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 June 30, 2014
	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	36-3161078
(State or other jurisdiction of incorporation or organization)	(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. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [X]	Accelerated filer [ ]
Non-accelerated filer [ ]	Smaller reporting company [ ]
(Do not check if a 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 July 31, 2014, there were 75,276,660 shares of common stock, $.01 par value, outstanding.

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	3
	Condensed Consolidated Statements of Income	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Changes in Stockholders’ Equity	6
	Condensed Consolidated Statements of Cash Flows	7
	Notes to the Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition   and Result 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	68
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	69
Item 6.	Exhibits	70

2

PART I. FINANCIAL INFORMATION (Unaudited)

ITEM 1. FINANCIAL STATEMENTS

FIRST MIDWEST BANCORP, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Amounts in thousands, except per share data)

					June 30, 2014			December 31, 2013
Assets					(Unaudited)
Cash and due from banks					$	155,099		$	110,417
Interest-bearing deposits in other banks					322,874			476,824
Trading securities, at fair value					18,231			17,317
Securities available-for-sale, at fair value					1,050,475			1,112,725
Securities held-to-maturity, at amortized cost					26,471			44,322
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank stock, at cost					35,588			35,161
Loans, excluding covered loans					5,843,457			5,580,005
Covered loans					104,867			134,355
Allowance for loan and covered loan losses					(78,326		)	(85,505		)
Net loans					5,869,998			5,628,855
Other real estate owned (“OREO”), excluding covered OREO					30,331			32,473
Covered OREO					9,825			8,863
Federal Deposit Insurance Corporation (“FDIC”) indemnification asset					10,276			16,585
Premises, furniture, and equipment					118,305			120,204
Investment in bank-owned life insurance (“BOLI”)					194,502			193,167
Goodwill and other intangible assets					274,962			276,366
Accrued interest receivable and other assets					188,310			180,128
Total assets					$	8,305,247		$	8,253,407
Liabilities
Noninterest-bearing deposits					$	2,025,666		$	1,911,602
Interest-bearing deposits					4,869,584			4,854,499
Total deposits					6,895,250			6,766,101
Borrowed funds					104,201			224,342
Senior and subordinated debt					190,996			190,932
Accrued interest payable and other liabilities					75,362			70,590
Total liabilities					7,265,809			7,251,965
Stockholders’ Equity
Common stock					858			858
Additional paid-in capital					407,895			414,293
Retained earnings					878,607			853,740
Accumulated other comprehensive loss, net of tax					(15,271		)	(26,792		)
Treasury stock, at cost					(232,651		)	(240,657		)
Total stockholders’ equity					1,039,438			1,001,442
Total liabilities and stockholders’ equity					$	8,305,247		$	8,253,407
	June 30, 2014				December 31, 2013
	Preferred		Common		Preferred			Common
	Shares		Shares		Shares			Shares
Par Value	$	—	$	0.01	$	—		$	0.01
Shares authorized	1,000		150,000		1,000			100,000
Shares issued	—		85,787		—			85,787
Shares outstanding	—		75,273		—			75,071
Treasury shares	—		10,514		—			10,716

See accompanying notes to the unaudited condensed consolidated financial statements.

3

FIRST MIDWEST BANCORP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share data)

(Unaudited)

	Quarters Ended   June 30,					Six Months Ended   June 30,
	2014			2013		2014			2013
Interest Income
Loans, excluding covered loans	$	60,634		$	59,111	$	119,636		$	118,542
Covered loans	2,605			4,151		4,543			7,600
Investment securities	8,019			7,657		16,024			15,013
Other short-term investments	745			834		1,490			1,643
Total interest income	72,003			71,753		141,693			142,798
Interest Expense
Deposits	2,511			3,003		5,108			6,323
Borrowed funds	169			385		552			827
Senior and subordinated debt	3,016			3,435		6,031			6,870
Total interest expense	5,696			6,823		11,691			14,020
Net interest income	66,307			64,930		130,002			128,778
Provision for loan and covered loan losses	5,341			5,813		6,782			11,487
Net interest income after provision for loan and covered loan   losses	60,966			59,117		123,220			117,291
Noninterest Income
Service charges on deposit accounts	8,973			9,118		16,993			17,795
Wealth management fees	6,552			6,126		13,009			11,965
Card-based fees	5,969			5,547		11,304			10,623
Mortgage banking income	959			1,010		2,074			2,978
Other service charges, commissions, and fees	4,555			4,207		8,677			8,405
Net securities gains	4,517			216		5,590			216
Loss on extinguishment of debt	(2,059		)	—		(2,059		)	—
Other income	1,727			1,217		2,855			3,034
Total noninterest income	31,193			27,441		58,443			55,016
Noninterest Expense
Salaries and employee benefits	34,561			32,921		68,052			69,490
Net occupancy and equipment expense	7,672			7,793		17,063			15,940
Professional services	6,517			5,595		11,906			10,813
Technology and related costs	3,104			2,884		6,178			5,367
Net OREO expense	1,569			1,084		3,125			2,883
Other expenses	11,594			12,150		22,361			22,748
Total noninterest expense	65,017			62,427		128,685			127,241
Income before income tax expense	27,142			24,131		52,978			45,066
Income tax expense	8,642			7,955		16,814			14,248
Net income	$	18,500		$	16,176	$	36,164		$	30,818
Per Common Share Data
Basic earnings per common share	$	0.25		$	0.22	$	0.48		$	0.41
Diluted earnings per common share	$	0.25		$	0.22	$	0.48		$	0.41
Dividends declared per common share	$	0.08		$	0.04	$	0.15		$	0.05
Weighted-average common shares outstanding	74,322			74,017		74,235			73,942
Weighted-average diluted common shares outstanding	74,333			74,024		74,247			73,950

See accompanying notes to the unaudited condensed consolidated financial statements.

4

FIRST MIDWEST BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollar amounts in thousands)

(Unaudited)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Net income	$	18,500		$	16,176		$	36,164		$	30,818
Securities available-for-sale
Unrealized holding gains (losses):
Before tax	12,031			1,164			24,721			(852		)
Tax effect	(4,743		)	(945		)	(9,779		)	(158		)
Net of tax	7,288			219			14,942			(1,010		)
Reclassification of net gains included in net income:
Before tax	4,517			216			5,590			216
Tax effect	(1,847		)	(88		)	(2,286		)	(88		)
Net of tax	2,670			128			3,304			128
Net unrealized holding gains (losses)	4,618			91			11,638			(1,138		)
Derivative instruments
Unrealized holding losses:
Before tax	(198		)	—			(198		)	—
Tax effect	81			—			81			—
Net of tax	(117		)	—			(117		)	—
Unrecognized net pension costs
Unrealized holding gains:
Before tax	—			10,997			—			10,997
Tax effect	—			(4,498		)	—			(4,498		)
Net of tax	—			6,499			—			6,499
Total other comprehensive income	4,501			6,590			11,521			5,361
Total comprehensive income	$	23,001		$	22,766		$	47,685		$	36,179

	Accumulated Unrealized Gain (Loss) on Securities Available- for-Sale			Accumulated Unrealized Loss on Derivative Instruments			Unrecognized Net Pension Costs			Total Accumulated Other Comprehensive Loss
Balance at December 31, 2012	$	1,115		$	—		$	(16,775	)	$	(15,660	)
Other comprehensive (loss) income	(1,138		)	—			6,499			5,361
Balance at June 30, 2013	$	(23	)	$	—		$	(10,276	)	$	(10,299	)
Balance at December 31, 2013	$	(20,419	)	$	—		$	(6,373	)	$	(26,792	)
Other comprehensive income (loss)	11,638			(117		)	—			11,521
Balance at June 30, 2014	$	(8,781	)	$	(117	)	$	(6,373	)	$	(15,271	)

See accompanying notes to the unaudited condensed consolidated financial statements.

5

FIRST MIDWEST BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Amounts in thousands, except per share data)

(Unaudited)

	Common Shares Outstanding		Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total
Balance at December 31, 2012	74,840		$	858	$	418,318		$	786,453		$	(15,660	)	$	(249,076	)	$	940,893
Comprehensive income	—		—		—			30,818			5,361			—			36,179
Common dividends declared ($0.05 per common share)	—		—		—			(3,755		)	—			—			(3,755		)
Share-based compensation expense	—		—		2,854			—			—			—			2,854
Restricted stock activity	224		—		(9,648		)	—			—			8,126			(1,522		)
Treasury stock (purchased for)   issued to benefit plans	(1	)	—		(54		)	—			—			58			4
Balance at June 30, 2013	75,063		$	858	$	411,470		$	813,516		$	(10,299	)	$	(240,892	)	$	974,653
Balance at December 31, 2013	75,071		$	858	$	414,293		$	853,740		$	(26,792	)	$	(240,657	)	$	1,001,442
Comprehensive income	—		—		—			36,164			11,521			—			47,685
Common dividends declared ($0.15 per common share)	—		—		—			(11,297		)	—			—			(11,297		)
Share-based compensation expense	—		—		3,226			—			—			—			3,226
Restricted stock activity	194		—		(9,501		)	—			—			7,625			(1,876		)
Treasury stock issued to   (purchased for) benefit plans	8		—		(123		)	—			—			381			258
Balance at June 30, 2014	75,273		$	858	$	407,895		$	878,607		$	(15,271	)	$	(232,651	)	$	1,039,438

See accompanying notes to the unaudited condensed consolidated financial statements.

6

FIRST MIDWEST BANCORP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands)

(Unaudited)

	Six Months Ended   June 30,
	2014			2013
Net cash provided by operating activities	$	56,405		$	70,414
Investing Activities
Proceeds from maturities, prepayments, and calls of securities available-for-sale	82,779			125,533
Proceeds from sales of securities available-for-sale	12,838			19,745
Purchases of securities available-for-sale	(11,115		)	(289,666		)
Proceeds from maturities, prepayments, and calls of securities held-to-maturity	3,151			5,803
Purchases of securities held-to-maturity	(1,030		)	(1,881		)
Net (purchases) redemption of FHLB stock	(427		)	12,071
Net increase in loans	(251,586		)	(85,210		)
BOLI income, net of claims	(72		)	(76		)
Proceeds from sales of OREO	9,160			10,907
Proceeds from sales of premises, furniture, and equipment	158			1,425
Purchases of premises, furniture, and equipment	(4,074		)	(3,286		)
Net cash used in investing activities	(160,218		)	(204,635		)
Financing Activities
Net increase in deposit accounts	129,149			194,492
Net (decrease) increase in borrowed funds	(5,591		)	10,619
Payment for the termination of FHLB advances	(116,609		)	—
Cash dividends paid	(10,530		)	(1,499		)
Restricted stock activity	(2,699		)	(1,588		)
Excess tax benefit related to share-based compensation	825			36
Net cash (used in) provided by financing activities	(5,455		)	202,060
Net (decrease) increase in cash and cash equivalents	(109,268		)	67,839
Cash and cash equivalents at beginning of period	587,241			716,266
Cash and cash equivalents at end of period	$	477,973		$	784,105
Supplemental Disclosures of Cash Flow Information:
Income taxes paid (refunded)	$	4,734		$	(3,498	)
Interest paid to depositors and creditors	11,927			14,281
Dividends declared, but unpaid	6,027			3,005
Non-cash transfers of loans to OREO	9,339			11,502
Non-cash transfer of loans held-for-investment to loans held-for-sale	64,881			1,275
Non-cash transfer of an investment from other assets to securities available-for-sale	—			2,787

See accompanying notes to the unaudited condensed consolidated financial statements.

7

NOTES TO THE 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 in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") for quarterly reports on Form 10-Q and reflect all adjustments that management deems necessary for the fair presentation of the financial position and results of operations for the periods presented. The results of operations for the quarter and six month period ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.

The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles (“GAAP”) and general practices within the banking industry. The accompanying quarterly statements do not include certain information and footnote disclosures required by GAAP for complete annual financial statements. Therefore, these financial statements should be read in conjunction with the Company’s 2013 Annual Report on Form 10-K (“2013 10-K”). 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.

Principles of Consolidation – The accompanying condensed consolidated financial statements include the financial position 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 condensed consolidated financial statements.

Use of Estimates – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed 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.

The accounting policies related to loans, the allowance for credit losses, the FDIC indemnification asset, and derivative financial instruments are presented below. For a summary of all other significant accounting policies, please refer to Note 1, “Summary of Significant Accounting Policies,” in the Company’s 2013 10-K.

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

Purchased Impaired Loans– Purchased impaired loans include acquired loans that had evidence of credit deterioration since origination and it was probable at acquisition that the Company would not collect all contractually required principal and interest payments. Evidence of credit deterioration was evaluated using various indicators, such as past due and non-accrual status. Other key considerations included past performance of the institutions' credit underwriting standards, completeness and accuracy of credit files, maintenance of risk ratings, and age of appraisals. Lease and revolving loans do not qualify to be accounted for as purchased impaired loans. No allowance for credit losses is recorded on these loans at the acquisition date. Purchased impaired loans are recorded at fair value, and are accounted for prospectively based on estimates of expected cash flows. To estimate the fair value, 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. The fair values of larger balance commercial loans are estimated 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 the difference between contractually required payments and the cash flows expected to be collected at acquisition.

Subsequent increases in cash flows are recognized as interest income prospectively. The present value of any decreases in expected cash flows is recognized by recording a charge-off through the allowance for loan and covered loan losses or establishing an allowance for loan and covered loan losses.

8

Non-accrual Loans– Generally, corporate loans are placed on non-accrual status (i) when either principal or interest payments become 90 days or more past due 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 warrants a downgrade to non-accrual regardless of past due status. 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 that the Company will collect all principal and interest.

Commercial loans and loans secured by real estate are charged-off when deemed uncollectible. A loss is recorded if the net realizable value of the underlying collateral is less than the outstanding principal and interest. 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 usually charged-off no later than the end of the month in which the loan becomes 120 days past due.

Purchased impaired loans are generally 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 is not recognized on those loans until the timing and amount of the future cash flows can be reasonably determined.

Troubled Debt Restructurings (“TDRs”) – A restructuring is considered a TDR when (i) the borrower is experiencing financial difficulties and (ii) the creditor grants a concession, such as forgiveness of principal, reduction of the interest rate, changes in payments, or extension of the maturity date. Loans are not classified as TDRs when the modification is short-term or results in an insignificant delay in payments. The Company’s TDRs are determined on a case-by-case basis.

The Company does not accrue interest on a TDR 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 future capacity to perform under the modified terms. Generally, six months of consecutive payment performance 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 the borrower’s 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. For TDRs to be removed from TDR status in the calendar year after the restructuring, the loans must (i) have an interest rate and terms that reflect market conditions at the time of restructuring, and (ii) be in compliance with the modified terms. If the loan was restructured at below market rates and terms, it continues to be separately reported as restructured until it is paid in full or charged-off.

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

A loan is considered impaired when it is probable that the Company will not collect all contractual principal and interest. With the exception of accruing TDRs, impaired loans are classified as non-accrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and installment loans. 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 collateral-dependent loans is based on the fair value of the underlying collateral, less costs to sell. The value of other loans is measured using the present value of expected future cash flows discounted at the loan’s initial effective interest rate. 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 –The Company’s accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is sufficiently collateralized and in the process of renewal or collection.

Allowance for Credit Losses – The allowance for credit losses is comprised of the allowance for loan losses, the allowance for covered 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 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.

Loans deemed to be uncollectible are charged-off against the allowance for loan and covered loan losses, while recoveries of amounts previously charged-off are credited to the allowance for loan and covered loan losses. Additions to the allowance for loan and covered loan losses are charged to expense through the provision for loan and covered loan losses. The amount of provision

9

depends on a number of factors, including net charge-off levels, loan growth, changes in the composition of the loan portfolio, and the Company’s assessment of the allowance for loan and covered loan losses based on the methodology discussed below.

Allowance for Loan Losses– The allowance for loan losses consists of (i) specific reserves for individual loans where the recorded investment exceeds the value, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) and allowance based on 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. If the value of an impaired loan is less than the recorded book value, the Company either establishes a valuation allowance (i.e., a specific reserve) equal to the excess of the book value over the value of the loan as a component of the allowance for loan losses or charges off the amount if it is a confirmed loss.

The general reserve component is based on a loss migration analysis, which examines actual loss experience by loan category for a rolling 8-quarter period and the related internal risk rating for corporate loans. The loss migration analysis is updated quarterly using actual loss experience. This component is then adjusted based on management’s consideration of many internal and external qualitative factors, including:

• Changes in the composition of the loan portfolio, trends in the volume of loans, and trends in delinquent and non-accrual loans that could indicate that 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 effect of any concentration of credit and changes in the level of concentrations, such as 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.

• The effect of other external factors, such as competition and legal and regulatory requirements, on the Company’s loan portfolio.

Allowance for Covered Loan Losses– The Company’s allowance for covered loan losses reflects the difference between the carrying value and the discounted present value of the estimated cash flows of the covered purchased impaired loans. On a periodic basis, the adequacy of this allowance is determined through a re-estimation of cash flows on all of the outstanding covered purchased impaired loans using either a probability of default/loss given default (“PD/LGD”) methodology or a specific review methodology. The PD/LGD model is an expected loss model that estimates future cash flows using a probability of default curve and loss given default estimates.

Reserve for Unfunded Commitments– The Company also maintains a reserve for unfunded commitments, including letters of credit, for the risk of loss inherent in these arrangements. The reserve for unfunded commitments is estimated using the loss migration analysis from the allowance for loan losses, adjusted for 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 given the difficulty of assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the 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.

FDIC Indemnification Asset – The majority of loans and OREO acquired through FDIC-assisted transactions are covered by loss share agreements with the FDIC (the “FDIC Agreements”), under which the FDIC reimburses the Company for the majority of the losses and eligible expenses related to these assets. The FDIC indemnification asset represents the present value of future expected reimbursements from the FDIC. Since the indemnified items are covered loans and covered OREO, which are initially measured at fair value, the FDIC indemnification asset is also initially measured at fair value by discounting the cash flows expected to be received from the FDIC. These cash flows are estimated by multiplying estimated losses on purchased impaired loans and OREO by the reimbursement rates in the FDIC Agreements.

The balance of the FDIC indemnification asset is adjusted periodically to reflect changes in estimated cash flows. Decreases in estimated reimbursements from the FDIC are recorded prospectively through amortization and increases in estimated reimbursements from the FDIC are recognized by an increase in the carrying value of the indemnification asset. Payments from the FDIC for reimbursement of losses result in a reduction of the FDIC indemnification asset.

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Derivative Financial Instruments – 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. All derivative instruments are recorded at fair value as either other assets or other liabilities in the Consolidated Statements of Financial Condition. Subsequent changes in a derivative’s fair value are recognized in earnings unless specific hedge accounting criteria are met.

On the date the Company enters into a derivative contract, the derivative is designated as a fair value hedge, a cash flow hedge, or a non-hedge derivative instrument. Fair value hedges are designed to mitigate exposure to changes in the fair value of an asset or liability attributable to a particular risk, such as interest rate risk. Cash flow hedges are designed to mitigate exposure to variability in expected future cash flows to be received or paid related to an asset, liability, or other type of forecasted transaction. The Company formally documents all relationships between hedging instruments and hedged items, including its risk management objective and strategy.

At the hedge’s inception and quarterly thereafter, a formal assessment is performed to determine the effectiveness of the derivative in offsetting changes in the fair values or cash flows of the hedged items in the current period and prospectively. If a derivative instrument designated as a hedge is terminated or ceases to be highly effective, hedge accounting is discontinued prospectively, and the gain or loss is amortized into earnings. For fair value hedges, the gain or loss is amortized over the remaining life of the hedged asset or liability. For cash flow hedges, the gain or loss is amortized over the same period that the forecasted hedged transactions impact earnings. If the hedged item is disposed of, any fair value adjustments are included in the gain or loss from the disposition of the hedged item. If the forecasted transaction is no longer probable, the gain or loss is included in earnings immediately.

For effective fair value hedges, changes in the fair value of the derivative instruments, as well as changes in the fair value of the hedged item, are recognized in earnings. For cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of accumulated other comprehensive loss and is reclassified to earnings when the hedged transaction is reflected in earnings.

Ineffectiveness is calculated based on the change in fair value of the hedged item compared with the change in fair value of the hedging instrument. For all types of hedges, any ineffectiveness in the hedging relationship is recognized in earnings during the period the ineffectiveness occurs.

2.  RECENT EVENTS

Acquisitions

On April 22, 2014, First Midwest Bank (the "Bank") entered into a definitive agreement to acquire the Chicago area banking operations of Banco Popular North America (doing business as Popular Community Bank), which is a subsidiary of Popular, Inc. The acquisition includes Popular Community Bank's retail banking offices and its small business and middle market commercial lending activities in the Chicago metropolitan area. As part of the transaction, the Bank will acquire twelve full-service retail branches, approximately $738 million in deposits, and approximately $561 million in loans. The Bank received regulatory approval for this acquisition from the Federal Reserve; however, the acquisition is subject to certain closing conditions and is expected to close in the third quarter of 2014.

Equity Matters

On May 21, 2014, the stockholders of the Company approved an amendment to our Restated Certificate of Incorporation. The amendment increased the Company's authorized common stock by 50,000,000 shares. Following this amendment, the Company is now authorized to issue a total of 151,000,000 shares, including 1,000,000 shares of Preferred Stock, without a par value, and 150,000,000 shares of Common Stock, $0.01 par value per share.

Recent Accounting Pronouncements

Income Taxes: In January of 2014, the Financial Accounting Standards Board ("FASB") issued guidance that requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date or, if the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The guidance is effective for annual and interim reporting periods beginning on or after December 15, 2013, and must be applied

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prospectively. The adoption of this guidance on January 1, 2014 did not impact the Company's financial condition, results of operations, or liquidity.

Receivables - Troubled Debt Restructurings by Creditors: In January of 2014, the FASB issued guidance to clarify when an in substance repossession or foreclosure occurs and an entity is considered to have received physical possession of the residential real estate property such that a loan receivable should be derecognized and the real estate property recognized. Additionally, the guidance requires interim and annual disclosure of the amount of foreclosed residential real estate property held by the entity and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The guidance is effective for annual and interim periods beginning after December 15, 2014 and can be applied retrospectively or prospectively. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity.

Reporting Discontinued Operations: In April of 2014, the FASB issued guidance that requires an entity to report a disposal of a component of an entity or a group of components of an entity in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component of an entity or group of components of an entity (1) meets the criteria to be classified as held for sale, (2) is disposed of by sale, or (3) is disposed of other than by sale. The guidance is effective for annual and interim reporting periods beginning on or after December 15, 2014, and must be applied prospectively. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity.

Revenue from Contracts with Customers: In May of 2014, the FASB issued guidance that requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for annual and interim reporting periods beginning on or after December 15, 2016, and must be applied either retrospectively or using the modified retrospective approach. Management is evaluating the new guidance, but does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity.

Transfers and Servicing: In June of 2014, the FASB issued guidance that requires repurchase-to-maturity transactions to be accounted for as secured borrowings. The guidance also requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty. If the derecognition criteria are met, the initial transfer will generally be accounted for as a sale and the repurchase agreement will generally be accounted for as a secured borrowing. The guidance is effective for annual and interim reporting periods beginning after December 15, 2014. Management is evaluating the new guidance, but does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity.

3.  SECURITIES

Securities are classified as held-to-maturity, trading, or available-for-sale at the time of purchase. Securities classified as held-to-maturity are securities for which management has the positive intent and ability to hold to maturity and are stated at cost.

The Company’s trading securities consist of diversified investment securities reported at fair value that are held in a grantor trust under deferred compensation arrangements that allow plan participants to direct amounts into a variety of securities, including Company stock. Net trading gains represent changes in the fair value of the trading securities portfolio and are included in other noninterest income in the Condensed Consolidated Statements of Income.

All other securities are classified as available-for-sale and 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.

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A summary of the Company's securities portfolio by category and maturity is presented in the following tables.

Securities Portfolio

(Dollar amounts in thousands)

	June 30, 2014									December 31, 2013
	Amortized Cost		Gross Unrealized					Fair  Value		Amortized Cost		Gross Unrealized					Fair  Value
			Gains		Losses							Gains		Losses
Securities Available-for-Sale
U.S. agency securities	$	500	$	1	$	—		$	501	$	500	$	—	$	—		$	500
Collateralized mortgage   obligations (“CMOs”)	448,337		1,919		(8,791		)	441,465		490,962		1,427		(16,621		)	475,768
Other mortgage-backed   securities (“MBSs”)	123,787		4,429		(724		)	127,492		135,097		3,349		(2,282		)	136,164
Municipal securities	432,187		13,319		(1,621		)	443,885		457,318		9,673		(5,598		)	461,393
Trust preferred   collateralized debt   obligations (“CDOs”)	45,023		—		(26,587		)	18,436		46,532		—		(28,223		)	18,309
Corporate debt securities	12,995		2,240		—			15,235		12,999		1,930		—			14,929
Equity securities:
Hedge fund investment	298		518		—			816		1,208		1,971		—			3,179
Other equity securities	2,606		87		(48		)	2,645		2,498		75		(90		)	2,483
Total equity securities	2,904		605		(48		)	3,461		3,706		2,046		(90		)	5,662
Total available-   for-sale securities	$	1,065,733	$	22,513	$	(37,771	)	$	1,050,475	$	1,147,114	$	18,425	$	(52,814	)	$	1,112,725
Securities Held-to-Maturity
Municipal securities	$	26,471	$	605	$	—		$	27,076	$	44,322	$	—	$	(935	)	$	43,387
Trading Securities								$	18,231								$	17,317

Remaining Contractual Maturity of Securities

(Dollar amounts in thousands)

	June 30, 2014
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	32,269	$	31,437	$	2,545	$	2,603
After one year to five years	122,919		119,752		8,748		8,948
After five years to ten years	187,371		182,541		5,917		6,052
After ten years	148,146		144,327		9,261		9,473
Securities that do not have a single contractual maturity date	575,028		572,418		—		—
Total	$	1,065,733	$	1,050,475	$	26,471	$	27,076

The carrying value of securities available-for-sale that were pledged to secure deposits or for other purposes as permitted or required by law totaled $864.6 million at June 30, 2014 and $755.3 million at December 31, 2013. No securities held-to-maturity were pledged as of June 30, 2014 or December 31, 2013.

