The following excerpt is from the company's SEC filing.

April 25, 2017

- First Midwest Bancorp, Inc. (the "Company" or "First Midwest")

(NASDAQ NGS: FMBI)

, the holding company of First Midwest Bank (the "Bank"), today reported results of operations and financial condition for the

quarter of

. Net income for the

$22.9 million

per share. This compares to $20.7 million, or $0.25 per share, for the

fourth

quarter of 2016, and $18.0 million, or $0.23 per share, for the

Reported results were impacted by certain significant transactions, which include: acquisition and integration related expenses associated with completed and pending acquisitions (all periods presented) and the lease cancellation fee recognized as a result of the Company's planned 2018 corporate headquarters relocation (fourth quarter of 2016).

Excluding these certain significant transactions, earnings per share

, compared to $0.32 for the

quarter of 2016 and $0.27 for the

SELECT

QUARTER HIGHLIGHTS

Generated earnings per share, excluding certain significant transactions

, up 25% from the first quarter of 2016 and 6% from the fourth quarter of 2016.

Grew fee-based revenues to

$38 million

, an increase of

Improved efficiency ratio

, down from

for the first quarter of 2016 and

for the fourth quarter of 2016.

Increased net interest income to

$115 million

Reduced charge-offs net of recoveries, to average loans, annualized, to 12 basis points, down 45% from both the first and fourth quarters of 2016.

Completed the acquisitions of Standard Bancshares, Inc. on January 6, 2017, adding $1.8 billion in loans and $2.0 billion in deposits, and Premier Asset Management LLC on February 28, 2017, adding approximately $550 million in trust assets under management.

"We’ve had a great start to 2017," said Michael L. Scudder, President and Chief Executive Officer of the Company. "The quarter closed with total assets of nearly $14 billion, 20% larger than we ended 2016, principally due to our successful combination with Standard Bank & Trust in early January. Excluding attendant integration and organizational costs, earnings per share for the quarter grew by 25% as compared to a year ago. While dominated by acquired growth, the quarter reflects the benefits of improved margins, lower credit costs, and solid legacy performance across our business lines."

Mr. Scudder continued, "Our accomplishments are a testament to an engaged team of colleagues. Through their efforts, we have greatly enhanced our balance sheet, infrastructure, and, most importantly, our ability to serve the financial needs of our clients. With operational and systems integration activities largely behind us, our underlying business momentum is building. This momentum, combined with our strong capital foundation, positions us well to pursue opportunities to grow and perform for our shareholders."

These metrics are non-GAAP financial measures. For details on the calculation of these metrics, see the sections titled "Non-GAAP Financial Information" and "Non-GAAP Reconciliations" presented later in this release.

First Midwest Bancorp, Inc. | One Pierce Place | Suite 1500 | Itasca | Illinois | 60143

ACQUISITIONS

On January 6, 2017, the Company completed its acquisition of Standard Bancshares, Inc. ("Standard"), the holding company for Standard Bank and Trust Company. At the close of the acquisition, the Company acquired 35 banking offices located primarily in the southwest Chicago suburbs and adjacent markets in northwest Indiana, and added approximately $2.0 billion in deposits and $1.8 billion in loans. The merger consideration totaled $580.7 million and consisted of $533.6 million in Company common stock and $47.1 million in cash. All operating systems were converted during the first quarter of 2017.

On February 28, 2017, the Company completed its acquisition of Premier Asset Management LLC ("Premier"), a registered investment advisor based in Chicago, Illinois. At the close of the acquisition, the Company acquired approximately

$550.0 million

of trust assets under management. With this acquisition, the assets the Company collectively manages on behalf of its clients increased to nearly $10.0 billion, representing annualized revenues of approximately $40.0 million.

