10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________ FORM 10-Q (Mark One)
[X]	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2012
or
[ ]	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________ to __________.
Commission File Number 0-10967 _______________ FIRST MIDWEST BANCORP, INC. (Exact name of registrant as specified in its charter)
Delaware (State or other jurisdiction of incorporation or organization)		36-3161078 (IRS Employer Identification No.)
One Pierce Place, Suite 1500 Itasca, Illinois 60143-9768 (Address of principal executive offices) (zip code) ______________ Registrant’s telephone number, including area code: (630) 875-7450 ______________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ].
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [ ].
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act). Large accelerated filer [X] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X].
As of May 10, 2012, there were 74,900,893 shares of $.01 par value common stock outstanding.

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FIRST MIDWEST BANCORP, INC.

FORM 10-Q

TABLE OF CONTENTS

		Page
Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Consolidated Statements of Financial Condition	6
	Condensed Consolidated Statements of Income	7
	Consolidated Statements of Comprehensive Income	8
	Consolidated Statements of Changes in Stockholders’ Equity	9
	Condensed Consolidated Statements of Cash Flows	10
	Notes to Condensed Consolidated Financial Statements	11
Item 2.	Management’s Discussion and Analysis of Financial Condition  and Results of Operations	40
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	67
Item 4.	Controls and Procedures	68
Part II.	OTHER INFORMATION
Item 1.	Legal Proceedings	68
Item 1A.	Risk Factors	69
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	69
Item 3.	Defaults Upon Senior Securities	69
Item 4.	Mine Safety Disclosures	69
Item 5.	Other Information	69
Item 6.	Exhibits	70

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GLOSSARY OF TERMS
First Midwest Bancorp, Inc. provides the following list of acronyms as a tool for the reader. The acronyms identified below are used in the Notes to Condensed Consolidated Financial Statements and in Management’s Discussion and Analysis of Financial Condition & Results of Operations.
ALCO	Asset Liability Committee
ATM	automated teller machine
Bank	First Midwest Bank (the Company’s wholly owned and principal operating subsidiary)
BOLI	Bank-owned life insurance
CDOs	collateralized debt obligations
CMOs	collateralized mortgage obligations
Code	the Code of Ethics and Standards of Conduct of First Midwest Bancorp, Inc.
Common Stock	shares of common stock of First Midwest Bancorp, Inc. $0.01 par value per share, which are traded on the Nasdaq Stock Market under the symbol “FMBI”
Company	First Midwest Bancorp, Inc.
CSV	cash surrender value
FASB	Financial Accounting Standards Board
FDIC	Federal Deposit Insurance Corporation
Federal Reserve	Board of Governors of the Federal Reserve system
FHLB	Federal Home Loan Bank
GAAP	U.S. generally accepted accounting principles
LIBOR	London Interbank Offered Rate
MBSs	Mortgage-backed securities
OREO	Other real estate owned or properties acquired through foreclosure in partial or total satisfaction of certain loans as a result of borrower defaults
OTTI	other-than-temporary impairment
SEC	U.S. Securities and Exchange Commission
TDR	Troubled Debt Restructurings
Treasury	U.S. Department of the Treasury
TRUPS	trust preferred junior subordinated debentures
VIE	variable interest entity

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INTRODUCTION

First Midwest Bancorp, Inc. (the “Company”, “we”, or “our”) is a bank holding company headquartered in the Chicago suburb of Itasca, Illinois with operations throughout the greater Chicago metropolitan area as well as northwest Indiana, central and western Illinois, and eastern Iowa. Our principal subsidiary is First Midwest Bank (the “Bank”), which provides a broad range of commercial and retail banking and wealth management services to consumer, commercial and industrial, and public or governmental customers. We are committed to meeting the financial needs of the people and businesses in the communities where we live and work by providing customized banking solutions, quality products, and innovative services that fulfill those financial needs.

AVAILABLE INFORMATION

We file annual, quarterly, and current reports; proxy statements; and other information with the U.S. Securities and Exchange Commission (“SEC”), and we make this information available free of charge on or through the investor relations section of our web site at www.firstmidwest.com/aboutinvestor_overview.asp. You may read and copy materials we file with the SEC from its Public Reference Room at 100 F. Street, NE, Washington, DC 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. In addition, the SEC maintains an Internet site at http://www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The following documents are also posted on our web site or are available in print upon the request of any stockholder to our Corporate Secretary:

·   Certificate of Incorporation,

·   Company By-laws,

·   Charters for our Audit, Compensation, and Nominating and Corporate Governance Committees,

·   Related Person Transaction Policies and Procedures,

·   Corporate Governance Guidelines,

·   Code of Ethics and Standards of Conduct (the “Code”), which governs our directors, officers, and employees, and

·   Code of Ethics for Senior Financial Officers.

Within the time period required by the SEC and the Nasdaq Stock Market, we will post on our web site any amendment to the Code and any waiver applicable to any executive officer, director, or senior financial officer (as defined in the Code). In addition, our web site includes information concerning purchases and sales of our securities by our executive officers and directors. The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and general practice within the banking industry. We post on our website any disclosure relating to certain non-GAAP financial measures (as defined in the SEC’s Regulation G) that we may make public orally, telephonically, by webcast, by broadcast, or by similar means from time to time.

Our Corporate Secretary can be contacted by writing to First Midwest Bancorp, Inc., One Pierce Place, Itasca, Illinois 60143, attention: Corporate Secretary. The Company’s Investor Relations Department can be contacted by telephone at (630) 875-7533 or by e-mail at investor.relations@firstmidwest.com.

CAUTIONARY STATEMENT PURSUANT TO THE PRIVATE SECURITIES

LITIGATION REFORM ACT OF 1995

We include or incorporate by reference in this Quarterly Report on Form 10-Q, and from time to time our management may make, statements that may constitute “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 management’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside our control. Although we believe the expectations reflected in any forward-looking statements are reasonable, it is possible that our actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in such statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “probable,” “potential,” or “continue,” and the negative of these terms and other comparable terminology. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this report or when made.

Forward-looking statements are subject to known and unknown risks, uncertainties, and assumptions and may contain projections relating to our future financial performance including our growth strategies and anticipated trends in our business. For a detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements, you should refer to our Annual Report on Form 10-K for the year ended December 31, 2011 and the sections entitled “Risk Factors” in Part II Item 1A of this report and “Management’s Discussion

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and Analysis of Results of Operations,” as well as our subsequent periodic and current reports filed with the SEC. However, these risks and uncertainties are not exhaustive. Other sections of this report describe additional factors that could adversely impact our business and financial performance.

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PART 1. FINANCIAL INFORMATION (Unaudited)

ITEM 1. FINANCIAL STATEMENTS

FIRST MIDWEST BANCORP, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Amounts in thousands, except per share data)

				March 31, 2012		December 31, 2011
Assets				(Unaudited)
Cash and due from banks				$	105,722	$	123,354
Interest-bearing deposits in other banks					380,651		518,176
Trading securities, at fair value					16,031		14,469
Securities available-for-sale, at fair value					1,183,975		1,013,006
Securities held-to-maturity, at amortized cost					56,319		60,458
Federal Home Loan Bank and Federal Reserve Bank stock, at cost					46,750		58,187
Loans, excluding covered loans					5,137,328		5,088,113
Covered loans					251,376		260,502
Allowance for loan losses					(116,264)		(119,462)
Net loans					5,272,440		5,229,153
Other real estate owned (“OREO”), excluding covered OREO					35,276		33,975
Covered OREO					16,990		23,455
Federal Deposit Insurance Corporation (“FDIC”) indemnification asset					58,488		65,609
Premises, furniture, and equipment					132,865		134,977
Accrued interest receivable					29,423		29,826
Investment in bank-owned life insurance (“BOLI”)					206,304		206,235
Goodwill and other intangible assets					282,815		283,650
Other assets					163,953		179,064
Total assets				$	7,988,002	$	7,973,594
Liabilities
Noninterest-bearing deposits				$	1,637,593	$	1,593,773
Interest-bearing deposits					4,848,770		4,885,402
Total deposits					6,486,363		6,479,175
Borrowed funds					202,155		205,371
Senior and subordinated debt					231,106		252,153
Payable for securities purchased					16,241		-
Accrued interest payable and other liabilities					79,436		74,308
Total liabilities					7,015,301		7,011,007
Stockholders’ Equity
Preferred stock					-		-
Common stock					858		858
Additional paid-in capital					413,742		428,001
Retained earnings					817,630		810,487
Accumulated other comprehensive loss, net of tax					(10,919)		(13,276)
Treasury stock, at cost					(248,610)		(263,483)
Total stockholders’ equity					972,701		962,587
Total liabilities and stockholders’ equity				$	7,988,002	$	7,973,594
	March 31, 2012			December 31, 2011
	Preferred Shares	Common Shares		Preferred Shares		Common Shares
Par Value	None	$	0.01	None		$		0.01
Shares authorized	1,000		100,000	1,000				100,000
Shares issued	-		85,787	-				85,787
Shares outstanding	-		74,898	-				74,435
Treasury shares	-		10,889	-				11,352
See accompanying notes to unaudited condensed consolidated financial statements.

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FIRST MIDWEST BANCORP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share data)

(Unaudited)

	Quarters Ended March 31,
	2012		2011
Interest Income
Loans	$	61,491	$	62,917
Investment securities		8,934		9,865
Covered loans		4,202		7,822
Federal funds sold and other short-term investments		641		679
Total interest income		75,268		81,283
Interest Expense
Deposits		5,513		7,671
Borrowed funds		515		680
Senior and subordinated debt		4,058		2,286
Total interest expense		10,086		10,637
Net interest income		65,182		70,646
Provision for loan losses		18,210		19,492
Net interest income after provision for loan losses		46,972		51,154
Noninterest Income
Service charges on deposit accounts		8,660		8,144
Wealth management fees		5,392		5,053
Other service charges, commissions, and fees		3,520		3,977
Card-based fees		5,020		4,529
Total fee-based revenues		22,592		21,703
Net securities (losses) gains (reclassified from other comprehensive income)		(943)		540
Net trading gains		1,401		744
Other		1,639		1,230
Total noninterest income		24,689		24,217
Noninterest Expense
Salaries and wages		27,257		25,665
Retirement and other employee benefits		6,793		7,153
Net OREO expense		1,864		3,931
Net occupancy and equipment expense		8,331		9,103
Technology and related costs		2,858		2,623
Professional services		5,629		5,119
FDIC premiums		1,719		2,725
Other expenses		8,162		9,099
Total noninterest expense		62,613		65,418
Income before income tax expense (benefit)		9,048		9,953
Income tax expense (benefit)		1,156		(91)
Net income		7,892		10,044
Preferred dividends and accretion on preferred stock		-		(2,581)
Net income applicable to non-vested restricted shares		(139)		(137)
Net income applicable to common shares	$	7,753	$	7,326
Per Common Share Data
Basic earnings per common share	$	0.11	$	0.10
Diluted earnings per common share	$	0.11	$	0.10
Dividends declared per common share	$	0.01	$	0.01
Weighted-average common shares outstanding		73,505		73,151
Weighted-average diluted common shares outstanding		73,505		73,151
See accompanying notes to unaudited condensed consolidated financial statements.

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FIRST MIDWEST BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands)

(Unaudited)

	Quarters Ended March 31,
	2012		2011
Net income	$	7,892	$	10,044
Available-for-sale securities
Unrealized holding gains:
Before tax		2,899		6,040
Tax effect		(1,099)		(2,355)
Net of tax		1,800		3,685
Less: reclassification of net (losses) gains included in net income:
Before tax		(943)		540
Tax effect		386		(221)
Net of tax		(557)		319
Net unrealized holding gains		2,357		3,366
Total other comprehensive income		2,357		3,366
Total comprehensive income	$	10,249	$	13,410

	Accumulated Unrealized (Loss) Gain on Securities Available-  for-Sale		Unrecognized Net Pension Costs		Total Accumulated Other Comprehensive Loss
Balance at January 1, 2011	$	(19,806)	$	(7,933)	$	(27,739)
Other comprehensive income		3,366		-		3,366
Balance at March 31, 2011	$	(16,440)	$	(7,933)	$	(24,373)
Balance at January 1, 2012	$	(354)	$	(12,922)	$	(13,276)
Other comprehensive income		2,357		-		2,357
Balance at March 31, 2012	$	2,003	$	(12,922)	$	(10,919)

See accompanying notes to unaudited condensed consolidated financial statements.

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FIRST MIDWEST BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Amounts in thousands, except per share data)

(Unaudited)

	Common Shares Outstanding	Preferred Stock		Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total
Balance at January 1, 2011	74,096	$	190,882	$	858	$	437,550	$	787,678	$	(27,739)	$	(277,184)	$	1,112,045
Comprehensive income									10,044		3,366				13,410
Common dividends declared   ($0.01 per common share)	-		-		-		-		(746)		-		-		(746)
Preferred dividends declared   ($12.50 per preferred share)	-		-		-		-		(2,413)		-		-		(2,413)
Accretion on preferred stock	-		168		-		-		(168)		-		-		-
Share-based compensation   expense	-		-		-		1,625		-		-		-		1,625
Restricted stock activity	449		-		-		(16,760)		-		-		16,552		(208)
Treasury stock purchased for   benefit plans	(2)		-		-		(10)		-		-		(1)		(11)
Balance at March 31,  2011	74,543	$	191,050	$	858	$	422,405	$	794,395	$	(24,373)	$	(260,633)	$	1,123,702
Balance at January 1, 2012	74,435	$	-	$	858	$	428,001	$	810,487	$	(13,276)	$	(263,483)	$	962,587
Comprehensive income	-		-		-		-		7,892		2,357		-		10,249
Common dividends declared   ($0.01 per common share)	-		-		-		-		(749)		-		-		(749)
Share-based compensation   expense	-		-		-		1,533		-		-		-		1,533
Restricted stock activity	464		-		-		(15,777)		-		-		14,853		(924)
Treasury stock purchased for   benefit plans	(1)		-		-		(15)		-		-		20		5
Balance at March 31, 2012	74,898	$	-	$	858	$	413,742	$	817,630	$	(10,919)	$	(248,610)	$	972,701

See accompanying notes to unaudited condensed consolidated financial statements.

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FIRST MIDWEST BANCORP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar amounts in thousands) (Unaudited)
	Quarters Ended March 31,
	2012		2011
Net cash provided by operating activities	$	67,862	$	52,953
Investing Activities
Proceeds from maturities, repayments, and calls of securities available-for-sale		81,049		75,166
Proceeds from sales of securities available-for-sale		2,662		44,212
Purchases of securities available-for-sale		(254,881)		(115,792)
Proceeds from maturities, repayments, and calls of securities held-to-maturity		8,050		2,516
Purchases of securities held-to-maturity		(3,911)		(2,414)
Proceeds from the redemption of Federal Home Loan Bank stock		11,437		-
Net (increase) decrease in loans		(66,671)		2,019
Proceeds from claims on BOLI		239		7
Proceeds from sales of OREO		17,156		8,239
Purchases of premises, furniture, and equipment		(536)		(476)
Net cash (used in) provided by investing activities		(205,406)		13,477
Financing Activities
Net increase (decrease) in deposit accounts		7,188		(91,582)
Net decrease in borrowed funds		(3,216)		(30,632)
Payments for the retirement of subordinated debt		(20,004)		-
Cash dividends paid		(746)		(3,155)
Restricted stock activity		(728)		(165)
Excess tax expense related to share-based compensation		(107)		(212)
Net cash used in financing activities		(17,613)		(125,746)
Net decrease in cash and cash equivalents		(155,157)		(59,316)
Cash and cash equivalents at beginning of period		641,530		585,776
Cash and cash equivalents at end of period	$	486,373	$	526,460
Supplemental Disclosures:
Non-cash transfers of loans to OREO	$	12,295	$	12,433
Non-cash transfer of loans held-for-investment to loans held-for-sale		1,500		3,800
Non-cash transfer of loans held-for-sale to loans held-for-investment		1,500		-
Dividends declared but unpaid		749		746
See accompanying notes to unaudited condensed consolidated financial statements.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation – The accompanying unaudited condensed consolidated interim financial statements of First Midwest Bancorp, Inc. (the “Company”), a Delaware corporation, were prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for quarterly reports on Form 10-Q. The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles (“GAAP”) and general practice within the banking industry. The accompanying statements do not include certain information and footnote disclosures required by GAAP for complete annual financial statements. Accordingly, these financial statements should be read in conjunction with the Company’s 2011 Annual Report on Form 10-K (“2011 10-K”).

The accompanying unaudited condensed consolidated interim financial statements were prepared in accordance with GAAP and reflect all adjustments that management deems necessary for the fair presentation of the financial position and results of operations for the periods presented. All such adjustments are of a normal recurring nature. The results of operations for the quarter ended March 31, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.

The Company uses the accrual basis of accounting for financial reporting purposes. Certain reclassifications were made to prior year amounts to conform to the current year presentation.

First quarter 2011 results were restated in the Condensed Consolidated Statements of Income to correct a 2011 actuarial pension expense calculation related to the valuation of future early retirement benefits. First quarter 2011 pension expense was increased by $295,000 and income tax expense was reduced by $121,000. The net effect was a reduction to income of $174,000, which had no impact on earnings per common share for first quarter 2011. In addition, there was a corresponding $174,000 reduction to retained earnings in the Consolidated Statements of Changes in Stockholders’ Equity.

Use of Estimates – The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates.

Principles of Consolidation – The accompanying consolidated financial statements include the accounts and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements.

The Company owns an interest in certain variable interest entities (“VIEs”) as described in Note 22, “Variable Interest Entities,” contained in the Company’s 2011 10-K. A VIE is a partnership, limited liability company, trust, or other legal entity that (i) does not have sufficient equity to finance its activities without additional subordinated financial support from other parties or (ii) has investors that lack certain characteristics associated with owning a controlling financial interest. The VIEs are not consolidated in the Company’s financial statements since the Company is not the primary beneficiary of any of the VIEs.

The accounting policies related to loans, the allowance for credit losses, and comprehensive income are presented below. For a summary of all other significant accounting policies, please refer to Note 1, “Summary of Significant Accounting Policies,” contained in the Company’s 2011 10-K.

Loans – Loans are carried at the principal amount outstanding, including certain net deferred loan origination fees. Loans held-for-sale are carried at the lower of aggregate cost or fair value and are included in other assets in the Consolidated Statements of Financial Condition. Interest income on loans is accrued based on principal amounts outstanding. Loan and lease origination fees, commitment fees, and certain direct loan origination costs are deferred, and the net amount is amortized over the estimated life of the related loans or commitments as a yield adjustment. Fees related to standby letters of credit, whose ultimate exercise is remote, are amortized into fee income over the estimated life of the commitment. Other credit-related fees are recognized as fee income when earned.

Purchased Impaired Loans – Purchased impaired loans are recorded at their estimated fair values on the respective purchase dates and are accounted for prospectively based on expected cash flows. No allowance for credit losses is recorded on these loans at the acquisition date. In determining the acquisition date fair value of purchased impaired loans and in subsequent

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periods, the Company generally aggregates purchased consumer loans and certain smaller balance commercial loans into pools of loans with common risk characteristics, such as delinquency status, credit score, and internal risk rating. Larger balance commercial loans are usually accounted for on an individual basis. Expected future cash flows in excess of the fair value of loans at the purchase date (“accretable yield”) are recorded as interest income over the life of the loans if the timing and amount of the future cash flows can be reasonably estimated. The non-accretable yield represents estimated losses in the portfolio and is equal to the difference between contractually required payments and the cash flows expected to be collected at acquisition.

Subsequent to the purchase date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. The present value of any decreases in expected cash flows after the purchase date is recognized by recording a charge-off through the allowance for loan losses.

Non-accrual loans – Generally, commercial loans and loans secured by real estate are placed on non-accrual status (i) when either principal or interest payments become 90 days or more past due based on contractual terms unless the loan is sufficiently collateralized such that full repayment of both principal and interest is expected and is in the process of collection within a reasonable period or (ii) when an individual analysis of a borrower’s creditworthiness indicates a credit should be placed on non-accrual status whether or not the loan is 90 days or more past due. When a loan is placed on non-accrual status, unpaid interest credited to income in the current year is reversed, and unpaid interest accrued in prior years is charged against the allowance for loan losses. After the loan is placed on non-accrual, all debt service payments are applied to the principal on the loan. Future interest income may only be recorded on a cash basis after recovery of principal is reasonably assured. Non-accrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate there is no longer doubt that the Company will collect all principal and interest due.

Commercial loans and loans secured by real estate are generally charged-off when deemed uncollectible. A loss is recorded at that time if the net realizable value can be quantified and it is less than the associated principal and interest outstanding. Consumer loans that are not secured by real estate are subject to mandatory charge-off at a specified delinquency date and are usually not classified as non-accrual prior to being charged-off. Closed-end consumer loans, which include installment, automobile, and single payment loans, are generally charged-off in full no later than the end of the month in which the loan becomes 120 days past due.

Generally, purchased impaired loans are considered accruing loans unless reasonable estimates of the timing and amount of future cash flows cannot be determined. Loans without reasonable cash flow estimates are classified as non-accrual loans, and interest income will not be recognized until the timing and amount of the future cash flows can be reasonably determined.

Troubled Debt Restructurings (“TDRs”) – A restructuring of debt is considered a TDR when the creditor, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession, such as forgiveness of principal, reduction of the interest rate, or extension of the maturity, that it would not otherwise consider. Loans are not classified as TDRs when the modification is short-term or results in only an insignificant delay or shortfall in the payments to be received. The Company’s TDRs are determined on a case-by-case basis in connection with ongoing loan collection processes.

The Company does not accrue interest on any TDRs unless it believes collection of all principal and interest under the modified terms is reasonably assured. For a TDR to begin accruing interest, the borrower must demonstrate both some level of past performance and the capacity to perform under the modified terms. Generally, six months of consecutive payment performance by the borrower under the restructured terms is required before a TDR is returned to accrual status. However, the period could vary depending on the individual facts and circumstances of the loan. An evaluation of the borrower’s current creditworthiness is used to assess whether the borrower has the capacity to repay the loan under the modified terms. This evaluation includes an estimate of expected cash flows, evidence of strong financial position, and estimates of the value of collateral, if applicable. However, in accordance with industry regulation, these restructured loans continue to be separately reported as restructured until after the calendar year in which the restructuring occurred if the loan was restructured at reasonable market rates and terms.

Impaired Loans – Impaired loans consist of corporate non-accrual loans and TDRs.

With the exception of loans that were restructured and are still accruing interest, a loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest due according to the terms of the loan agreement based on current information and events. Loans deemed to be impaired are classified as non-accrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and installment loans. When a loan is designated as impaired, any subsequent principal and interest payments received are applied to the principal on the loan. Future interest income may only be recorded on a cash basis after recovery of principal is reasonably assured.

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Certain impaired loans with balances under a specified threshold are not individually evaluated for impairment. For all other impaired loans, impairment is measured by comparing the estimated value of the loan to the recorded book value. The value of the loan is measured based on the present value of expected future cash flows discounted at the loan’s initial effective interest rate or the fair value of the underlying collateral, less costs to sell, if repayment of the loan is collateral-dependent. All impaired loans are included in non-performing assets. Purchased impaired loans are not reported as impaired loans provided that estimates of the timing and amount of future cash flows can be reasonably determined.

90-Days Past Due Loans – 90-days or more past due loans are loans with principal or interest payments  three months or more past due, but that still accrue interest. The Company continues to accrue interest if it determines these loans are sufficiently collateralized and in the process of collection within a reasonable time period.

Allowance for Credit Losses –The allowance for credit losses is comprised of the allowance for loan losses and the reserve for unfunded commitments and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the allowance for credit losses is inherently subjective since it requires significant estimates and management judgment, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on a migration analysis that uses historical loss experience, consideration of current economic trends, and other factors.

Credit exposures deemed to be uncollectible are charged-off against the allowance for loan losses, while recoveries of amounts previously charged-off are credited to the allowance for loan losses. Additions to the allowance for loan losses are established through the provision for loan losses charged to expense. The amount charged to operating expense depends on a number of factors, including historic loan growth, changes in the composition of the loan portfolio, net charge-off levels, and the Company’s assessment of the allowance for loan losses based on the methodology discussed below.

The allowance for loan losses consists of (i) specific reserves established for probable losses on individual loans for which the recorded investment in the loan exceeds the value of the loan, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) the impact of other internal and external qualitative factors.

The specific reserves component of the allowance for loan losses is based on a periodic analysis of impaired loans exceeding a fixed dollar amount where the internal credit rating is at or below a predetermined classification and other loans that management believes are subject to a higher risk of loss, regardless of internal credit rating. The value of the loan is measured based on the present value of expected future cash flows discounted at the loan’s initial effective interest rate or the fair value of the underlying collateral, less costs to sell, if repayment of the loan is collateral-dependent. If the resulting amount is less than the recorded book value, the Company either establishes a valuation allowance (i.e. a specific reserve) as a component of the allowance for loan losses or charges off the amount if it is a confirmed loss.

For corporate loans, the component of the allowance for loan losses based on a loss migration analysis examines actual loss experience for a rolling 8-quarter period and the related internal risk rating and category of loans charged-off.  The loss migration analysis is performed quarterly, and the loss factors are updated based on actual experience. The loss component derived from this migration analysis is then adjusted for management’s estimate of losses inherent in the loan portfolio that have yet to be manifested in historical charge-off experience. Management takes into consideration many internal and external qualitative factors when estimating this adjustment, including:

·   Changes in the composition of the loan portfolio, trends in the volume and terms of loans, and trends in delinquent and non-accrual loans that could indicate historical trends do not reflect current conditions;

·   Changes in credit policies and procedures, such as underwriting standards and collection, charge-off, and recovery practices;

·   Changes in the experience, ability, and depth of credit management and other relevant staff;

·   Changes in the quality of the Company’s loan review system and Board of Directors oversight;

·   The existence and effect of any concentration of credit and changes in the level of concentrations, such as market, loan type, or risk rating;

·   Changes in the value of the underlying collateral for collateral-dependent loans;

·   Changes in the national and local economy that affect the collectability of various segments of the portfolio; and

·   The effect of other external factors, such as competition and legal and regulatory requirements, on the level of estimated credit losses in the Company’s loan portfolio.

The Company also maintains a reserve for unfunded commitments, including letters of credit, to provide for the risk of loss inherent in these arrangements. The reserve for unfunded commitments is computed based on a loss migration analysis

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similar to that used to determine the allowance for loan losses, taking into consideration probabilities of future funding requirements. The reserve for unfunded commitments is included in other liabilities in the Consolidated Statements of Financial Condition.

The establishment of the allowance for credit losses involves a high degree of judgment and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance for credit losses is dependent upon a variety of factors beyond the Company’s control, including the performance of its loan portfolio, the economy, changes in interest rates and property values, and the interpretation of loan risk classifications by regulatory authorities. While each component of the allowance for credit losses is determined separately, the entire balance is available for the entire loan portfolio.

Comprehensive Income– Comprehensive income is the total of reported net income and other comprehensive income (“OCI”). OCI includes all other revenues, expenses, gains, and losses that are not reported in net income under GAAP. The Company includes the following items, net of tax, in other comprehensive income in the Consolidated Statements of Comprehensive Income: (i) changes in unrealized gains or losses on securities available-for-sale, (ii) changes in the fair value of derivatives designated under cash flow hedges (when applicable), and (iii) changes in unrecognized net pension costs related to the Company’s pension plan.

2.  RECENT ACCOUNTING PRONOUNCEMENTS

Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRS”): In April 2011, the Financial Accounting Standards Board (“FASB”) issued guidance that clarifies the wording used to describe many of the requirements in GAAP for measuring fair value to be consistent with IFRS. In addition, the guidance expands certain disclosure requirements relating to fair value measurements. Specifically, the new guidance requires (i) quantitative information on significant unobservable inputs, (ii) a description of a Company’s valuation processes, (iii) a narrative description of the sensitivity of recurring Level 3 measurements to unobservable inputs, and (iv) the fair value hierarchy level of assets and liabilities that are not carried at fair value but are required to be disclosed at fair value in the footnotes. This guidance is applied prospectively for interim and annual periods beginning after December 15, 2011. The adoption of this guidance on January 1, 2012 did not impact the Company’s financial condition, results of operations, or liquidity.

Reconsideration of Effective Control for Repurchase Agreements: In April 2011, the FASB issued guidance that amends the accounting for repurchase agreements and other similar agreements that both entitle and obligate a transferor to redeem financial assets before maturity. The guidance modifies the criteria for determining when these transactions would be recorded as financing agreements as opposed to purchase or sale agreements with a commitment to resell. This guidance is applied prospectively for interim and annual periods beginning after December 15, 2011. The adoption of this guidance on January 1, 2012 did not impact the Company’s financial condition, results of operations, or liquidity.

Testing Goodwill for Impairment: In September 2011, the FASB issued new guidance that gives an entity the option to first assess qualitative factors to determine whether the two-step impairment test is necessary. If, after assessing those factors, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is not necessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step impairment test. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of this guidance on January 1, 2012 did not have a material impact on the Company’s financial condition, results of operation, or liquidity.

3.  SECURITIES

Securities available-for-sale are carried at fair value with unrealized gains and losses, net of related deferred income taxes, recorded in stockholders’ equity as a separate component of accumulated other comprehensive loss. Securities classified as held-to-maturity are securities that management has the positive intent and ability to hold to maturity and are stated at cost. Trading securities are reported at fair value. Net trading gains represent changes in the fair value of the trading securities portfolio and are included as a separate component of other noninterest income in the Condensed Consolidated Statements of Income.

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Securities Portfolio

(Dollar amounts in thousands)

		March 31, 2012							December 31, 2011
		Amortized	Gross Unrealized				Fair		Amortized		Gross Unrealized				Fair
		Cost	Gains		Losses		Value		Cost		Gains		Losses		Value
Securities Available-for-Sale
U.S. agency securities	$	5,029	$	-	$	(18)	$	5,011	$	5,060	$	-	$	(25)	$	5,035
Collateralized residential    mortgage obligations    (“CMOs”)		504,661		3,839		(954)		507,546		383,828		2,622		(2,346)		384,104
Other residential    mortgage-backed    securities (“MBSs”)		130,263		5,757		(19)		136,001		81,982		5,732		(23)		87,691
Municipal securities		462,985		25,297		(279)		488,003		464,282		26,155		(366)		490,071
Collateralized debt    obligations (“CDOs”)		48,038		-		(34,353)		13,685		48,759		-		(35,365)		13,394
Corporate debt securities		27,539		3,194		-		30,733		27,511		2,514		(11)		30,014
Equity securities:
Hedge fund investment		1,231		705		-		1,936		1,231		385		-		1,616
Other equity securities		992		68		-		1,060		958		123		-		1,081
Total equity securities		2,223		773		-		2,996		2,189		508		-		2,697
Total	$	1,180,738	$	38,860	$	(35,623)	$	1,183,975	$	1,013,611	$	37,531	$	(38,136)	$	1,013,006
Securities Held-to-Maturity
Municipal securities	$	56,319	$	3,045	$	-	$	59,364	$	60,458	$	1,019	$	-	$	61,477
Trading Securities (1)							$	16,031							$	14,469

(1) Trading securities held by the Company represent diversified investment securities held in a grantor trust under deferred compensation arrangements in which plan participants may direct amounts earned to be invested in securities other than Company stock.

Remaining Contractual Maturity of Securities

(Dollar amounts in thousands)

	March 31, 2012
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	14,286	$	14,124	$	10,495	$	11,063
One year to five years		345,276		341,364		18,603		19,609
Five years to ten years		102,598		101,436		10,366		10,927
After ten years		81,431		80,508		16,855		17,765
CMOs		504,661		507,546		-		-
Other residential MBSs		130,263		136,001		-		-
Equity securities		2,223		2,996		-		-
Total	$	1,180,738	$	1,183,975	$	56,319	$	59,364

The carrying value of securities available-for-sale that were pledged to secure deposits and for other purposes as permitted or required by law totaled $491.4 million at March 31, 2012 and $592.7 million at December 31, 2011. No securities held-to-maturity were pledged as of March 31, 2012 or December 31, 2011.

Purchases and sales of securities are recognized on a trade date basis. Realized securities gains or losses are reported in net securities gains in the Condensed Consolidated Statements of Income. The cost of securities sold is recorded using the specific identification method.

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Securities Gains (Losses)

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012		2011
Proceeds from sales	$	2,662	$	44,212
Gains (losses) on sales of securities:
Gross realized gains	$	47	$	808
Gross realized losses		(253)		(268)
Net realized (losses) gains on securities sales		(206)		540
Non-cash impairment charges:
Other-than-temporary securities impairment (“OTTI”)		(737)		-
Portion of other-than-temporary impairment         recognized in other comprehensive income		-		-
Net non-cash impairment charges		(737)		-
Net realized (losses) gains	$	(943)	$	540
Income tax (benefit) expense on net realized (losses) gains	$	(386)	$	221
Net trading gains (1)	$	1,401	$	744

(1) All net trading gains relate to trading securities still held as of March 31, 2012 and March 31, 2011.

The non-cash impairment charges in the table above primarily relate to OTTI charges on CDOs. Accounting guidance requires that only the credit portion of an OTTI charge be recognized through income. In deriving the credit component of the impairment on the CDOs, projected cash flows were discounted at the contractual rate ranging from the London Interbank Offered Rate (“LIBOR”) plus 125 basis points to LIBOR plus 160 basis points. Fair values are computed by discounting future projected cash flows at higher rates, ranging from LIBOR plus 1,300 basis points to LIBOR plus 1,400 basis points. The higher rates are used to account for other market factors, such as liquidity. If a decline in fair value below carrying value is not attributable to credit loss and the Company does not intend to sell the security or believe it would not be more likely than not required to sell the security prior to recovery, the Company records the decline in fair value in other comprehensive income.

Credit-Related CDO Impairment Losses

(Dollar amounts in thousands)

	Quarters Ended March 31,
Number	2012		2011		Life-to-Date
1	$	-	$	-	$	10,360
2		642		-		8,510
3		79		-		1,649
4		-		-		1,078
5		-		-		8,570
6		-		-		243
7		-		-		6,750
	$	721	$	-	$	37,160

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Changes in the amount of credit losses recognized in earnings on CDOs and other securitiesare summarized in the following table.

Changes in Credit Losses Recognized in Earnings

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012		2011
Cumulative amount recognized at beginning of period	$	36,525	$	35,756
Credit losses included in earnings (1):
Losses recognized on securities that previously had credit losses		737		-
Losses recognized on securities that did not previously have credit losses		-		-
Cumulative amount recognized at end of period	$	37,262	$	35,756

(1) Included in net securities (losses) gains in the Condensed Consolidated Statements of Income.

The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of March 31, 2012 and December 31, 2011.

Securities in an Unrealized Loss Position

(Dollar amounts in thousands)

		Less Than 12 Months				12 Months or Longer				Total
	Number of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
As of March 31, 2012
U.S. agency security	2	$	-	$	-	$	5,011	$	18	$	5,011	$	18
CMOs	26		132,978		589		11,338		365		144,316		954
Other residential mortgage-   backed securities	4		612		1		263		18		875		19
Municipal securities	17		1,671		33		6,748		246		8,419		279
CDOs	6		-		-		13,685		34,353		13,685		34,353
Total	55	$	135,261	$	623	$	37,045	$	35,000	$	172,306	$	35,623
As of December 31, 2011
U.S. agency securities	2	$	-	$	-	$	5,035	$	25	$	5,035	$	25
CMOs	30		163,819		1,818		12,628		528		176,447		2,346
Other residential mortgage-   backed securities	4		182		17		1,072		6		1,254		23
Municipal securities	19		934		2		7,857		364		8,791		366
CDOs	6		-		-		13,394		35,365		13,394		35,365
Corporate debt securities	1		2,157		11		-		-		2,157		11
Total	62	$	167,092	$	1,848	$	39,986	$	36,288	$	207,078	$	38,136

Approximately 99% of the Company’s CMOs and other MBSs are either backed by U.S. government-owned agencies or issued by U.S. government-sponsored enterprises. Municipal securities are issued by municipal authorities, and the majority is supported by third-party insurance or some other form of credit enhancement. Management does not believe any individual unrealized loss as of March 31, 2012 represents an OTTI. The unrealized losses associated with these securities are not believed to be attributed to credit quality, but rather to changes in interest rates and temporary market movements. In addition, the Company does not intend to sell the securities with unrealized losses, and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

The unrealized losses on CDOs as of March 31, 2012 reflect the market’s unfavorable view of structured investment vehicles given the current interest rate and liquidity environment. Management does not believe the unrealized losses on the CDOs represent OTTI related to credit deterioration. In addition, the Company does not intend to sell the CDOs with unrealized

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losses, and the Company does not believe it is more likely than not that it will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

Significant judgment is required to calculate the fair value of the CDOs, all of which are pooled. Generally, fair value determinations are based on several factors regarding current market and economic conditions related to these securities and the underlying collateral. For these reasons and due to the illiquidity in the secondary market for the CDOs, the Company estimates the fair value of these securities using discounted cash flow analyses with the assistance of a structured credit valuation firm. For additional discussion of the CDO valuation methodology, refer to Note 12, “Fair Value.”

4.  LOANS

The following table presents the Company’s loan portfolio by class.

Loan Portfolio

(Dollar amounts in thousands)

	March 31, 2012		December 31, 2011
Commercial and industrial	$	1,496,966	$	1,458,446
Agricultural		237,686		243,776
Commercial real estate:
Office, retail, and industrial		1,366,899		1,299,082
Multi-family		301,356		288,336
Residential construction		99,768		105,836
Commercial construction		142,307		144,909
Other commercial real estate		829,005		888,146
Total commercial real estate		2,739,335		2,726,309
Total corporate loans		4,473,987		4,428,531
Home equity		406,367		416,194
1-4 family mortgages		217,729		201,099
Installment loans		39,245		42,289
Total consumer loans		663,341		659,582
Total loans, excluding covered loans		5,137,328		5,088,113
Covered loans (1)		251,376		260,502
Total loans	$	5,388,704	$	5,348,615
Deferred loan fees included in total loans	$	7,283	$	7,828
Overdrawn demand deposits included in total loans	$	2,173	$	2,850

(1) For information on covered loans, refer to Note 5, “Covered Assets.”

The Company primarily lends to small and mid-sized businesses, commercial real estate customers, and consumers in the markets in which the Company operates. Within these areas, the Company diversifies its loan portfolio by loan type, industry, and borrower.

It is the Company’s policy to review each prospective credit to determine the appropriateness and the adequacy of security or collateral prior to making a loan. In the event of borrower default, the Company seeks recovery in compliance with state lending laws, the Company’s lending standards, and credit monitoring and remediation procedures.

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5.  COVERED ASSETS

In 2009 and 2010, the Company acquired the majority of the assets of three financial institutions in FDIC-assisted transactions. Most loans and OREO acquired in these acquisitions are covered by loss sharing agreements with the FDIC (the “FDIC Agreements”), whereby the FDIC will reimburse the Company for the majority of the losses incurred on these assets. A detailed discussion of these transactions is presented in Note 5, “Covered Assets” contained in the Company’s 2011 10-K.

Covered Assets

(Dollar amounts in thousands)

	March 31, 2012		December 31, 2011
Home equity lines (1)	$	44,855	$	45,451
Covered impaired loans		171,014		178,025
Other covered loans (2)		35,507		37,026
Total covered loans		251,376		260,502
FDIC indemnification asset		58,488		65,609
Covered OREO		16,990		23,455
Total covered assets	$	326,854	$	349,566
Covered non-accrual loans	$	19,264	$	19,879
Covered loans past due 90 days or more and still accruing interest	$	33,825	$	43,347

(1)	These loans are open-end consumer loans that are not categorized as purchased impaired loans.
(2)	These are loans that did not have evidence of impairment on the date of acquisition.

The loans purchased in the three FDIC-assisted transactions were recorded at their estimated fair values on the respective purchase dates and are accounted for prospectively based on expected cash flows. Except for leases and revolving loans, including lines of credit and credit card loans, management determined that a significant portion of the acquired loans (“purchased impaired loans”) had evidence of credit deterioration since origination, and it was probable at the date of acquisition that the Company would not collect all contractually required principal and interest payments. Past due covered loans in the table above are past due based on contractual terms but continue to perform in accordance with the Company’s expectations of cash flows.

In connection with the FDIC Agreements, the Company recorded an indemnification asset. To maintain eligibility for the loss share reimbursement, the Company is required to follow certain servicing procedures as specified in the FDIC Agreements.

The accounting policies related to purchased impaired loans are presented in Note 1, “Summary of Significant Accounting Policies.” Accounting for the related FDIC indemnification asset is presented in Note 1, “Summary of Significant Accounting Policies,” contained in the Company’s 2011 10-K.

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Changes in the FDIC Indemnification Asset

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012		2011
Balance at beginning of period	$	65,609	$	95,899
Amortization		(1,979)		(2,242)
Expected reimbursements from the FDIC for changes in expected credit losses (1)		2,034		2,513
Payments received from the FDIC		(7,176)		(10,784)
Balance at end of period	$	58,488	$	85,386

(1) The increases in indemnification asset were a result of decreases in estimated cash flows on certain loans. The indemnification asset increased by the applicable loss share percentage for additional expected losses.

Changes in the accretable yield for purchased impaired loans were as follows.

Changes in Accretable Yield

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012		2011
Balance at beginning of period	$	52,147	$	63,616
Accretion		(5,386)		(8,424)
Net reclassifications to non-accretable difference (1)		(5,716)		(4,182)
Balance at end of period	$	41,045	$	51,010

(1) Amount represents a decrease in the estimated cash flows to be collected over the remaining estimated life of the underlying portfolio.

6.  PAST DUE LOANS, ALLOWANCE FOR CREDIT LOSSES, AND IMPAIRED LOANS

Past Due and Non-accrual Loans

The following table presents an aging analysis of the Company’s past due loans as of March 31, 2012 and December 31, 2011. The aging is determined without regard to accrual status. The table also presents non-performing loans, consisting of non-accrual loans (the majority of which are past due) and loans 90 days or more past due and still accruing interest, as of each balance sheet date.

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Aging Analysis of Past Due Loans and Non-Performing Loans by Class

(Dollar amounts in thousands)

	Aging Analysis (Accruing and Non-accrual)										Non-performing Loans
	Current		30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total Loans		Non- accrual Loans		90 Days Past Due Loans, Still Accruing Interest
March 31, 2012
Commercial and industrial	$	1,439,402	$	22,899	$	34,665	$	57,564	$	1,496,966	$	55,158	$	3,525
Agricultural		236,818		159		709		868		237,686		882		393
Commercial real estate:
Office, retail, and industrial		1,329,162		20,045		17,692		37,737		1,366,899		34,831		901
Multi-family		291,061		1,362		8,933		10,295		301,356		9,615		-
Residential construction		77,531		1,768		20,469		22,237		99,768		21,104		-
Commercial construction		124,807		500		17,000		17,500		142,307		20,297		-
Other commercial real       estate		793,385		12,842		22,778		35,620		829,005		43,137		963
Total commercial real           estate		2,615,946		36,517		86,872		123,389		2,739,335		128,984		1,864
Total corporate loans		4,292,166		59,575		122,246		181,821		4,473,987		185,024		5,782
Home equity		394,424		2,723		9,220		11,943		406,367		8,851		1,596
1-4 family mortgages		211,398		875		5,456		6,331		217,729		5,648		264
Installment loans		38,858		333		54		387		39,245		22		32
Total consumer loans		644,680		3,931		14,730		18,661		663,341		14,521		1,892
Total loans, excluding           covered loans		4,936,846		63,506		136,976		200,482		5,137,328		199,545		7,674
Covered loans		191,785		8,394		51,197		59,591		251,376		19,264		33,825
Total loans	$	5,128,631	$	71,900	$	188,173	$	260,073	$	5,388,704	$	218,809	$	41,499
December 31, 2011
Commercial and industrial	$	1,415,165	$	13,731	$	29,550	$	43,281	$	1,458,446	$	44,152	$	4,991
Agricultural		242,727		30		1,019		1,049		243,776		1,019		-
Commercial real estate:
Office, retail, and industrial		1,276,920		2,931		19,231		22,162		1,299,082		30,043		1,040
Multi-family		281,943		1,121		5,272		6,393		288,336		6,487		-
Residential construction		87,606		2,164		16,066		18,230		105,836		18,076		-
Commercial construction		129,310		320		15,279		15,599		144,909		23,347		-
Other commercial real       estate		849,066		6,372		32,708		39,080		888,146		51,447		1,707
Total commercial           real estate		2,624,845		12,908		88,556		101,464		2,726,309		129,400		2,747
Total corporate loans		4,282,737		26,669		119,125		145,794		4,428,531		174,571		7,738
Home equity		402,842		6,112		7,240		13,352		416,194		7,407		1,138
1-4 family mortgages		192,646		3,712		4,741		8,453		201,099		5,322		-
Installment loans		41,288		625		376		1,001		42,289		25		351
Total consumer loans		636,776		10,449		12,357		22,806		659,582		12,754		1,489
Total loans, excluding           covered loans		4,919,513		37,118		131,482		168,600		5,088,113		187,325		9,227
Covered loans		195,289		7,853		57,360		65,213		260,502		19,879		43,347
Total loans	$	5,114,802	$	44,971	$	188,842	$	233,813	$	5,348,615	$	207,204	$	52,574

21

Allowance for Credit Losses

The Company maintains an allowance for credit losses at a level believed adequate by management to absorb probable losses inherent in the loan portfolio.

