First Midwest Bancorp, Inc. Announces 2014 First Quarter

ITASCA, IL--(Marketwired - Apr 22, 2014) - Today, First Midwest Bancorp, Inc. (the "Company" or "First Midwest") (NASDAQ: FMBI), the holding company of First Midwest Bank (the "Bank"), reported results of operations and financial condition for the first quarter of 2014. Net income applicable to common shares for the first quarter of 2014 was $17.4 million, or $0.24 per share. This compares to $14.4 million, or $0.20 per share, for the first quarter of 2013 and $18.9 million, or $0.26 per share, for the fourth quarter of 2013.

"Performance for the quarter was solid, reflecting continued progress on a number of our strategic priorities," said Michael L. Scudder, President and Chief Executive Officer of First Midwest Bancorp, Inc. "Results for the first quarter of 2014 were 20% improved over this same time last year, largely on the strength of diversified business growth, continued improvement in our credit profile, and lower operating overhead. Prior quarter comparisons reflected strong growth in our commercial lending and wealth management businesses, as well as stable net interest margins. However, the positive impact of these benefits was lessened in part by the operating impact of unusually harsh weather conditions in the Midwest."

Mr. Scudder continued, "We continue to deliver on our priorities of growing and diversifying our revenues while maintaining a disciplined risk profile. Loans grew 10% from the prior year quarter reflecting continued commercial sales. Over the same period, wealth management revenues improved 11%, with trust assets under management now standing at over $7 billion."

Mr. Scudder concluded, "Looking ahead, our expectations for continuing economic recovery and the strength of our core deposit funding, asset sensitivity, and capital foundation leave us well positioned to grow and return value to our shareholders."

SELECT HIGHLIGHTS

Generating Business Momentum

Grew total loans, excluding covered loans, by 10% from March 31, 2013 and 8% annualized from December 31, 2013.
Increased earnings per share by 20% compared to the first quarter of 2013.
Grew wealth management fees by 11% from March 31, 2013 and achieved 12.4% growth in assets under management to over $7 billion.
Maintained noninterest income at $27 million, consistent with the first and fourth quarters of 2013.
Maintained net interest margin of 3.61%, consistent with the fourth quarter of 2013.
Decreased noninterest expense by 2% compared to the first and fourth quarters of 2013, despite comparatively higher weather related occupancy costs of $705,000 and $1.2 million, respectively.

Improving Credit and Strengthening Capital

Decreased non-performing assets by 27% compared to March 31, 2013 and 12% compared to December 31, 2013.
Reduced performing potential problem loans by 21% compared to March 31, 2013.
Recorded annualized net loan charge-offs to average loans, excluding covered loans, of 0.48%, consistent with the full year of 2013.
Grew Tier 1 common capital to risk-weighted assets to 10.39% as of March 31, 2014, a 77 basis point improvement from March 31, 2013.

Net Interest Income and Margin Analysis

(Dollar amounts in thousands)

