First Midwest Bancorp, Inc. Announces SECOND QUARTER RESULTS ITASCA, IL,

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

July 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

second

quarter of

. Net income for the

$35.0 million

per share. This compares to $22.9 million, or $0.23 per share, for the

quarter of 2017, and $25.3 million, or $0.31 per share, for the

Reported results for all periods presented were impacted by certain significant transactions, which include acquisition and integ ration related expenses associated with completed and pending acquisitions. Excluding these certain significant transactions, earnings per share

, compared to $0.34 for the

quarter of 2017 and $0.32 for the

SELECT

SECOND

QUARTER HIGHLIGHTS

Increased earnings per share to

, up 9% from the second quarter of 2016 and 3%, or 12% annualized, from the first quarter of 2017, excluding certain significant transactions

Improved return on average tangible common equity to

13.37%

, up from

11.94%

for the second quarter of 2016.

Grew loans to

$10.2 billion

from June 30, 2016 and 7% annualized from March 31, 2017.

Expanded net interest income to

$118 million

from the first quarter of 2017.

Increased net interest margin to

for the second quarter of 2016 and consistent with

for the first quarter of 2017. Excluding acquired loan accretion, net interest margin

grew 9 basis points to

Grew fee-based revenues to

$41 million

, an increase of

Improved efficiency ratio

, down from

for both the second quarter of 2016 and the first quarter of 2017.

Increased dividends per share to

, up 11% from the second quarter of 2016 and the first quarter of 2017.

"Performance for the quarter was strong, reflective of balanced delivery across our business," said Michael L. Scudder, President and Chief Executive Officer of the Company. "Earnings per share of $0.34 stood 10% higher from a year ago, benefiting from the expected revenue growth and improved operating efficiency accompanying our successful acquisition of Standard Bancshares in early January. Lending activity was solid, with late quarter closings providing added earnings momentum. At the same time, targeted efforts to expand and diversify our fee-based revenues are also evident, up 9% compared to last quarter."

Mr. Scudder concluded, "As we look ahead, we continue to navigate the backdrop of a more favorable rate environment as well as elevated market competition. As we do so, our focus remains centered on those actions that accrue to the long-term benefit of our shareholders – helping our clients to achieve financial success."

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

OPERATING PERFORMANCE

Net Interest Income and Margin Analysis

(Dollar amounts in thousands)

Quarters Ended

June 30, 2017

March 31, 2017

June 30, 2016

Average Balance

Yield/

Assets:

Other interest-earning assets

262,206

215,915

300,945

Securities

1,983,341

11,482

2,021,157

11,535

1,721,781

10,636

Federal Home Loan Bank ("FHLB") and

  Federal Reserve Bank ("FRB") stock

57,073

54,219

42,561

Loans

10,064,119

115,949

9,920,513

113,409

7,883,806

87,481

Total interest-earning assets

12,366,739

128,558

12,211,804

125,753

9,949,093

98,743

Cash and due from banks

188,886

176,953

154,693

Allowance for loan losses

(92,152

(89,065

(80,561

Other assets

1,497,370

1,373,433

945,291

Total assets

13,960,843

13,673,125

10,968,516

Liabilities and Stockholders' Equity:

Interest-bearing core deposits

6,025,167

5,837,150

4,941,779

Time deposits

1,538,845

1,515,597

1,277,694

Borrowed funds

553,046

734,091

461,363

Senior and subordinated debt

194,819

194,677

162,836

Total interest-bearing liabilities

8,311,877

8,281,515

6,843,672

Demand deposits

3,538,049

3,355,674

2,771,813

Total funding sources

11,849,926

11,637,189

9,615,485

Other liabilities

280,381

272,398

117,534

Stockholders' equity - common

1,830,536

1,763,538

1,235,497

Total liabilities and

  stockholders' equity

Tax-equivalent net interest

  income/margin

119,625

117,251

92,174

Tax-equivalent adjustment

(2,042

(2,054

(2,193

Net interest income (GAAP)