Allowance for Credit Losses

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012		2011
Balance at beginning of period	$	121,962	$	145,072
Loans charged-off		(22,686)		(21,581)
Recoveries of loans previously charged-off		1,278		2,020
Net loans charged-off		(21,408)		(19,561)
Provision for loan losses		18,210		19,492
Balance at end of period	$	118,764	$	145,003
Allowance for loan losses	$	116,264	$	142,503
Reserve for unfunded commitments		2,500		2,500
Total allowance for credit losses	$	118,764	$	145,003

Allowance for Credit Losses by Portfolio Segment

(Dollar amounts in thousands)

	Commercial, Industrial, and Agricultural		Office, Retail, and Industrial		Multi- Family		Residential Construction		Other Commercial Real Estate		Consumer		Covered Loans		Total Allowance
Quarter ended    March 31, 2012
Balance at beginning of period	$	46,017	$	16,012	$	5,067	$	14,563	$	24,471	$	14,843	$	989	$	121,962
Loans charged-off		(8,190)		(2,667)		(140)		(683)		(8,354)		(2,378)		(274)		(22,686)
Recoveries of loans previously     charged-off		716		2		131		220		7		202		-		1,278
Net loans charged-off		(7,474)		(2,665)		(9)		(463)		(8,347)		(2,176)		(274)		(21,408)
Provision for loan losses		6,172		4,209		24		163		6,325		1,039		278		18,210
Balance at end of period	$	44,715	$	17,556	$	5,082	$	14,263	$	22,449	$	13,706	$	993	$	118,764
Quarter ended    March 31, 2011
Balance at beginning of period	$	49,545	$	20,758	$	3,996	$	27,933	$	29,869	$	12,971	$	-	$	145,072
Loans charged-off		(4,974)		(1,199)		(549)		(5,422)		(5,662)		(2,671)		(1,104)		(21,581)
Recoveries of loans previously     charged-off		1,837		16		-		4		43		108		12		2,020
Net loans charged-off		(3,137)		(1,183)		( 549)		(5,418)		(5,619)		(2,563)		(1092)		(19,561)
Provision for loan losses		4,181		57		1,205		4,873		5,795		2,289		1,092		19,492
Balance at end of period	$	50,589	$	19,632	$	4,652	$	27,388	$	30,045	$	12,697	$	-	$	145,003

22

Impaired Loans

A portion of the Company’s allowance for credit losses is allocated to loans deemed impaired. Impaired loans consist of corporate non-accrual loans and TDRs. Smaller homogeneous loans, such as home equity, installment, and 1-4 family mortgages, are not individually assessed for impairment.

Impaired Loans

(Dollar amounts in thousands)

	March 31, 2012		December 31, 2011
Impaired loans individually evaluated for impairment:
Impaired loans with a related allowance for credit losses (1)	$	105,121	$	76,397
Impaired loans with no specific related allowance for credit losses (2)		65,413		83,090
Total impaired loans individually evaluated for impairment		170,534		159,487
Corporate non-accrual loans not individually evaluated for impairment (3)		14,490		15,084
Total corporate non-accrual loans		185,024		174,571
TDRs, still accruing interest		2,076		17,864
Total impaired loans	$	187,100	$	192,435
Valuation allowance related to impaired loans	$	23,103	$	26,095

(1)	These impaired loans require a valuation allowance because the present value of expected future cash flows or the estimated value of the related collateral, less estimated selling costs, is less than the recorded investment in the loans.
(2)	No specific allowance for credit losses is allocated to these loans since they are deemed to be sufficiently collateralized or had charge-offs.
(3)	These are loans with balances under a specified threshold.

The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment. Loans individually evaluated for impairment include corporate non-accrual loans with the exception of certain loans with balances under a specified threshold.

The present value of any decreases in expected cash flows of covered loans after the purchase date is recognized by recording a charge-off through the allowance for loan losses. Since most covered loans are accounted for as purchased impaired loans and the carrying values of those loans are periodically adjusted for any changes in expected future cash flows, they are not included in the calculation of the allowance for credit losses and are not displayed in this table except for open-end consumer loans.

23

Loans and Related Allowance for Credit Losses by Portfolio Segment

(Dollar amounts in thousands)

	Loans						Allowance For Credit Losses
	Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total		Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total
March 31, 2012
Commercial, industrial, and   agricultural	$	49,075	$	1,685,577	$	1,734,652	$	14,975	$	29,740	$	44,715
Commercial real estate:
Office, retail, and industrial		32,813		1,334,086		1,366,899		1,447		16,109		17,556
Multi-family		8,551		292,805		301,356		-		5,082		5,082
Residential construction		20,024		79,744		99,768		3,110		11,153		14,263
Other commercial real estate		60,071		911,241		971,312		3,571		18,878		22,449
Total commercial real estate		121,459		2,617,876		2,739,335		8,128		51,222		59,350
Total corporate loans		170,534		4,303,453		4,473,987		23,103		80,962		104,065
Consumer		-		663,341		663,341		-		13,706		13,706
Total loans, excluding               covered loans		170,534		4,966,794		5,137,328		23,103		94,668		117,771
Covered loans (1)		-		44,855		44,855		-		993		993
Total loans included in the       calculation of the allowance       for credit losses	$	170,534	$	5,011,649	$	5,182,183	$	23,103	$	95,661	$	118,764
December 31, 2011
Commercial, industrial, and   agricultural	$	37,385	$	1,664,837	$	1,702,222	$	14,827	$	31,190	$	46,017
Commercial real estate:
Office, retail, and industrial		28,216		1,270,866		1,299,082		1,507		14,505		16,012
Multi-family		5,589		282,747		288,336		20		5,047		5,067
Residential construction		17,378		88,458		105,836		2,502		12,061		14,563
Other commercial real estate		70,919		962,136		1,033,055		7,239		17,232		24,471
Total commercial real estate		122,102		2,604,207		2,726,309		11,268		48,845		60,113
Total corporate loans		159,487		4,269,044		4,428,531		26,095		80,035		106,130
Consumer		-		659,582		659,582		-		14,843		14,843
Total loans, excluding               covered loans		159,487		4,928,626		5,088,113		26,095		94,878		120,973
Covered loans (1)		-		45,451		45,451		-		989		989
Total loans included in the       calculation of the allowance       for credit losses	$	159,487	$	4,974,077	$	5,133,564	$	26,095	$	95,867	$	121,962

(1) These are open-end consumer loans that are not categorized as purchased impaired loans.

24

The following table presents loans individually evaluated for impairment by class of loan as of March 31, 2012 and December 31, 2011.

Impaired Loans Individually Evaluated by Class

(Dollar amounts in thousands)

	March 31, 2012								December 31, 2011
	Recorded Investment In								Recorded Investment In
	Loans with No Specific Related Allowance for Credit Losses		Loans with a Related Allowance for Credit Losses		Unpaid Principal Balance		Allowance for Credit Losses Allocated		Loans with No Specific Related Allowance for Credit Losses		Loans with a Related Allowance for Credit Losses		Unpaid Principal Balance		Allowance for Credit Losses Allocated
Commercial and   industrial	$	13,364	$	35,154	$	71,648	$	14,975	$	10,801	$	26,028	$	58,591	$	14,827
Agricultural		557		-		557		-		556		-		556		-
Commercial real estate:
Office, retail, and          industrial		7,635		25,178		42,873		1,447		11,897		16,319		33,785		1,507
Multi-family		8,551		-		14,087		-		5,072		517		11,265		20
Residential       construction		8,666		11,358		35,110		3,110		9,718		7,660		33,124		2,502
Commercial       construction		2,107		18,179		24,844		763		19,019		3,790		28,534		758
Other commercial real       estate		24,533		15,252		65,333		2,808		26,027		22,083		70,868		6,481
Total commercial real           estate		51,492		69,967		182,247		8,128		71,733		50,369		177,576		11,268
Total impaired loans      individually evaluated      for  impairment	$	65,413	$	105,121	$	254,452	$	23,103	$	83,090	$	76,397	$	236,723	$	26,095

	Quarter Ended March 31, 2012				Quarter Ended March 31, 2011
	Average Recorded Investment Balance		Interest Income Recognized (1)		Average Recorded Investment Balance		Interest Income Recognized (1)
Commercial and industrial	$	45,630	$	9	$	51,024	$	6
Agricultural		922		-		2,515		-
Commercial real estate:
Office, retail, and industrial		28,683		-		17,910		12
Multi-family		6,528		-		6,650		2
Residential construction		17,074		-		49,823		-
Commercial construction		22,755		-		25,391		-
Other commercial real estate		51,842		-		44,339		17
Total commercial real estate		126,882		-		144,113		31
Total impaired loans individually evaluated for             impairment	$	173,434	$	9	$	197,652	$	37

(1) Recorded using the cash basis of accounting.

25

TDRs

Loan modifications are generally performed at the request of the individual borrower and may include reduction in interest rates, changes in payments, and maturity date extensions. A discussion of our accounting policies for TDRs is contained in Note 1 of “Notes to Consolidated Financial Statements” in Item 1 of this Form 10-Q.

TDRs by Class

(Dollar amounts in thousands)

	As of March 31, 2012						As of December 31, 2011
	Accruing (1)		Non-accrual (2)		Total		Accruing (1)		Non-accrual (2)		Total
Commercial and industrial	$	518	$	1,240	$	1,758	$	1,451	$	897	$	2,348
Agricultural		-		-		-		-		-		-
Commercial real estate:
Office, retail, and industrial		220		-		220		1,742		-		1,742
Multi-family		-		1,758		1,758		11,107		1,758		12,865
Residential construction		-		-		-		-		-		-
Commercial construction		-		14,006		14,006		-		14,006		14,006
Other commercial real estate		-		11,467		11,467		227		11,417		11,644
Total commercial real estate		220		27,231		27,451		13,076		27,181		40,257
Total corporate loans		738		28,471		29,209		14,527		28,078		42,605
Home equity		359		409		768		1,093		471		1,564
1-4 family mortgages		979		1,080		2,059		2,089		1,293		3,382
Installment loans		-		-		-		155		-		155
Total consumer loans		1,338		1,489		2,827		3,337		1,764		5,101
Total loans	$	2,076	$	29,960	$	32,036	$	17,864	$	29,842	$	47,706

(1)	These loans are still accruing interest.
(2)	These loans are included in non-accrual loans in the preceding tables.

The following table presents a summary of loans that were restructured during the quarters ended March 31, 2012 and March 31, 2011.

TDRs Restructured During the Period

(Dollar amounts in thousands)

	Quarter Ended March 31, 2012							Quarter Ended March 31, 2011
	Number of Loans	Pre- Modification Recorded Investment		Interest and Escrow Capitalized		Post- Modification Recorded Investment		Number of Loans	Pre- Modification Recorded Investment		Interest and Escrow Capitalized		Post- Modification Recorded Investment
Commercial and industrial	-	$	-	$	-	$	-	2	$	131	$	7	$	138
Home equity	-		-		-		-	5		284		12		296
1-4 family mortgages	3		430		4		434	5		571		30		601
Installment loans	-		-		-		-	1		151		4		155
Total TDRs restructured      during the period	3	$	430	$	4	$	434	13	$	1,137	$	53	$	1,190

The specific reserve portion of the allowance for loan losses on TDRs for all segments of loans is determined by estimating the value of the loan. This is determined by discounting the restructured cash flows at the original effective rate of the loan before modification or is based on the fair value of the underlying collateral, less costs to sell, if repayment of the loan is collateral-dependent. If the resulting amount is less than the recorded book value, the Company either establishes a valuation allowance (i.e. specific reserve) as a component of the allowance for loan losses or charges off the impaired balance if it determines that it is a confirmed loss. TDRs had related valuation allowances totaling $916,000 as of March 31, 2012 and $94,000 as of December 31, 2011.

26

The allowance for loan losses also includes an allowance based on a loss migration analysis for each loan category for loans that are not individually evaluated for impairment. All loans charged-off, including TDRs charged-off, are factored into this calculation by portfolio segment.

TDRs that have payment defaults and do not perform in accordance with the modified terms are transferred to non-accrual. The following table presents TDRs that had payment defaults during the quarters ended March 31, 2012 and March 31, 2011 where the default occurred within twelve months of the restructured date.

TDRs That Defaulted Within Twelve Months of the Restructured Date

(Dollar amounts in thousands)

	Quarters Ended
	March 31, 2012			March 31, 2011
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Home equity	-	$	-	1	$	83
1-4 family mortgages	1		62	-		-
Total	1	$	62	1	$	83

There were no commitments to lend additional funds to borrowers with TDRs as of March 31, 2012 or December 31, 2011.

Credit Quality Indicators

Corporate loans and commitments are assessed for risk and assigned ratings based on various characteristics, such as the borrower’s cash flow, leverage, collateral, management characteristics, and other factors. Ratings for commercial credits are reviewed periodically. On a quarterly basis, consumer loans are assessed for credit quality based on the delinquency status of the loan.

27

Credit Quality Indicators by Class, Excluding Covered Loans

 (Dollar amounts in thousands)

	Pass		Special Mention (1)		Substandard (2)		Non-accrual (3)		Total
March 31, 2012
Commercial and industrial	$	1,358,137	$	45,735	$	37,936	$	55,158	$	1,496,966
Agricultural		226,134		10,670		-		882		237,686
Commercial real estate:
Office, retail, and industrial		1,222,796		63,997		45,275		34,831		1,366,899
Multi-family		287,789		2,528		1,424		9,615		301,356
Residential construction		42,500		21,588		14,576		21,104		99,768
Commercial construction		90,618		23,944		7,448		20,297		142,307
Other commercial real estate		703,618		65,593		16,657		43,137		829,005
Total commercial real estate		2,347,321		177,650		85,380		128,984		2,739,335
Total corporate loans	$	3,931,592	$	234,055	$	123,316	$	185,024	$	4,473,987
December 31, 2011
Commercial and industrial	$	1,308,812	$	57,866	$	47,616	$	44,152	$	1,458,446
Agricultural		232,270		10,487		-		1,019		243,776
Commercial real estate:
Office, retail, and industrial		1,147,026		78,578		43,435		30,043		1,299,082
Multi-family		275,031		5,803		1,015		6,487		288,336
Residential construction		48,806		27,198		11,756		18,076		105,836
Commercial construction		92,568		23,587		5,407		23,347		144,909
Other commercial real estate		746,213		73,058		17,428		51,447		888,146
Total commercial real estate		2,309,644		208,224		79,041		129,400		2,726,309
Total corporate loans	$	3,850,726	$	276,577	$	126,657	$	174,571	$	4,428,531

	Performing		Non-accrual		Total
March 31, 2012
Home equity	$	397,516	$	8,851	$	406,367
1-4 family mortgages		212,081		5,648		217,729
Installment loans		39,223		22		39,245
Total consumer loans	$	648,820	$	14,521	$	663,341
December 31, 2011
Home equity	$	408,787	$	7,407	$	416,194
1-4 family mortgages		195,777		5,322		201,099
Installment loans		42,264		25		42,289
Total consumer loans	$	646,828	$	12,754	$	659,582

(1)	Loans categorized as special mention exhibit potential weaknesses that require the close attention of management, since these potential weaknesses may result in the deterioration of repayment prospects at some future date.
(2)	Loans categorized as substandard continue to accrue interest, but exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. The loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time.
(3)	Loans categorized as non-accrual exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt and are characterized by the distinct possibility that the Company could sustain some loss if the deficiencies are not corrected. These loans were placed on non-accrual status.

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7.  SENIOR AND SUBORDINATED DEBT

The following table presents the Company’s senior and subordinated debt by issuance.

Senior and Subordinated Debt

(Dollar amounts in thousands)

	March 31, 2012		December 31, 2011
5.875% senior notes due in 2016
Principal amount	$	115,000	$	115,000
Discount		(569)		(600)
Total senior notes due in 2016		114,431		114,400
5.85% subordinated notes due in 2016
Principal amount		50,500		50,500
Discount		(22)		(24)
Total subordinated notes due in 2016		50,478		50,476
6.95% junior subordinated debentures due in 2033
Principal amount		66,253		87,351
Discount		(56)		(74)
Total junior subordinated debentures due in 2033		66,197		87,277
Total senior and subordinated debt	$	231,106	$	252,153

The Company’s senior and subordinated debt issuances are described in Note 11, “Senior and Subordinated Debt,” contained in the Company’s 2011 10-K.

In first quarter 2012, the Company redeemed and retired $21.1 million of junior subordinated debentures at a discount of 2.25%. This transaction resulted in the recognition of a pre-tax gain of $256,000, which is included in other noninterest income in the Condensed Consolidated Statements of Income.

8. EARNINGS PER COMMON SHARE

Basic and Diluted Earnings per Common Share

(Amounts in thousands, except per share data)

	Quarters Ended March 31,
	2012		2011
Net income	$	7,892	$	10,044
Preferred dividends		-		(2,413)
Accretion on preferred stock		-		(168)
Net income applicable to non-vested restricted shares		(139)		(137)
Net income applicable to common shares	$	7,753	$	7,326
Weighted-average common shares outstanding:
Weighted-average common shares outstanding (basic)		73,505		73,151
Dilutive effect of common stock equivalents		-		-
Weighted-average diluted common shares outstanding		73,505		73,151
Basic earnings per share	$	0.11	$	0.10
Diluted earnings per share	$	0.11	$	0.10
Anti-dilutive shares not included in the computation of diluted earnings per share (1)		1,863		3,733

(1) Represents outstanding stock options (and a common stock warrant for the 2011 period) for which the exercise price is greater than the average market price of the Company’s common stock.

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9.  INCOME TAXES

Income Tax Expense (Benefit)

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012		2011
Income before income tax expense (benefit)	$	9,048	$	9,953
Income tax expense (benefit):
Federal income tax expense	$	845	$	910
State income tax expense (benefit)		311		(1,001)
Total income tax expense (benefit)	$	1,156	$	(91)
Effective income tax rate		12.8%		(0.9%)

Federal income tax expense and the related effective income tax rate are primarily influenced by the amount of tax-exempt income derived from investment securities and bank-owned life insurance in relation to pre-tax income and state income taxes. State income tax expense (benefit) and the related effective tax rate are influenced by the amount of state tax-exempt income in relation to pre-tax income and state tax rules relating to consolidated/combined reporting and sourcing of income and expense.

Income tax expense for first quarter 2012 was $1.2 million compared to an income tax benefit of $91,000 for first quarter 2011. This increase was due primarily to a $1.6 million state income tax benefit recorded in first quarter 2011 related to an increase in deferred tax assets resulting from an increase in the Illinois corporate tax rate from 7.3% to 9.5% effective January 1, 2011.

Our accounting policies underlying the recognition of income taxes in the Consolidated Statements of Financial Condition and Income are included in Notes 1 and 14 to the Consolidated Financial Statements of our 2011 10-K.

10.  DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

In the ordinary course of business, the Company enters into derivative transactions as part of its overall interest rate risk management strategy to minimize significant unplanned fluctuations in earnings and cash flows caused by interest rate volatility. The significant accounting policies related to derivative instruments and hedging activities are presented in Note 1, “Summary of Significant Accounting Policies,” contained in the Company’s 2011 10-K.

During the quarters ended March 31, 2012 and 2011, the Company hedged the fair value of fixed rate commercial real estate loans through the use of pay fixed, receive variable interest rate swaps. These derivative contracts were designated as fair value hedges and are valued using observable market prices, if available, or third party cash flow projection models. The fair values of the fair value hedges and the related amount of hedge ineffectiveness recognized were not material for any period presented.

The Company’s derivative portfolio also includes derivative instruments not designated in a hedge relationship consisting of commitments to originate 1-4 family mortgage loans and foreign exchange contracts. The fair value of these instruments was not material for any period presented. The Company had no other derivative instruments as of March 31, 2012 or December 31, 2011. The Company does not enter into derivative transactions for purely speculative purposes.

11.  COMMITMENTS, GUARANTEES, AND CONTINGENT LIABILITIES

Credit Commitments and Guarantees

In the normal course of business, the Company enters into a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers and to conduct lending activities. These instruments include commitments to extend credit and standby and commercial letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition.

30

Contractual or Notional Amounts of Financial Instruments

(Dollar amounts in thousands)

	March 31, 2012		December 31, 2011
Commitments to extend credit:
Home equity lines	$	254,481	$	257,315
Credit card lines		21,255		21,257
1-4 family real estate construction		10,512		13,300
Commercial real estate		133,918		139,574
Commercial and industrial		608,122		609,601
Overdraft protection program (1)		176,949		178,699
All other commitments		88,051		129,015
Total commitments	$	1,293,288	$	1,348,761
Letters of credit:
1-4 family real estate construction	$	7,861	$	8,661
Commercial real estate		48,339		49,373
All other		55,872		58,532
Total letters of credit	$	112,072	$	116,566
Unamortized fees associated with letters of credit (2) (3)	$	598	$	668
Remaining weighted-average term (in months)		10.10		9.62
Remaining lives (in years)		0.1 to 12.3		0.1 to 12.6

(1)	Federal regulation regarding electronic fund transfers requires consumers to affirmatively consent to the institution’s overdraft service for automated teller machine and one-time debit card transactions before overdraft fees may be assessed on the account. Consumers are provided a specific line for the amount they may overdraw.
(2)	Included in other liabilities in the Consolidated Statements of Financial Condition.
(3)	The Company will amortize these amounts into income over the commitment period.

Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party and are most often issued in favor of a municipality where construction is taking place to ensure the borrower adequately completes the construction.

The maximum potential future payments guaranteed by the Company under standby letters of credit arrangements are equal to the contractual amount of the commitment. If a commitment is funded, the Company may seek recourse through the liquidation of the underlying collateral including real estate, production plants and property, marketable securities, or receipt of cash.

Legal Proceedings

In August 2011, the Bank was named in a purported class action lawsuit filed in the Circuit Court of Cook County, Illinois on behalf of certain of the Bank’s customers who incurred overdraft fees. The complaint was amended in February 2012, and the Bank filed a motion to dismiss the lawsuit in May 2012, which is pending. The lawsuit is based on the Bank’s practices pursuant to debit card transactions, and alleges, among other things, that these practices resulted in customers being unfairly assessed overdraft fees. The lawsuit seeks an unspecified amount of damages and other relief, including restitution.

The Company believes that the complaint contains significant inaccuracies and factual misstatements and that the Bank has meritorious defenses. As a result, the Bank intends to vigorously defend itself against the allegations in the lawsuit.

As of March 31, 2012, there were certain other legal proceedings pending against the Company and its subsidiaries in the ordinary course of business. The Company does not believe that liabilities, individually or in the aggregate, arising from legal proceedings, if any, would have a material adverse effect on the consolidated financial condition of the Company as of March 31, 2012.

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12.  FAIR VALUE

Fair value represents the amount that would be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date. In accordance with fair value accounting guidance, the Company measures and reports fair value differently for various types of financial instruments.

Certain assets and liabilities are measured at fair value on a recurring and non-recurring basis in the Consolidated Statements of Financial Condition. The fair value of certain other financial instruments are not required to be measured at fair value in the Consolidated Statements of Financial Condition and are disclosed in the “Financial Instruments Required to be Disclosed at Fair Value” section of this footnote.

Certain other financial instruments, such as FHLB stock, and all non-financial instruments are excluded from the fair value accounting guidance. Therefore, any aggregation of the estimated fair values presented does not represent the underlying value of the Company.

Depending on the nature of the asset or liability, the Company uses various valuation methodologies and assumptions to estimate fair value. GAAP establishes a three-tiered fair value hierarchy based on the inputs used to measure fair value. The hierarchy is defined as follows:

·   Level 1 – Quoted prices in active markets for identical assets or liabilities.

·   Level 2 – Observable inputs other than level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

·   Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs require significant management judgment or estimation, some of which use model-based techniques and may be internally developed.

Assets and liabilities are assigned to a level within the fair value hierarchy based on the lowest level of significant input used to measure fair value (i.e. if both level 2 assumptions and level 3 assumptions are used, the asset or liability is classified in level 3). Assets and liabilities may change hierarchy level due to market conditions or other circumstances. These transfers are recognized on the date of the event that prompted the transfer. There were no transfers of assets or liabilities between levels of the fair value hierarchy during the periods presented.

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Assets and Liabilities Required to be Measured at Fair Value on a Recurring Basis

The following table provides the hierarchy level and corresponding fair value for assets and liabilities required to be measured at fair value on a recurring basis in the Consolidated Statements of Financial Condition.

Recurring Fair Value Measurements

(Dollar amounts in thousands)

	March 31, 2012						December 31, 2011
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Trading securities:
Money market funds	$	1,209	$	-	$	-	$	1,565	$	-	$	-
Mutual funds		14,822		-		-		12,904		-		-
Total trading securities		16,031		-		-		14,469		-		-
Securities available-for-sale:
U.S. agency securities		-		5,011		-		-		5,035		-
CMOs		-		507,546		-		-		384,104		-
Other residential MBSs		-		136,001		-		-		87,691		-
Municipal securities		-		488,003		-		-		490,071		-
CDOs		-		-		13,685		-		-		13,394
Corporate debt securities		-		30,733		-		-		30,014		-
Hedge fund investment		-		1,936		-		-		1,616		-
Other equity securities		42		1,018		-		41		1,040		-
Total securities available-           for-sale		42		1,170,248		13,685		41		999,571		13,394
Mortgage servicing rights (1)		-		-		878		-		-		929
Liabilities:
Derivative liabilities (2)	$	-	$	2,319	$	-	$	-	$	2,459	$	-

(1)	Included in other assets in the Consolidated Statements of Financial Condition.
(2)	Included in other liabilities in the Consolidated Statements of Financial Condition.

Trading Securities

Trading securities represent diversified investment securities held in a rabbi trust and are invested in money market and mutual funds. The fair value of these money market and mutual funds is based on quoted market prices in active exchange markets and classified in level 1 of the fair value hierarchy. Changes in the fair value of trading securities are included as a separate component of noninterest income in the Condensed Consolidated Statements of Income.

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Securities Available-for-Sale

U.S. Agency Securities, CMOs, Other Residential MBSs, Municipal Securities, Corporate Debt Securities, and Other Equity Securities– These securities are primarily fixed income instruments that are not quoted on an exchange, but may be traded in active markets. The fair values are based on quoted prices in active markets or market prices for similar securities obtained from external pricing services or dealer market participants and are classified in level 2 of the fair value hierarchy. Quarterly, the Company evaluates the methodologies used by its external pricing services to develop the fair values to determine whether the results of the valuations are representative of an exit price in the Company’s principal markets and an appropriate representation of fair value.

CDOs– CDOs are classified in level 3 of the fair value hierarchy.

Rollforward of the Carrying Value of CDOs

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012		2011
Balance at beginning of period	$	13,394	$	14,858
Total (loss) income:
Included in earnings (1)		(721)		-
Included in other comprehensive income (2)		1,012		1,335
Purchases		-		-
Sales		-		-
Issuances		-		-
Settlements		-		-
Balance at end of period	$	13,685	$	16,193
Change in unrealized losses recognized in earnings relating      to securities still held at end of period	$	(721)	$	-

(1)	Included in net securities (losses) gains in the Condensed Consolidated Statements of Income and related to securities still held at the end of the period.
(2)	Included in unrealized holding gains in the Consolidated Statements of Comprehensive Income.

The Company estimates the fair values for each CDO using discounted cash flow analyses with the assistance of a structured credit valuation firm. These analyses rely on credit analysis and review of historical financial data for each of the issuers of the securities underlying the individual CDO (the “Issuers”) to estimate the cash flows. These estimates are highly subjective and sensitive to several significant, unobservable input assumptions, including prepayment assumptions, default probabilities, loss given default assumptions, and deferral cure probabilities. The cash flows for each Issuer are then discounted to their present values using LIBOR plus an adjustment to reflect the higher risk inherent in these securities given their complex structures and the impact of the current market environment. Finally, the discounted cash flows for each Issuer are aggregated to derive the estimated fair value for the specific CDO. Specific information for each CDO, as well as the significant unobservable assumptions, is presented in the following table.

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Characteristics of CDOs and Unobservable Inputs Significant

to the Valuation of CDOs as of March 31, 2012

(Dollar amounts in thousands)

	CDO Number (1)
	1		2		3		4		5		6
Characteristics:
Class (2)		C-1		C-1		C-1		B1		C		C
Original par	$	17,500	$	15,000	$	15,000	$	15,000	$	10,000	$	6,500
Amortized cost		7,140		6,490		12,990		13,922		1,317		6,179
Fair value		3,180		1,251		2,963		4,168		408		1,715
Lowest credit rating (Moody’s)		Ca		Ca		Ca		Ca		C		Ca
Number of underlying Issuers		46		57		62		63		56		79
Percent of Issuers currently performing		78.3%		78.9%		74.2%		55.6%		60.7%		67.1%
Current deferral and default percent (3)		14.6%		16.9%		12.8%		33.3%		40.4%		27.2%
Expected future deferral and default       percent (4)		19.9%		22.1%		16.1%		28.6%		27.2%		12.8%
Excess subordination percent (5)		0.0%		0.0%		1.0%		0.0%		0.0%		5.6%
Discount rate risk adjustment, in basis         points (6)		1,400		1,400		1,400		1,300		1,400		1,300
Significant unobservable assumptions, weighted average of Issuers:
Probability of prepayments		8.3%		4.3%		3.2%		7.0%		7.2%		3.2%
Probability of default		22.9%		27.5%		21.5%		29.2%		39.9%		28.1%
Loss given default		88.2%		88.7%		89.8%		92.6%		92.7%		95.3%
Probability of deferral cure		31.8%		24.0%		30.4%		42.9%		32.1%		51.1%

(1)	The Company has a seventh CDO, but no information is reported for that CDO since the security had an amortized cost and fair value of zero as of March 31, 2012.
(2)	Class refers to the Company’s tranche within the security. In a structured investment, a tranche is one of a number of related securities offered as part of the same transaction and relates to the order in which investors receive principal and interest payments (i.e. tranche B pays before tranche C).
(3)	Represents actual deferrals and defaults, net of recoveries, as a percent of the original collateral.
(4)	Represents expected future net deferrals and defaults, net of recoveries, as a percent of the remaining performing collateral.
(5)	Represents additional defaults that the CDO can absorb before the security experiences any credit impairment. The excess subordination percentage is calculated by dividing the amount of potential additional loss that can be absorbed (before the receipt of all expected future principal and interest payments is affected) by the total balance of performing collateral.
(6)	Cash flows are discounted at LIBOR plus this adjustment to reflect the higher risk inherent in these securities given the current market environment.

Most Issuers have the right to prepay the securities on the fifth anniversary of issuance and under other limited circumstances. To estimate prepayments, a credit analysis of each Issuer is performed to ascertain its ability and likelihood to fund a prepayment. If a prepayment occurs, the Company receives cash equal to the par value for the portion of the CDO associated with that Issuer. Since there are a number of Issuers underlying each CDO, prepayments by a small number of Issuers would not likely have a material impact on the fair value of the CDO.

The probability of future defaults is derived for each Issuer based on a credit analysis. The associated assumed loss given default is based on historical default and recovery information provided by a nationally recognized credit rating agency and is assumed to be 90% for banks, 85% for insurance companies, and 100% for Issuers that have already defaulted.

The likelihood an Issuer who is currently deferring payment on the securities will pay all deferred amounts and remain current thereafter is based on an analysis of the Issuer’s asset quality, leverage ratios, and other measures of financial viability.

The impact of changes in these key inputs could result in a significantly higher or lower fair value measurement for each CDO. The timing of the default, the magnitude of the default, and the timing and magnitude of the cure probability are directly interrelated. Defaults that occur sooner and/or are greater than anticipated have a negative impact on the valuation. In addition, a high cure probability assumption has a positive effect on the fair value, and, if a cure event takes place sooner than anticipated, the impact on the valuation is also favorable.

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The Company’s Treasury Department monitors the valuation results of each CDO on a quarterly basis, which includes an analysis of historical pricing trends for these types of securities, overall economic conditions (such as tracking LIBOR curves), and the performance of the Issuers’ industries. The Company’s Treasury Department also reviews market activity for the same or similar tranches of the CDOs, when available. Annually, it validates significant assumptions by reviewing detailed back-testing performed by the valuation firm.

Hedge Fund Investment– The Company’s hedge fund investment is classified in level 2 of the fair value hierarchy. The fair value is derived from monthly and annual financial statements provided by hedge fund management. The majority of the hedge fund’s investment portfolio is held in securities that are freely tradable and are listed on national securities exchanges.

Mortgage Servicing Rights

The Company services loans for others totaling $74.7 million as of March 31, 2012 and $78.6 million as of December 31, 2011. These loans are owned by third parties and are not included in the Consolidated Statements of Condition. The Company estimates the fair value of mortgage servicing rights by using a discounted cash flow analysis and classifies them in level 3 of the fair value hierarchy. Additional information regarding the Company’s mortgage servicing rights can be found in Footnote 22, “Fair Value,” in the Company’s 2011 10-K.

Derivative Assets and Derivative Liabilities

The interest rate swaps entered into by the Company are executed in the dealer market, and pricing is based on market quotes obtained from the counterparty. The market quotes were developed using market observable inputs, which primarily include LIBOR. Therefore, derivatives are classified in level 2 of the fair value hierarchy. For its derivative assets and liabilities, the Company also considers non-performance risk, including the likelihood of default by itself and its counterparties, when evaluating whether the market quotes from the counterparty are representative of an exit price.

Assets and Liabilities Required to be Measured at Fair Value on a Non-recurring Basis

The following table provides the hierarchy level and corresponding fair value for each class of assets and liabilities required to be measured at fair value on a non-recurring basis in the Consolidated Statements of Financial Condition.

Non-recurring Fair Value Measurements

(Dollar amounts in thousands)

	March 31, 2012						December 31, 2011
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Collateral-dependent impaired   loans	$	-	$	-	$	120,190	$	-	$	-	$	96,220
OREO (1)		-		-		52,266		-		-		57,430
Loans held-for-sale (2)		-		-		1,500		-		-		4,200
Assets held-for-sale (3)		-		-		7,933		-		-		7,933

(1)	Includes covered OREO.
(2)	Included in other assets in the Consolidated Statements of Financial Condition.
(3)	Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition.

Collateral-Dependent Impaired Loans

Certain collateral-dependent impaired loans are subject to fair value adjustments to reflect the difference between the carrying value of the loans and the value of the underlying collateral. The fair values of collateral-dependent impaired loans are primarily determined by current appraised values of the underlying collateral, net of estimated selling costs, which range from 0% - 6%. Circumstances may warrant an adjustment to the appraised value based on the age and/or type of appraisal, and these adjustments typically range from 0% - 20%. Generally, appraisals greater than twelve months old are adjusted to account for estimated declines in the real estate market until an updated appraisal can be obtained.  In addition, the Company may adjust appraised values to account for differences in disposition strategies, such as adjusting a “stabilized” value to an “orderly liquidation” value. In certain cases, an internal valuation may be used when the underlying collateral is located in areas where comparable sales data is limited or unavailable. Accordingly, collateral-dependent impaired loans are classified in level 3 of the fair value hierarchy.

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Collateral-dependent impaired loans for which the fair value is greater than the recorded investment are not measured at fair value in the Consolidated Statements of Financial Condition and are not included in this disclosure.

Other Real Estate Owned

OREO consists of properties acquired through foreclosure in partial or total satisfaction of certain loans. Upon initial transfer into OREO, properties are recorded at the lower of the recorded investment in the related loan(s) or the fair value, which represents the current appraised value of the properties, less estimated selling costs (which range from 0% - 6%). In certain circumstances, a current appraisal may not be available or the current appraised value may not represent an accurate measurement of the property’s fair value due to outdated market information or other factors. In these cases, the fair value is determined based on the lower of the (i) current appraised value, (ii) broker price opinion, (iii) current listing price, or (iv) signed sales contract. Given these valuation methods, OREO is classified in level 3 of the fair value hierarchy. Any write-downs in the carrying value of a property at the time of initial transfer into OREO are charged against the allowance for loan losses.

Subsequent to the initial transfer, periodic impairment analyses of OREO are performed, and new appraisals are obtained as necessary taking into consideration current real estate market trends and adjustments to listing prices. Any write-downs of the properties subsequent to initial transfer, as well as gains or losses on disposition and income or expense from the operations of OREO, are recognized in the Company’s operating results in the period in which they occur.

Loans Held-for-Sale

As of March 31, 2012, one office loan was classified as held-for-sale, and it was transferred into the held-for-sale category at the sales contract price. Accordingly, the loan held-for-sale is classified in level 3 of the fair value hierarchy.

Assets Held-for-Sale

In the second quarter of 2011, the Company entered into an agreement to sell an office property and classified it as held-for-sale. The fair value of the property is based on a third quarter 2011 sales contract price and classified in level 3 of the fair value hierarchy.

Fair Value Adjustments Recorded for

Assets Measured at Fair Value on a Non-Recurring Basis

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012				2011
	Charged to Allowance for Loan Losses		Charged to Earnings		Charged to Allowance for Loan Losses		Charged to Earnings
Collateral-dependent impaired loans	$	18,740	$	-	$	16,810	$	-
OREO		-		690		-		1,112
Loans held-for-sale		3,135		-		200		-
Assets held-for-sale		-		-		-		310

Goodwill and Other Intangible Assets

Goodwill and other intangible assets are subject to impairment testing, which requires a significant degree of management judgment and the use of significant unobservable inputs. Goodwill is tested at least annually for impairment or more often if events or circumstances between annual tests indicate that there may be impairment. If the testing had resulted in impairment, the Company would have classified goodwill and other intangible assets subjected to nonrecurring fair value adjustments as a level 3 nonrecurring fair value measurement. Additional information regarding goodwill, other intangible assets, and impairment policies can be found in Note 1, “Summary of Significant Accounting Policies,” and Note 8, “Goodwill and Other Intangible Assets,” contained in the Company’s 2011 Form 10-K.

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Financial Instruments Required to be Disclosed at Fair Value

The Company is required to disclose the estimated fair values of certain financial instruments that are not required to be measured at fair value in the Consolidated Statements of Financial Position. The following table provides the hierarchy level and related fair value measurement for each class of these financial assets and liabilities.

Financial Instruments Required to be Disclosed at Fair Value

(Dollar amounts in thousands)

	March 31, 2012								December 31, 2011
	Carrying Amount		Fair Value						Carrying Amount		Fair Value
			Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
Assets:
Cash and due from banks	$	105,722	$	105,722	$	-	$	-	$	123,354	$	123,354	$	-	$	-
Interest-bearing deposits in    other banks		380,651		-		380,651		-		518,176		-		518,176		-
Securities held-to-    maturity:
Municipal securities		56,319		-		59,364		-		60,458		-		61,477		-
Loans, net of allowance for    loan losses:
Commercial and industrial		1,496,966		-		-		1,498,870		1,458,446		-		-		1,460,972
Agricultural		237,686		-		-		236,753		243,776		-		-		243,035
Office, retail, and          industrial		1,366,899		-		-		1,375,680		1,299,082		-		-		1,303,288
Multi-family		301,356		-		-		304,217		288,336		-		-		290,645
Residential construction		99,768		-		-		100,165		105,836		-		-		106,145
Commercial construction		142,307		-		-		142,503		144,909		-		-		145,305
Other commercial real      estate		829,005		-		-		833,919		888,146		-		-		890,275
Home equity		406,367		-		-		387,653		416,194		-		-		394,404
1-4 family mortgages		217,729		-		-		222,162		201,099		-		-		206,115
Installment loans		39,245		-		-		40,218		42,289		-		-		43,030
Covered loans		251,376		-		-		274,983		260,502		-		-		288,021
Allowance for loan losses		(116,264)		-		-		(116,264)		(119,462)		-		-		(119,462)
Loans, net of allowance         for loan losses		5,272,440		-		-		5,300,859		5,229,153		-		-		5,251,773
FDIC indemnification asset		58,488		-		-		31,486		65,609		-		-		37,173
Accrued interest receivable		29,423		-		29,423				29,826		-		29,826
Investment in BOLI		206,304		-		-		206,304		206,235		-		-		206,235
Liabilities:
Deposits
Demand deposits	$	1,637,593	$	-	$	1,637,593	$	-	$	1,593,773	$	-	$	1,593,773	$	-
Savings deposits		1,030,554		-		1,030,554		-		970,016		-		970,016		-
NOW accounts		1,055,558		-		1,055,558		-		1,057,887		-		1,057,887		-
Money market deposits		1,173,388		-		1,173,388		-		1,198,382		-		1,198,382		-
Time deposits		1,589,270		-		1,591,759		-		1,659,117		-		1,659,251		-
Total deposits		6,486,363		-		6,488,852		-		6,479,175		-		6,479,309		-
Borrowed funds		202,155		-		205,777		-		205,371		-		208,728		-
Senior and  subordinated       debt		231,106		226,442		-		-		252,153		237,393		-		-
Accrued interest payable		7,155		-		7,155		-		4,019		-		4,019		-
Standby letters of credit		598		-		598		-		668		-		668		-

Management uses various methodologies and assumptions as described below to determine the estimated fair values of the Company’s financial instruments. The fair value estimates are made at a discrete point in time based on relevant market information and consider management’s judgments regarding future expected economic conditions, loss experience, and risk characteristics of the financial instruments.

Short-Term Financial Assets and Liabilities - For financial instruments with a shorter-term or with no stated maturity, prevailing market rates, and limited credit risk, the carrying amounts approximate fair value. Those financial instruments

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include cash and due from banks, interest-bearing deposits in other banks, federal funds sold and other short-term investments, mortgages held-for-sale, accrued interest receivable, and accrued interest payable.

Securities Held-to-Maturity - The fair value of securities held-to-maturity is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.

Loans, net of Allowance for Loan Losses - The fair value of loans is estimated using the present value of the future cash flows of the remaining maturities of the loans. Prepayment assumptions that consider the Company’s historical experience and current economic and lending conditions were included. The discount rate was based on the LIBOR yield curve with adjustments for liquidity and credit risk.

Covered Loans - The fair value of the covered loan portfolio is determined by discounting the expected cash flows at a market interest rate, which is derived from LIBOR swap rates over the life of these loans. The expected cash flows are determined using the contractual terms of the covered loans, net of any projected credit losses. For valuation purposes, these loans are placed into groups with similar characteristics and risk factors. The timing and amount of credit losses for each group are estimated using historical default and loss experience, current collateral valuations, borrower credit scores, and internal risk ratings. For individually significant loans or credit relationships, the estimated fair value is determined by a specific loan level review utilizing appraised values for collateral and projections of the timing and amount of cash flows.

FDIC Indemnification Asset - The fair value of the FDIC indemnification asset is calculated by discounting the cash flows expected to be received from the FDIC. The future cash flows are estimated by multiplying expected losses on covered loans and covered OREO by the reimbursement rates set forth in the FDIC Agreements. Improvements in estimated cash flows on covered loans and covered OREO generally result in a corresponding decline in the indemnification asset, while reductions in expected reimbursements from the FDIC lead to an increase in the indemnification asset.

Investment in BOLI - The fair value of BOLI approximates the carrying amount as both are based on each policy’s respective cash surrender value (“CSV”), which is the amount the Company would receive upon liquidation of these investments. The CSV is derived from monthly reports provided by the managing brokers and is determined using the Company’s initial insurance premium and earnings of the underlying assets, offset by management fees.

Deposit Liabilities - The fair values disclosed for demand deposits, savings deposits, NOW accounts, and money market deposits are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The fair value for fixed-rate time deposits was estimated using the future cash flows discounted based on the LIBOR yield curve, plus or minus the spread associated with current pricing.

Borrowed Funds - The fair value of repurchase agreements and FHLB advances is estimated by discounting the agreements based on maturities using the rates currently offered for repurchase agreements of similar remaining maturities. The carrying amounts of federal funds purchased, federal term auction facilities, and other borrowed funds approximate their fair value due to their short-term nature.

Senior and Subordinated Debt - The fair value of senior and subordinated debt was determined using quoted market prices.

Standby Letters of Credit - The fair value of standby letters of credit represents deferred fees arising from the related off-balance sheet financial instruments. These deferred fees approximate the fair value of these instruments and are based on several factors, including the remaining terms of the agreement and the credit standing of the customer.

Commitments - The Company estimated the fair value of commitments outstanding to be immaterial based on the following factors: (i) the limited interest rate exposure posed by the commitments outstanding due to their variable nature, (ii) the general short-term nature of the commitment periods entered into, (iii) termination clauses provided in the agreements, and (iv) the market rate of fees charged.

13.  SUBSEQUENT EVENTS

The Company evaluated the impact of events that occurred subsequent to March 31, 2012 through the date its consolidated financial statements were issued. Based on the evaluation, management does not believe any subsequent events occurred that would require further disclosure or adjustment to the consolidated financial statements.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

INTRODUCTION

The following discussion and analysis is intended to address the significant factors affecting our results of operations and financial condition for the quarters ended March 31, 2012 and 2011. When we use the terms “First Midwest,” the “Company,” “we,” “us,” and “our,” we mean First Midwest Bancorp, Inc., a Delaware Corporation, and its consolidated subsidiaries. When we use the term “Bank,” we are referring to our wholly owned banking subsidiary, First Midwest Bank. For your reference, a glossary of certain terms is presented on page 3 of this Form 10-Q. Management’s discussion and analysis should be read in conjunction with the consolidated financial statements and accompanying notes presented elsewhere in this report, as well as in our 2011 Annual Report on Form 10-K (“2011 10-K”). Results of operations for the quarter ended March 31, 2012 are not necessarily indicative of future results.

Our banking network is located primarily in suburban metropolitan Chicago with additional locations in northwest Indiana, central and western Illinois, and eastern Iowa. We provide a full range of business and retail banking and wealth management services through approximately 100 banking offices. Our primary sources of revenue are net interest income and fees from financial services provided to customers. Our largest expenses are interest on deposits and compensation expense.

Our results of operations are affected by various factors, many of which are beyond our control, including interest rates, general economic conditions (nationally and in our service areas), business spending, consumer confidence, certain seasonal factors, legislative changes, and changes in real estate and securities markets. Our management evaluates performance using a variety of qualitative and quantitative metrics. Primary quantitative metrics include:

· Pre-Tax, Pre-Provision Operating Earnings - Pre-tax, pre-provision operating earnings (which reflect our operating performance before the effects of credit-related charges and other unusual, infrequent, or non-recurring revenues and expenses) is a non-GAAP financial measure, which we believe is useful because it helps investors to assess the Company’s operating performance. A reconciliation of pre-tax, pre-provision operating earnings to GAAP can be found in Table 1.

· Net Interest Income - Net interest income is our primary source of revenue. Net interest income equals the difference between interest income and fees earned on interest-earning assets (such as loans and securities) and interest expense incurred on interest-bearing liabilities (such as deposits and borrowed funds).

· Net Interest Margin - Net interest margin equals net interest income divided by total interest-earning assets.