OPERATING PERFORMANCE

Net Interest Income and Margin Analysis

(Dollar amounts in thousands)

Quarters Ended

March 31, 2017

December 31, 2016

March 31, 2016

Average Balance

Yield/

Assets:

Other interest-earning assets

215,915

177,974

241,645

Securities

2,021,157

11,535

2,016,588

11,088

1,495,462

Federal Home Loan Bank ("FHLB") and

  Federal Reserve Bank ("FRB") stock

54,219

54,093

39,773

Loans

9,920,513

113,409

8,177,036

86,520

7,346,035

79,356

Total interest-earning assets

12,211,804

125,753

10,425,691

98,391

9,122,915

89,855

Cash and due from banks

176,953

145,807

133,268

Allowance for loan losses

(89,065

(89,401

(75,654

Other assets

1,373,433

898,011

876,316

Total assets

13,673,125

11,380,108

10,056,845

Liabilities and Stockholders' Equity:

Interest-bearing core deposits

5,837,150

4,971,630

4,607,738

Time deposits

1,515,597

1,213,048

1,183,463

Borrowed funds

734,091

617,975

303,232

Senior and subordinated debt

194,677

259,531

201,253

Total interest-bearing liabilities

8,281,515

7,062,184

6,295,686

Demand deposits

3,355,674

2,803,016

2,463,017

Total funding sources

11,637,189

9,865,200

8,758,703

Other liabilities

272,398

244,915

119,554

Stockholders' equity - common

1,763,538

1,269,993

1,178,588

Total liabilities and

  stockholders' equity

Tax-equivalent net interest

  income/margin

117,251

90,088

83,021

Tax-equivalent adjustment

(2,054

(2,064

(2,307

Net interest income (GAAP)

115,197

88,024

80,714

Impact of acquired loan accretion

11,345

Tax-equivalent net interest margin,

  excluding the impact of acquired loan

  accretion

105,906

87,425

80,598

Interest income and yields on tax-exempt securities and loans are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%. The corresponding income tax impact related to tax-exempt items is recorded in income tax expense. These adjustments have no impact on net income. For further details on the calculation of tax-equivalent net interest income, net interest income and margin (GAAP), and tax-equivalent net interest margin, excluding the impact of acquired loan accretion, see the sections titled "Non-GAAP Financial Information" and "Non-GAAP Reconciliations" presented later in this release.

See the Deposit Composition table presented later in this release for average balance detail by category.

Net interest income increased by

from the fourth quarter of 2016 and

compared to the first quarter of 2016. The rise in net interest income from both prior periods resulted primarily from the acquisition of interest-earning assets and acquired loan accretion from the Standard transaction early in the first quarter of 2017. Higher interest rates combined with increased levels of interest-earning assets from securities purchases and loan growth also contributed to the increase in net interest income compared to the first quarter of 2016.

Acquired loan accretion contributed $11.3 million, $2.7 million, and $2.4 million to net interest income for the first quarter of 2017, the fourth quarter of 2016, and the first quarter of 2016, respectively.

Tax-equivalent net interest margin for the current quarter was

, increasing 45 basis points from the fourth quarter of 2016 and 23 basis points from the first quarter of 2016. The rise in tax-equivalent net interest margin was impacted by a 28 basis point and 27 basis point increase in acquired loan accretion compared to the fourth and first quarters of 2016, respectively, due primarily to the Standard transaction. In addition, the impact of adding a greater mix of higher-yielding fixed-rate loans acquired from Standard contributed to the increase compared to both prior periods. Compared to the fourth quarter of 2016, tax-equivalent net interest margin also benefited from higher interest rates and a normalized level of senior and subordinated debt costs. Senior and subordinated debt costs were elevated in the fourth quarter of 2016 due to the timing of the issuance of subordinated notes and the subsequent repayment of maturing senior notes during the second half of 2016. Compared to the first quarter of 2016, the increases previously noted from Standard were partly offset by growth in the securities portfolio and the continued shift of loan originations and mix to lower-yielding floating rate loans.

For the first quarter of 2017, total average interest-earning assets rose $1.8 billion from the fourth quarter of 2016 and $3.1 billion from the first quarter of 2016. The increase compared to both prior periods resulted from interest-earning assets acquired in the Standard transaction early in the first quarter of 2017. In addition, the rise in average interest-earning assets compared to the first quarter of 2016 was impacted by organic loan growth, security purchases, and interest-earning assets acquired in the NI Bancshares Corporation ("NI Bancshares") transaction late in the first quarter of 2016.

Average funding sources increased by $1.8 billion from the fourth quarter of 2016 and $2.9 billion from the first quarter of 2016. The increase from both prior periods was impacted by deposits acquired in the Standard transaction early in the first quarter of 2017. Deposits acquired in the NI Bancshares transaction late in the first quarter of 2016 and the addition of FHLB advances during the second half of 2016 also contributed to the rise in average funding sources compared to the first quarter of 2016.