			Quarters Ended
			March 31, 2014						December 31, 2013						March 31, 2013
			Average Balance			Interest Earned/ Paid		Yield/ Rate (%)	Average Balance			Interest Earned/ Paid		Yield/ Rate (%)	Average Balance			Interest Earned/ Paid		Yield/ Rate (%)
Assets:
Other interest-earning assets			$	537,137		$	382	0.29	$	610,792		$	448	0.29	$	584,170		$	434	0.30
Trading securities				17,470			28	0.64		16,569			72	1.74		14,357			36	1.00
Investment securities ⁽¹⁾				1,167,803			10,403	3.56		1,211,868			10,582	3.49		1,175,063			9,940	3.38
Federal Home Loan Bank and Federal Reserve Bank stock				35,161			335	3.81		35,161			332	3.78		47,232			339	2.87
Loans ⁽¹⁾⁽²⁾				5,722,457			61,518	4.36		5,675,293			63,728	4.45		5,372,034			63,450	4.79
	Total interest-earning assets ⁽¹⁾			7,480,028			72,666	3.93		7,549,683			75,162	3.95		7,192,856			74,199	4.18
Cash and due from banks				111,500						123,128						110,073
Allowance for loan and covered loan losses				(86,726	)					(91,860	)					(99,086	)
Other assets				777,685						793,359						867,458
Total assets			$	8,282,487					$	8,374,310					$	8,071,301
Liabilities and Stockholders' Equity:
Interest-bearing transaction deposits			$	3,652,938			792	0.09	$	3,678,591			788	0.08	$	3,503,930			892	0.10
Time deposits				1,196,449			1,805	0.61		1,234,517			1,953	0.63		1,374,529			2,428	0.72
Borrowed funds				222,491			383	0.70		213,761			390	0.72		199,891			442	0.90
Senior and subordinated debt				190,949			3,015	6.40		207,162			3,301	6.32		214,796			3,435	6.49
Total interest-bearing liabilities				5,262,827			5,995	0.46		5,334,031			6,432	0.48		5,293,146			7,197	0.55
Demand deposits				1,928,289						1,956,570						1,740,825
Total funding sources				7,191,116						7,290,601						7,033,971
Other liabilities				75,969						87,250						89,270
Stockholders' equity - common				1,015,402						996,459						948,060
		Total liabilities and stockholders' equity	$	8,282,487					$	8,374,310					$	8,071,301
Net interest income/margin ⁽¹⁾						$	66,671	3.61				$	68,730	3.62				$	67,002	3.77

⁽¹⁾	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%. This non-GAAP financial measure assists management in comparing revenue from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income.

⁽²⁾	This item includes covered interest-earning assets consisting of loans acquired through the Company's Federal Deposit Insurance Corporation ("FDIC")-assisted transactions subject to loss sharing agreements and the related FDIC indemnification asset.

For the first quarter of 2014, average interest-earning assets decreased $69.7 million from the fourth quarter of 2013 driven by a decline in other interest-earning assets and investment securities, which was partially offset by growth in the loan portfolio. Compared to the first quarter of 2013, average interest-earning assets rose $287.2 million primarily from loan growth.

The decrease in total interest-bearing liabilities of $71.2 million from the fourth quarter of 2013 resulted from lower levels of time deposits and senior and subordinated debt, in addition to seasonal declines in interest-bearing transaction deposits. Compared to the first quarter of 2013, the reduction in time deposits and senior and subordinated debt more than offset the rise in interest-bearing transaction deposits.

Tax-equivalent net interest margin for the current quarter was 3.61%, remaining stable compared to the fourth quarter of 2013 and decreasing 16 basis points from the first quarter of 2013. Compared to both prior periods, the decline in the yield on loans reflects the continued shift in the loan mix to floating rate loans as well as the decline in higher yielding covered interest earning assets. The $2.1 million decline in net interest income from the linked quarter resulted from two fewer days in the quarter and the shift in the loan mix, which was mitigated by loan growth and an improved funding mix.

Noninterest Income Analysis

(Dollar amounts in thousands)


		Quarters Ended							March 31, 2014 Percent Change From
		March 31, 2014		December 31, 2013			March 31, 2013		December 31, 2013		March 31, 2013
Service charges on deposit accounts		$	8,020	$	9,259		$	8,677	(13.4	)	(7.6	)
Wealth management fees			6,457		6,202			5,839	4.1		10.6
Card-based fees			5,335		5,517			5,076	(3.3	)	5.1
Mortgage banking income			1,115		1,055			1,966	5.7		(43.3	)
Merchant servicing fees			2,709		2,585			2,554	4.8		6.1
Other service charges, commissions, and fees			1,413		2,094			1,646	(32.5	)	(14.2	)
	Total fee-based revenues		25,049		26,712			25,758	(6.2	)	(2.8	)
Net securities gains			1,073		147			--	N/M		N/M
Other income			937		897			781	4.5		20.0
Net trading gains ⁽¹⁾			191		1,057			1,036	(81.9	)	(81.6	)
Loss on early extinguishment of debt			--		(1,034	)		--	N/M		N/M
	Total noninterest income	$	27,250	$	27,779		$	27,575	(1.9	)	(1.2	)


N/M - Not meaningful.