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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 based on the specific identification method. The following table presents net realized gains on securities.

Securities Gains (Losses)

(Dollar amounts in thousands)

	Quarters Ended   June 30,				Six Months Ended   June 30,
	2014		2013		2014			2013
Gains on sales of securities:
Gross realized gains	$	4,517	$	216	$	5,618		$	216
Gross realized losses	—		—		—			—
Net realized gains on sales of securities	4,517		216		5,618			216
Non-cash impairment charges:
Other-than-temporary securities impairment ("OTTI")	—		—		(28		)	—
Portion of OTTI recognized in other comprehensive   income (loss)	—		—		—			—
Net non-cash impairment charges	—		—		(28		)	—
Net realized gains	$	4,517	$	216	$	5,590		$	216
Net trading gains (1)	$	531	$	214	$	722		$	1,250

⁽¹⁾  All net trading gains relate to trading securities still held as of June 30, 2014 and June 30, 2013 and are included in other income in the Condensed Consolidated Statement of Income.

Net realized gains on sales of securities for the second quarter and first six months of 2014 were $4.5 million and $5.6 million, respectively. During the second quarter of 2014, we sold a CDO at a gain of $3.5 million and several municipal securities at gains of $468,000. In addition, during the first and second quarters of 2014, we sold a portion of the Company's hedge fund investment at gains of $1.1 million and $518,000, respectively.

The non-cash impairment charges in the table above relate to OTTI charges on certain CMOs. Accounting guidance requires that the credit portion of an OTTI charge be recognized through income. If a decline in fair value below carrying value is not attributable to credit deterioration 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 non-credit related portion of the decline in fair value in other comprehensive income (loss).

The following table presents a rollforward of life-to-date OTTI recognized in earnings related to all available-for-sale securities held by the Company for the quarters and six months ended June 30, 2014 and 2013. The majority of the beginning and ending balance of OTTI relates to CDOs currently held by the Company.

Changes in OTTI Recognized in Earnings

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Beginning balance	$	32,450		$	38,803		$	32,422		$	38,803
OTTI included in earnings (1):
Losses on securities that previously had OTTI	—			—			28			—
Losses on securities that did not previously have OTTI	—			—			—			—
Reduction for sales of securities (2)	(8,570		)	(6,750		)	(8,570		)	(6,750		)
Ending balance	$	23,880		$	32,053		$	23,880		$	32,053

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

⁽²⁾  During the second quarter of 2014, one CDO with a carrying value of $1.3 million was sold. In addition, one CDO with a carrying value of zero was sold during the second quarter of 2013. These CDOs had OTTI of $8.6 million and $6.8 million, respectively, that were previously recognized in earnings.

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The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of June 30, 2014 and December 31, 2013.

Securities in an Unrealized Loss Position

(Dollar amounts in thousands)

		Less Than 12 Months				Greater Than 12 Months				Total
	Number of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
As of June 30, 2014
CMOs	54	$	17,978	$	158	$	294,643	$	8,633	$	312,621	$	8,791
Other MBSs	13	383		5		40,986		719		41,369		724
Municipal securities	107	—		—		67,326		1,621		67,326		1,621
CDOs	5	—		—		18,436		26,587		18,436		26,587
Equity securities	1	—		—		2,232		48		2,232		48
Total	180	$	18,361	$	163	$	423,623	$	37,608	$	441,984	$	37,771
As of December 31, 2013
CMOs	67	$	338,064	$	14,288	$	57,269	$	2,333	$	395,333	$	16,621
Other MBSs	19	57,311		2,281		356		1		57,667		2,282
Municipal securities	154	65,370		3,245		27,565		2,353		92,935		5,598
CDOs	6	—		—		18,309		28,223		18,309		28,223
Equity securities	1	2,168		90		—		—		2,168		90
Total	247	$	462,913	$	19,904	$	103,499	$	32,910	$	566,412	$	52,814

Substantially all 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 are supported by third party insurance or some other form of credit enhancement. Management does not believe any individual unrealized loss as of June 30, 2014 represents an OTTI related to credit deterioration. 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 June 30, 2014 reflect the illiquidity of these structured investment vehicles. Management does not believe these unrealized losses represent OTTI related to credit deterioration. In addition, the Company does not intend to sell the CDOs with unrealized losses within a short period of time, 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. 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 11, “Fair Value."

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4.  LOANS

Loans Held-for-Investment

The following table presents the Company's loans held-for-investment by class.

Loan Portfolio

(Dollar amounts in thousands)

	June 30, 2014		December 31, 2013
Commercial and industrial	$	2,073,018	$	1,830,638
Agricultural	330,626		321,702
Commercial real estate:
Office, retail, and industrial	1,312,401		1,353,685
Multi-family	350,430		332,873
Construction	195,109		186,197
Other commercial real estate	798,324		807,071
Total commercial real estate	2,656,264		2,679,826
Total corporate loans	5,059,908		4,832,166
Home equity	485,085		427,020
1-4 family mortgages	241,156		275,992
Installment	57,308		44,827
Total consumer loans	783,549		747,839
Total loans, excluding covered loans	5,843,457		5,580,005
Covered loans (1)	104,867		134,355
Total loans	$	5,948,324	$	5,714,360
Deferred loan fees included in total loans	$	4,051	$	4,656
Overdrawn demand deposits included in total loans	3,980		5,047

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

The Company primarily lends to community-based and mid-sized businesses, commercial real estate customers, and consumers in its markets. 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. A discussion of risk characteristics relevant to each portfolio segment is presented in Note 4, “Loans,” in the Company’s 2013 10-K.

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Loan Sales

The table below summarizes the Company's loan sales for the quarter and six months ended June 30, 2014 and 2013.

Loan Sales

(Dollar amounts in thousands)

	Quarters Ended   June 30,				Six Months Ended   June 30,
	2014		2013		2014		2013
1-4 family mortgage loans
Proceeds from sales	$	33,038	$	29,084	$	84,938	$	85,007
Less book value of loans sold:
Loans originated with intent to sell	20,477		322		35,935		322
Loans held-for-investment	11,713		27,722		47,082		81,679
Total book value of loans sold	32,190		28,044		83,017		82,001
Net gains on sales of 1-4 family mortgages	$	848	$	1,040	$	1,921	$	3,006

The Company retained servicing responsibilities for a portion of the 1-4 family mortgage loans sold and collects servicing fees equal to a percentage of the outstanding principal balance. The Company also retained limited recourse for credit losses on the sold loans. A description of the recourse obligation is presented in Note 10, “Commitments, Guarantees, and Contingent Liabilities.”

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5.  ACQUIRED LOANS

Since 2009, the Company acquired the majority of the assets and assumed the deposits of four financial institutions in FDIC-assisted transactions. In three of those transactions, most loans and OREO acquired are covered by the FDIC Agreements. The significant accounting policies related to purchased impaired loans and the related FDIC indemnification asset are presented in Note 1, “Summary of Significant Accounting Policies.”

Acquired Loans

(Dollar amounts in thousands)

	June 30, 2014						December 31, 2013
	Covered		Non-Covered		Total		Covered		Non-Covered		Total
Purchased impaired loans	$	75,864	$	13,914	$	89,778	$	103,525	$	15,608	$	119,133
Other loans (1)	29,003		14,075		43,078		30,830		17,024		47,854
Total acquired loans	$	104,867	$	27,989	$	132,856	$	134,355	$	32,632	$	166,987

⁽¹⁾  These loans did not meet the criteria to be accounted for as purchased impaired loans.

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 Company was in compliance with those requirements as of June 30, 2014 and December 31, 2013.

Changes in the FDIC Indemnification Asset

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Beginning balance	$	15,537		$	28,958		$	16,585		$	37,051
Amortization	(818		)	(908		)	(2,134		)	(2,232		)
Change in expected reimbursements from the FDIC for changes   in expected credit losses	(629		)	(1,512		)	532			(2,454		)
Payments received from the FDIC	(3,814		)	(3,380		)	(4,707		)	(9,207		)
Ending balance	$	10,276		$	23,158		$	10,276		$	23,158

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

Changes in Accretable Yield

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Beginning balance	$	32,010		$	45,532		$	36,792		$	51,498
Accretion	(3,421		)	(4,456		)	(6,931		)	(8,342		)
Other (1)	6,563			6,028			5,291			3,948
Ending balance	$	35,152		$	47,104		$	35,152		$	47,104

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

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

Past Due and Non-accrual Loans

The following table presents an aging analysis of the Company’s past due loans as of June 30, 2014 and December 31, 2013. 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
June 30, 2014
Commercial and industrial	$	2,059,868	$	8,003	$	5,147	$	13,150	$	2,073,018	$	22,629	$	2,207
Agricultural	330,207		86		333		419		330,626		363		—
Commercial real estate:
Office, retail, and industrial	1,293,378		5,459		13,564		19,023		1,312,401		16,423		—
Multi-family	348,353		625		1,452		2,077		350,430		1,572		231
Construction	187,761		2,271		5,077		7,348		195,109		5,077		—
Other commercial real estate	787,292		4,007		7,025		11,032		798,324		7,930		676
Total commercial real   estate	2,616,784		12,362		27,118		39,480		2,656,264		31,002		907
Total corporate loans	5,006,859		20,451		32,598		53,049		5,059,908		53,994		3,114
Home equity	476,287		3,646		5,152		8,798		485,085		6,580		91
1-4 family mortgages	235,829		2,102		3,225		5,327		241,156		4,091		297
Installment	54,840		382		2,086		2,468		57,308		2,063		31
Total consumer loans	766,956		6,130		10,463		16,593		783,549		12,734		419
Total loans, excluding   covered loans	5,773,815		26,581		43,061		69,642		5,843,457		66,728		3,533
Covered loans	78,725		6,286		19,856		26,142		104,867		13,060		8,464
Total loans	$	5,852,540	$	32,867	$	62,917	$	95,784	$	5,948,324	$	79,788	$	11,997
December 31, 2013
Commercial and industrial	$	1,814,660	$	6,872	$	9,106	$	15,978	$	1,830,638	$	11,767	$	393
Agricultural	321,156		134		412		546		321,702		519		—
Commercial real estate:
Office, retail, and industrial	1,335,027		2,620		16,038		18,658		1,353,685		17,076		1,315
Multi-family	330,960		318		1,595		1,913		332,873		1,848		—
Construction	180,083		23		6,091		6,114		186,197		6,297		—
Other commercial real estate	795,462		5,365		6,244		11,609		807,071		8,153		258
Total commercial real   estate	2,641,532		8,326		29,968		38,294		2,679,826		33,374		1,573
Total corporate loans	4,777,348		15,332		39,486		54,818		4,832,166		45,660		1,966
Home equity	415,791		4,830		6,399		11,229		427,020		6,864		1,102
1-4 family mortgages	268,912		2,046		5,034		7,080		275,992		5,198		548
Installment	42,350		330		2,147		2,477		44,827		2,076		92
Total consumer loans	727,053		7,206		13,580		20,786		747,839		14,138		1,742
Total loans, excluding   covered loans	5,504,401		22,538		53,066		75,604		5,580,005		59,798		3,708
Covered loans	94,211		2,232		37,912		40,144		134,355		20,942		18,081
Total loans	$	5,598,612	$	24,770	$	90,978	$	115,748	$	5,714,360	$	80,740	$	21,789

19

Allowance for Credit Losses

The Company maintains an allowance for credit losses at a level deemed adequate by management to absorb probable losses inherent in the loan portfolio. Refer to Note 1, “Summary of Significant Accounting Policies,” for the accounting policy for the allowance for credit losses. A rollforward of the allowance for credit losses by portfolio segment for the quarters and six months ended June 30, 2014 and 2013 is presented in the table below.

Allowance for Credit Losses by Portfolio Segment

(Dollar amounts in thousands)

	Commercial, Industrial, and Agricultural			Office, Retail, and Industrial			Multi- Family			Construction			Other Commercial Real Estate			Consumer			Covered Loans			Reserve for Unfunded Commitments			Total Allowance
Quarter ended June 30, 2014
Beginning balance	$	27,292		$	13,106		$	1,968		$	5,656		$	9,236		$	11,945		$	11,429		$	1,616		$	82,248
Charge-offs	(2,099		)	(3,511		)	(267		)	(234		)	(561		)	(1,828		)	(279		)	—			(8,779		)
Recoveries	259			290			2			2			89			213			277			—			1,132
Net charge-offs	(1,840		)	(3,221		)	(265		)	(232		)	(472		)	(1,615		)	(2		)	—			(7,647		)
Provision for loan   and covered loan   losses and other	3,742			1,946			345			(539		)	(179		)	2,110			(2,084		)	—			5,341
Ending balance	$	29,194		$	11,831		$	2,048		$	4,885		$	8,585		$	12,440		$	9,343		$	1,616		$	79,942
Quarter ended June 30, 2013
Beginning balance	$	36,544		$	10,695		$	3,704		$	4,667		$	17,757		$	11,997		$	12,227		$	2,866		$	100,457
Charge-offs	(3,116		)	(1,453		)	(213		)	(850		)	(547		)	(2,523		)	(1,980		)	—			(10,682		)
Recoveries	573			35			30			5			329			413			3			—			1,388
Net charge-offs	(2,543		)	(1,418		)	(183		)	(845		)	(218		)	(2,110		)	(1,977		)	—			(9,294		)
Provision for loan   and covered loan   losses and other	(2,259		)	2,580			(97		)	348			(1,370		)	2,480			4,131			—			5,813
Ending balance	$	31,742		$	11,857		$	3,424		$	4,170		$	16,169		$	12,367		$	14,381		$	2,866		$	96,976
Six months ended June 30, 2014
Beginning balance	$	30,381		$	10,405		$	2,017		$	6,316		$	10,817		$	13,010		$	12,559		$	1,616		$	87,121
Charge-offs	(5,779		)	(4,594		)	(357		)	(895		)	(2,332		)	(3,856		)	(524		)	—			(18,337		)
Recoveries	2,419			348			3			160			233			351			862			—			4,376
Net charge-offs	(3,360		)	(4,246		)	(354		)	(735		)	(2,099		)	(3,505		)	338			—			(13,961		)
Provision for loan   and covered loan   losses and other	2,173			5,672			385			(696		)	(133		)	2,935			(3,554		)	—			6,782
Ending balance	$	29,194		$	11,831		$	2,048		$	4,885		$	8,585		$	12,440		$	9,343		$	1,616		$	79,942
Six months ended June 30, 2013
Beginning balance	$	36,761		$	11,432		$	3,575		$	5,242		$	17,512		$	12,862		$	12,062		$	3,366		$	102,812
Charge-offs	(6,291		)	(2,715		)	(378		)	(1,415		)	(3,082		)	(4,887		)	(2,686		)	—			(21,454		)
Recoveries	2,662			37			35			5			1,361			520			11			—			4,631
Net charge-offs	(3,629		)	(2,678		)	(343		)	(1,410		)	(1,721		)	(4,367		)	(2,675		)	—			(16,823		)
Provision for loan   and covered loan   losses and other	(1,390		)	3,103			192			338			378			3,872			4,994			(500		)	10,987
Ending balance	$	31,742		$	11,857		$	3,424		$	4,170		$	16,169		$	12,367		$	14,381		$	2,866		$	96,976

20

The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of June 30, 2014 and December 31, 2013.

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		Purchased Impaired		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Impaired		Total
June 30, 2014
Commercial, industrial, and   agricultural	$	21,726	$	2,380,505	$	1,413	$	2,403,644	$	2,539	$	26,655	$	—	$	29,194
Commercial real estate:
Office, retail, and industrial	15,605		1,296,796		—		1,312,401		1,576		10,255		—		11,831
Multi-family	1,169		349,129		132		350,430		176		1,857		15		2,048
Construction	4,725		190,384		—		195,109		373		4,512		—		4,885
Other commercial real estate	5,748		789,203		3,373		798,324		913		7,672		—		8,585
Total commercial   real estate	27,247		2,625,512		3,505		2,656,264		3,038		24,296		15		27,349
Total corporate loans	48,973		5,006,017		4,918		5,059,908		5,577		50,951		15		56,543
Consumer	—		774,553		8,996		783,549		—		11,887		553		12,440
Total loans, excluding   covered loans	48,973		5,780,570		13,914		5,843,457		5,577		62,838		568		68,983
Covered loans:
Purchased impaired loans	—		—		75,864		75,864		—		—		8,743		8,743
Other loans	—		29,003		—		29,003		—		600		—		600
Total covered loans	—		29,003		75,864		104,867		—		600		8,743		9,343
Reserve for unfunded   commitments	—		—		—		—		—		1,616		—		1,616
Total loans	$	48,973	$	5,809,573	$	89,778	$	5,948,324	$	5,577	$	65,054	$	9,311	$	79,942
December 31, 2013
Commercial, industrial, and   agricultural	$	13,178	$	2,137,440	$	1,722	$	2,152,340	$	4,046	$	26,335	$	—	$	30,381
Commercial real estate:
Office, retail, and industrial	26,348		1,327,337		—		1,353,685		214		10,191		—		10,405
Multi-family	1,296		331,445		132		332,873		18		1,999		—		2,017
Construction	5,712		180,485		—		186,197		178		6,138		—		6,316
Other commercial real estate	9,298		793,703		4,070		807,071		704		10,113		—		10,817
Total commercial   real estate	42,654		2,632,970		4,202		2,679,826		1,114		28,441		—		29,555
Total corporate loans	55,832		4,770,410		5,924		4,832,166		5,160		54,776		—		59,936
Consumer	—		738,155		9,684		747,839		—		13,010		—		13,010
Total loans, excluding   covered loans	55,832		5,508,565		15,608		5,580,005		5,160		67,786		—		72,946
Covered loans:
Purchased impaired loans	—		—		103,525		103,525		—		—		11,857		11,857
Other loans	—		30,830		—		30,830		—		702		—		702
Total covered loans	—		30,830		103,525		134,355		—		702		11,857		12,559
Reserve for unfunded   commitments	—		—		—		—		—		1,616		—		1,616
Total loans	$	55,832	$	5,539,395	$	119,133	$	5,714,360	$	5,160	$	70,104	$	11,857	$	87,121

21

Loans Individually Evaluated for Impairment

The following table presents loans individually evaluated for impairment by class of loan as of June 30, 2014 and December 31, 2013. Purchased impaired loans are excluded from this disclosure.

Impaired Loans Individually Evaluated by Class

(Dollar amounts in thousands)

	June 30, 2014								December 31, 2013
	Recorded Investment In								Recorded Investment In
	Loans with No Specific Reserve		Loans with a Specific Reserve		Unpaid Principal Balance		Specific Reserve		Loans with No Specific Reserve		Loans with a Specific Reserve		Unpaid Principal Balance		Specific Reserve
Commercial and industrial	$	3,381	$	18,345	$	38,524	$	2,539	$	10,047	$	3,131	$	25,887	$	4,046
Agricultural	—		—		—		—		—		—		—		—
Commercial real estate:
Office, retail, and industrial	12,943		2,662		24,416		1,576		23,872		2,476		35,868		214
Multi-family	668		501		1,270		176		1,098		198		1,621		18
Construction	3,552		1,173		6,121		373		4,586		1,126		10,037		178
Other commercial real estate	2,996		2,752		8,891		913		7,553		1,745		11,335		704
Total commercial real   estate	20,159		7,088		40,698		3,038		37,109		5,545		58,861		1,114
Total impaired loans    individually evaluated    for impairment	$	23,540	$	25,433	$	79,222	$	5,577	$	47,156	$	8,676	$	84,748	$	5,160

22

The average recorded investment and interest income recognized on impaired loans by class for the quarters and six months ended June 30, 2014 and 2013 is presented in the following table.

Average Recorded Investment and Interest Income Recognized on Impaired Loans by Class

(Dollar amounts in thousands)

	Quarters Ended June 30,
	2014				2013
	Average Recorded Investment		Interest Income Recognized (1)		Average Recorded Investment		Interest Income Recognized (1)
Commercial and industrial	$	14,581	$	29	$	25,757	$	1
Agricultural	—		—		—		—
Commercial real estate:
Office, retail, and industrial	20,098		6		23,662		6
Multi-family	1,424		2		1,009		—
Construction	4,788		—		6,397		—
Other commercial real estate	6,393		107		13,762		5
Total commercial real estate	32,703		115		44,830		11
Total impaired loans	$	47,284	$	144	$	70,587	$	12
	Six Months Ended June 30,
	2014				2013
	Average Recorded Investment		Interest Income Recognized (1)		Average Recorded Investment		Interest Income Recognized (1)
Commercial and industrial	$	14,113	$	147	$	24,429	$	3
Agricultural	—		—		—		—
Commercial real estate:
Office, retail, and industrial	22,181		147		22,316		10
Multi-family	1,381		2		845		—
Construction	5,096		—		5,850		—
Other commercial real estate	7,361		115		13,353		8
Total commercial real estate	36,019		264		42,364		18
Total impaired loans	$	50,132	$	411	$	66,793	$	21

⁽¹⁾  Recorded using the cash basis of accounting.

23

Credit Quality Indicators

Corporate loans and commitments are assessed for credit risk and assigned ratings based on various characteristics, such as the borrower's cash flow, leverage, and collateral. Ratings for commercial credits are reviewed periodically. The following tables present credit quality indicators by class for corporate and consumer loans, excluding covered loans, as of June 30, 2014 and December 31, 2013.

Corporate Credit Quality Indicators by Class, Excluding Covered Loans

(Dollar amounts in thousands)

	Pass		Special Mention (1) (4)		Substandard (2) (4)		Non-accrual (3)		Total
June 30, 2014
Commercial and industrial	$	1,980,523	$	50,036	$	19,830	$	22,629	$	2,073,018
Agricultural	329,965		298		—		363		330,626
Commercial real estate:
Office, retail, and industrial	1,250,914		24,233		20,831		16,423		1,312,401
Multi-family	344,279		3,862		717		1,572		350,430
Construction	164,789		8,790		16,453		5,077		195,109
Other commercial real estate	758,821		16,218		15,355		7,930		798,324
Total commercial real estate	2,518,803		53,103		53,356		31,002		2,656,264
Total corporate loans	$	4,829,291	$	103,437	$	73,186	$	53,994	$	5,059,908
December 31, 2013
Commercial and industrial	$	1,780,194	$	23,806	$	14,871	$	11,767	$	1,830,638
Agricultural	320,839		344		—		519		321,702
Commercial real estate:
Office, retail, and industrial	1,284,394		28,677		23,538		17,076		1,353,685
Multi-family	326,901		3,214		910		1,848		332,873
Construction	153,949		8,309		17,642		6,297		186,197
Other commercial real estate	761,465		14,877		22,576		8,153		807,071
Total commercial real estate	2,526,709		55,077		64,666		33,374		2,679,826
Total corporate loans	$	4,627,742	$	79,227	$	79,537	$	45,660	$	4,832,166

⁽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 in the future.

⁽²⁾  Loans categorized as substandard exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. These 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 or result in a loss if the deficiencies are not corrected.

⁽⁴⁾  Total special mention and substandard loans includes accruing TDRs of $3.6 million as of June 30, 2014 and $2.8 million as of December 31, 2013.

24

Consumer Credit Quality Indicators by Class, Excluding Covered Loans

(Dollar amounts in thousands)

	Performing		Non-accrual		Total
June 30, 2014
Home equity	$	478,505	$	6,580	$	485,085
1-4 family mortgages	237,065		4,091		241,156
Installment	55,245		2,063		57,308
Total consumer loans	$	770,815	$	12,734	$	783,549
December 31, 2013
Home equity	$	420,156	$	6,864	$	427,020
1-4 family mortgages	270,794		5,198		275,992
Installment	42,751		2,076		44,827
Total consumer loans	$	733,701	$	14,138	$	747,839

TDRs

TDRs are generally performed at the request of the individual borrower and may include forgiveness of principal, reduction in interest rates, changes in payments, and maturity date extensions. The table below presents TDRs by class as of June 30, 2014 and December 31, 2013. A discussion of our accounting policies for TDRs can be found in Note 1, “Summary of Significant Accounting Policies.”

TDRs by Class

(Dollar amounts in thousands)

	As of June 30, 2014						As of December 31, 2013
	Accruing		Non-accrual (1)		Total		Accruing		Non-accrual (1)		Total
Commercial and industrial	$	2,724	$	277	$	3,001	$	6,538	$	2,121	$	8,659
Agricultural	—		—		—		—		—		—
Commercial real estate:
Office, retail, and industrial	178		—		178		10,271		—		10,271
Multi-family	620		242		862		1,038		253		1,291
Construction	—		—		—		—		—		—
Other commercial real estate	448		188		636		4,326		291		4,617
Total commercial real estate	1,246		430		1,676		15,635		544		16,179
Total corporate loans	3,970		707		4,677		22,173		2,665		24,838
Home equity	836		517		1,353		787		512		1,299
1-4 family mortgages	891		476		1,367		810		906		1,716
Installment	—		—		—		—		—		—
Total consumer loans	1,727		993		2,720		1,597		1,418		3,015
Total loans	$	5,697	$	1,700	$	7,397	$	23,770	$	4,083	$	27,853

⁽¹⁾  These TDRs are included in non-accrual loans in the preceding tables.

TDRs are included in the calculation of the allowance for credit losses in the same manner as impaired loans. There were no specific reserves related to TDRs as of June 30, 2014 and there were $2.0 million in specific reserves related to TDRs as of December 31, 2013.

25

During the quarter and six months ended June 30, 2014, there were no material loans that were restructured. The following table presents a summary of loans that were restructured during the quarter and six months ended June 30, 2013.