117,583

115,197

89,981

Impact of acquired loan accretion

11,345

Tax-equivalent net interest income/

  margin, excluding the impact of

  acquired loan accretion

110,868

105,906

87,247

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/margin, net interest income (GAAP), and tax-equivalent net interest income/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 2.1% from the first quarter of 2017 and 30.7% compared to the second quarter of 2016. The rise in net interest income compared to the first quarter of 2017 resulted primarily from higher interest rates and loan growth, partially offset by a decrease in acquired loan accretion. Compared to the second quarter of 2016, higher interest rates, combined with loan growth and the acquisition of interest-earning assets and acquired loan accretion from the Standard Bancshares, Inc. ("Standard") transaction early in the first quarter of 2017, contributed to the increase in net interest income.

Acquired loan accretion contributed

$8.8 million

$11.3 million

$4.9 million

to net interest income for the second quarter of 2017, the first quarter of 2017, and the second quarter of 2016, respectively.

Tax-equivalent net interest margin for the current quarter was

, consistent with the first quarter of 2017 and increasing by 16 basis points from the second quarter of 2016. Tax-equivalent net interest margin compared to the first quarter of 2017 was impacted by a 10 basis point decrease in acquired loan accretion, which was mostly offset by the positive impact of higher interest rates. The cost of total average interest-bearing liabilities was consistent with the first quarter of 2017. The increase in tax-equivalent net interest margin compared to the second quarter of 2016 was driven primarily by an 8 basis point increase in acquired loan accretion and higher interest rates.

For the second quarter of 2017, total average interest-earning assets rose by $154.9 million from the first quarter of 2017 and $2.4 billion from the second quarter of 2016. The increase compared to the first quarter of 2017 resulted from loan growth while the increase from the second quarter of 2016 reflected the impact of the Standard transaction, loan growth, and security purchases.

Total average funding sources increased by $212.7 million from the first quarter of 2017 and $2.2 billion from the second quarter of 2016. The increase compared to the first quarter of 2017 resulted from growth in core deposits which was partially offset by a decrease in FHLB advances. Compared to the second quarter of 2016, the rise in average funding sources was impacted by deposits acquired in the Standard transaction and the addition of FHLB advances.

Fee-based Revenues and Total Noninterest Income Analysis

June 30, 2017 Percent Change From

Service charges on deposit accounts

12,153

11,365

10,169

Wealth management fees

10,525

Card-based fees

Merchant servicing fees

Mortgage banking income

Capital market products income

Other service charges, commissions, and fees

Total fee-based revenues

41,228

37,847

35,934

Net securities gains

Other income

Total noninterest income

44,945

39,951

37,822

N/M - Not meaningful.

Total fee-based revenues of

$41.2 million

grew by $3.4 million, or

, compared to the first quarter of 2017 and by $5.3 million, or

, compared to the second quarter of 2016. The increase in fee-based revenues compared to the second quarter of 2016 resulted primarily from services provided to customers acquired in the Standard and Premier Asset Management LLC ("Premier") transactions completed in the first quarter of 2017.

Compared to the first quarter of 2017, the increase in service charges on deposit accounts was impacted by growth and seasonality in treasury management services and other consumer deposit transactions. The increase in wealth management fees benefited from the full quarter impact of the Premier acquisition completed late in the first quarter of 2017. The rise in card-based fees from the first quarter of 2017 reflects seasonally higher transaction volumes.

Mortgage banking income resulted primarily from sales of $59.5 million of 1-4 family mortgage loans in the secondary market during the second quarter of 2017, compared to $54.6 million in the first quarter of 2017 and $52.1 million in the second quarter of 2016. In addition, mortgage banking income for the second quarter of 2017 was impacted by a decrease in the fair value of mortgage servicing rights, which fluctuate from quarter to quarter. Growth in capital market products income for the second quarter of 2017 compared to both prior periods was driven by increased sales to commercial clients.