Fee-based Revenues and Total Noninterest Income Analysis

March 31, 2017 Percent Change From

Service charges on deposit accounts

11,365

10,315

Wealth management fees

Card-based fees

Merchant servicing fees

Mortgage banking income

Capital market products income

Other service charges, commissions, and fees

Total fee-based revenues

37,847

37,107

33,594

Net securities gains

(100.0

Other income

Total noninterest income

39,951

39,711

35,926

Total fee-based revenues of

$37.8 million

grew by $740,000, or

, compared to the fourth quarter of 2016 and by $4.3 million, or

, compared to the first quarter of 2016. Compared to the fourth quarter of 2016, growth in income resulted primarily from services provided to customers acquired in the Standard transaction, partially offset by a normal seasonal decline in service charges on deposit accounts and a reduction in mortgage banking and capital market products income. The increase in fee-based revenues compared to the first quarter of 2016 resulted primarily from services provided to customers acquired in the Standard transaction and the full-quarter impact of services provided to customers acquired in the NI Bancshares transaction late in the first quarter of 2016.

Mortgage banking income resulted from sales of

$54.6 million

of 1-4 family mortgage loans in the secondary market during the first quarter of 2017, down seasonally compared to $85.3 million in the fourth quarter of 2016, but up from sales of $38.7 million in the first quarter of 2016. In addition, mortgage banking income for the fourth quarter of 2016 benefited from an increase in the fair value of mortgage servicing rights, which fluctuate from quarter to quarter.

The decline in capital market products income compared to both prior periods was consistent with loan production during the first quarter of 2017.

Noninterest Expense Analysis

Salaries and employee benefits:

Salaries and wages

44,890

39,257

36,296

Retirement and other employee benefits

10,882

Total salaries and employee benefits

55,772

47,417

44,594

Net occupancy and equipment expense

12,325

10,774

Professional services

Technology and related costs

Merchant card expense

Advertising and promotions

Cardholder expenses

Net other real estate owned ("OREO") expense

Other expenses

Total noninterest expense excluding

  certain significant transactions

98,077

84,177

77,569

Acquisition and integration related expenses

18,565

Lease cancellation fee

116,642

92,669

82,589

Total noninterest expense, excluding certain significant transactions, is a non-GAAP financial measure. See the Non-GAAP Financial Information discussion for detail.

Total noninterest expense increased by

compared to the fourth and first quarters of 2016, respectively. Excluding certain significant transactions, total noninterest expense increased by

Operating costs associated with the Standard transaction contributed more than two-thirds of the increase in total noninterest expense, excluding certain significant transactions, from the fourth quarter of 2016. These costs primarily occurred in salaries and employee benefits, net occupancy and equipment expense, technology and related costs, professional services, cardholder expenses, and other expenses. Net OREO expense increased from the fourth quarter of 2016 due to higher resolutions of OREO properties that resulted in an increase in losses on sales of OREO and expenses.

Compared to the first quarter of 2016, approximately half of the increase in total noninterest expense, excluding certain significant transactions, resulted from operating costs associated with the Standard transaction and the full quarter impact of the NI Bancshares transaction completed late in the first quarter of 2016. Net OREO expense increased from the first quarter of 2016 due to higher valuation adjustments and a rise in expenses related to the resolution of certain properties.

Compared to both prior periods, compensation costs associated with merit increases, investments in additional talent to support growth, and higher loan remediation expenses contributed to the rise in salaries and employee benefits and professional services. The decrease in advertising and promotions expense from both prior periods resulted from the timing of certain advertising costs.

Acquisition and integration related expenses resulted from the acquisition of Standard and Premier during the first quarter of 2017 and NI Bancshares during the first quarter of 2016. These expenses fluctuate based on the size and timing of each transaction.

During the fourth quarter of 2016, a lease cancellation fee of $950,000 was recognized as a result of the Company's planned 2018 corporate headquarters relocation.