Loans Restructured During the Period

(Dollar amounts in thousands)

	Number of Loans	Pre- Modification Recorded Investment		Funds Disbursed		Interest and Escrow Capitalized		Charge-offs		Post- Modification Recorded Investment
Quarter ended June 30, 2013
Commercial and industrial	2	$	13,354	$	—	$	—	$	—	$	13,354
Office, retail, and industrial	3	386		—		—		—		386
Multi-family	5	1,275		—		57		—		1,332
Other commercial real estate	5	564		—		—		—		564
Home equity	1	125		—		—		—		125
Total TDRs restructured during the period	16	$	15,704	$	—	$	57	$	—	$	15,761
Six months ended June 30, 2013
Commercial and industrial	4	$	14,070	$	—	$	2	$	—	$	14,072
Office, retail, and industrial	4	601		30		—		—		631
Multi-family	5	1,275		—		57		—		1,332
Construction	2	508		—		—		—		508
Other commercial real estate	5	564		—		—		—		564
Home equity	1	125		—		—		—		125
1-4 family mortgages	1	132		—		4		—		136
Total TDRs restructured during the period	22	$	17,275	$	30	$	63	$	—	$	17,368

Accruing TDRs that do not perform in accordance with their modified terms are transferred to non-accrual. The following table presents TDRs that had payment defaults during the quarters and six months ended June 30, 2014 and 2013 where the default occurred within twelve months of the restructure date.

TDRs That Defaulted Within Twelve Months of the Restructure Date

(Dollar amounts in thousands)

	Quarters Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Commercial and industrial	—	$	—	—	$	—	2	$	125	1	$	350
Other commercial real estate	—	—		1	198		—	—		3	354
Total	—	$	—	1	$	198	2	$	125	4	$	704

26

A rollforward of the carrying value of TDRs for the quarters and six months ended June 30, 2014 and 2013 is presented in the following table.

TDR Rollforward

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Accruing
Beginning balance	$	6,301		$	2,587		$	23,770		$	6,867
Additions	75			2,091			75			3,526
Net payments received	(650		)	(185		)	(1,110		)	(214		)
Returned to performing status	—			—			(18,821		)	(5,037		)
Net transfers from non-accrual	(29		)	3,794			1,783			3,145
Ending balance	5,697			8,287			5,697			8,287
Non-accrual
Beginning balance	1,920			10,405			4,083			10,924
Additions	—			13,670			—			13,842
Net payments received	(23		)	(40		)	(157		)	(535		)
Charge-offs	(152		)	(985		)	(186		)	(1,788		)
Transfers to OREO	(74		)	—			(257		)	(42		)
Loans sold	—			(806		)	—			(806		)
Net transfers to accruing	29			(3,794		)	(1,783		)	(3,145		)
Ending balance	1,700			18,450			1,700			18,450
Total TDRs	$	7,397		$	26,737		$	7,397		$	26,737

For TDRs to be removed from TDR status in the calendar year after the restructuring, the loans must (i) have an interest rate and terms that reflect market conditions at the time of restructuring, and (ii) be in compliance with the modified terms. TDRs that were returned to performing status totaled $18.8 million and $5.0 million for the six months ended June 30, 2014 and 2013, respectively. Loans that were not restructured at market rates and terms, that are not in compliance with the modified terms, or for which there is a concern about the future ability of the borrower to meet its obligations under the modified terms, continue to be separately reported as restructured until paid in full or charged-off.

There were no material commitments to lend additional funds to borrowers with TDRs as of June 30, 2014 and December 31, 2013.

27

7. EARNINGS PER COMMON SHARE

The table below displays the calculation of basic and diluted earnings per share.

Basic and Diluted Earnings per Common Share

(Amounts in thousands, except per share data)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Net income	$	18,500		$	16,176		$	36,164		$	30,818
Net income applicable to non-vested restricted shares	(230		)	(219		)	(455		)	(431		)
Net income applicable to common shares	$	18,270		$	15,957		$	35,709		$	30,387
Weighted-average common shares outstanding:
Weighted-average common shares outstanding (basic)	74,322			74,017			74,235			73,942
Dilutive effect of common stock equivalents	11			7			12			8
Weighted-average diluted common shares outstanding	74,333			74,024			74,247			73,950
Basic earnings per common share	$	0.25		$	0.22		$	0.48		$	0.41
Diluted earnings per common share	$	0.25		$	0.22		$	0.48		$	0.41
Anti-dilutive shares not included in the computation of diluted earnings per common share (1)	1,177			1,447			1,246			1,520

⁽¹⁾  This amount represents outstanding stock options for which the exercise price is greater than the average market price of the Company's common stock.

8.  INCOME TAXES

The following table presents income tax expense and the effective income tax rate for the quarters ended June 30, 2014 and 2013.

Income Tax Expense

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Income before income tax expense	$	27,142		$	24,131		$	52,978		$	45,066
Income tax expense:
Federal income tax expense	$	6,727		$	5,553		$	13,005		$	9,913
State income tax expense	1,915			2,402			3,809			4,335
Total income tax expense	$	8,642		$	7,955		$	16,814		$	14,248
Effective income tax rate	31.8		%	33.0		%	31.7		%	31.6		%

Federal income tax expense and the related effective income tax rate are influenced primarily by the amount of tax-exempt income derived from investment securities and BOLI in relation to pre-tax income and state income taxes. State income tax expense and the related effective income tax rate are driven by the amount of state tax-exempt income in relation to pre-tax income and state tax rules related to consolidated/combined reporting and sourcing of income and expense.

The decrease in the effective income tax rate of 31.8% for the second quarter of 2014 compared to 33.0% for the same period in 2013 was due primarily to a decrease in state income tax expense resulting from an increase in income exempt from state taxes and a decrease in statutory rates.

The Company’s accounting policies for income taxes are included in Note 1, “Summary of Significant Accounting Policies,” and Note 14, “Income Taxes,” in the Company’s 2013 10-K.

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9.  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. The significant accounting policies related to derivative instruments and hedging activities are presented in Note 1, "Summary of Significant Accounting Policies."

Fair Value Hedges

The Company hedges the fair value of fixed rate commercial real estate loans using interest rate swaps through which the Company pays fixed amounts and receives variable amounts. These derivative contracts are designated as fair value hedges.

Fair Value Hedges

(Dollar amounts in thousands)

	June 30, 2014			December 31, 2013
Gross notional amount outstanding	$	14,149		$	14,730
Derivative liability fair value	(1,291		)	(1,472		)
Weighted-average interest rate received	2.06		%	2.08		%
Weighted-average interest rate paid	6.38		%	6.39		%
Weighted-average maturity (in years)	3.27			3.76
Fair value of assets needed to settle derivative transactions (1)	$	1,319		$	1,502

⁽¹⁾  This amount represents the fair value if credit risk related contingent features were triggered.

Hedge ineffectiveness is recognized in other noninterest income in the Condensed Consolidated Statements of Income. For the quarters and six months ended June 30, 2014 and 2013, fair value hedge ineffectiveness was not material.

Cash Flow Hedges

During the second quarter of 2014, the Company hedged $125.0 million of certain corporate variable rate loans using interest rate swaps through which the Company receives fixed amounts and pays variable amounts. The Company also hedged $125.0 million of borrowed funds using two forward starting interest rate swaps through which the Company receives variable amounts and pays fixed amounts. The two forward starting interest rate swaps begin on June 1, 2015 and June 1, 2016 and mature on June 1, 2019. These derivative contracts are designated as cash flow hedges.

Cash Flow Hedges

(Dollar amounts in thousands)

	June 30, 2014			December 31, 2013
Gross notional amount outstanding	$	250,000		$	—
Derivative asset fair value	4			—
Derivative liability fair value	(202		)	—
Weighted-average interest rate received	1.55		%	—
Weighted-average interest rate paid	0.15		%	—
Weighted-average maturity (in years)	4.90			—

The effective portion of gains or losses on cash flow hedges is recorded in accumulated other comprehensive income on an after-tax basis and is subsequently reclassified to interest income or expense in the period that the forecasted hedge impacts earnings. Hedge ineffectiveness is determined using a regressionanalysis at the inception of the hedge relationship and on an ongoing basis. For the quarter ended June 30, 2014, there were no gains or losses related to cash flow hedge ineffectiveness. As of June 30, 2014, the Company estimates that $1.8 million will be reclassified from accumulated other comprehensive income as an increase to interest income over the next twelve months.

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Other Derivative Instruments

The Company also enters into derivative transactions with its commercial customers and simultaneously enters into an offsetting interest rate derivative transaction with a third party. This transaction allows the Company’s customers to effectively convert a variable rate loan into a fixed rate loan. Due to the offsetting nature of these transactions, the Company does not apply hedge accounting treatment. Transaction fees related to commercial customer derivative instruments of $258,000 and $462,000 were recorded in noninterest income for the quarter and six months ended June 30, 2014, respectively. There were no transaction fees recorded for the second quarter of 2013 and $522,000 was recorded for the six months ended June 30, 2013.

Other Derivative Instruments

(Dollar amounts in thousands)

	June 30, 2014			December 31, 2013
Gross notional amount outstanding	$	350,669		$	256,638
Derivative asset fair value	5,019			2,235
Derivative liability fair value	(5,019		)	(2,235		)
Fair value of assets needed to settle derivative transactions (1)	5,089			1,305

⁽¹⁾  This amount represents the fair value if credit risk related contingent features were triggered.

The Company’s derivative portfolio also includes other derivative instruments that do not receive hedge accounting treatment, such as commitments to originate 1-4 family mortgage loans and foreign exchange contracts. In addition, the Company occasionally enters into risk participation agreements with counterparty banks to transfer or assume a portion of the credit risk related to customer transactions. The amounts of these instruments were not material for any periods presented. The Company had no other derivative instruments as of June 30, 2014 or December 31, 2013. The Company does not enter into derivative transactions for purely speculative purposes.

Credit Risk

Derivative instruments are inherently subject to credit risk, which represents the Company’s risk of loss when the counterparty to a derivative contract fails to perform according to the terms of the agreement. Credit risk is managed by limiting and collateralizing the aggregate amount of net unrealized losses by transaction, monitoring the size and the maturity structure of the derivatives, and applying uniform credit standards. Company policy establishes limits on credit exposure to any single counterparty. In addition, the Company established bilateral collateral agreements with derivative counterparties that provide for exchanges of marketable securities or cash to collateralize either party’s net losses above a stated minimum threshold.

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Certain derivative instruments are subject to master netting agreements with counterparties. The Company records these transactions at their gross fair values and does not offset derivative assets and liabilities on the Consolidated Statements of Condition. The following table presents the Company's derivatives and offsetting positions as of June 30, 2014 and December 31, 2013.

Offsetting Derivatives

(Dollar amounts in thousands)

	Derivative Assets						Derivative Liabilities
	Fair Value						Fair Value
	June 30, 2014			December 31, 2013			June 30, 2014			December 31, 2013
Gross amounts recognized	$	5,023		$	2,235		$	6,512		$	3,707
Less: Amounts offset in the Consolidated Statements of   Financial Condition	—			—			—			—
Net amount presented in the Consolidated Statements of   Financial Condition (1)	5,023			2,235			6,512			3,707
Gross amounts not offset in the Consolidated Statements of Financial Condition
Offsetting derivative positions	(79		)	(704		)	(79		)	(704		)
Cash collateral pledged	—			—			(6,433		)	(3,003		)
Net credit exposure	$	4,944		$	1,531		$	—		$	—

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

As of June 30, 2014 and December 31, 2013, the Company’s derivative instruments generally contained provisions that require the Company’s debt to remain above a certain credit rating by each of the major credit rating agencies or that the Company maintain certain capital levels. If the Company’s debt were to fall below that credit rating or the Company's capital were to fall below the required levels, it would be in violation of those provisions, and the counterparties to the derivative instruments could terminate the swap transaction and demand cash settlement of the derivative instrument in an amount equal to the derivative liability fair value. As of June 30, 2014 and December 31, 2013, the Company was not in violation of these provisions.

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10.  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, including commitments to extend credit and standby and commercial letters of credit. These instruments involve 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)

	June 30, 2014		December 31, 2013
Commitments to extend credit:
Commercial, industrial, and agricultural	$	1,140,571	$	1,077,201
Commercial real estate	125,437		133,867
Home equity	283,761		268,311
Other commitments (1)	179,969		181,702
Total commitments to extend credit	$	1,729,738	$	1,661,081
Standby letters of credit	$	110,715	$	110,453
Recourse on assets sold:
Unpaid principal balance of loans sold	$	179,981	$	170,330
Carrying value of recourse obligation (2)	163		162

⁽¹⁾  Other commitments includes installment and overdraft protection program commitments.

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

Commitments to extend credit are agreements to lend funds to a customer, subject to contractual terms and covenants. Commitments generally have fixed expiration dates or other termination clauses, variable interest rates, and fee requirements, when applicable. Since many of the commitments are expected to expire without being drawn, the total commitment amounts do not necessarily represent future cash flow requirements.

In the event of a customer's non-performance, the Company's credit loss exposure is equal to the contractual amount of the commitments. The credit risk is essentially the same as extending loans to customers. The Company uses the same credit policies for credit commitments as its loans and minimizes exposure to credit loss through various collateral requirements.

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 on the failure of the customer to perform according to the terms of the contract with the third party and are 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.

As a result of the sale of certain 1-4 family mortgage loans, the Company is contractually obligated to repurchase any non-performing loans or loans that do not meet underwriting requirements at recorded value. In accordance with the sales agreements, there is no limitation to the maximum potential future payments or expiration of the Company's recourse obligation. There were no material loan repurchases during the quarters ended June 30, 2014 and 2013.

Legal Proceedings

In the ordinary course of business, there were certain legal proceedings pending against the Company and its subsidiaries at June 30, 2014. 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.

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11.  FAIR VALUE

Fair value represents the amount expected to 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, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Statements of Financial Condition. Those assets and liabilities are presented below in the sections titled "Assets and Liabilities Required to be Measured at Fair Value on a Recurring Basis" and "Assets and Liabilities Required to be Measured at Fair Value on a Non-Recurring Basis."

Other assets and liabilities are not required to be measured at fair value in the Consolidated Statements of Financial Condition, but must be disclosed at fair value. Refer to the "Fair Value Measurements of Other Financial Instruments" section of this footnote. Any aggregation of the estimated fair values presented in this footnote does not represent the 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 provides 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. Assets and liabilities may change levels within the fair value hierarchy due to market conditions or other circumstances. Those 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 fair value for assets and liabilities required to be measured at fair value on a recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy.

Recurring Fair Value Measurements

(Dollar amounts in thousands)

	June 30, 2014						December 31, 2013
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Trading securities:
Money market funds	$	1,369	$	—	$	—	$	1,847	$	—	$	—
Mutual funds	16,862		—		—		15,470		—		—
Total trading securities	18,231		—		—		17,317		—		—
Securities available-for-sale:
U.S. Agency securities	—		501		—		—		500		—
CMOs	—		441,465		—		—		475,768		—
Other MBSs	—		127,492		—		—		136,164		—
Municipal securities	—		443,885		—		—		461,393		—
CDOs	—		—		18,436		—		—		18,309
Corporate debt securities	—		15,235		—		—		14,929		—
Hedge fund investment	—		816		—		—		3,179		—
Other equity securities	44		2,601		—		44		2,439		—
Total securities   available-for-sale	44		1,031,995		18,436		44		1,094,372		18,309
Mortgage servicing rights (1)	—		—		1,885		—		—		1,893
Derivative assets (1)	—		5,023		—		—		2,235		—
Liabilities:
Derivative liabilities (2)	$	—	$	6,512	$	—	$	—	$	3,707	$	—

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

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

The following sections describe the specific valuation techniques and inputs used to measure financial assets and liabilities at fair value.

Trading Securities

The Company's trading securities consist of diversified investment securities held in a grantor 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 is classified in level 1 of the fair value hierarchy.

Securities Available-for-Sale

The Company’s available-for-sale 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.

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.

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CDOs are classified in level 3 of the fair value hierarchy. The Company estimates the fair values for each CDO using discounted cash flow analyses with the assistance of a structured credit valuation firm. This methodology relies 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 inputs, including prepayment assumptions, default probabilities, loss given default assumptions, and deferral cure probabilities. The cash flows for each Issuer are then discounted to present values using LIBOR plus an adjustment to reflect the higher risk inherent in these securities given their complex structures and the impact of market factors. Finally, the discounted cash flows for each Issuer are aggregated to derive the estimated fair value for the specific CDO. Information for each CDO, as well as the significant unobservable assumptions, is presented in the following table.

Characteristics of CDOs and Significant Unobservable Inputs

Used in the Valuation of CDOs as of June 30, 2014

(Dollar amounts in thousands)

	CDO Number
	1			2			3			4			5
Characteristics:
Class	C-1			C-1			C-1			B1			C
Original par	$	17,500		$	15,000		$	15,000		$	15,000		$	6,500
Amortized cost	7,140			5,598			12,377			13,729			6,179
Fair value	4,849			662			4,641			5,838			2,446
Lowest credit rating (Moody’s)	Ca			Ca			Ca			Ca			Ca
Number of underlying Issuers	43			54			57			58			75
Percent of Issuers currently   performing	83.7		%	79.6		%	75.4		%	55.2		%	73.3		%
Current deferral and default percent (1)	8.7		%	11.4		%	11.8		%	29.8		%	22.5		%
Expected future deferral and   default percent (2)	12.3		%	12.0		%	15.2		%	22.3		%	9.8		%
Excess subordination percent (3)	—		%	—		%	—		%	1.5		%	11.4		%
Discount rate risk adjustment (4)	12.5		%	14.3		%	13.3		%	11.8		%	12.3		%
Significant unobservable inputs, weighted average of Issuers:
Probability of prepayment	15.2		%	7.6		%	4.4		%	6.1		%	3.5		%
Probability of default	18.5		%	23.1		%	21.2		%	28.3		%	28.8		%
Loss given default	88.2		%	83.4		%	89.4		%	92.9		%	96.2		%
Probability of deferral cure	23.2		%	17.7		%	31.3		%	41.1		%	27.6		%

⁽¹⁾  Represents actual deferrals and defaults, net of recoveries, as a percent of the original collateral.

⁽²⁾  Represents expected future deferrals and defaults, net of recoveries, as a percent of the remaining performing collateral. 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.

⁽³⁾  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.

⁽⁴⁾  Cash flows are discounted at LIBOR plus this adjustment to reflect the higher risk inherent in these securities.

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 estimate 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.

The likelihood that 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.

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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.

Management 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. Management also reviews market activity for the same or similar tranches of the CDOs, when available. Annually, management validates significant assumptions by reviewing detailed back-testing performed by the structured credit valuation firm.

A rollforward of the carrying value of CDOs for the quarters and six months ended June 30, 2014 and 2013 is presented in the following table.

Rollforward of the Carrying Value of CDOs

(Dollar amounts in thousands)

	Quarters Ended   June 30,					Six Months Ended   June 30,
	2014			2013		2014			2013
Beginning balance	$	21,666		$	12,924	$	18,309		$	12,129
Change in other comprehensive income (loss) (1)	(1,721		)	1,993		1,636			2,788
Purchases, sales, issuances, settlements, and paydowns (2)	(1,509		)	—		(1,509		)	—
Ending balance	$	18,436		$	14,917	$	18,436		$	14,917
Change in unrealized losses recognized in earnings related to   securities still held at end of period	$	—		$	—	$	—		$	—

⁽¹⁾  Included in unrealized holding gains (losses) in the Consolidated Statements of Comprehensive Income.

⁽²⁾  During the second quarter of 2014, one CDO with a carrying value of $1.3 million was sold. In addition, one CDO with a carrying value of zero was sold during the second quarter of 2013.

Mortgage Servicing Rights

The Company services loans for others totaling $219.3 million as of June 30, 2014 and $214.5 million as of December 31, 2013. 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 Note 21, “Fair Value,” in the Company’s 2013 10-K.

Derivative Assets and Derivative Liabilities

The Company enters into interest rate swaps and derivative transactions with commercial customers. These derivative transactions are executed in the dealer market, and pricing is based on market quotes obtained from the counterparties. 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.

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

The following table provides the 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 by level in the fair value hierarchy.

Non-Recurring Fair Value Measurements

(Dollar amounts in thousands)

	June 30, 2014						December 31, 2013
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Collateral-dependent impaired loans (1)	$	—	$	—	$	23,111	$	—	$	—	$	13,103
OREO (2)	—		—		16,266		—		—		13,347
Loans held-for-sale (3)	—		—		21,125		—		—		4,739
Assets held-for-sale (4)	—		—		4,318		—		—		4,027

⁽¹⁾  Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented.

⁽²⁾  Includes OREO and covered OREO with fair value adjustments subsequent to initial transfer that occurred during the periods presented.

⁽³⁾  Included in other assets in the Consolidated Statements of Financial Condition.

⁽⁴⁾  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 loan 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. Based on the age and/or type, appraisals may be adjusted in the range of 0% to 20%. 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.

OREO

The fair value of OREO is measured using the current appraised value of the properties. In certain circumstances, a current appraisal may not be available or 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) most recent 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.

Loans Held-for-Sale

As of June 30, 2014, loans held-for-sale consisted of 1-4 family mortgage loans, which were originated with the intent to sell, and one commercial real estate credit relationship, which was transferred to the held-for-sale category at the contract price. Accordingly, these loans are classified in level 3 of the fair value hierarchy. As of December 31, 2013, loans held-for-sale consists of 1-4 family mortgage loans and one commercial real estate loan.

Assets Held-for-Sale

Assets held-for-sale consist of former branches that are no longer in operation, which were transferred into the held-for-sale category at the lower of their fair value as determined by a current appraisal or their recorded investment. Based on these valuation methods, they are classified in level 3 of the fair value hierarchy.

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Financial Instruments Not Required to be Measured at Fair Value

For certain financial instruments that are not required to be measured at fair value in the Consolidated Statements of Financial Condition, the Company must disclose the estimated fair values and the level within the fair value hierarchy as shown in the following table.

Fair Value Measurements of Other Financial Instruments

(Dollar amounts in thousands)

		June 30, 2014				December 31, 2013
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and due from banks	1	$	155,099	$	155,099	$	110,417	$	110,417
Interest-bearing deposits in other banks	2	322,874		322,874		476,824		476,824
Securities held-to-maturity	2	26,471		27,076		44,322		43,387
FHLB and Federal Reserve Bank stock	2	35,588		35,588		35,161		35,161
Net loans	3	5,869,998		5,775,061		5,628,855		5,544,146
FDIC indemnification asset	3	10,276		2,464		16,585		7,829
Investment in BOLI	3	194,502		194,502		193,167		193,167
Accrued interest receivable	3	23,633		23,633		25,735		25,735
Other interest earning assets	3	5,117		5,297		6,550		6,809
Liabilities:
Deposits	2	$	6,895,250	$	6,892,876	$	6,766,101	$	6,765,404
Borrowed funds	2	104,201		104,201		224,342		226,839
Senior and subordinated debt	1	190,996		193,628		190,932		201,147
Accrued interest payable	2	2,164		2,164		2,400		2,400

Management uses various methodologies and assumptions to determine the estimated fair values of the financial instruments in the table above. 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 specific 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, other short-term investments, accrued interest receivable, and accrued interest payable.

Securities Held-to-Maturity - The fair value of securities held-to-maturity is estimated using the present value of future cash flows of the remaining maturities of the securities.

FHLB and Federal Reserve Bank Stock - The carrying amounts approximate fair value.

Net Loans - 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. The primary impact of credit risk on the fair value of the loan portfolio was accommodated through the use of the allowance for loan and covered loan losses, which is believed to represent the current fair value of estimated inherent losses in the loan portfolio.

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 in the FDIC Agreements.

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Investment in BOLI - The fair value of the investment in 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 from 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.

Other Interest-Earning Assets - The fair value of other interest-earning assets is estimated using the present value of the future cash flows of the remaining maturities of the assets.

Deposits - The fair values disclosed for deposits, savings deposits, NOW accounts, and money market deposits are 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 FHLB advances is estimated by discounting the agreements based on maturities using the rates currently offered for FHLB advances of similar remaining maturities adjusted for prepayment penalties that would be incurred if the borrowings were paid off on the measurement date. The carrying amounts of securities sold under agreements to repurchase approximate their fair value due to their short-term nature.

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

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

12.  SUBSEQUENT EVENTS

On July 7, 2014, the Company entered into a definitive agreement to acquire the south suburban Chicago-based Great Lakes Financial Resources, Inc., the holding company for Great Lakes Bank, National Association. As part of the acquisition, the Company will acquire eight locations, approximately $490 million in deposits, and $234 million in loans. The merger consideration will be a combination of Company stock and cash, with an overall transaction value of approximately $58.0 million, subject to certain adjustments based on the stock price of the Company prior to closing. The acquisition is subject to approval by the stockholders of Great Lakes Financial Resources, Inc., customary regulatory approvals, and certain closing conditions, and is expected to close before the end of 2014.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

INTRODUCTION

First Midwest Bancorp, Inc. (the “Company”) 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, commercial real estate, and municipal customers through approximately 90 banking offices. 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.

The following discussion and analysis is intended to address the significant factors affecting our results of operations and financial condition for the quarters and six months ended June 30, 2014 and 2013. 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. 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 2013 Annual Report on Form 10-K (“2013 10-K”). The results of operations for the quarter and six months ended June 30, 2014 are not necessarily indicative of future results.

Our results of operations are affected by various factors, many of which are beyond our control, including interest rates, local and national economic conditions, business spending, consumer confidence, certain seasonal factors, legislative and regulatory changes, and changes in real estate and securities markets. Our management evaluates performance using a variety of qualitative and quantitative metrics. The primary quantitative metrics used by management include:

• Net Interest Income - Net interest income, our primary source of revenue, equals the difference between interest income and fees earned on interest-earning assets and interest expense incurred on interest-bearing liabilities.

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

• Noninterest Income - Noninterest income is the income we earn from fee-based revenues, investment in bank-owned life insurance ("BOLI") and other income, and non-operating revenues.