Total noninterest income of

$44.9 million

from the first quarter of 2017 and the second quarter of 2016, respectively. Other income increased in the second quarter of 2017 due to net gains from the disposition of branch properties and other miscellaneous items.

Noninterest Expense Analysis

Salaries and employee benefits:

Salaries and wages

44,194

44,890

37,916

Retirement and other employee benefits

10,381

10,882

Total salaries and employee benefits

54,575

55,772

46,267

Net occupancy and equipment expense

12,485

12,325

Professional services

Technology and related costs

Merchant card expense

Advertising and promotions

Cardholder expenses

Net other real estate owned ("OREO") expense

Other expenses

10,282

Total noninterest expense excluding

  certain significant transactions

98,577

98,077

80,736

Acquisition and integration related expenses

18,565

99,751

116,642

81,354

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 decreased by

compared to the first quarter of 2017 and increased by

compared to the second quarter of 2016. Excluding certain significant transactions, total noninterest expense was consistent with the first quarter of 2017 and increased by

The decrease in salaries and employee benefits compared to the first quarter of 2017 was driven primarily by higher levels of deferred salaries due to loan growth and a reduction in other salaries and benefits that fluctuate with organizational needs. Professional services increased compared to the first quarter of 2017 as a result of certain costs associated with organizational growth. The increase in advertising and promotions expense compared to the first quarter of 2017 resulted from the timing of certain advertising costs.

Compared to the second quarter of 2016, the increase in total noninterest expense, excluding certain significant transactions, largely resulted from operating costs associated with the Standard and Premier transactions, which impacted most expense categories. In addition, compensation costs associated with merit increases and investments in additional talent to support growth contributed to the rise in salaries and employee benefits. Professional services was impacted by higher loan remediation expenses and certain costs associated with organizational growth. The increase in net OREO expense compared to the second quarter of 2016 resulted primarily from higher valuation adjustments.

Acquisition and integration related expenses for the first and second quarters of 2017 resulted from the acquisitions of Standard and Premier completed during the first quarter of 2017. For the second quarter of 2016, acquisition and integration related expenses resulted from the acquisition of NI Bancshares Corporation completed during the first quarter of 2016. These expenses fluctuate based on the size and timing of each transaction.

LOAN PORTFOLIO AND ASSET QUALITY

Loan Portfolio Composition

June 30, 

March 31, 

Commercial and industrial

3,410,748

3,370,780

2,699,742

Agricultural

433,424

422,784

401,858

Commercial real estate:

Office, retail, and industrial

1,983,802

1,988,979

1,529,811

Multi-family

681,032

671,710

587,123

Construction

543,892

568,460

371,016

Other commercial real estate

1,383,937

1,357,781

1,000,829

Total commercial real estate

4,592,663

4,586,930

3,488,779

Total corporate loans

8,436,835

8,380,494

6,590,379

Home equity

865,656

880,667

738,263

1-4 family mortgages

614,818

540,148

427,050

Installment

314,850

253,061

223,845

Total consumer loans

1,795,324

1,673,876

1,389,158

Total loans

10,232,159

10,054,370

7,979,537

Total loans of

increased by 7.1% annualized, from March 31, 2017, and

from June 30, 2016. Excluding loans acquired in the Standard transaction of

$1.6 billion

as of June 30, 2017, total loans grew by 8.1% from June 30, 2016. The addition of 1-4 family mortgages and installment loans contributed to the increase in total loans compared to both prior periods. Growth in consumer loans was also impacted by the addition of shorter-duration, floating rate home equity loans compared to June 30, 2016.

Compared to both prior periods, growth in commercial and industrial loans, primarily within our sector-based lending business units, and multi-family loans contributed to the rise in total loans. Construction loans increased compared to June 30, 2016, driven primarily by select commercial projects for which permanent financing is expected upon their completion.