· Noninterest Income - Noninterest income is the income we earn from fee-based revenues (such as service charges on deposit accounts and wealth management fees), BOLI and other income, and non-operating revenues (such as securities gains and losses).

· Asset Quality - Asset quality is an estimation of the quality of our loan portfolio, including an assessment of the credit risk related to existing and potential loss exposure, and incorporates an evaluation of a variety of factors, such as non-performing loans to total loans.

· Regulatory Capital – Our regulatory capital is classified in one of the following two tiers: (i) Tier 1 capital consists of common equity, retained earnings, qualifying non-cumulative perpetual preferred stock, and qualifying trust-preferred securities, less goodwill and most intangible assets and (ii) Tier 2 capital includes qualifying subordinated debt and the allowance for credit losses, subject to limitations.

Unless otherwise stated, all earnings per common share data included in this section and throughout the remainder of this discussion are presented on a diluted basis.

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PERFORMANCE OVERVIEW

Table 1

Selected Financial Data (1)

(Dollar and share amounts in thousands, except per share data)

	Quarters Ended March 31,
	2012		2011		% Change
Operating Results
Interest income	$	75,268	$	81,283	(7.4)
Interest expense		(10,086)		(10,637)	(5.2)
Net interest income		65,182		70,646	(7.7)
Fee-based revenues		22,592		21,703	4.1
Other noninterest income		2,784		1,974	41.0
Noninterest expense, excluding losses realized on OREO (2)		(61,995)		(63,191)	(1.9)
Pre-tax, pre-provision operating earnings (3)		28,563		31,132	(8.3)
Provision for loan losses		(18,210)		(19,492)	(6.6)
Net (losses) gains on securities sales		(206)		540	N/M
Securities impairment losses		(737)		-	100.0
Gain on early extinguishment of debt		256		-	100.0
Write-downs of OREO (2)		(690)		(1,112)	(37.9)
Net gains (losses) on sales of OREO (2)		387		(1,115)	N/M
Severance-related costs (2)		(315)		-	100.0
Income before income tax		9,048		9,953	(9.1)
Income tax (expense) benefit		(1,156)		91	N/M
Net income		7,892		10,044	(21.4)
Preferred dividends and accretion on preferred stock		-		(2,581)	(100.0)
Net income applicable to non-vested restricted shares		(139)		(137)	1.5
Net income applicable to common shares	$	7,753	$	7,326	5.8
Weighted average diluted shares outstanding		73,505		73,151
Diluted earnings per common share	$	0.11	$	0.10
Performance Ratios (1)
Return on average common equity		3.21%		3.20%
Return on average assets		0.40%		0.50%
Net interest margin – tax equivalent		3.88%		4.15%
Efficiency ratio		64.62%		62.70%

N/M – Not meaningful.

(1)	All ratios are presented on an annualized basis.
(2)	For further discussion of net gains (losses) OREO and severance-related costs, see the “Noninterest Expense” section of this Item 2.
(3)	Our accounting and reporting policies conform to GAAP and general practice within the banking industry. As a supplement to GAAP, we provided this non-GAAP performance result, which we believe is useful because it assists investors in assessing our operating performance. Although it is intended to enhance investors’ understanding of our business and performance, this non-GAAP financial measure should not be considered an alternative to GAAP.

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	March 31, 2012		December 31, 2011		March 31, 2011		March 31, 2012 Change From
							December 31, 2011		March 31, 2011
Balance Sheet Highlights
Total assets	$	7,988,002	$	7,973,594	$	8,036,609	$	14,408	$	(48,607)
Total loans, excluding covered loans		5,137,328		5,088,113		5,095,543		49,215		41,785
Total loans, including covered loans		5,388,704		5,348,615		5,444,989		40,089		(56,285)
Total deposits		6,486,363		6,479,175		6,419,894		7,188		66,469
Transactional deposits		4,897,093		4,820,058		4,545,670		77,035		351,423
Loans, excluding covered loans, to   deposits ratio		79.2%		78.5%		79.4%
Transactional deposits to total deposits		75.5%		74.4%		70.8%

	March 31, 2012		December 31, 2011		March 31, 2011		March 31, 2012 Change From
							December 31, 2011		March 31, 2011
Asset Quality Highlights (1)
Non-accrual loans	$	199,545	$	187,325	$	186,563	$	12,220	$	12,982
90 days or more past due loans (still       accruing interest)		7,674		9,227		5,231		(1,553)		2,443
Total non-performing loans		207,219		196,552		191,794		10,667		15,425
TDRs (still accruing interest)		2,076		17,864		14,120		(15,788)		(12,044)
Other real estate owned		35,276		33,975		33,863		1,301		1,413
Total non-performing assets	$	244,571	$	248,391	$	239,777	$	(3,820)	$	4,794
30-89 days past due loans (still    accruing interest)	$	21,241	$	27,495	$	28,927	$	(6,254)	$	(7,686)
Allowance for credit losses	$	118,764	$	121,962	$	145,003	$	(3,198)	$	(26,239)
Allowance for credit losses as a    percent of loans		2.31%		2.40%		2.85%
Allowance for credit losses to    non-accrual loans		60%		65%		78%

(1) Excludes covered loans and covered OREO. For a discussion of covered assets, which consist of covered loans, covered OREO, and the related FDIC indemnification asset, refer to Note 5 of “Notes to Condensed Consolidated Financial Statements” in Item 1 of this Form 10-Q. Asset quality, including covered loans and covered OREO, is included in the “Loan Portfolio and Credit Quality” section of this Item 2.

Net income applicable to common shareholders for first quarter 2012 was $7.8 million, or $0.11 per share, compared to net income applicable to common shareholders of $7.3 million, or $0.10 per share, for first quarter 2011. Pre-tax, pre-provision operating earnings of $28.6 million for first quarter 2012 decreased $2.6 million, or 8.3%, compared to first quarter 2011.

In fourth quarter 2011, we redeemed and retired $193.0 million Series B preferred stock held by the United States Department of the Treasury (the “Treasury”) using a combination of existing liquid assets and proceeds from the completion of a $115.0 million senior debt offering. This transaction replaced a $2.4 million quarterly preferred dividend with $1.8 million in quarterly interest expense on the new senior debt. Although the Series B preferred stock redemption eliminated our quarterly preferred dividends and benefited net income applicable to common shares, it did not impact pre-tax, pre-provision operating earnings. The additional interest expense related to the senior debt reduced our quarterly pre-tax, pre-provision operating earnings and affects its comparison to prior periods.

A discussion of net interest income and noninterest income and expense is presented in the following section titled “Earnings Performance.”

Non-performing assets, excluding covered loans and covered OREO, were $244.6 million at March 31, 2012, decreasing $3.8 million, or 1.5%, from December 31, 2011. The reduction was substantially due to remediation activities, charge-offs, the

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return of $16.0 million in TDRs to performing status, and $8.5 million in OREO dispositions, largely offset by the downgrade of performing loans.

Loans 30 to 89 days past due and still accruing interest, excluding covered loans, of $21.2 million at March 31, 2012 declined $6.3 million, or 22.7%, from December 31, 2011. This represents the lowest level of 30 to 89 days past due loans since 2003. For further discussion of non-performing assets and past due loans, refer to the “Loan Portfolio and Credit Quality” section of this Item 2.

EARNINGS PERFORMANCE

Net Interest Income

Net interest income is our primary source of revenue. Net interest income equals the difference between interest income and fees earned on interest-earning assets (such as loans and securities) and interest expense incurred on interest-bearing liabilities (such as deposits and borrowed funds). Interest rates and the volume and mix of interest-earning assets and interest-bearing liabilities impact net interest income. Net interest margin equals net interest income divided by total average interest-earning assets. The accounting policies underlying the recognition of interest income on loans, securities, and other interest-earning assets are presented in Note 1 to the Consolidated Financial Statements of our 2011 10-K.

Our accounting and reporting policies conform to GAAP and general practice within the banking industry. For purposes of this discussion, both net interest income and net interest margin were adjusted to a fully tax-equivalent basis to more appropriately compare the returns on certain tax-exempt loans and securities to those on taxable interest-earning assets. Although we believe that these non-GAAP financial measures enhance investors’ understanding of our business and performance, they should not be considered an alternative to GAAP. The effect of this adjustment is at the bottom of Table 2.

Table 2 summarizes our average interest-earning assets and interest-bearing liabilities for the quarters ended March 31, 2012 and 2011, the related interest income and interest expense for each earning asset category and funding source, and the average interest rates earned and paid. Table 2 also details differences in interest income and expense from the prior year and the extent to which any changes are attributable to volume and rate fluctuations.

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Table 2

Net Interest Income and Margin Analysis

(Dollar amounts in thousands)

	Quarters Ended March 31,										Attribution of Change in Net Interest Income (1)
	2012					2011
	Average Balance		Interest		Yield/ Rate (%)	Average Balance		Interest		Yield/ Rate (%)	Volume		Yield/ Rate			Total
Assets:
Short-term investments	$	449,788	$	275	0.25	$	467,880	$	292	0.25	$	(11)	$	(6)	$	(17)
Trading securities		14,585		36	0.99		15,372		30	0.78		(1)		7		6
Investment securities (2)		1,163,338		11,734	4.03		1,166,991		13,048	4.47		(41)		(1,273)		(1,314)
FHLB and Federal Reserve Bank    stock		52,531		330	2.51		61,338		357	2.33		(60)		33		(27)
Loans, excluding covered loans (2)		5,089,286		61,983	4.90		5,075,840		63,301	5.06		215		(1,533)		(1,318)
Covered interest-earning assets (3)		318,569		4,202	5.31		444,242		7,822	7.14		(1,919)		(1,701)		(3,620)
Total loans		5,407,855		66,185	4.92		5,520,082		71,123	5.23		(1,704)		(3,234)		(4,938)
Total interest-earning assets (2)		7,088,097		78,560	4.45		7,231,663		84,850	4.75		(1,817)		(4,473)		(6,290)
Cash and due from banks		109,717					121,494
Allowance for loan losses		(123,667)					(148,051)
Other assets		883,044					889,845
Total assets	$	7,957,191				$	8,094,951
Liabilities and Stockholders’ Equity:
Savings deposits	$	995,955		283	0.11	$	901,205		476	0.21		57		(250)		(193)
NOW accounts		1,051,870		218	0.08		1,044,280		320	0.12		2		(104)		(102)
Money market deposits		1,184,316		521	0.18		1,240,439		860	0.28		(37)		(302)		(339)
Time deposits		1,621,926		4,491	1.11		1,937,890		6,015	1.26		(917)		(607)		(1,524)
Borrowed funds		203,548		515	1.02		285,847		680	0.96		(211)		46		(165)
Senior and subordinated debt		248,232		4,058	6.57		137,745		2,286	6.73		1,805		(33)		1,772
Total interest-bearing liabilities		5,305,847		10,086	0.76		5,547,406		10,637	0.78		699		(1,250)		(551)
Demand deposits		1,591,198					1,342,013
Other liabilities		89,778					83,217
Stockholders’ equity - common		970,368					929,315
Stockholders’ equity - preferred		-					193,000
Total liabilities and         stockholders’ equity	$	7,957,191				$	8,094,951
Net interest income/margin (2)			$	68,474	3.88			$	74,213	4.15	$	(2,516)	$	(3,223)	$	(5,739)
Net interest income (GAAP)			$	65,182				$	70,646
Tax equivalent adjustment				3,292					3,567
Tax-equivalent net interest         income			$	68,474				$	74,213

(1)	For purposes of this table, changes which are not due solely to volume changes or rate changes are allocated to these categories on the basis of the percentage relationship of each to the sum of the two.
(2)	Interest income and yields are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%.
(3)	Covered interest-earning assets consist of loans acquired through FDIC-assisted transactions and the related FDIC indemnification asset. For additional discussion, please refer to Note 5 of “Notes to Consolidated Financial Statements” in Item 1 of this Form 10-Q.

Average interest-earning assets for first quarter 2012 decreased $143.6 million, or 2.0%, from first quarter 2011. This reduction was primarily attributable to a decline in average covered interest-earning assets acquired in FDIC-assisted transactions.

First quarter 2012 tax-equivalent net interest income decreased $5.7 million, or 7.7%, compared to first quarter 2011. Tax-equivalent interest income declined $6.3 million due to a 30 basis point decline in tax-equivalent yield discussed below. Interest expense declined $551,000, as a reduction in interest expense paid on time and other deposits was partially offset by an increase in interest expense paid on senior and subordinated debt.

The growth in average senior and subordinated debt for first quarter 2012 compared to first quarter 2011 reflects the issuance of $115.0 million in senior debt in fourth quarter 2011, which was used to partially fund the redemption of the Series B

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preferred stock issued to the Treasury. Interest expense paid on the new senior debt reduced net interest margin by 10 basis points in first quarter 2012.

Tax-equivalent net interest margin for first quarter 2012 was 3.88%, a decline of 27 basis points from first quarter 2011, primarily reflecting interest paid on the new senior debt, a decline in average covered interest-earning assets, and the impact of lower interest rate spreads earned on loans and investment securities resulting from a decline in market interest rates over this period.

Interest earned on covered loans is generally recognized through the accretion of the discount taken on expected future cash flows. The yield on covered interest-earning assets for first quarter 2012 declined from first quarter 2011, which included adjustments in accretable yield based on actual cash realized in excess of estimates upon final settlement of certain covered loans.

Noninterest Income

A summary of noninterest income for the quarters ended March 31, 2012 and 2011 is presented in the following table.

Table 3

Noninterest Income Analysis

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012		2011		% Change
Service charges on deposit accounts	$	8,660	$	8,144	6.3
Wealth management fees		5,392		5,053	6.7
Other service charges, commissions, and fees		3,520		3,977	(11.5)
Card-based fees (1)		5,020		4,529	10.8
Total fee-based revenues		22,592		21,703	4.1
BOLI income (2)		248		252	(1.6)
Other income (3)		1,135		978	16.1
Total operating revenues		23,975		22,933	4.5
Net trading gains (4)		1,401		744	88.3
Net (losses) gains on securities sales (5)		(206)		540	N/M
Securities impairment losses (5)		(737)		-	N/M
Gain on early extinguishment of debt (6)		256		-	N/M
Total noninterest income	$	24,689	$	24,217	1.9

N/M – Not meaningful.

(1)	Card-based fees consist of debit and credit card interchange fees charged for processing transactions as well as various fees charged on both customer and non-customer automated teller machine (“ATM”) and point-of-sale transactions processed through the ATM and point-of-sale networks.
(2)	BOLI income represents benefit payments received and the CSV of the policies, net of premiums paid. The change in CSV is attributed to earnings or losses credited to the policies based on investments made by the insurer. For a further discussion of our investment in BOLI, see Note 1 to the Consolidated Financial Statements of our 2011 10-K.
(3)	Other income consists of various items, including safe deposit box rentals, miscellaneous recoveries, and gains on the sales of various assets.
(4)	Net trading gains result from changes in the fair value of trading securities. Our trading securities represent diversified investment securities held in a grantor trust under deferred compensation arrangements in which plan participants may direct amounts earned to be invested in securities other than Company stock. Net trading gains are substantially offset by an adjustment to salaries and wages expense.
(5)	For a discussion of these items, see the “Investment Portfolio Management” section of this Item 2.
(6)	The gain on early extinguishment of debt relates to the retirement of approximately $21 million in trust preferred junior subordinated debentures.

Total noninterest income increased 1.9% for first quarter 2012 compared to first quarter 2011. The growth reflects increases in several categories of operating revenues, which were partially offset by net securities losses for first quarter 2012 compared to net securities gains for first quarter 2011.

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Fee-based revenues for first quarter 2012 rose 4.1% compared to first quarter 2011 as a result of market-driven price increases that were effective in second quarter 2011 and contributed to growth in service charges, commissions, and fees and card-based fees. The increase in service charges on deposit accounts was partially offset by a decline in the number of occurrences of non-sufficient funds fees.

The first quarter 2012 increase in wealth management fees compared to the same period in 2011 was driven by higher levels of assets under management and custody, a one-time court-approved estate fee, and greater transaction volumes. Assets under management and custody grew over $80 million from March 31, 2011 to March 31, 2012 driven by sales generated through increased staffing levels and improved market performance.

A decline in merchant fees resulting from lower processing volumes by certain larger merchants drove the decrease in other service charges, commissions, and fees from first quarter 2011 to first quarter 2012. There is a corresponding decline in merchant card expense in the table that follows.

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Noninterest Expense

The following table presents the components of noninterest expense for the quarters ended March 31, 2012 and 2011.

Table 4

Noninterest Expense Analysis

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012		2011		% Change
Compensation expense:
Salaries and wages (1)	$	27,257	$	25,665	6.2
Employee benefits (1)		6,793		7,153	(5.0)
Total compensation expense		34,050		32,818	3.8
Net OREO expense:
Write-downs of OREO		690		1,112	(37.9)
Net (gains) losses on sales of OREO (2)		(387)		1,115	N/M
Net OREO operating expense (3)		1,561		1,704	(8.4)
Total OREO expense		1,864		3,931	(52.6)
Professional services:
Loan remediation costs		2,788		2,848	(2.1)
Other professional services (1)		2,841		2,271	25.1
Total professional services		5,629		5,119	10.0
Net occupancy expense		6,205		6,784	(8.5)
Equipment expense		2,126		2,319	(8.3)
Technology and related costs		2,858		2,623	9.0
FDIC insurance premiums		1,719		2,725	(36.9)
Advertising and promotions		870		1,079	(19.4)
Merchant card expense		1,796		2,088	(14.0)
Other expenses		5,496		5,932	(7.3)
Total noninterest expense	$	62,613	$	65,418	(4.3)
Full-time equivalent employees		1,757		1,845	(4.8)
Efficiency ratio (4)		64.62%		62.70%

N/M – Not meaningful.

(1)	In first quarter 2012, the Company recorded a $315,000 charge for severance costs related to an organizational realignment. The charge included $258,000 in salaries and wages, $26,000 in retirement and other employee benefits, and $31,000 in other professional services.
(2)	For a discussion of sales of OREO properties, refer to the “Non-performing assets” section of this Item 2.
(3)	Net OREO operating expense consists of real estate taxes, commissions paid on sales, insurance, and maintenance, net of any rental income.
(4)	The efficiency ratio expresses noninterest expense, excluding OREO expense, as a percentage of tax-equivalent net interest income plus total fees and other income.

Total noninterest expense for first quarter 2012 declined 4.3% from first quarter 2011.

Salaries and wages in first quarter 2012 were higher than first quarter 2011 due to annual merit increases and higher expense related to an increase in the obligations to participants in deferred compensation plans resulting from changes in the fair value of trading securities held on behalf of plan participants. Excluding this year-over-year fair value increase (which is largely offset by an increase in noninterest income described above), salaries and wages would have increased 3.3% from first quarter 2011. The variance in employee benefits for this period primarily resulted from lower pension and profit sharing expense.

OREO expenses for first quarter 2012 declined 52.6% from first quarter 2011 due to lower OREO write-downs in addition to gains realized on the sale of OREO properties in first quarter 2012 compared to losses realized for first quarter 2011.

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Other professional services for first quarter 2012 included higher personnel recruitment expense compared to first quarter 2011 as well as certain non-recurring items. Occupancy expense benefited from a mild winter season as lower snow removal and utility costs were incurred in first quarter 2012 compared to first quarter 2011. FDIC premiums decreased compared to first quarter 2011 primarily due to a change in regulatory requirements for calculating the premium.

Income Taxes

Our provision for income taxes includes both federal and state income tax expense. An analysis of the provision for income taxes is detailed in the following table.

Table 5

Income Tax Expense (Benefit) Analysis

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012		2011		% Change
Income before income tax expense (benefit)	$	9,048	$	9,953	(9.1)
Income tax expense (benefit):
Federal income tax expense	$	845	$	910	(7.1)
State income tax expense (benefit)		311		(1,001)	N/M
Total income tax expense (benefit)	$	1,156	$	(91)	N/M
Effective income tax rate		12.8%		(0.9%)

N/M – Not meaningful.

Federal income tax expense and the related effective income tax rate are primarily influenced by the amount of tax-exempt income derived from investment securities and bank-owned life insurance in relation to pre-tax income and state income taxes. State income tax expense (benefit) and the related effective tax rate are influenced by the amount of state tax-exempt income in relation to pre-tax income and state tax rules relating to consolidated/combined reporting and sourcing of income and expense.

Income tax expense was $1.2 million for first quarter 2012 compared to an income tax benefit of $91,000 for first quarter 2011. This increase was due primarily to a $1.6 million state income tax benefit recorded in first quarter 2011 related to an increase in deferred tax assets resulting from an increase in the Illinois corporate tax rate from 7.3% to 9.5% effective January 1, 2011.

Our accounting policies underlying the recognition of income taxes in the Consolidated Statements of Financial Condition and Income are included in Notes 1 and 14 to the Consolidated Financial Statements of our 2011 10-K.

FINANCIAL CONDITION

Investment Portfolio Management

Securities that we have the positive intent and ability to hold until maturity are classified as securities held-to-maturity and are accounted for using historical cost, adjusted for amortization of premiums and accretion of discounts. Trading securities are carried at fair value with changes in fair value included in other noninterest income. Our trading securities consist of securities held in a rabbi trust for our nonqualified deferred compensation plan and are not considered part of the traditional investment portfolio. All other securities are classified as securities available-for-sale and are carried at fair value.

We manage our investment portfolio to maximize the return on invested funds within acceptable risk guidelines, to meet pledging and liquidity requirements, and to adjust balance sheet interest rate sensitivity to mitigate the impact of changes in interest rates on net interest income.

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From time to time, we adjust the size and composition of our securities portfolio based on a number of factors, including expected loan growth, anticipated changes in collateralized public funds on account, the interest rate environment, and the related value of various segments of the securities markets. The following table provides a valuation summary of our investment portfolio.

Table 6

Investment Portfolio Valuation Summary

(Dollar amounts in thousands)

	March 31, 2012							December 31, 2011
	Fair Value		Unrealized Gains (Losses)		Amortized Cost		% of Total Amortized Cost	Fair Value		Unrealized Gains (Losses)		Amortized Cost		% of Total Amortized Cost
Available-for-Sale
U.S. agency securities	$	5,011	$	(18)	$	5,029	0.4	$	5,035	$	(25)	$	5,060	0.5
CMOs		507,546		2,885		504,661	40.8		384,104		276		383,828	35.7
Other MBSs		136,001		5,738		130,263	10.5		87,691		5,709		81,982	7.7
Municipal securities		488,003		25,018		462,985	37.4		490,071		25,789		464,282	43.2
CDOs		13,685		(34,353)		48,038	3.9		13,394		(35,365)		48,759	4.5
Corporate debt securities		30,733		3,194		27,539	2.2		30,014		2,503		27,511	2.6
Equity securities		2,996		773		2,223	0.2		2,697		508		2,189	0.2
Total available-for-         sale		1,183,975		3,237		1,180,738	95.4		1,013,006		(605)		1,013,611	94.4
Held-to-Maturity
Municipal securities		59,364		3,045		56,319	4.6		61,477		1,019		60,458	5.6
Total securities	$	1,243,339	$	6,282	$	1,237,057	100.0	$	1,074,483	$	414	$	1,074,069	100.0

	March 31, 2012			December 31, 2011
	Effective Duration (1)	Average Life (2)	Yield to Maturity (3)	Effective Duration (1)	Average Life (2)	Yield to Maturity (3)
Available-for-Sale
U.S. agency securities	0.71%	0.28	4.13%	0.85%	0.53	4.01%
CMOs	1.32%	2.48	1.32%	0.92%	2.19	1.57%
Other MBSs	2.52%	4.08	3.24%	1.96%	3.91	4.50%
Municipal securities	3.95%	3.56	6.08%	3.84%	3.77	6.13%
CDOs	0.25%	8.52	0.00%	0.25%	8.57	0.00%
Other securities	5.98%	10.12	6.43%	6.07%	10.29	6.45%
Total available-for-sale	2.55%	3.49	3.49%	2.45%	3.57	3.98%
Held-to-Maturity
Municipal securities	4.78%	7.46	5.98%	5.31%	9.33	5.91%
Total securities	2.65%	3.68	3.60%	2.61%	3.90	4.08%

(1)	The effective duration of the securities portfolio represents the estimated percentage change in the fair value of the securities portfolio given a 100 basis point increase or decrease in the level of interest rates. This measure is used as a gauge of the portfolio’s price volatility at a single point in time and is not intended to be a precise predictor of future fair values since those values will be influenced by a number of factors.
(2)	Average life is presented in years and represents the weighted-average time to receive all future cash flows using the dollar amount of principal paydowns, including estimated principal prepayments, as the weighting factor.
(3)	Yields on municipal securities are reflected on a tax-equivalent basis, assuming a federal income tax rate of 35%.

Portfolio Composition

As of March 31, 2012, our securities portfolio totaled $1.2 billion, an increase of 15.7% compared to December 31, 2011 primarily in CMOs and other MBSs. In first quarter 2012, deposits acquired in a fourth quarter 2011 transaction that had previously been held in short-term investments were redeployed into these types of securities. Approximately 96% of our $1.2 billion available-for-sale portfolio was comprised of U.S. agency securities, municipal securities, CMOs, and other

49

MBSs as of March 31, 2012. The remainder consisted of seven CDOs with a fair value of $13.7 million and miscellaneous other securities totaling $33.7 million.

Investments in municipal securities comprised 41.2%, or $488.0 million, of the total available-for-sale securities portfolio at March 31, 2012, and the majority is general obligations of local municipalities. Our municipal securities portfolio has historically experienced very low default rates and provided a predictable cash flow. Available-for-sale municipal securities declined less than one percent from $490.1 million at December 31, 2011.

The average life and effective duration of our available-for-sale securities portfolio are relatively stable as of March 31, 2012 compared to December 31, 2011 as interest rates have been largely unchanged.

Securities Sales

Net securities losses were $943,000 for first quarter 2012, which included a loss of $247,000 on Visa stock, gains of $41,000 from the sale of $2.7 million in municipal securities, and an OTTI charge of $737,000 on a single CDO.

Net securities gains were $540,000 for first quarter 2011 resulting from the sale of $44.2 million in CMOs and municipal securities.

Unrealized Gains and Losses

Unrealized gains and losses on securities available-for-sale represent the difference between the aggregate cost and fair value of the portfolio and are reported, on an after-tax basis, as a separate component of stockholders’ equity in accumulated other comprehensive loss and presented in the Consolidated Statements of Comprehensive Income. This balance sheet component will fluctuate as current market interest rates and conditions change and affect the aggregate fair value of the portfolio. Net unrealized gains at March 31, 2012 were $3.2 million compared to net unrealized losses of $605,000 at December 31, 2011.

CMOs and other MBSs are either backed by U.S. government-owned agencies or issued by U.S. government-sponsored enterprises. We do not believe any individual unrealized loss on these types of securities as of March 31, 2012 represents OTTI since the unrealized losses associated with these securities are not believed to be attributable to credit quality, but rather to changes in interest rates and temporary market movements.

As of March 31, 2012, gross unrealized gains in the available-for-sale municipal securities portfolio totaled $25.3 million, and gross unrealized losses were $279,000, resulting in a net unrealized gain of $25.0 million compared to a net unrealized gain of $25.8 million as of December 31, 2011. Substantially all of these securities carry investment grade ratings with the majority of them supported by the general revenues of the issuing governmental entity and supported by third-party bond insurance or other types of credit enhancement. We do not believe the unrealized loss on any of these securities represents an OTTI.

Our investments in CDOs are supported by the credit of the underlying banks and insurance companies. The unrealized loss on these securities decreased $1.0 million since December 31, 2011. The unrealized loss reflects the difference between amortized cost and fair value that we determined did not relate to credit and reflects the market’s unfavorable bias toward these investments. We do not believe the unrealized losses on the CDOs as of March 31, 2012 represent OTTI. We currently have no evidence that would suggest further reductions in net cash flows on these investments from what has already been recognized. In addition, we do not intend to sell the CDOs with unrealized losses, and we do not believe it is more likely than not that we will be required to sell them before recovery of their amortized cost bases, which may be at maturity. Our estimation of  fair values for the CDOs was based on discounted cash flow analyses as described in Note 12 of “Notes to the Condensed Consolidated Financial Statements,” in Item 1 of this Form 10-Q.

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LOAN PORTFOLIO AND CREDIT QUALITY

Portfolio Composition

Our loan portfolio is comprised of both corporate and consumer loans with corporate loans representing 87.1% of total loans outstanding at March 31, 2012. The corporate loan component is comprised of commercial and industrial, agricultural, and commercial real estate lending categories. Consistent with our emphasis on relationship banking, the majority of our loans are made to our core, multi-relationship customers.

Table 7

Loan Portfolio

(Dollar amounts in thousands)

	March 31, 2012		% of Total	December 31, 2011		% of Total	Annualized % Change
Commercial and industrial	$	1,496,966	29.2	$	1,458,446	28.7	10.6
Agricultural		237,686	4.6		243,776	4.8	(10.0)
Commercial real estate:
Office		480,288	9.4		444,368	8.7	32.3
Retail		371,258	7.2		334,034	6.6	44.6
Industrial		515,353	10.0		520,680	10.2	(4.1)
Multi-family		301,356	5.9		288,336	5.7	18.1
Residential construction		99,768	1.9		105,836	2.1	(22.9)
Commercial construction		142,307	2.8		144,909	2.8	(7.2)
Other commercial real estate (1)		829,005	16.1		888,146	17.4	(26.6)
Total commercial real estate		2,739,335	53.3		2,726,309	53.5	1.9
Total corporate loans		4,473,987	87.1		4,428,531	87.0	4.1
Home equity		406,367	7.9		416,194	8.2	(9.4)
1-4 family mortgages		217,729	4.2		201,099	4.0	33.1
Installment loans		39,245	0.8		42,289	0.8	(28.8)
Total consumer loans		663,341	12.9		659,582	13.0	2.3
Total loans, excluding covered loans		5,137,328	100.0		5,088,113	100.0	3.9
Covered loans (2)		251,376			260,502		(14.0)
Total loans	$	5,388,704		$	5,348,615		3.0

(1)	Approximately $50 million of certain other commercial real estate loans as of December 31, 2011 were reclassified into other loan categories as of March 31, 2012, primarily office and retail commercial real estate.
(2)	For a detailed discussion of our covered loans and the related accounting policy for covered loans, refer to Notes 1 and 5 of “Notes to the Condensed Consolidated Financial Statements” in Item 1 of this Form 10-Q.

Total loans, including covered loans, of $5.4 billion as of March 31, 2012 were up $40.1 million, a 3.0% annualized increase, from December 31, 2011.

Excluding covered loans, total loans grew $49.2 million, or 3.9% annualized, from December 31, 2011 to March 31, 2012. We experienced over 10% annualized growth in commercial and industrial loans during this period. Continued efforts to reduce lending exposure to less favorable real estate categories contributed to a 14% annualized decline in the construction portfolios.

Commercial, Industrial, and Agricultural Loans

Commercial, industrial, and agricultural loans represent 33.8% of loans, excluding covered loans, and totaled $1.7 billion at March 31, 2012, an increase of $32.4 million, or 1.9%, from December 31, 2011. Our commercial and industrial loans are a diverse group of loans to middle market businesses generally located in the Chicago area with purposes that range from supporting seasonal working capital needs to term financing of equipment. The underwriting for these loans is primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower.

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Most commercial and industrial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may incorporate a personal guarantee.

Commercial Real Estate Loans

Commercial real estate loans represent 53.3% of loans, excluding covered loans, and totaled $2.7 billion at March 31, 2012, an increase of $13.0 million from December 31, 2011. A variety of properties serve as collateral for our commercial real estate loans, which subjects this portfolio to varying degrees of credit risk. Nearly half of our commercial real estate loans consist of loans for industrial buildings, office buildings, and retail shopping centers. Other types of commercial real estate loans include construction loans for single-family and multi-family dwellings, residential projects, and commercial projects and loans for various types of other commercial properties, such as land for future commercial development, multi-unit residential mortgages, warehouses and storage facilities, and service stations.

Included as part of our commercial real estate portfolio are loans secured by owner-occupied real estate, which tend to exhibit lower credit risk than non-owner occupied properties. These loans are viewed primarily as cash flow loans (similar to commercial and industrial loans) and secondarily as loans secured by real estate, which is reflected in the underwriting standards. At March 31, 2012, owner occupied commercial real estate loans were $1.0 billion, or almost 50%, of the commercial real estate portfolio, excluding multi-family and construction loans.

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The following table presents commercial real estate loans by owner-occupied or investor status and product type.

Table 8

Commercial Real Estate Loans

(Dollar amounts in thousands)

	March 31, 2012						December 31, 2011
	Owner Occupied		Investor		Total		Owner Occupied		Investor		Total
Office, retail, and industrial:
Office	$	177,067	$	303,221	$	480,288	$	146,818	$	297,550	$	444,368
Retail		123,661		247,597		371,258		89,831		244,203		334,034
Industrial		289,058		226,295		515,353		298,887		221,793		520,680
Total office, retail, and           industrial		589,786		777,113		1,366,899		535,536		763,546		1,299,082
Multi-family		-		301,356		301,356		-		288,336		288,336
Residential construction		-		99,768		99,768		-		105,836		105,836
Commercial construction		-		142,307		142,307		-		144,909		144,909
Other commercial real estate:
Rental properties (1)		32,030		101,240		133,270		31,417		95,668		127,085
Service stations and truck stops		102,719		19,258		121,977		102,870		26,061		128,931
Warehouses and storage		86,053		39,556		125,609		89,293		40,198		129,491
Hotels		-		71,757		71,757		-		73,889		73,889
Restaurants		67,367		18,053		85,420		59,460		19,407		78,867
Medical		19,555		834		20,389		19,808		1,051		20,859
Automobile dealers		30,212		4,158		34,370		31,588		4,189		35,777
Mobile home parks		-		29,967		29,967		-		30,071		30,071
Recreational		36,048		7,906		43,954		26,826		7,882		34,708
Religious		24,417		174		24,591		23,919		178		24,097
Multi-use properties		13,929		60,427		74,356		59,068		96,517		155,585
Other		24,719		38,626		63,345		8,802		39,984		48,786
Total other commercial real           estate		437,049		391,956		829,005		453,051		435,095		888,146
Total commercial real estate	$	1,026,835	$	1,712,500	$	2,739,335	$	988,587	$	1,737,722	$	2,726,309
Commercial real estate loans,    excluding multi-family and    construction loans	$	1,026,835	$	1,169,069	$	2,195,904	$	988,587	$	1,198,641	$	2,187,228
Percent of total (2)		46.8%		53.2%				45.2%		54.8%

(1)	The owner occupied rental properties primarily represent home-based businesses.
(2)	The percent reported does not include multi-family or construction loans since the owner-occupied classification does not apply to these categories.

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Non-performing Assets

The following table presents our loan portfolio by performing and non-performing status.

Table 9

Loan Portfolio by Performing/Non-Performing Status

(Dollar amounts in thousands)

					Past Due
	Total Loans		Performing		30-89 Days Past Due		90 Days Past Due		Non-accrual		TDRs (still accruing interest)
As of March 31, 2012
Commercial and industrial	$	1,496,966	$	1,431,711	$	6,054	$	3,525	$	55,158	$	518
Agricultural		237,686		236,252		159		393		882		-
Commercial real estate:
Office		480,288		468,525		1,110		250		10,403		-
Retail		371,258		364,924		612		261		5,241		220
Industrial		515,353		494,562		1,214		390		19,187		-
Multi-family		301,356		290,379		1,362		-		9,615		-
Residential construction		99,768		77,016		1,648		-		21,104		-
Commercial construction		142,307		121,510		500		-		20,297		-
Other commercial real estate		829,005		780,034		4,871		963		43,137		-
Total commercial real estate		2,739,335		2,596,950		11,317		1,864		128,984		220
Total corporate loans		4,473,987		4,264,913		17,530		5,782		185,024		738
Home equity		406,367		392,930		2,631		1,596		8,851		359
1-4 family mortgages		217,729		210,091		747		264		5,648		979
Installment loans		39,245		38,858		333		32		22		-
Total consumer loans		663,341		641,879		3,711		1,892		14,521		1,338
Total loans, excluding covered         loans		5,137,328		4,906,792		21,241		7,674		199,545		2,076
Covered loans		251,376		189,900		8,387		33,825		19,264		-
Total loans	$	5,388,704	$	5,096,692	$	29,628	$	41,499	$	218,809	$	2,076
As of December 31, 2011
Commercial and industrial	$	1,458,446	$	1,397,569	$	10,283	$	4,991	$	44,152	$	1,451
Agricultural		243,776		242,727		30		-		1,019		-
Commercial real estate:
Office		444,368		436,881		-		-		7,487		-
Retail		334,034		326,922		395		52		4,923		1,742
Industrial		520,680		501,674		385		988		17,633		-
Multi-family		288,336		270,138		604		-		6,487		11,107
Residential construction		105,836		87,482		278		-		18,076		-
Commercial construction		144,909		121,562		-		-		23,347		-
Other commercial real estate		888,146		829,492		5,273		1,707		51,447		227
Total commercial real estate		2,726,309		2,574,151		6,935		2,747		129,400		13,076
Total corporate loans		4,428,531		4,214,447		17,248		7,738		174,571		14,527
Home equity		416,194		400,570		5,986		1,138		7,407		1,093
1-4 family mortgages		201,099		190,052		3,636		-		5,322		2,089
Installment loans		42,289		41,133		625		351		25		155
Total consumer loans		659,582		631,755		10,247		1,489		12,754		3,337
Total loans, excluding covered         loans		5,088,113		4,846,202		27,495		9,227		187,325		17,864
Covered loans		260,502		193,044		4,232		43,347		19,879		-
Total loans	$	5,348,615	$	5,039,246	$	31,727	$	52,574	$	207,204	$	17,864

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The following table provides a comparison of our non-performing assets and past due loans to prior periods.

Table 10

Non-Performing Assets and Past Due Loans

(Dollar amounts in thousands)

	2012		2011
	March 31		December 31		September 30		June 30		March 31
Non-performing assets, excluding covered loans and covered OREO
Non-accrual loans	$	199,545	$	187,325	$	171,189	$	177,495	$	186,563
90 days or more past due loans		7,674		9,227		6,008		6,502		5,231
Total non-performing loans		207,219		196,552		177,197		183,997		191,794
TDRs (still accruing interest)		2,076		17,864		7,033		14,529		14,120
Other real estate owned		35,276		33,975		23,863		24,407		33,863
Total non-performing assets	$	244,571	$	248,391	$	208,093	$	222,933	$	239,777
30-89 days past due loans	$	21,241	$	27,495	$	34,061	$	30,424	$	28,927
Non-accrual loans to total loans		3.88%		3.68%		3.35%		3.47%		3.66%
Non-performing loans to total loans		4.03%		3.86%		3.47%		3.60%		3.76%
Non-performing assets to loans plus OREO		4.73%		4.85%		4.06%		4.34%		4.67%
Covered loans and covered OREO (1)
Non-accrual loans	$	19,264	$	19,879	$	15,573	$	3,588	$	-
90 days or more past due loans		33,825		43,347		56,834		68,324		88,605
Total non-performing loans		53,089		63,226		72,407		71,912		88,605
TDRs (still accruing interest)		-		-		-		-		-
Other real estate owned		16,990		23,455		21,594		14,583		21,543
Total non-performing assets	$	70,079	$	86,681	$	94,001	$	86,495	$	110,148
30-89 days past due loans	$	8,387	$	4,232	$	11,070	$	26,180	$	10,399
Non-performing assets, including covered loans and covered OREO
Non-accrual loans	$	218,809	$	207,204	$	186,762	$	181,083	$	186,563
90 days or more past due loans		41,499		52,574		62,842		74,826		93,836
Total non-performing loans		260,308		259,778		249,604		255,909		280,399
TDRs (still accruing interest)		2,076		17,864		7,033		14,529		14,120
Other real estate owned		52,266		57,430		45,457		38,990		55,406
Total non-performing assets	$	314,650	$	335,072	$	302,094	$	309,428	$	349,925
30-89 days past due loans	$	29,628	$	31,727	$	45,131	$	56,604	$	39,326
Non-accrual loans to total loans		4.06%		3.87%		3.46%		3.34%		3.43%
Non-performing loans to total loans		4.83%		4.86%		4.63%		4.71%		5.15%
Non-performing assets to loans plus OREO		5.78%		6.20%		5.55%		5.66%		6.36%

(1) For a discussion of covered loans and covered OREO, refer to Note 5 of “Notes to Condensed Consolidated Financial Statements” in Item 1 of this Form 10-Q.

Non-performing covered loans and covered OREO were recorded at their estimated fair values at the time of acquisition. These assets are covered by FDIC Agreements that substantially mitigate the risk of loss. Past due covered loans in the table above are past due based on contractual terms but continue to perform in accordance with our expectations of cash flows. Covered loans are generally considered accruing loans. However, the timing and amount of future cash flows for some loans may not be reasonably estimable. Those loans were classified as non-accrual loans, and interest income will not be recognized until the timing and amount of the future cash flows can be reasonably estimated.

Non-performing assets, excluding covered loans and covered OREO, were $244.6 million at March 31, 2012, decreasing $3.8 million, or 1.5%, from December 31, 2011. The reduction was substantially due to remediation activities, charge-offs, the

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return of $16.0 million in TDRs to performing status, and $8.5 million in OREO dispositions, largely offset by the downgrade of performing loans. For further discussion of OREO dispositions, refer to the “OREO” section of this Item 2.

Loans 30 to 89 days past due, excluding covered loans, of $21.2 million at March 31, 2012 declined $6.3 million, or 22.7%, from December 31, 2011. This represents the lowest level of 30 to 89 days past due loans since 2003.

Management continues to pursue the remediation of non-performing assets in accordance with the previously-established disposition strategies. As management works to dispose of non-performing assets, our efforts could be impacted by a number of factors, including but not limited to, the pace and timing of the overall recovery of the economy, illiquidity in the real estate market, and higher levels of foreclosed real estate coming into the market.

Non-accrual Loans

Non-accrual loans, excluding covered loans, grew from $187.3 million at December 31, 2011 to $199.5 million at March 31, 2012 as the amount of loans downgraded from performing to non-accrual status exceeded sales, payments, charge-offs, and transfers to OREO during the first quarter of 2012.

Included in loans downgraded to non-accrual for first quarter 2012 were nine loans totaling approximately $25 million, the majority of which were included in potential problem loans as of December 31, 2011. Refer to the “Potential Problem Loans” section of this Item 2 for additional discussion.

A discussion of our accounting policies for non-accrual loans is contained in Note 1 of “Notes to Consolidated Financial Statements” in Item 1 of this Form 10-Q.

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Construction Portfolio

Construction loans totaled $242.1 million at March 31, 2012, a reduction of $8.7 million, or 3.5%, from December 31, 2011. This portfolio represents loans to developers and home builders and is particularly susceptible to declining real estate values. Non-performing construction loans totaled $41.4 million at March 31, 2012, which is consistent with the December 31, 2011 level.

The following table provides details on the nature of these construction portfolios.

Table 11

Construction Loans by Underlying Collateral, Excluding Covered Loans

(Dollar amounts in thousands)

	Residential Construction			Commercial Construction			Combined
	Amount		Percent of Total	Amount		Percent of Total	Amount		Percent of Total
As of March 31, 2012
Raw Land	$	25,103	25.2	$	47,003	33.0	$	72,106	29.8
Developed Land		49,356	49.4		52,967	37.2		102,323	42.3
Construction		10,329	10.4		13,709	9.6		24,038	9.9
Substantially completed structures		13,863	13.9		27,984	19.7		41,847	17.3
Mixed and other		1,117	1.1		644	0.5		1,761	0.7
Total	$	99,768	100.0	$	142,307	100.0	$	242,075	100.0
Weighted-average maturity (in years)		0.72			0.86			0.80
Non-performing loans	$	21,104		$	20,297		$	41,401
Non-performing loans as a percent   of total loans		21.2%			14.3%			17.1%
As of December 31, 2011
Raw land	$	24,981	23.6	$	42,768	29.5	$	67,749	27.0
Developed land		55,501	52.4		57,949	40.0		113,450	45.3
Construction		12,133	11.5		14,415	9.9		26,548	10.6
Substantially completed structures		12,195	11.5		27,221	18.8		39,416	15.7
Mixed and other		1,026	1.0		2,556	1.8		3,582	1.4
Total	$	105,836	100.0	$	144,909	100.0	$	250,745	100.0
Weighted-average maturity (in years)		0.63			0.74			0.69
Non-performing loans	$	18,076		$	23,347		$	41,423
Non-performing loans as a percent   of total loans		17.1%			16.1%			16.5%

Six credits primarily in the raw land category represent 67.3% of the $41.4 million in non-performing construction loans as of March 31, 2012, with the largest single loan totaling $14.0 million. Life-to-date charge-offs on these six credits totaled $6.5 million and valuation allowances related to these loans totaled $2.8 million as of March 31, 2012.

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TDRs

Loan modifications are generally performed at the request of the individual borrower and may include reduction in interest rates, changes in payments, and maturity date extensions. A discussion of our accounting policies for TDRs is contained in Note 1 of “Notes to Consolidated Financial Statements” in Item 1 of this Form 10-Q.