• Asset Quality - Asset quality represents an estimation of the quality of our loan portfolio, including an assessment of the credit risk related to existing and potential loss exposure, and can be evaluated using a number of quantitative measures, such as non-performing loans to total loans.

• Regulatory Capital - Our regulatory capital is currently classified in one of the following two tiers: (i) Tier 1 capital consists of common equity, retained earnings, 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.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of words such as “may,” “might,” “will,” “would,” “should,” “could,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “probable,” “potential,” “possible,” or “continue” and words of similar import. Forward-looking statements are not historical facts but instead express only management’s beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management’s control. It is possible that actual results and events may differ, possibly materially, from the anticipated results or events indicated in these forward-looking statements. Forward-looking statements are not guarantees of future performance, and we caution you not to place undue reliance on these statements. Forward-looking statements are made only as of the date of this report, and we undertake no obligation to update any forward-looking statements contained in this report to reflect new information or events or conditions after the date hereof.

Forward-looking statements may be deemed to include, among other things, statements relating to our future financial performance, the performance of our loan or securities portfolio, the expected amount of future credit reserves or charge-offs, corporate strategies or objectives, anticipated trends in our business, regulatory developments, pending acquisition transactions, and growth strategies, including possible future acquisitions. These statements are subject to certain risks, uncertainties and assumptions. For a discussion of these risks, uncertainties and assumptions, you should refer to the sections entitled “Risk Factors” and “Management’s Discussion

40

and Analysis of Financial Condition and Results of Operations” in this report and in our 2013 10-K, as well as our subsequent filings made with the Securities and Exchange Commission ("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.

CRITICAL ACCOUNTING POLICIES

Our consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles ("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 may affect the amounts reported in the financial statements.

For additional information regarding critical accounting policies, refer to “Summary of Significant Accounting Policies,” presented in Note 1 to the Condensed Consolidated Financial Statements and the section titled “Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s 2013 10-K. There have been no significant changes in the Company’s application of critical accounting policies related to the allowance for credit losses, valuation of securities, and income taxes since December 31, 2013.

PERFORMANCE OVERVIEW

Table 1

Selected Financial Data

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

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Operating Results
Interest income	$	72,003		$	71,753		$	141,693		$	142,798
Interest expense	5,696			6,823			11,691			14,020
Net interest income	66,307			64,930			130,002			128,778
Provision for loan and covered loan losses	5,341			5,813			6,782			11,487
Noninterest income	31,193			27,441			58,443			55,016
Noninterest expense	65,017			62,427			128,685			127,241
Income before income tax expense	27,142			24,131			52,978			45,066
Income tax expense	8,642			7,955			16,814			14,248
Net income	$	18,500		$	16,176		$	36,164		$	30,818
Weighted-average diluted common shares outstanding	74,333			74,024			74,247			73,950
Diluted earnings per common share	$	0.25		$	0.22		$	0.48		$	0.41
Performance Ratios (1)
Return on average common equity	7.08		%	6.66		%	7.03		%	6.42		%
Return on average assets	0.88		%	0.79		%	0.87		%	0.76		%
Net interest margin – tax equivalent	3.65		%	3.70		%	3.63		%	3.73		%
Efficiency ratio (2)	63.60		%	64.27		%	65.09		%	65.38		%

⁽¹⁾  All ratios are presented on an annualized basis.

⁽²⁾  The efficiency ratio expresses noninterest expense, excluding other real estate owned (“OREO”) expense, as a percentage of tax-equivalent net interest income plus total fee-based revenues, other income, net trading gains, and tax-equivalent adjusted BOLI income. Net securities gains are excluded from the efficiency ratio. The $2.1 million loss on the prepayment of Federal Home Loan Bank ("FHLB") advances and $830,000 of acquisition-related expenses are excluded from the efficiency ratio for the quarter and six months ended June 30, 2014.

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	June 30, 2014			December 31, 2013			June 30, 2013			June 30, 2014   Change From
										December 31, 2013		June 30, 2013
Balance Sheet Highlights
Total assets	$	8,305,247		$	8,253,407		$	8,343,325		$	51,840	$	(38,078	)
Total loans, excluding covered loans	5,843,457			5,580,005			5,287,565			263,452		555,892
Total loans, including covered loans	5,948,324			5,714,360			5,459,426			233,964		488,898
Total deposits	6,895,250			6,766,101			6,866,747			129,149		28,503
Transactional deposits	5,748,699			5,558,318			5,555,489			190,381		193,210
Loans-to-deposits ratio	86.3		%	84.5		%	79.5		%
Transactional deposits to total deposits	83.4		%	82.1		%	80.9		%

	June 30, 2014			December 31, 2013			June 30, 2013			June 30, 2014   Change From
										December 31, 2013			June 30, 2013
Asset Quality Highlights
Non-accrual loans (1)	$	66,728		$	59,798		$	89,193		$	6,930		$	(22,465	)
90 days or more past due loans   (still accruing interest) (1)	3,533			3,708			3,832			(175		)	(299		)
Total non-performing loans (1)	70,261			63,506			93,025			6,755			(22,764		)
Accruing troubled debt   restructurings ("TDRs") (1)	5,697			23,770			8,287			(18,073		)	(2,590		)
OREO (1)	30,331			32,473			39,497			(2,142		)	(9,166		)
Total non-performing assets (1)	$	106,289		$	119,749		$	140,809		$	(13,460	)	$	(34,520	)
30-89 days past due loans (still accruing   interest) (1)	$	24,167		$	20,742		$	21,756		$	3,425		$	2,411
Performing potential problem loans (1)(2)	173,005			155,954			190,877			17,051			(17,872		)
Allowance for credit losses	79,942			87,121			96,976			(7,179		)	(17,034		)
Allowance for credit losses to loans	1.34		%	1.52		%	1.78		%
Allowance for credit losses to loans (1)	1.21		%	1.34		%	1.56		%
Allowance for credit losses to   non-accrual loans (1)	105.80		%	124.69		%	92.60		%

⁽¹⁾  Excludes covered loans and covered OREO. For a discussion of covered loans and covered OREO, refer to Note 5 of “Notes to Condensed Consolidated Financial Statements” in Part I, 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 below.

⁽²⁾  Total performing potential problem loans excludes accruing TDRs of $3.6 million as of June 30, 2014, $2.8 million as of December 31, 2013, and $2.8 million as of June 30, 2013.

Net income for the second quarter of 2014 was $18.5 million, or $0.25 per share, compared to $16.2 million, or $0.22 per share, for the second quarter of 2013. For the first six months of 2014, net income was $36.2 million, or $0.48 per share, compared to $30.8 million, or $0.41 per share, for the same period in 2013.

The growth in net income from the second quarter of 2013 resulted primarily from a $1.4 million rise in net interest income and a $3.8 million increase in noninterest income. For the first six months of 2014, the rise in net income benefited from a $3.4 million increase in noninterest income as well as a $4.7 million reduction in the provision for loan and covered loan losses. Compared to both prior periods, growth in noninterest income more than offset higher levels of noninterest expense that included $830,000 of expenses related to recently announced, pending acquisitions. A discussion of net interest income, noninterest income, and noninterest expense is presented in the following section titled "Earnings Performance."

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Total loans, excluding covered loans, of $5.8 billion rose by $263.5 million, or 9.4% on an annualized basis, from December 31, 2013. Both corporate and consumer loan portfolios continue to benefit from well-balanced growth distributed across the majority of the categories, reflecting credits of varying size within our market footprint.

Non-performing assets, excluding covered loans and covered OREO, decreased $13.5 million, or 11.2%, from December 31, 2013, due primarily to lower levels of accruing TDRs. Non-accrual loans increased $6.9 million from December 31, 2013 and declined $22.5 million from June 30, 2013. Two accruing TDRs totaling $18.8 million were returned to performing status due to sustained payment performance in accordance with their modified terms, which represent market rates at the time of restructuring. Performing potential problem loans were 3.42% of corporate loans at June 30, 2014, compared to 3.23% at December 31, 2013 and 4.16% at June 30, 2013. Refer to the “Loan Portfolio and Credit Quality” section below for further discussion of our loan portfolio, non-accrual loans, 90 days past due loans, TDRs, OREO, and performing potential problem loans.

EARNINGS PERFORMANCE

Net Interest Income

Net interest income is our primary source of revenue and is impacted by interest rates and the volume and mix of interest-earning assets and interest-bearing liabilities. The accounting policies for 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 2013 10-K.

Our accounting and reporting policies conform to GAAP and general practices within the banking industry. For purposes of this discussion, both net interest income and net interest margin have been 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 Tables 2 and 3.

Table 2 summarizes our average interest-earning assets and interest-bearing liabilities for the quarters ended June 30, 2014and 2013, 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 quarter and the extent to which any changes are attributable to volume and rate fluctuations. Table 3 presents this same information for the six months ended June 30, 2014 and 2013.

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Table 2

Net Interest Income and Margin Analysis

(Dollar amounts in thousands)

	Quarters Ended June 30,												Attribution of Change in Net Interest Income (1)
	2014						2013
	Average Balance			Interest		Yield/ Rate (%)	Average Balance			Interest		Yield/ Rate (%)	Volume			Yield/ Rate			Total
Assets:
Other interest-earning assets	$	532,900		$	369	0.28	$	674,849		$	468	0.28	$	(69	)	$	(30	)	$	(99	)
Trading securities	17,913			28		0.63	15,610			24		0.61	4			—			4
Investment securities (2)	1,113,201			10,256		3.69	1,256,813			10,164		3.23	(421		)	513			92
FHLB and Federal Reserve   Bank stock	35,517			348		3.92	40,998			342		3.34	(20		)	26			6
Loans (2)(3)	5,902,953			63,901		4.34	5,383,891			63,829		4.76	4,954			(4,882		)	72
Total interest-earning assets (2)	7,602,484			74,902		3.95	7,372,161			74,827		4.07	4,448			(4,373		)	75
Cash and due from banks	117,108						124,996
Allowance for loan and   covered loan losses	(79,071		)				(98,006		)
Other assets	776,148						860,502
Total assets	$	8,416,669					$	8,259,653
Liabilities and Stockholders’ Equity:
Savings deposits	$	1,189,722		203		0.07	$	1,144,093		208		0.07	8			(13		)	(5		)
NOW accounts	1,196,712			152		0.05	1,166,227			168		0.06	4			(20		)	(16		)
Money market deposits	1,334,700			365		0.11	1,274,062			434		0.14	22			(91		)	(69		)
Time deposits	1,168,898			1,791		0.61	1,331,499			2,193		0.66	(256		)	(146		)	(402		)
Borrowed funds	164,605			169		0.41	204,449			385		0.76	(153		)	(63		)	(216		)
Senior and subordinated debt	190,981			3,016		6.33	214,828			3,435		6.41	(377		)	(42		)	(419		)
Total interest-bearing   liabilities	5,245,618			5,696		0.44	5,335,158			6,823		0.51	(752		)	(375		)	(1,127		)
Demand deposits	2,069,781						1,880,476
Other liabilities	66,681						83,518
Stockholders’ equity - common	1,034,589						960,501
Total liabilities and   stockholders’ equity	$	8,416,669					$	8,259,653
Net interest income/margin (2)				$	69,206	3.65				$	68,004	3.70	$	5,200		$	(3,998	)	$	1,202
Net interest income (GAAP)				$	66,307					$	64,930
Tax equivalent adjustment				2,899						3,074
Tax-equivalent net interest   income				$	69,206					$	68,004

⁽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⁾  This item includes covered interest-earning assets consisting of loans acquired through the Company’s Federal Deposit Insurance Corporation (“FDIC”)-assisted transactions with loss share agreements and the related FDIC indemnification asset. For additional discussion, please refer to Note 5 of “Notes to the Condensed Consolidated Financial Statements” in Part I, Item 1 of this Form 10-Q.

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Table 3

Net Interest Income and Margin Analysis

(Dollar amounts in thousands)

	Six Months Ended June 30,												Attribution of Change in Net Interest Income (1)
	2014						2013
	Average Balance			Interest		Yield/ Rate (%)	Average Balance			Interest		Yield/ Rate (%)	Volume			Yield/ Rate			Total
Assets:
Other interest-earning assets	$	535,007		$	751	0.28	$	629,761		$	902	0.29	$	(88	)	$	(64	)	$	(152	)
Trading securities	17,693			56		0.63	14,987			60		0.80	20			(24		)	(4		)
Investment securities (2)	1,140,351			20,658		3.62	1,216,163			20,104		3.31	(1,030		)	1,584			554
FHLB and Federal Reserve   Bank stock	35,341			683		3.87	44,098			681		3.09	(8		)	10			2
Loans (2)(3)	5,813,203			125,420		4.35	5,377,995			127,279		4.77	8,207			(10,066		)	(1,859		)
Total interest-earning assets (2)	7,541,595			147,568		3.94	7,283,004			149,026		4.12	7,101			(8,560		)	(1,459		)
Cash and due from banks	114,319						117,576
Allowance for loan and   covered loan losses	(82,878		)				(98,543		)
Other assets	776,913						863,961
Total assets	$	8,349,949					$	8,165,998
Liabilities and Stockholders’ Equity:
Savings deposits	$	1,174,765		405		0.07	$	1,125,755		455		0.08	21			(71		)	(50		)
NOW accounts	1,189,047			322		0.05	1,155,912			343		0.06	11			(32		)	(21		)
Money market deposits	1,323,412			785		0.12	1,262,712			904		0.14	46			(165		)	(119		)
Time deposits	1,182,598			3,596		0.61	1,352,894			4,621		0.69	(548		)	(477		)	(1,025		)
Borrowed funds	193,388			552		0.58	202,183			827		0.82	(175		)	(100		)	(275		)
Senior and subordinated debt	190,965			6,031		6.37	214,812			6,870		6.45	(754		)	(85		)	(839		)
Total interest-bearing   liabilities	5,254,175			11,691		0.45	5,314,268			14,020		0.53	(1,399		)	(930		)	(2,329		)
Demand deposits	1,999,426						1,811,036
Other liabilities	71,299						86,379
Stockholders’ equity - common	1,025,049						954,315
Total liabilities and   stockholders’ equity	$	8,349,949					$	8,165,998
Net interest income/margin (2)				$	135,877	3.63				$	135,006	3.73	$	8,500		$	(7,630	)	$	870
Net interest income (GAAP)				$	130,002					$	128,778
Tax equivalent adjustment				5,875						6,228
Tax-equivalent net interest   income				$	135,877					$	135,006

⁽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⁾  This item includes covered interest-earning assets consisting of loans acquired through the Company’s Federal Deposit Insurance Corporation (“FDIC”)-assisted transactions with loss share agreements and the related FDIC indemnification asset. For additional discussion, please refer to Note 5 of “Notes to the Condensed Consolidated Financial Statements” in Part I, Item 1 of this Form 10-Q.

Total interest-earning assets for the second quarter of 2014 increased by $230.3 million from the second quarter of 2013 and $258.6 million for the first six months of 2014 compared to the same period in 2013. The rise compared to both prior periods was driven by growth in the loan portfolio, which was funded by other interest-earning assets, cash flows from maturities of investment securities, and the increase in core deposits, which consists of demand, savings, NOW accounts, and money market deposits.

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The reduction in interest-bearing liabilities for both periods resulted primarily from lower levels of time deposits and the repurchase and retirement of $24.0 million of junior subordinated debentures with a rate of 6.95% during the fourth quarter of 2013, which mitigated the impact of the rise in interest-bearing transaction deposits. The decline in borrowed funds resulted from the prepayment of $114.6 million of FHLB advances with a weighted-average rate of 1.33% during the second quarter of 2014. Growth in demand deposits also contributed to the increase in total funding sources.

Growth in core deposits of $326.1 million and $331.2 million for the second quarter of 2014 and first six months of 2014, respectively, compared to both prior periods was driven by an increase in the average balances of select customer segments. This growth more than offset the decline in higher-cost time deposits and borrowed funds.

Tax-equivalent net interest margin for the second quarter and first six months of 2014 was 3.65% and 3.63%, respectively, a decline of 5 basis points from the second quarter of 2013 and 10 basis points from the first six months of 2013. The reduction in net interest margin compared to both prior periods reflects the decrease in the yield on loans driven by the flattening of the yield curve, the competitive market environment, and a continued shift in the loan mix to floating rate loans. This decline was partially offset by higher yields on investment securities, a reduction in higher cost borrowed funds, and growth in core deposits. Compared to the second quarter of 2013, the decrease in loan yield was partially mitigated by an increase in the yield on covered interest-earning assets.

Noninterest Income

A summary of noninterest income for the quarters and six months ended June 30, 2014 and 2013 is presented in the following table.

Table 4

Noninterest Income Analysis

(Dollar amounts in thousands)

	Quarters Ended   June 30,							Six Months Ended   June 30,
	2014			2013		% Change		2014			2013		% Change
Service charges on deposit accounts	$	8,973		$	9,118	(1.6	)	$	16,993		$	17,795	(4.5	)
Wealth management fees	6,552			6,126		7.0		13,009			11,965		8.7
Card-based fees (1)	5,969			5,547		7.6		11,304			10,623		6.4
Merchant servicing fees (2)	2,916			2,899		0.6		5,625			5,453		3.2
Mortgage banking income	959			1,010		(5.0	)	2,074			2,978		(30.4	)
Other service charges, commissions,   and fees (2)	1,639			1,308		25.3		3,052			2,952		3.4
Total fee-based revenues	27,008			26,008		3.8		52,057			51,766		0.6
Net securities gains	4,517			216		N/M		5,590			216		N/M
Loss on early extinguishment of debt	(2,059		)	—		N/M		(2,059		)	—		N/M
Other income (3)(5)	1,196			1,003		19.2		2,133			1,784		19.6
Net trading gains (4)(5)	531			214		N/M		722			1,250		(42.2	)
Total noninterest income	$	31,193		$	27,441	13.7		$	58,443		$	55,016	6.2

N/M - Not meaningful.

⁽¹⁾  Card-based fees consist of debit and credit card interchange fees for processing transactions as well as various fees 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⁾  These line items are included in other service charges, commissions, and fees in the Condensed Consolidated Statements of Income.

⁽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 diversified investment securities held in a grantor trust under deferred compensation arrangements and are substantially offset by nonqualified plan expense for each period presented.

⁽⁵⁾  These line items are included in other income in the Condensed Consolidated Statements of Income.

Fee-based revenues continue to be strong driven by increases in wealth management fees, card-based fees, and merchant servicing fees. Total noninterest income of $31.2 million grew $3.8 million, or 13.7%, compared to the second quarter of 2013. For the first six months of 2014, total noninterest income rose 6.2%, from the same period in 2013.

46

A lower volume of non-sufficient funds transactions contributed to the decrease in service charges on deposit accounts compared to the six months ended June 30, 2013.

Wealth management fees increased 7.0% from the second quarter of 2013 and 8.7% from the first six months of 2013 due to a 15.4% rise in assets under management driven by new customer relationships.

Compared to both prior periods presented, the growth in card-based fees was due to increased transaction volumes.

During the second quarter and first six months of 2014, we sold $32.2 million and $83.0 million of 1-4 family mortgage loans, respectively, compared to $28.0 million and $82.0 million of loans sold during the same periods in 2013. Lower market pricing contributed to the decline in mortgage banking income compared to the prior year periods.

Net securities gains during the second quarter of 2014 resulted from a $3.5 million gain on the sale of a non-accrual CDO, a $518,000 gain on the sale of a portion of the Company's hedge fund investment, and a $468,000 gain on the sale of municipal securities.

The $2.1 million loss on early extinguishment of debt resulted from the prepayment of $114.6 million in FHLB advances with a weighted average rate of 1.33% during the second quarter of 2014.

47

Noninterest Expense

A summary of noninterest expense for the quarters and six months ended June 30, 2014 and 2013 is presented in the following table.

Table 5

Noninterest Expense Analysis

(Dollar amounts in thousands)

	Quarters Ended   June 30,								Six Months Ended   June 30,
	2014			2013			% Change		2014			2013			% Change
Salaries and employee benefits:
Salaries and wages	$	27,853		$	26,553		4.9		$	55,050		$	54,392		1.2
Nonqualified plan expense (1)	550			267			N/M		736			1,391			(47.1	)
Retirement and other employee benefits	6,158			6,101			0.9		12,266			13,707			(10.5	)
Total salaries and employee benefits	34,561			32,921			5.0		68,052			69,490			(2.1	)
Net occupancy and equipment expense	7,672			7,793			(1.6	)	17,063			15,940			7.0
Professional services:
Loan remediation costs	2,238			2,547			(12.1	)	4,229			4,686			(9.8	)
Other professional services	4,279			3,048			40.4		7,677			6,127			25.3
Professional services	6,517			5,595			16.5		11,906			10,813			10.1
Technology and related costs	3,104			2,884			7.6		6,178			5,367			15.1
Net OREO expense	1,569			1,084			44.7		3,125			2,883			8.4
Advertising and promotions (2)	2,307			2,033			13.5		3,920			3,443			13.9
Merchant card expense (2)	2,383			2,321			2.7		4,596			4,365			5.3
Cardholder expenses (2)	1,081			1,043			3.6		2,095			1,972			6.2
Other expenses (2)	5,823			6,753			(13.8	)	11,750			12,968			(9.4	)
Total noninterest expense	$	65,017		$	62,427		4.1		$	128,685		$	127,241		1.1
Efficiency ratio (3)	63.60		%	64.27		%			65.09		%	65.38		%

N/M - Not meaningful.

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

⁽²⁾  These line items are included in other expense in the Condensed Consolidated Statements of Income.

⁽³⁾  The efficiency ratio expresses noninterest expense, excluding OREO expense, as a percentage of tax-equivalent net interest income plus total fee-based revenues, other income, net trading gains, and tax-equivalent adjusted BOLI income. Net securities gains are excluded from the efficiency ratio. The $2.1 million loss on the prepayment of FHLB advances and $830,000 of acquisition-related expenses are excluded from the efficiency ratio for the quarter and six months ended June 30, 2014.

The Company's efficiency ratio improved from 64.27% for the second quarter of 2013 to 63.60% compared to the same period in 2014. Total noninterest expense for the second quarter of 2014 increased 4.1% from the second quarter of 2013 and 1.1% for the first six months of 2014 compared to the same period in 2013. The rise in total noninterest expense compared to both prior periods presented was impacted by costs associated with increased sales production and $830,000 in professional services expenses related to the recently announced, pending acquisitions. Excluding these acquisition-related expenses, total noninterest expense approximated the first six months of 2013.

Compared to both prior periods presented, the increase in salaries and wages expense resulted primarily from the timing of certain incentive compensation accruals.

Retirement and other employee benefits expense decreased compared to the first six months of 2013 primarily resulting from the changes to the Company's defined benefit pension plan instituted in the second quarter of 2013, which was partially offset by an increase in other employee benefit accruals.

48

Net occupancy and equipment expense was elevated in the first quarter of 2014 due to higher utilities and snow removal costs during the first quarter of 2014.

Compared to both prior periods presented, the decrease in loan remediation costs was driven by lower servicing costs for our covered loan portfolio and a reduction in real estate taxes paid to preserve the Company's rights to collateral associated with problem loans.

As discussed above, increased legal expenses primarily related to acquisition activity drove the rise in other professional services expense for the second quarter and first six months of 2014 compared to the same periods in 2013. Higher levels of personnel recruitment expenses also contributed to the increase compared to the first six months of 2013.

The increase in net OREO expense compared to the second quarter of 2013 was driven by higher levels of OREO valuation adjustments recorded in the second quarter of 2014, which was partially offset by a decrease in closing cost expenses from fewer sales.

Advertising and promotions expense increased from the second quarter and first six months of 2013 due to the timing of certain advertising costs.

Higher levels of other expenses in the second quarter and first six months of 2013 resulted from recording $750,000 and $1.5 million, respectively, in adjusted amortization of the FDIC indemnification asset. No adjusted amortization of the FDIC indemnification asset was required during 2014 based on management's current estimates of future cash flows on covered loans.

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 6

Income Tax Expense Analysis

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Income before income tax expense	$	27,142		$	24,131		$	52,978		$	45,066
Income tax expense:
Federal income tax expense	$	6,727		$	5,553		$	13,005		$	9,913
State income tax expense	1,915			2,402			3,809			4,335
Total income tax expense	$	8,642		$	7,955		$	16,814		$	14,248
Effective income tax rate	31.8		%	33.0		%	31.7		%	31.6		%

Federal income tax expense and the related effective income tax rate are influenced by the amount of tax-exempt income derived from investment securities and BOLI in relation to pre-tax income and state income taxes. State income tax expense and the related effective tax rate are driven by the amount of state tax-exempt income in relation to pre-tax income and state tax rules related to consolidated/combined reporting and sourcing of income and expense.

The decrease in the effective income tax rate of 31.8% for the second quarter of 2014 compared to 33.0% for the same period in 2013 was due primarily to a decrease in state income tax expense, resulting from an increase in income exempt from state taxes and a decrease in statutory rates.

Our accounting policies for 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 2013 10-K.

49

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 grantor 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 with unrealized gains and losses, net of related deferred income taxes, recorded in stockholders’ equity as a separate component of accumulated other comprehensive loss.

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.

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 7

Investment Portfolio Valuation Summary

(Dollar amounts in thousands)

	June 30, 2014								December 31, 2013
	Amortized Cost		Net Unrealized Gains (Losses)			Fair Value		% of Total	Amortized Cost		Net Unrealized Gains (Losses)			Fair Value		% of Total
Securities Available-for-Sale
U.S. agency securities	$	500	$	1		$	501	0.1	$	500	$	—		$	500	—
Collateralized mortgage   obligations ("CMOs")	448,337		(6,872		)	441,465		41.0	490,962		(15,194		)	475,768		41.2
Other mortgage-backed   securities ("MBSs")	123,787		3,705			127,492		11.8	135,097		1,067			136,164		11.8
Municipal securities	432,187		11,698			443,885		41.2	457,318		4,075			461,393		39.9
CDOs	45,023		(26,587		)	18,436		1.7	46,532		(28,223		)	18,309		1.6
Corporate debt   securities	12,995		2,240			15,235		1.4	12,999		1,930			14,929		1.3
Equity securities	2,904		557			3,461		0.3	3,706		1,956			5,662		0.5
Total available-for-   sale securities	1,065,733		(15,258		)	1,050,475		97.5	1,147,114		(34,389		)	1,112,725		96.3
Securities Held-to-Maturity
Municipal securities	26,471		605			27,076		2.5	44,322		(935		)	43,387		3.7
Total securities	$	1,092,204	$	(14,653	)	$	1,077,551	100.0	$	1,191,436	$	(35,324	)	$	1,156,112	100.0

Portfolio Composition

As of June 30, 2014, our securities portfolio totaled $1.1 billion, decreasing 6.8% compared to December 31, 2013. The reduction in CMOs and municipal securities from December 31, 2013 resulted from maturities, calls, and prepayments of $82.8 million, which were offset by purchases of $11.1 million.