⁽¹⁾	Net trading gains result from changes in the fair value of diversified investment securities held in a grantor trust under deferred compensation agreements and are substantially offset by nonqualified plan expense for each period presented.

Total noninterest income of $27.3 million was consistent with the fourth quarter and first quarter of 2013. For the linked quarters, growth in wealth management fees, mortgage banking income, and merchant servicing fees mitigated decreases in service charges on deposit accounts and fee income generated by sales of capital market products to commercial clients. New customer relationships drove the increase in wealth management fees as trust assets under management increased 5.7% to $7.1 billion compared to the fourth quarter of 2013. Seasonally lower volumes of non-sufficient funds ("NSF") transactions contributed to the decrease in service charges on deposit accounts. Additionally, the Company recorded a pre-tax securities gain of $1.1 million from the sale of a portion of its hedge fund investment.

Compared to the first quarter of 2013, growth in wealth management fees, card-based fees, merchant servicing fees, and net securities gains substantially offset decreases in NSF transactions, mortgage banking income, and fees from sales of capital market products. Wealth management fees grew due to a 12.4% increase in assets under management compared to the first quarter of 2013. During the first quarter of 2013, we sold $54.0 million of 1-4 family mortgage loans in the secondary market compared to $50.8 million in loans sold in the first quarter of 2014. Decreases in market pricing contributed to the decline in mortgage banking income compared to the first quarter of 2013.



Noninterest Expense Analysis
(Dollar amounts in thousands)

				Quarters Ended						March 31, 2014 Percent Change From
				March 31, 2014		December 31, 2013		March 31, 2013		December 31, 2013		March 31, 2013
Salaries and employee benefits:
	Salaries and wages			$	27,197	$	27,286	$	27,839	(0.3	)	(2.3	)
	Nonqualified plan expense ⁽¹⁾				186		1,305		1,124	(85.7	)	(83.5	)
	Retirement and other employee benefits				6,108		6,399		7,606	(4.5	)	(19.7	)
		Total salaries and employee benefits			33,491		34,990		36,569	(4.3	)	(8.4	)
Net occupancy and equipment expense					9,391		7,910		8,147	18.7		15.3
Professional services					5,389		5,592		5,218	(3.6	)	3.3
Technology and related costs					3,074		2,984		2,483	3.0		23.8
Net OREO expense					1,556		2,815		1,799	(44.7	)	(13.5	)
Advertising and promotions					1,613		2,144		1,410	(24.8	)	14.4
Merchant card expense					2,213		2,076		2,044	6.6		8.3
Cardholder expenses					1,014		1,019		929	(0.5	)	9.1
Other expenses					5,927		5,264		6,215	12.6		(4.6	)
			Total noninterest expense	$	63,668	$	64,794	$	64,814	(1.7	)	(1.8	)

⁽¹⁾	Nonqualified plan expense results from changes in the Company's obligation to participants under deferred compensation agreements and is substantially offset by earnings on related assets included in noninterest income.

Total noninterest expense for the first quarter of 2014 decreased nearly 2% compared to the fourth and first quarters of 2013.

The decrease in retirement and other employee benefits expense compared to both prior periods presented was primarily the result of changes to the Company's defined benefit pension plan instituted in the second quarter of 2013, partially offset by an increase in other employee benefit accruals.

Net occupancy and equipment expense rose compared to both prior periods presented due primarily to higher utilities and snow removal costs during the first quarter of 2014.

The decline in net OREO expense from both prior periods was driven by net gains on sales of OREO properties in the first quarter of 2014 compared to net losses on sales. Higher levels of OREO valuation adjustments recorded in the first quarter of 2014 partially offset the positive variance compared to the first quarter of 2013.

Advertising and promotions expense was elevated in the fourth quarter of 2013 due to the timing of certain advertising costs. The rise in advertising and promotions expense in the first quarter of 2014 compared to the first quarter of 2013 reflects our "Bank with Momentum" branding campaign that was launched in the second quarter of 2013.

A $770,000 reduction in the reserve for unfunded commitments in the fourth quarter of 2013 resulted in lower other expenses compared to the first quarter of 2014.