Table 12

TDRs by Type

(Dollar amounts in thousands)

	March 31, 2012			December 31, 2011			March 31, 2011
	Number of Loans	Amount		Number of Loans	Amount		Number of Loans	Amount
Commercial and industrial	15	$	1,758	20	$	2,348	28	$	22,569
Agricultural	-		-	-		-	-		-
Commercial real estate:
Office	-		-	-		-	-		-
Retail	1		220	2		1,742	-		-
Industrial	-		-	-		-	1		1,828
Multi-family	8		1,758	9		12,865	8		3,078
Commercial construction	1		14,006	1		14,006	4		4,539
Other commercial real estate	7		11,467	9		11,644	7		6,588
Total commercial real estate loans	17		27,451	21		40,257	20		16,033
Home equity loans	11		768	25		1,564	22		1,641
1-4 family mortgages	17		2,059	26		3,382	23		2,944
Installment loans	-		-	1		155	-		-
Total consumer loans	28		2,827	52		5,101	45		4,585
Total TDRs	60	$	32,036	93	$	47,706	93	$	43,187
TDRs, still accruing interest	17	$	2,076	57	$	17,864	53	$	14,120
TDRs included in non-accrual	43		29,960	36		29,842	40		29,067
Total TDRs	60	$	32,036	93	$	47,706	93	$	43,187
Year-to-date charge-offs on TDRs		$	-		$	8,890		$	63
Valuation allowance related to TDRs		$	916		$	94		$	519

At March 31, 2012, we had TDRs totaling $32.0 million, a decrease of $15.7 million from December 31, 2011. The March 31, 2012 total includes $2.1 million in loans that were restructured at market terms and are accruing interest compared to $17.9 million as of December 31, 2011. During first quarter 2012, we returned $16.0 million in accruing TDRs to performing status since they exhibited a sufficient period of performance under the restructured terms

We have other TDRs totaling $30.0 million as of March 31, 2012, which are classified as non-accrual because they are not performing in accordance with their modified terms or there has not yet been sufficient performance under the modified terms. We occasionally restructure loans at other than market rates or terms to enable the borrower to work through financial difficulties for a set period of time.

Potential Problem Loans

Potential problem loans consist of special mention loans and substandard loans that continue to accrue interest. These loans are performing in accordance with contractual terms, but management has concerns about the ability of the obligor to continue to comply with contractual terms because of the obligor’s potential operating or financial difficulties.

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Table 13

Potential Problem Loans

(Dollar amounts in thousands)

	March 31, 2012		December 31, 2011		March 31, 2011
Special mention loans (1)	$	234,055	$	276,577	$	399,477
Substandard loans (2)		123,316		126,657		182,842
Total potential problem loans	$	357,371	$	403,234	$	582,319

(1)	Loans categorized as special mention exhibit potential weaknesses that require the close attention of management, since these potential weaknesses may result in the deterioration of repayment prospects at some future date.
(2)	Loans categorized as substandard continue to accrue interest, but exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. The loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time.

Potential problem loans totaled $357.4 million as of March 31, 2012, down $45.9 million, or 11.4%, from December 31, 2011 and down $224.9 million, or 38.6% from March 31, 2011. The declines from both prior periods reflect management’s continuing success in remediating potential problem loans. As of March 31, 2012, 11 borrowers, each having balances greater than $5 million, comprised approximately 30% of potential problem loans.

OREO

OREO consists of properties acquired as the result of borrower defaults on loans. A discussion of our accounting policies for non-accrual loans is contained in Note 1 of “Notes to Consolidated Financial Statements” in Item 1 of this Form 10-Q.

Table 14

OREO Properties by Type

(Dollar amounts in thousands)

	March 31, 2012			December 31, 2011			March 31, 2011
	Number of Properties	Amount		Number of Properties	Amount		Number of Properties	Amount
Single family homes	13	$	2,340	5	$	985	13	$	1,336
Land parcels:
Raw land	8		5,047	8		8,316	5		7,467
Farmland	1		207	-		-	3		3,562
Commercial lots	16		5,482	19		5,944	16		7,165
Single-family lots	25		6,803	25		7,677	24		5,659
Total land parcels	50		17,539	52		21,937	48		23,853
Multi-family units	6		609	4		3,083	3		343
Commercial properties	21		14,788	16		7,970	13		8,331
Total OREO, excluding           covered OREO	90		35,276	77		33,975	77		33,863
Covered OREO	44		16,990	46		23,455	46		21,543
Total OREO properties	134	$	52,266	123	$	57,430	123	$	55,406

OREO, excluding covered OREO, was $35.3 million at March 31, 2012 compared to $34.0 million at December 31, 2011 and $33.9 million at March 31, 2011.

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Table 15

Disposals of OREO Properties

(Dollar amounts in thousands)

	Quarter Ended March 31, 2012						Quarter Ended March 31, 2011
	OREO		Covered OREO		Total		OREO		Covered OREO		Total
OREO sales
Proceeds from sales	$	8,830	$	8,326	$	17,156	$	7,114	$	1,125	$	8,239
Less: Basis of properties sold		8,532		8,237		16,769		8,210		1,144		9,354
Net gains (losses) on sales of OREO	$	298	$	89	$	387	$	(1,096)	$	(19)	$	(1,115)
OREO write-downs	$	691	$	(1)	$	690	$	1,101	$	11	$	1,112

OREO sales, excluding covered OREO, consisted of 13 properties for the quarter ended March 31, 2012, with the majority classified as raw land and multi-family units.

OREO sales, excluding covered OREO, consisted of 28 properties for the quarter ended March 31, 2011, with the majority classified as farmland; office, retail, and industrial; and 1-4 family.

Allowance for Credit Losses

The allowance for credit losses is comprised of the allowance for loan losses and the reserve for unfunded commitments and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the allowance for credit losses is inherently subjective since it requires significant estimates and management judgment, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans, consideration of current economic trends, and other factors.

While management utilizes its best judgment and information available, the ultimate adequacy of the allowance for credit losses depends on a variety of factors beyond the Company’s control, including the performance of its loan portfolio, the economy, changes in interest rates and property values, and the interpretation of loan risk classifications by regulatory authorities.Management believes that the allowance for credit losses is an appropriate estimate of credit losses inherent in the loan portfolio as of March 31, 2012.

The accounting policies underlying the establishment and maintenance of the allowance for credit losses are discussed in Note 1 of “Notes to Consolidated Financial Statements” in Item 1 of this Form 10-Q.

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Table 16

Allowance for Credit Losses

and Summary of Loan Loss Experience

(Dollar amounts in thousands)

	Quarters Ended
	2012		2011
	March 31		December 31		September 30		June 30		March 31
Change in allowance for credit   losses:
Balance at beginning of quarter	$	121,962	$	131,291	$	139,831	$	145,003	$	145,072
Loans charged-off:
Commercial and industrial		(8,170)		(9,451)		(10,761)		(6,003)		(4,965)
Agricultural		(20)		(484)		(177)		(900)		(9)
Office, retail, and industrial		(2,667)		(3,798)		(2,549)		(647)		(1,199)
Multi-family		(140)		(5,139)		(2,244)		(6,652)		(549)
Residential construction		(683)		(2,498)		(2,314)		(3,661)		(5,422)
Commercial construction		(170)		(1,673)		(4,197)		(185)		(261)
Other commercial real estate		(8,184)		(3,021)		(4,490)		(2,484)		(5,401)
Consumer		(2,152)		(2,311)		(1,909)		(2,767)		(2,424)
1-4 family mortgages		(226)		(199)		(333)		(341)		(247)
Total loans charged-off		(22,412)		(28,574)		(28,974)		(23,640)		(20,477)
Recoveries on loans previously     charged-off:
Commercial and industrial		646		541		596		418		1,837
Agricultural		70		-		-		101		-
Office, retail, and industrial		2		19		6		38		16
Multi-family		131		336		74		-		-
Residential construction		220		-		64		2,762		4
Commercial construction		-		-		82		52		-
Other commercial real estate		7		19		69		377		43
Consumer		186		112		129		64		107
1-4 family mortgages		16		3		13		1		1
Total recoveries on loans         previously charged-off		1,278		1,030		1,033		3,813		2,008
Net loans charged-off, excluding       covered loans		(21,134)		(27,544)		(27,941)		(19,827)		(18,469)
Net charge-offs of covered loans		(274)		(3,687)		(1,024)		(4,108)		(1,092)
Net loans charged off		(21,408)		(31,231)		(28,965)		(23,935)		(19,561)
Provision charged to operating   expense:
Provision, excluding provision for          covered loans		17,932		18,249		18,378		14,655		18,400
Provision for covered loans		1,387		16,139		5,271		22,356		7,501
Less: expected reimbursement         from the FDIC		(1,109)		(12,486)		(3,224)		(18,248)		(6,409)
Net provision for covered loans		278		3,653		2,047		4,108		1,092
Total provision charged to operating         expense		18,210		21,902		20,425		18,763		19,492
Balance at end of quarter	$	118,764	$	121,962	$	131,291	$	139,831	$	145,003
Allowance for loan losses	$	116,264	$	119,462	$	128,791	$	137,331	$	142,503
Reserve for unfunded commitments		2,500		2,500		2,500		2,500		2,500
Total allowance for credit losses	$	118,764	$	121,962	$	131,291	$	139,831	$	145,003

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	Quarters Ended
	2012		2011
	March 31		December 31		September 30		June 30		March 31
Average loans (1)	$	5,089,286	$	5,085,792	$	5,136,130	$	5,108,234	$	5,075,840
Net loans charged-off to average   loans (1), annualized		1.67%		2.15%		2.16%		1.56%		1.48%
Allowance for credit losses at end of    period as a percent of:
Total loans (1)		2.31%		2.40%		2.57%		2.73%		2.85%
Non-accrual loans (1)		60%		65%		77%		79%		78%
Non-performing loans (1)		57%		62%		74%		76%		76%
Average loans, including covered   loans	$	5,345,074	$	5,365,286	$	5,440,354	$	5,443,761	$	5,438,978
Net loans charged-off to average   loans, annualized		1.61%		2.31%		2.11%		1.76%		1.46%
Allowance for credit losses at end of    period as a percent of:
Total loans		2.20%		2.28%		2.43%		2.58%		2.66%
Non-accrual loans		54%		59%		70%		77%		78%
Non-performing loans		46%		47%		53%		55%		52%

(1) Excludes covered loans.

The allowance for credit losses represented 2.31% of total loans outstanding, excluding covered loans, at March 31, 2012 compared to 2.40% at December 31, 2011. The allowance for credit losses declined $3.2 million from $122.0 million as of December 31, 2011 to $118.8 million as of March 31, 2012. During the first quarter of 2012, we saw declines in 30 to 89 days past due loans and potential problem loans, which drove a decrease in our estimate of credit losses inherent in the loan portfolio and the amount of allowance for credit losses deemed appropriate to cover those losses.

Net charge-offs for first quarter 2012 were $21.4 million, up $1.8 million, or 9.4%, from first quarter 2011. The elevated level of charge-offs in other commercial real estate loans during first quarter 2012 resulted from the write-down of three credits, including one that was transferred to held-for-sale status and sold in April 2012.

Charge-offs related to covered loans for first quarter 2012 and first quarter 2011 reflect the decline in estimated cash flows of certain acquired loans, net of the reimbursement from the FDIC under the FDIC Agreements. Management re-estimates cash flows periodically, and any declines in estimated cash flows on a present value basis, net of loss share, are reflected as charge-offs in that period. Conversely, any increases in estimated cash flows, net of loss share, are recorded through prospective yield adjustments over the remaining lives of the specific loans. To date, cumulative increases in estimated cash flows exceeded cumulative declines.

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FUNDING AND LIQUIDITY MANAGEMENT

The following table provides a comparison of average funding sources for the quarters ended March 31, 2012, December 31, 2011, and March 31, 2011. We believe that average balances, rather than period-end balances, are more meaningful in analyzing funding sources because of the inherent fluctuations that may occur on a monthly basis within most funding categories.

Table 17

Funding Sources – Average Balances

(Dollar amounts in thousands)

	Quarters Ended						First Quarter 2012 % Change From
	March 31, 2012		December 31, 2011		March 31, 2011		Fourth Quarter 2011	First Quarter 2011
Demand deposits	$	1,591,198	$	1,613,221	$	1,342,013	(1.4)	18.6
Savings deposits		995,955		952,962		901,205	4.5	10.5
NOW accounts		1,051,870		1,062,993		1,044,280	(1.0)	0.7
Money market accounts		1,184,316		1,237,600		1,240,439	(4.3)	(4.5)
Transactional deposits		4,823,339		4,866,776		4,527,937	(0.9)	6.5
Time deposits		1,601,518		1,669,348		1,914,486	(4.1)	(16.3)
Brokered deposits		20,408		19,647		23,404	3.9	(12.8)
Total time deposits		1,621,926		1,688,995		1,937,890	(4.0)	(16.3)
Total deposits		6,445,265		6,555,771		6,465,827	(1.7)	(0.3)
Repurchase agreements		91,048		87,893		148,347	3.6	(38.6)
FHLB advances		112,500		164,946		137,500	(31.8)	(18.2)
Total borrowed funds		203,548		252,839		285,847	(19.5)	(28.8)
Senior and subordinated debt		248,232		187,488		137,745	32.4	80.2
Total funding sources	$	6,897,045	$	6,996,098	$	6,889,419	(1.4)	0.1
Average interest rate paid on borrowed funds		1.02%		1.05%		0.96%
Weighted-average maturity of FHLB   advances		29.6 months		19.3 months		24.6 months
Weighted-average interest rate of FHLB   advances		1.71%		2.13%		1.95%

Average funding sources for first quarter 2012 declined $99.1 million, or 1.4%, from fourth quarter 2011 due to a $160.0 million, or 2.3%, seasonal decline in deposits and borrowed funds, partially offset by a $60.7 million, or 32.4%, increase in senior and subordinated debt.

Average funding sources grew $7.6 million from first quarter 2011 to first quarter 2012. Growth of $249.2 million, or 18.6%, in demand deposits offset a decline in interest-bearing liabilities, which resulted in a more favorable product mix.

The growth in average senior and subordinated debt for first quarter 2012 compared to both prior periods reflects the issuance of $115.0 million in senior debt in fourth quarter 2011, which was used to partially fund the redemption of the Series B preferred stock issued to the Treasury.

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Table 18

Borrowed Funds

(Dollar amounts in thousands)

	March 31, 2012			March 31, 2011
	Amount		Rate (%)	Amount		Rate (%)
At period-end:
Securities sold under agreements to repurchase	$	89,655	0.01	$	135,842	0.02
FHLB advances		112,500	1.71		137,500	1.95
Total borrowed funds	$	202,155	0.96	$	273,342	0.99
Average for the year-to-date period:
Securities sold under agreements to repurchase	$	91,048	0.01	$	148,347	0.03
FHLB advances		112,000	1.83		137,500	1.98
Total borrowed funds	$	203,048	1.02	$	285,847	0.96
Maximum amount outstanding at the end of any day   during the period:
Securities sold under agreements to repurchase	$	103,591		$	174,810
FHLB advances		112,500			137,500

Securities sold under repurchase agreements declined from March 31, 2011 to March 31, 2012 as certain municipal customers shifted balances into demand deposits, which are insured by the FDIC.

Average borrowed funds totaled $203.0 million for first quarter 2012, decreasing $82.8 million, or 29.0%, from first quarter 2011. The increase in demand deposits during this period reduced our reliance on these higher-costing funds.

Securities sold under agreements to repurchase, federal funds purchased, and term auction facilities generally mature within 1 to 90 days from the transaction date.

MANAGEMENT OF CAPITAL

A strong capital structure is crucial in maintaining investor confidence, accessing capital markets, and enabling us to take advantage of future profitable growth opportunities. Our capital policy requires that the Company and the Bank maintain capital ratios in excess of the minimum regulatory guidelines. It serves as an internal discipline in analyzing business risks and internal growth opportunities and sets targeted levels of return on equity. Under regulatory capital adequacy guidelines, the Company and the Bank are subject to various capital requirements set and administered by the federal banking agencies. These requirements specify minimum capital ratios, defined as Tier 1 and total capital as a percentage of assets and off-balance sheet items that were weighted according to broad risk categories and a leverage ratio calculated as Tier 1 capital as a percentage of adjusted average assets. We manage our capital ratios for both the Company and the Bank to consistently maintain such measurements in excess of the Federal Reserve’s minimum levels considered to be “well-capitalized,” which is the highest capital category established.

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The following table presents our consolidated measures of capital as of the dates presented and the capital guidelines established by the Federal Reserve to be categorized as “well-capitalized.” All regulatory mandated ratios for characterization as “well-capitalized” were exceeded as of March 31, 2012 and December 31, 2011.

Table 19

Capital Measurements

(Dollar amounts in thousands)

	March 31, 2012	December 31, 2011	Regulatory Minimum For “Well- Capitalized”	Excess Over Required Minimums at March 31, 2012
Regulatory capital ratios:
Total capital to risk-weighted assets	13.47%	13.68%	10.00%	35%	$	217,431
Tier 1 capital to risk-weighted assets	11.41%	11.61%	6.00%	90%	$	338,648
Tier 1 leverage to average assets	9.38%	9.28%	5.00%	88%	$	333,429
Tier 1 common capital to risk-weighted assets (1)	10.38%	10.26%	N/A (2)	N/A (2)		N/A (2)
Tangible common equity ratios:
Tangible common equity to tangible assets	8.95%	8.83%	N/A (2)	N/A (2)		N/A (2)
Tangible common equity, excluding other       accumulated comprehensive loss, to tangible       assets	9.10%	9.00%	N/A (2)	N/A (2)		N/A (2)
Tangible common equity to risk- weighted assets	11.01%	10.88%	N/A (2)	N/A (2)		N/A (2)
Regulatory capital ratios, Bank only (3):
Total capital to risk-weighted assets	14.58%	14.37%	10.00%	46%	$	281,135
Tier 1 capital to risk-weighted assets	13.32%	13.11%	6.00%	122%	$	449,401
Tier 1 leverage to average assets	10.82%	10.37%	5.00%	116%	$	439,937

(1)	Excludes the impact of trust-preferred securities.
(2)	Ratio is not subject to formal Federal Reserve regulatory guidance.
(3)	Ratio presented pertains to our wholly owned banking subsidiary, First Midwest Bank.

All other ratios presented in the table above are capital adequacy metrics used and relied on by investors and industry analysts; however, they are non-GAAP financial measures for U.S. Securities and Exchange Commission purposes. 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. Reconciliations of the components of those ratios to GAAP are presented in the table below.

In first quarter 2012, we redeemed and retired approximately $21 million of 6.95% trust preferred junior subordinated debentures (“TRUPs”) at a discount of 2.25%. This transaction resulted in the recognition of a pre-tax gain of $256,000. Although the TRUPs were included as a component of Tier 1 capital, we elected to retire them given the low interest rate environment.

The Board of Directors reviews the Company’s capital plan each quarter, considering the current and expected operating environment as well as an evaluation of various capital alternatives.

65

Table 20

Reconciliation of Capital Components to Regulatory Requirements and GAAP

(Dollar amounts in thousands)

	March 31, 2012		December 31, 2011
Reconciliation of Capital Components to Regulatory Requirements
Total regulatory capital, as defined in federal regulations	$	843,798	$	853,961
Tier 1 capital, as defined in federal regulations	$	714,468	$	724,863
Trust preferred securities included in Tier 1 capital		(64,265)		(84,730)
Tier 1 common capital	$	650,203	$	640,133
Risk-weighted assets, as defined in federal regulations	$	6,263,673	$	6,241,191
Average assets, as defined in federal regulations		7,620,777		7,813,637
Total capital to risk-weighted assets		13.47%		13.68%
Tier 1 capital to risk-weighted assets		11.41%		11.61%
Tier 1 common capital to risk-weighted assets		10.38%		10.26%
Tier 1 leverage to average assets		9.38%		9.28%
Reconciliation of Capital Components to GAAP
Total stockholder’s equity	$	972,701	$	962,587
Goodwill and other intangible assets		(282,815)		(283,650)
Tangible common equity		689,886		678,937
Accumulated other comprehensive loss		10,919		13,276
Tangible common equity, excluding accumulated other comprehensive loss	$	700,805	$	692,213
Total assets	$	7,988,002	$	7,973,594
Goodwill and other intangible assets		(282,815)		(283,650)
Tangible assets	$	7,705,187	$	7,689,944
Tangible common equity to tangible assets		8.95%		8.83%
Tangible common equity, excluding accumulated other comprehensive loss, to   tangible assets		9.10%		9.00%
Tangible common equity to risk-weighted assets		11.01%		10.88%

CRITICAL ACCOUNTING POLICIES

Our consolidated financial statements are prepared in accordance with GAAP and are consistent with predominant practices in the financial services industry. Critical accounting policies are those policies that management believes are the most important to our financial position and results of operations. Application of critical accounting policies requires management to make estimates, assumptions, and judgments based on information available as of the date of the financial statements that affect the amounts reported in the financial statements and accompanying notes. Future changes in information may affect these estimates, assumptions, and judgments, which, in turn, may affect amounts reported in the financial statements.

We have numerous accounting policies, of which the most significant are presented in Note 1, “Summary of Significant Accounting Policies,” to the Consolidated Financial Statements of our 2011 10-K. These policies, along with the disclosures presented in “Notes to Condensed Consolidated Financial Statements” in Item 1 of this Form 10-Q, provide information on how significant assets and liabilities are valued in the financial statements and how those values are determined. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions, and estimates underlying those amounts, management determined that our accounting policies with respect to the allowance for credit losses, evaluation of impairment of securities, and income taxes are the accounting areas requiring subjective or complex judgments that are most important to our financial position and results of operations, and, therefore, are considered to be critical accounting policies, as discussed in our 2011 10-K.

66

ITEM 3. QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

Market risk is the risk of loss arising from adverse changes in the fair value of financial instruments due to changes in interest rates, exchange rates, and equity prices. Interest rate risk is our primary market risk and is the result of repricing, basis, and option risk. A description and analysis of our interest rate risk management policies is included in Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” contained in our 2011 10-K.

We seek to achieve consistent growth in net interest income and net income while managing volatility that arises from shifts in interest rates. The Bank’s Asset and Liability Committee (“ALCO”) oversees financial risk management by developing programs to measure and manage interest rate risks within authorized limits set by the Bank’s Board of Directors. ALCO also approves the Bank’s asset and liability management policies, oversees the formulation and implementation of strategies to improve balance sheet positioning and earnings, and reviews the Bank’s interest rate sensitivity position. Management uses net interest income and economic value of equity simulation modeling tools to analyze and capture short-term and long-term interest rate exposures.

Net Interest Income Sensitivity

The analysis of net interest income sensitivities assesses the magnitude of changes in net interest income resulting from changes in interest rates over a 12-month horizon using multiple rate scenarios. These scenarios include, but are not limited to, a most likely forecast, a flat to inverted or unchanged rate environment, a gradual increase and decrease of 200 basis points that occur in equal steps over a six-month time horizon, and immediate increases and decreases of 200 and 300 basis points.

This simulation analysis is based on actual cash flows and repricing characteristics for balance sheet and off-balance sheet instruments and incorporates market-based assumptions regarding the effect of changing interest rates on the prepayment rates of certain assets and liabilities. This simulation analysis includes management’s projections for activity levels in each of the product lines we offer. The analysis also incorporates assumptions based on the historical behavior of deposit rates and balances in relation to interest rates. Because these assumptions are inherently uncertain, the simulation analysis cannot definitively measure net interest income or predict the impact of the fluctuation in interest rates on net interest income. Actual results may differ from simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies.

We monitor and manage interest rate risk within approved policy limits. Our current interest rate risk policy limits are determined by measuring the change in net interest income over a 12-month horizon.

Analysis of Net Interest Income Sensitivity

(Dollar amounts in thousands)

	Gradual Change in Rates (1)				Immediate Change in Rates
	-200		+200		-200		+200		-300 (2)		+300
March 31, 2012:
Dollar change	$	(10,019)	$	6,101	$	(13,212)	$	10,121	$	N/M	$	22,132
Percent change		-3.7%		+2.3%		-4.9%		3.7%		N/M		+8.2%
December 31, 2011:
Dollar change	$	(8,457)	$	13,392	$	(13,983)	$	19,209	$	N/M	$	36,576
Percent change		-3.1%		+4.9%		-5.2%		+7.1%		N/M		+13.5%

(1)	Reflects an assumed uniform change in interest rates across all terms that occurs in equal steps over a six-month horizon.
(2)	N/M – Due to the low level of interest rates as of March 31, 2012 and December 31, 2011, management deemed an assumed 300 basis point drop in interest rates not meaningful.

Overall, in rising interest rate scenarios, interest rate risk volatility is less positive at March 31, 2012 than at December 31, 2011 and in declining interest rate scenarios, interest rate risk volatility is more negative at March 31, 2012 compared to December 31, 2011. In first quarter 2012, deposits acquired in a fourth quarter 2011 transaction that had previously been held in short-term investments were redeployed into securities, specifically CMOs and other MBSs. This reinvestment drove the change in interest rate sensitivity from December 31, 2011 to March 31, 2012. While the negative exposure to net interest income is higher compared to December 31, 2011, the risk of significant rate declines is small, since interest rates remain at low levels.

67

Economic Value of Equity

In addition to the simulation analysis, management uses an economic value of equity sensitivity technique to understand the risk in both shorter-term and longer-term positions and to study the impact of longer-term cash flows on earnings and capital. In determining the economic value of equity, we discount present values of expected cash flows on all assets, liabilities, and off-balance sheet contracts under different interest rate scenarios. The discounted present value of all cash flows represents our economic value of equity. Economic value of equity does not represent the true fair value of asset, liability, or derivative positions because certain factors are not considered, such as credit risk, liquidity risk, and the impact of future changes to the balance sheet.

Analysis of Economic Value of Equity

(Dollar amounts in thousands)

	Immediate Change in Rates
	-200		+200		-300 (1)		+300
March 31, 2012:
Dollar change	$	(128,864)	$	112,320	$	N/M	$	164,447
Percent change		-10.3%		+9.0%		N/M		+13.2%
December 31, 2011:
Dollar change	$	(168,853)	$	148,369	$	N/M	$	221,525
Percent change		-13.3%		+11.7%		N/M		+17.4%

(1) N/M- Due to the low level of interest rates as of March 31, 2012 and December 31, 2011, management deemed an assumed 300 basis point drop in interest rates not meaningful.

As of March 31, 2012, the estimated sensitivity of the economic value of equity to changes in rising interest rates is less positive compared to December 31, 2011, and the estimated sensitivity to falling rates is less negative compared to December 31, 2011. The change from December 31, 2011 is due to the investment of interest-bearing cash into securities described in the previous section. In addition, during first quarter 2012, approximately $21 million of TRUPS were redeemed and retired. The decrease in these long-term liabilities reduced exposure to rising rates.

ITEM 4. CONTROLS AND PROCEDURES

At the end of the period covered by this report, (the “Evaluation Date”), the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s President and Chief Executive Officer and its Executive Vice President and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on that evaluation, the President and Chief Executive Officer and Executive Vice President and Chief Financial Officer concluded that as of the Evaluation Date, the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms. There were no changes in the Company’s internal control over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The nature of the business of the Bank and the Company’s other subsidiaries ordinarily results in a certain amount of claims, litigation, investigations, and legal and administrative cases and proceedings, all of which are considered incidental to the normal conduct of business. In managing such matters, management considers the merits and feasibility of all options and strategies available to the Company, including litigation prosecution, arbitration, insurance coverage, and settlement. Generally, if the Company determines it has meritorious defenses to a matter, it vigorously defends itself.

In August 2011, the Bank was named in a purported class action lawsuit filed in the Circuit Court of Cook County, Illinois on behalf of certain of the Bank’s customers who incurred overdraft fees. The complaint was amended in February 2012, and the Bank filed a motion to dismiss the lawsuit in May 2012, which is pending. The lawsuit is based on the Bank’s practices

68

pursuant to debit card transactions, and alleges, among other things, that these practices resulted in customers being unfairly assessed overdraft fees. The lawsuit seeks an unspecified amount of damages and other relief, including restitution.

The Company believes that the complaint contains significant inaccuracies and factual misstatements and that the Bank has meritorious defenses. As a result, the Bank intends to vigorously defend itself against the allegations in the lawsuit.

Currently, there are certain other legal proceedings pending against the Company and its subsidiaries in the ordinary course of business. While the outcome of any legal proceeding is inherently uncertain, based on information currently available, the Company’s management believes that any liabilities arising from pending legal matters are not expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

ITEM 1A. RISK FACTORS

The Company provided a discussion of certain risks and uncertainties faced by the Company in its Annual Report on Form 10-K for the year ended December 31, 2011. However, these factors may not be the only risks or uncertainties the Company faces.

Based on currently available information, the Company has not identified any additional material changes in the Company’s risk factors as previously disclosed, except as discussed above.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table summarizes the Company’s monthly common stock purchases during first quarter 2012. The Board approved a stock repurchase program on November 27, 2007. Up to 2.5 million shares of the Company’s common stock may be repurchased, and the total remaining authorization under the program was 2,494,747 shares as of December 31, 2011. The repurchase program has no set expiration or termination date.

Issuer Purchases of Equity Securities

(Number of shares in thousands)

	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of a Publicly Announced Plan or Program	Maximum Number of Shares that May Yet Be Purchased Under the Plan or Program
January 1 – January 31, 2012	892	$	10.55	-	2,494,747
February 1 – February 29, 2012	60,916		11.78	-	2,494,747
March 1 – March 31, 2012	-		-	-	2,494,747
Total	61,808	$	11.77	-

(1) Consists of shares acquired pursuant to the Company’s share-based compensation plans and not the Company’s repurchase program approved by its Board on November 27, 2007. Under the terms of these plans, the Company accepts shares of common stock from option holders if they elect to surrender previously owned shares upon exercise to cover the exercise price of the stock options or, in the case of restricted shares of common stock, the withholding of shares to satisfy tax withholding obligations associated with the vesting of restricted shares.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

69

None.

ITEM 6. EXHIBITS

Exhibit Number	Description of Documents	Sequential Page #
3.1	Restated Certificate of Incorporation of First Midwest Bancorp, Inc. is herein incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2009.
3.2	Restated By-laws of First Midwest Bancorp, Inc. is herein incorporated by reference to Exhibit 3.2 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2012.
11	Statement re: Computation of Per Share Earnings - The computation of basic and diluted earnings per common share is included in Note 7 of the Company’s Notes to Condensed Consolidated Financial Statements included in “ITEM 1. FINANCIAL STATEMENTS” of this document.
15	Acknowledgment of Independent Registered Public Accounting Firm.
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 (1)	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2 (1)	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99	Report of Independent Registered Public Accounting Firm.
101 (1)	Interactive Data File.

(1)   Furnished, not filed.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

                  First Midwest Bancorp, Inc.

     /s/ PAUL F. CLEMENS                         

Paul F. Clemens

  Executive Vice President, Chief Financial Officer,

and Principal Accounting Officer*

Date:  May 10, 2012

* Duly authorized to sign on behalf of the registrant.

70

EX-14

Exhibit 15

ACKNOWLEDGEMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors

First Midwest Bancorp, Inc.

We are aware of the incorporation by reference in the following Registration Statements of First Midwest Bancorp, Inc. of our report dated May 10, 2012 relating to the unaudited condensed consolidated interim financial statements of First Midwest Bancorp, Inc. that are included in its Form 10-Q for the quarter ended March 31, 2012.

·   Registration Statement (Form S-3 No. 33-20439) pertaining to the First Midwest Bancorp, Inc. Dividend Reinvestment and Stock Purchase Plan,

·   Registration Statement (Form S-3ASR No. 333-179815) pertaining to a First Midwest Bancorp, Inc. debt and equity securities offering,

·   Registration Statement (Form S-4 No. 333-114406) pertaining to First Midwest Capital Trust I,

·   Registration Statement (Form S-8 No. 33-25136) pertaining to the First Midwest Bancorp, Inc. Savings and Profit Sharing Plan,

·   Registration Statement (Form S-8 No. 33-42980) pertaining to the First Midwest Bancorp, Inc. 1989 Omnibus Stock and Incentive Plan,

·   Registration Statement (Form S-8 No. 333-159389) pertaining to the First Midwest Bancorp, Inc. 1989 Omnibus Stock and Incentive Plan,

·   Registration Statement (Form S-8 No. 333-42273) pertaining to the First Midwest Bancorp, Inc. 1989 Omnibus Stock and Incentive Plan,

·   Registration Statement (Form S-8 No. 333-61090) pertaining to the First Midwest Bancorp, Inc. 1989 Omnibus Stock and Incentive Plan,

·   Registration Statement (Form S-8 No. 333-50140) pertaining to the First Midwest Bancorp, Inc. Non-employee Directors’ 1997 Stock Option Plan,

·   Registration Statement (Form S-8 No. 333-63095) pertaining to the First Midwest Bancorp, Inc. Non-employee Directors’ Stock Option Plan,

·   Registration Statement (Form S-8 No. 333-63097) pertaining to the First Midwest Bancorp, Inc. Nonqualified Retirement Plan, and

·   Registration Statement (Form S-8 No. 333-151072) pertaining to the First Midwest Bancorp, Inc. Amended and Restated Non-employee Directors Stock Plan,

·   Registration Statement (Form S-3 No. 333-157615) pertaining to a First Midwest Bancorp, Inc. debt and equity securities offering, and

·   Registration Statement (Form S-8 No. 333-168973) pertaining to the First Midwest Bancorp, Inc. Amended and Restated Omnibus Stock and Incentive Plan

/s/ ERNST & YOUNG

Chicago, Illinois

May 10, 2012

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Michael L. Scudder, certify that:
	1.	I have reviewed this report on Form 10-Q of First Midwest Bancorp Inc.;
	2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
	3.	Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
	4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
		a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
		b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
		c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
		d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an quarterly report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
	5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
		a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
		b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date:	May 10, 2012			/S/ MICHAEL L. SCUDDER
				[Signature] President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Paul F. Clemens, certify that:
	1.	I have reviewed this report on Form 10-Q of First Midwest Bancorp Inc.;
	2.	Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
	3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
	4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
		a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
		b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
		c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
		d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an quarterly report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
	5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
		a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
		b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date:	May 10, 2012			/S/ PAUL F. CLEMENS
				[Signature] Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, the undersigned officer of First Midwest Bancorp, Inc. (the “Company”), hereby certifies that:

(1)   The Company’s Report on Form 10-Q for the quarter ended March 31, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities and Exchange Act of 1934, as amended; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/MICHAEL L. SCUDDER
Name:	Michael L. Scudder
Title:	President and Chief Executive Officer

Dated:  May 10, 2012

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, the undersigned officer of First Midwest Bancorp, Inc. (the “Company”), hereby certifies that:

(1)   The Company’s Report on Form 10-Q for the quarter ended March 31, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities and Exchange Act of 1934, as amended; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/ PAUL F. CLEMENS
Name:	Paul F. Clemens
Title:	Executive Vice President and Chief Financial Officer

May 10, 2012

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-99

Exhibit 99

Report of Independent Registered Public Accounting Firm

The Board of Directors

First Midwest Bancorp, Inc.

We have reviewed the consolidated statements of financial condition of First Midwest Bancorp, Inc. and subsidiaries as of March 31, 2012, and the related condensed consolidated statements of income, consolidated statements of comprehensive income and changes in stockholders’ equity, and condensed consolidated statements of cash flows for the three-month periods ended March 31, 2012 and 2011.  These financial statements are the responsibility of the Company’s management.

We conducted our review in accordance with standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole.  Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with US generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated statement of financial condition of First Midwest Bancorp, Inc. and subsidiaries as of December 31, 2011, and the related consolidated statements of income, comprehensive income (loss), changes in stockholders’ equity, and cash flows for the year then ended (not presented herein) and in our report dated February 28, 2012, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of financial condition as of December 31, 2011, is fairly stated, in all material respects, in relation to the consolidated statement of financial condition from which it has been derived.

/s/ ERNST & YOUNG LLP

Chicago, Illinois

May 10, 2012

XML

Note 3 - Securities (Detail) - Changes In Credit Losses Recognized In Earnings (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Cumulative amount recognized	$ 36,525		$ 35,756
Credit losses included in earnings (1):
Losses recognized on securities that previously had credit losses	737	[1]		[1]
Losses recognized on securities that did not previously have credit losses		[1]		[1]
Cumulative amount recognized	$ 37,262		$ 35,756

[1] Included in net securities (losses) gains in the Condensed Consolidated Statements of Income."

XML

Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Detail) - Loans That Were Restructured (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Commercial Construction [Member]
Number of loans modified		2
Pre-modification recorded investment		$ 131
Interest and escrow capitalized		7
Post-modification recorded investment		138
Home Equity1 [Member]
Number of loans modified		5
Pre-modification recorded investment		284
Interest and escrow capitalized		12
Post-modification recorded investment		296
1-4 Family Mortgages [Member]
Number of loans modified	3	5
Pre-modification recorded investment	430	571
Interest and escrow capitalized	4	30
Post-modification recorded investment	434	601
Installment Loans [Member]
Number of loans modified		1
Pre-modification recorded investment		151
Interest and escrow capitalized		4
Post-modification recorded investment		155
Total Restructured Loans [Member]
Number of loans modified	3	13
Pre-modification recorded investment	430	1,137
Interest and escrow capitalized	4	53
Post-modification recorded investment	$ 4,340	$ 1,190

XML

Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Detail) - Allowance for Credit Losses (Continued) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Balance at beginning of period	$ 121,962	$ 145,072
Balance at end of period	118,764	145,003
Loans charged-off	(22,686)	(21,581)
Recoveries of loans previously charged-off	1,278	2,020
Net loans charged-off	(21,408)	(19,561)
Provision for loan losses	18,210	19,492
Commercial, Industrial, And Agricultural [Member]
Balance at beginning of period	46,017	49,545
Balance at end of period	44,715	50,589
Loans charged-off	(8,190)	(4,974)
Recoveries of loans previously charged-off	716	1,837
Net loans charged-off	(7,474)	(3,137)
Provision for loan losses	6,172	4,181
Office Retail And Industrial [Member]
Balance at beginning of period	16,012	20,758
Balance at end of period	17,556	19,632
Loans charged-off	(2,667)	(1,199)
Recoveries of loans previously charged-off	2	16
Net loans charged-off	(2,665)	(1,183)
Provision for loan losses	4,209	57
Multi-Family [Member]
Balance at beginning of period	5,067	3,996
Balance at end of period	5,082	4,652
Loans charged-off	(140)	(549)
Recoveries of loans previously charged-off	131
Net loans charged-off	(9)	(549)
Provision for loan losses	24	1,205
Residential Construction [Member]
Balance at beginning of period	14,563	27,933
Balance at end of period	14,263	27,388
Loans charged-off	(683)	(5,422)
Recoveries of loans previously charged-off	220	4
Net loans charged-off	(463)	(5,418)
Provision for loan losses	163	4,873
Other Commerical Real Estate [Member]
Balance at beginning of period	24,471	29,869
Balance at end of period	22,449	30,045
Loans charged-off	(8,354)	(5,662)
Recoveries of loans previously charged-off	7	43
Net loans charged-off	(8,347)	(5,619)
Provision for loan losses	6,325	5,795
Consumer [Member]
Balance at beginning of period	14,843	12,971
Balance at end of period	13,706	12,697
Loans charged-off	(2,378)	(2,671)
Recoveries of loans previously charged-off	202	108
Net loans charged-off	(2,176)	(2,563)
Provision for loan losses	1,039	2,289
Covered Loans [Member]
Balance at beginning of period	989
Balance at end of period	993
Loans charged-off	(274)	(1,104)
Recoveries of loans previously charged-off		12
Net loans charged-off	(274)	(1,092)
Provision for loan losses	278	1,092
Total Allowance [Member]
Balance at beginning of period	121,962	145,072
Balance at end of period	118,764	145,003
Loans charged-off	(22,686)	(21,581)
Recoveries of loans previously charged-off	1,278	2,020
Net loans charged-off	(21,408)	(19,561)
Provision for loan losses	$ 18,210	$ 19,492

XML

Note 12 - Fair Value (Detail) - Financial Instruments Fair Value (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011	Dec. 31, 2010
Assets:
Cash and due from banks	$ 105,722	$ 123,354
Interest-bearing deposits in other banks	380,651	518,176
Securities held-to-maturity:
Municipal securities	56,319	60,458
Municipal securities	59,364	61,477
Loans, net of allowance for loan losses:
Loans receivable - carrying amount	5,272,440	5,229,153
Allowance for loan losses	116,264	119,462	142,503
Allowance for loan losses	118,764	121,962	145,003	145,072
Accrued interest receivable	29,423	29,826
Investment in bank-owned life insurance	206,304	206,235
Deposits
Deposits - carrying amount	6,486,363	6,479,175
Borrowed funds	202,155	205,371
Senior and subordinated debt	231,106	252,153
Standby letters of credit	112,072		116,566
Demand Deposits [Member] | Carrying Amount [Member]
Deposits
Deposits - carrying amount	1,637,593	1,593,773
Demand Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Deposits
Deposits - fair value	1,637,593	1,593,773
Savings Deposits [Member] | Carrying Amount [Member]
Deposits
Deposits - carrying amount	1,030,554	970,016
Savings Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Deposits
Deposits - fair value	1,030,554	970,016
NOW Accounts [Member] | Carrying Amount [Member]
Deposits
Deposits - carrying amount	1,055,558	1,057,887
NOW Accounts [Member] | Fair Value, Inputs, Level 2 [Member]
Deposits
Deposits - fair value	1,055,558	1,057,887
Money Market Deposits [Member] | Carrying Amount [Member]
Deposits
Deposits - carrying amount	1,173,388	1,198,382
Money Market Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Deposits
Deposits - fair value	1,173,388	1,198,382
Time Deposits [Member] | Carrying Amount [Member]
Deposits
Deposits - carrying amount	1,589,270	1,659,117
Time Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Deposits
Deposits - fair value	1,591,759	1,659,251
Total Deposits [Member] | Carrying Amount [Member]
Deposits
Deposits - carrying amount	6,486,363	6,479,175
Total Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Deposits
Deposits - fair value	6,488,852	6,479,309
Commercial And Industrial [Member] | Carrying Amount [Member]
Loans, net of allowance for loan losses:
Loans receivable - carrying amount	1,496,966	1,458,446
Commercial And Industrial [Member] | Fair Value, Inputs, Level 3 [Member]
Loans, net of allowance for loan losses:
Loans receivable - fair value	1,498,870	1,460,972
Agricultural [Member] | Carrying Amount [Member]
Loans, net of allowance for loan losses:
Loans receivable - carrying amount	237,686	243,776
Agricultural [Member] | Fair Value, Inputs, Level 3 [Member]
Loans, net of allowance for loan losses:
Loans receivable - fair value	236,753	243,035
Office Retail And Industrial [Member] | Carrying Amount [Member]
Loans, net of allowance for loan losses:
Loans receivable - carrying amount	1,366,899	1,299,082
Office Retail And Industrial [Member] | Fair Value, Inputs, Level 3 [Member]
Loans, net of allowance for loan losses:
Loans receivable - fair value	1,375,680	1,303,288
Multi-Family [Member] | Carrying Amount [Member]
Loans, net of allowance for loan losses:
Loans receivable - carrying amount	301,356	288,336
Multi-Family [Member] | Fair Value, Inputs, Level 3 [Member]
Loans, net of allowance for loan losses:
Loans receivable - fair value	304,217	290,645
Residential Construction [Member] | Carrying Amount [Member]
Loans, net of allowance for loan losses:
Loans receivable - carrying amount	99,768	105,836
Residential Construction [Member] | Fair Value, Inputs, Level 3 [Member]
Loans, net of allowance for loan losses:
Loans receivable - fair value	100,165	106,145
Commercial Construction [Member] | Carrying Amount [Member]
Loans, net of allowance for loan losses:
Loans receivable - carrying amount	142,307	144,909
Commercial Construction [Member] | Fair Value, Inputs, Level 3 [Member]
Loans, net of allowance for loan losses:
Loans receivable - fair value	142,503	145,305
Other Commercial Real Estate [Member] | Carrying Amount [Member]
Loans, net of allowance for loan losses:
Loans receivable - carrying amount	829,005	888,146
Other Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]
Loans, net of allowance for loan losses:
Loans receivable - fair value	833,919	890,275
Home Equity1 [Member] | Carrying Amount [Member]
Loans, net of allowance for loan losses:
Loans receivable - carrying amount	406,367	416,194
Home Equity1 [Member] | Fair Value, Inputs, Level 3 [Member]
Loans, net of allowance for loan losses:
Loans receivable - fair value	387,653	394,404
1-4 Family Mortgages [Member] | Carrying Amount [Member]
Loans, net of allowance for loan losses:
Loans receivable - carrying amount	217,729	201,099
1-4 Family Mortgages [Member] | Fair Value, Inputs, Level 3 [Member]
Loans, net of allowance for loan losses:
Loans receivable - fair value	222,162	206,115
Installment Loans [Member] | Carrying Amount [Member]
Loans, net of allowance for loan losses:
Loans receivable - carrying amount	39,245	42,289
Installment Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Loans, net of allowance for loan losses:
Loans receivable - fair value	40,218	43,030
Covered Loans [Member] | Carrying Amount [Member]
Loans, net of allowance for loan losses:
Loans receivable - carrying amount	251,376	260,502
Covered Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Loans, net of allowance for loan losses:
Loans receivable - fair value	251,376	260,502
Carrying Amount [Member]
Assets:
Cash and due from banks	105,722	123,354
Interest-bearing deposits in other banks	380,651	518,176
Securities held-to-maturity:
Municipal securities	56,319	60,458
Loans, net of allowance for loan losses:
Allowance for loan losses	(116,264)	(119,462)
Loans, net of allowance for loan losses	5,272,440	5,229,153
FDIC indemnification asset	58,488	65,609
Accrued interest receivable	29,423	29,826
Investment in bank-owned life insurance	206,304	206,235
Deposits
Borrowed funds	202,155	205,371
Senior and subordinated debt	231,106	252,153
Accrued interest payable	7,155	4,019
Standby letters of credit	598	668
Fair Value, Inputs, Level 1 [Member]
Assets:
Cash and due from banks	105,722	123,354
Deposits
Senior and subordinated debt	226,442	237,393
Fair Value, Inputs, Level 2 [Member]
Assets:
Interest-bearing deposits in other banks	380,651	518,176
Securities held-to-maturity:
Municipal securities	59,364	61,477
Loans, net of allowance for loan losses:
Accrued interest receivable	29,423	29,826
Deposits
Borrowed funds	205,777	208,728
Accrued interest payable	7,155	4,019
Standby letters of credit	598	668
Fair Value, Inputs, Level 3 [Member]
Loans, net of allowance for loan losses:
Allowance for loan losses	(116,264)	(119,462)
Loans, net of allowance for loan losses	5,300,859	5,251,773
FDIC indemnification asset	31,486	37,173
Investment in bank-owned life insurance	$ 206,304	$ 206,235