Approximately 96.5% of our available-for-sale securities portfolio is comprised of U.S. agency securities, CMOs, other MBSs, and municipal securities. The remainder of the portfolio consists of five CDOs with a total fair value of $18.4 million and miscellaneous other securities with fair values of $18.7 million.

50

Investments in municipal securities comprised 42.3%, or $443.9 million, of the total available-for-sale securities portfolio at June 30, 2014. The majority consists of general obligations of local municipalities. Our municipal securities portfolio has historically experienced very low default rates and provides a predictable cash flow.

Table 8

Securities Effective Duration Analysis

(Dollar amounts in thousands)

	June 30, 2014					December 31, 2013
	Effective		Average	Yield to		Effective		Average	Yield to
	Duration (1)		Life (2)	Maturity (3)		Duration (1)		Life (2)	Maturity (3)
Securities Available-for-Sale
U.S. agency securities	1.74	%	1.75	0.49	%	2.23	%	2.25	0.49	%
CMOs	3.85	%	3.87	1.83	%	4.48	%	4.26	1.86	%
Other MBSs	3.33	%	4.35	2.94	%	3.93	%	4.85	2.45	%
Municipal securities	3.79	%	2.76	5.52	%	5.11	%	3.27	5.53	%
CDOs	N/M		N/M	N/M		N/M		N/M	N/M
Corporate debt securities	4.73	%	6.87	6.40	%	4.86	%	7.18	6.39	%
Equity securities	N/M		N/M	N/M		N/M		N/M	N/M
Total available-for-sale securities	3.77	%	3.49	3.59	%	4.68	%	3.95	3.52	%
Securities Held-to-Maturity
Municipal securities	5.77	%	8.34	4.45	%	6.50	%	11.84	5.47	%
Total securities	3.82	%	3.61	3.61	%	4.75	%	4.26	3.60	%

N/M - Not meaningful.

⁽¹⁾  The effective duration represents the estimated percentage change in the fair value of the securities portfolio given a 100 basis point increase or decrease in interest rates. This measure is used to evaluate 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 half of 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%.

Effective Duration

The average life and effective duration of our available-for-sale securities portfolio as of June 30, 2014 declined from the December 31, 2013 metrics due to maturities of investment securities that were not reinvested in the securities portfolio. The yield to maturity of our available-for-sale securities portfolio as of June 30, 2014 is consistent with the December 31, 2013 metrics.

Securities Gains and Losses

Net securities gains for the second quarter and first six months of 2014 were $4.5 million and $5.6 million, respectively. During the second quarter of 2014, we sold a non-accrual CDO with a carrying value of $1.3 million at a gain of $3.5 million and $5.0 million of municipal securities at gains totaling $468,000. In addition, we sold a portion of the Company's hedge fund investment at gains of $1.1 million and $518,000, respectively. There were no impairment charges recognized during the second quarter and first six months of 2014.

Net securities gains for the second quarter and first six months of 2013 were $216,000, resulting from sales of $19.5 million in CMOs, other MBSs, and a CDO.

51

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. These amounts are presented in the Consolidated Statements of Comprehensive Income and reported as a separate component of stockholders’ equity in accumulated other comprehensive loss on an after-tax basis. 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 losses were $15.3 million at June 30, 2014 compared to $34.4 million at December 31, 2013.

Net unrealized losses in the CMO portfolio totaled $6.9 million at June 30, 2014 compared to $15.2 million at December 31, 2013. CMOs 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 this type of security as of June 30, 2014 represents other-than-temporary securities impairment ("OTTI") since the unrealized losses are not believed to be attributed to credit quality.

As of June 30, 2014, net unrealized gains in the municipal securities portfolio totaled $11.7 million compared to $4.1 million as of December 31, 2013. Net unrealized gains on municipal securities include unrealized losses of $1.6 million at June 30, 2014. Substantially all of these securities carry investment grade ratings with the majority supported by the general revenues of the issuing governmental entity and are 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 OTTI.

Our investments in CDOs are supported by the credit of the underlying banks and insurance companies. The unrealized losses on these securities declined from $28.2 million at December 31, 2013 to $26.6 million at June 30, 2014. We do not believe the unrealized losses on the CDOs as of June 30, 2014 represent OTTI related to credit deterioration. In addition, we do not intend to sell the CDOs with unrealized losses within a short period of time, 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 basis, which may be at maturity. Our estimation of fair values for the CDOs is based on discounted cash flow analyses as described in Note 11 of “Notes to the Condensed Consolidated Financial Statements,” in Part I, Item 1 of this Form 10-Q.

LOAN PORTFOLIO AND CREDIT QUALITY

Loans Held-for-Investment

Our loan portfolio is comprised of both corporate and consumer loans with corporate loans representing 86.6% of total loans, excluding covered loans, at June 30, 2014. Consistent with our emphasis on relationship banking, the majority of our loans are made to our core, multi-relationship customers. The customers usually maintain deposit relationships and utilize our other banking services, such as cash management or wealth management services.

To maximize loan income within an acceptable level of risk, we have certain lending policies and procedures that management reviews on a regular basis. In addition, management receives periodic reporting related to loan production, loan quality, credit concentrations, loan delinquencies, and non-performing and performing potential problem loans to mitigate and monitor potential and current risks in the portfolio. We do not offer any sub-prime products and we have policies to limit our exposure to any single borrower.

Commercial, Industrial, and Agricultural Loans

Commercial, industrial, and agricultural loans represent 41.1% of total loans, excluding covered loans, and totaled $2.4 billion at June 30, 2014, an increase of $251.3 million, or 23.4% annualized, from December 31, 2013. Our commercial and industrial loans are a diverse group of loans to community-based and middle market businesses generally located in the Chicago metropolitan area with purposes that range from supporting seasonal working capital needs to term financing of equipment. The underwriting for these loans is based primarily on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. 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.

Agricultural loans are generally provided to meet seasonal production, equipment, and farm real estate borrowing needs of individual and corporate crop and livestock producers. As part of the underwriting process, the Company examines projected cash flows, financial statement stability, and the value of the underlying collateral. Seasonal crop production loans are repaid by the liquidation of the financed crop that is typically covered by crop insurance. Equipment and real estate term loans are repaid through cash flows of the farming operation.

52

Commercial Real Estate Loans

Commercial real estate loans represent 45.5% of total loans, excluding covered loans, and totaled $2.7 billion at June 30, 2014, consistent with December 31, 2013. Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans. The repayment of commercial real estate loans depends on the successful operation of the property securing the loan or the business conducted on the property securing the loan. This category of loans may be more adversely affected by conditions in the real estate market. Management monitors and evaluates commercial real estate loans based on cash flow, collateral, geography, and risk rating criteria. The mix of properties securing the loans in our commercial real estate portfolio are balanced between owner-occupied and investor categories and represent varying types across our market footprint.

Construction loans are generally based on estimates of costs and values associated with the completed projects and are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analyses of absorption and lease rates, and financial analyses of the developers and property owners. Sources of repayment may be permanent loans from long-term lenders, sales of developed property, or an interim loan commitment until permanent financing is obtained. Generally, construction loans have a higher risk profile than other real estate loans since repayment is impacted by real estate values, interest rate changes, governmental regulation of real property, demand and supply of alternative real estate, the availability of long-term financing, and changes in general economic conditions.

Consumer Loans

Consumer loans represent 13.4% of total loans, excluding covered loans, and totaled $783.5 million at June 30, 2014, an increase of $35.7 million from December 31, 2013. Consumer loans are centrally underwritten using a credit scoring model developed by the Fair Isaac Corporation (“FICO”). It uses a risk-based system to determine the probability that a borrower may default on financial obligations to the lender. Underwriting standards for home equity loans are heavily influenced by statutory requirements, which include loan-to-value and affordability ratios, risk-based pricing strategies, and documentation requirements. The home equity category consists mainly of revolving lines of credit secured by junior liens on owner-occupied real estate. Loan-to-value ratios on home equity loans and 1-4 family mortgages are based on the current appraised value of the collateral.

Table 9

Loan Portfolio

(Dollar amounts in thousands)

	June 30, 2014		% of Total	December 31, 2013		% of Total	Annualized % Change
Commercial and industrial	$	2,073,018	35.5	$	1,830,638	32.8	26.5
Agricultural	330,626		5.6	321,702		5.8	5.5
Commercial real estate:
Office	444,956		7.6	459,202		8.2	(6.2	)
Retail	377,427		6.5	392,576		7.0	(7.7	)
Industrial	490,018		8.4	501,907		9.0	(4.7	)
Multi-family	350,430		6.0	332,873		6.0	10.5
Construction	195,109		3.3	186,197		3.3	9.6
Other commercial real estate	798,324		13.7	807,071		14.5	(2.2	)
Total commercial real estate	2,656,264		45.5	2,679,826		48.0	(1.8	)
Total corporate loans	5,059,908		86.6	4,832,166		86.6	9.4
Home equity	485,085		8.3	427,020		7.7	27.2
1-4 family mortgages	241,156		4.1	275,992		4.9	(25.2	)
Installment	57,308		1.0	44,827		0.8	55.7
Total consumer loans	783,549		13.4	747,839		13.4	9.6
Total loans, excluding covered loans	5,843,457		100.0	5,580,005		100.0	9.4
Covered loans	104,867			134,355			(43.9	)
Total loans	$	5,948,324		$	5,714,360		8.2

53

Total loans, excluding covered loans, of $5.8 billion rose by $263.5 million, or 9.4% on an annualized basis, from December 31, 2013. Both corporate and consumer loan portfolios continue to benefit from well-balanced growth distributed across the majority of loan categories, reflecting credits of varying size within our market footprint. Strong growth in the commercial and industrial and agricultural loan categories reflects the impact of greater resource investments and expansion into certain sector-based lending areas, such as agri-business, asset-based lending, and healthcare.

During the six months ended June 30, 2014, total consumer loans grew 9.6% on an annualized basis from December 31, 2013. The 1-4 family mortgage portfolio reflects the sale of $83.0 million of 1-4 family mortgage loans. Compared to December 31, 2013, the 27.2% annualized increase in the home equity portfolio reflects organic growth and the purchase of $48.7 million of high quality, shorter-duration, floating rate loans.

The following table presents commercial real estate loan detail.

Table 10

Commercial Real Estate Loans

(Dollar amounts in thousands)

	June 30, 2014			% of Total	December 31, 2013			% of Total
Office, retail, and industrial:
Office	$	444,956		16.8	$	459,202		17.1
Retail	377,427			14.2	392,576			14.7
Industrial	490,018			18.4	501,907			18.7
Total office, retail, and industrial	1,312,401			49.4	1,353,685			50.5
Multi-family	350,430			13.2	332,873			12.4
Construction	195,109			7.3	186,197			7.0
Other commercial real estate
Rental properties	109,498			4.1	112,887			4.2
Service stations and truck stops	72,333			2.7	83,237			3.1
Warehouses and storage	127,423			4.8	122,325			4.6
Hotels	54,811			2.1	62,451			2.3
Restaurants	72,027			2.7	79,809			3.0
Automobile dealers	35,149			1.3	37,504			1.4
Recreational	51,896			2.0	56,327			2.1
Religious	31,085			1.2	32,614			1.2
Multi-use properties	149,360			5.6	118,351			4.4
Other	94,742			3.6	101,566			3.8
Total other commercial real estate	798,324			30.1	807,071			30.1
Total commercial real estate	$	2,656,264		100.0	$	2,679,826		100.0
Owner-occupied commercial real estate loans,   excluding multi-family and construction loans	$	878,972			$	933,151
Owner-occupied as a percent of total,   excluding multi-family and construction loans	41.6		%		43.2		%

Commercial real estate loans represent 45.5% of total loans, excluding covered loans. Nearly half of our commercial real estate loans consist of loans for industrial buildings, office buildings, and retail shopping centers. The mix of properties securing the loans in our commercial real estate portfolio continues to be balanced between owner-occupied and investor categories as of June 30, 2014.

54

Non-performing Assets and Performing Potential Problem Loans

The following table presents our loan portfolio by performing and non-performing status. A discussion of our accounting policies for non-accrual loans, TDRs, and loans 90 days or more past due can be found in Note 1 of “Notes to the Condensed Consolidated Financial Statements” in Part 1, Item 1 of this Form 10-Q.

Table 11

Loan Portfolio by Performing/Non-Performing Status

(Dollar amounts in thousands)

					Accruing
	Total Loans		Current		30-89 Days Past Due		90 Days Past Due		TDRs		Non-accrual
As of June 30, 2014
Commercial and industrial	$	2,073,018	$	2,037,767	$	7,691	$	2,207	$	2,724	$	22,629
Agricultural	330,626		330,177		86		—		—		363
Commercial real estate:
Office	444,956		438,583		4,541		—		—		1,832
Retail	377,427		367,606		467		—		—		9,354
Industrial	490,018		484,603		—		—		178		5,237
Multi-family	350,430		347,382		625		231		620		1,572
Construction	195,109		187,761		2,271		—		—		5,077
Other commercial real estate	798,324		786,032		3,238		676		448		7,930
Total commercial real estate	2,656,264		2,611,967		11,142		907		1,246		31,002
Total corporate loans	5,059,908		4,979,911		18,919		3,114		3,970		53,994
Home equity	485,085		474,543		3,035		91		836		6,580
1-4 family mortgages	241,156		234,046		1,831		297		891		4,091
Installment	57,308		54,832		382		31		—		2,063
Total consumer loans	783,549		763,421		5,248		419		1,727		12,734
Total loans, excluding covered loans	5,843,457		5,743,332		24,167		3,533		5,697		66,728
Covered loans	104,867		77,057		6,286		8,464		—		13,060
Total loans	$	5,948,324	$	5,820,389	$	30,453	$	11,997	$	5,697	$	79,788
As of December 31, 2013
Commercial and industrial	$	1,830,638	$	1,805,516	$	6,424	$	393	$	6,538	$	11,767
Agricultural	321,702		321,123		60		—		—		519
Commercial real estate:
Office	459,202		455,547		1,200		731		—		1,724
Retail	392,576		385,234		939		272		624		5,507
Industrial	501,907		481,766		337		312		9,647		9,845
Multi-family	332,873		329,669		318		—		1,038		1,848
Construction	186,197		179,877		23		—		—		6,297
Other commercial real estate	807,071		789,517		4,817		258		4,326		8,153
Total commercial real estate	2,679,826		2,621,610		7,634		1,573		15,635		33,374
Total corporate loans	4,832,166		4,748,249		14,118		1,966		22,173		45,660
Home equity	427,020		413,912		4,355		1,102		787		6,864
1-4 family mortgages	275,992		267,497		1,939		548		810		5,198
Installment	44,827		42,329		330		92		—		2,076
Total consumer loans	747,839		723,738		6,624		1,742		1,597		14,138
Total loans, excluding covered loans	5,580,005		5,471,987		20,742		3,708		23,770		59,798
Covered loans	134,355		93,100		2,232		18,081		—		20,942
Total loans	$	5,714,360	$	5,565,087	$	22,974	$	21,789	$	23,770	$	80,740

55

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

Table 12

Non-Performing Assets and Past Due Loans

(Dollar amounts in thousands)

	2014						2013
	June 30			March 31			December 31			September 30			June 30
Non-performing assets, excluding covered loans and covered OREO
Non-accrual loans	$	66,728		$	64,217		$	59,798		$	68,170		$	89,193
90 days or more past due loans	3,533			4,973			3,708			5,642			3,832
Total non-performing loans	70,261			69,190			63,506			73,812			93,025
Accruing TDRs	5,697			6,301			23,770			24,329			8,287
OREO	30,331			30,026			32,473			35,616			39,497
Total non-performing assets	$	106,289		$	105,517		$	119,749		$	133,757		$	140,809
30-89 days past due loans	$	24,167		$	12,861		$	20,742		$	15,111		$	21,756
Non-accrual loans to total loans	1.14		%	1.13		%	1.07		%	1.25		%	1.69		%
Non-performing loans to total loans	1.20		%	1.22		%	1.14		%	1.35		%	1.76		%
Non-performing assets to loans plus   OREO	1.81		%	1.84		%	2.13		%	2.44		%	2.64		%
Non-performing covered loans and covered OREO (1)
Non-accrual loans	$	13,060		$	18,004		$	20,942		$	30,856		$	28,468
90 days or more past due loans	8,464			14,691			18,081			20,235			27,700
Total non-performing loans	21,524			32,695			39,023			51,091			56,168
OREO	9,825			7,355			8,863			10,477			13,681
Total non-performing assets	$	31,349		$	40,050		$	47,886		$	61,568		$	69,849
30-89 days past due loans	$	6,286		$	2,439		$	2,232		$	7,881		$	5,650
Non-performing assets, including covered loans and covered OREO
Non-accrual loans	$	79,788		$	82,221		$	80,740		$	99,026		$	117,661
90 days or more past due loans	11,997			19,664			21,789			25,877			31,532
Total non-performing loans	91,785			101,885			102,529			124,903			149,193
Accruing TDRs	5,697			6,301			23,770			24,329			8,287
OREO	40,156			37,381			41,336			46,093			53,178
Total non-performing assets	$	137,638		$	145,567		$	167,635		$	195,325		$	210,658
30-89 days past due loans	$	30,453		$	15,300		$	22,974		$	22,992		$	27,406
Non-accrual loans to total loans	1.34		%	1.41		%	1.41		%	1.77		%	2.16		%
Non-performing loans to total loans	1.54		%	1.75		%	1.79		%	2.23		%	2.73		%
Non-performing assets to loans plus   OREO	2.30		%	2.49		%	2.91		%	3.46		%	3.82		%

⁽¹⁾  Covered loans and covered OREO are covered by FDIC Agreements that substantially mitigate the risk of loss. Past due covered loans in the tables above are determined by borrower performance compared to contractual terms, but are generally considered accruing loans since they continue to perform in accordance with our expectations of cash flows. For a discussion of covered loans and covered OREO, refer to Note 5 of “Notes to the Condensed Consolidated Financial Statements” in Part I, Item 1 of this Form 10-Q.

Non-performing assets, excluding covered loans and covered OREO, decreased $13.5 million, or 11.2%, from December 31, 2013, due primarily to lower levels of accruing TDRs, which was partially offset by a rise in non-accrual loans. Two accruing TDRs totaling $18.8 million were returned to performing status due to sustained payment performance in accordance with their modified terms, which represent market rates at the time of restructuring. Refer to the "TDRs" section below for further discussion.

The majority of loans 30-89 days past due at June 30, 2014 were in the process of renewal.

56

TDRs

Loan modifications may be performed at the request of the individual borrower and may include reductions in interest rates, changes in payments, and extensions of maturity dates. We occasionally restructure loans at other than market rates or terms to enable the borrower to work through financial difficulties for a period of time, and these restructures remain classified as TDRs for the remaining terms of the loans.

Table 13

TDRs by Type

(Dollar amounts in thousands)

	June 30, 2014			December 31, 2013			June 30, 2013
	Number of Loans	Amount		Number of Loans	Amount		Number of Loans	Amount
Commercial and industrial	5	$	3,001	10	$	8,659	9	$	16,394
Agricultural	—	—		—	—		—	—
Commercial real estate:
Office	—	—		—	—		—	—
Retail	—	—		2	624		2	628
Industrial	1	178		3	9,647		1	365
Multi-family	4	862		5	1,291		5	1,317
Construction	—	—		—	—		2	500
Other commercial real estate	6	636		7	4,617		8	5,303
Total commercial real estate	11	1,676		17	16,179		18	8,113
Total corporate loans	16	4,677		27	24,838		27	24,507
Home equity	19	1,353		18	1,299		7	380
1-4 family mortgages	11	1,367		14	1,716		15	1,850
Installment	—	—		—	—		—	—
Total consumer loans	30	2,720		32	3,015		22	2,230
Total TDRs	46	$	7,397	59	$	27,853	49	$	26,737
Accruing TDRs	31	$	5,697	39	$	23,770	23	$	8,287
Non-accrual TDRs	15	1,700		20	4,083		26	18,450
Total TDRs	46	$	7,397	59	$	27,853	49	$	26,737
Year-to-date charge-offs on TDRs		$	152		$	1,880		$	1,788
Specific reserves related to TDRs		—			1,952			2,195

TDRs totaled $7.4 million at June 30, 2014, decreasing $20.5 million from December 31, 2013.

Accruing TDRs declined $18.1 million from December 31, 2013 driven primarily by the return of two TDRs totaling $18.8 million to performing status during the first quarter of 2014 due to sustained payment performance in accordance with their modified terms, which represent market rates at the time of restructuring. This reduction was partially offset by the addition of two corporate loan relationships totaling $2.0 million that were upgraded to accruing TDR status.

At June 30, 2014, non-accrual TDRs totaled $1.7 million compared to $4.1 million at December 31, 2013. TDRs are reported as non-accrual if they are not yet performing in accordance with their modified terms or they have not yet exhibited sufficient performance under their modified terms. The decrease in non-accrual TDRs from December 31, 2013 was driven primarily by the upgrade of two non-accrual TDRs to accruing TDR status discussed above.

57

Performing Potential Problem Loans

Performing potential problem loans consist of special mention loans and substandard loans. These loans are performing in accordance with contractual terms, but we have concerns about the ability of the borrower to continue to comply with loan terms due to the borrower’s operating or financial difficulties.

Table 14

Performing Potential Problem Loans

(Dollar amounts in thousands)

	June 30, 2014									December 31, 2013
	Special Mention (1)			Substandard (2)			Total (3)			Special Mention (1)			Substandard (2)			Total (3)
Commercial and industrial	$	50,036		$	17,106		$	67,142		$	23,679		$	14,135		$	37,814
Agricultural	298			—			298			344			—			344
Commercial real estate:
Office, retail, and industrial	24,055			20,831			44,886			27,871			23,538			51,409
Multi-family	3,446			717			4,163			2,794			499			3,293
Construction	8,790			16,453			25,243			8,309			17,642			25,951
Other commercial real estate	15,918			15,355			31,273			14,567			22,576			37,143
Total commercial real estate	52,209			53,356			105,565			53,541			64,255			117,796
Total performing potential    problem loans	$	102,543		$	70,462		$	173,005		$	77,564		$	78,390		$	155,954
Performing potential problem   loans to corporate loans	2.03		%	1.39		%	3.42		%	1.61		%	1.62		%	3.23		%

⁽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 in the future.

⁽²⁾  Loans categorized as substandard exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time.

⁽³⁾  Total performing potential problem loans excludes accruing TDRs of $3.6 million as of June 30, 2014 and $2.8 million as of December 31, 2013.

Performing potential problem loans were 3.42% of corporate loans at June 30, 2014, compared to 3.23% at December 31, 2013, and down from 4.16% at June 30, 2013. Compared to December 31, 2013, these levels reflect a greater proportion of loans classified as special mention. Overall, shifts in the categories are subject to borrower circumstances and closer monitoring plans by management to facilitate recovery.

58

OREO

OREO consists of properties acquired as the result of borrower defaults on loans. OREO, excluding covered OREO, was $30.3 million at June 30, 2014, decreasing $2.1 million from December 31, 2013.

Table 15

OREO Properties by Type

(Dollar amounts in thousands)

	June 30, 2014			December 31, 2013			June 30, 2013
	Number of Properties	Amount		Number of Properties	Amount		Number of Properties	Amount
Single family homes	18	$	1,982	29	$	2,257	31	$	3,388
Land parcels:
Raw land	8	3,843		6	4,037		5	3,244
Commercial lots	17	11,485		17	11,649		21	12,356
Single-family lots	26	1,634		22	3,101		24	3,163
Total land parcels	51	16,962		45	18,787		50	18,763
Multi-family units	7	868		4	346		13	976
Commercial properties	23	10,519		23	11,083		29	16,370
Total OREO, excluding covered OREO	99	30,331		101	32,473		123	39,497
Covered OREO	38	9,825		48	8,863		59	13,681
Total OREO properties	137	$	40,156	149	$	41,336	182	$	53,178

OREO Activity

The following table summarizes disposals of OREO for the six months ended June 30, 2014 and 2013.

Table 16

OREO Disposals and Write-Downs

(Dollar amounts in thousands)

	Six Months Ended
	June 30, 2014									June 30, 2013
	OREO			Covered OREO			Total			OREO			Covered OREO			Total
OREO sales
Proceeds from sales	$	3,697		$	5,463		$	9,160		$	7,035		$	3,872		$	10,907
Less: Basis of properties sold	(3,090		)	(5,363		)	(8,453		)	(6,989		)	(3,825		)	(10,814		)
Net gains on sales of OREO	$	(607	)	$	(100	)	$	(707	)	$	(46	)	$	(47	)	$	(93	)
OREO valuation adjustments	$	2,066		$	—		$	2,066		$	555		$	31		$	586

For the six months ended June 30, 2014, we sold $3.1 million of OREO, excluding covered OREO, which consisted of 40 properties with the majority classified as single-family homes.

OREO sales, excluding covered OREO, for the six months ended June 30, 2013, consisted of 33 properties with the majority in the single-family home and commercial property categories.

59

Allowance for Credit Losses

Methodology for the Allowance for Credit Losses

The allowance for credit losses is comprised of the allowance for loan and covered 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, and consideration of current economic trends.