LOAN PORTFOLIO AND ASSET QUALITY



Loan Portfolio Composition
(Dollar amounts in thousands)

			As Of						March 31, 2014 Percent Change From
			March 31, 2014		December 31, 2013		March 31, 2013		December 31, 2013		March 31, 2013
Corporate
Commercial and industrial			$	1,917,396	$	1,830,638	$	1,659,872	4.7		15.5
Agricultural				321,343		321,702		274,991	(0.1	)	16.9
Commercial real estate:
	Office			454,962		459,202		465,279	(0.9	)	(2.2	)
	Retail			389,010		392,576		385,413	(0.9	)	0.9
	Industrial			504,122		501,907		493,564	0.4		2.1
	Multi-family			337,332		332,873		298,117	1.3		13.2
	Construction			181,012		186,197		176,242	(2.8	)	2.7
	Other commercial real estate			822,934		807,071		743,076	2.0		10.7
		Total commercial real estate		2,689,372		2,679,826		2,561,691	0.4		5.0
		Total corporate loans		4,928,111		4,832,166		4,496,554	2.0		9.6
Consumer
Home equity				475,103		427,020		379,352	11.3		25.2
1-4 family mortgages				240,561		275,992		263,286	(12.8	)	(8.6	)
Installment				49,315		44,827		36,079	10.0		36.7
		Total consumer loans		764,979		747,839		678,717	2.3		12.7
		Total loans, excluding covered loans		5,693,090		5,580,005		5,175,271	2.0		10.0
Covered loans				122,387		134,355		186,687	(8.9	)	(34.4	)
		Total loans	$	5,815,477	$	5,714,360	$	5,361,958	1.8		8.5

Total loans, excluding covered loans, of $5.7 billion rose by $113.1 million, or 8.1% on an annualized basis, from December 31, 2013 driven by strong growth in the commercial and industrial, other commercial real estate, and home equity portfolios, which more than offset the decline in the 1-4 family mortgages portfolio. In response to market conditions, the Company purchased $48.7 million of high-quality, shorter duration, floating rate home equity loans and sold $35.4 million of longer-term, fixed rate 1-4 family mortgages in the first quarter of 2014.

Compared to March 31, 2013, total loans, excluding covered loans, increased by 10.0%, or $517.8 million, from growth across the majority of the loan categories.

Overall, the loan portfolio continues to benefit from well-balanced growth reflecting credits of varying size, distributed across our market footprint. The Company experienced strong growth in the commercial and industrial and agricultural loan categories, reflecting the impact of greater resource investments and expansion into certain sector-based lending areas, such as agri-business, asset-based lending, and healthcare.



Asset Quality
(Dollar amounts in thousands)

			As Of									March 31, 2014 Percent Change From
			March 31, 2014			December 31, 2013			March 31, 2013			December 31, 2013		March 31, 2013
Asset quality, excluding covered loans and covered OREO
Non-accrual loans			$	64,217		$	59,798		$	95,397		7.4		(32.7	)
90 days or more past due loans				4,973			3,708			5,552		34.1		(10.4	)
	Total non-performing loans			69,190			63,506			100,949		9.0		(31.5	)
Accruing troubled debt restructurings ("TDRs")				6,301			23,770			2,587		(73.5	)	N/M
OREO				30,026			32,473			39,994		(7.5	)	(24.9	)
	Total non-performing assets		$	105,517		$	119,749		$	143,530		(11.9	)	(26.5	)
30-89 days past due loans			$	12,861		$	20,742		$	22,222		(38.0	)	(42.1	)
Performing potential problem loans:
	Special mention		$	84,908		$	77,564		$	121,041		9.5		(29.9	)
	Substandard			75,096			78,390			81,624		(4.2	)	(8.0	)
		Total performing potential problem loans ⁽¹⁾	$	160,004		$	155,954		$	202,665		2.6		(21.1	)
Non-accrual loans to total loans				1.13	%		1.07	%		1.84	%
Non-performing loans to total loans				1.22	%		1.14	%		1.95	%
Non-performing assets to loans plus OREO				1.84	%		2.13	%		2.75	%
Performing potential problem loans to total loans ⁽¹⁾				2.81	%		2.79	%		3.92	%