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Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Detail) - TDRs That Defaulted Within Twelve Months of the Restructured Date (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Mar. 31, 2011
Home Equity1 [Member]
Number of loans		1
Recorded investment (in Dollars)		$ 83
1-4 Family Mortgages [Member]
Number of loans	1	1
Recorded investment (in Dollars)	$ 62	$ 83

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Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Detail) - Aging Analysis of Past Due Loans and Non-Performing Loans by Class (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Financing receivable - total loans	$ 5,388,704	$ 5,348,615
Commercial And Industrial [Member]
Financing receivable - current	1,439,402	1,415,165
Financing receivable - 30-89 days past due	22,899	13,731
Financing receivable - 90 days or more past due	34,665	29,550
Financing receivable - total past due	57,564	43,281
Financing receivable - total loans	1,496,966	1,458,446
Financing receivable - non-accrual loans	55,158	44,152
Financing receivable - 90 days past due loans, still accruing interest	3,525	4,991
Agricultural [Member]
Financing receivable - current	236,818	242,727
Financing receivable - 30-89 days past due	159	30
Financing receivable - 90 days or more past due	709	1,019
Financing receivable - total past due	868	1,049
Financing receivable - total loans	237,686	243,776
Financing receivable - non-accrual loans	882	1,019
Financing receivable - 90 days past due loans, still accruing interest	393
Office Retail And Industrial [Member]
Financing receivable - current	1,329,162	1,276,920
Financing receivable - 30-89 days past due	20,045	2,931
Financing receivable - 90 days or more past due	17,692	19,231
Financing receivable - total past due	37,737	22,162
Financing receivable - total loans	1,366,899	1,299,082
Financing receivable - non-accrual loans	34,831	30,043
Financing receivable - 90 days past due loans, still accruing interest	901	1,040
Multi-Family [Member]
Financing receivable - current	291,061	281,943
Financing receivable - 30-89 days past due	1,362	1,121
Financing receivable - 90 days or more past due	8,933	5,272
Financing receivable - total past due	10,295	6,393
Financing receivable - total loans	301,356	288,336
Financing receivable - non-accrual loans	9,615	6,487
Residential Construction [Member]
Financing receivable - current	77,531	87,606
Financing receivable - 30-89 days past due	1,768	2,164
Financing receivable - 90 days or more past due	20,469	16,066
Financing receivable - total past due	22,237	18,230
Financing receivable - total loans	99,768	105,836
Financing receivable - non-accrual loans	21,104	18,076
Commercial Construction [Member]
Financing receivable - current	124,807	129,310
Financing receivable - 30-89 days past due	500	320
Financing receivable - 90 days or more past due	17,000	15,279
Financing receivable - total past due	17,500	15,599
Financing receivable - total loans	142,307	144,909
Financing receivable - non-accrual loans	20,297	23,347
Other Commercial Real Estate [Member]
Financing receivable - current	793,385	849,066
Financing receivable - 30-89 days past due	12,842	6,372
Financing receivable - 90 days or more past due	22,778	32,708
Financing receivable - total past due	35,620	39,080
Financing receivable - total loans	829,005	888,146
Financing receivable - non-accrual loans	43,137	51,447
Financing receivable - 90 days past due loans, still accruing interest	963	1,707
Total Commercial Real Estate [Member]
Financing receivable - current	2,615,946	2,624,845
Financing receivable - 30-89 days past due	36,517	12,908
Financing receivable - 90 days or more past due	86,872	88,556
Financing receivable - total past due	123,389	101,464
Financing receivable - total loans	2,739,335	2,726,309
Financing receivable - non-accrual loans	128,984	129,400
Financing receivable - 90 days past due loans, still accruing interest	1,864	2,747
Total Corporate Loans [Member]
Financing receivable - current	4,292,166	4,282,737
Financing receivable - 30-89 days past due	59,575	26,669
Financing receivable - 90 days or more past due	122,246	119,125
Financing receivable - total past due	181,821	145,794
Financing receivable - total loans	4,473,987	4,428,531
Financing receivable - non-accrual loans	185,024	174,571
Financing receivable - 90 days past due loans, still accruing interest	5,782	7,738
Home Equity1 [Member]
Financing receivable - current	394,424	402,842
Financing receivable - 30-89 days past due	2,723	6,112
Financing receivable - 90 days or more past due	9,220	7,240
Financing receivable - total past due	11,943	13,352
Financing receivable - total loans	406,367	416,194
Financing receivable - non-accrual loans	8,851	7,407
Financing receivable - 90 days past due loans, still accruing interest	1,596	1,138
1-4 Family Mortgages [Member]
Financing receivable - current	211,398	192,646
Financing receivable - 30-89 days past due	875	3,712
Financing receivable - 90 days or more past due	5,456	4,741
Financing receivable - total past due	6,331	8,453
Financing receivable - total loans	217,729	201,099
Financing receivable - non-accrual loans	5,648	5,322
Financing receivable - 90 days past due loans, still accruing interest	264
Installment Loans [Member]
Financing receivable - current	38,858	41,288
Financing receivable - 30-89 days past due	333	625
Financing receivable - 90 days or more past due	54	376
Financing receivable - total past due	387	1,001
Financing receivable - total loans	39,245	42,289
Financing receivable - non-accrual loans	22	25
Financing receivable - 90 days past due loans, still accruing interest	32	351
Consumer [Member]
Financing receivable - current	644,680	636,776
Financing receivable - 30-89 days past due	3,931	10,449
Financing receivable - 90 days or more past due	14,730	12,357
Financing receivable - total past due	18,661	22,806
Financing receivable - total loans	663,341	659,582
Financing receivable - non-accrual loans	14,521	12,754
Financing receivable - 90 days past due loans, still accruing interest	1,892	1,489
Total Loans Excluding Covered Loans [Member]
Financing receivable - current	4,936,846	4,919,513
Financing receivable - 30-89 days past due	63,506	37,118
Financing receivable - 90 days or more past due	136,976	131,482
Financing receivable - total past due	200,482	168,600
Financing receivable - total loans	5,137,328	5,088,113
Financing receivable - non-accrual loans	199,545	187,325
Financing receivable - 90 days past due loans, still accruing interest	7,674	9,227
Covered Loans [Member]
Financing receivable - current	191,785	195,289
Financing receivable - 30-89 days past due	8,394	7,853
Financing receivable - 90 days or more past due	51,197	57,360
Financing receivable - total past due	59,591	65,213
Financing receivable - total loans	251,376	260,502
Financing receivable - non-accrual loans	19,264	19,879
Financing receivable - 90 days past due loans, still accruing interest	33,825	43,347
Total Loans [Member]
Financing receivable - current	5,128,631	5,114,802
Financing receivable - 30-89 days past due	71,900	44,971
Financing receivable - 90 days or more past due	188,173	188,842
Financing receivable - total past due	260,073	233,813
Financing receivable - total loans	5,388,704	5,348,615
Financing receivable - non-accrual loans	218,809	207,204
Financing receivable - 90 days past due loans, still accruing interest	$ 41,499	$ 52,574

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Note 1 - Summary of Significant Accounting Policies (Detail) (USD $)	3 Months Ended
	Mar. 31, 2011
Restatement of Prior Year Income, Gross	$ (295,000)
Restatement of Prior Year Income, Net of Tax	(174,000)
Impact of Restatement on Opening Retained Earnings, Net of Tax	174,000
Reduction of Tax [Member]
Restatement of Prior Year Income, Tax Effects	$ (121,000)

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Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Detail) - Credit Quality Indicators by Class Excluding Covered Loans (Cont.) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Home Equity1 [Member] | Performing [Member]
Loans by credit quality indicator	$ 397,516	$ 408,787
Home Equity1 [Member] | Non-Accrual [Member]
Loans by credit quality indicator	8,851	7,407
Home Equity1 [Member] | Total [Member]
Loans by credit quality indicator	406,367	416,194
1-4 Family Mortgages [Member] | Performing [Member]
Loans by credit quality indicator	212,081	195,777
1-4 Family Mortgages [Member] | Non-Accrual [Member]
Loans by credit quality indicator	5,648	5,322
1-4 Family Mortgages [Member] | Total [Member]
Loans by credit quality indicator	217,729	201,099
Installment Loans [Member] | Performing [Member]
Loans by credit quality indicator	39,223	42,264
Installment Loans [Member] | Non-Accrual [Member]
Loans by credit quality indicator	22	25
Installment Loans [Member] | Total [Member]
Loans by credit quality indicator	39,245	42,289
Total Consumer Loans [Member] | Performing [Member]
Loans by credit quality indicator	648,820	646,828
Total Consumer Loans [Member] | Non-Accrual [Member]
Loans by credit quality indicator	14,521	12,754
Total Consumer Loans [Member] | Total [Member]
Loans by credit quality indicator	$ 663,341	$ 659,582

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Note 4 - Loans (Tables)

3 Months Ended

Mar. 31, 2012

Composition Of Loan Portfolio [Text Block]

	March 31, 2012		December 31, 2011
Commercial and industrial	$	1,496,966	$	1,458,446
Agricultural		237,686		243,776
Commercial real estate:
Office, retail, and industrial		1,366,899		1,299,082
Multi-family		301,356		288,336
Residential construction		99,768		105,836
Commercial construction		142,307		144,909
Other commercial real estate		829,005		888,146
Total commercial real estate		2,739,335		2,726,309
Total corporate loans		4,473,987		4,428,531
Home equity		406,367		416,194
1-4 family mortgages		217,729		201,099
Installment loans		39,245		42,289
Total consumer loans		663,341		659,582
Total loans, excluding covered loans		5,137,328		5,088,113
Covered loans (1)		251,376		260,502
Total loans	$	5,388,704	$	5,348,615
Deferred loan fees included in total loans	$	7,283	$	7,828
Overdrawn demand deposits included in total loans	$	2,173	$	2,850

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Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Detail) - Loans and Related Allowance for Credit Losses by Portfolio Segment (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Commercial real estate:
Multi-family	$ 301,356	$ 288,336
Residential construction	99,768	105,836
Total commercial real estate	2,739,335	2,726,309
Total corporate loans	4,473,987	4,428,531
Consumer	663,341	659,582
Total loans, excluding covered loans	5,137,328	5,088,113
Individually Evaluated For Impairment [Member]
Commercial, industrial, and agricultural	49,075	37,385
Commercial real estate:
Office, retail, and industrial	32,813	28,216
Multi-family	8,551	5,589
Residential construction	20,024	17,378
Other commercial real estate	60,071	70,919
Total commercial real estate	121,459	122,102
Total corporate loans	170,534	159,487
Total loans, excluding covered loans	170,534	159,487
Total loans included in the calculation of the allowance for credit losses	170,534	159,487
Collectively Evaluated For Impairment [Member]
Commercial, industrial, and agricultural	1,685,577	1,664,837
Commercial real estate:
Office, retail, and industrial	1,334,086	1,270,866
Multi-family	292,805	282,747
Residential construction	79,744	88,458
Other commercial real estate	911,241	962,136
Total commercial real estate	2,617,876	2,604,207
Total corporate loans	4,303,453	4,269,044
Consumer	663,341	659,582
Total loans, excluding covered loans	4,966,794	4,928,626
Covered loans (1)	44,855	45,451
Total loans included in the calculation of the allowance for credit losses	5,011,649	4,974,077
Total Loans [Member]
Commercial, industrial, and agricultural	1,734,652	1,702,222
Commercial real estate:
Office, retail, and industrial	1,366,899	1,299,082
Multi-family	301,356	288,336
Residential construction	99,768	105,836
Other commercial real estate	971,312	1,033,055
Total commercial real estate	2,739,335	2,726,309
Total corporate loans	4,473,987	4,428,531
Consumer	663,341	659,582
Total loans, excluding covered loans	5,137,328	5,088,113
Covered loans (1)	44,855	45,451
Total loans included in the calculation of the allowance for credit losses	5,182,183	5,133,564
Individually Evaluated For Impairment Allowance [Member]
Commercial, industrial, and agricultural	14,975	14,827
Commercial real estate:
Office, retail, and industrial	1,447	1,507
Multi-family		20
Residential construction	3,110	2,502
Other commercial real estate	3,571	7,239
Total commercial real estate	8,128	11,268
Total corporate loans	23,103	26,095
Total loans, excluding covered loans	23,103	26,095
Total loans included in the calculation of the allowance for credit losses	23,103	26,095
Collectively Evaluated For Impairment Allowance [Member]
Commercial, industrial, and agricultural	29,740	31,190
Commercial real estate:
Office, retail, and industrial	16,109	14,505
Multi-family	5,082	5,047
Residential construction	11,153	12,061
Other commercial real estate	18,878	17,232
Total commercial real estate	51,222	48,845
Total corporate loans	80,962	80,035
Consumer	13,706	14,843
Total loans, excluding covered loans	94,668	94,878
Covered loans (1)	993	989
Total loans included in the calculation of the allowance for credit losses	95,661	95,867
Total Allowance [Member]
Commercial, industrial, and agricultural	44,715	46,017
Commercial real estate:
Office, retail, and industrial	17,556	16,012
Multi-family	5,082	5,067
Residential construction	14,263	14,563
Other commercial real estate	22,449	24,471
Total commercial real estate	59,350	60,113
Total corporate loans	104,065	106,130
Consumer	13,706	14,843
Total loans, excluding covered loans	117,771	120,973
Covered loans (1)	993	989
Total loans included in the calculation of the allowance for credit losses	$ 118,764	$ 121,962

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Note 5 - Covered Assets (Detail) - Covered Assets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011
Home equity lines (1)	$ 44,855	[1]	$ 45,451	[1]
Covered impaired loans	171,014		178,025
Other covered loans (2)	35,507	[2]	37,026	[2]
Total covered loans	251,376	[3]	260,502	[3]
FDIC indemnification asset	58,488		65,609
Covered OREO	16,990		23,455
Total covered assets	326,854		349,566
Covered non-accrual loans	19,264		19,879
Covered loans past due 90 days or more and still accruing interest	$ 33,825		$ 43,347

[1] These loans are open-end consumer loans that are not categorized as purchased impaired loans.

[2] These are loans that did not evidence impairment on the date of acquisition.

[3] For information on covered loans, refer to Note 5, "Covered Assets."

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Note 3 - Securities (Detail) - Securities Gains (Losses) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Proceeds from sales	$ 2,662		$ 44,212
Gains (losses) on sales of securities:
Gross realized gains	47		808
Gross realized losses	(253)		(268)
Net realized (losses) gains on securities sales	(206)		540
Non-cash impairment charges:
Other-than-temporary securities impairment (“OTTI”)	(737)
Net non-cash impairment charges	(737)
Net realized (losses) gains	(943)		540
Income tax (benefit) expense on net realized (losses) gains	(386)		221
Net trading gains (1)	$ 1,401	[1]	$ 744	[1]

[1] All trading (losses) gains, net relate to trading securities still held as of March 31, 2012 and March 31, 2011.

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Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Detail) - Impaired Loans Individually Evaluated by Class (Continued) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Average Recorded Investment Balance [Member] | Commercial And Industrial [Member]
Financing receivable	$ 45,630		$ 51,024
Average Recorded Investment Balance [Member] | Agricultural [Member]
Financing receivable	922		2,515
Average Recorded Investment Balance [Member] | Office Retail And Industrial [Member]
Financing receivable	28,683		17,910
Average Recorded Investment Balance [Member] | Multi-Family [Member]
Financing receivable	6,528		6,650
Average Recorded Investment Balance [Member] | Residential Construction [Member]
Financing receivable	17,074		49,823
Average Recorded Investment Balance [Member] | Commercial Construction [Member]
Financing receivable	22,755		25,391
Average Recorded Investment Balance [Member] | Other Commerical Real Estate [Member]
Financing receivable	51,842		44,339
Average Recorded Investment Balance [Member] | Total Commercial Real Estate [Member]
Financing receivable	126,882		144,113
Average Recorded Investment Balance [Member] | Total Impaired Loans Individually Evaluated For Impairment [Member]
Financing receivable	173,434		197,652
Interest Income [Member] | Commercial And Industrial [Member]
Financing receivable	9	[1]	6	[1]
Interest Income [Member] | Agricultural [Member]
Financing receivable		[1]		[1]
Interest Income [Member] | Office Retail And Industrial [Member]
Financing receivable		[1]	12	[1]
Interest Income [Member] | Multi-Family [Member]
Financing receivable		[1]	2	[1]
Interest Income [Member] | Residential Construction [Member]
Financing receivable		[1]		[1]
Interest Income [Member] | Commercial Construction [Member]
Financing receivable		[1]		[1]
Interest Income [Member] | Other Commerical Real Estate [Member]
Financing receivable		[1]	17	[1]
Interest Income [Member] | Total Commercial Real Estate [Member]
Financing receivable		[1]	31	[1]
Interest Income [Member] | Total Impaired Loans Individually Evaluated For Impairment [Member]
Financing receivable	$ 9	[1]	$ 37	[1]

[1] Recorded using the cash basis of accounting.

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Note 12 - Fair Value (Detail) - Certain Characteristics of CDOs and Unobservable Inputs Significant to the Valuation of CDOs (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012
One [Member]
Class (2)	C-1	[1],[2]
Original par (in Dollars)	$ 17,500	[1]
Amortized cost (in Dollars)	7,140	[1]
Fair value (in Dollars)	3,180	[1]
Lowest credit rating (Moody’s)	Ca	[1]
Number of underlying issuers	46	[1]
Percent of issuers currently performing	78.30%	[1]
Current deferral and default percent (3)	14.60%	[3]
Expected future deferral and default percent (4)	19.90%	[1],[4]
Excess subordination percent (5)	0.00%	[1],[5]
Discount rate risk adjustment, in basis points (6)	1,400	[6]
Significant unobservable assumptions weighted average of Issuers:
Probability of prepayments	8.30%	[1]
Probability of default	22.90%	[1]
Loss given default	88.20%	[1]
Probability of deferral cure	31.80%	[1]
Two [Member]
Class (2)	C-1	[1],[2]
Original par (in Dollars)	15,000	[1]
Amortized cost (in Dollars)	6,490	[1]
Fair value (in Dollars)	1,251	[1]
Lowest credit rating (Moody’s)	Ca	[1]
Number of underlying issuers	57	[1]
Percent of issuers currently performing	78.90%	[1]
Current deferral and default percent (3)	16.90%	[3]
Expected future deferral and default percent (4)	22.10%	[1],[4]
Excess subordination percent (5)	0.00%	[1],[5]
Discount rate risk adjustment, in basis points (6)	1,400	[6]
Significant unobservable assumptions weighted average of Issuers:
Probability of prepayments	4.30%	[1]
Probability of default	27.50%	[1]
Loss given default	88.70%	[1]
Probability of deferral cure	24.00%	[1]
Three [Member]
Class (2)	C-1	[1],[2]
Original par (in Dollars)	15,000	[1]
Amortized cost (in Dollars)	12,990	[1]
Fair value (in Dollars)	2,963	[1]
Lowest credit rating (Moody’s)	Ca	[1]
Number of underlying issuers	62	[1]
Percent of issuers currently performing	74.20%	[1]
Current deferral and default percent (3)	12.80%	[3]
Expected future deferral and default percent (4)	16.10%	[1],[4]
Excess subordination percent (5)	1.00%	[1],[5]
Discount rate risk adjustment, in basis points (6)	1,400	[6]
Significant unobservable assumptions weighted average of Issuers:
Probability of prepayments	3.20%	[1]
Probability of default	21.50%	[1]
Loss given default	89.80%	[1]
Probability of deferral cure	30.40%	[1]
Four [Member]
Class (2)	B1	[1],[2]
Original par (in Dollars)	15,000	[1]
Amortized cost (in Dollars)	13,922	[1]
Fair value (in Dollars)	4,168	[1]
Lowest credit rating (Moody’s)	Ca	[1]
Number of underlying issuers	63	[1]
Percent of issuers currently performing	55.60%	[1]
Current deferral and default percent (3)	33.30%	[3]
Expected future deferral and default percent (4)	28.60%	[1],[4]
Excess subordination percent (5)	0.00%	[1],[5]
Discount rate risk adjustment, in basis points (6)	1,300	[6]
Significant unobservable assumptions weighted average of Issuers:
Probability of prepayments	7.00%	[1]
Probability of default	29.20%	[1]
Loss given default	92.60%	[1]
Probability of deferral cure	42.90%	[1]
Five [Member]
Class (2)	C	[1],[2]
Original par (in Dollars)	10,000	[1]
Amortized cost (in Dollars)	1,317	[1]
Fair value (in Dollars)	408	[1]
Lowest credit rating (Moody’s)	C	[1]
Number of underlying issuers	56	[1]
Percent of issuers currently performing	60.70%	[1]
Current deferral and default percent (3)	40.40%	[3]
Expected future deferral and default percent (4)	27.20%	[1],[4]
Excess subordination percent (5)	0.00%	[1],[5]
Discount rate risk adjustment, in basis points (6)	1,400	[6]
Significant unobservable assumptions weighted average of Issuers:
Probability of prepayments	7.20%	[1]
Probability of default	39.90%	[1]
Loss given default	92.70%	[1]
Probability of deferral cure	32.10%	[1]
Six [Member]
Class (2)	C	[1],[2]
Original par (in Dollars)	6,500	[1]
Amortized cost (in Dollars)	6,179	[1]
Fair value (in Dollars)	$ 1,715	[1]
Lowest credit rating (Moody’s)	Ca	[1]
Number of underlying issuers	79	[1]
Percent of issuers currently performing	67.10%	[1]
Current deferral and default percent (3)	27.20%	[3]
Expected future deferral and default percent (4)	12.80%	[1],[4]
Excess subordination percent (5)	5.60%	[1],[5]
Discount rate risk adjustment, in basis points (6)	1,300	[6]
Significant unobservable assumptions weighted average of Issuers:
Probability of prepayments	3.20%	[1]
Probability of default	28.10%	[1]
Loss given default	95.30%	[1]
Probability of deferral cure	51.10%	[1]

[1] The Company has a seventh CDO, but no information is reported for that CDO since the security had an amortized cost and fair value of zero as of March 31, 2012.

[2] Class refers to the Company's tranche within the security. In a structured investment, a tranche is one of a number of related securities offered as part of the same transaction, and relates to the order in which investors receive principal and interest payments (i.e. tranche B pays before trance C).

[3] Represents deferrals and defaults, net of recoveries, as a percent of the original collateral.

[4] Represents expected future net deferrals and defaults, net of recoveries, as a percent of the remaining performing collateral.

[5] Represents additional defaults that the CDO can absorb before the security experiences any credit impairment. The excess subordination percentage is calculated by dividing the amount of potential additional loss that can be absorbed (before the receipt of all expected future principal and interest payments is affected) by the total balance of performing collateral.

[6] Cash flows are discounted at LIBOR plus this additional risk adjustment to reflect the higher risk inherent in these securities given the current market environment.

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Note 9 - Income Taxes (Detail) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2010
Income Tax Expense (Benefit)	$ 1,156,000	$ (91,000)
Other Tax Expense (Benefit)		$ 1,600,000
State Corporate Income Tax Rate		9.50%	7.30%

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Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Detail) - Allowance for Credit Losses (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Balance at beginning of period	$ 121,962	$ 145,072
Balance at end of period	118,764	145,003
Allowance for loan losses	116,264	142,503	119,462
Reserve for unfunded commitments	2,500	2,500
Total allowance for credit losses	118,764	145,003
Loans charged-off	(22,686)	(21,581)
Recoveries of loans previously charged-off	1,278	2,020
Net loans charged-off	(21,408)	(19,561)
Provision for loan losses	$ 18,210	$ 19,492

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Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Net cash provided by operating activities	$ 67,862	$ 52,953
Investing Activities
Proceeds from maturities, repayments, and calls of securities available-for-sale	81,049	75,166
Proceeds from sales of securities available-for-sale	2,662	44,212
Purchases of securities available-for-sale	(254,881)	(115,792)
Proceeds from maturities, repayments, and calls of securities held-to-maturity	8,050	2,516
Purchases of securities held-to-maturity	(3,911)	(2,414)
Proceeds from the redemption of Federal Home Loan Bank stock	11,437
Net (increase) decrease in loans	(66,671)	2,019
Proceeds from claims on BOLI	239	7
Proceeds from sales of OREO	17,156	8,239
Purchases of premises, furniture, and equipment	(536)	(476)
Net cash (used in) provided by investing activities	(205,406)	13,477
Financing Activities
Net increase (decrease) in deposit accounts	7,188	(91,582)
Net decrease in borrowed funds	(3,216)	(30,632)
Payments for the retirement of subordinated debt	(20,004)
Cash dividends paid	(746)	(3,155)
Restricted stock activity	(728)	(165)
Excess tax expense related to share-based compensation	(107)	(212)
Net cash used in financing activities	(17,613)	(125,746)
Net decrease in cash and cash equivalents	(155,157)	(59,316)
Cash and cash equivalents at beginning of period	641,530	585,776
Cash and cash equivalents at end of period	486,373	526,460
Supplemental Disclosures:
Non-cash transfers of loans to OREO	12,295	12,433
Non-cash transfer of loans held-for-investment to loans held-for-sale	1,500	3,800
Non-cash transfer of loans held-for-sale to loans held-for-investment	1,500
Dividends declared but unpaid	$ 749	$ 746

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Note 9 - Income Taxes (Detail) - Income Tax (Benefit) Expense (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Income before income tax expense (benefit)	$ 9,048,000	$ 9,953,000
Income tax expense (benefit):
Federal income tax expense	845,000	910,000
State income tax expense (benefit)	311,000	(1,001,000)
Total income tax expense (benefit)	$ 1,156,000	$ (91,000)
Effective income tax rate	12.80%	(0.90%)

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Note 5 - Covered Assets (Detail) - Changes in FDIC Indemnification Asset (USD $) In Thousands, unless otherwise specified			3 Months Ended
	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2012		Mar. 31, 2011
Balance at beginning of period	$ 58,488	$ 65,609	$ 65,609		$ 95,899
Amortization			(1,979)		(2,242)
Expected reimbursements from the FDIC for changes in expected credit losses (1)			2,034	[1]	2,513	[1]
Payments received from the FDIC			(7,176)		(10,784)
Balance at end of period	$ 58,488	$ 65,609	$ 58,488		$ 85,386

[1] The increases in indemnification asset were a result of decreases in estimated cash flows on certain loans. The indemnification asset increased by the applicable loss share percentage for additional expected losses.

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Note 8 - Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2012

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Quarters Ended March 31,
	2012			2011
Net income	$	7,892		$	10,044
Preferred dividends		-			(2,413	)
Accretion on preferred stock		-			(168	)
Net income applicable to non-vested restricted shares		(139	)		(137	)
Net income applicable to common shares	$	7,753		$	7,326
Weighted-average common shares outstanding:
Weighted-average common shares outstanding (basic)		73,505			73,151
Dilutive effect of common stock equivalents		-			-
Weighted-average diluted common shares outstanding		73,505			73,151
Basic earnings per share	$	0.11		$	0.10
Diluted earnings per share	$	0.11		$	0.10
Anti-dilutive shares not included in the computation of diluted earnings per share (1)		1,863			3,733

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Note 7 - Senior and Subordinated Debt (Tables)

3 Months Ended

Mar. 31, 2012

Schedule of Long-term Debt Instruments [Table Text Block]

	March 31, 2012			December 31, 2011
5.875% senior notes due in 2016
Principal amount	$	115,000		$	115,000
Discount		(569	)		(600	)
Total senior notes due in 2016		114,431			114,400
5.85% subordinated notes due in 2016
Principal amount		50,500			50,500
Discount		(22	)		(24	)
Total subordinated notes due in 2016		50,478			50,476
6.95% junior subordinated debentures due in 2033
Principal amount		66,253			87,351
Discount		(56	)		(74	)
Total junior subordinated debentures due in 2033		66,197			87,277
Total senior and subordinated debt	$	231,106		$	252,153

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Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Detail) - Credit Quality Indicators by Class, Excluding Covered Loans (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Pass [Member] | Commercial And Industrial [Member]
Financing receivable - by credit quality indicators	$ 1,358,137	$ 1,308,812
Pass [Member] | Agricultural [Member]
Financing receivable - by credit quality indicators	226,134	232,270
Pass [Member] | Office Retail And Industrial [Member]
Financing receivable - by credit quality indicators	1,222,796	1,147,026
Pass [Member] | Multi-Family [Member]
Financing receivable - by credit quality indicators	287,789	275,031
Pass [Member] | Residential Construction [Member]
Financing receivable - by credit quality indicators	42,500	48,806
Pass [Member] | Commercial Construction [Member]
Financing receivable - by credit quality indicators	90,618	92,568
Pass [Member] | Other Commercial Real Estate [Member]
Financing receivable - by credit quality indicators	703,618	746,213
Pass [Member] | Total Commercial Real Estate [Member]
Financing receivable - by credit quality indicators	2,347,321	2,309,644
Pass [Member] | Total Corporate Loans [Member]
Financing receivable - by credit quality indicators	3,931,592	3,850,726
Special Mention [Member] | Commercial And Industrial [Member]
Financing receivable - by credit quality indicators	45,735	57,866
Special Mention [Member] | Agricultural [Member]
Financing receivable - by credit quality indicators	10,670	10,487
Special Mention [Member] | Office Retail And Industrial [Member]
Financing receivable - by credit quality indicators	63,997	78,578
Special Mention [Member] | Multi-Family [Member]
Financing receivable - by credit quality indicators	2,528	5,803
Special Mention [Member] | Residential Construction [Member]
Financing receivable - by credit quality indicators	21,588	27,198
Special Mention [Member] | Commercial Construction [Member]
Financing receivable - by credit quality indicators	23,944	23,587
Special Mention [Member] | Other Commercial Real Estate [Member]
Financing receivable - by credit quality indicators	65,593	73,058
Special Mention [Member] | Total Commercial Real Estate [Member]
Financing receivable - by credit quality indicators	177,650	208,224
Special Mention [Member] | Total Corporate Loans [Member]
Financing receivable - by credit quality indicators	234,055	276,577
Substandard Accrual [Member] | Commercial And Industrial [Member]
Financing receivable - by credit quality indicators	37,936	47,616
Substandard Accrual [Member] | Office Retail And Industrial [Member]
Financing receivable - by credit quality indicators	45,275	43,435
Substandard Accrual [Member] | Multi-Family [Member]
Financing receivable - by credit quality indicators	1,424	1,015
Substandard Accrual [Member] | Residential Construction [Member]
Financing receivable - by credit quality indicators	14,576	11,756
Substandard Accrual [Member] | Commercial Construction [Member]
Financing receivable - by credit quality indicators	7,448	5,407
Substandard Accrual [Member] | Other Commercial Real Estate [Member]
Financing receivable - by credit quality indicators	16,657	17,428
Substandard Accrual [Member] | Total Commercial Real Estate [Member]
Financing receivable - by credit quality indicators	85,380	79,041
Substandard Accrual [Member] | Total Corporate Loans [Member]
Financing receivable - by credit quality indicators	123,316	126,657
Substandard Non-Accrual [Member] | Commercial And Industrial [Member]
Financing receivable - by credit quality indicators	55,158	44,152
Substandard Non-Accrual [Member] | Agricultural [Member]
Financing receivable - by credit quality indicators	882	1,019
Substandard Non-Accrual [Member] | Office Retail And Industrial [Member]
Financing receivable - by credit quality indicators	34,831	30,043
Substandard Non-Accrual [Member] | Multi-Family [Member]
Financing receivable - by credit quality indicators	9,615	6,487
Substandard Non-Accrual [Member] | Residential Construction [Member]
Financing receivable - by credit quality indicators	21,104	18,076
Substandard Non-Accrual [Member] | Commercial Construction [Member]
Financing receivable - by credit quality indicators	20,297	23,347
Substandard Non-Accrual [Member] | Other Commercial Real Estate [Member]
Financing receivable - by credit quality indicators	43,137	51,447
Substandard Non-Accrual [Member] | Total Commercial Real Estate [Member]
Financing receivable - by credit quality indicators	128,984	129,400
Substandard Non-Accrual [Member] | Total Corporate Loans [Member]
Financing receivable - by credit quality indicators	185,024	174,571
Total [Member] | Commercial And Industrial [Member]
Financing receivable - by credit quality indicators	1,496,966	1,458,446
Total [Member] | Agricultural [Member]
Financing receivable - by credit quality indicators	237,686	243,776
Total [Member] | Office Retail And Industrial [Member]
Financing receivable - by credit quality indicators	1,366,899	1,299,082
Total [Member] | Multi-Family [Member]
Financing receivable - by credit quality indicators	301,356	288,336
Total [Member] | Residential Construction [Member]
Financing receivable - by credit quality indicators	99,768	105,836
Total [Member] | Commercial Construction [Member]
Financing receivable - by credit quality indicators	142,307	144,909
Total [Member] | Other Commercial Real Estate [Member]
Financing receivable - by credit quality indicators	829,005	888,146
Total [Member] | Total Commercial Real Estate [Member]
Financing receivable - by credit quality indicators	2,739,335	2,726,309
Total [Member] | Total Corporate Loans [Member]
Financing receivable - by credit quality indicators	$ 4,473,987	$ 4,428,531

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Note 5 - Covered Assets (Detail) - Changes in Accretable Yield (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Balance at beginning of period	$ 52,147		$ 63,616
Accretion	(5,386)		(8,424)
Net reclassifications to non-accretable difference (1)	(5,716)	[1]	(4,182)	[1]
Balance at end of period	$ 41,045		$ 51,010

[1] Amount represents a decrease in the estimated cash flows to be collected over the remaining estimated life of the underlying portfolio.

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Note 9 - Income Taxes (Tables)

15 Months Ended

Mar. 31, 2012

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Quarters Ended March 31,
	2012			2011
Income before income tax expense (benefit)	$	9,048		$	9,953
Income tax expense (benefit):
Federal income tax expense	$	845		$	910
State income tax expense (benefit)		311			(1,001	)
Total income tax expense (benefit)	$	1,156		$	(91	)
Effective income tax rate		12.8	%		(0.9	%)

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Note 11 - Commitments Guarantees, and Contingent Liabilities (Tables)

3 Months Ended

Mar. 31, 2012

Contractual or Notional Amounts of Financial Instruments [Text Block]

	March 31, 2012		December 31, 2011
Commitments to extend credit:
Home equity lines	$	254,481	$	257,315
Credit card lines		21,255		21,257
1-4 family real estate construction		10,512		13,300
Commercial real estate		133,918		139,574
Commercial and industrial		608,122		609,601
Overdraft protection program (1)		176,949		178,699
All other commitments		88,051		129,015
Total commitments	$	1,293,288	$	1,348,761
Letters of credit:
1-4 family real estate construction	$	7,861	$	8,661
Commercial real estate		48,339		49,373
All other		55,872		58,532
Total letters of credit	$	112,072	$	116,566
Unamortized fees associated with letters of credit (2) (3)	$	598	$	668
Remaining weighted-average term (in months)		10.10		9.62
Remaining lives (in years)	0.1 to 12.3		0.1 to 12.6

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Consolidated Statements Of Changes In Stockholders’ Equity (Parentheticals) (USD $)	3 Months Ended
	Mar. 31, 2011
Common dividends declared per common share	$ 0.01
Preferred dividends declared per preferred share	$ 12.50

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Note 12 - Fair Value (Tables)

15 Months Ended

Mar. 31, 2012

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	March 31, 2012						December 31, 2011
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets and liabilities measured at fair value on a recurring basis
Assets:
Trading securities:
Money market funds	$	1,209	$	-	$	-	$	1,565	$	-	$	-
Mutual funds		14,822		-		-		12,904		-		-
Total trading securities		16,031		-		-		14,469		-		-
Securities available-for-sale:
U.S. agency securities		-		5,011		-		-		5,035		-
CMOs		-		507,546		-		-		384,104		-
Other residential MBSs		-		136,001		-		-		87,691		-
Municipal securities		-		488,003		-		-		490,071		-
CDOs		-		-		13,685		-		-		13,394
Corporate debt securities		-		30,733		-		-		30,014		-
Hedge fund investment		-		1,936		-		-		1,616		-
Other equity securities		42		1,018		-		41		1,040		-
Total securities available-for-sale		42		1,170,248		13,685		41		999,571		13,394
Mortgage servicing rights (1)		-		-		878		-		-		929
Liabilities:
Derivative liabilities (2)	$	-	$	2,319	$	-	$	-	$	2,459	$	-

Rollforward Carrying Value of CDO's [Table Text Block]

	Quarters Ended March 31,
	2012			2011
Balance at beginning of period	$	13,394		$	14,858
Total (loss) income:
Included in earnings (1)		(721	)		-
Included in other comprehensive income		1,012			1,335
Purchases		-			-
Sales		-			-
Issuances		-			-
Settlements		-			-
Balance at end of period	$	13,685		$	16,193
Change in unrealized losses recognized in earnings relating to securities still held at end of period	$	(721	)	$	-

Characteristics of CDOs and Unobservable Inputs Significant to the Valuation of CDOs [Table Text Block]

	CDO Number (1)
	One			Two			Three			Four			Five			Six
Characteristics:
Class (2)		C-1			C-1			C-1			B1			C			C
Original par	$	17,500		$	15,000		$	15,000		$	15,000		$	10,000		$	6,500
Amortized cost		7,140			6,490			12,990			13,922			1,317			6,179
Fair value		3,180			1,251			2,963			4,168			408			1,715
Lowest credit rating (Moody’s)	Ca			Ca			Ca			Ca				C		Ca
Number of underlying issuers		46			57			62			63			56			79
Percent of issuers currently performing		78.3	%		78.9	%		74.2	%		55.6	%		60.7	%		67.1	%
Current deferral and default percent (3)		14.6	%		16.9	%		12.8	%		33.3	%		40.4	%		27.2	%
Expected future deferral and default       percent (4)		19.9	%		22.1	%		16.1	%		28.6	%		27.2	%		12.8	%
Excess subordination percent (5)		0.0	%		0.0	%		1.0	%		0.0	%		0.0	%		5.6	%
Discount rate risk adjustment, in basis points (6)		1,400			1,400			1,400			1,300			1,400			1,300
Significant unobservable assumptions weighted average of Issuers:
Probability of prepayments		8.3	%		4.3	%		3.2	%		7.0	%		7.2	%		3.2	%
Probability of default		22.9	%		27.5	%		21.5	%		29.2	%		39.9	%		28.1	%
Loss given default		88.2	%		88.7	%		89.8	%		92.6	%		92.7	%		95.3	%
Probability of deferral cure		31.8	%		24.0	%		30.4	%		42.9	%		32.1	%		51.1	%

Fair Value Measurements, Nonrecurring [Table Text Block]

	March 31, 2012						December 31, 2011
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Collateral-dependent impaired  loans	$	-	$	-	$	120,190	$	-	$	-	$	96,220
OREO (1)		-		-		52,266		-		-		57,430
Loans held-for-sale (2)		-		-		1,500		-		-		4,200
Assets held-for-sale (3)		-		-		7,933		-		-		7,933

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

	Quarters Ended March 31,
	2012				2011
	Charged to Allowance for Loan Losses		Charged to Earnings		Charged to Allowance for Loan Losses		Charged to Earnings
Collateral-dependent impaired loans	$	18,740	$	-	$	16,810	$	-
OREO		-		690		-		1,112
Loans held-for-sale		3,135		-		200		-
Assets held-for-sale		-		-		-		310

Fair Value, by Balance Sheet Grouping [Table Text Block]

	March 31, 2012										December 31, 2011
	Carrying			Fair Value							Carrying			Fair Value
	Amount			Level 1		Level 2		Level 3			Amount			Level 1		Level 2		Level 3
Assets:
Cash and due from banks	$	105,722		$	105,722	$	-	$	-		$	123,354		$	123,354	$	-	$	-
Interest-bearing deposits in other banks		380,651			-		380,651		-			518,176			-		518,176		-
Securities held-to-maturity:
Municipal securities		56,319			-		59,364					60,458			-		61,477		-
Loans, net of allowance for loan losses:
Commercial and industrial		1,496,966			-		-		1,498,870			1,458,446			-		-		1,460,972
Agricultural		237,686			-		-		236,753			243,776			-		-		243,035
Office, retail, and industrial		1,366,899			-		-		1,375,680			1,299,082			-		-		1,303,288
Multi-family		301,356			-		-		304,217			288,336			-		-		290,645
Residential construction		99,768			-		-		100,165			105,836			-		-		106,145
Commercial construction		142,307			-		-		142,503			144,909			-		-		145,305
Other commercial real estate		829,005			-		-		833,919			888,146			-		-		890,275
Home equity		406,367			-		-		387,653			416,194			-		-		394,404
1-4 family mortgages		217,729			-		-		222,162			201,099			-		-		206,115
Installment loans		39,245			-		-		40,218			42,289			-		-		43,030
Covered loans		251,376			-		-		251,376			260,502			-		-		260,502
Allowance for loan losses		(116,264	)		-		-		(116,264	)		(119,462	)		-		-		(119,462	)
Loans, net of allowance for loan losses		5,272,440			-		-		5,300,859			5,229,153			-		-		5,251,773
FDIC indemnification asset		58,488			-		-		31,486			65,609			-		-		37,173
Accrued interest receivable		29,423			-		29,423					29,826			-		29,826
Investment in bank-owned life insurance		206,304			-		-		206,304			206,235			-		-		206,235
Liabilities:
Deposits
Demand deposits	$	1,637,593		$	-	$	1,637,593	$	-		$	1,593,773		$	-	$	1,593,773	$	-
Savings deposits		1,030,554			-		1,030,554		-			970,016			-		970,016		-
NOW accounts		1,055,558			-		1,055,558		-			1,057,887			-		1,057,887		-
Money market deposits		1,173,388			-		1,173,388		-			1,198,382			-		1,198,382		-
Time deposits		1,589,270			-		1,591,759		-			1,659,117			-		1,659,251		-
Total deposits		6,486,363			-		6,488,852		-			6,479,175			-		6,479,309		-
Borrowed funds		202,155			-		205,777		-			205,371			-		208,728		-
Senior and  subordinated debt		231,106			226,442		-		-			252,153			237,393		-		-
Accrued interest payable		7,155			-		7,155		-			4,019			-		4,019		-
Standby letters of credit		598			-		598		-			668			-		668		-

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Note 3 - Securities (Detail) - Securities In An Unrealized Loss Position (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Number of Securities	55	62
Less than 12 Months Fair Value	$ 135,261	$ 167,092
Less than 12 months Unrealized Losses	623	1,848
12 Months or Longer Fair Value	37,045	39,986
12 Months or Longer Unrealized Losses	35,000	36,288
Continuous Unrealized Loss Position Fair Value	172,306	207,078
Continuous Unrealized Loss Position Unrealized Losses	35,623	38,136
US Government Corporations and Agencies Securities [Member]
Number of Securities	2	2
12 Months or Longer Fair Value	5,011	5,035
12 Months or Longer Unrealized Losses	18	25
Continuous Unrealized Loss Position Fair Value	5,011	5,035
Continuous Unrealized Loss Position Unrealized Losses	18	25
Collateralized Residential Mortgage Obligations [Member]
Number of Securities	26	30
Less than 12 Months Fair Value	132,978	163,819
Less than 12 months Unrealized Losses	589	1,818
12 Months or Longer Fair Value	11,338	12,628
12 Months or Longer Unrealized Losses	365	528
Continuous Unrealized Loss Position Fair Value	144,316	176,447
Continuous Unrealized Loss Position Unrealized Losses	954	2,346
Other Residential Mortgage-Backed Securities [Member]
Number of Securities	4	4
Less than 12 Months Fair Value	612	182
Less than 12 months Unrealized Losses	1	17
12 Months or Longer Fair Value	263	1,072
12 Months or Longer Unrealized Losses	18	6
Continuous Unrealized Loss Position Fair Value	875	1,254
Continuous Unrealized Loss Position Unrealized Losses	19	23
State and Municipal [Member]
Number of Securities	17	19
Less than 12 Months Fair Value	1,671	934
Less than 12 months Unrealized Losses	33	2
12 Months or Longer Fair Value	6,748	7,857
12 Months or Longer Unrealized Losses	246	364
Continuous Unrealized Loss Position Fair Value	8,419	8,791
Continuous Unrealized Loss Position Unrealized Losses	279	366
Collateralized Debt Obligations [Member]
Number of Securities	6	6
12 Months or Longer Fair Value	13,685	13,394
12 Months or Longer Unrealized Losses	34,353	35,365
Continuous Unrealized Loss Position Fair Value	13,685	13,394
Continuous Unrealized Loss Position Unrealized Losses	34,353	35,365
Corporate Debt Securities [Member]
Number of Securities		1
Less than 12 Months Fair Value		2,157
Less than 12 months Unrealized Losses		11
Continuous Unrealized Loss Position Fair Value		2,157
Continuous Unrealized Loss Position Unrealized Losses		$ 11

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Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Detail) - TDRs by Class (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Restructured loans still accruing interest	$ 2,076	$ 17,864
Commercial And Industrial [Member]
Restructured loans still accruing interest	518	1,451
Restructured loans non-accrual	1,240	897
Restructured loans	1,758	2,348
Office Retail And Industrial [Member]
Restructured loans still accruing interest	220	1,742
Restructured loans	220	1,742
Multi-Family [Member]
Restructured loans still accruing interest		11,107
Restructured loans non-accrual	1,758	1,758
Restructured loans	1,758	12,865
Commercial Construction [Member]
Restructured loans non-accrual	14,006	14,006
Restructured loans	14,006	14,006
Other Commercial Real Estate [Member]
Restructured loans still accruing interest		227
Restructured loans non-accrual	11,467	11,417
Restructured loans	11,467	11,644
Total Commercial Real Estate [Member]
Restructured loans still accruing interest	220	13,076
Restructured loans non-accrual	27,231	27,181
Restructured loans	27,451	40,257
Total Corporate Loans [Member]
Restructured loans still accruing interest	738	14,527
Restructured loans non-accrual	28,471	28,078
Restructured loans	29,209	42,605
Home Equity1 [Member]
Restructured loans still accruing interest	359	1,093
Restructured loans non-accrual	409	471
Restructured loans	768	1,564
1-4 Family Mortgages [Member]
Restructured loans still accruing interest	979	2,089
Restructured loans non-accrual	1,080	1,293
Restructured loans	2,059	3,382
Installment Loans [Member]
Restructured loans still accruing interest		155
Restructured loans		155
Consumer [Member]
Restructured loans still accruing interest	1,338	3,337
Restructured loans non-accrual	1,489	1,764
Restructured loans	2,827	5,101
Total Loans [Member]
Restructured loans still accruing interest	2,076	17,864
Restructured loans non-accrual	29,960	29,842
Restructured loans	$ 32,036	$ 47,706

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Consolidated Statements of Financial Condition (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011
Cash and due from banks	$ 105,722		$ 123,354
Interest-bearing deposits in other banks	380,651		518,176
Trading securities, at fair value	16,031	[1]	14,469	[1]
Securities available-for-sale, at fair value	1,183,975		1,013,006
Securities held-to-maturity, at amortized cost	56,319		60,458
Federal Home Loan Bank and Federal Reserve Bank stock, at cost	46,750		58,187
Loans, excluding covered loans	5,137,328		5,088,113
Covered loans	251,376	[2]	260,502	[2]
Allowance for loan losses	(116,264)		(119,462)
Net loans	5,272,440		5,229,153
Other real estate owned (“OREO”), excluding covered OREO	35,276		33,975
Covered OREO	16,990		23,455
Federal Deposit Insurance Corporation (“FDIC”) indemnification asset	58,488		65,609
Premises, furniture, and equipment	132,865		134,977
Accrued interest receivable	29,423		29,826
Investment in bank-owned life insurance (“BOLI”)	206,304		206,235
Goodwill and other intangible assets	282,815		283,650
Other assets	163,953		179,064
Total assets	7,988,002		7,973,594
Liabilities
Noninterest-bearing deposits	1,637,593		1,593,773
Interest-bearing deposits	4,848,770		4,885,402
Total deposits	6,486,363		6,479,175
Borrowed funds	202,155		205,371
Senior and subordinated debt	231,106		252,153
Payable for securities purchased	16,241
Accrued interest payable and other liabilities	79,436		74,308
Total liabilities	7,015,301		7,011,007
Stockholders’ Equity
Common stock	858		858
Additional paid-in capital	413,742		428,001
Retained earnings	817,630		810,487
Accumulated other comprehensive loss, net of tax	(10,919)		(13,276)
Treasury stock, at cost	(248,610)		(263,483)
Total stockholders’ equity	972,701		962,587
Total liabilities and stockholders’ equity	$ 7,988,002		$ 7,973,594

[1] Trading securities held by the Company represent diversified investment securities held in a grantor trust under deferred compensation arrangements in which plan participants may direct amounts earned to be invested in securities other than Company stock.