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 ratings 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 June 30, 2014.

The accounting policy for the allowance for credit losses is discussed in Note 1 of “Notes to the Condensed Consolidated Financial Statements” in Part I, Item 1 of this Form 10-Q.

60

Table 17

Allowance for Credit Losses

and Summary of Credit Loss Experience

(Dollar amounts in thousands)

	Quarters Ended
	2014						2013
	June 30			March 31			December 31			September 30			June 30
Change in allowance for credit losses
Beginning balance	$	82,248		$	87,121		$	93,214		$	96,976		$	100,457
Loan charge-offs:
Commercial, industrial, and agricultural	2,099			3,680			3,084			2,719			3,116
Office, retail, and industrial	3,511			1,083			1,042			987			1,453
Multi-family	267			90			539			112			213
Construction	234			661			31			470			850
Other commercial real estate	561			1,771			813			889			547
Consumer	1,828			2,028			2,045			2,482			2,523
Total loan charge-offs	8,500			9,313			7,554			7,659			8,702
Recoveries of loan charge-offs:
Commercial, industrial, and agricultural	259			2,160			614			521			573
Office, retail, and industrial	290			58			160			31			35
Multi-family	2			1			549			—			30
Construction	2			158			965			60			5
Other commercial real estate	89			144			37			250			329
Consumer	213			138			177			374			413
Total recoveries of loan charge-offs	855			2,659			2,502			1,236			1,385
Net loan charge-offs, excluding   covered loan charge-offs	7,645			6,654			5,052			6,423			7,317
Net covered loan charge-offs (recoveries)	2			(340		)	271			1,629			1,977
Net loan and covered loan charge-offs	7,647			6,314			5,323			8,052			9,294
Provision for loan and covered loan losses:
Provision for loan losses	7,425			2,911			226			4,466			1,682
Provision for covered loan losses	(2,084		)	(1,470		)	(226		)	304			4,131
Total provision for loan and covered   loan losses	5,341			1,441			—			4,770			5,813
Reduction in reserve for unfunded   commitments (1)	—			—			(770		)	(480		)	—
Total provision for loan and   covered loan losses and other	5,341			1,441			(770		)	4,290			5,813
Ending balance	$	79,942		$	82,248		$	87,121		$	93,214		$	96,976

⁽¹⁾  Included in other noninterest expense in the Consolidated Statements of Income.

61

	Quarters Ended
	2014						2013
	June 30			March 31			December 31			September 30			June 30
Allowance for credit losses
Allowance for loan losses	$	68,983		$	69,203		$	72,946		$	77,772		$	79,729
Allowance for covered loan losses	9,343			11,429			12,559			13,056			14,381
Total allowance for loan and   covered loan losses	78,326			80,632			85,505			90,828			94,110
Reserve for unfunded commitments	1,616			1,616			1,616			2,386			2,866
Total allowance for credit losses	$	79,942		$	82,248		$	87,121		$	93,214		$	96,976
Amounts and ratios, excluding covered loans
Average loans	$	5,778,044		$	5,578,616		$	5,516,747		$	5,379,435		$	5,180,608
Net loan charge-offs to average loans,   annualized	0.53		%	0.48		%	0.36		%	0.47		%	0.57		%
Allowance for credit losses at end of   period as a percent of:
Total loans	1.21		%	1.24		%	1.34		%	1.47		%	1.56		%
Non-accrual loans	105.80		%	110.28		%	124.69		%	117.59		%	92.60		%
Non-performing loans	100.48		%	102.35		%	117.41		%	108.60		%	88.79		%
Amounts and ratios, including covered loans
Average loans	$	5,891,127		$	5,706,880		$	5,658,756		$	5,539,776		$	5,357,945
Net loan charge-offs to average loans   annualized	0.52		%	0.45		%	0.37		%	0.58		%	0.70		%
Allowance for credit losses at end of   period as a percent of:
Total loans	1.34		%	1.41		%	1.52		%	1.66		%	1.78		%
Non-accrual loans	100.19		%	100.03		%	107.90		%	94.13		%	82.42		%
Non-performing loans	87.10		%	80.73		%	84.97		%	74.63		%	65.00		%

Activity in the Allowance for Credit Losses

The allowance for credit losses was $79.9 million as of June 30, 2014, a decline of $7.2 million from December 31, 2013. The allowance for credit losses was 1.34% of total loans, including covered loans, at June 30, 2014 compared to 1.52% at December 31, 2013.

Net loan charge-offs declined 17.7% from the second quarter of 2013. In addition, net loan charge-offs to average loans, excluding covered loans, annualized, decreased 7.0%.

Covered loan charge-offs reflect the decline, and recoveries reflect the increase, in estimated cash flows of certain acquired loans. Management re-estimates cash flows periodically, and the present value of any decreases in expected cash flows from the FDIC is recorded as either a charge-off or an allowance for covered loan losses is established. Any increases in expected cash flows are recorded through the allowance for covered loan losses as recoveries to the extent charge-offs were previously taken or prospectively as yield adjustments over the remaining lives of the specific loans.

62

FUNDING AND LIQUIDITY MANAGEMENT

The following table provides a comparison of average funding sources for the quarters ended June 30, 2014, December 31, 2013, and June 30, 2013. We believe that average balances, rather than period-end balances, are more meaningful in analyzing funding sources because of the normal fluctuations that may occur on a daily or monthly basis within funding categories.

Table 18

Funding Sources – Average Balances

(Dollar amounts in thousands)

	Quarters Ended									Second Quarter 2014 % Change From
	June 30, 2014			December 31, 2013			June 30, 2013			Fourth Quarter 2013		Second Quarter 2013
Demand deposits	$	2,069,781		$	1,956,570		$	1,880,476		5.8	%	10.1	%
Savings deposits	1,189,722			1,126,737			1,144,093			5.6	%	4.0	%
NOW accounts	1,196,712			1,195,471			1,166,227			0.1	%	2.6	%
Money market accounts	1,334,700			1,356,383			1,274,062			(1.6	)%	4.8	%
Transactional deposits	5,790,915			5,635,161			5,464,858			2.8	%	6.0	%
Time deposits	1,152,816			1,218,450			1,308,997			(5.4	)%	(11.9	)%
Brokered deposits	16,082			16,067			22,502			0.1	%	(28.5	)%
Total time deposits	1,168,898			1,234,517			1,331,499			(5.3	)%	(12.2	)%
Total deposits	6,959,813			6,869,678			6,796,357			1.3	%	2.4	%
Securities sold under agreements to   repurchase	104,183			99,207			89,880			5.0	%	15.9	%
FHLB advances	60,422			114,554			114,569			(47.3	)%	(47.3	)%
Total borrowed funds	164,605			213,761			204,449			(23.0	)%	(19.5	)%
Senior and subordinated debt	190,981			207,162			214,828			(7.8	)%	(11.1	)%
Total funding sources	$	7,315,399		$	7,290,601		$	7,215,634		0.3	%	1.4	%
Average interest rate paid on   borrowed funds	0.41		%	0.72		%	0.76		%
Weighted-average maturity of FHLB   advances	N/A			29.3 months			35.6 months
Weighted-average interest rate of   FHLB advances	N/A			1.34		%	1.34		%

N/A - Not applicable.

Average funding sources for the second quarter of 2014 increased $24.8 million from the fourth quarter of 2013 and increased $99.8 million from the second quarter of 2013. Compared to both prior periods presented, the rise in transactional deposits more than offset the decrease in time deposits and the reduction in borrowed funds, which resulted from the prepayment of $114.6 million in FHLB advances with a weighted-average rate of 1.33% during the second quarter of 2014. The reduction in average senior and subordinated debt compared to both prior quarters presented was due to the repurchase and retirement of $24.0 million of junior subordinated debentures with a rate of 6.95% during the fourth quarter of 2013.

63

Table 19

Borrowed Funds

(Dollar amounts in thousands)

	June 30, 2014			June 30, 2013
	Amount		Weighted- Average Rate (%)	Amount		Weighted- Average Rate (%)
At period-end:
Securities sold under agreements to repurchase	$	104,201	0.03	$	82,038	0.03
FHLB advances	—		—	114,565		1.34
Total borrowed funds	$	104,201	0.03	$	196,603	0.79
Average for the year-to-date period:
Securities sold under agreements to repurchase	$	106,053	0.03	$	87,610	0.03
FHLB advances	87,335		1.24	114,573		1.44
Total borrowed funds	$	193,388	0.58	$	202,183	0.82
Maximum amount outstanding at the end of any day during the period:
Securities sold under agreements to repurchase	$	117,584		$	104,115
FHLB advances	114,551			114,581

Average borrowed funds totaled $193.4 million for the first six months of 2014 decreasing 4.4% compared to the same period in 2013 due to the prepayment of $114.6 million of FHLB advances during the second quarter of 2014. This decline was partially offset by higher levels of securities sold under agreements to repurchase.

Securities sold under agreements to repurchase generally mature within 1 to 90 days from the transaction date.

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MANAGEMENT OF CAPITAL

Capital Measurements

A strong capital structure is required under applicable banking regulations and is crucial in maintaining investor confidence, accessing capital markets, and enabling us to take advantage of future 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 the Bank to consistently maintain these measurements in excess of the Federal Reserve’s minimum levels to be considered “well-capitalized,” which is the highest capital category established.

The following table presents our consolidated measures of capital as of the dates presented and the capital guidelines established by the Federal Reserve for the Bank to be categorized as “well-capitalized.” All regulatory mandated ratios for characterization as “well-capitalized” were exceeded as of June 30, 2014 and December 31, 2013.

All other ratios presented in the table below are capital adequacy metrics used and relied on by investors and industry analysts; however, they are non-GAAP financial measures for SEC 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 also presented in the table below.

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Table 20

Capital Measurements

(Dollar amounts in thousands)

	June 30, 2014			December 31, 2013			Regulatory Minimum For Well- Capitalized		Excess Over Required Minimums at June 30, 2014
Bank regulatory capital ratios:
Total capital to risk-weighted assets	13.37		%	13.86		%	10.00	%	34	%	$	229,632
Tier 1 capital to risk-weighted assets	12.20		%	12.61		%	6.00	%	103	%	$	422,543
Tier 1 leverage to average assets	10.37		%	10.24		%	5.00	%	107	%	$	430,619
Company regulatory capital ratios (1):
Total capital to risk-weighted assets	12.20		%	12.39		%	N/A		N/A		N/A
Tier 1 capital to risk-weighted assets	10.97		%	10.91		%	N/A		N/A		N/A
Tier 1 leverage to average assets	9.61		%	9.18		%	N/A		N/A		N/A
Company tier 1 common capital to risk-weighted   assets (1)(2)	10.45		%	10.37		%	N/A		N/A		N/A
Reconciliation of Company capital components to GAAP:
Total stockholder's equity	$	1,039,438		$	1,001,442
Goodwill and other intangible assets	(274,962		)	(276,366		)
Tangible common equity	764,476			725,076
Accumulated other comprehensive loss	15,271			26,792
Tangible common equity, excluding accumulated   other comprehensive loss	$	779,747		$	751,868
Total assets	$	8,305,247		$	8,253,407
Goodwill and other intangible assets	(274,962		)	(276,366		)
Tangible assets	$	8,030,285		$	7,977,041
Risk-weighted assets	$	7,116,591		$	6,794,666
Company tangible common equity ratios (1)(3):
Tangible common equity to tangible assets	9.52		%	9.09		%	N/A		N/A		N/A
Tangible common equity, excluding accumulated   other comprehensive loss, to tangible assets	9.71		%	9.43		%	N/A		N/A		N/A
Tangible common equity to risk-weighted assets	10.74		%	10.67		%	N/A		N/A		N/A

N/A - Not applicable.

⁽¹⁾  Ratio is not subject to formal Federal Reserve regulatory guidance.

⁽²⁾  Excludes the impact of trust-preferred securities.

⁽³⁾  Tangible common equity (“TCE”) represents common stockholders’ equity less goodwill and identifiable intangible assets. In management’s view, Tier 1 common capital and TCE measures are meaningful to the Company, as well as analysts and investors, in assessing the Company’s use of equity and in facilitating comparisons with competitors.

The decline in the Company's total capital to risk-weighted assets ratio compared to December 31, 2013 was due to an increase in risk-weighted assets resulting from loan growth, which more than offset the increase in total capital from earnings for the first six months of 2014 and the increase in allowable deferred tax assets. The Company's tier 1 leverage to average assets ratio increased 43 basis points from December 31, 2013 driven by strong earnings and the increase in allowable deferred tax assets, which more than offset the increase in average assets. The Bank's regulatory ratios exceeded all regulatory mandated ratios for characterization as “well-capitalized” as of June 30, 2014.

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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.

Basel III Capital Rules

In July of 2013, the Company and the Bank's primary federal regulator, the Federal Reserve, published final rules establishing a new comprehensive capital framework for U.S. banking organizations. The Basel III Capital Rules are discussed in the "Supervision and Regulation" section in Item 1, "Business" in the Company's 2013 10-K.

Management believes that as of June 30, 2014 the Company and the Bank would meet all capital adequacy requirements under the Basel III Capital Rules on a fully phased-in basis as if such requirements were currently in effect.

Dividends

The Board of Directors approved an increase in the quarterly cash dividend from $0.07 to $0.08 per common share during the second quarter of 2014, which followed a dividend increase from $0.04 to $0.07 per common share in the fourth quarter of 2013.

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 Part II, Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” in our 2013 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 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 simulation modeling to analyze and capture exposure of earnings to changes in interest rates.

Net Interest Income Sensitivity

The analysis of net interest income sensitivity assesses the magnitude of changes in net interest income over a twelve-month measurement period resulting from immediate changes in interest rates using multiple rate scenarios. These scenarios include, but are not limited to, a flat or unchanged rate environment, immediate increases of 100, 200, and 300 basis points, and an immediate decrease of 100 basis points. Due to the low interest rate environment as of June 30, 2014 and December 31, 2013, management determined that an immediate decrease in interest rates greater than 100 basis points was not meaningful for this analysis.

This simulation analysis is based on estimated 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. In addition, this sensitivity analysis examines assets and liabilities at the beginning of the measurement period and does not assume any changes from growth or business plans over the next twelve months. Interest-earning assets and interest-bearing liabilities are assumed to re-price based on contractual terms over the twelve-month measurement period assuming an instantaneous parallel shift in interest rates in effect at the beginning of the measurement period. The simulation analysis also incorporates assumptions based on the historical behavior of deposit rates 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, but does provide an indication of the Company's sensitivity to changes in interest rates. 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.

Our balance sheet is asset sensitive based on repricing and maturity characteristics and simulation analysis assumptions. The Bank’s current simulation analysis indicates we would benefit from rising interest rates. Interest-earning assets consist of short and long-term products. As of June 30, 2014, 48% of the loan portfolio consisted of fixed rate loans and 52% were floating rate loans. Investments, consisting of securities and interest-bearing deposits in other banks, are more heavily weighted toward fixed rate securities at 70% of the total compared to 30% for floating rate interest-bearing deposits in other banks. Fixed rate loans are most sensitive to the 3-5 year portion of the yield curve and the Bank limits its loans with maturities that extend beyond 5 years. The majority of floating rate loans are indexed to the short-term Prime or LIBOR rates. The amount of floating rate loans with interest rate floors was $704.5 million, or 28%, of the floating rate loan portfolio as of June 30, 2014. On the liability side of the

67

balance sheet, 84% of deposits are demand deposits or interest-bearing transactional deposits, which either do not pay interest or the interest rates are expected to rise at a slower pace than short-term interest rates.

Analysis of Net Interest Income Sensitivity

(Dollar amounts in thousands)

	Immediate Change in Rates
	+300			+200			+100			-100
June 30, 2014:
Dollar change	$	41,744		$	26,160		$	11,035		$	(10,474	)
Percent change	16.0		%	10.0		%	4.2		%	(4.0		)%
December 31, 2013:
Dollar change	$	45,209		$	28,307		$	11,925		$	(11,791	)
Percent change	17.3		%	10.8		%	4.6		%	(4.5		)%

The sensitivity of estimated net interest income to an instantaneous parallel shift in interest rate changes is reflected as both dollar and percent changes. For example, this table illustrates that an instantaneous 200 basis point rise in interest rates as of June 30, 2014 would increase net interest income by $26.2 million, or 10.0%, over the next twelve months compared to no change in interest rates. This same measure was $28.3 million, or 10.8%, as of December 31, 2013, which suggests that the Company was slightly less sensitive to rising rates at June 30, 2014 compared to December 31, 2013.

During the six months ended June 30, 2014, floating rate loan balances increased and were funded by an increase in core deposits and a decrease in investments. Overall, this increase in rate sensitive assets was offset by the prepayment of $114.6 million of FHLB advances at fixed rates and the hedging of $125.0 million of certain corporate variable rate loans using interest rate swaps through which we receive fixed amounts and pay variable amounts. While net interest income is projected to decline in a decreasing interest rate environment, we believe the risk of a significant decrease in interest rates is minimal.

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

In the ordinary course of business, there were certain legal proceedings pending against the Company and its subsidiaries at June 30, 2014. 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 2013. However, these factors may not be the only risks or uncertainties the Company faces.

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

The following table summarizes the Company’s monthly Common Stock purchases during the second quarter of 2014. 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 June 30, 2014. The repurchase program has no set expiration or termination date.

Issuer Purchases of Equity Securities

	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
April 1 – April 30, 2014	—	$	—	—	2,494,747
May 1 – May 31, 2014	2,577	15.91		—	2,494,747
June 1 – June 30, 2014	—	—		—	2,494,747
Total	2,577	$	15.91	—

⁽¹⁾  Consists of shares acquired pursuant to the Company’s share-based compensation plans and not the Company’s stock repurchase program. 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.

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ITEM 6. EXHIBITS

Exhibit Number	Description of Documents
3.1	Restated Certificate of Incorporation of the Company is incorporated herein 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	Certificate of Amendment of Restated Certificate of Incorporation of the Company.
3.3	Restated By-Laws of the Company are incorporated herein 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 the 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	Interactive Data File.

⁽¹⁾  Furnished, not filed.

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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 and Chief Financial Officer*

Date: August 4, 2014

* Duly authorized to sign on behalf of the registrant.

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EX-3.2

Exhibit 3.2

CERTIFICATE OF AMENDMENT

OF

RESTATED CERTIFICATE OF INCORPORATION

OF

FIRST MIDWEST BANCORP, INC.

First Midwest Bancorp, Inc. (the “Corporation”), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware (the “DGCL”), does hereby certify that:

FIRST: The first paragraph of ARTICLE FOURTH of the Restated Certificate of Incorporation of the Corporation is hereby amended such that, as amended, such paragraph of ARTICLE FOURTH shall be replaced with the following:

The total number of shares of stock which the Corporation shall have authority to issue is One Hundred Fifty One Million (151,000,000) shares, of which One Million (1,000,000) shares shall be shares of Preferred Stock without par value (hereinafter sometimes referred to as “Preferred Stock”), and One Hundred Fifty Million (150,000,000) shares shall be shares of Common Stock, $0.01 par value per share (hereinafter sometimes referred to as “Common Stock”).

SECOND: The Certificate Amendment was duly adopted in accordance with the applicable provisions of Section 242 of the DGCL and the Restated Certificate of Incorporation of the Corporation.

IN WITNESS WHEREOF, the Corporation has caused this Certificate of Amendment to be executed and acknowledged by a duly authorized officer this 18th day of June, 2014.

FIRST MIDWEST BANCORP, INC.

By: /s/ Nicholas J. Chulos

Nicholas J. Chulos

Executive Vice President, Corporate Secretary

and General Counsel

1

EX-15

Exhibit 15

Acknowledgement of Independent Registered Public Accounting Firm

August 4, 2014

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. (the “Company”) of our report dated August 4, 2014, relating to the unaudited condensed consolidated interim financial statements of the Company that are included in its Form 10-Q for the quarter ended June 30, 2014.

• 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;

• 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 LLP

Chicago, IL

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 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 annual 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 functions):

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: August 4, 2014 /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 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 annual 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 functions):

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: August 4, 2014 /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 June 30, 2014 (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:	August 4, 2014

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 June 30, 2014 (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
Dated:	August 4, 2014

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 statement of financial condition of First Midwest Bancorp, Inc. (the “Company”) as of June 30, 2014, and the related condensed consolidated statements of income and the consolidated statements of comprehensive income for the three- and six-month periods ended June 30, 2014 and 2013, and the consolidated statements of changes in stockholders’ equity and the condensed consolidated statements of cash flows for the six-month periods ended June 30, 2014 and 2013. These financial statements are the responsibility of the Company’s management.

We conducted our review in accordance with the 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 U.S. 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 the Company as of December 31, 2013, and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for the year then ended (not presented herein) and in our report dated March 3, 2014, 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, 2013, 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

August 4, 2014

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Loans (Details) - Loan Portfolio (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Loans and Leases Receivable Disclosure [Abstract]
Commercial and industrial	$ 2,073,018		$ 1,830,638
Agricultural	330,626		321,702
Commercial real estate:
Office, retail, and industrial	1,312,401		1,353,685
Multi-family	350,430		332,873
Construction	195,109		186,197
Other commercial real estate	798,324		807,071
Total commercial real estate	2,656,264		2,679,826
Total corporate loans	5,059,908		4,832,166
Home equity	485,085		427,020
1-4 family mortgages	241,156		275,992
Installment	57,308		44,827
Total consumer loans	783,549		747,839
Total loans, excluding covered loans	5,843,457		5,580,005
Covered loans	104,867	[1]	134,355	[1]
Total Loans	5,948,324		5,714,360
Deferred loan fees included in total loans	4,051		4,656
Overdrawn demand deposits included in total loans	$ 3,980		$ 5,047

[1] For information on covered loans, refer to Note 5, “Acquired Loans.”

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Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs That Defaulted Within Twelve Months of the Restructured Date (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014 loan	Jun. 30, 2013 loan	Jun. 30, 2014 loan	Jun. 30, 2013 loan
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs That Defaulted Within Twelve Months of the Restructured Date [Line Items]
Number of Loans	0	1	2	4
Recorded Investment	$ 0	$ 198	$ 125	$ 704
Commercial And Industrial
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs That Defaulted Within Twelve Months of the Restructured Date [Line Items]
Number of Loans	0	0	2	1
Recorded Investment	0	0	125	350
Other Commercial Real Estate
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs That Defaulted Within Twelve Months of the Restructured Date [Line Items]
Number of Loans	0	1	0	3
Recorded Investment	$ 0	$ 198	$ 0	$ 354

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Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Commercial And Industrial
Financing Receivable, Impaired [Line Items]
Recorded investment in loans with no specific reserve	$ 3,381	$ 10,047
Recorded investment in loans with a specific reserve	18,345	3,131
Unpaid Principal Balance	38,524	25,887
Specific Reserve	2,539	4,046
Agricultural
Financing Receivable, Impaired [Line Items]
Recorded investment in loans with no specific reserve	0	0
Recorded investment in loans with a specific reserve	0	0
Unpaid Principal Balance	0	0
Specific Reserve	0	0
Office Retail And Industrial
Financing Receivable, Impaired [Line Items]
Recorded investment in loans with no specific reserve	12,943	23,872
Recorded investment in loans with a specific reserve	2,662	2,476
Unpaid Principal Balance	24,416	35,868
Specific Reserve	1,576	214
Multi-Family
Financing Receivable, Impaired [Line Items]
Recorded investment in loans with no specific reserve	668	1,098
Recorded investment in loans with a specific reserve	501	198
Unpaid Principal Balance	1,270	1,621
Specific Reserve	176	18
Construction
Financing Receivable, Impaired [Line Items]
Recorded investment in loans with no specific reserve	3,552	4,586
Recorded investment in loans with a specific reserve	1,173	1,126
Unpaid Principal Balance	6,121	10,037
Specific Reserve	373	178
Other Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Recorded investment in loans with no specific reserve	2,996	7,553
Recorded investment in loans with a specific reserve	2,752	1,745
Unpaid Principal Balance	8,891	11,335
Specific Reserve	913	704
Total Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Recorded investment in loans with no specific reserve	20,159	37,109
Recorded investment in loans with a specific reserve	7,088	5,545
Unpaid Principal Balance	40,698	58,861
Specific Reserve	3,038	1,114
Total Impaired Loans Individually Evaluated For Impairment
Financing Receivable, Impaired [Line Items]
Recorded investment in loans with no specific reserve	23,540	47,156
Recorded investment in loans with a specific reserve	25,433	8,676
Unpaid Principal Balance	79,222	84,748
Specific Reserve	$ 5,577	$ 5,160

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Fair Value (Details) - Financial Instruments (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
Assets:
Cash and due from banks	$ 155,099		$ 110,417
Interest-bearing deposits in other banks	322,874		476,824
Securities held-to-maturity, at amortized cost	26,471		44,322
FHLB and Federal Reserve Bank stock	35,588		35,161
Net loans	5,869,998		5,628,855
Federal Deposit Insurance Corporation (“FDIC”) indemnification asset	10,276	15,537	16,585	23,158	28,958	37,051
Investment in BOLI	194,502		193,167
Liabilities:
Deposits	6,895,250		6,766,101
Borrowed funds	104,201		224,342
Senior and subordinated debt	190,996		190,932
Level 1
Assets:
Cash and due from banks	155,099		110,417
Liabilities:
Senior and subordinated debt	193,628		201,147
Level 2
Assets:
Interest-bearing deposits in other banks	322,874		476,824
Securities held-to-maturity, at amortized cost	27,076		43,387
FHLB and Federal Reserve Bank stock	35,588		35,161
Liabilities:
Deposits	6,892,876		6,765,404
Borrowed funds	104,201		226,839
Accrued interest payable	2,164		2,400
Level 3
Assets:
Net loans	5,775,061		5,544,146
Federal Deposit Insurance Corporation (“FDIC”) indemnification asset	2,464		7,829
Investment in BOLI	194,502		193,167
Accrued interest receivable	23,633		25,735
Other interest earning assets	5,297		6,809
Carrying Amount | Level 1
Assets:
Cash and due from banks	155,099		110,417
Liabilities:
Senior and subordinated debt	190,996		190,932
Carrying Amount | Level 2
Assets:
Interest-bearing deposits in other banks	322,874		476,824
Securities held-to-maturity, at amortized cost	26,471		44,322
FHLB and Federal Reserve Bank stock	35,588		35,161
Liabilities:
Deposits	6,895,250		6,766,101
Borrowed funds	104,201		224,342
Accrued interest payable	2,164		2,400
Carrying Amount | Level 3
Assets:
Net loans	5,869,998		5,628,855
Federal Deposit Insurance Corporation (“FDIC”) indemnification asset	10,276		16,585
Investment in BOLI	194,502		193,167
Accrued interest receivable	23,633		25,735
Other interest earning assets	$ 5,117		$ 6,550