Allowance for Credit Losses
Allowance for loan losses			$	69,203		$	72,946		$	85,364		(5.1	)	(18.9	)
Allowance for covered loan losses				11,429			12,559			12,227		(9.0	)	(6.5	)
		Total allowance for loan and covered loan losses		80,632			85,505			97,591		(5.7	)	(17.4	)
Reserve for unfunded commitments				1,616			1,616			2,866		--		(43.6	)
		Total allowance for credit losses	$	82,248		$	87,121		$	100,457		(5.6	)	(18.1	)
Allowance for credit losses to loans, including covered loans				1.41	%		1.52	%		1.87	%
Allowance for credit losses to loans, excluding covered loans				1.24	%		1.34	%		1.70	%
Allowance for credit losses to non-accrual loans, excluding covered loans				110.28	%		124.69	%		92.49	%

N/M - Not meaningful.

⁽¹⁾	Total performing potential problem loans excludes accruing TDRs of $2.4 million as of March 31, 2014, $2.8 million as of December 31, 2013, and $1.3 million as of March 31, 2013.

Non-accrual loans, excluding covered loans, increased $4.4 million, or 7.4%, from December 31, 2013. This increase was largely driven by a single corporate loan relationship for which a specific reserve was established. Non-performing assets, excluding covered loans, decreased by $14.2 million, or 11.9%, from December 31, 2013, which resulted primarily from lower levels of accruing TDRs and OREO. Two accruing TDRs totaling $18.8 million were returned to performing status in the first quarter of 2014 due to sustained payment performance in accordance with their modified terms, which represent market rates at the time of restructuring.

Performing potential problem loans remained stable compared to the fourth quarter of 2013 and are at pre-recession levels.

Loans 30-89 days past due were $12.9 million at March 31, 2014, decreasing 38.0% from December 31, 2013.



Charge-Off Data
(Dollar amounts in thousands)

			Quarters Ended
			March 31, 2014			% of Total	December 31, 2013			% of Total		March 31, 2013			% of Total
Net loan charge-offs ⁽¹⁾:
	Commercial and industrial		$	1,367		20.5	$	2,528		50.0		$	996		14.6
	Agricultural			153		2.3		(58	)	(1.1	)		90		1.3
	Office, retail, and industrial			1,025		15.4		882		17.4			1,260		18.5
	Multi-family			89		1.3		(10	)	(0.2	)		160		2.3
	Construction			503		7.6		(934	)	(18.5	)		563		8.3
	Other commercial real estate			1,627		24.5		776		15.4			1,505		22.0
	Consumer			1,890		28.4		1,868		37.0			2,257		33.0
		Net loan charge-offs, excluding covered loans		6,654		100.0		5,052		100.0			6,831		100.0
Net covered loan charge-offs ⁽¹⁾				(340	)			271					698
		Total net loan charge-offs	$	6,314			$	5,323				$	7,529
Net loan charge-offs to average loans, excluding covered loans, annualized:
Quarter-to-date				0.48	%			0.36	%				0.54	%
Year-to-date				0.48	%			0.48	%				0.54	%

⁽¹⁾	Amounts represent charge-offs, net of recoveries.

Year-to-date, annualized net loan charge-offs to average loans, excluding covered loans, remained consistent at 0.48% compared to the full year of 2013 and decreased 11% compared to the first quarter of 2013.

CAPITAL MANAGEMENT



Capital Ratios
(Dollar amounts in thousands)

		March 31, 2014		December 31, 2013		March 31, 2013		Regulatory Minimum For "Well- Capitalized"		Excess Over Required Minimums at March 31, 2014
Regulatory capital ratios:
	Total capital to risk-weighted assets	12.20	%	12.39	%	12.05	%	10.00	%	22	%	$	153,885
	Tier 1 capital to risk-weighted assets	10.92	%	10.91	%	10.55	%	6.00	%	82	%	$	343,176
	Tier 1 leverage to average assets	9.53	%	9.18	%	8.75	%	5.00	%	91	%	$	362,356
Tier 1 common capital to risk-weighted assets ⁽¹⁾		10.39	%	10.37	%	9.62	%	N/A		N/A			N/A
Tangible common equity ratios ⁽²⁾:
	Tangible common equity to tangible assets	9.25	%	9.09	%	8.66	%	N/A		N/A			N/A
	Tangible common equity, excluding other comprehensive loss, to tangible assets	9.49	%	9.43	%	8.88	%	N/A		N/A			N/A
	Tangible common equity to risk-weighted assets	10.67	%	10.67	%	10.52	%	N/A		N/A			N/A
Non-performing assets to tangible common equity and allowance for credit losses		12.76	%	14.74	%	18.55	%	N/A		N/A			N/A