LOAN PORTFOLIO AND ASSET QUALITY

Loan Portfolio Composition

Legacy

December 31,

December 31, 2016

Commercial and industrial

2,855,259

515,521

3,370,780

2,827,658

2,634,391

Agricultural

394,855

27,929

422,784

389,496

422,231

Commercial real estate:

Office, retail, and

  industrial

1,542,831

446,148

1,988,979

1,581,967

1,566,572

Multi-family

634,500

37,210

671,710

614,052

562,084

Construction

453,001

115,459

568,460

451,540

260,743

Other commercial real

  estate

967,763

390,018

1,357,781

979,528

1,060,481

Total commercial real

3,598,095

988,835

4,586,930

3,627,087

3,449,880

Total corporate loans

6,848,209

1,532,285

8,380,494

6,844,241

6,506,502

Home equity

783,910

96,757

880,667

747,983

698,309

1-4 family mortgages

451,488

88,660

540,148

423,922

403,765

Installment

251,406

253,061

237,999

213,979

Total consumer loans

1,486,804

187,072

1,673,876

1,409,904

1,316,053

Total loans

8,335,013

1,719,357

10,054,370

8,254,145

7,822,555

Amount represents loans acquired in the Standard transaction, which was completed in the first quarter of 2017.

Total loans of

$10.1 billion

from December 31, 2016 and March 31, 2016, respectively. Excluding loans acquired in the Standard transaction of

$1.7 billion

, total loans grew modestly from December 31, 2016 and 6.6% from March 31, 2016. The addition of shorter-duration, floating rate home equity loans and the expansion of mortgage and installment loans drove the increase compared to December 31, 2016.

Compared to March 31, 2016, the increase in commercial and industrial loans resulted primarily from broad-based increases within our middle market and sector-based lending business units and multi-family loans increased due to organic growth. The rise in construction loans compared to March 31, 2016 was driven primarily by select commercial projects for which permanent financing is expected upon their completion. Growth in consumer loans compared to the first quarter of 2016 resulted from the continued expansion of mortgage and installment loans and the addition of shorter-duration, floating rate home equity loans.

Asset Quality

Asset quality

Non-accrual loans

54,294

59,289

31,890

90 days or more past due loans, still accruing

  interest

Total non-performing loans

56,927

64,298

37,725

Accruing troubled debt restructurings

  ("TDRs")

29,140

26,083

29,649

Total non-performing assets

88,179

92,672

70,076

30-89 days past due loans

23,641

21,043

30,142

Non-accrual loans to total loans

Non-performing loans to total loans

Non-performing assets to total loans plus

  OREO

Allowance for credit losses

88,163

86,083

77,150

Reserve for unfunded commitments

Total allowance for credit losses

89,163

87,083

78,375

Allowance for credit losses to total loans

Allowance for credit losses to loans, excluding

  acquired loans

Allowance for credit losses to non-accrual

  loans

164.22

146.88

245.77

Purchased credit impaired loans with an accretable yield are considered current and are not included in past due loan totals.

Excluding the impact of loans and OREO acquired in the Standard transaction, non-accrual loans to total loans, non-performing loans to total loans, and non-performing assets to total loans plus OREO were 0.65%, 0.68%, and 0.95%, respectively, at March 31, 2017.

This ratio includes acquired loans that are recorded at fair value through an acquisition adjustment, which incorporates credit risk as of the acquisition date with no allowance for credit losses being established at that time. As the acquisition adjustment is accreted into income over future periods, an allowance for credit losses on acquired loans is established as necessary to reflect credit deterioration.

Total non-performing assets represented

of total loans and OREO at March 31, 2017, down from

at December 31, 2016 and

at March 31, 2016. Included in non-performing assets as of March 31, 2017 was $8.4 million of OREO acquired in the Standard transaction.

Charge-Off Data

(Dollar amounts in thousands)

Net loan charge-offs

Office, retail, and industrial

Other commercial real estate

Consumer

Total net loan charge-offs

Total recoveries included above

Net loan charge-offs to average

  loans, annualized:

Quarter-to-date

Amounts represent charge-offs, net of recoveries.

Excluding the impact of loans acquired in the Standard transaction, net loan charge-offs to average loans, annualized, was 0.14% at March 31, 2017.

Net loan charge-offs to average loans, annualized were

, down from 0.22% for both quarters ended December 31, 2016 and March 31, 2016. Net loan charge-offs for the first quarter of 2017 include

$3.4 million

in recoveries, which relate primarily to three corporate loan relationships that were charged-off in prior periods.