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Past Due Loans, Allowance For Credit Losses, and Impaired Loans Past Due Loans, Allowance For Credit Losses, and Impaired Loans - TDR Rollforward (Details) (USD $)	3 Months Ended	6 Months Ended	12 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013	Dec. 31, 2013	Jun. 30, 2014	Jun. 30, 2014 Accruing	Jun. 30, 2013 Accruing	Jun. 30, 2014 Accruing	Jun. 30, 2013 Accruing	Jun. 30, 2014 Nonaccrual	Jun. 30, 2013 Nonaccrual	Jun. 30, 2014 Nonaccrual	Jun. 30, 2013 Nonaccrual
Troubled Debt Restructuring Activity Rollforward [Roll Forward]
Financing Receivable, Modifications, Recorded Investment, Beginning Balance				$ 7,397,000	$ 6,301,000	$ 2,587,000	$ 23,770,000	$ 6,867,000	$ 1,920,000	$ 10,405,000	$ 4,083,000	$ 10,924,000
Financing Receivable, Modifications, Post-Modification Recorded Investment	15,761,000	17,368,000			75,000	2,091,000	75,000	3,526,000	0	13,670,000	0	13,842,000
Financing Receivable Impaired Troubled Debt Restructurings Principal Payments					(650,000)	(185,000)	(1,110,000)	(214,000)	(23,000)	(40,000)	(157,000)	(535,000)
Financing Receivable Impaired Troubled Debt Restructuring Return To Performing Status			0		0	0	(18,821,000)	(5,037,000)
Financing Receivable Impaired Troubled Debt Restructuring Transfers From To Non Accrual					(29,000)	3,794,000	1,783,000	3,145,000
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down									(152,000)	(985,000)	(186,000)	(1,788,000)
Financing Receivable Impaired Troubled Debt Restructuring Transfer to OREO									(74,000)	0	(257,000)	(42,000)
Financing Receivable Impaired Troubled Debt Restructuring Loans Sold									0	(806,000)	0	(806,000)
Financing Receivable Impaired Troubled Debt Restructuring Transfers To From Accruing									29,000	(3,794,000)	(1,783,000)	(3,145,000)
Financing Receivable, Modifications, Recorded Investment, Ending Balance	$ 26,737,000	$ 26,737,000	$ 27,853,000	$ 7,397,000	$ 5,697,000	$ 8,287,000	$ 5,697,000	$ 8,287,000	$ 1,700,000	$ 18,450,000	$ 1,700,000	$ 18,450,000

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Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Allowance for Credit Losses (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Allowance for Credit Losses by Portfolio Segment [Roll Forward]
Beginning balance	$ 82,248	$ 100,457	$ 87,121	$ 102,812
Charge-offs	(8,779)	(10,682)	(18,337)	(21,454)
Recoveries	1,132	1,388	4,376	4,631
Net charge-offs	(7,647)	(9,294)	(13,961)	(16,823)
Provision for loan and covered loan losses and other	5,341	5,813	6,782	10,987
Ending balance	79,942	96,976	79,942	96,976
Commercial, Industrial, And Agricultural
Allowance for Credit Losses by Portfolio Segment [Roll Forward]
Beginning balance	27,292	36,544	30,381	36,761
Charge-offs	(2,099)	(3,116)	(5,779)	(6,291)
Recoveries	259	573	2,419	2,662
Net charge-offs	(1,840)	(2,543)	(3,360)	(3,629)
Provision for loan and covered loan losses and other	3,742	(2,259)	2,173	(1,390)
Ending balance	29,194	31,742	29,194	31,742
Office Retail And Industrial
Allowance for Credit Losses by Portfolio Segment [Roll Forward]
Beginning balance	13,106	10,695	10,405	11,432
Charge-offs	(3,511)	(1,453)	(4,594)	(2,715)
Recoveries	290	35	348	37
Net charge-offs	(3,221)	(1,418)	(4,246)	(2,678)
Provision for loan and covered loan losses and other	1,946	2,580	5,672	3,103
Ending balance	11,831	11,857	11,831	11,857
Multi-Family
Allowance for Credit Losses by Portfolio Segment [Roll Forward]
Beginning balance	1,968	3,704	2,017	3,575
Charge-offs	(267)	(213)	(357)	(378)
Recoveries	2	30	3	35
Net charge-offs	(265)	(183)	(354)	(343)
Provision for loan and covered loan losses and other	345	(97)	385	192
Ending balance	2,048	3,424	2,048	3,424
Construction
Allowance for Credit Losses by Portfolio Segment [Roll Forward]
Beginning balance	5,656	4,667	6,316	5,242
Charge-offs	(234)	(850)	(895)	(1,415)
Recoveries	2	5	160	5
Net charge-offs	(232)	(845)	(735)	(1,410)
Provision for loan and covered loan losses and other	(539)	348	(696)	338
Ending balance	4,885	4,170	4,885	4,170
Other Commercial Real Estate
Allowance for Credit Losses by Portfolio Segment [Roll Forward]
Beginning balance	9,236	17,757	10,817	17,512
Charge-offs	(561)	(547)	(2,332)	(3,082)
Recoveries	89	329	233	1,361
Net charge-offs	(472)	(218)	(2,099)	(1,721)
Provision for loan and covered loan losses and other	(179)	(1,370)	(133)	378
Ending balance	8,585	16,169	8,585	16,169
Consumer
Allowance for Credit Losses by Portfolio Segment [Roll Forward]
Beginning balance	11,945	11,997	13,010	12,862
Charge-offs	(1,828)	(2,523)	(3,856)	(4,887)
Recoveries	213	413	351	520
Net charge-offs	(1,615)	(2,110)	(3,505)	(4,367)
Provision for loan and covered loan losses and other	2,110	2,480	2,935	3,872
Ending balance	12,440	12,367	12,440	12,367
Covered Loans
Allowance for Credit Losses by Portfolio Segment [Roll Forward]
Beginning balance	11,429	12,227	12,559	12,062
Charge-offs	(279)	(1,980)	(524)	(2,686)
Recoveries	277	3	862	11
Net charge-offs	(2)	(1,977)	338	(2,675)
Provision for loan and covered loan losses and other	(2,084)	4,131	(3,554)	4,994
Ending balance	9,343	14,381	9,343	14,381
Reserve for Unfunded Commitments
Allowance for Credit Losses by Portfolio Segment [Roll Forward]
Beginning balance	1,616	2,866	1,616	3,366
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net charge-offs	0	0	0	0
Provision for loan and covered loan losses and other	0	0	0	(500)
Ending balance	$ 1,616	$ 2,866	$ 1,616	$ 2,866

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Securities (Details) (USD $)	3 Months Ended		6 Months Ended			3 Months Ended
	Jun. 30, 2014 obligation	Jun. 30, 2013 obligation	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013	Jun. 30, 2014 Trust-preferred collateralized debt obligations	Jun. 30, 2014 Municipal Securities	Jun. 30, 2014 Hedge Fund Investment	Mar. 31, 2014 Hedge Fund Investment
Securities (Details) - Securities Portfolio [Line Items]
Available-for-sale Securities Pledged as Collateral	$ 864,600,000		$ 864,600,000		$ 755,300,000
Held-to-maturity Securities Pledged as Collateral	0		0		0
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments	4,517,000	216,000	5,618,000	216,000		3,500,000	468,000	518,000	1,100,000
Number Of CDOs Sold	1	1
Carrying Value Of CDO Sold	1,300,000	0	1,300,000	0
Other Than Temporary Impairment Credit Losses Recognized in Earnings Reductions CDO Sold	$ 8,600,000	$ 6,800,000

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Income Taxes (Details) - Components of Income Tax Benefit (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Tax Disclosure [Abstract]
Income before income tax expense	$ 27,142	$ 24,131	$ 52,978	$ 45,066
Income tax expense:
Federal income tax expense	6,727	5,553	13,005	9,913
State income tax expense	1,915	2,402	3,809	4,335
Total income tax expense	$ 8,642	$ 7,955	$ 16,814	$ 14,248
Effective income tax rate (percent)	31.80%	33.00%	31.70%	31.60%

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Subsequent Events (Details) (Great Lakes Financial Resources Inc, Subsequent Event, USD $) In Millions, unless otherwise specified	Jul. 07, 2014
Great Lakes Financial Resources Inc | Subsequent Event
Subsequent Event [Line Items]
Deposits to be acquired	$ 490
Loans to be acquired	234
Transaction value of announced acquisition	$ 58.0

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

6 Months Ended

Jun. 30, 2014

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Past Due Financing Receivables

The following table presents an aging analysis of the Company’s past due loans as of June 30, 2014 and December 31, 2013. 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
June 30, 2014
Commercial and industrial	$	2,059,868	$	8,003	$	5,147	$	13,150	$	2,073,018	$	22,629	$	2,207
Agricultural	330,207		86		333		419		330,626		363		—
Commercial real estate:
Office, retail, and industrial	1,293,378		5,459		13,564		19,023		1,312,401		16,423		—
Multi-family	348,353		625		1,452		2,077		350,430		1,572		231
Construction	187,761		2,271		5,077		7,348		195,109		5,077		—
Other commercial real estate	787,292		4,007		7,025		11,032		798,324		7,930		676
Total commercial real   estate	2,616,784		12,362		27,118		39,480		2,656,264		31,002		907
Total corporate loans	5,006,859		20,451		32,598		53,049		5,059,908		53,994		3,114
Home equity	476,287		3,646		5,152		8,798		485,085		6,580		91
1-4 family mortgages	235,829		2,102		3,225		5,327		241,156		4,091		297
Installment	54,840		382		2,086		2,468		57,308		2,063		31
Total consumer loans	766,956		6,130		10,463		16,593		783,549		12,734		419
Total loans, excluding   covered loans	5,773,815		26,581		43,061		69,642		5,843,457		66,728		3,533
Covered loans	78,725		6,286		19,856		26,142		104,867		13,060		8,464
Total loans	$	5,852,540	$	32,867	$	62,917	$	95,784	$	5,948,324	$	79,788	$	11,997
December 31, 2013
Commercial and industrial	$	1,814,660	$	6,872	$	9,106	$	15,978	$	1,830,638	$	11,767	$	393
Agricultural	321,156		134		412		546		321,702		519		—
Commercial real estate:
Office, retail, and industrial	1,335,027		2,620		16,038		18,658		1,353,685		17,076		1,315
Multi-family	330,960		318		1,595		1,913		332,873		1,848		—
Construction	180,083		23		6,091		6,114		186,197		6,297		—
Other commercial real estate	795,462		5,365		6,244		11,609		807,071		8,153		258
Total commercial real   estate	2,641,532		8,326		29,968		38,294		2,679,826		33,374		1,573
Total corporate loans	4,777,348		15,332		39,486		54,818		4,832,166		45,660		1,966
Home equity	415,791		4,830		6,399		11,229		427,020		6,864		1,102
1-4 family mortgages	268,912		2,046		5,034		7,080		275,992		5,198		548
Installment	42,350		330		2,147		2,477		44,827		2,076		92
Total consumer loans	727,053		7,206		13,580		20,786		747,839		14,138		1,742
Total loans, excluding   covered loans	5,504,401		22,538		53,066		75,604		5,580,005		59,798		3,708
Covered loans	94,211		2,232		37,912		40,144		134,355		20,942		18,081
Total loans	$	5,598,612	$	24,770	$	90,978	$	115,748	$	5,714,360	$	80,740	$	21,789

Allowance for Credit Losses on Financing Receivables

A rollforward of the allowance for credit losses by portfolio segment for the quarters and six months ended June 30, 2014 and 2013 is presented in the table below.

Allowance for Credit Losses by Portfolio Segment

(Dollar amounts in thousands)

	Commercial, Industrial, and Agricultural			Office, Retail, and Industrial			Multi- Family			Construction			Other Commercial Real Estate			Consumer			Covered Loans			Reserve for Unfunded Commitments			Total Allowance
Quarter ended June 30, 2014
Beginning balance	$	27,292		$	13,106		$	1,968		$	5,656		$	9,236		$	11,945		$	11,429		$	1,616		$	82,248
Charge-offs	(2,099		)	(3,511		)	(267		)	(234		)	(561		)	(1,828		)	(279		)	—			(8,779		)
Recoveries	259			290			2			2			89			213			277			—			1,132
Net charge-offs	(1,840		)	(3,221		)	(265		)	(232		)	(472		)	(1,615		)	(2		)	—			(7,647		)
Provision for loan   and covered loan   losses and other	3,742			1,946			345			(539		)	(179		)	2,110			(2,084		)	—			5,341
Ending balance	$	29,194		$	11,831		$	2,048		$	4,885		$	8,585		$	12,440		$	9,343		$	1,616		$	79,942
Quarter ended June 30, 2013
Beginning balance	$	36,544		$	10,695		$	3,704		$	4,667		$	17,757		$	11,997		$	12,227		$	2,866		$	100,457
Charge-offs	(3,116		)	(1,453		)	(213		)	(850		)	(547		)	(2,523		)	(1,980		)	—			(10,682		)
Recoveries	573			35			30			5			329			413			3			—			1,388
Net charge-offs	(2,543		)	(1,418		)	(183		)	(845		)	(218		)	(2,110		)	(1,977		)	—			(9,294		)
Provision for loan   and covered loan   losses and other	(2,259		)	2,580			(97		)	348			(1,370		)	2,480			4,131			—			5,813
Ending balance	$	31,742		$	11,857		$	3,424		$	4,170		$	16,169		$	12,367		$	14,381		$	2,866		$	96,976
Six months ended June 30, 2014
Beginning balance	$	30,381		$	10,405		$	2,017		$	6,316		$	10,817		$	13,010		$	12,559		$	1,616		$	87,121
Charge-offs	(5,779		)	(4,594		)	(357		)	(895		)	(2,332		)	(3,856		)	(524		)	—			(18,337		)
Recoveries	2,419			348			3			160			233			351			862			—			4,376
Net charge-offs	(3,360		)	(4,246		)	(354		)	(735		)	(2,099		)	(3,505		)	338			—			(13,961		)
Provision for loan   and covered loan   losses and other	2,173			5,672			385			(696		)	(133		)	2,935			(3,554		)	—			6,782
Ending balance	$	29,194		$	11,831		$	2,048		$	4,885		$	8,585		$	12,440		$	9,343		$	1,616		$	79,942
Six months ended June 30, 2013
Beginning balance	$	36,761		$	11,432		$	3,575		$	5,242		$	17,512		$	12,862		$	12,062		$	3,366		$	102,812
Charge-offs	(6,291		)	(2,715		)	(378		)	(1,415		)	(3,082		)	(4,887		)	(2,686		)	—			(21,454		)
Recoveries	2,662			37			35			5			1,361			520			11			—			4,631
Net charge-offs	(3,629		)	(2,678		)	(343		)	(1,410		)	(1,721		)	(4,367		)	(2,675		)	—			(16,823		)
Provision for loan   and covered loan   losses and other	(1,390		)	3,103			192			338			378			3,872			4,994			(500		)	10,987
Ending balance	$	31,742		$	11,857		$	3,424		$	4,170		$	16,169		$	12,367		$	14,381		$	2,866		$	96,976

Schedule of Loans and The Related Allowance For Credit Losses

The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of June 30, 2014 and December 31, 2013.

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		Purchased Impaired		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Impaired		Total
June 30, 2014
Commercial, industrial, and   agricultural	$	21,726	$	2,380,505	$	1,413	$	2,403,644	$	2,539	$	26,655	$	—	$	29,194
Commercial real estate:
Office, retail, and industrial	15,605		1,296,796		—		1,312,401		1,576		10,255		—		11,831
Multi-family	1,169		349,129		132		350,430		176		1,857		15		2,048
Construction	4,725		190,384		—		195,109		373		4,512		—		4,885
Other commercial real estate	5,748		789,203		3,373		798,324		913		7,672		—		8,585
Total commercial   real estate	27,247		2,625,512		3,505		2,656,264		3,038		24,296		15		27,349
Total corporate loans	48,973		5,006,017		4,918		5,059,908		5,577		50,951		15		56,543
Consumer	—		774,553		8,996		783,549		—		11,887		553		12,440
Total loans, excluding   covered loans	48,973		5,780,570		13,914		5,843,457		5,577		62,838		568		68,983
Covered loans:
Purchased impaired loans	—		—		75,864		75,864		—		—		8,743		8,743
Other loans	—		29,003		—		29,003		—		600		—		600
Total covered loans	—		29,003		75,864		104,867		—		600		8,743		9,343
Reserve for unfunded   commitments	—		—		—		—		—		1,616		—		1,616
Total loans	$	48,973	$	5,809,573	$	89,778	$	5,948,324	$	5,577	$	65,054	$	9,311	$	79,942
December 31, 2013
Commercial, industrial, and   agricultural	$	13,178	$	2,137,440	$	1,722	$	2,152,340	$	4,046	$	26,335	$	—	$	30,381
Commercial real estate:
Office, retail, and industrial	26,348		1,327,337		—		1,353,685		214		10,191		—		10,405
Multi-family	1,296		331,445		132		332,873		18		1,999		—		2,017
Construction	5,712		180,485		—		186,197		178		6,138		—		6,316
Other commercial real estate	9,298		793,703		4,070		807,071		704		10,113		—		10,817
Total commercial   real estate	42,654		2,632,970		4,202		2,679,826		1,114		28,441		—		29,555
Total corporate loans	55,832		4,770,410		5,924		4,832,166		5,160		54,776		—		59,936
Consumer	—		738,155		9,684		747,839		—		13,010		—		13,010
Total loans, excluding   covered loans	55,832		5,508,565		15,608		5,580,005		5,160		67,786		—		72,946
Covered loans:
Purchased impaired loans	—		—		103,525		103,525		—		—		11,857		11,857
Other loans	—		30,830		—		30,830		—		702		—		702
Total covered loans	—		30,830		103,525		134,355		—		702		11,857		12,559
Reserve for unfunded   commitments	—		—		—		—		—		1,616		—		1,616
Total loans	$	55,832	$	5,539,395	$	119,133	$	5,714,360	$	5,160	$	70,104	$	11,857	$	87,121

Impaired Financing Receivables

The following table presents loans individually evaluated for impairment by class of loan as of June 30, 2014 and December 31, 2013. Purchased impaired loans are excluded from this disclosure.

Impaired Loans Individually Evaluated by Class

(Dollar amounts in thousands)

	June 30, 2014								December 31, 2013
	Recorded Investment In								Recorded Investment In
	Loans with No Specific Reserve		Loans with a Specific Reserve		Unpaid Principal Balance		Specific Reserve		Loans with No Specific Reserve		Loans with a Specific Reserve		Unpaid Principal Balance		Specific Reserve
Commercial and industrial	$	3,381	$	18,345	$	38,524	$	2,539	$	10,047	$	3,131	$	25,887	$	4,046
Agricultural	—		—		—		—		—		—		—		—
Commercial real estate:
Office, retail, and industrial	12,943		2,662		24,416		1,576		23,872		2,476		35,868		214
Multi-family	668		501		1,270		176		1,098		198		1,621		18
Construction	3,552		1,173		6,121		373		4,586		1,126		10,037		178
Other commercial real estate	2,996		2,752		8,891		913		7,553		1,745		11,335		704
Total commercial real   estate	20,159		7,088		40,698		3,038		37,109		5,545		58,861		1,114
Total impaired loans    individually evaluated    for impairment	$	23,540	$	25,433	$	79,222	$	5,577	$	47,156	$	8,676	$	84,748	$	5,160

Impaired Financing Receivables Continued

The average recorded investment and interest income recognized on impaired loans by class for the quarters and six months ended June 30, 2014 and 2013 is presented in the following table.

Average Recorded Investment and Interest Income Recognized on Impaired Loans by Class

(Dollar amounts in thousands)

	Quarters Ended June 30,
	2014				2013
	Average Recorded Investment		Interest Income Recognized (1)		Average Recorded Investment		Interest Income Recognized (1)
Commercial and industrial	$	14,581	$	29	$	25,757	$	1
Agricultural	—		—		—		—
Commercial real estate:
Office, retail, and industrial	20,098		6		23,662		6
Multi-family	1,424		2		1,009		—
Construction	4,788		—		6,397		—
Other commercial real estate	6,393		107		13,762		5
Total commercial real estate	32,703		115		44,830		11
Total impaired loans	$	47,284	$	144	$	70,587	$	12
	Six Months Ended June 30,
	2014				2013
	Average Recorded Investment		Interest Income Recognized (1)		Average Recorded Investment		Interest Income Recognized (1)
Commercial and industrial	$	14,113	$	147	$	24,429	$	3
Agricultural	—		—		—		—
Commercial real estate:
Office, retail, and industrial	22,181		147		22,316		10
Multi-family	1,381		2		845		—
Construction	5,096		—		5,850		—
Other commercial real estate	7,361		115		13,353		8
Total commercial real estate	36,019		264		42,364		18
Total impaired loans	$	50,132	$	411	$	66,793	$	21

⁽¹⁾  Recorded using the cash basis of accounting.

Financing Receivable Credit Quality Indicators

The following tables present credit quality indicators by class for corporate and consumer loans, excluding covered loans, as of June 30, 2014 and December 31, 2013.

Corporate Credit Quality Indicators by Class, Excluding Covered Loans

(Dollar amounts in thousands)

	Pass		Special Mention (1) (4)		Substandard (2) (4)		Non-accrual (3)		Total
June 30, 2014
Commercial and industrial	$	1,980,523	$	50,036	$	19,830	$	22,629	$	2,073,018
Agricultural	329,965		298		—		363		330,626
Commercial real estate:
Office, retail, and industrial	1,250,914		24,233		20,831		16,423		1,312,401
Multi-family	344,279		3,862		717		1,572		350,430
Construction	164,789		8,790		16,453		5,077		195,109
Other commercial real estate	758,821		16,218		15,355		7,930		798,324
Total commercial real estate	2,518,803		53,103		53,356		31,002		2,656,264
Total corporate loans	$	4,829,291	$	103,437	$	73,186	$	53,994	$	5,059,908
December 31, 2013
Commercial and industrial	$	1,780,194	$	23,806	$	14,871	$	11,767	$	1,830,638
Agricultural	320,839		344		—		519		321,702
Commercial real estate:
Office, retail, and industrial	1,284,394		28,677		23,538		17,076		1,353,685
Multi-family	326,901		3,214		910		1,848		332,873
Construction	153,949		8,309		17,642		6,297		186,197
Other commercial real estate	761,465		14,877		22,576		8,153		807,071
Total commercial real estate	2,526,709		55,077		64,666		33,374		2,679,826
Total corporate loans	$	4,627,742	$	79,227	$	79,537	$	45,660	$	4,832,166

⁽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 in the future.

⁽²⁾  Loans categorized as substandard exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. These 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 or result in a loss if the deficiencies are not corrected.

⁽⁴⁾  Total special mention and substandard loans includes accruing TDRs of $3.6 million as of June 30, 2014 and $2.8 million as of December 31, 2013.

Financing Receivable Credit Quality Indicators Continued

Consumer Credit Quality Indicators by Class, Excluding Covered Loans

(Dollar amounts in thousands)

	Performing		Non-accrual		Total
June 30, 2014
Home equity	$	478,505	$	6,580	$	485,085
1-4 family mortgages	237,065		4,091		241,156
Installment	55,245		2,063		57,308
Total consumer loans	$	770,815	$	12,734	$	783,549
December 31, 2013
Home equity	$	420,156	$	6,864	$	427,020
1-4 family mortgages	270,794		5,198		275,992
Installment	42,751		2,076		44,827
Total consumer loans	$	733,701	$	14,138	$	747,839

Troubled Debt Restructuring by Class

The table below presents TDRs by class as of June 30, 2014 and December 31, 2013. A discussion of our accounting policies for TDRs can be found in Note 1, “Summary of Significant Accounting Policies.”

TDRs by Class

(Dollar amounts in thousands)

	As of June 30, 2014						As of December 31, 2013
	Accruing		Non-accrual (1)		Total		Accruing		Non-accrual (1)		Total
Commercial and industrial	$	2,724	$	277	$	3,001	$	6,538	$	2,121	$	8,659
Agricultural	—		—		—		—		—		—
Commercial real estate:
Office, retail, and industrial	178		—		178		10,271		—		10,271
Multi-family	620		242		862		1,038		253		1,291
Construction	—		—		—		—		—		—
Other commercial real estate	448		188		636		4,326		291		4,617
Total commercial real estate	1,246		430		1,676		15,635		544		16,179
Total corporate loans	3,970		707		4,677		22,173		2,665		24,838
Home equity	836		517		1,353		787		512		1,299
1-4 family mortgages	891		476		1,367		810		906		1,716
Installment	—		—		—		—		—		—
Total consumer loans	1,727		993		2,720		1,597		1,418		3,015
Total loans	$	5,697	$	1,700	$	7,397	$	23,770	$	4,083	$	27,853

⁽¹⁾  These TDRs are included in non-accrual loans in the preceding tables.

Troubled Debt Restructurings on Financing Receivables

The following table presents a summary of loans that were restructured during the quarter and six months ended June 30, 2013.