[2] For information on covered loans, refer to Note 5, "Covered Assets."

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Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Detail) (Troubled Debt Restructurings [Member], USD $)	Mar. 31, 2012	Dec. 31, 2011
Troubled Debt Restructurings [Member]
Valuation Allowance on Troubled Debt Restructured Loans	$ 916,000	$ 94,000

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Consolidated Statements Of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended						3 Months Ended
	Mar. 31, 2012 Accumulated Net Unrealized Investment Gain (Loss) [Member]	Mar. 31, 2011 Accumulated Net Unrealized Investment Gain (Loss) [Member]	Mar. 31, 2012 Unrecognized Net Pension Costs [Member]	Dec. 31, 2011 Unrecognized Net Pension Costs [Member]	Mar. 31, 2011 Unrecognized Net Pension Costs [Member]	Dec. 31, 2010 Unrecognized Net Pension Costs [Member]	Mar. 31, 2012 Accumulated Other Comprehensive Income (Loss) [Member]	Mar. 31, 2011 Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance	$ (354)	$ (19,806)	$ (12,922)	$ (12,922)	$ (7,933)	$ (7,933)	$ (13,276)	$ (27,739)
Other comprehensive income	2,357	3,366					2,357	3,366
Ending Balance	$ 2,003	$ (16,440)	$ (12,922)	$ (12,922)	$ (7,933)	$ (7,933)	$ (10,919)	$ (24,373)

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Note 7 - Senior and Subordinated Debt (Detail) - Senior and Subordinated Debt (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Notes
Total senior and subordinated debt	$ 231,106	$ 252,153
Senior Note [Member]
Principal amount	115,000	115,000
Discount	(569)	(600)
Total senior notes due in 2016	114,431	114,400
Subordinated Notes [Member]
Principal amount	50,500	50,500
Discount	(22)	(24)
Total subordinated notes due in 2016	50,478	50,476
Junior Subordinated Notes [Member]
Principal amount	66,253	87,351
Discount	(56)	(74)
Total junior subordinated debentures due in 2033	$ 66,197	$ 87,277

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Note 3 - Securities (Detail) - Securities Portfolio (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011
Fair Value	$ 1,183,975		$ 1,013,006
Municipal securities	56,319		60,458
Municipal securities	3,045		1,019
Municipal securities	59,364		61,477
Trading Securities (1)	16,031	[1]	14,469	[1]
US Government Corporations and Agencies Securities [Member]
Amortized Cost	5,029		5,060
Gross Unrealized Losses	(18)		(25)
Fair Value	5,011		5,035
Collateralized Residential Mortgage Obligations [Member]
Amortized Cost	504,661		383,828
Gross Unrealized Gains	3,839		2,622
Gross Unrealized Losses	(954)		(2,346)
Fair Value	507,546		384,104
Other Residential Mortgage-Backed Securities [Member]
Amortized Cost	130,263		81,982
Gross Unrealized Gains	5,757		5,732
Gross Unrealized Losses	(19)		(23)
Fair Value	136,001		87,691
State and Municipal [Member]
Amortized Cost	462,985		464,282
Gross Unrealized Gains	25,297		26,155
Gross Unrealized Losses	(279)		(366)
Fair Value	488,003		490,071
Collateralized Debt Obligations [Member]
Amortized Cost	48,038		48,759
Gross Unrealized Losses	(34,353)		(35,365)
Fair Value	13,685		13,394
Corporate Debt [Member]
Amortized Cost	27,539		27,511
Gross Unrealized Gains	3,194		2,514
Gross Unrealized Losses			(11)
Fair Value	30,733		30,014
Hedge Fund Investment [Member]
Amortized Cost	1,231		1,231
Gross Unrealized Gains	705		385
Fair Value	1,936		1,616
Other Equity Securities [Member]
Amortized Cost	992		958
Gross Unrealized Gains	68		123
Fair Value	1,060		1,081
Total Equity Securities [Member]
Amortized Cost	2,223		2,189
Gross Unrealized Gains	773		508
Fair Value	2,996		2,697
Total [Member]
Amortized Cost	1,180,738		1,013,611
Gross Unrealized Gains	38,860		37,531
Gross Unrealized Losses	(35,623)		(38,136)
Fair Value	$ 1,183,975		$ 1,013,006

[1] Trading securities held by the Company represent diversified investment securities held in a grantor trust under deferred compensation arrangements in which plan participants may direct amounts earned to be invested in securities other than Company stock.

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Note 12 - Fair Value (Detail) - Recurring Fair Value Measurements (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011
Trading securities:
Total trading securities	$ 16,031	[1]	$ 14,469	[1]
Securities available-for-sale:
Total securities available-for-sale	1,183,975		1,013,006
Fair Value, Inputs, Level 1 [Member]
Trading securities:
Money market funds	1,209		1,565
Mutual funds	14,822		12,904
Total trading securities	16,031		14,469
Securities available-for-sale:
Other equity securities	42		41
Total securities available-for-sale	42		41
Mortgage servicing rights (1)		[2]		[2]
Derivative liabilities (2)		[3]		[3]
Fair Value, Inputs, Level 2 [Member]
Securities available-for-sale:
U.S. agency securities	5,011		5,035
CMOs	507,546		384,104
Other residential MBSs	136,001		87,691
Municipal securities	488,003		490,071
Corporate debt securities	30,733		30,014
Hedge fund investment	1,936		1,616
Other equity securities	1,018		1,040
Total securities available-for-sale	1,170,248		999,571
Mortgage servicing rights (1)		[2]		[2]
Derivative liabilities (2)	2,319	[3]	2,459	[3]
Fair Value, Inputs, Level 3 [Member]
Securities available-for-sale:
CDOs	13,685		13,394
Total securities available-for-sale	13,685		13,394
Mortgage servicing rights (1)	878	[2]	929	[2]
Derivative liabilities (2)		[3]		[3]

[1] Trading securities held by the Company represent diversified investment securities held in a grantor trust under deferred compensation arrangements in which plan participants may direct amounts earned to be invested in securities other than Company stock.

[2] Included in other assets in the Consolidated Statements of Financial Condition.

[3] Included in other liabilities in the Consolidated Statements of Financial Condition.

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Note 13 - Subsequent Events

3 Months Ended

Mar. 31, 2012

Schedule of Subsequent Events [Table Text Block]

13.  SUBSEQUENT EVENTS

The Company evaluated the impact of events that occurred subsequent to March 31, 2012 through the date its consolidated financial statements were issued. Based on the evaluation, management does not believe any subsequent events occurred that would require further disclosure or adjustment to the consolidated financial statements.

data included in this section and throughout the remainder of this discussion are presented on a diluted basis.

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Note 3 - Securities (Detail) - Remaining Contractual Maturity of Securities (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Available-for-Sale Securities - Fair Value	$ 1,183,975	$ 1,013,006
Held-to-Maturity Securities - Amortized Cost	56,319	60,458
Held-to-Maturity Securities - Fair Value	59,364	61,477
Amortized Cost [Member] | Collateralized Mortgage Obligation [Member]
Available-for-Sale Securities - Amortized Cost	504,661
Amortized Cost [Member] | Other Residential Mortgage-Backed Securities [Member]
Available-for-Sale Securities - Amortized Cost	130,263
Amortized Cost [Member] | Total Equity Securities [Member]
Available-for-Sale Securities - Amortized Cost	2,223
Amortized Cost [Member]
One year or less	14,286
One year to five years	345,276
Five years to ten years	102,598
After ten years	81,431
Available-for-Sale Securities - Amortized Cost	1,180,738
Fair Value [Member] | Collateralized Mortgage Obligation [Member]
Available-for-Sale Securities - Fair Value	507,546
Fair Value [Member] | Other Residential Mortgage-Backed Securities [Member]
Available-for-Sale Securities - Fair Value	136,001
Fair Value [Member] | Total Equity Securities [Member]
Available-for-Sale Securities - Fair Value	2,996
Fair Value [Member]
One year or less	14,124
One year to five years	341,364
Five years to ten years	101,436
After ten years	80,508
Available-for-Sale Securities - Fair Value	1,183,975
Amortized Cost [Member]
One year or less	10,495
One year to five years	18,603
Five years to ten years	10,366
After ten years	16,855
Held-to-Maturity Securities - Amortized Cost	56,319
Fair Value [Member]
One year or less	11,063
One year to five years	19,609
Five years to ten years	10,927
After ten years	17,765
Held-to-Maturity Securities - Fair Value	$ 59,364

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Note 3 - Securities (Tables)

3 Months Ended

15 Months Ended

Mar. 31, 2012

Mar. 31, 2012

Securities Portfolio [Table Text Block]

	March 31, 2012												December 31, 2011
	Amortized		Gross Unrealized							Fair			Amortized			Gross Unrealized							Fair
	Cost		Gains			Losses				Value			Cost			Gains			Losses				Value
Securities Available-for-Sale
U.S. agency securities	$	5,029		$	-		$	(18	)		$	5,011		$	5,060		$	-		$	(25	)		$	5,035
Collateralized residential mortgage obligations (“CMOs”)		504,661			3,839			(954	)			507,546			383,828			2,622			(2,346	)			384,104
Other residential mortgage-backed securities (“MBSs”)		130,263			5,757			(19	)			136,001			81,982			5,732			(23	)			87,691
Municipal securities		462,985			25,297			(279	)			488,003			464,282			26,155			(366	)			490,071
Collateralized debt obligations (“CDOs”)		48,038			-			(34,353	)			13,685			48,759			-			(35,365	)			13,394
Corporate debt securities		27,539			3,194			-				30,733			27,511			2,514			(11	)			30,014
Equity securities:
Hedge fund investment		1,231			705			-				1,936			1,231			385			-				1,616
Other equity securities		992			68			-				1,060			958			123			-				1,081
Total equity securities		2,223			773			-				2,996			2,189			508			-				2,697
Total	$	1,180,738		$	38,860		$	(35,623	)		$	1,183,975		$	1,013,611		$	37,531		$	(38,136	)		$	1,013,006
Securities Held-to-Maturity
Municipal securities	$	56,319		$	3,045		$	-			$	59,364		$	60,458		$	1,019		$	-			$	61,477
Trading Securities (1)											$	16,031												$	14,469

Investments Classified by Contractual Maturity Date [Table Text Block]

	March 31, 2012
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	14,286	$	14,124	$	10,495	$	11,063
One year to five years		345,276		341,364		18,603		19,609
Five years to ten years		102,598		101,436		10,366		10,927
After ten years		81,431		80,508		16,855		17,765
CMOs		504,661		507,546		-		-
Other residential MBSs		130,263		136,001		-		-
Equity securities		2,223		2,996		-		-
Total	$	1,180,738	$	1,183,975	$	56,319	$	59,364

Realized Gain (Loss) on Investments [Table Text Block]

	Quarters Ended March 31,
	2012			2011
Proceeds from sales	$	2,662		$	44,212
Gains (losses) on sales of securities:
Gross realized gains	$	47		$	808
Gross realized losses		(253	)		(268	)
Net realized (losses) gains on securities sales		(206	)		540
Non-cash impairment charges:
Other-than-temporary securities impairment (“OTTI”)		(737	)		-
Portion of other-than-temporary impairment recognized in other comprehensive income		-			-
Net non-cash impairment charges		(737	)		-
Net realized (losses) gains	$	(943	)	$	540
Income tax (benefit) expense on net realized (losses) gains	$	(386	)	$	221
Net trading gains (1)	$	1,401		$	744

Credit Related CDO Impairment Losses [Table Text Block]

	Quarters Ended March 31,
Number	2012		2011		Life-to-Date
1	$	-	$	-	$	10,360
2		642		-		8,510
3		79		-		1,649
4		-		-		1,078
5		-		-		8,570
6		-		-		243
7		-		-		6,750
	$	721	$	-	$	37,160

Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block]

	Quarters Ended March 31,
	2012		2011
Cumulative amount recognized at beginning of period	$	36,525	$	35,756
Credit losses included in earnings (1):
Losses recognized on securities that previously had credit losses		737		-
Losses recognized on securities that did not previously have credit losses		-		-
Cumulative amount recognized at end of period	$	37,262	$	35,756

Unrealized Gain (Loss) on Investments [Table Text Block]

			Less Than 12 Months				12 Months or Longer				Total
	Number of Securities		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
As of March 31, 2012
U.S. agency security		2	$	-	$	-	$	5,011	$	18	$	5,011	$	18
CMOs		26		132,978		589		11,338		365		144,316		954
Other residential mortgage-backed securities		4		612		1		263		18		875		19
Municipal securities		17		1,671		33		6,748		246		8,419		279
CDOs		6		-		-		13,685		34,353		13,685		34,353
Total		55	$	135,261	$	623	$	37,045	$	35,000	$	172,306	$	35,623
As of December 31, 2011
U.S. agency securities		2	$	-	$	-	$	5,035	$	25	$	5,035	$	25
CMOs		30		163,819		1,818		12,628		528		176,447		2,346
Other residential mortgage-backed securities		4		182		17		1,072		6		1,254		23
Municipal securities		19		934		2		7,857		364		8,791		366
CDOs		6		-		-		13,394		35,365		13,394		35,365
Corporate debt securities		1		2,157		11		-		-		2,157		11
Total		62	$	167,092	$	1,848	$	39,986	$	36,288	$	207,078	$	38,136

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Note 12 - Fair Value (Detail) - Non-Recurring Fair Value Measurements (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011
Fair Value, Inputs, Level 1 [Member]
OREO (1)		[1]		[1]
Loans held-for-sale (2)		[2]		[2]
Assets held-for-sale (3)		[3]		[3]
Fair Value, Inputs, Level 2 [Member]
OREO (1)		[1]		[1]
Loans held-for-sale (2)		[2]		[2]
Assets held-for-sale (3)		[3]		[3]
Fair Value, Inputs, Level 3 [Member]
Collateral-dependent impaired loans	120,190		96,220
OREO (1)	52,266	[1]	57,430	[1]
Loans held-for-sale (2)	1,500	[2]	4,200	[2]
Assets held-for-sale (3)	$ 7,933	[3]	$ 7,933	[3]

[1] Included in covered OREO.

[2] Included in other assets in the Consolidated Statements of Financial Condition.

[3] Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition.

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Consolidated Statements Of Changes In Stockholders’ Equity (USD $) In Thousands, except Share data	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Total
Balance Beginning at Dec. 31, 2010	$ 858	$ 190,882	$ 437,550	$ 787,678	$ (27,739)	$ (277,184)	$ 1,112,045
Balance Beginning (in Shares) at Dec. 31, 2010	74,096
Total comprehensive income				10,044	3,366		13,410
Common dividends declared per common share				(746)			(746)
Preferred dividends declared ($12.50 per preferred share)				(2,413)			(2,413)
Accretion on preferred stock		168		(168)			168
Share-based compensation expense			1,625				1,625
Restricted stock activity			(16,760)			16,552	(208)
Restricted stock activity (in Shares)	449
Treasury stock (purchased for) issued to benefit plans			(10)			(1)	(11)
Treasury stock (purchased for) issued to benefit plans (in Shares)	(2)
Balance Ending at Mar. 31, 2011	858	191,050	422,405	794,395	(24,373)	(260,633)	1,123,702
Balance Ending (in Shares) at Mar. 31, 2011	74,543
Balance Beginning at Dec. 31, 2011	858		428,001	810,487	(13,276)	(263,483)	962,587
Balance Beginning (in Shares) at Dec. 31, 2011	74,435						74,435,000
Total comprehensive income				7,892	2,357		10,249
Common dividends declared per common share				(749)			(749)
Share-based compensation expense			1,533				1,533
Restricted stock activity			(15,777)			14,853	(924)
Restricted stock activity (in Shares)	464
Treasury stock (purchased for) issued to benefit plans			(15)			20	5
Treasury stock (purchased for) issued to benefit plans (in Shares)	(1)
Balance Ending at Mar. 31, 2012	$ 858		$ 413,742	$ 817,630	$ (10,919)	$ (248,610)	$ 972,701
Balance Ending (in Shares) at Mar. 31, 2012	74,898						74,898,000

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Consolidated Statements of Financial Condition (Parentheticals) (USD $) In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Preferred stock, par value (in Dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	1,000	1,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	85,787	85,787
Common stock, shares outstanding	74,898	74,435
Treasury stock, shares	10,889	11,352

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Note 8 - Earnings Per Common Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Text Block]

8. EARNINGS PER COMMON SHARE

Basic and Diluted Earnings per Common Share

(Amounts in thousands, except per share data)

	Quarters Ended March 31,
	2012			2011
Net income	$	7,892		$	10,044
Preferred dividends		-			(2,413	)
Accretion on preferred stock		-			(168	)
Net income applicable to non-vested restricted shares		(139	)		(137	)
Net income applicable to common shares	$	7,753		$	7,326
Weighted-average common shares outstanding:
Weighted-average common shares outstanding (basic)		73,505			73,151
Dilutive effect of common stock equivalents		-			-
Weighted-average diluted common shares outstanding		73,505			73,151
Basic earnings per share	$	0.11		$	0.10
Diluted earnings per share	$	0.11		$	0.10
Anti-dilutive shares not included in the computation of diluted earnings per share (1)		1,863			3,733

(1) Represents outstanding stock options (and a common stock warrant for the 2011 period) for which the exercise price is greater than the average market price of the Company’s common stock.

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Document And Entity Information (USD $)	3 Months Ended
	Mar. 31, 2012	May 10, 2012	Jun. 30, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	FIRST MIDWEST BANCORP INC
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		74,900,893
Entity Public Float			$ 849,084,552
Amendment Flag	false
Entity Central Index Key	0000702325
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Mar. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1

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Note 9 - Income Taxes

3 Months Ended

Mar. 31, 2012

Income Tax Disclosure [Text Block]

9.  INCOME TAXES

Income Tax Expense (Benefit)

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012			2011
Income before income tax expense (benefit)	$	9,048		$	9,953
Income tax expense (benefit):
Federal income tax expense	$	845		$	910
State income tax expense (benefit)		311			(1,001	)
Total income tax expense (benefit)	$	1,156		$	(91	)
Effective income tax rate		12.8	%		(0.9	%)

Federal income tax expense and the related effective income tax rate are primarily influenced by the amount of tax-exempt income derived from investment securities and bank-owned life insurance in relation to pre-tax income and state income taxes. State income tax expense (benefit) and the related effective tax rate are influenced by the amount of state tax-exempt income in relation to pre-tax income and state tax rules relating to consolidated/combined reporting and sourcing of income and expense.

Income tax expense for first quarter 2012 was $1.2 million compared to an income tax benefit of $91,000 for first quarter 2011. This increase was due primarily to a $1.6 million state income tax benefit recorded in first quarter 2011 related to an increase in deferred tax assets resulting from an increase in the Illinois corporate tax rate from 7.3% to 9.5% effective January 1, 2011.

Our accounting policies underlying the recognition of income taxes in the Consolidated Statements of Financial Condition and Income are included in Notes 1 and 14 to the Consolidated Financial Statements of our 2011 10-K.

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Condensed Consolidated Statements of Income (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Interest Income
Loans	$ 61,491,000		$ 62,917,000
Investment securities	8,934,000		9,865,000
Covered loans	4,202,000		7,822,000
Federal funds sold and other short-term investments	641,000		679,000
Total interest income	75,268,000		81,283,000
Interest Expense
Deposits	5,513,000		7,671,000
Borrowed funds	515,000		680,000
Senior and subordinated debt	4,058,000		2,286,000
Total interest expense	10,086,000		10,637,000
Net interest income	65,182,000		70,646,000
Provision for loan losses	18,210,000		19,492,000
Net interest income after provision for loan losses	46,972,000		51,154,000
Noninterest Income
Service charges on deposit accounts	8,660,000		8,144,000
Wealth management fees	5,392,000		5,053,000
Other service charges, commissions, and fees	3,520,000		3,977,000
Card-based fees	5,020,000		4,529,000
Total fee-based revenues	22,592,000		21,703,000
Net securities (losses) gains (reclassified from other comprehensive income)	(943,000)		540,000
Net trading gains	1,401,000	[1]	744,000	[1]
Other	1,639,000		1,230,000
Total noninterest income	24,689,000		24,217,000
Noninterest Expense
Salaries and wages	27,257,000		25,665,000
Retirement and other employee benefits	6,793,000		7,153,000
Net OREO expense	1,864,000		3,931,000
Net occupancy and equipment expense	8,331,000		9,103,000
Technology and related costs	2,858,000		2,623,000
Professional services	5,629,000		5,119,000
FDIC premiums	1,719,000		2,725,000
Other expenses	8,162,000		9,099,000
Total noninterest expense	62,613,000		65,418,000
Income before income tax expense (benefit)	9,048,000		9,953,000
Income tax expense (benefit)	1,156,000		(91,000)
Net income	7,892,000		10,044,000
Preferred dividends and accretion on preferred stock			(2,581,000)
Net income applicable to non-vested restricted shares	(139,000)		(137,000)
Net income applicable to common shares	$ 7,753,000		$ 7,326,000
Per Common Share Data
Basic earnings per common share (in Dollars per share)	$ 0.11		$ 0.10
Diluted earnings per common share (in Dollars per share)	$ 0.11		$ 0.10
Dividends declared per common share (in Dollars per share)	$ 0.01		$ 0.01
Weighted-average common shares outstanding (in Shares)	73,505		73,151
Weighted-average diluted common shares outstanding (in Shares)	73,505		73,151

[1] All trading (losses) gains, net relate to trading securities still held as of March 31, 2012 and March 31, 2011.

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Note 3 - Securities

3 Months Ended

Mar. 31, 2012

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

3.  SECURITIES

Securities available-for-sale are carried at fair value with unrealized gains and losses, net of related deferred income taxes, recorded in stockholders’ equity as a separate component of accumulated other comprehensive loss. Securities classified as held-to-maturity are securities that management has the positive intent and ability to hold to maturity and are stated at cost. Trading securities are reported at fair value. Net trading gains represent changes in the fair value of the trading securities portfolio and are included as a separate component of other noninterest income in the Condensed Consolidated Statements of Income.

Securities Portfolio

(Dollar amounts in thousands)

	March 31, 2012												December 31, 2011
	Amortized		Gross Unrealized							Fair			Amortized			Gross Unrealized							Fair
	Cost		Gains			Losses				Value			Cost			Gains			Losses				Value
Securities Available-for-Sale
U.S. agency securities	$	5,029		$	-		$	(18	)		$	5,011		$	5,060		$	-		$	(25	)		$	5,035
Collateralized residential mortgage obligations (“CMOs”)		504,661			3,839			(954	)			507,546			383,828			2,622			(2,346	)			384,104
Other residential mortgage-backed securities (“MBSs”)		130,263			5,757			(19	)			136,001			81,982			5,732			(23	)			87,691
Municipal securities		462,985			25,297			(279	)			488,003			464,282			26,155			(366	)			490,071
Collateralized debt obligations (“CDOs”)		48,038			-			(34,353	)			13,685			48,759			-			(35,365	)			13,394
Corporate debt securities		27,539			3,194			-				30,733			27,511			2,514			(11	)			30,014
Equity securities:
Hedge fund investment		1,231			705			-				1,936			1,231			385			-				1,616
Other equity securities		992			68			-				1,060			958			123			-				1,081
Total equity securities		2,223			773			-				2,996			2,189			508			-				2,697
Total	$	1,180,738		$	38,860		$	(35,623	)		$	1,183,975		$	1,013,611		$	37,531		$	(38,136	)		$	1,013,006
Securities Held-to-Maturity
Municipal securities	$	56,319		$	3,045		$	-			$	59,364		$	60,458		$	1,019		$	-			$	61,477
Trading Securities (1)											$	16,031												$	14,469

(1) Trading securities held by the Company represent diversified investment securities held in a grantor trust under deferred compensation arrangements in which plan participants may direct amounts earned to be invested in securities other than Company stock.

Remaining Contractual Maturity of Securities

(Dollar amounts in thousands)

	March 31, 2012
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	14,286	$	14,124	$	10,495	$	11,063
One year to five years		345,276		341,364		18,603		19,609
Five years to ten years		102,598		101,436		10,366		10,927
After ten years		81,431		80,508		16,855		17,765
CMOs		504,661		507,546		-		-
Other residential MBSs		130,263		136,001		-		-
Equity securities		2,223		2,996		-		-
Total	$	1,180,738	$	1,183,975	$	56,319	$	59,364

The carrying value of securities available-for-sale that were pledged to secure deposits and for other purposes as permitted or required by law totaled $491.4 million at March 31, 2012 and $592.7 million at December 31, 2011. No securities held-to-maturity were pledged as of March 31, 2012 or December 31, 2011.

Purchases and sales of securities are recognized on a trade date basis. Realized securities gains or losses are reported in net securities gains in the Condensed Consolidated Statements of Income. The cost of securities sold is recorded using the specific identification method.

Securities Gains (Losses)

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012			2011
Proceeds from sales	$	2,662		$	44,212
Gains (losses) on sales of securities:
Gross realized gains	$	47		$	808
Gross realized losses		(253	)		(268	)
Net realized (losses) gains on securities sales		(206	)		540
Non-cash impairment charges:
Other-than-temporary securities impairment (“OTTI”)		(737	)		-
Portion of other-than-temporary impairment recognized in other comprehensive income		-			-
Net non-cash impairment charges		(737	)		-
Net realized (losses) gains	$	(943	)	$	540
Income tax (benefit) expense on net realized (losses) gains	$	(386	)	$	221
Net trading gains (1)	$	1,401		$	744

(1) All net trading gains relate to trading securities still held as of March 31, 2012 and March 31, 2011.

The non-cash impairment charges in the table above primarily relate to OTTI charges on CDOs. Accounting guidance requires that only the credit portion of an OTTI charge be recognized through income. In deriving the credit component of the impairment on the CDOs, projected cash flows were discounted at the contractual rate ranging from the London Interbank Offered Rate (“LIBOR”) plus 125 basis points to LIBOR plus 160 basis points. Fair values are computed by discounting future projected cash flows at higher rates, ranging from LIBOR plus 1,300 basis points to LIBOR plus 1,400 basis points. The higher rates are used to account for other market factors, such as liquidity. If a decline in fair value below carrying value is not attributable to credit loss and the Company does not intend to sell the security or believe it would not be more likely than not required to sell the security prior to recovery, the Company records the decline in fair value in other comprehensive income.

Credit-Related CDO Impairment Losses

(Dollar amounts in thousands)

	Quarters Ended March 31,
Number	2012		2011		Life-to-Date
1	$	-	$	-	$	10,360
2		642		-		8,510
3		79		-		1,649
4		-		-		1,078
5		-		-		8,570
6		-		-		243
7		-		-		6,750
	$	721	$	-	$	37,160

Changes in the amount of credit losses recognized in earnings on CDOs and other securitiesare summarized in the following table.

Changes in Credit Losses Recognized in Earnings

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012		2011
Cumulative amount recognized at beginning of period	$	36,525	$	35,756
Credit losses included in earnings (1):
Losses recognized on securities that previously had credit losses		737		-
Losses recognized on securities that did not previously have credit losses		-		-
Cumulative amount recognized at end of period	$	37,262	$	35,756

(1) Included in net securities (losses) gains in the Condensed Consolidated Statements of Income.

The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of March 31, 2012 and December 31, 2011.

Securities in an Unrealized Loss Position

(Dollar amounts in thousands)

			Less Than 12 Months				12 Months or Longer				Total
	Number of Securities		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
As of March 31, 2012
U.S. agency security		2	$	-	$	-	$	5,011	$	18	$	5,011	$	18
CMOs		26		132,978		589		11,338		365		144,316		954
Other residential mortgage-backed securities		4		612		1		263		18		875		19
Municipal securities		17		1,671		33		6,748		246		8,419		279
CDOs		6		-		-		13,685		34,353		13,685		34,353
Total		55	$	135,261	$	623	$	37,045	$	35,000	$	172,306	$	35,623
As of December 31, 2011
U.S. agency securities		2	$	-	$	-	$	5,035	$	25	$	5,035	$	25
CMOs		30		163,819		1,818		12,628		528		176,447		2,346
Other residential mortgage-backed securities		4		182		17		1,072		6		1,254		23
Municipal securities		19		934		2		7,857		364		8,791		366
CDOs		6		-		-		13,394		35,365		13,394		35,365
Corporate debt securities		1		2,157		11		-		-		2,157		11
Total		62	$	167,092	$	1,848	$	39,986	$	36,288	$	207,078	$	38,136

Approximately 99% of the Company’s CMOs and other MBSs are either backed by U.S. government-owned agencies or issued by U.S. government-sponsored enterprises. Municipal securities are issued by municipal authorities, and the majority is supported by third-party insurance or some other form of credit enhancement. Management does not believe any individual unrealized loss as of March 31, 2012 represents an OTTI. The unrealized losses associated with these securities are not believed to be attributed to credit quality, but rather to changes in interest rates and temporary market movements. In addition, the Company does not intend to sell the securities with unrealized losses, and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

The unrealized losses on CDOs as of March 31, 2012 reflect the market’s unfavorable view of structured investment vehicles given the current interest rate and liquidity environment. Management does not believe the unrealized losses on the CDOs represent OTTI related to credit deterioration. In addition, the Company does not intend to sell the CDOs with unrealized losses, and the Company does not believe it is more likely than not that it will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

Significant judgment is required to calculate the fair value of the CDOs, all of which are pooled. Generally, fair value determinations are based on several factors regarding current market and economic conditions related to these securities and the underlying collateral. For these reasons and due to the illiquidity in the secondary market for the CDOs, the Company estimates the fair value of these securities using discounted cash flow analyses with the assistance of a structured credit valuation firm. For additional discussion of the CDO valuation methodology, refer to Note 12, “Fair Value.”

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Note 2 - Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2012

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

2.  RECENT ACCOUNTING PRONOUNCEMENTS

Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRS”): In April 2011, the Financial Accounting Standards Board (“FASB”) issued guidance that clarifies the wording used to describe many of the requirements in GAAP for measuring fair value to be consistent with IFRS. In addition, the guidance expands certain disclosure requirements relating to fair value measurements. Specifically, the new guidance requires (i) quantitative information on significant unobservable inputs, (ii) a description of a Company’s valuation processes, (iii) a narrative description of the sensitivity of recurring Level 3 measurements to unobservable inputs, and (iv) the fair value hierarchy level of assets and liabilities that are not carried at fair value but are required to be disclosed at fair value in the footnotes. This guidance is applied prospectively for interim and annual periods beginning after December 15, 2011. The adoption of this guidance on January 1, 2012 did not impact the Company’s financial condition, results of operations, or liquidity.

Reconsideration of Effective Control for Repurchase Agreements: In April 2011, the FASB issued guidance that amends the accounting for repurchase agreements and other similar agreements that both entitle and obligate a transferor to redeem financial assets before maturity. The guidance modifies the criteria for determining when these transactions would be recorded as financing agreements as opposed to purchase or sale agreements with a commitment to resell. This guidance is applied prospectively for interim and annual periods beginning after December 15, 2011. The adoption of this guidance on January 1, 2012 did not impact the Company’s financial condition, results of operations, or liquidity.

Testing Goodwill for Impairment: In September 2011, the FASB issued new guidance that gives an entity the option to first assess qualitative factors to determine whether the two-step impairment test is necessary. If, after assessing those factors, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is not necessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step impairment test. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of this guidance on January 1, 2012 did not have a material impact on the Company’s financial condition, results of operation, or liquidity.

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Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2012
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation - The accompanying unaudited condensed consolidated interim financial statements of First Midwest Bancorp, Inc. (the "Company"), a Delaware corporation, were prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for quarterly reports on Form 10-Q. The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles ("GAAP") and general practice within the banking industry. The accompanying statements do not include certain information and footnote disclosures required by GAAP for complete annual financial statements. Accordingly, these financial statements should be read in conjunction with the Company's 2011 Annual Report on Form 10-K ("2011 10-K"). The accompanying unaudited condensed consolidated interim financial statements were prepared in accordance with GAAP and reflect all adjustments that management deems necessary for the fair presentation of the financial position and results of operations for the periods presented. All such adjustments are of a normal recurring nature. The results of operations for the quarter ended March 31, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. The Company uses the accrual basis of accounting for financial reporting purposes. Certain reclassifications were made to prior year amounts to conform to the current year presentation. First quarter 2011 results were restated in the Condensed Consolidated Statements of Income to correct a 2011 actuarial pension expense calculation related to the valuation of future early retirement benefits. First quarter 2011 pension expense was increased by $295,000 and income tax expense was reduced by $121,000. The net effect was a reduction to income of $174,000, which had no impact on earnings per common share for first quarter 2011. In addition, there was a corresponding $174,000 reduction to retained earnings in the Consolidated Statements of Changes in Stockholders' Equity.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates - The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates.
Consolidation, Policy [Policy Text Block]	Principles of Consolidation - The accompanying consolidated financial statements include the accounts and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements. The Company owns an interest in certain variable interest entities ("VIEs") as described in Note 22, "Variable Interest Entities," contained in the Company's 2011 10-K. A VIE is a partnership, limited liability company, trust, or other legal entity that (i) does not have sufficient equity to finance its activities without additional subordinated financial support from other parties or (ii) has investors that lack certain characteristics associated with owning a controlling financial interest. The VIEs are not consolidated in the Company's financial statements since the Company is not the primary beneficiary of any of the VIEs. The accounting policies related to loans,the allowance for credit losses, and comprehensive income are presented below. For a summary of all other significant accounting policies, please refer to Note 1, "Summary of Significant Accounting Policies," contained in the Company's 2011 10-K.
Loans and Leases Receivable, Valuation, Policy [Policy Text Block]	Loans - Loans are carried at the principal amount outstanding, including certain net deferred loan origination fees. Loans held-for-sale are carried at the lower of aggregate cost or fair value and are included in other assets in the Consolidated Statements of Financial Condition. Interest income on loans is accrued based on principal amounts outstanding. Loan and lease origination fees, commitment fees, and certain direct loan origination costs are deferred, and the net amount is amortized over the estimated life of the related loans or commitments as a yield adjustment. Fees related to standby letters of credit, whose ultimate exercise is remote, are amortized into fee income over the estimated life of the commitment. Other credit-related fees are recognized as fee income when earned.
Certain Loans and Debt Securities Acquired in Transfer, Recognizing Interest Income on Impaired Loans, Policy [Policy Text Block]	Purchased Impaired Loans - Purchased impaired loans are recorded at their estimated fair values on the respective purchase dates and are accounted for prospectively based on expected cash flows. No allowance for credit losses is recorded on these loans at the acquisition date. In determining the acquisition date fair value of purchased impaired loans and in subsequent period s , the Company generally aggregates purchased consumer loans and certain smaller balance commercial loans into pools of loans with common risk characteristics, such as delinquency status, credit score, and internal risk rating. Larger balance commercial loans are usually accounted for on an individual basis. Expected future cash flows in excess of the fair value of loans at the purchase date ("accretable yield") are recorded as interest income over the life of the loans if the timing and amount of the future cash flows can be reasonably estimated. The non-accretable yield represents estimated losses in the portfolio and is equal to the difference between contractually required payments and the cash flows expected to be collected at acquisition. Subsequent to the purchase date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. The present value of any decreases in expected cash flows after the purchase date is recognized by recording a charge-off through the allowance for loan losses.
Loans and Leases Receivable, Nonaccrual Loan and Lease Status, Policy [Policy Text Block]	Non-accrual loans - Generally, commercial loans and loans secured by real estate are placed on non-accrual status (i) when either principal or interest payments become 90 days or more past due based on contractual terms unless the loan is sufficiently collateralized such that full repayment of both principal and interest is expected and is in the process of collection within a reasonable period or (ii) when an individual analysis of a borrower's creditworthiness indicates a credit should be placed on non-accrual status whether or not the loan is 90 days or more past due. When a loan is placed on non-accrual status, unpaid interest credited to income in the current year is reversed, and unpaid interest accrued in prior years is charged against the allowance for loan losses. After the loan is placed on non-accrual, all debt service payments are applied to the principal on the loan. Future interest income may only be recorded on a cash basis after recovery of principal is reasonably assured. Non-accrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate there is no longer doubt that the Company will collect all principal and interest due. Commercial loans and loans secured by real estate are generally charged-off when deemed uncollectible. A loss is recorded at that time if the net realizable value can be quantified and it is less than the associated principal and interest outstanding. Consumer loans that are not secured by real estate are subject to mandatory charge-off at a specified delinquency date and are usually not classified as non-accrual prior to being charged-off. Closed-end consumer loans, which include installment, automobile, and single payment loans, are generally charged-off in full no later than the end of the month in which the loan becomes 120 days past due. Generally, purchased impaired loans are considered accruing loans unless reasonable estimates of the timing and amount of future cash flows cannot be determined. Loans without reasonable cash flow estimates areclassified as non-accrual loans and interest income will not be recognized until the timing and amount of the future cash flows can be reasonably determined.
Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block]	Troubled Debt Restructurings ("TDRs") - A restructuring of debt is considered a TDR when the creditor, for economic or legal reasons related to the borrower's financial difficulties, grants a concession , such as forgiveness of principal , reduction of the interest rate, or extension of the maturity, that it would not otherwise consider . Loans are not classified as TDRs when the modification is short-term or results in only an insignificant delay or shortfall in the payments to be received. The Company's TDRs are determined on a case-by-case basis in connection with ongoing loan collection processes. The Company does not accrue interest on any TDRs unless it believes collection of all principal and interest under the modified terms is reasonably assured. For a TDR to begin accruing interest, the borrower must demonstrate both some level of past performance and the capacity to perform under the modified terms. Generally, six months of consecutive payment performance by the borrower under the restructured terms is required before a TDR is returned to accrual status. However, the period could vary depending on the individual facts and circumstances of the loan. An evaluation of the borrower's current creditworthiness is used to assess whether the borrower has the capacity to repay the loan under the modified terms. This evaluation includes an estimate of expected cash flows, evidence of strong financial position, and estimates of the value of collateral, if applicable. However, in accordance with industry regulation, these restructured loans continue to be separately reported as restructured until after the calendar year in which the restructuring occurred if the loan was restructured at reasonable market rates and terms.
Impaired Financing Receivable, Policy [Policy Text Block]	Impaired Loans - Impaired loans consist of corporate non-accrual loans and TDRs. With the exception of loans that were restructured and are still accruing interest, a loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest due according to the terms of the loan agreement based on current information and events. Loans deemed to be impaired are classified as non-accrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and installment loans. When a loan is designated as impaired, any subsequent principal and interest payments received are applied to the principal on the loan. Future interest income may only be recorded on a cash basis after recovery of principal is reasonably assured. Certain impaired loans with balances under a specified threshold are not individually evaluated for impairment. For all other impaired loans, impairment is measured by comparing the estimated value of the loan to the recorded book value. The value of the loan is measured based on the present value of expected future cash flows discounted at the loan's initial effective interest rate or the fair value of the underlying collateral , less costs to sell , if repayment of the loan is collateral-dependent. All impaired loans are included in non-performing assets. Purchased impaired loans are not reported as impaired loans provided that estimates of the timing and amount of future cash flows can be reasonably determined.
Loans and Leases Receivable, Past Due Status, Policy [Policy Text Block]	90- Days Past Due Loans - 90-days or more past due loans are loans with principal or interest paymentsthree months or more past due, but that still accrue interest. The Company continues to accrue interest if it determines these loans are sufficiently collateralized and in the process of collection within a reasonable time period.
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]	Allowance for Credit Losses -The allowance for credit losses is comprised of the allowance for loan losses and the reserve for unfunded commitments and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the allowance for credit losses is inherently subjective since it requires significant estimates and management judgment, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on a migration analysis that uses historical loss experience, consideration of current economic trends, and other factors. Credit exposures deemed to be uncollectible are charged-off against the allowance for loan losses, while recoveries of amounts previously charged-off are credited to the allowance for loan losses. Additions to the allowance for loan losses are established through the provision for loan losses charged to expense. The amount charged to operating expense depends on a number of factors, including historic loan growth, changes in the composition of the loan portfolio, net charge-off levels, and the Company's assessment of the allowance for loan losses based on the methodology discussed below. The allowance for loan losses consists of (i) specific reserves established for probable losses on individual loans for which the recorded investment in the loan exceeds the value of the loan, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) the impact of other internal and external qualitative factors. The specific reserves component of the allowance for loan losses is based on a periodic analysis of impaired loans exceeding a fixed dollar amount where the internal credit rating is at or below a predetermined classification and other loans that management believes are subject to a higher risk of loss, regardless of internal credit rating. The value of the loan is measured based on the present value of expected future cash flows discounted at the loan's initial effective interest rate or the fair value of the underlying collateral, less costs to sell, if repayment of the loan is collateral-dependent. If the resulting amount is less than the recorded book value, the Company either establishes a valuation allowance (i.e. a specific reserve) as a component of the allowance for loan losses or charges off the amount if it is a confirmed loss. For corporate loans, the component of the allowance for loan losses based on a loss migration analysis examines actual loss experience for a rolling 8-quarter period and the related internal risk rating and category of loans charged-off.The loss migration analysis is performed quarterly, and the loss factors are updated based on actual experience. The loss component derived from this migration analysis is then adjusted for management's estimate of losses inherent in the loan portfolio that have yet to be manifested in historical charge-off experience. Management takes into consideration many internal and external qualitative factors when estimating this adjustment, including: Changes in the composition of the loan portfolio, trends in the volume and terms of loans, and trends in delinquent and non-accrual loans that could indicate historical trends do not reflect current conditions; Changes in credit policies and procedures, such as underwriting standards and collection, charge-off, and recovery practices; Changes in the experience, ability, and depth of credit management and other relevant staff; Changes in the quality of the Company's loan review system and Board of Directors oversight; The existence and effect of any concentration of credit and changes in the level of concentrations, such as market, loan type, or risk rating; Changes in the value of the underlying collateral for collateral-dependent loans; Changes in the national and local economy that affect the collectability of various segments of the portfolio; and The effect of other external factors, such as competition and legal and regulatory requirements, on the level of estimated credit losses in the Company'sloan portfolio. The Company also maintains a reserve for unfunded commitments, including letters of credit, to provide for the risk of loss inherent in these arrangements. The reserve for unfunded commitments is computed based on a loss migration analysis similar to that used to determine the allowance for loan losses, taking into consideration probabilities of future funding requirements. The reserve for unfunded commitments is included in other liabilities in the Consolidated Statements of Financial Condition. The establishment of the allowance for credit losses involves a high degree of judgment and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance for credit losses is dependent upon a variety of factors beyond the Company's control, including the performance of its loan portfolio, the economy, changes in interest rates and property values, and the interpretation of loan risk classifications by regulatory authorities. While each component of the allowance for credit losses is determined separately, the entire balance is available for the entire loan portfolio.
Stockholders' Equity, Policy [Policy Text Block]	Comprehensive Income - Comprehensive income is the total of reported net income and other comprehensive income ("OCI"). OCI includes all other revenues, expenses, gains, and losses that are not reported in net income under GAAP. The Company includes the following items, net of tax, in other comprehensive income in the Consolidated Statements of Comprehensive Income: (i) changes in unrealized gains or losses on securities available-for-sale, (ii) changes in the fair value of derivatives designated under cash flow hedges (when applicable), and (iii) changes in unrecognized net pension costs related to the Company's pension plan.

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Note 10 - Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Text Block]

10.  DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

In the ordinary course of business, the Company enters into derivative transactions as part of its overall interest rate risk management strategy to minimize significant unplanned fluctuations in earnings and cash flows caused by interest rate volatility. The significant accounting policies related to derivative instruments and hedging activities are presented in Note 1, “Summary of Significant Accounting Policies,” contained in the Company’s 2011 10-K.

