

2.89%*

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Revenue Potential

Margin

LoanCore Dep

25

26

27

28

29

$MM

$25MM Core Deposits $0.2

$100MM Loan $0.6 $0.6

10bps Margin $0.8 $0.8 $0.8

Total Revenue 2Q08 $27.2 $27.2 $27.2 $27.2

EPS Impact 2Q08 $0.02 $0.04 $0.05

2Q08 Potential Potential Potential

Looking Ahead…

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Continue to:

Strengthen management

Capitalize on dislocation in vibrant & over-banked Chicago marketplace

Improve credit quality and margin

Build on solid platform for growth

Critical Factors for Success

Jim GiancolaJoAnn Lilek

Questions?