Asset Quality

Asset quality

Non-accrual loans

79,196

54,294

37,312

90 days or more past due loans, still accruing

  interest

Total non-performing loans

81,255

56,927

42,718

Accruing troubled debt restructurings

  ("TDRs")

26,493

29,140

29,990

Total non-performing assets

109,777

88,179

75,199

30-89 days past due loans

19,081

23,641

23,380

Non-accrual loans to total loans

Non-performing loans to total loans

Non-performing assets to total loans plus

  OREO

Allowance for credit losses

92,371

88,163

80,105

Reserve for unfunded commitments

Total allowance for credit losses

93,371

89,163

81,505

Allowance for credit losses to total loans

Allowance for credit losses to loans, excluding

  acquired loans

Allowance for credit losses to non-accrual

  loans

117.90

164.22

218.44

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

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 June 30, 2017, up from

at March 31, 2017 and

at June 30, 2016. Total OREO includes $6.9 million and $8.4 million as of June 30, 2017 and March 31, 2017, respectively, that was acquired in the Standard transaction during the first quarter of 2017.

Non-accrual loans increased by $24.9 million from March 31, 2017, due primarily to the transfer of two loan relationships from corporate performing potential problem loans to non-accrual status during the second quarter of 2017, driven by operating pressures unique to these borrowers. The Company has established specific reserves and implemented remediation plans associated with these borrowers.

Charge-Off Data

(Dollar amounts in thousands)

Net loan charge-offs

Consumer

Total net loan charge-offs

Total recoveries included above

Net loan charge-offs to average

  loans, annualized:

Quarter-to-date

Year-to-date

Amounts represent charge-offs, net of recoveries.

Net loan charge-offs to average loans, annualized were

, up from 0.12% for the first quarter of 2017 and down from 0.26% for the second quarter of 2016.

DEPOSIT PORTFOLIO

Average for the Quarters Ended

Savings deposits

2,072,343

2,029,631

1,655,566

NOW accounts

2,010,152

1,916,816

1,615,677

Money market accounts

1,942,672

1,890,703

1,670,536

Core deposits

9,563,216

9,192,824

7,713,592

Total deposits

11,102,061

10,708,421

8,991,286

Average core deposits of

$9.6 billion

for the second quarter of 2017 increased by

compared to the first quarter of 2017 and second quarter of 2016, respectively. The rise in average core deposits compared to the first quarter of 2017 resulted primarily from the seasonal increase in average municipal deposits of nearly $220.0 million and organic growth. Compared to the second quarter of 2016, the rise in average core deposits was primarily driven by deposits assumed in the Standard transaction which contributed $1.6 billion to average core deposits in the second quarter of 2017.

CAPITAL MANAGEMENT

Capital Ratios

December 31,

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.

The Company's regulatory capital ratios improved compared to March 31, 2017 as a result of an increase in retained earnings, offset partly by the impact of loan growth on risk-weighted assets. Overall, the Company's regulatory capital ratios decreased compared to December 31, 2016 and June 30, 2016 due 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 June 30, 2016.

The Board of Directors approved a quarterly cash dividend of $0.10 per common share during the second quarter of 2017, an increase from $0.09 per common share during the first quarter of 2017.

Conference Call

A conference call to discuss the Company's results, outlook, and related matters will be held on Wednesday, July 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 10110139 beginning one hour after completion of the live call until 9:00 A.M. (ET) on August 9, 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 noninterest 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 $10 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,

Period-End Balance Sheet

181,171

174,268

155,055

139,538

149,957

Interest-bearing deposits in other banks

103,181

74,892

107,093

362,153

105,432

Trading securities, at fair value

19,545

19,130

17,920

18,351

17,693

Securities available-for-sale, at fair value

1,908,248

1,937,124

1,919,450

1,964,030

1,773,759

Securities held-to-maturity, at amortized cost

17,353

17,742

22,291

20,337

20,672

FHLB and FRB stock

66,333

46,306

59,131

53,506

44,506

Loans:

2,827,658

2,849,399

389,496

409,571

1,581,967

1,537,181

614,052

625,324

451,540

401,857

979,528

971,030

747,983

748,571

423,922

396,819

237,999

232,030

8,254,145

8,171,782

(92,371

(88,163

(86,083

(85,308

(80,105

Net loans

10,139,788

9,966,207

8,168,062

8,086,474

7,899,432

26,083

28,049

Premises, furniture, and equipment, net

135,745

140,653

82,577

82,443

140,554

Investment in bank-owned life insurance ("BOLI")

278,353

276,960

219,746

219,064

218,133

Goodwill and other intangible assets

752,413

754,621

366,876

367,961

369,962

Accrued interest receivable and other assets

340,517

336,428

278,271

236,291

225,720

13,969,140

13,773,471

11,422,555

11,578,197

10,995,810

Noninterest-bearing deposits

3,525,905

3,492,987

2,766,748

2,766,265

2,683,495

7,473,815

7,463,554

6,061,855

6,339,839

6,287,821

10,999,720

10,956,541

8,828,603

9,106,104

8,971,316

639,333

547,923

879,008

639,539

449,744

194,886

194,745

194,603

309,444

162,876

Accrued interest payable and other liabilities

298,358

269,529

263,261

253,846

160,985

1,836,843

1,804,733

1,257,080

1,269,264

1,250,889

Total liabilities and stockholders' equity

Stockholders' equity, excluding accumulated other

comprehensive income ("AOCI")

1,873,410

1,844,997

1,297,990

1,282,666

1,259,692

Stockholders' equity, common

Condensed Consolidated Statements of Income (Unaudited)

Six Months Ended

Income Statement

126,516

123,699

96,328

97,906

96,550

250,215

184,098

Interest expense

17,435

13,403

88,024

90,972

232,780

170,695

Provision for loan losses

13,157

15,678

Net interest income after

provision for loan losses

109,344

110,279

82,717

80,974

81,896

219,623

155,017

accounts

10,315

23,518

19,642

20,185

16,201

16,948

14,310

income

commissions, and fees

37,107

38,466

79,075

69,528

Net gain on sale-leaseback

  transaction

39,711

45,853

84,896

73,748

benefits:

39,257

37,872

89,084

74,212

employee benefits

21,263

16,649

47,417

46,372

110,347

90,861

equipment expense

10,774

10,755

24,810

17,575

11,212

Net OREO expense

20,251

15,742

related expenses

19,739

Lease cancellation fee

92,669

82,888

216,393

163,943

Income before income tax

expense

54,538

33,588

29,759

43,939

38,364

88,126

64,822

Income tax expense

19,588

10,733

15,537

13,097

30,321

21,593

34,950

22,855

20,718

28,402

25,267

57,805

43,229

Net income applicable to

common shares

34,614

22,621

20,501

28,078

24,977

57,235

42,727

common shares, excluding

certain significant

transactions

35,318

33,760

25,596

25,476

25,348

69,078

46,110

Footnotes to Condensed Consolidated Statements of Income

Certain significant transactions that are recorded in various periods presented 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

102,741

102,757

81,325

81,324

81,312

Period end treasury shares

Common dividends

18,407

14,468

Key Ratios/Data

Return on average common

equity

Return on average tangible

common equity

common equity, excluding

(1) (2) (5)

Return on average assets

Return on average assets,

excluding certain significant

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

CET1 to risk-weighted assets

Tier 1 capital to average assets

tangible assets

excluding AOCI, to tangible

risk-weighted assets

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

Asset Quality Performance Data

51,400

21,514

29,938

13,823

15,031

19,505

17,277

17,670

16,815

Total non-accrual loans

59,289

44,289

still accruing interest

64,298

48,607

Accruing TDRs

92,672

79,024

21,043

26,140

commitments

losses

87,083

86,308

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

146.88

194.87

Allowance for credit losses to non-performing loans

114.91

156.63

135.44

177.56

190.80

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

(7,896

(2,255

Tax effect of lease cancellation

(5,509

Tax effect of net gain on sale-

leaseback transaction

Weighted-average common shares outstanding:

shares outstanding (basic)