During the quarters ended March 31, 2012 and 2011, the Company hedged the fair value of fixed rate commercial real estate loans through the use of pay fixed, receive variable interest rate swaps. These derivative contracts were designated as fair value hedges and are valued using observable market prices, if available, or third party cash flow projection models. The fair values of the fair value hedges and the related amount of hedge ineffectiveness recognized were not material for any period presented.

The Company’s derivative portfolio also includes derivative instruments not designated in a hedge relationship consisting of commitments to originate 1-4 family mortgage loans and foreign exchange contracts. The fair value of these instruments was not material for any period presented. The Company had no other derivative instruments as of March 31, 2012 or December 31, 2011. The Company does not enter into derivative transactions for purely speculative purposes.

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Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans

3 Months Ended

Mar. 31, 2012

Allowance for Credit Losses [Text Block]

6.  PAST DUE LOANS, ALLOWANCE FOR CREDIT LOSSES, AND IMPAIRED LOANS

Past Due and Non-accrual Loans

The following table presents an aging analysis of the Company’s past due loans as of March 31, 2012 and December 31, 2011. The aging is determined without regard to accrual status. The table also presents non-performing loans, consisting of non-accrual loans (the majority of which are past due) and loans 90 days or more past due and still accruing interest, as of each balance sheet date.

Aging Analysis of Past Due Loans and Non-Performing Loans by Class

(Dollar amounts in thousands)

	Aging Analysis (Accruing and Non-accrual)										Non-performing Loans
	Current		30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total Loans		Non-accrual Loans		90 Days Past Due Loans, Still Accruing Interest
March 31, 2012
Commercial and industrial	$	1,439,402	$	22,899	$	34,665	$	57,564	$	1,496,966	$	55,158	$	3,525
Agricultural		236,818		159		709		868		237,686		882		393
Commercial real estate:
Office, retail, and industrial		1,329,162		20,045		17,692		37,737		1,366,899		34,831		901
Multi-family		291,061		1,362		8,933		10,295		301,356		9,615		-
Residential construction		77,531		1,768		20,469		22,237		99,768		21,104		-
Commercial construction		124,807		500		17,000		17,500		142,307		20,297		-
Other commercial real estate		793,385		12,842		22,778		35,620		829,005		43,137		963
Total commercial real estate		2,615,946		36,517		86,872		123,389		2,739,335		128,984		1,864
Total corporate loans		4,292,166		59,575		122,246		181,821		4,473,987		185,024		5,782
Home equity		394,424		2,723		9,220		11,943		406,367		8,851		1,596
1-4 family mortgages		211,398		875		5,456		6,331		217,729		5,648		264
Installment loans		38,858		333		54		387		39,245		22		32
Total consumer loans		644,680		3,931		14,730		18,661		663,341		14,521		1,892
Total loans, excluding covered loans		4,936,846		63,506		136,976		200,482		5,137,328		199,545		7,674
Covered loans		191,785		8,394		51,197		59,591		251,376		19,264		33,825
Total loans	$	5,128,631	$	71,900	$	188,173	$	260,073	$	5,388,704	$	218,809	$	41,499
December 31, 2011
Commercial and industrial	$	1,415,165	$	13,731	$	29,550	$	43,281	$	1,458,446	$	44,152	$	4,991
Agricultural		242,727		30		1,019		1,049		243,776		1,019		-
Commercial real estate:
Office, retail, and industrial		1,276,920		2,931		19,231		22,162		1,299,082		30,043		1,040
Multi-family		281,943		1,121		5,272		6,393		288,336		6,487		-
Residential construction		87,606		2,164		16,066		18,230		105,836		18,076		-
Commercial construction		129,310		320		15,279		15,599		144,909		23,347		-
Other commercial real estate		849,066		6,372		32,708		39,080		888,146		51,447		1,707
Total commercial real estate		2,624,845		12,908		88,556		101,464		2,726,309		129,400		2,747
Total corporate loans		4,282,737		26,669		119,125		145,794		4,428,531		174,571		7,738
Home equity		402,842		6,112		7,240		13,352		416,194		7,407		1,138
1-4 family mortgages		192,646		3,712		4,741		8,453		201,099		5,322		-
Installment loans		41,288		625		376		1,001		42,289		25		351
Total consumer loans		636,776		10,449		12,357		22,806		659,582		12,754		1,489
Total loans, excluding covered loans		4,919,513		37,118		131,482		168,600		5,088,113		187,325		9,227
Covered loans		195,289		7,853		57,360		65,213		260,502		19,879		43,347
Total loans	$	5,114,802	$	44,971	$	188,842	$	233,813	$	5,348,615	$	207,204	$	52,574

Allowance for Credit Losses

The Company maintains an allowance for credit losses at a level believed adequate by management to absorb probable losses inherent in the loan portfolio.

Allowance for Credit Losses

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012			2011
Balance at beginning of period	$	121,962		$	145,072
Loans charged-off		(22,686	)		(21,581	)
Recoveries of loans previously charged-off		1,278			2,020
Net loans charged-off		(21,408	)		(19,561	)
Provision for loan losses		18,210			19,492
Balance at end of period	$	118,764		$	145,003
Allowance for loan losses	$	116,264		$	142,503
Reserve for unfunded commitments		2,500			2,500
Total allowance for credit losses	$	118,764		$	145,003

Allowance for Credit Losses by Portfolio Segment

(Dollar amounts in thousands)

	Commercial, Industrial, and Agricultural			Office, Retail, and Industrial			Multi- Family			Residential Construction			Other Commercial Real Estate			Consumer			Covered Loans			Total Allowance
Quarter ended March 31, 2012
Balance at beginning of period	$	46,017		$	16,012		$	5,067		$	14,563		$	24,471		$	14,843		$	989		$	121,962
Loans charged-off		(8,190	)		(2,667	)		(140	)		(683	)		(8,354	)		(2,378	)		(274	)		(22,686	)
Recoveries of loans previously charged-off		716			2			131			220			7			202			-			1,278
Net loans charged-off		(7,474	)		(2,665	)		(9	)		(463	)		(8,347	)		(2,176	)		(274	)		(21,408	)
Provision for loan losses		6,172			4,209			24			163			6,325			1,039			278			18,210
Balance at end of period	$	44,715		$	17,556		$	5,082		$	14,263		$	22,449		$	13,706		$	993		$	118,764
Quarter ended March 31, 2011
Balance at beginning of period	$	49,545		$	20,758		$	3,996		$	27,933		$	29,869		$	12,971		$	-		$	145,072
Loans charged-off		(4,974	)		(1,199	)		(549	)		(5,422	)		(5,662	)		(2,671	)		(1,104	)		(21,581	)
Recoveries of loans previously charged-off		1,837			16			-			4			43			108			12			2,020
Net loans charged-off		(3,137	)		(1,183	)		( 549	)		(5,418	)		(5,619	)		(2,563	)		(1092	)		(19,561	)
Provision for loan losses		4,181			57			1,205			4,873			5,795			2,289			1,092			19,492
Balance at end of period	$	50,589		$	19,632		$	4,652		$	27,388		$	30,045		$	12,697		$	-		$	145,003

Impaired Loans

A portion of the Company’s allowance for credit losses is allocated to loans deemed impaired. Impaired loans consist of corporate non-accrual loans and TDRs. Smaller homogeneous loans, such as home equity, installment, and 1-4 family mortgages, are not individually assessed for impairment.

Impaired Loans

(Dollar amounts in thousands)

	March 31, 2012		December 31, 2011
Impaired loans individually evaluated for impairment:
Impaired loans with a related allowance for credit losses (1)	$	105,121	$	76,397
Impaired loans with no specific related allowance for credit losses (2)		65,413		83,090
Total impaired loans individually evaluated for impairment		170,534		159,487
Corporate non-accrual loans not individually evaluated for impairment (3)		14,490		15,084
Total corporate non-accrual loans		185,024		174,571
TDRs, still accruing interest		2,076		17,864
Total impaired loans	$	187,100	$	192,435
Valuation allowance related to impaired loans	$	23,103	$	26,095

(1)	These impaired loans require a valuation allowance because the present value of expected future cash flows or the estimated value of the related collateral less estimated selling costs is less than the recorded investment in the loans.
(2)	No specific allowance for credit losses is allocated to these loans since they are deemed to be sufficiently collateralized or had charge-offs.
(3)	These are loans with balances under a specified threshold.

The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment. Loans individually evaluated for impairment include corporate non-accrual loans with the exception of certain loans with balances under a specified threshold.

The present value of any decreases in expected cash flows of covered loans after the purchase date is recognized by recording a charge-off through the allowance for loan losses. Since most covered loans are accounted for as purchased impaired loans and the carrying values of those loans are periodically adjusted for any changes in expected future cash flows, they are not included in the calculation of the allowance for credit losses and are not displayed in this table except for open-end consumer loans.

Loans and Related Allowance for Credit Losses by Portfolio Segment

(Dollar amounts in thousands)

	Loans						Allowance For Credit Losses
	Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total		Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total
March 31, 2012
Commercial, industrial, and agricultural	$	49,075	$	1,685,577	$	1,734,652	$	14,975	$	29,740	$	44,715
Commercial real estate:
Office, retail, and industrial		32,813		1,334,086		1,366,899		1,447		16,109		17,556
Multi-family		8,551		292,805		301,356		-		5,082		5,082
Residential construction		20,024		79,744		99,768		3,110		11,153		14,263
Other commercial real estate		60,071		911,241		971,312		3,571		18,878		22,449
Total commercial real estate		121,459		2,617,876		2,739,335		8,128		51,222		59,350
Total corporate loans		170,534		4,303,453		4,473,987		23,103		80,962		104,065
Consumer		-		663,341		663,341		-		13,706		13,706
Total loans, excluding covered loans		170,534		4,966,794		5,137,328		23,103		94,668		117,771
Covered loans (1)		-		44,855		44,855		-		993		993
Total loans included in the calculation of the allowance for credit losses	$	170,534	$	5,011,649	$	5,182,183	$	23,103	$	95,661	$	118,764
December 31, 2011
Commercial, industrial, and agricultural	$	37,385	$	1,664,837	$	1,702,222	$	14,827	$	31,190	$	46,017
Commercial real estate:
Office, retail, and industrial		28,216		1,270,866		1,299,082		1,507		14,505		16,012
Multi-family		5,589		282,747		288,336		20		5,047		5,067
Residential construction		17,378		88,458		105,836		2,502		12,061		14,563
Other commercial real estate		70,919		962,136		1,033,055		7,239		17,232		24,471
Total commercial real estate		122,102		2,604,207		2,726,309		11,268		48,845		60,113
Total corporate loans		159,487		4,269,044		4,428,531		26,095		80,035		106,130
Consumer		-		659,582		659,582		-		14,843		14,843
Total loans, excluding covered loans		159,487		4,928,626		5,088,113		26,095		94,878		120,973
Covered loans (1)		-		45,451		45,451		-		989		989
Total loans included in the calculation of the allowance for credit losses	$	159,487	$	4,974,077	$	5,133,564	$	26,095	$	95,867	$	121,962

(1) These are open-end consumer loans that are not categorized as purchased impaired loans.

The following table presents loans individually evaluated for impairment by class of loan as of March 31, 2012 and December 31, 2011.

Impaired Loans Individually Evaluated by Class

(Dollar amounts in thousands)

	March 31, 2012								December 31, 2011
	Recorded Investment In								Recorded Investment In
	Loans with No Specific Related Allowance for Credit Losses		Loans with a Related Allowance for Credit Losses		Unpaid Principal Balance		Allowance for Credit Losses Allocated		Loans with No Specific Related Allowance for Credit Losses		Loans with a Related Allowance for Credit Losses		Unpaid Principal Balance		Allowance for Credit Losses Allocated
Commercial and industrial	$	13,364	$	35,154	$	71,648	$	14,975	$	10,801	$	26,028	$	58,591	$	14,827
Agricultural		557		-		557		-		556		-		556		-
Commercial real estate:
Office, retail, and industrial		7,635		25,178		42,873		1,447		11,897		16,319		33,785		1,507
Multi-family		8,551		-		14,087		-		5,072		517		11,265		20
Residential construction		8,666		11,358		35,110		3,110		9,718		7,660		33,124		2,502
Commercial construction		2,107		18,179		24,844		763		19,019		3,790		28,534		758
Other commercial real estate		24,533		15,252		65,333		2,808		26,027		22,083		70,868		6,481
Total commercial real estate		51,492		69,967		182,247		8,128		71,733		50,369		177,576		11,268
Total impaired loans individually evaluated for  impairment	$	65,413	$	105,121	$	254,452	$	23,103	$	83,090	$	76,397	$	236,723	$	26,095

	Quarter Ended March 31, 2012				Quarter Ended March 31, 2011
	Average Recorded Investment Balance		Interest Income Recognized (1)		Average Recorded Investment Balance		Interest Income Recognized (1)
Commercial and industrial	$	45,630	$	9	$	51,024	$	6
Agricultural		922		-		2,515		-
Commercial real estate:
Office, retail, and industrial		28,683		-		17,910		12
Multi-family		6,528		-		6,650		2
Residential construction		17,074		-		49,823		-
Commercial construction		22,755		-		25,391		-
Other commercial real estate		51,842		-		44,339		17
Total commercial real estate		126,882		-		144,113		31
Total impaired loans individually evaluated for impairment	$	173,434	$	9	$	197,652	$	37

(1) Recorded using the cash basis of accounting.

TDRs

Loan modifications are generally performed at the request of the individual borrower and may include reduction in interest rates, changes in payments, and maturity date extensions. A discussion of our accounting policies for TDRs is contained in Note 1 of “Notes to Consolidated Financial Statements” in Item 1 of this Form 10-Q.

TDRs by Class

(Dollar amounts in thousands)

	As of March 31, 2012						As of December 31, 2011
	Accruing (1)		Non-accrual (2)		Total		Accruing (1)		Non-accrual (2)		Total
Commercial and industrial	$	518	$	1,240	$	1,758	$	1,451	$	897	$	2,348
Agricultural		-		-		-		-		-		-
Commercial real estate:
Office, retail, and industrial		220		-		220		1,742		-		1,742
Multi-family		-		1,758		1,758		11,107		1,758		12,865
Residential construction		-		-		-		-		-		-
Commercial construction		-		14,006		14,006		-		14,006		14,006
Other commercial real estate		-		11,467		11,467		227		11,417		11,644
Total commercial real estate		220		27,231		27,451		13,076		27,181		40,257
Total corporate loans		738		28,471		29,209		14,527		28,078		42,605
Home equity		359		409		768		1,093		471		1,564
1-4 family mortgages		979		1,080		2,059		2,089		1,293		3,382
Installment loans		-		-		-		155		-		155
Total consumer loans		1,338		1,489		2,827		3,337		1,764		5,101
Total loans	$	2,076	$	29,960	$	32,036	$	17,864	$	29,842	$	47,706

(1)	These loans are still accruing interest.
(2)	These loans are included in non-accrual loans in the preceding tables.

The following table presents a summary of loans that were restructured during the quarters ended March 31, 2012 and March 31, 2011.

TDRs Restructured During the Period

(Dollar amounts in thousands)

	Number of Loans		Pre-Modification Recorded Investment		Interest and Escrow Capitalized		Post-Modification Recorded Investment		Number of Loans		Pre-Modification Recorded Investment		Interest and Escrow Capitalized		Post-Modification Recorded Investment
Commercial and industrial		-	$	-	$	-	$	-		2	$	131	$	7	$	138
Home equity		-		-		-		-		5		284		12		296
1-4 family mortgages		3		430		4		434		5		571		30		601
Installment loans		-		-		-		-		1		151		4		155
Total TDRs restructured during the period		3	$	430	$	4		4340		13		1,137		53		1,190

The specific reserve portion of the allowance for loan losses on TDRs for all segments of loans is determined by estimating the value of the loan. This is determined by discounting the restructured cash flows at the original effective rate of the loan before modification or is based on the fair value of the underlying collateral less costs to sell, if repayment of the loan is collateral-dependent. If the resulting amount is less than the recorded book value, the Company either establishes a valuation allowance (i.e. specific reserve) as a component of the allowance for loan losses or charges off the impaired balance if it determines that it is a confirmed loss. TDRs had related valuation allowances totaling $916,000 as of March 31, 2012 and $94,000 as of December 31, 2011.

The allowance for loan losses also includes an allowance based on a loss migration analysis for each loan category for loans that are not individually evaluated for impairment. All loans charged-off, including TDRs charged-off, are factored into this calculation by portfolio segment.

TDRs that have payment defaults and do not perform in accordance with the modified terms are transferred to non-accrual. The following table presents TDRs that had payment defaults during the quarters ended March 31, 2012 and March 31, 2011 where the default occurred within twelve months of the restructured date.

TDRs That Defaulted Within Twelve Months of the Restructured Date

(Dollar amounts in thousands)

	Quarters Ended
	March 31, 2012				March 31, 2011
	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
Home equity		-	$	-		1	$	83
1-4 family mortgages		1		62		-		-
Total		1	$	62		1	$	83

There were no commitments to lend additional funds to borrowers with TDRs as of March 31, 2012 or December 31, 2011.

Credit Quality Indicators

Corporate loans and commitments are assessed for risk and assigned ratings based on various characteristics, such as the borrower’s cash flow, leverage, collateral, management characteristics, and other factors. Ratings for commercial credits are reviewed periodically. On a quarterly basis, consumer loans are assessed for credit quality based on the delinquency status of the loan.

Credit Quality Indicators by Class, Excluding Covered Loans

 (Dollar amounts in thousands)

	Pass		Special Mention (1)		Substandard (2)		Non-accrual (3)		Total
March 31, 2012
Commercial and industrial	$	1,358,137	$	45,735	$	37,936	$	55,158	$	1,496,966
Agricultural		226,134		10,670		-		882		237,686
Commercial real estate:
Office, retail, and industrial		1,222,796		63,997		45,275		34,831		1,366,899
Multi-family		287,789		2,528		1,424		9,615		301,356
Residential construction		42,500		21,588		14,576		21,104		99,768
Commercial construction		90,618		23,944		7,448		20,297		142,307
Other commercial real estate		703,618		65,593		16,657		43,137		829,005
Total commercial real estate		2,347,321		177,650		85,380		128,984		2,739,335
Total corporate loans	$	3,931,592	$	234,055	$	123,316	$	185,024	$	4,473,987
December 31, 2011
Commercial and industrial	$	1,308,812	$	57,866	$	47,616	$	44,152	$	1,458,446
Agricultural		232,270		10,487		-		1,019		243,776
Commercial real estate:
Office, retail, and industrial		1,147,026		78,578		43,435		30,043		1,299,082
Multi-family		275,031		5,803		1,015		6,487		288,336
Residential construction		48,806		27,198		11,756		18,076		105,836
Commercial construction		92,568		23,587		5,407		23,347		144,909
Other commercial real estate		746,213		73,058		17,428		51,447		888,146
Total commercial real estate		2,309,644		208,224		79,041		129,400		2,726,309
Total corporate loans	$	3,850,726	$	276,577	$	126,657	$	174,571	$	4,428,531

	Performing		Non-accrual		Total
March 31, 2012
Home equity	$	397,516	$	8,851	$	406,367
1-4 family mortgages		212,081		5,648		217,729
Installment loans		39,223		22		39,245
Total consumer loans	$	648,820	$	14,521	$	663,341
December 31, 2011
Home equity	$	408,787	$	7,407	$	416,194
1-4 family mortgages		195,777		5,322		201,099
Installment loans		42,264		25		42,289
Total consumer loans	$	646,828	$	12,754	$	659,582

(1)	Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects at some future date.
(2)	Loans categorized as substandard continue to accrue interest, but exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. The loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time.
(3)	Loans categorized as non-accrual exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt and are characterized by the distinct possibility that the Company could sustain some loss if the deficiencies are not corrected. These loans were placed on non-accrual status.

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Note 8 - Earnings Per Common Share (Detail) - Basic and Diluted Earnings per Common Share (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Net income	$ 7,892		$ 10,044
Preferred dividends			(2,413)
Accretion on preferred stock			(168)
Net income applicable to non-vested restricted shares	(139)		(137)
Net income applicable to common shares	$ 7,753		$ 7,326
Weighted-average common shares outstanding:
Weighted-average common shares outstanding (basic) (in Shares)	73,505		73,151
Weighted-average diluted common shares outstanding (in Shares)	73,505		73,151
Basic earnings per share (in Dollars per share)	$ 0.11		$ 0.10
Diluted earnings per share (in Dollars per share)	$ 0.11		$ 0.10
Anti-dilutive shares not included in the computation of diluted earnings per share (1) (in Shares)	1,863	[1]	3,733	[1]

[1] Represents outstanding stock options (and common stock warrants for the 2011 period) for which the exercise price is greater than the average market price of the Company's common stock.

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Note 4 - Loans

3 Months Ended

Mar. 31, 2012

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

4.  LOANS

The following table presents the Company’s loan portfolio by class.

Loan Portfolio

(Dollar amounts in thousands)

	March 31, 2012		December 31, 2011
Commercial and industrial	$	1,496,966	$	1,458,446
Agricultural		237,686		243,776
Commercial real estate:
Office, retail, and industrial		1,366,899		1,299,082
Multi-family		301,356		288,336
Residential construction		99,768		105,836
Commercial construction		142,307		144,909
Other commercial real estate		829,005		888,146
Total commercial real estate		2,739,335		2,726,309
Total corporate loans		4,473,987		4,428,531
Home equity		406,367		416,194
1-4 family mortgages		217,729		201,099
Installment loans		39,245		42,289
Total consumer loans		663,341		659,582
Total loans, excluding covered loans		5,137,328		5,088,113
Covered loans (1)		251,376		260,502
Total loans	$	5,388,704	$	5,348,615
Deferred loan fees included in total loans	$	7,283	$	7,828
Overdrawn demand deposits included in total loans	$	2,173	$	2,850

(1) For information on covered loans, refer to Note 5, “Covered Assets.”

The Company primarily lends to small and mid-sized businesses, commercial real estate customers, and consumers in the markets in which the Company operates. Within these areas, the Company diversifies its loan portfolio by loan type, industry, and borrower.

It is the Company’s policy to review each prospective credit to determine the appropriateness and the adequacy of security or collateral prior to making a loan. In the event of borrower default, the Company seeks recovery in compliance with state lending laws, the Company’s lending standards, and credit monitoring and remediation procedures.

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Note 5 - Covered Assets

3 Months Ended

Mar. 31, 2012

Accounting for Certain Loans and Debt Securities Acquired in Transfer Disclosure [Text Block]

5.  COVERED ASSETS

In 2009 and 2010, the Company acquired the majority of the assets of three financial institutions in FDIC-assisted transactions. Most loans and OREO acquired in these acquisitions are covered by loss sharing agreements with the FDIC (the “FDIC Agreements”), whereby the FDIC will reimburse the Company for the majority of the losses incurred on these assets. A detailed discussion of these transactions is presented in Note 5, “Covered Assets” contained in the Company’s 2011 10-K.

Covered Assets

(Dollar amounts in thousands)

	March 31, 2012		December 31  2011
Home equity lines (1)	$	44,855	$	45,451
Covered impaired loans		171,014		178,025
Other covered loans (2)		35,507		37,026
Total covered loans		251,376		260,502
FDIC indemnification asset		58,488		65,609
Covered OREO		16,990		23,455
Total covered assets	$	326,854	$	349,566
Covered non-accrual loans	$	19,264	$	19,879
Covered loans past due 90 days or more and still accruing interest	$	33,825	$	43,347

(1)	These loans are open-end consumer loans that are not categorized as purchased impaired loans.
(2)	These are loans that did not have evidence of impairment on the date of acquisition.

The loans purchased in the three FDIC-assisted transactions were recorded at their estimated fair values on the respective purchase dates and are accounted for prospectively based on expected cash flows. Except for leases and revolving loans, including lines of credit and credit card loans, management determined that a significant portion of the acquired loans (“purchased impaired loans”) had evidence of credit deterioration since origination, and it was probable at the date of acquisition that the Company would not collect all contractually required principal and interest payments. Past due covered loans in the table above are past due based on contractual terms but continue to perform in accordance with the Company’s expectations of cash flows.

In connection with the FDIC Agreements, the Company recorded an indemnification asset. To maintain eligibility for the loss share reimbursement, the Company is required to follow certain servicing procedures as specified in the FDIC Agreements.

The accounting policies related to purchased impaired loans are presented in Note 1, “Summary of Significant Accounting Policies.” Accounting for the related FDIC indemnification asset is presented in Note 1, “Summary of Significant Accounting Policies,” contained in the Company’s 2011 10-K.

Changes in the FDIC Indemnification Asset

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012			2011
Balance at beginning of period	$	65,609		$	95,899
Amortization		(1,979	)		(2,242	)
Expected reimbursements from the FDIC for changes in expected credit losses (1)		2,034			2,513
Payments received from the FDIC		(7,176	)		(10,784	)
Balance at end of period	$	58,488		$	85,386

(1) The increases in indemnification asset were a result of decreases in estimated cash flows on certain loans. The indemnification asset increased by the applicable loss share percentage for additional expected losses.

Changes in the accretable yield for purchased impaired loans were as follows.

Changes in Accretable Yield

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012			2011
Balance at beginning of period	$	52,147		$	63,616
Accretion		(5,386	)		(8,424	)
Net reclassifications to non-accretable difference (1)		(5,716	)		(4,182	)
Balance at end of period	$	41,045		$	51,010

(1) Amount represents a decrease in the estimated cash flows to be collected over the remaining estimated life of the underlying portfolio.

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Note 7 - Senior and Subordinated Debt

3 Months Ended

Mar. 31, 2012

Debt Disclosure [Text Block]

7.  SENIOR AND SUBORDINATED DEBT

The following table presents the Company’s senior and subordinated debt by issuance.

Senior and Subordinated Debt

(Dollar amounts in thousands)

	March 31, 2012			December 31, 2011
5.875% senior notes due in 2016
Principal amount	$	115,000		$	115,000
Discount		(569	)		(600	)
Total senior notes due in 2016		114,431			114,400
5.85% subordinated notes due in 2016
Principal amount		50,500			50,500
Discount		(22	)		(24	)
Total subordinated notes due in 2016		50,478			50,476
6.95% junior subordinated debentures due in 2033
Principal amount		66,253			87,351
Discount		(56	)		(74	)
Total junior subordinated debentures due in 2033		66,197			87,277
Total senior and subordinated debt	$	231,106		$	252,153

The Company’s senior and subordinated debt issuances are described in Note 11, “Senior and Subordinated Debt,” contained in the Company’s 2011 10-K.

In first quarter 2012, the Company redeemed and retired $21.1 million of junior subordinated debentures at a discount of 2.25%. This transaction resulted in the recognition of a pre-tax gain of $256,000, which is included in other noninterest income in the Condensed Consolidated Statements of Income.

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Note 12 - Fair Value (Detail) (USD $) In Millions, unless otherwise specified						3 Months Ended
	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2012 Banks Thrifts Depository Institutions [Member]	Mar. 31, 2012 Insurance Companies [Member]	Mar. 31, 2012 Defaulted Issuers [Member]	Mar. 31, 2012 Minimum [Member]	Mar. 31, 2012 Maximum [Member]
Deferring Collateral Recovery Rate For Banks Thrifts And Other Depository Institutions			90.00%	85.00%	100.00%
Total Amount of Loans Being Serviced for the Benefit of Others at End of Period (in Dollars)	$ 74.7	$ 78.6
Estimated Selling Costs						0.00%	(6.00%)
Appraisal Adjustment						0.00%	(20.00%)

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Note 12 - Fair Value (Detail) - Rollforward Carrying Value of CDO's (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Balance at beginning of period	$ 13,394		$ 14,858
Included in earnings (1)	(721)	[1]		[1]
Included in other comprehensive income	1,012	[2]	1,335	[2]
Balance at end of period	13,685		16,193
Change in unrealized losses recognized in earnings relating to securities still held at end of period	$ (721)

[1] Included in net securities (losses) gains in the Condensed Consolidated Statements of Income and related to securities still held at the end of the period.

[2] Included in unrealized holding gains in the Consolidated Statements of Comprehensive Income.

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Note 11 - Commitments Guarantees, and Contingent Liabilities (Detail) - Contractual or Notional Amounts of Financial Instruments (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Mar. 31, 2011
Commitments to extend credit:
Home equity lines	$ 254,481		$ 257,315
Credit card lines	21,255		21,257
Commercial and industrial	608,122		609,601
Overdraft protection program (1)	176,949	[1]	178,699	[1]
All other commitments	88,051		129,015
Total commitments	1,293,288		1,348,761
Letters of credit:
All other	55,872		58,532
Total letters of credit	112,072		116,566
Unamortized fees associated with letters of credit (2) (3)	598	[2],[3]	668	[2],[3]
Remaining weighted-average term (in months)	10.10		9.62
Remaining lives (in years)	0.1 to 12.3		0.1 to 12.6
1-4 Family Mortgages [Member]
Commitments to extend credit:
1-4 family real estate construction	10,512		13,300
Commercial Real Estate 1 [Member]
Commitments to extend credit:
Commercial real estate	133,918		139,574
1-4 Family Mortgages [Member]
Letters of credit:
1-4 family real estate construction	7,861		8,661
Commercial Real Estate 1 [Member]
Letters of credit:
Commercial real estate	$ 48,339		$ 49,373

[1] Federal regulation regarding electronic fund transfers require consumers to affirmatively consent to the institution's overdraft service for automated teller machine and one-time debit card transactions before overdraft fees may be assessed on the account. Consumers are provided a specific line for the amount they may overdraw.

[2] Included in other liabilities in the Consolidated Statements of Financial Condition.

[3] The Company will amortize these amounts into income over the commitment period.

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Note 3 - Securities (Detail) (USD $) In Millions, unless otherwise specified			3 Months Ended
	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2012 Minimum [Member]	Mar. 31, 2012 Maximum [Member]
Available-for-sale Securities Pledged as Collateral (in Dollars)	$ 491.4	$ 592.7
Discounted Projected Cash Flows Rate Range			125	160
Fair Value Discounted Projected Cash Flows Rate Range 1			1,300	1,400
CollateralizedMortgage Obligations And Other Mortgage Backed Securities	99.00%

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Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Detail) - Impaired Loans Individually Evaluated by Class (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2012	Dec. 31, 2011
Loans With No Specific Related Allowance [Member] | Commercial And Industrial [Member]
Impaired Loans	$ 13,364	$ 10,801	[1]
Loans With No Specific Related Allowance [Member] | Agricultural [Member]
Impaired Loans	557	556	[1]
Loans With No Specific Related Allowance [Member] | Office Retail And Industrial [Member]
Impaired Loans	7,635	11,897
Loans With No Specific Related Allowance [Member] | Multi-Family [Member]
Impaired Loans	8,551	5,072	[1]
Loans With No Specific Related Allowance [Member] | Residential Construction [Member]
Impaired Loans	8,666	9,718	[1]
Loans With No Specific Related Allowance [Member] | Commercial Construction [Member]
Impaired Loans	2,107	19,019	[1]
Loans With No Specific Related Allowance [Member] | Other Commerical Real Estate [Member]
Impaired Loans	24,533	26,027	[1]
Loans With No Specific Related Allowance [Member] | Total Commercial Real Estate [Member]
Impaired Loans	51,492	71,733	[1]
Loans With No Specific Related Allowance [Member] | Total Impaired Loans Individually Evaluated For Impairment [Member]
Impaired Loans	65,413	83,090	[1]
Loans With A Related Allowance For Credit Losses [Member] | Commercial And Industrial [Member]
Impaired Loans	35,154	26,028
Loans With A Related Allowance For Credit Losses [Member] | Office Retail And Industrial [Member]
Impaired Loans	25,178	16,319
Loans With A Related Allowance For Credit Losses [Member] | Multi-Family [Member]
Impaired Loans		517
Loans With A Related Allowance For Credit Losses [Member] | Residential Construction [Member]
Impaired Loans	11,358	7,660
Loans With A Related Allowance For Credit Losses [Member] | Commercial Construction [Member]
Impaired Loans	18,179	3,790
Loans With A Related Allowance For Credit Losses [Member] | Other Commerical Real Estate [Member]
Impaired Loans	15,252	22,083
Loans With A Related Allowance For Credit Losses [Member] | Total Commercial Real Estate [Member]
Impaired Loans	69,967	50,369
Loans With A Related Allowance For Credit Losses [Member] | Total Impaired Loans Individually Evaluated For Impairment [Member]
Impaired Loans	105,121	76,397
Unpaid Principal Balance [Member] | Commercial And Industrial [Member]
Impaired Loans	71,648	58,591
Unpaid Principal Balance [Member] | Agricultural [Member]
Impaired Loans	557	556
Unpaid Principal Balance [Member] | Office Retail And Industrial [Member]
Impaired Loans	42,873	33,785
Unpaid Principal Balance [Member] | Multi-Family [Member]
Impaired Loans	14,087	11,265
Unpaid Principal Balance [Member] | Residential Construction [Member]
Impaired Loans	35,110	33,124
Unpaid Principal Balance [Member] | Commercial Construction [Member]
Impaired Loans	24,844	28,534
Unpaid Principal Balance [Member] | Other Commerical Real Estate [Member]
Impaired Loans	65,333	70,868
Unpaid Principal Balance [Member] | Total Commercial Real Estate [Member]
Impaired Loans	182,247	177,576
Unpaid Principal Balance [Member] | Total Impaired Loans Individually Evaluated For Impairment [Member]
Impaired Loans	254,452	236,723
Allowance For Credit Losses Allocated [Member] | Commercial And Industrial [Member]
Impaired Loans	14,975	14,827
Allowance For Credit Losses Allocated [Member] | Office Retail And Industrial [Member]
Impaired Loans	1,447	1,507
Allowance For Credit Losses Allocated [Member] | Multi-Family [Member]
Impaired Loans		20
Allowance For Credit Losses Allocated [Member] | Residential Construction [Member]
Impaired Loans	3,110	2,502
Allowance For Credit Losses Allocated [Member] | Commercial Construction [Member]
Impaired Loans	763	758
Allowance For Credit Losses Allocated [Member] | Other Commerical Real Estate [Member]
Impaired Loans	2,808	6,481
Allowance For Credit Losses Allocated [Member] | Total Commercial Real Estate [Member]
Impaired Loans	8,128	11,268
Allowance For Credit Losses Allocated [Member] | Total Impaired Loans Individually Evaluated For Impairment [Member]
Impaired Loans	$ 23,103	$ 26,095

[1] No specific allowance for credit losses is allocated to these loans since they are deemed to be sufficiently collateralized or had charge-offs. However, while each component of the allowance for credit losses is determined separately, the entire balance is available for the entire loan portfolio.

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Note 12 - Fair Value

3 Months Ended

Mar. 31, 2012

Fair Value Disclosures [Text Block]

12.  FAIR VALUE

Fair value represents the amount that would be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date. In accordance with fair value accounting guidance, the Company measures and reports fair value differently for various types of financial instruments.

Certain assets and liabilities are measured at fair value on a recurring and non-recurring basis in the Consolidated Statements of Financial Condition. The fair value of certain other financial instruments are not required to be measured at fair value in the Consolidated Statements of Financial Condition and are disclosed in the “Financial Instruments Required to be Disclosed at Fair Value” section of this footnote.

Certain other financial instruments, such as FHLB stock, and all non-financial instruments are excluded from the fair value accounting guidance. Therefore, any aggregation of the estimated fair values presented does not represent the underlying value of the Company.

Depending on the nature of the asset or liability, the Company uses various valuation methodologies and assumptions to estimate fair value. GAAP establishes a three-tiered fair value hierarchy based on the inputs used to measure fair value. The hierarchy is defined as follows:

·   Level 1 – Quoted prices in active markets for identical assets or liabilities.

·   Level 2 – Observable inputs other than level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

·   Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs require significant management judgment or estimation, some of which use model-based techniques and may be internally developed.

Assets and liabilities are assigned to a level within the fair value hierarchy based on the lowest level of significant input used to measure fair value (i.e. if both level 2 assumptions and level 3 assumptions are used, the asset or liability is classified in level 3). Assets and liabilities may change hierarchy level due to market conditions or other circumstances. These transfers are recognized on the date of the event that prompted the transfer. There were no transfers of assets or liabilities between levels of the fair value hierarchy during the periods presented.

Assets and Liabilities Required to be Measured at Fair Value on a Recurring Basis

The following table provides the hierarchy and corresponding fair value for assets and liabilities required to be measured at fair value on a recurring basis in the Consolidated Statements of Financial Condition.

Recurring Fair Value Measurements

(Dollar amounts in thousands)

	March 31, 2012						December 31, 2011
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets and liabilities measured at fair value on a recurring basis
Assets:
Trading securities:
Money market funds	$	1,209	$	-	$	-	$	1,565	$	-	$	-
Mutual funds		14,822		-		-		12,904		-		-
Total trading securities		16,031		-		-		14,469		-		-
Securities available-for-sale:
U.S. agency securities		-		5,011		-		-		5,035		-
CMOs		-		507,546		-		-		384,104		-
Other residential MBSs		-		136,001		-		-		87,691		-
Municipal securities		-		488,003		-		-		490,071		-
CDOs		-		-		13,685		-		-		13,394
Corporate debt securities		-		30,733		-		-		30,014		-
Hedge fund investment		-		1,936		-		-		1,616		-
Other equity securities		42		1,018		-		41		1,040		-
Total securities available-for-sale		42		1,170,248		13,685		41		999,571		13,394
Mortgage servicing rights (1)		-		-		878		-		-		929
Liabilities:
Derivative liabilities (2)	$	-	$	2,319	$	-	$	-	$	2,459	$	-

(1)	Included in other assets in the Consolidated Statements of Financial Condition.
(2)	Included in other liabilities in the Consolidated Statements of Financial Condition.

Trading Securities

Trading securities represent diversified investment securities held in a rabbi trust and are invested in money market and mutual funds. The fair value of these money market and mutual funds is based on quoted market prices in active exchange markets and classified in level 1 of the fair value hierarchy. Changes in the fair value of trading securities are included as a separate component of noninterest income in the Condensed Consolidated Statements of Income.

Securities Available-for-Sale

U.S. Agency Securities, CMOs, Other Residential MBSs, Municipal Securities, Corporate Debt Securities, and Other Equity Securities–These securities are primarily fixed income instruments that are not quoted on an exchange, but may be traded in active markets. The fair values are based on quoted prices in active markets or market prices for similar securities obtained from external pricing services or dealer market participants and are classified in level 2 of the fair value hierarchy. Quarterly, the Company evaluates the methodologies used by its external pricing services to develop the fair values to determine whether the results of the valuations are representative of an exit price in the Company’s principal markets and an appropriate representation of fair value.

CDOs - CDOs are classified in level 3 of the fair value hierarchy.

Rollforward of the Carrying Value of CDOs

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012			2011
Balance at beginning of period	$	13,394		$	14,858
Total (loss) income:
Included in earnings (1)		(721	)		-
Included in other comprehensive income		1,012			1,335
Purchases		-			-
Sales		-			-
Issuances		-			-
Settlements		-			-
Balance at end of period	$	13,685		$	16,193
Change in unrealized losses recognized in earnings relating to securities still held at end of period	$	(721	)	$	-

(1)	Included in net securities (losses) gains in the Condensed Consolidated Statements of Income and related to securities still held at the end of the period.
(2)	Included in unrealized holding gains in the Consolidated Statements of Comprehensive Income.

The Company estimates the fair values for each CDO using discounted cash flow analyses with the assistance of a structured credit valuation firm. These analyses rely on credit analysis and review of historical financial data for each of the issuers of the securities underlying the individual CDO (the “Issuers”) to estimate the cash flows. These estimates are highly subjective and sensitive to several significant, unobservable input assumptions, including prepayment assumptions, default probabilities, loss given default assumptions, and deferral cure probabilities. The cash flows for each Issuer are then discounted to their present values using LIBOR plus an adjustment to reflect the higher risk inherent in these securities given their complex structures and the impact of the current market environment. Finally, the discounted cash flows for each Issuer are aggregated to derive the estimated fair value for the specific CDO. Specific information for each CDO, as well as the significant unobservable assumptions, is presented in the following table.

Characteristics of CDOs and Unobservable Inputs Significant

to the Valuation of CDOs as of March 31, 2012

(Dollar amounts in thousands)

	CDO Number (1)
	One			Two			Three			Four			Five			Six
Characteristics:
Class (2)		C-1			C-1			C-1			B1			C			C
Original par	$	17,500		$	15,000		$	15,000		$	15,000		$	10,000		$	6,500
Amortized cost		7,140			6,490			12,990			13,922			1,317			6,179
Fair value		3,180			1,251			2,963			4,168			408			1,715
Lowest credit rating (Moody’s)	Ca			Ca			Ca			Ca				C		Ca
Number of underlying issuers		46			57			62			63			56			79
Percent of issuers currently performing		78.3	%		78.9	%		74.2	%		55.6	%		60.7	%		67.1	%
Current deferral and default percent (3)		14.6	%		16.9	%		12.8	%		33.3	%		40.4	%		27.2	%
Expected future deferral and default       percent (4)		19.9	%		22.1	%		16.1	%		28.6	%		27.2	%		12.8	%
Excess subordination percent (5)		0.0	%		0.0	%		1.0	%		0.0	%		0.0	%		5.6	%
Discount rate risk adjustment, in basis points (6)		1,400			1,400			1,400			1,300			1,400			1,300
Significant unobservable assumptions weighted average of Issuers:
Probability of prepayments		8.3	%		4.3	%		3.2	%		7.0	%		7.2	%		3.2	%
Probability of default		22.9	%		27.5	%		21.5	%		29.2	%		39.9	%		28.1	%
Loss given default		88.2	%		88.7	%		89.8	%		92.6	%		92.7	%		95.3	%
Probability of deferral cure		31.8	%		24.0	%		30.4	%		42.9	%		32.1	%		51.1	%

(1)	The Company has a seventh CDO, but no information is reported for that CDO since the security had an amortized cost and fair value of zero as of March 31, 2012.
(2)	Class refers to the Company’s tranche within the security. In a structured investment, a tranche is one of a number of related securities offered as part of the same transaction and relates to the order in which investors receive principal and interest payments (i.e. tranche B pays before tranche C).
(3)	Represents actual deferrals and defaults, net of recoveries, as a percent of the original collateral.
(4)	Represents expected future net deferrals and defaults, net of recoveries, as a percent of the remaining performing collateral.
(5)	Represents additional defaults that the CDO can absorb before the security experiences any credit impairment. The excess subordination percentage is calculated by dividing the amount of potential additional loss that can be absorbed (before the receipt of all expected future principal and interest payments is affected) by the total balance of performing collateral.
(6)	Cash flows are discounted at LIBOR plus this additional risk adjustment to reflect the higher risk inherent in these securities given the current market environment.

Most Issuers have the right to prepay the securities on the fifth anniversary of issuance and under other limited circumstances. To estimate prepayments, a credit analysis of each Issuer is performed to ascertain its ability and likelihood to fund a prepayment. If a prepayment occurs, the Company receives cash equal to the par value for the portion of the CDO associated with that Issuer. Since there are a number of Issuers underlying each CDO, prepayments by a small number of Issuers would not likely have a material impact on the fair value of the CDO.

The probability of future defaults is derived for each Issuer based on a credit analysis. The associated assumed loss given default is based on historical default and recovery information provided by a nationally recognized credit rating agency and is assumed to be 90% for banks, 85% for insurance companies, and 100% for Issuers that have already defaulted.

The likelihood an Issuer who is currently deferring payment on the securities will pay all deferred amounts and remain current thereafter is based on an analysis of the Issuer’s asset quality, leverage ratios, and other measures of financial viability.

The impact of changes in these key inputs could result in a significantly higher or lower fair value measurement for each CDO. The timing of the default, the magnitude of the default, and the timing and magnitude of the cure probability are directly interrelated. Defaults that occur sooner and/or are greater than anticipated have a negative impact on the valuation. In addition, a high cure probability assumption has a positive effect on the fair value, and, if a cure event takes place sooner than anticipated, the impact on the valuation is also favorable.

The Company’s Treasury Department monitors the valuation results of each CDO on a quarterly basis, which includes an analysis of historical pricing trends for these types of securities, overall economic conditions (such as tracking LIBOR curves), and the performance of the Issuers’ industries. The Company’s Treasury Department also reviews market activity for the same or similar tranches of the CDOs, when available. Annually, it validates significant assumptions by reviewing detailed back-testing performed by the valuation firm.

Hedge Fund Investment – The Company’s hedge fund investment is classified in level 2 of the fair value hierarchy. The fair value is derived from monthly and annual financial statements provided by hedge fund management. The majority of the hedge fund’s investment portfolio is held in securities that are freely tradable and are listed on national securities exchanges.

Mortgage Servicing Rights

The Company services loans for others totaling $74.7 million as of March 31, 2012 and $78.6 million as of December 31, 2011. These loans are owned by third parties and are not included in the Consolidated Statements of Condition. The Company estimates the fair value of mortgage servicing rights by using a discounted cash flow analysis and classifies them in level 3 of the fair value hierarchy. Additional information regarding the Company’s mortgage servicing rights can be found in Footnote 22, “Fair Value,” in the Company’s 2011 10-K.

Derivative Assets and Derivative Liabilities

The interest rate swaps entered into by the Company are executed in the dealer market, and pricing is based on market quotes obtained from the counterparty. The market quotes were developed using market observable inputs, which primarily include LIBOR. Therefore, derivatives are classified in level 2 of the fair value hierarchy. For its derivative assets and liabilities, the Company also considers non-performance risk, including the likelihood of default by itself and its counterparties, when evaluating whether the market quotes from the counterparty are representative of an exit price.

Assets and Liabilities Required to be Measured at Fair Value on a Non-recurring Basis

The following table provides the hierarchy level and corresponding fair value for each class of assets and liabilities required to be measured at fair value on a non-recurring basis in the Consolidated Statements of Financial Condition.