DEPOSIT PORTFOLIO

Average for Quarters Ended

Savings deposits

2,029,631

1,633,010

1,575,174

NOW accounts

1,916,816

1,715,228

1,448,666

Money market accounts

1,890,703

1,623,392

1,583,898

Core deposits

9,192,824

7,774,646

7,070,755

Total deposits

10,708,421

8,987,694

8,254,218

Average core deposits of

$9.2 billion

for the first quarter of 2017 increased by

compared to the fourth and first quarters of 2016, respectively. The rise in average core deposits compared to both prior periods resulted from $1.5 billion in average core deposits assumed in the Standard transaction in the first quarter of 2017. This increase more than offset the normal seasonal decline in commercial and municipal deposits compared to the fourth quarter of 2016. In addition, compared to the first quarter of 2016, organic growth and the full-quarter impact of deposits assumed in the NI Bancshares transaction contributed to the increase.

CAPITAL MANAGEMENT

Capital Ratios

Company regulatory capital ratios:

Total capital to risk-weighted assets

Tier 1 capital to risk-weighted assets

Common equity Tier 1 ("CET1") to risk-weighted assets

Tier 1 capital to average assets

Company tangible common equity ratios

(1)(2)

Tangible common equity to tangible assets

Tangible common equity, excluding accumulated other comprehensive

  income ("AOCI"), to tangible assets

Tangible common equity to risk-weighted assets

These ratios are not subject to formal Federal Reserve regulatory guidance.

Tangible common equity ("TCE") represents common stockholders' equity less goodwill and identifiable intangible assets. For details of the calculation of these ratios, see the sections titled, "Non-GAAP Financial Information" and "Non-GAPP Reconciliations" presented later in this release.

Overall, the Company's regulatory capital ratios decreased compared to both prior periods due primarily to the Standard and Premier acquisitions. The issuance of $150.0 million of subordinated notes during the second half of 2016 more than offset the impact of these acquisitions and drove the increase in total capital to risk-weighted assets compared to March 31, 2016.

The Board of Directors approved a quarterly cash dividend of $0.09 per common share during the first quarter of 2017, which is consistent with the fourth quarter of 2016.

Conference Call

A conference call to discuss the Company's results, outlook, and related matters will be held on Wednesday, April 26, 2017 at 11:00 A.M. (ET). Members of the public who would like to listen to the conference call should dial (877) 507-0639 (U.S. domestic) or (412) 317-6003 (International) and ask for the First Midwest Bancorp, Inc. Earnings Conference Call. The number should be dialed 10 to 15 minutes prior to the start of the conference call. There is no charge to access the call. The conference call will also be accessible as an audio webcast through the Investor Relations section of the Company's website,

www.firstmidwest.com/investorrelations

. For those unable to listen to the live broadcast, a replay will be available on the Company's website or by dialing (877) 344-7529 (U.S. domestic) or (412) 317-0088 (International) conference ID 10103765 beginning one hour after completion of the live call until 9:00 A.M. (ET) on May 3, 2017. Please direct any questions regarding obtaining access to the conference call to First Midwest Bancorp, Inc. Investor Relations, via e-mail, at

investor.relations@firstmidwest.com.

Press Release and Additional Information Available on Website

This press release and the accompanying unaudited Selected Financial Information are available through the "Investor Relations" section of First Midwest's website at

Forward-Looking Statements

This press release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of words such as "may," "might," "will," "would," "should," "could," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "probable," "potential," "possible," "target," "continue," "look forward," or "assume" and words of similar import. Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and events may differ, possibly materially, from the anticipated results or events indicated in these forward-looking statements. Forward-looking statements are not guarantees of future performance, and First Midwest cautions you not to place undue reliance on these statements. Forward-looking statements are made only as of the date of this press release, and First Midwest undertakes no obligation to update any forward-looking statements contained in this press release to reflect new information or events or conditions after the date hereof.

Forward-looking statements may be deemed to include, among other things, statements relating to our future financial performance, the performance of our loan or securities portfolio, the expected amount of future credit reserves or charge-offs, corporate strategies or objectives, anticipated trends in our business, regulatory developments, acquisition transactions, including estimated synergies, cost savings and financial benefits of pending or consummated transactions, and growth strategies, including possible future acquisitions. These statements are subject to certain risks, uncertainties and assumptions. For a discussion of these risks, uncertainties and assumptions, you should refer to the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2016, as well as our subsequent filings made with the Securities and Exchange Commission. However, these risks and uncertainties are not exhaustive. Other sections of such reports describe additional factors that could adversely impact our business and financial performance.

The Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company's operating performance. These non-GAAP financial measures include earnings per share ("EPS"), excluding certain significant transactions, the efficiency ratio, total non-interest expense, excluding certain significant transactions, return on average assets, excluding certain significant transactions, tax-equivalent net interest income (including its individual components), tax-equivalent net interest margin, tax-equivalent net interest margin, excluding the impact of acquired loan accretion, tangible common equity to tangible assets, tangible common equity, excluding accumulated other comprehensive loss, to tangible assets, tangible common equity to risk-weighted assets, return on average tangible common equity, and return on average tangible common equity, excluding certain significant transactions.

The Company presents EPS, the efficiency ratio, total noninterest expense, return on average assets, and return on average tangible common equity, all excluding certain significant transactions. Certain significant transactions include acquisition and integration related expenses (all periods presented), a net gain related to a sale-leaseback transaction (third quarter of 2016), and the lease cancellation fee (fourth quarter of 2016). Management believes excluding these transactions from EPS, the efficiency ratio, total noninterest expense, return on average assets, and return on average tangible common equity are useful in assessing the Company's underlying operational performance since these transactions do not pertain to its core business operations and their exclusion facilitates better comparability between periods. Management believes that excluding acquisition and integration related expenses from these metrics is useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these transactions from these metrics enhances comparability for peer comparison purposes.

The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it enhances comparability for peer comparison purposes. In addition, management believes that the tax-equivalent net interest margin, excluding the impact of acquired loan accretion, enhances comparability for peer comparison purposes and is useful to the Company, as well as analysts and investors, since acquired loan accretion income may fluctuate significantly based on the size of each acquisition.

In management's view, tangible common equity measures are capital adequacy metrics meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from stockholders' equity and retain the effect of accumulated other comprehensive loss in stockholders' equity.

Although intended to enhance investors' understanding of the Company's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. See the previously provided tables and the following reconciliations in the "Non-GAAP Reconciliations" section for details on the calculation of these measures to the extent presented herein.

About the Company

First Midwest is a relationship-focused financial institution and one of the largest independent publicly-traded bank holding companies based on assets headquartered in the Midwest, with approximately $14 billion in assets and an additional $9.5 billion in trust assets under management. First Midwest's principal subsidiary, First Midwest Bank, and other affiliates provide a full range of commercial, equipment leasing, retail, wealth management, trust and private banking products and services through over 130 locations in metropolitan Chicago, northwest Indiana, central and western Illinois, and eastern Iowa. First Midwest's common stock is traded on the NASDAQ Stock Market under the symbol FMBI. First Midwest's website is

Contact Information

Investors:

Patrick S. Barrett

EVP, Chief Financial Officer

(630) 875-7273

pat.barrett@firstmidwest.com

Media:

James M. Roolf

SVP, Corporate Relations Officer

(630) 875-7533

jim.roolf@firstmidwest.com

Accompanying Unaudited Selected Financial Information

Consolidated Statements of Financial Condition (Unaudited)

September 30,

June 30,

Period-End Balance Sheet

174,268

155,055

139,538

149,957

135,049

Interest-bearing deposits in other banks

74,892

107,093

362,153

105,432

171,312

Trading securities, at fair value

19,130

17,920

18,351

17,693

17,408

Securities available-for-sale, at fair value

1,937,124

1,919,450

1,964,030

1,773,759

1,625,579

Securities held-to-maturity, at amortized cost

17,742

22,291

20,337

20,672

21,051

FHLB and FRB stock

46,306

59,131

53,506

44,506

40,916

Loans:

2,849,399

2,699,742

409,571

401,858

1,537,181

1,529,811

625,324

587,123

401,857

371,016

971,030

1,000,829

748,571

738,263

396,819

427,050

232,030

223,845

8,171,782

7,979,537

(88,163

(86,083

(85,308

(80,105

(77,150

Net loans

9,966,207

8,168,062

8,086,474

7,899,432

7,745,405

28,049

29,990

Premises, furniture, and equipment, net

140,653

82,577

82,443

140,554

141,323

Investment in BOLI

276,960

219,746

219,064

218,133

218,873

Goodwill and other intangible assets

754,621

366,876

367,961

369,962

369,979

Accrued interest receivable and other assets

336,428

278,271

236,291

225,720

212,378

13,773,471

11,422,555

11,578,197

10,995,810

10,728,922

Noninterest-bearing deposits

3,492,987

2,766,748

2,766,265

2,683,495

2,627,530

7,463,554

6,061,855

6,339,839

6,287,821

6,153,288

10,956,541

8,828,603

9,106,104

8,971,316

8,780,818

547,923

879,008

639,539

449,744

387,411

194,745

194,603

309,444

162,876

201,293

Accrued interest payable and other liabilities

269,529

263,261

253,846

160,985

134,835

1,804,733

1,257,080

1,269,264

1,250,889

1,224,565

Total liabilities and stockholders' equity

Stockholders' equity, excluding accumulated other

comprehensive income ("AOCI")