N/A - Ratio is not subject to formal Federal Reserve regulatory guidance.

⁽¹⁾	Excludes the impact of trust-preferred securities.

⁽²⁾	Tangible common equity ("TCE") represents common stockholders' equity less goodwill and identifiable intangible assets. In management's view, Tier 1 common capital and TCE measures are meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with competitors.

The slight decline in the total capital to risk-weighted assets ratio compared to December 31, 2013 was due to an increase in risk-weighted assets resulting from loan growth, which more than offset the increase in total capital from earnings for the first quarter of 2014 and the increase in allowable deferred tax assets. The tier 1 leverage to average assets ratio increased 35 basis points from December 31, 2013 driven by strong earnings, the increase in allowable deferred tax assets, and a reduction in average assets. The Company's regulatory ratios exceeded all regulatory mandated ratios for characterization as "well-capitalized" as of March 31, 2014.

About the Company

First Midwest is the premier relationship-based financial institution in the dynamic Chicagoland banking market. As one of Illinois' largest independent bank holding companies, First Midwest provides a full range of business and retail banking and wealth management services through approximately 90 banking offices located in metropolitan Chicago, northwest Indiana, central and western Illinois, and eastern Iowa. The Company website is www.firstmidwest.com.

Safe Harbor Statement

This press release may contain "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts but instead represent only the Company's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that actual results and the Company's financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect the Company's future results, see "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and other reports filed with the Securities and Exchange Commission. Forward-looking statements represent management's best judgment as of the date hereof based on currently available information. The Company undertakes no duty to update any forward-looking statements contained in this press release after the date hereof.

Conference Call

A conference call to discuss the Company's results, outlook, and related matters will be held on Wednesday, April 23, 2014 at 10:00 AM (ET). Members of the public who would like to listen to the conference call should dial (888) 317-6016 (U.S. domestic) or (412) 317-6016 (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 I.D. 10043720 beginning one hour after completion of the live call until 9:00 A.M. (ET) on April 30, 2014. 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.

Accompanying Financial Statements and Tables

Accompanying this press release is the following unaudited financial information:

Condensed Consolidated Statements of Financial Condition
Condensed Consolidated Statements of Income

Press Release and Additional Information Available on Website

This press release, the accompanying financial statements and tables, and certain additional unaudited Selected Financial Information are available through the "Investor Relations" section of First Midwest's website at www.firstmidwest.com/investorrelations.



Condensed Consolidated Statements of Financial Condition
Unaudited
(Amounts in thousands)