Non-recurring Fair Value Measurements

(Dollar amounts in thousands)

	March 31, 2012						December 31, 2011
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Collateral-dependent impaired  loans	$	-	$	-	$	120,190	$	-	$	-	$	96,220
OREO (1)		-		-		52,266		-		-		57,430
Loans held-for-sale (2)		-		-		1,500		-		-		4,200
Assets held-for-sale (3)		-		-		7,933		-		-		7,933

(1)	Includes covered OREO.
(2)	Included in other assets in the Consolidated Statements of Financial Condition.
(3)	Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition.

Collateral-Dependent Impaired Loans

Certain collateral-dependent impaired loans are subject to fair value adjustments to reflect the difference between the carrying value of the loans and the value of the underlying collateral.

The fair values of collateral-dependent impaired loans are primarily determined by current appraised values of the underlying collateral, net of estimated selling costs, which range from 0% - 6%. Circumstances may warrant an adjustment to the appraised value based on the age and/or type of appraisal, and these adjustments typically range from 0% - 20%. Generally, appraisals greater than twelve months old are adjusted to account for estimated declines in the real estate market until an updated appraisal can be obtained.  In addition, the Company may adjust appraised values to account for differences in disposition strategies, such as adjusting a “stabilized” value to an “orderly liquidation” value. In certain cases, an internal valuation may be used when the underlying collateral is located in areas where comparable sales data is limited or unavailable. Accordingly, collateral-dependent impaired loans are classified in level 3 of the fair value hierarchy.

Collateral-dependent impaired loans for which the fair value is greater than the recorded investment are not measured at fair value in the Consolidated Statements of Financial Condition and are not included in this disclosure.

Other Real Estate Owned

OREO consists of properties acquired through foreclosure in partial or total satisfaction of certain loans. Upon initial transfer into OREO, properties are recorded at the lower of the recorded investment in the related loan(s) or the fair value, which represents the current appraised value of the properties, less estimated selling costs (which range from 0% - 6%). In certain circumstances, a current appraisal may not be available or the current appraised value may not represent an accurate measurement of the property’s fair value due to outdated market information or other factors. In these cases, the fair value is determined based on the lower of the (i) current appraised value, (ii) broker price opinion, (iii) current listing price, or (iv) signed sales contract. Given these valuation methods, OREO is classified in level 3 of the fair value hierarchy. Any write-downs in the carrying value of a property at the time of initial transfer into OREO are charged against the allowance for loan losses.

Subsequent to the initial transfer, periodic impairment analyses of OREO are performed, and new appraisals are obtained as necessary taking into consideration current real estate market trends and adjustments to listing prices. Any write-downs of the properties subsequent to initial transfer, as well as gains or losses on disposition and income or expense from the operations of OREO, are recognized in the Company’s operating results in the period in which they occur.

Loans Held-for-Sale

As of March 31, 2012, one office loan was classified as held-for-sale,  and it was transferred into the held-for-sale category at the sales contract price. Accordingly, the loan held-for-sale is classified in level 3 of the fair value hierarchy.

Assets Held-for-Sale

In the second quarter of 2011, the Company entered into an agreement to sell an office property and classified it as held-for-sale. The fair value of the property is based on a third quarter 2011 sales contract price and classified in level 3 of the fair value hierarchy.

Fair Value Adjustments Recorded for

Assets Measured at Fair Value on a Non-Recurring Basis

(Dollar amounts in thousands)

	Quarters Ended March 31,
	2012				2011
	Charged to Allowance for Loan Losses		Charged to Earnings		Charged to Allowance for Loan Losses		Charged to Earnings
Collateral-dependent impaired loans	$	18,740	$	-	$	16,810	$	-
OREO		-		690		-		1,112
Loans held-for-sale		3,135		-		200		-
Assets held-for-sale		-		-		-		310

Goodwill and Other Intangible Assets

Goodwill and other intangible assets are subject to impairment testing, which requires a significant degree of management judgment and the use of significant unobservable inputs. Goodwill is tested at least annually for impairment or more often if events or circumstances between annual tests indicate that there may be impairment. If the testing had resulted in impairment, the Company would have classified goodwill and other intangible assets subjected to nonrecurring fair value adjustments as a level 3 nonrecurring fair value measurement. Additional information regarding goodwill, other intangible assets, and impairment policies can be found in Note 1, “Summary of Significant Accounting Policies,” and Note 8, “Goodwill and Other Intangible Assets,” contained in the Company’s 2011 Form 10-K.

Financial Instruments Required to be Disclosed at Fair Value

The Company is required to disclose the estimated fair values of certain financial instruments that are not required to be measured at fair value in the Consolidated Statements of Financial Position. The following table provides the hierarchy level and related fair value measurement for each class of these financial assets and liabilities.

Financial Instruments Required to be Disclosed at Fair Value

(Dollar amounts in thousands)

	March 31, 2012										December 31, 2011
	Carrying			Fair Value							Carrying			Fair Value
	Amount			Level 1		Level 2		Level 3			Amount			Level 1		Level 2		Level 3
Assets:
Cash and due from banks	$	105,722		$	105,722	$	-	$	-		$	123,354		$	123,354	$	-	$	-
Interest-bearing deposits in other banks		380,651			-		380,651		-			518,176			-		518,176		-
Securities held-to-maturity:
Municipal securities		56,319			-		59,364					60,458			-		61,477		-
Loans, net of allowance for loan losses:
Commercial and industrial		1,496,966			-		-		1,498,870			1,458,446			-		-		1,460,972
Agricultural		237,686			-		-		236,753			243,776			-		-		243,035
Office, retail, and industrial		1,366,899			-		-		1,375,680			1,299,082			-		-		1,303,288
Multi-family		301,356			-		-		304,217			288,336			-		-		290,645
Residential construction		99,768			-		-		100,165			105,836			-		-		106,145
Commercial construction		142,307			-		-		142,503			144,909			-		-		145,305
Other commercial real estate		829,005			-		-		833,919			888,146			-		-		890,275
Home equity		406,367			-		-		387,653			416,194			-		-		394,404
1-4 family mortgages		217,729			-		-		222,162			201,099			-		-		206,115
Installment loans		39,245			-		-		40,218			42,289			-		-		43,030
Covered loans		251,376			-		-		251,376			260,502			-		-		260,502
Allowance for loan losses		(116,264	)		-		-		(116,264	)		(119,462	)		-		-		(119,462	)
Loans, net of allowance for loan losses		5,272,440			-		-		5,300,859			5,229,153			-		-		5,251,773
FDIC indemnification asset		58,488			-		-		31,486			65,609			-		-		37,173
Accrued interest receivable		29,423			-		29,423					29,826			-		29,826
Investment in bank-owned life insurance		206,304			-		-		206,304			206,235			-		-		206,235
Liabilities:
Deposits
Demand deposits	$	1,637,593		$	-	$	1,637,593	$	-		$	1,593,773		$	-	$	1,593,773	$	-
Savings deposits		1,030,554			-		1,030,554		-			970,016			-		970,016		-
NOW accounts		1,055,558			-		1,055,558		-			1,057,887			-		1,057,887		-
Money market deposits		1,173,388			-		1,173,388		-			1,198,382			-		1,198,382		-
Time deposits		1,589,270			-		1,591,759		-			1,659,117			-		1,659,251		-
Total deposits		6,486,363			-		6,488,852		-			6,479,175			-		6,479,309		-
Borrowed funds		202,155			-		205,777		-			205,371			-		208,728		-
Senior and  subordinated debt		231,106			226,442		-		-			252,153			237,393		-		-
Accrued interest payable		7,155			-		7,155		-			4,019			-		4,019		-
Standby letters of credit		598			-		598		-			668			-		668		-

Management uses various methodologies and assumptions as described below to determine the estimated fair values of the Company’s financial instruments. The fair value estimates are made at a discrete point in time based on relevant market information and consider management’s judgments regarding future expected economic conditions, loss experience, and risk characteristics of the financial instruments.

Short-Term Financial Assets and Liabilities

For financial instruments with a shorter-term or with no stated maturity, prevailing market rates, and limited credit risk, the carrying amounts approximate fair value. Those financial instruments include cash and due from banks, interest-bearing deposits in other banks, federal funds sold and other short-term investments, mortgages held-for-sale, accrued interest receivable, and accrued interest payable.

Securities Held-to-Maturity

The fair value of securities held-to-maturity is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.

Loans, net of Allowance for Loan Losses

The fair value of loans is estimated using the present value of the future cash flows of the remaining maturities of the loans. Prepayment assumptions that consider the Company’s historical experience and current economic and lending conditions were included. The discount rate was based on the LIBOR yield curve with adjustments for liquidity and credit risk.

Covered Loans - The fair value of the covered loan portfolio is determined by discounting the expected cash flows at a market interest rate, which is derived from LIBOR swap rates over the life of these loans. The expected cash flows are determined using the contractual terms of the covered loans, net of any projected credit losses. For valuation purposes, these loans are placed into groups with similar characteristics and risk factors. The timing and amount of credit losses for each group are estimated using historical default and loss experience, current collateral valuations, borrower credit scores, and internal risk ratings. For individually significant loans or credit relationships, the estimated fair value is determined by a specific loan level review utilizing appraised values for collateral and projections of the timing and amount of cash flows.

FDIC Indemnification Asset

The fair value of the FDIC indemnification asset is calculated by discounting the cash flows expected to be received from the FDIC. The future cash flows are estimated by multiplying expected losses on covered loans and covered OREO by the reimbursement rates set forth in the FDIC Agreements. Improvements in estimated cash flows on covered loans and covered OREO generally result in a corresponding decline in the indemnification asset, while reductions in expected reimbursements from the FDIC lead to an increase in the indemnification asset.

Investment in BOLI

The fair value of BOLI approximates the carrying amount as both are based on each policy’s respective cash surrender value (“CSV”), which is the amount the Company would receive upon liquidation of these investments. The CSV is derived from monthly reports provided by the managing brokers and is determined using the Company’s initial insurance premium and earnings of the underlying assets, offset by management fees.

Deposit Liabilities

The fair values disclosed for demand deposits, savings deposits, NOW accounts, and money market deposits are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The fair value for fixed-rate time deposits was estimated using the future cash flows discounted based on the LIBOR yield curve, plus or minus the spread associated with current pricing.

Borrowed Funds

The fair value of repurchase agreements and FHLB advances is estimated by discounting the agreements based on maturities using the rates currently offered for repurchase agreements of similar remaining maturities. The carrying amounts of federal funds purchased, federal term auction facilities, and other borrowed funds approximate their fair value due to their short-term nature.

Senior and Subordinated Debt

The fair value of senior and subordinated debt was determined using quoted market prices.

Standby Letters of Credit

The fair value of standby letters of credit represents deferred fees arising from the related off-balance sheet financial instruments. These deferred fees approximate the fair value of these instruments and are based on several factors, including the remaining terms of the agreement and the credit standing of the customer.

Commitments

The Company estimated the fair value of commitments outstanding to be immaterial based on the following factors: (i) the limited interest rate exposure posed by the commitments outstanding due to their variable nature, (ii) the general short-term nature of the commitment periods entered into, (iii) termination clauses provided in the agreements, and (iv) the market rate of fees charged.

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Note 5 - Covered Assets (Tables)

3 Months Ended

15 Months Ended

Mar. 31, 2012

Mar. 31, 2012

Covered Assets [Text Block]

	March 31, 2012		December 31  2011
Home equity lines (1)	$	44,855	$	45,451
Covered impaired loans		171,014		178,025
Other covered loans (2)		35,507		37,026
Total covered loans		251,376		260,502
FDIC indemnification asset		58,488		65,609
Covered OREO		16,990		23,455
Total covered assets	$	326,854	$	349,566
Covered non-accrual loans	$	19,264	$	19,879
Covered loans past due 90 days or more and still accruing interest	$	33,825	$	43,347

FDIC Indemnification Asset Roll Forward [Table Text Block]

	Quarters Ended March 31,
	2012			2011
Balance at beginning of period	$	65,609		$	95,899
Amortization		(1,979	)		(2,242	)
Expected reimbursements from the FDIC for changes in expected credit losses (1)		2,034			2,513
Payments received from the FDIC		(7,176	)		(10,784	)
Balance at end of period	$	58,488		$	85,386

CertainLoansAcquiredInTransferNotAccountedForAsDebtSecurities Accretable Yield Movement Schedule Roll Forward [Text Block]

	Quarters Ended March 31,
	2012			2011
Balance at beginning of period	$	52,147		$	63,616
Accretion		(5,386	)		(8,424	)
Net reclassifications to non-accretable difference (1)		(5,716	)		(4,182	)
Balance at end of period	$	41,045		$	51,010

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Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Detail) - Impaired Loans (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011
Impaired loans with a related allowance for credit losses (1)	$ 105,121	[1]	$ 76,397	[1]
Impaired loans with no specific related allowance for credit losses (2)	65,413	[2]	83,090	[2]
Total impaired loans individually evaluated for impairment	170,534		159,487
Corporate non-accrual loans not individually evaluated for impairment (3)	14,490	[3]	15,084	[3]
Total corporate non-accrual loans	185,024		174,571
TDRs, still accruing interest	2,076		17,864
Total impaired loans	187,100		192,435
Valuation allowance related to impaired loans	$ 23,103		$ 26,095

[1] These impaired loans require a valuation allowance because the present value of expected future cash flows or the estimated value of the related collateral less estimated selling costs is less than the recorded investment in the loans.

[2] No specific allowance for credit losses is allocated to these loans since they are deemed to be sufficiently collateralized or had charge-offs.

[3] These are loans with balances under a specified threshold.

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Note 4 - Loans (Detail) - Loan Portfolio (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011
Commercial and industrial	$ 1,496,966		$ 1,458,446
Agricultural	237,686		243,776
Commercial real estate:
Office, retail, and industrial	1,366,899		1,299,082
Multi-family	301,356		288,336
Residential construction	99,768		105,836
Commercial construction	142,307		144,909
Other commercial real estate	829,005		888,146
Total commercial real estate	2,739,335		2,726,309
Total corporate loans	4,473,987		4,428,531
Home equity	406,367		416,194
1-4 family mortgages	217,729		201,099
Installment loans	39,245		42,289
Total consumer loans	663,341		659,582
Total loans, excluding covered loans	5,137,328		5,088,113
Covered loans (1)	251,376	[1]	260,502	[1]
Total loans	5,388,704		5,348,615
Deferred loan fees included in total loans	7,283		7,828
Overdrawn demand deposits included in total loans	$ 2,173		$ 2,850

[1] For information on covered loans, refer to Note 5, "Covered Assets."

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Consolidated Statements Of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Net income	$ 7,892	$ 10,044
Unrealized holding gains:
Before tax	2,899	6,040
Tax effect	(1,099)	(2,355)
Net of tax	1,800	3,685
Less: reclassification of net (losses) gains included in net income:
Before tax	(943)	540
Tax effect	386	(221)
Net of tax	(557)	319
Net unrealized holding gains	2,357	3,366
Total other comprehensive income	2,357	3,366
Total comprehensive income	$ 10,249	$ 13,410

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Note 1 - Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2012

Basis of Presentation and Significant Accounting Policies [Text Block]

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation – The accompanying unaudited condensed consolidated interim financial statements of First Midwest Bancorp, Inc. (the “Company”), a Delaware corporation, were prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for quarterly reports on Form 10-Q. The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles (“GAAP”) and general practice within the banking industry. The accompanying statements do not include certain information and footnote disclosures required by GAAP for complete annual financial statements. Accordingly, these financial statements should be read in conjunction with the Company’s 2011 Annual Report on Form 10-K (“2011 10-K”).

The accompanying unaudited condensed consolidated interim financial statements were prepared in accordance with GAAP and reflect all adjustments that management deems necessary for the fair presentation of the financial position and results of operations for the periods presented. All such adjustments are of a normal recurring nature. The results of operations for the quarter ended March 31, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.

The Company uses the accrual basis of accounting for financial reporting purposes. Certain reclassifications were made to prior year amounts to conform to the current year presentation.

First quarter 2011 results were restated in the Condensed Consolidated Statements of Income to correct a 2011 actuarial pension expense calculation related to the valuation of future early retirement benefits. First quarter 2011 pension expense was increased by $295,000 and income tax expense was reduced by $121,000. The net effect was a reduction to income of $174,000, which had no impact on earnings per common share for first quarter 2011. In addition, there was a corresponding $174,000 reduction to retained earnings in the Consolidated Statements of Changes in Stockholders’ Equity.

Use of Estimates – The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates.

Principles of Consolidation – The accompanying consolidated financial statements include the accounts and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements.

The Company owns an interest in certain variable interest entities (“VIEs”) as described in Note 22, “Variable Interest Entities,” contained in the Company’s 2011 10-K. A VIE is a partnership, limited liability company, trust, or other legal entity that (i) does not have sufficient equity to finance its activities without additional subordinated financial support from other parties or (ii) has investors that lack certain characteristics associated with owning a controlling financial interest. The VIEs are not consolidated in the Company’s financial statements since the Company is not the primary beneficiary of any of the VIEs.

The accounting policies related to loans, the allowance for credit losses, and comprehensive income are presented below. For a summary of all other significant accounting policies, please refer to Note 1, “Summary of Significant Accounting Policies,” contained in the Company’s 2011 10-K.

Loans – Loans are carried at the principal amount outstanding, including certain net deferred loan origination fees. Loans held-for-sale are carried at the lower of aggregate cost or fair value and are included in other assets in the Consolidated Statements of Financial Condition. Interest income on loans is accrued based on principal amounts outstanding. Loan and lease origination fees, commitment fees, and certain direct loan origination costs are deferred, and the net amount is amortized over the estimated life of the related loans or commitments as a yield adjustment. Fees related to standby letters of credit, whose ultimate exercise is remote, are amortized into fee income over the estimated life of the commitment. Other credit-related fees are recognized as fee income when earned.

Purchased Impaired Loans – Purchased impaired loans are recorded at their estimated fair values on the respective purchase dates and are accounted for prospectively based on expected cash flows. No allowance for credit losses is recorded on these loans at the acquisition date. In determining the acquisition date fair value of purchased impaired loans and in subsequent periods, the Company generally aggregates purchased consumer loans and certain smaller balance commercial loans into pools of loans with common risk characteristics, such as delinquency status, credit score, and internal risk rating. Larger balance commercial loans are usually accounted for on an individual basis. Expected future cash flows in excess of the fair value of loans at the purchase date (“accretable yield”) are recorded as interest income over the life of the loans if the timing and amount of the future cash flows can be reasonably estimated. The non-accretable yield represents estimated losses in the portfolio and is equal to the difference between contractually required payments and the cash flows expected to be collected at acquisition.

Subsequent to the purchase date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. The present value of any decreases in expected cash flows after the purchase date is recognized by recording a charge-off through the allowance for loan losses.

Non-accrual loans – Generally, commercial loans and loans secured by real estate are placed on non-accrual status (i) when either principal or interest payments become 90 days or more past due based on contractual terms unless the loan is sufficiently collateralized such that full repayment of both principal and interest is expected and is in the process of collection within a reasonable period or (ii) when an individual analysis of a borrower’s creditworthiness indicates a credit should be placed on non-accrual status whether or not the loan is 90 days or more past due. When a loan is placed on non-accrual status, unpaid interest credited to income in the current year is reversed, and unpaid interest accrued in prior years is charged against the allowance for loan losses. After the loan is placed on non-accrual, all debt service payments are applied to the principal on the loan. Future interest income may only be recorded on a cash basis after recovery of principal is reasonably assured. Non-accrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate there is no longer doubt that the Company will collect all principal and interest due.

Commercial loans and loans secured by real estate are generally charged-off when deemed uncollectible. A loss is recorded at that time if the net realizable value can be quantified and it is less than the associated principal and interest outstanding. Consumer loans that are not secured by real estate are subject to mandatory charge-off at a specified delinquency date and are usually not classified as non-accrual prior to being charged-off. Closed-end consumer loans, which include installment, automobile, and single payment loans, are generally charged-off in full no later than the end of the month in which the loan becomes 120 days past due.

Generally, purchased impaired loans are considered accruing loans unless reasonable estimates of the timing and amount of future cash flows cannot be determined. Loans without reasonable cash flow estimates are classified as non-accrual loans and interest income will not be recognized until the timing and amount of the future cash flows can be reasonably determined.

Troubled Debt Restructurings (“TDRs”) –A restructuring of debt is considered a TDR when the creditor, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession, such as forgiveness of principal, reduction of the interest rate, or extension of the maturity, that it would not otherwise consider. Loans are not classified as TDRs when the modification is short-term or results in only an insignificant delay or shortfall in the payments to be received. The Company’s TDRs are determined on a case-by-case basis in connection with ongoing loan collection processes.

The Company does not accrue interest on any TDRs unless it believes collection of all principal and interest under the modified terms is reasonably assured. For a TDR to begin accruing interest, the borrower must demonstrate both some level of past performance and the capacity to perform under the modified terms. Generally, six months of consecutive payment performance by the borrower under the restructured terms is required before a TDR is returned to accrual status. However, the period could vary depending on the individual facts and circumstances of the loan. An evaluation of the borrower’s current creditworthiness is used to assess whether the borrower has the capacity to repay the loan under the modified terms. This evaluation includes an estimate of expected cash flows, evidence of strong financial position, and estimates of the value of collateral, if applicable. However, in accordance with industry regulation, these restructured loans continue to be separately reported as restructured until after the calendar year in which the restructuring occurred if the loan was restructured at reasonable market rates and terms.

Impaired Loans – Impaired loans consist of corporate non-accrual loans and TDRs.

With the exception of loans that were restructured and are still accruing interest, a loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest due according to the terms of the loan agreement based on current information and events. Loans deemed to be impaired are classified as non-accrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and installment loans. When a loan is designated as impaired, any subsequent principal and interest payments received are applied to the principal on the loan. Future interest income may only be recorded on a cash basis after recovery of principal is reasonably assured.

Certain impaired loans with balances under a specified threshold are not individually evaluated for impairment. For all other impaired loans, impairment is measured by comparing the estimated value of the loan to the recorded book value. The value of the loan is measured based on the present value of expected future cash flows discounted at the loan’s initial effective interest rate or the fair value of the underlying collateral, less costs to sell, if repayment of the loan is collateral-dependent. All impaired loans are included in non-performing assets. Purchased impaired loans are not reported as impaired loans provided that estimates of the timing and amount of future cash flows can be reasonably determined.

90-Days Past Due Loans – 90-days or more past due loans are loans with principal or interest payments  three months or more past due, but that still accrue interest. The Company continues to accrue interest if it determines these loans are sufficiently collateralized and in the process of collection within a reasonable time period.

Allowance for Credit Losses –The allowance for credit losses is comprised of the allowance for loan losses and the reserve for unfunded commitments and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the allowance for credit losses is inherently subjective since it requires significant estimates and management judgment, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on a migration analysis that uses historical loss experience, consideration of current economic trends, and other factors.

Credit exposures deemed to be uncollectible are charged-off against the allowance for loan losses, while recoveries of amounts previously charged-off are credited to the allowance for loan losses. Additions to the allowance for loan losses are established through the provision for loan losses charged to expense. The amount charged to operating expense depends on a number of factors, including historic loan growth, changes in the composition of the loan portfolio, net charge-off levels, and the Company’s assessment of the allowance for loan losses based on the methodology discussed below.

The allowance for loan losses consists of (i) specific reserves established for probable losses on individual loans for which the recorded investment in the loan exceeds the value of the loan, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) the impact of other internal and external qualitative factors.

The specific reserves component of the allowance for loan losses is based on a periodic analysis of impaired loans exceeding a fixed dollar amount where the internal credit rating is at or below a predetermined classification and other loans that management believes are subject to a higher risk of loss, regardless of internal credit rating. The value of the loan is measured based on the present value of expected future cash flows discounted at the loan’s initial effective interest rate or the fair value of the underlying collateral, less costs to sell, if repayment of the loan is collateral-dependent. If the resulting amount is less than the recorded book value, the Company either establishes a valuation allowance (i.e. a specific reserve) as a component of the allowance for loan losses or charges off the amount if it is a confirmed loss.

For corporate loans, the component of the allowance for loan losses based on a loss migration analysis examines actual loss experience for a rolling 8-quarter period and the related internal risk rating and category of loans charged-off.  The loss migration analysis is performed quarterly, and the loss factors are updated based on actual experience. The loss component derived from this migration analysis is then adjusted for management’s estimate of losses inherent in the loan portfolio that have yet to be manifested in historical charge-off experience. Management takes into consideration many internal and external qualitative factors when estimating this adjustment, including:

· Changes in the composition of the loan portfolio, trends in the volume and terms of loans, and trends in delinquent and non-accrual loans that could indicate historical trends do not reflect current conditions;

· Changes in credit policies and procedures, such as underwriting standards and collection, charge-off, and recovery practices;

· Changes in the experience, ability, and depth of credit management and other relevant staff;

· Changes in the quality of the Company’s loan review system and Board of Directors oversight;

· The existence and effect of any concentration of credit and changes in the level of concentrations, such as market, loan type, or risk rating;

· Changes in the value of the underlying collateral for collateral-dependent loans;

· Changes in the national and local economy that affect the collectability of various segments of the portfolio; and

· The effect of other external factors, such as competition and legal and regulatory requirements, on the level of estimated credit losses in the Company’s loan portfolio.

The Company also maintains a reserve for unfunded commitments, including letters of credit, to provide for the risk of loss inherent in these arrangements. The reserve for unfunded commitments is computed based on a loss migration analysis similar to that used to determine the allowance for loan losses, taking into consideration probabilities of future funding requirements. The reserve for unfunded commitments is included in other liabilities in the Consolidated Statements of Financial Condition.

The establishment of the allowance for credit losses involves a high degree of judgment and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance for credit losses is dependent upon a variety of factors beyond the Company’s control, including the performance of its loan portfolio, the economy, changes in interest rates and property values, and the interpretation of loan risk classifications by regulatory authorities. While each component of the allowance for credit losses is determined separately, the entire balance is available for the entire loan portfolio.

Comprehensive Income– Comprehensive income is the total of reported net income and other comprehensive income (“OCI”). OCI includes all other revenues, expenses, gains, and losses that are not reported in net income under GAAP. The Company includes the following items, net of tax, in other comprehensive income in the Consolidated Statements of Comprehensive Income: (i) changes in unrealized gains or losses on securities available-for-sale, (ii) changes in the fair value of derivatives designated under cash flow hedges (when applicable), and (iii) changes in unrecognized net pension costs related to the Company’s pension plan.

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Note 7 - Senior and Subordinated Debt (Detail) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2012	Dec. 31, 2012
Proceeds from (Repayments of) Long-term Debt and Capital Securities	$ (20,004,000)
Discount on Retirement of Junior Subordinated Debt		2.25%
Retired Debt [Member]
Proceeds from (Repayments of) Long-term Debt and Capital Securities	21,100,000
Gains (Losses) on Extinguishment of Debt	$ 256,000

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Note 12 - Fair Value (Detail) - Fair Value Measurements Recorded for Assets Measured at Fair Value on a Non-Recurring Basis (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Charged To Allowance For Loan Losses [Member]
Collateral-dependent impaired loans	$ 18,740	$ 16,810
Collateral-dependent impaired loans	18,740	16,810
OREO	0	0
Loans held-for-sale	3,135	200
Loans held-for-sale	3,135	200
Assets held-for-sale	0	0
Charged To Earnings [Member]
Collateral-dependent impaired loans	0	0
Collateral-dependent impaired loans	0	0
OREO	690	1,112
Loans held-for-sale	0	0
Loans held-for-sale	0	0
Assets held-for-sale	$ 0	$ 310

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Note 6 - Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Tables)

3 Months Ended

15 Months Ended

Mar. 31, 2012

Mar. 31, 2012

Past Due Financing Receivables [Table Text Block]

	Aging Analysis (Accruing and Non-accrual)										Non-performing Loans
	Current		30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total Loans		Non-accrual Loans		90 Days Past Due Loans, Still Accruing Interest
March 31, 2012
Commercial and industrial	$	1,439,402	$	22,899	$	34,665	$	57,564	$	1,496,966	$	55,158	$	3,525
Agricultural		236,818		159		709		868		237,686		882		393
Commercial real estate:
Office, retail, and industrial		1,329,162		20,045		17,692		37,737		1,366,899		34,831		901
Multi-family		291,061		1,362		8,933		10,295		301,356		9,615		-
Residential construction		77,531		1,768		20,469		22,237		99,768		21,104		-
Commercial construction		124,807		500		17,000		17,500		142,307		20,297		-
Other commercial real estate		793,385		12,842		22,778		35,620		829,005		43,137		963
Total commercial real estate		2,615,946		36,517		86,872		123,389		2,739,335		128,984		1,864
Total corporate loans		4,292,166		59,575		122,246		181,821		4,473,987		185,024		5,782
Home equity		394,424		2,723		9,220		11,943		406,367		8,851		1,596
1-4 family mortgages		211,398		875		5,456		6,331		217,729		5,648		264
Installment loans		38,858		333		54		387		39,245		22		32
Total consumer loans		644,680		3,931		14,730		18,661		663,341		14,521		1,892
Total loans, excluding covered loans		4,936,846		63,506		136,976		200,482		5,137,328		199,545		7,674
Covered loans		191,785		8,394		51,197		59,591		251,376		19,264		33,825
Total loans	$	5,128,631	$	71,900	$	188,173	$	260,073	$	5,388,704	$	218,809	$	41,499
December 31, 2011
Commercial and industrial	$	1,415,165	$	13,731	$	29,550	$	43,281	$	1,458,446	$	44,152	$	4,991
Agricultural		242,727		30		1,019		1,049		243,776		1,019		-
Commercial real estate:
Office, retail, and industrial		1,276,920		2,931		19,231		22,162		1,299,082		30,043		1,040
Multi-family		281,943		1,121		5,272		6,393		288,336		6,487		-
Residential construction		87,606		2,164		16,066		18,230		105,836		18,076		-
Commercial construction		129,310		320		15,279		15,599		144,909		23,347		-
Other commercial real estate		849,066		6,372		32,708		39,080		888,146		51,447		1,707
Total commercial real estate		2,624,845		12,908		88,556		101,464		2,726,309		129,400		2,747
Total corporate loans		4,282,737		26,669		119,125		145,794		4,428,531		174,571		7,738
Home equity		402,842		6,112		7,240		13,352		416,194		7,407		1,138
1-4 family mortgages		192,646		3,712		4,741		8,453		201,099		5,322		-
Installment loans		41,288		625		376		1,001		42,289		25		351
Total consumer loans		636,776		10,449		12,357		22,806		659,582		12,754		1,489
Total loans, excluding covered loans		4,919,513		37,118		131,482		168,600		5,088,113		187,325		9,227
Covered loans		195,289		7,853		57,360		65,213		260,502		19,879		43,347
Total loans	$	5,114,802	$	44,971	$	188,842	$	233,813	$	5,348,615	$	207,204	$	52,574

Allowance for Credit Losses on Financing Receivables [Table Text Block]

	Quarters Ended March 31,
	2012			2011
Balance at beginning of period	$	121,962		$	145,072
Loans charged-off		(22,686	)		(21,581	)
Recoveries of loans previously charged-off		1,278			2,020
Net loans charged-off		(21,408	)		(19,561	)
Provision for loan losses		18,210			19,492
Balance at end of period	$	118,764		$	145,003
Allowance for loan losses	$	116,264		$	142,503
Reserve for unfunded commitments		2,500			2,500
Total allowance for credit losses	$	118,764		$	145,003

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block]

	Commercial, Industrial, and Agricultural			Office, Retail, and Industrial			Multi- Family			Residential Construction			Other Commercial Real Estate			Consumer			Covered Loans			Total Allowance
Quarter ended March 31, 2012
Balance at beginning of period	$	46,017		$	16,012		$	5,067		$	14,563		$	24,471		$	14,843		$	989		$	121,962
Loans charged-off		(8,190	)		(2,667	)		(140	)		(683	)		(8,354	)		(2,378	)		(274	)		(22,686	)
Recoveries of loans previously charged-off		716			2			131			220			7			202			-			1,278
Net loans charged-off		(7,474	)		(2,665	)		(9	)		(463	)		(8,347	)		(2,176	)		(274	)		(21,408	)
Provision for loan losses		6,172			4,209			24			163			6,325			1,039			278			18,210
Balance at end of period	$	44,715		$	17,556		$	5,082		$	14,263		$	22,449		$	13,706		$	993		$	118,764
Quarter ended March 31, 2011
Balance at beginning of period	$	49,545		$	20,758		$	3,996		$	27,933		$	29,869		$	12,971		$	-		$	145,072
Loans charged-off		(4,974	)		(1,199	)		(549	)		(5,422	)		(5,662	)		(2,671	)		(1,104	)		(21,581	)
Recoveries of loans previously charged-off		1,837			16			-			4			43			108			12			2,020
Net loans charged-off		(3,137	)		(1,183	)		( 549	)		(5,418	)		(5,619	)		(2,563	)		(1092	)		(19,561	)
Provision for loan losses		4,181			57			1,205			4,873			5,795			2,289			1,092			19,492
Balance at end of period	$	50,589		$	19,632		$	4,652		$	27,388		$	30,045		$	12,697		$	-		$	145,003

Impaired Loans [Text Block]

	March 31, 2012		December 31, 2011
Impaired loans individually evaluated for impairment:
Impaired loans with a related allowance for credit losses (1)	$	105,121	$	76,397
Impaired loans with no specific related allowance for credit losses (2)		65,413		83,090
Total impaired loans individually evaluated for impairment		170,534		159,487
Corporate non-accrual loans not individually evaluated for impairment (3)		14,490		15,084
Total corporate non-accrual loans		185,024		174,571
TDRs, still accruing interest		2,076		17,864
Total impaired loans	$	187,100	$	192,435
Valuation allowance related to impaired loans	$	23,103	$	26,095

Loans and Related Allowance for Credit Losses by Portfolio Segment [Table Text Block]

	Loans						Allowance For Credit Losses
	Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total		Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total
March 31, 2012
Commercial, industrial, and agricultural	$	49,075	$	1,685,577	$	1,734,652	$	14,975	$	29,740	$	44,715
Commercial real estate:
Office, retail, and industrial		32,813		1,334,086		1,366,899		1,447		16,109		17,556
Multi-family		8,551		292,805		301,356		-		5,082		5,082
Residential construction		20,024		79,744		99,768		3,110		11,153		14,263
Other commercial real estate		60,071		911,241		971,312		3,571		18,878		22,449
Total commercial real estate		121,459		2,617,876		2,739,335		8,128		51,222		59,350
Total corporate loans		170,534		4,303,453		4,473,987		23,103		80,962		104,065
Consumer		-		663,341		663,341		-		13,706		13,706
Total loans, excluding covered loans		170,534		4,966,794		5,137,328		23,103		94,668		117,771
Covered loans (1)		-		44,855		44,855		-		993		993
Total loans included in the calculation of the allowance for credit losses	$	170,534	$	5,011,649	$	5,182,183	$	23,103	$	95,661	$	118,764
December 31, 2011
Commercial, industrial, and agricultural	$	37,385	$	1,664,837	$	1,702,222	$	14,827	$	31,190	$	46,017
Commercial real estate:
Office, retail, and industrial		28,216		1,270,866		1,299,082		1,507		14,505		16,012
Multi-family		5,589		282,747		288,336		20		5,047		5,067
Residential construction		17,378		88,458		105,836		2,502		12,061		14,563
Other commercial real estate		70,919		962,136		1,033,055		7,239		17,232		24,471
Total commercial real estate		122,102		2,604,207		2,726,309		11,268		48,845		60,113
Total corporate loans		159,487		4,269,044		4,428,531		26,095		80,035		106,130
Consumer		-		659,582		659,582		-		14,843		14,843
Total loans, excluding covered loans		159,487		4,928,626		5,088,113		26,095		94,878		120,973
Covered loans (1)		-		45,451		45,451		-		989		989
Total loans included in the calculation of the allowance for credit losses	$	159,487	$	4,974,077	$	5,133,564	$	26,095	$	95,867	$	121,962

Impaired Financing Receivables [Table Text Block]

	March 31, 2012								December 31, 2011
	Recorded Investment In								Recorded Investment In
	Loans with No Specific Related Allowance for Credit Losses		Loans with a Related Allowance for Credit Losses		Unpaid Principal Balance		Allowance for Credit Losses Allocated		Loans with No Specific Related Allowance for Credit Losses		Loans with a Related Allowance for Credit Losses		Unpaid Principal Balance		Allowance for Credit Losses Allocated
Commercial and industrial	$	13,364	$	35,154	$	71,648	$	14,975	$	10,801	$	26,028	$	58,591	$	14,827
Agricultural		557		-		557		-		556		-		556		-
Commercial real estate:
Office, retail, and industrial		7,635		25,178		42,873		1,447		11,897		16,319		33,785		1,507
Multi-family		8,551		-		14,087		-		5,072		517		11,265		20
Residential construction		8,666		11,358		35,110		3,110		9,718		7,660		33,124		2,502
Commercial construction		2,107		18,179		24,844		763		19,019		3,790		28,534		758
Other commercial real estate		24,533		15,252		65,333		2,808		26,027		22,083		70,868		6,481
Total commercial real estate		51,492		69,967		182,247		8,128		71,733		50,369		177,576		11,268
Total impaired loans individually evaluated for  impairment	$	65,413	$	105,121	$	254,452	$	23,103	$	83,090	$	76,397	$	236,723	$	26,095

Troubled Debt Restructuring by Class [Table Text Block]

	As of March 31, 2012						As of December 31, 2011
	Accruing (1)		Non-accrual (2)		Total		Accruing (1)		Non-accrual (2)		Total
Commercial and industrial	$	518	$	1,240	$	1,758	$	1,451	$	897	$	2,348
Agricultural		-		-		-		-		-		-
Commercial real estate:
Office, retail, and industrial		220		-		220		1,742		-		1,742
Multi-family		-		1,758		1,758		11,107		1,758		12,865
Residential construction		-		-		-		-		-		-
Commercial construction		-		14,006		14,006		-		14,006		14,006
Other commercial real estate		-		11,467		11,467		227		11,417		11,644
Total commercial real estate		220		27,231		27,451		13,076		27,181		40,257
Total corporate loans		738		28,471		29,209		14,527		28,078		42,605
Home equity		359		409		768		1,093		471		1,564
1-4 family mortgages		979		1,080		2,059		2,089		1,293		3,382
Installment loans		-		-		-		155		-		155
Total consumer loans		1,338		1,489		2,827		3,337		1,764		5,101
Total loans	$	2,076	$	29,960	$	32,036	$	17,864	$	29,842	$	47,706

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	Number of Loans		Pre-Modification Recorded Investment		Interest and Escrow Capitalized		Post-Modification Recorded Investment		Number of Loans		Pre-Modification Recorded Investment		Interest and Escrow Capitalized		Post-Modification Recorded Investment
Commercial and industrial		-	$	-	$	-	$	-		2	$	131	$	7	$	138
Home equity		-		-		-		-		5		284		12		296
1-4 family mortgages		3		430		4		434		5		571		30		601
Installment loans		-		-		-		-		1		151		4		155
Total TDRs restructured during the period		3	$	430	$	4		4340		13		1,137		53		1,190

Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods [Table Text Block]

	Quarters Ended
	March 31, 2012				March 31, 2011
	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
Home equity		-	$	-		1	$	83
1-4 family mortgages		1		62		-		-
Total		1	$	62		1	$	83

Financing Receivable Credit Quality Indicators [Table Text Block]

	Pass		Special Mention (1)		Substandard (2)		Non-accrual (3)		Total
March 31, 2012
Commercial and industrial	$	1,358,137	$	45,735	$	37,936	$	55,158	$	1,496,966
Agricultural		226,134		10,670		-		882		237,686
Commercial real estate:
Office, retail, and industrial		1,222,796		63,997		45,275		34,831		1,366,899
Multi-family		287,789		2,528		1,424		9,615		301,356
Residential construction		42,500		21,588		14,576		21,104		99,768
Commercial construction		90,618		23,944		7,448		20,297		142,307
Other commercial real estate		703,618		65,593		16,657		43,137		829,005
Total commercial real estate		2,347,321		177,650		85,380		128,984		2,739,335
Total corporate loans	$	3,931,592	$	234,055	$	123,316	$	185,024	$	4,473,987
December 31, 2011
Commercial and industrial	$	1,308,812	$	57,866	$	47,616	$	44,152	$	1,458,446
Agricultural		232,270		10,487		-		1,019		243,776
Commercial real estate:
Office, retail, and industrial		1,147,026		78,578		43,435		30,043		1,299,082
Multi-family		275,031		5,803		1,015		6,487		288,336
Residential construction		48,806		27,198		11,756		18,076		105,836
Commercial construction		92,568		23,587		5,407		23,347		144,909
Other commercial real estate		746,213		73,058		17,428		51,447		888,146
Total commercial real estate		2,309,644		208,224		79,041		129,400		2,726,309
Total corporate loans	$	3,850,726	$	276,577	$	126,657	$	174,571	$	4,428,531

Schedule of Consumer Loans by Credit Quality Indicators [Table Text Block]

	Performing		Non-accrual		Total
March 31, 2012
Home equity	$	397,516	$	8,851	$	406,367
1-4 family mortgages		212,081		5,648		217,729
Installment loans		39,223		22		39,245
Total consumer loans	$	648,820	$	14,521	$	663,341
December 31, 2011
Home equity	$	408,787	$	7,407	$	416,194
1-4 family mortgages		195,777		5,322		201,099
Installment loans		42,264		25		42,289
Total consumer loans	$	646,828	$	12,754	$	659,582

Continued [Member]

Impaired Financing Receivables [Table Text Block]

	Quarter Ended March 31, 2012				Quarter Ended March 31, 2011
	Average Recorded Investment Balance		Interest Income Recognized (1)		Average Recorded Investment Balance		Interest Income Recognized (1)
Commercial and industrial	$	45,630	$	9	$	51,024	$	6
Agricultural		922		-		2,515		-
Commercial real estate:
Office, retail, and industrial		28,683		-		17,910		12
Multi-family		6,528		-		6,650		2
Residential construction		17,074		-		49,823		-
Commercial construction		22,755		-		25,391		-
Other commercial real estate		51,842		-		44,339		17
Total commercial real estate		126,882		-		144,113		31
Total impaired loans individually evaluated for impairment	$	173,434	$	9	$	197,652	$	37

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Note 3 - Securities (Detail) - Credit-Related CDO Impairment Losses (USD $) In Thousands, unless otherwise specified	51 Months Ended	3 Months Ended	51 Months Ended	3 Months Ended	51 Months Ended					3 Months Ended	51 Months Ended
	Mar. 31, 2012 No 1 [Member]	Mar. 31, 2012 No 2 [Member]	Mar. 31, 2012 No 2 [Member]	Mar. 31, 2012 No 3 [Member]	Mar. 31, 2012 No 3 [Member]	Mar. 31, 2012 No 4 [Member]	Mar. 31, 2012 No 5 [Member]	Mar. 31, 2012 No 6 [Member]	Mar. 31, 2012 No 7 [Member]	Mar. 31, 2012	Mar. 31, 2012
Credit Related CDO Impairment Losses	$ 10,360	$ 642	$ 8,510	$ 79	$ 1,649	$ 1,078	$ 8,570	$ 243	$ 6,750	$ 721	$ 37,160

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Note 11 - Commitments Guarantees, and Contingent Liabilities

3 Months Ended

Mar. 31, 2012

Commitments Contingencies and Guarantees [Text Block]

11.  COMMITMENTS, GUARANTEES, AND CONTINGENT LIABILITIES

Credit Commitments and Guarantees

In the normal course of business, the Company enters into a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers and to conduct lending activities. These instruments include commitments to extend credit and standby and commercial letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition.

Contractual or Notional Amounts of Financial Instruments

(Dollar amounts in thousands)

	March 31, 2012		December 31, 2011
Commitments to extend credit:
Home equity lines	$	254,481	$	257,315
Credit card lines		21,255		21,257
1-4 family real estate construction		10,512		13,300
Commercial real estate		133,918		139,574
Commercial and industrial		608,122		609,601
Overdraft protection program (1)		176,949		178,699
All other commitments		88,051		129,015
Total commitments	$	1,293,288	$	1,348,761
Letters of credit:
1-4 family real estate construction	$	7,861	$	8,661
Commercial real estate		48,339		49,373
All other		55,872		58,532
Total letters of credit	$	112,072	$	116,566
Unamortized fees associated with letters of credit (2) (3)	$	598	$	668
Remaining weighted-average term (in months)		10.10		9.62
Remaining lives (in years)	0.1 to 12.3		0.1 to 12.6

(1)	Federal regulation regarding electronic fund transfers requires consumers to affirmatively consent to the institution’s overdraft service for automated teller machine and one-time debit card transactions before overdraft fees may be assessed on the account. Consumers are provided a specific line for the amount they may overdraw.
(2)	Included in other liabilities in the Consolidated Statements of Financial Condition.
(3)	The Company will amortize these amounts into income over the commitment period.

Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party and are most often issued in favor of a municipality where construction is taking place to ensure the borrower adequately completes the construction.

The maximum potential future payments guaranteed by the Company under standby letters of credit arrangements are equal to the contractual amount of the commitment. If a commitment is funded, the Company may seek recourse through the liquidation of the underlying collateral including real estate, production plants and property, marketable securities, or receipt of cash.

Legal Proceedings

In August 2011, the Bank was named in a purported class action lawsuit filed in the Circuit Court of Cook County, Illinois on behalf of certain of the Bank’s customers who incurred overdraft fees. The complaint was amended in February 2012, and the Bank filed a motion to dismiss the lawsuit in May 2012, which is pending. The lawsuit is based on the Bank’s practices pursuant to debit card transactions, and alleges, among other things, that these practices resulted in customers being unfairly assessed overdraft fees. The lawsuit seeks an unspecified amount of damages and other relief, including restitution.

The Company believes that the complaint contains significant inaccuracies and factual misstatements and that the Bank has meritorious defenses. As a result, the Bank intends to vigorously defend itself against the allegations in the lawsuit.

As of March 31, 2012, there were certain other legal proceedings pending against the Company and its subsidiaries in the ordinary course of business. The Company does not believe that liabilities, individually or in the aggregate, arising from legal proceedings, if any, would have a material adverse effect on the consolidated financial condition of the Company as of March 31, 2012.