1,844,997

1,297,990

1,282,666

1,259,692

1,239,606

Stockholders' equity, common

Condensed Consolidated Statements of Income (Unaudited)

Income Statement

123,699

96,328

97,906

96,550

87,548

Interest expense

90,972

89,981

Provision for loan losses

Net interest income after provision for loan losses

110,279

82,717

80,974

81,896

73,121

10,169

38,466

35,934

Net gain on sale-leaseback transaction

45,853

37,822

37,872

37,916

46,372

46,267

10,755

82,888

81,354

Income before income tax expense

33,588

29,759

43,939

38,364

26,458

Income tax expense

10,733

15,537

13,097

22,855

20,718

28,402

25,267

17,962

Net income applicable to common shares

22,621

20,501

28,078

24,977

17,750

Net income applicable to common shares, excluding

certain significant transactions

33,760

25,596

25,476

25,348

20,762

Footnotes to Condensed Consolidated Statements of Income

Certain significant transactions include acquisition and integration related expenses associated with completed and pending acquisitions, the lease cancellation fee recognized as a result of the Company's planned 2018 corporate headquarters relocation, and a net gain on a sale-leaseback transaction.

Selected Financial Information (Unaudited)

(Amounts in thousands, except per share data)

As of or for the

Earnings Per Share

Basic earnings per common share ("EPS")

Diluted EPS

Diluted EPS, excluding certain significant transactions

(1) (5)

Common Stock and Related Per Common Share Data

Book value

Tangible book value

Dividends declared per share

Closing price at period end

Closing price to book value

Period end shares outstanding

102,757

81,325

81,324

81,312

81,298

Period end treasury shares

Common dividends

Key Ratios/Data

Return on average common equity

(1) (2)

Return on average tangible common equity

Return on average tangible common equity, excluding certain

significant transactions

(1) (2) (5)

Return on average assets

Return on average assets, excluding certain significant

transactions

Loans to deposits

Efficiency ratio

Net interest margin

Yield on average interest-earning assets

Cost of funds

Net noninterest expense to average assets

Effective income tax rate

Total capital to risk-weighted assets

Tier 1 capital to risk-weighted assets

CET1 to risk-weighted assets

Tier 1 capital to average assets

Tangible common equity to tangible assets

Tangible common equity, excluding AOCI, to tangible assets

Tangible common equity to risk-weighted assets

Note: Selected Financial Information footnotes are located at the end of this section.

Asset Quality Performance Data

21,514

29,938

13,823

19,505

17,277

17,670

16,815

10,910

Total non-accrual loans

44,289

37,312

90 days or more past due loans, still accruing interest

48,607

42,718

Accruing TDRs

79,024

75,199

26,140

23,380

86,308

81,505

Net charge-offs by category

Total net charge-offs

Asset Quality ratios

Non-performing assets to total loans plus OREO

Non-performing assets to tangible common equity plus allowance

for credit losses

Non-accrual loans to total assets

Allowance for credit losses and net charge-off ratios

Allowance for credit losses to loans, excluding acquired loans

Allowance for credit losses to non-accrual loans

194.87

218.44

Allowance for credit losses to non-performing loans

156.63

135.44

177.56

190.80

207.75

Net charge-offs to average loans

Footnotes to Selected Financial Information

See the Non-GAAP Reconciliations section for the detailed calculation.

Annualized based on the actual number of days for each period presented.

Presented on a tax-equivalent basis, which reflects federal and state tax benefits.

This ratio includes acquired loans that are recorded at fair value through an acquisition adjustment, which incorporates credit risk, as of the acquisition date with no allowance for credit losses being established at that time. As the acquisition adjustment is accreted into income over future periods, an allowance for credit losses is established on acquired loans as necessary to reflect credit deterioration.