		March 31, 2014			December 31, 2013			March 31, 2013
Assets
Cash and due from banks		$	198,544		$	110,417		$	95,983
Interest-bearing deposits in other banks			393,768			476,824			457,333
Trading securities, at fair value			17,774			17,317			15,544
Securities available-for-sale, at fair value			1,080,750			1,112,725			1,246,679
Securities held-to-maturity, at amortized cost			43,251			44,322			31,443
Federal Home Loan Bank and Federal Reserve Bank stock, at cost			35,161			35,161			47,232
Loans, excluding covered loans			5,693,090			5,580,005			5,175,271
Covered loans			122,387			134,355			186,687
Allowance for loan and covered loan losses			(80,632	)		(85,505	)		(97,591	)
	Net loans		5,734,845			5,628,855			5,264,367
OREO, excluding covered OREO			30,026			32,473			39,994
Covered OREO			7,355			8,863			14,774
FDIC indemnification asset			15,537			16,585			28,958
Premises, furniture, and equipment			119,219			120,204			118,617
Investment in BOLI			193,673			193,167			206,706
Goodwill and other intangible assets			275,605			276,366			280,240
Accrued interest receivable and other assets			183,011			180,128			207,949
	Total assets	$	8,328,519		$	8,253,407		$	8,055,819
Liabilities and Stockholders' Equity
Noninterest-bearing deposits		$	1,961,371		$	1,911,602		$	1,738,110
Interest-bearing deposits			4,855,386			4,854,499			4,862,685
	Total deposits		6,816,757			6,766,101			6,600,795
Borrowed funds			223,699			224,342			208,854
Senior and subordinated debt			190,964			190,932			214,811
Accrued interest payable and other liabilities			76,674			70,590			77,908
	Total liabilities		7,308,094			7,251,965			7,102,368
Common stock			858			858			858
Additional paid-in capital			406,009			414,293			409,077
Retained earnings			866,132			853,740			800,343
Accumulated other comprehensive loss, net of tax			(19,772	)		(26,792	)		(16,889	)
Treasury stock, at cost			(232,802	)		(240,657	)		(239,938	)
	Total stockholders' equity		1,020,425			1,001,442			953,451
	Total liabilities and stockholders' equity	$	8,328,519		$	8,253,407		$	8,055,819



Condensed Consolidated Statements of Income
Unaudited
(Amounts in thousands, except per share data)

		Quarters Ended
		March 31, 2014			December 31, 2013			March 31, 2013
Interest Income
Loans, excluding covered loans		$	59,002		$	60,068		$	59,431
Covered loans			1,938			3,062			3,449
Investment securities			8,005			8,138			7,356
Other short-term investments			745			852			809
	Total interest income		69,690			72,120			71,045
Interest Expense
Deposits			2,597			2,741			3,320
Borrowed funds			383			390			442
Senior and subordinated debt			3,015			3,301			3,435
	Total interest expense		5,995			6,432			7,197
	Net interest income		63,695			65,688			63,848
Provision for loan and covered loan losses			1,441			--			5,674
	Net interest income after provision for loan and covered loan losses		62,254			65,688			58,174
Noninterest Income
Service charges on deposit accounts			8,020			9,259			8,677
Wealth management fees			6,457			6,202			5,839
Card-based fees			5,335			5,517			5,076
Mortgage banking income			1,115			1,055			1,966
Other service charges, commissions, and fees			4,122			4,679			4,200
Net securities gains			1,073			147			--
Other income			1,128			920			1,817
	Total noninterest income		27,250			27,779			27,575
Noninterest Expense
Salaries and employee benefits			33,491			34,990			36,569
Net occupancy and equipment expense			9,391			7,910			8,147
Professional services			5,389			5,592			5,218
Technology and related costs			3,074			2,984			2,483
Net OREO expense			1,556			2,815			1,799
Other expenses			10,767			10,503			10,598
Total noninterest expense			63,668			64,794			64,814
	Income before income tax expense		25,836			28,673			20,935
	Income tax expense		8,172			9,508			6,293
	Net income		17,664			19,165			14,642
Net income applicable to non-vested restricted shares			(225	)		(260	)		(212	)
	Net income applicable to common shares	$	17,439		$	18,905		$	14,430
Diluted earnings per common share		$	0.24		$	0.26		$	0.20
Dividends declared per common share		$	0.07		$	0.07		$	0.01
Weighted average diluted common shares outstanding			74,159			74,042			73,874

Contact Information:

CONTACT:

Paul F. Clemens
(Investors)
EVP and Chief Financial Officer
(630) 875-7347
paul.clemens@firstmidwest.com

James M. Roolf
(Media)
SVP and Corporate Relations Officer
(630) 875-7533
jim.roolf@firstmidwest.com

First Midwest Bancorp, Inc.
One Pierce Place, Suite 1500
Itasca, Illinois 60143-9768
(630) 875-7450
www.firstmidwest.com

First Midwest Bancorp, Inc. Announces 2014 First Quarter Results

EPS Up 20% - Improved Asset Quality - Strong Loan Growth - Lower Noninterest Expense