101,743

100,411

80,415

80,396

80,383

101,081

79,182

Dilutive effect of common

stock equivalents

Weighted-average diluted

outstanding

101,763

100,432

80,430

80,409

101,101

79,194

Basic EPS

Anti-dilutive shares not included

in the computation of diluted

Efficiency Ratio Calculation

Noninterest expense

(1,631

(1,700

(1,122

(3,331

(1,786

(1,174

(18,565

(7,542

(1,172

(19,739

(5,638

96,946

96,377

83,252

81,403

79,614

193,323

156,519

income

90,088

93,051

236,876

175,195

Fee-based revenues

Other income, excluding

BOLI income

of BOLI

165,227

158,042

130,123

133,827

130,560

323,269

249,198

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

Tax-Equivalent Net Interest Income

Less: acquired loan accretion

(8,757

(11,345

(2,663

(4,555

(4,927

(20,102

(7,350

income, excluding the

impact of acquired loan

accretion

87,425

88,496

216,774

167,845

Average interest-earning assets

10,425,691

10,297,647

12,289,700

9,536,003

Net interest margin (GAAP)

margin

margin, excluding the impact of

acquired loan accretion

Risk-Based Capital Data

Common stock

Additional paid-in capital

1,025,607

1,022,417

498,937

496,918

495,159

Retained earnings

1,056,072

1,030,403

1,016,674

1,003,271

982,277

Treasury stock, at cost

(209,392

(208,946

(218,534

(218,436

(218,657

assets, net of deferred tax

liabilities

(740,236

(742,012

(356,477

(357,079

(358,582

Disallowed deferred tax assets

(1,150

(2,263

CET1 capital

1,132,702

1,101,835

941,315

925,204

898,847

Trust-preferred securities

50,690

Other disallowed deferred tax

(1,508

1,183,274

1,152,238

991,873

975,639

948,029

Tier 2 capital

240,121

235,825

233,656

232,792

1,423,395

1,388,063

1,225,529

1,208,431

1,029,534

Risk-weighted assets

12,180,416

12,095,592

10,019,434

9,867,406

9,641,953

Adjusted average assets

13,245,499

12,965,450

11,036,835

10,959,119

10,608,085

Tangible Common Equity

Less: goodwill and other

intangible assets

(752,413

(754,621

(366,876

(367,961

(369,962

1,084,430

1,050,112

890,204

901,303

880,927

Less: AOCI

36,567

40,264

40,910

13,402

1,120,997

1,090,376

931,114

914,705

889,730

Tangible assets

13,216,727

13,018,850

11,055,679

11,210,236

10,625,848

weighted assets

Return on Average Common and Tangible Common Equity

Intangibles amortization

Tax effect of intangibles

amortization

(1,651

intangibles amortization

35,912

23,800

21,225

28,825

25,724

59,712

44,065

and certain significant

36,616

34,939

26,320

26,223

26,095

71,555

47,448

Average stockholders' equity

1,269,993

1,261,702

1,797,222

1,207,043

Less: average intangible assets

(753,521

(750,589

(367,328

(369,281

(369,177

(752,063

(357,863

Average tangible common

1,077,015

1,012,949

902,665

892,421

866,320

1,045,159

849,180

(1) (3)

Return on Average Assets

Net income, excluding

  transactions

35,654

33,994

25,813

25,800

25,638

69,648

46,612

Average assets

11,380,108

11,322,325

13,817,779

10,512,680

excluding certain significant

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 director just disposed of 3,500 shares - Sept. 18, 2017
EVP of First Midwest Bancorp was just granted 7 restricted shares - Sept. 18, 2017
Report of proposed sale of securities - Sept. 15, 2017
EVP of First Midwest Bancorp was just granted 7 restricted shares - Sept. 5, 2017

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