Non-GAAP Reconciliations (Unaudited)

Net income applicable to non-vested restricted shares

Tax effect of acquisition and integration related expenses

(7,426

(3,017

(2,008

Tax effect of lease cancellation fee

(5,509

Tax effect of net gain on sale-leaseback transaction

Net income applicable to common shares, excluding certain

Weighted-average common shares outstanding:

Weighted-average common shares outstanding (basic)

100,411

80,415

80,396

80,383

77,980

Dilutive effect of common stock equivalents

Weighted-average diluted common shares outstanding

100,432

80,430

80,409

77,992

Basic EPS

Anti-dilutive shares not included in the computation of diluted EPS

Efficiency Ratio Calculation

Noninterest expense

(1,700

(1,122

(18,565

(7,542

(1,172

(5,020

96,377

83,252

81,403

79,614

76,905

Tax-equivalent net interest income

93,051

92,174

Fee-based revenues

Other income, excluding BOLI income

Tax-equivalent adjustment of BOLI

158,042

130,123

133,827

130,560

118,637

Note: Non-GAAP Reconciliations footnotes are located at the end of this section.

Tax-Equivalent Net Interest Income

Less: acquired loan accretion

(11,345

(2,663

(4,555

(4,927

(2,423

Tax-equivalent net interest income, excluding the impact of

acquired loan accretion

88,496

87,247

Average interest-earning assets

10,297,647

9,949,093

Net interest margin (GAAP)

Tax-equivalent net interest margin, excluding the impact of

acquired loan accretion

Risk-Based Capital Data

Common stock

Additional paid-in capital

1,022,417

498,937

496,918

495,159

493,153

Retained earnings

1,030,403

1,016,674

1,003,271

982,277

964,250

Treasury stock, at cost

(208,946

(218,534

(218,436

(218,657

(218,710

Goodwill and other intangible assets, net of deferred tax liabilities

(742,012

(356,477

(357,079

(358,582

(357,895

Disallowed deferred tax assets

(1,150

(2,263

(2,956

CET1 capital

1,101,835

941,315

925,204

898,847

878,755

Trust-preferred securities

50,690

Other disallowed deferred tax assets

(1,508

(1,970

1,152,238

991,873

975,639

948,029

927,475

Tier 2 capital

235,825

233,656

232,792

1,388,063

1,225,529

1,208,431

1,029,534

1,005,850

Risk-weighted assets

12,095,592

10,019,434

9,867,406

9,641,953

9,452,551

Adjusted average assets

12,965,450

11,036,835

10,959,119

10,608,085

9,700,671

Tangible Common Equity

Less: goodwill and other intangible assets

(754,621

(366,876

(367,961

(369,962

(369,979

1,050,112

890,204

901,303

880,927

854,586

Less: AOCI

40,264

40,910

13,402

15,041

1,090,376

931,114

914,705

889,730

869,627

Tangible assets

13,018,850

11,055,679

11,210,236

10,625,848

10,358,943

Return on Average Common and Tangible Common Equity

Intangibles amortization

Tax effect of intangibles amortization

Net income applicable to common shares, excluding intangibles

amortization

23,800

21,225

28,825

25,724

18,341

amortization and certain significant transactions

34,939

26,320

26,223

26,095

21,353

Average stockholders' equity

1,261,702

1,235,497

Less: average intangible assets

(415,521

(367,328

(369,281

(369,177

(346,549

Average tangible common equity

1,348,017

902,665

892,421

866,320

832,039

(1) (3)

Return on Average Assets

Net income, excluding certain significant transactions

33,994

25,813

25,800

25,638

20,974

Average assets

11,322,325

10,968,516

Footnotes to Non-GAAP Reconciliations

Presented on a tax-equivalent basis, which reflects federal and state tax benefits.

Annualized based on the actual number of days for each period presented.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

First Midwest Bancorp, Inc. Appoints MICHAEL L. SCUDDER AS CHAIRMAN OF THE BOARD AND J. STEPHEN VANDERWOUDE AS LEAD INDEPENDENT DIRECTOR - Nov. 15, 2017
Regulation FD - Nov. 7, 2017
First Midwest Bancorp Just Filed Its Quarterly Report: EARNINGS PER COMMON ... - Nov. 6, 2017
First Midwest Bancorp director just picked up 628 shares - Oct. 30, 2017
First Midwest Bancorp director just picked up 628 shares - Oct. 30, 2017

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