Loans Restructured During the Period

(Dollar amounts in thousands)

	Number of Loans	Pre- Modification Recorded Investment		Funds Disbursed		Interest and Escrow Capitalized		Charge-offs		Post- Modification Recorded Investment
Quarter ended June 30, 2013
Commercial and industrial	2	$	13,354	$	—	$	—	$	—	$	13,354
Office, retail, and industrial	3	386		—		—		—		386
Multi-family	5	1,275		—		57		—		1,332
Other commercial real estate	5	564		—		—		—		564
Home equity	1	125		—		—		—		125
Total TDRs restructured during the period	16	$	15,704	$	—	$	57	$	—	$	15,761
Six months ended June 30, 2013
Commercial and industrial	4	$	14,070	$	—	$	2	$	—	$	14,072
Office, retail, and industrial	4	601		30		—		—		631
Multi-family	5	1,275		—		57		—		1,332
Construction	2	508		—		—		—		508
Other commercial real estate	5	564		—		—		—		564
Home equity	1	125		—		—		—		125
1-4 family mortgages	1	132		—		4		—		136
Total TDRs restructured during the period	22	$	17,275	$	30	$	63	$	—	$	17,368

Schedule of Troubled Debt Restructurings That Defaulted Within Twelve Months of the Restructured Date

The following table presents TDRs that had payment defaults during the quarters and six months ended June 30, 2014 and 2013 where the default occurred within twelve months of the restructure date.

TDRs That Defaulted Within Twelve Months of the Restructure Date

(Dollar amounts in thousands)

	Quarters Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Commercial and industrial	—	$	—	—	$	—	2	$	125	1	$	350
Other commercial real estate	—	—		1	198		—	—		3	354
Total	—	$	—	1	$	198	2	$	125	4	$	704

Troubled Debt Restructuring Activity Rollforward

A rollforward of the carrying value of TDRs for the quarters and six months ended June 30, 2014 and 2013 is presented in the following table.

TDR Rollforward

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Accruing
Beginning balance	$	6,301		$	2,587		$	23,770		$	6,867
Additions	75			2,091			75			3,526
Net payments received	(650		)	(185		)	(1,110		)	(214		)
Returned to performing status	—			—			(18,821		)	(5,037		)
Net transfers from non-accrual	(29		)	3,794			1,783			3,145
Ending balance	5,697			8,287			5,697			8,287
Non-accrual
Beginning balance	1,920			10,405			4,083			10,924
Additions	—			13,670			—			13,842
Net payments received	(23		)	(40		)	(157		)	(535		)
Charge-offs	(152		)	(985		)	(186		)	(1,788		)
Transfers to OREO	(74		)	—			(257		)	(42		)
Loans sold	—			(806		)	—			(806		)
Net transfers to accruing	29			(3,794		)	(1,783		)	(3,145		)
Ending balance	1,700			18,450			1,700			18,450
Total TDRs	$	7,397		$	26,737		$	7,397		$	26,737

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Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	$ 783,549		$ 747,839
Commercial And Industrial | Pass
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	1,980,523		1,780,194
Commercial And Industrial | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	50,036	[1],[2]	23,806	[1],[2]
Commercial And Industrial | Substandard Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	19,830	[1],[3]	14,871	[1],[3]
Commercial And Industrial | Substandard Non-Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	22,629	[4]	11,767	[4]
Commercial And Industrial | Total
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	2,073,018		1,830,638
Agricultural | Pass
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	329,965		320,839
Agricultural | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	298	[1],[2]	344	[1],[2]
Agricultural | Substandard Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	0	[1],[3]	0	[1],[3]
Agricultural | Substandard Non-Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	363	[4]	519	[4]
Agricultural | Total
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	330,626		321,702
Office Retail And Industrial | Pass
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	1,250,914		1,284,394
Office Retail And Industrial | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	24,233	[1],[2]	28,677	[1],[2]
Office Retail And Industrial | Substandard Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	20,831	[1],[3]	23,538	[1],[3]
Office Retail And Industrial | Substandard Non-Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	16,423	[4]	17,076	[4]
Office Retail And Industrial | Total
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	1,312,401		1,353,685
Multi-Family | Pass
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	344,279		326,901
Multi-Family | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	3,862	[1],[2]	3,214	[1],[2]
Multi-Family | Substandard Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	717	[1],[3]	910	[1],[3]
Multi-Family | Substandard Non-Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	1,572	[4]	1,848	[4]
Multi-Family | Total
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	350,430		332,873
Construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	164,789		153,949
Construction | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	8,790	[1],[2]	8,309	[1],[2]
Construction | Substandard Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	16,453	[1],[3]	17,642	[1],[3]
Construction | Substandard Non-Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	5,077	[4]	6,297	[4]
Construction | Total
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	195,109		186,197
Other Commercial Real Estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	758,821		761,465
Other Commercial Real Estate | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	16,218	[1],[2]	14,877	[1],[2]
Other Commercial Real Estate | Substandard Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	15,355	[1],[3]	22,576	[1],[3]
Other Commercial Real Estate | Substandard Non-Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	7,930	[4]	8,153	[4]
Other Commercial Real Estate | Total
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	798,324		807,071
Total Commercial Real Estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	2,518,803		2,526,709
Total Commercial Real Estate | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	53,103	[1],[2]	55,077	[1],[2]
Total Commercial Real Estate | Substandard Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	53,356	[1],[3]	64,666	[1],[3]
Total Commercial Real Estate | Substandard Non-Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	31,002	[4]	33,374	[4]
Total Commercial Real Estate | Total
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	2,656,264		2,679,826
Total Corporate Loans | Pass
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	4,829,291		4,627,742
Total Corporate Loans | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	103,437	[1],[2]	79,227	[1],[2]
Total Corporate Loans | Substandard Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	73,186	[1],[3]	79,537	[1],[3]
Total Corporate Loans | Substandard Non-Accrual
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	53,994	[4]	45,660	[4]
Total Corporate Loans | Total
Financing Receivable, Recorded Investment [Line Items]
Credit Quality Indicators by Class	$ 5,059,908		$ 4,832,166

[1] Total special mention and substandard loans includes accruing TDRs of $3.6 million as of June 30, 2014 and $2.8 million as of December 31, 2013.

[2] 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 in the future.

[3] Loans categorized as substandard exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time.

[4] Loans categorized as non-accrual exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected.

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Acquired Loans (Details) - Changes in FDIC Indemnification Asset (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
FDIC Indemnification Asset [Roll Forward]
Beginning balance	$ 15,537	$ 28,958	$ 16,585	$ 37,051
Amortization	(818)	(908)	(2,134)	(2,232)
Change in expected reimbursements from the FDIC for changes in expected credit losses	(629)	(1,512)	532	(2,454)
Payments received from the FDIC	(3,814)	(3,380)	(4,707)	(9,207)
Ending balance	$ 10,276	$ 23,158	$ 10,276	$ 23,158

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Securities (Details) - Changes In Credit Losses Recognized In Earnings (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Changes in Credit Losses Recognized in Earnings [Roll Forward]
Beginning balance	$ 32,450		$ 38,803		$ 32,422		$ 38,803
Losses on securities that previously had OTTI	0	[1]	0	[1]	28	[1]	0	[1]
Losses on securities that did not previously have OTTI	0	[1]	0	[1]	0	[1]	0	[1]
Reduction for sales of securities (2)	(8,570)	[2]	(6,750)	[2]	(8,570)	[2]	(6,750)	[2]
Ending balance	$ 23,880		$ 32,053		$ 23,880		$ 32,053

[1] Included in net securities gains in the Condensed Consolidated Statements of Income.

[2] During the second quarter of 2014, one CDO with a carrying value of $1.3 million was sold. In addition, one CDO with a carrying value of zero was sold during the second quarter of 2013. These CDOs had OTTI of $8.6 million and $6.8 million, respectively, that were previously recognized in earnings.

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Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013		Jun. 30, 2013
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items]
Accruing TDRs	$ 5,697		$ 23,770
Non-accrual	1,700	[1]	4,083	[1]
Total	7,397		27,853		26,737
Commercial And Industrial
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items]
Accruing TDRs	2,724		6,538
Non-accrual	277	[1]	2,121	[1]
Total	3,001		8,659
Agricultural
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items]
Accruing TDRs	0		0
Non-accrual	0	[1]	0	[1]
Total	0		0
Office Retail And Industrial
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items]
Accruing TDRs	178		10,271
Non-accrual	0	[1]	0	[1]
Total	178		10,271
Multi-Family
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items]
Accruing TDRs	620		1,038
Non-accrual	242	[1]	253	[1]
Total	862		1,291
Construction
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items]
Accruing TDRs	0		0
Non-accrual	0	[1]	0	[1]
Total	0		0
Other Commercial Real Estate
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items]
Accruing TDRs	448		4,326
Non-accrual	188	[1]	291	[1]
Total	636		4,617
Total Commercial Real Estate
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items]
Accruing TDRs	1,246		15,635
Non-accrual	430	[1]	544	[1]
Total	1,676		16,179
Total Corporate Loans
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items]
Accruing TDRs	3,970		22,173
Non-accrual	707	[1]	2,665	[1]
Total	4,677		24,838
Home Equity Line of Credit
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items]
Accruing TDRs	836		787
Non-accrual	517	[1]	512	[1]
Total	1,353		1,299
1-4 family mortgages
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items]
Accruing TDRs	891		810
Non-accrual	476	[1]	906	[1]
Total	1,367		1,716
Installment Loans
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items]
Accruing TDRs	0		0
Non-accrual	0	[1]	0	[1]
Total	0		0
Total Consumer Loans
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items]
Accruing TDRs	1,727		1,597
Non-accrual	993	[1]	1,418	[1]
Total	$ 2,720		$ 3,015

[1] These TDRs are included in non-accrual loans in the preceding tables.

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Fair Value (Details) - Characteristics of CDOs and Unobservable Inputs Significant to the Valuation of CDOs (USD $) In Thousands, unless otherwise specified									6 Months Ended
	Jun. 30, 2014		Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013		Mar. 31, 2013	Dec. 31, 2012	Jun. 30, 2014 No 1 underlying_issuer		Jun. 30, 2014 No 2 underlying_issuer		Jun. 30, 2014 No 3 underlying_issuer		Jun. 30, 2014 No 4 underlying_issuer		Jun. 30, 2014 No 5 underlying_issuer
Characteristics:
Class									C-1		C-1		C-1		B1		C
Original par (in Dollars)									$ 17,500		$ 15,000		$ 15,000		$ 15,000		$ 6,500
Amortized cost (in Dollars)									7,140		5,598		12,377		13,729		6,179
Fair value (in Dollars)	$ 18,436	[1]	$ 21,666	$ 18,309	$ 14,917	[1]	$ 12,924	$ 12,129	$ 4,849		$ 662		$ 4,641		$ 5,838		$ 2,446
Lowest credit rating (Moody’s)									Ca		Ca		Ca		Ca		Ca
Number of underlying Issuers (underlying issuers)									43		54		57		58		75
Percent of Issuers currently performing (percent)									83.70%		79.60%		75.40%		55.20%		73.30%
Current deferral and default percent (percent)									8.70%	[2]	11.40%	[2]	11.80%	[2]	29.80%	[2]	22.50%	[2]
Expected future deferral and default percent (percent)									12.30%	[3]	12.00%	[3]	15.20%	[3]	22.30%	[3]	9.80%	[3]
Excess subordination percent (percent)									0.00%	[4]	0.00%	[4]	0.00%	[4]	1.50%	[4]	11.40%	[4]
Discount rate risk adjustment (percent)									12.50%	[5]	14.30%	[5]	13.30%	[5]	11.80%	[5]	12.30%	[5]
Significant unobservable inputs, weighted average of Issuers:
Probability of prepayment (percent)									15.20%		7.60%		4.40%		6.10%		3.50%
Probability of default (percent)									18.50%		23.10%		21.20%		28.30%		28.80%
Loss given default (percent)									88.20%		83.40%		89.40%		92.90%		96.20%
Probability of deferral cure (percent)									23.20%		17.70%		31.30%		41.10%		27.60%

[1] During the second quarter of 2014, one CDO with a carrying value of $1.3 million was sold. In addition, one CDO with a carrying value of zero was sold during the second quarter of 2013

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

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

[4] 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.

[5] Cash flows are discounted at LIBOR plus this adjustment to reflect the higher risk inherent in these securities.

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Derivative Financial Instrument (Details) - Cash Flow Hedges (Cash Flow Hedging, USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount outstanding	$ 250,000	$ 0
Derivative asset fair value	4	0
Derivative liability fair value	$ (202)	$ 0
Weighted-average interest rate received	1.55%	0.00%
Weighted-average interest rate paid	0.15%	0.00%
Weighted-average maturity (in years)	4 years 10 months 26 days	0 years

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Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Loans and Related Allowance for Credit Losses by Portfolio Segment (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
Loans [Abstract]
Purchased Impaired	$ 89,778		$ 119,133
Total Loans	5,948,324		5,714,360
Allowance for Credit Losses [Abstract]
Total allowance for credit losses	79,942	82,248	87,121	96,976	100,457	102,812
Commercial Loan And Agricultural
Loans [Abstract]
Individually Evaluated for Impairment	21,726		13,178
Collectively Evaluated for Impairment	2,380,505		2,137,440
Purchased Impaired	1,413		1,722
Total Loans	2,403,644		2,152,340
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	2,539		4,046
Collectively Evaluated for Impairment	26,655		26,335
Purchased Impaired	0		0
Total allowance for credit losses	29,194		30,381
Office Retail And Industrial
Loans [Abstract]
Individually Evaluated for Impairment	15,605		26,348
Collectively Evaluated for Impairment	1,296,796		1,327,337
Purchased Impaired	0		0
Total Loans	1,312,401		1,353,685
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	1,576		214
Collectively Evaluated for Impairment	10,255		10,191
Purchased Impaired	0		0
Total allowance for credit losses	11,831		10,405
Multi-Family
Loans [Abstract]
Individually Evaluated for Impairment	1,169		1,296
Collectively Evaluated for Impairment	349,129		331,445
Purchased Impaired	132		132
Total Loans	350,430		332,873
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	176		18
Collectively Evaluated for Impairment	1,857		1,999
Purchased Impaired	15		0
Total allowance for credit losses	2,048		2,017
Construction
Loans [Abstract]
Individually Evaluated for Impairment	4,725		5,712
Collectively Evaluated for Impairment	190,384		180,485
Purchased Impaired	0		0
Total Loans	195,109		186,197
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	373		178
Collectively Evaluated for Impairment	4,512		6,138
Purchased Impaired	0		0
Total allowance for credit losses	4,885		6,316
Other Commercial Real Estate
Loans [Abstract]
Individually Evaluated for Impairment	5,748		9,298
Collectively Evaluated for Impairment	789,203		793,703
Purchased Impaired	3,373		4,070
Total Loans	798,324		807,071
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	913		704
Collectively Evaluated for Impairment	7,672		10,113
Purchased Impaired	0		0
Total allowance for credit losses	8,585		10,817
Commercial Real Estate
Loans [Abstract]
Individually Evaluated for Impairment	27,247		42,654
Collectively Evaluated for Impairment	2,625,512		2,632,970
Purchased Impaired	3,505		4,202
Total Loans	2,656,264		2,679,826
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	3,038		1,114
Collectively Evaluated for Impairment	24,296		28,441
Purchased Impaired	15		0
Total allowance for credit losses	27,349		29,555
Total Corporate Loans
Loans [Abstract]
Individually Evaluated for Impairment	48,973		55,832
Collectively Evaluated for Impairment	5,006,017		4,770,410
Purchased Impaired	4,918		5,924
Total Loans	5,059,908		4,832,166
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	5,577		5,160
Collectively Evaluated for Impairment	50,951		54,776
Purchased Impaired	15		0
Total allowance for credit losses	56,543		59,936
Consumer
Loans [Abstract]
Individually Evaluated for Impairment	0		0
Collectively Evaluated for Impairment	774,553		738,155
Purchased Impaired	8,996		9,684
Total Loans	783,549		747,839
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	0		0
Collectively Evaluated for Impairment	11,887		13,010
Purchased Impaired	553		0
Total allowance for credit losses	12,440		13,010
Total Loans Excluding Covered Loans
Loans [Abstract]
Individually Evaluated for Impairment	48,973		55,832
Collectively Evaluated for Impairment	5,780,570		5,508,565
Purchased Impaired	13,914		15,608
Total Loans	5,843,457		5,580,005
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	5,577		5,160
Collectively Evaluated for Impairment	62,838		67,786
Purchased Impaired	568		0
Total allowance for credit losses	68,983		72,946
Purchased Impaired Loans
Loans [Abstract]
Individually Evaluated for Impairment	0		0
Collectively Evaluated for Impairment	0		0
Purchased Impaired	75,864		103,525
Total Loans	75,864		103,525
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	0		0
Collectively Evaluated for Impairment	0		0
Purchased Impaired	8,743		11,857
Total allowance for credit losses	8,743		11,857
Other Covered Loans
Loans [Abstract]
Individually Evaluated for Impairment	0		0
Collectively Evaluated for Impairment	29,003		30,830
Purchased Impaired	0		0
Total Loans	29,003		30,830
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	0		0
Collectively Evaluated for Impairment	600		702
Purchased Impaired	0		0
Total allowance for credit losses	600		702
Covered Loans
Loans [Abstract]
Individually Evaluated for Impairment	0		0
Collectively Evaluated for Impairment	29,003		30,830
Purchased Impaired	75,864		103,525
Total Loans	104,867		134,355
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	0		0
Collectively Evaluated for Impairment	600		702
Purchased Impaired	8,743		11,857
Total allowance for credit losses	9,343		12,559
Reserve for Unfunded Commitments
Loans [Abstract]
Individually Evaluated for Impairment	0		0
Collectively Evaluated for Impairment	0		0
Purchased Impaired	0		0
Total Loans	0		0
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	0		0
Collectively Evaluated for Impairment	1,616		1,616
Purchased Impaired	0		0
Total allowance for credit losses	1,616		1,616
Total Loans Included in Calculation of Allowance [Member]
Loans [Abstract]
Individually Evaluated for Impairment	48,973		55,832
Collectively Evaluated for Impairment	5,809,573		5,539,395
Purchased Impaired	89,778		119,133
Total Loans	5,948,324		5,714,360
Allowance for Credit Losses [Abstract]
Individually Evaluated for Impairment	5,577		5,160
Collectively Evaluated for Impairment	65,054		70,104
Purchased Impaired	9,311		11,857
Total allowance for credit losses	$ 79,942		$ 87,121

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

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 in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") for quarterly reports on Form 10-Q and reflect all adjustments that management deems necessary for the fair presentation of the financial position and results of operations for the periods presented. The results of operations for the quarter and six month period ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.

The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles (“GAAP”) and general practices within the banking industry. The accompanying quarterly statements do not include certain information and footnote disclosures required by GAAP for complete annual financial statements. Therefore, these financial statements should be read in conjunction with the Company’s 2013 Annual Report on Form 10-K (“2013 10-K”). 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.

Principles of Consolidation – The accompanying condensed consolidated financial statements include the financial position 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 condensed consolidated financial statements.

Use of Estimates – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed 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.

The accounting policies related to loans, the allowance for credit losses, the FDIC indemnification asset, and derivative financial instruments are presented below. For a summary of all other significant accounting policies, please refer to Note 1, “Summary of Significant Accounting Policies,” in the Company’s 2013 10-K.

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

Purchased Impaired Loans– Purchased impaired loans include acquired loans that had evidence of credit deterioration since origination and it was probable at acquisition that the Company would not collect all contractually required principal and interest payments. Evidence of credit deterioration was evaluated using various indicators, such as past due and non-accrual status. Other key considerations included past performance of the institutions' credit underwriting standards, completeness and accuracy of credit files, maintenance of risk ratings, and age of appraisals. Lease and revolving loans do not qualify to be accounted for as purchased impaired loans. No allowance for credit losses is recorded on these loans at the acquisition date. Purchased impaired loans are recorded at fair value, and are accounted for prospectively based on estimates of expected cash flows. To estimate the fair value, 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. The fair values of larger balance commercial loans are estimated 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 the difference between contractually required payments and the cash flows expected to be collected at acquisition.

Subsequent increases in cash flows are recognized as interest income prospectively. The present value of any decreases in expected cash flows is recognized by recording a charge-off through the allowance for loan and covered loan losses or establishing an allowance for loan and covered loan losses.

Non-accrual Loans– Generally, corporate loans are placed on non-accrual status (i) when either principal or interest payments become 90 days or more past due 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 warrants a downgrade to non-accrual regardless of past due status. 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 that the Company will collect all principal and interest.

Commercial loans and loans secured by real estate are charged-off when deemed uncollectible. A loss is recorded if the net realizable value of the underlying collateral is less than the outstanding principal and interest. 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 usually charged-off no later than the end of the month in which the loan becomes 120 days past due.

Purchased impaired loans are generally 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 is not recognized on those loans until the timing and amount of the future cash flows can be reasonably determined.

Troubled Debt Restructurings (“TDRs”) – A restructuring is considered a TDR when (i) the borrower is experiencing financial difficulties and (ii) the creditor grants a concession, such as forgiveness of principal, reduction of the interest rate, changes in payments, or extension of the maturity date. Loans are not classified as TDRs when the modification is short-term or results in an insignificant delay in payments. The Company’s TDRs are determined on a case-by-case basis.

The Company does not accrue interest on a TDR 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 future capacity to perform under the modified terms. Generally, six months of consecutive payment performance 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 the borrower’s 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. For TDRs to be removed from TDR status in the calendar year after the restructuring, the loans must (i) have an interest rate and terms that reflect market conditions at the time of restructuring, and (ii) be in compliance with the modified terms. If the loan was restructured at below market rates and terms, it continues to be separately reported as restructured until it is paid in full or charged-off.

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

A loan is considered impaired when it is probable that the Company will not collect all contractual principal and interest. With the exception of accruing TDRs, impaired loans are classified as non-accrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and installment loans. 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 collateral-dependent loans is based on the fair value of the underlying collateral, less costs to sell. The value of other loans is measured using the present value of expected future cash flows discounted at the loan’s initial effective interest rate. 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 –The Company’s accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is sufficiently collateralized and in the process of renewal or collection.

Allowance for Credit Losses – The allowance for credit losses is comprised of the allowance for loan losses, the allowance for covered 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 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.

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

Allowance for Loan Losses– The allowance for loan losses consists of (i) specific reserves for individual loans where the recorded investment exceeds the value, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) and allowance based on 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. If the value of an impaired loan is less than the recorded book value, the Company either establishes a valuation allowance (i.e., a specific reserve) equal to the excess of the book value over the value of the loan as a component of the allowance for loan losses or charges off the amount if it is a confirmed loss.

The general reserve component is based on a loss migration analysis, which examines actual loss experience by loan category for a rolling 8-quarter period and the related internal risk rating for corporate loans. The loss migration analysis is updated quarterly using actual loss experience. This component is then adjusted based on management’s consideration of many internal and external qualitative factors, including:

• Changes in the composition of the loan portfolio, trends in the volume of loans, and trends in delinquent and non-accrual loans that could indicate that 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 effect of any concentration of credit and changes in the level of concentrations, such as 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.

• The effect of other external factors, such as competition and legal and regulatory requirements, on the Company’s loan portfolio.

Allowance for Covered Loan Losses– The Company’s allowance for covered loan losses reflects the difference between the carrying value and the discounted present value of the estimated cash flows of the covered purchased impaired loans. On a periodic basis, the adequacy of this allowance is determined through a re-estimation of cash flows on all of the outstanding covered purchased impaired loans using either a probability of default/loss given default (“PD/LGD”) methodology or a specific review methodology. The PD/LGD model is an expected loss model that estimates future cash flows using a probability of default curve and loss given default estimates.

Reserve for Unfunded Commitments– The Company also maintains a reserve for unfunded commitments, including letters of credit, for the risk of loss inherent in these arrangements. The reserve for unfunded commitments is estimated using the loss migration analysis from the allowance for loan losses, adjusted for 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 given the difficulty of assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the 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.

FDIC Indemnification Asset – The majority of loans and OREO acquired through FDIC-assisted transactions are covered by loss share agreements with the FDIC (the “FDIC Agreements”), under which the FDIC reimburses the Company for the majority of the losses and eligible expenses related to these assets. The FDIC indemnification asset represents the present value of future expected reimbursements from the FDIC. Since the indemnified items are covered loans and covered OREO, which are initially measured at fair value, the FDIC indemnification asset is also initially measured at fair value by discounting the cash flows expected to be received from the FDIC. These cash flows are estimated by multiplying estimated losses on purchased impaired loans and OREO by the reimbursement rates in the FDIC Agreements.

The balance of the FDIC indemnification asset is adjusted periodically to reflect changes in estimated cash flows. Decreases in estimated reimbursements from the FDIC are recorded prospectively through amortization and increases in estimated reimbursements from the FDIC are recognized by an increase in the carrying value of the indemnification asset. Payments from the FDIC for reimbursement of losses result in a reduction of the FDIC indemnification asset.

Derivative Financial Instruments – 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. All derivative instruments are recorded at fair value as either other assets or other liabilities in the Consolidated Statements of Financial Condition. Subsequent changes in a derivative’s fair value are recognized in earnings unless specific hedge accounting criteria are met.

On the date the Company enters into a derivative contract, the derivative is designated as a fair value hedge, a cash flow hedge, or a non-hedge derivative instrument. Fair value hedges are designed to mitigate exposure to changes in the fair value of an asset or liability attributable to a particular risk, such as interest rate risk. Cash flow hedges are designed to mitigate exposure to variability in expected future cash flows to be received or paid related to an asset, liability, or other type of forecasted transaction. The Company formally documents all relationships between hedging instruments and hedged items, including its risk management objective and strategy.

At the hedge’s inception and quarterly thereafter, a formal assessment is performed to determine the effectiveness of the derivative in offsetting changes in the fair values or cash flows of the hedged items in the current period and prospectively. If a derivative instrument designated as a hedge is terminated or ceases to be highly effective, hedge accounting is discontinued prospectively, and the gain or loss is amortized into earnings. For fair value hedges, the gain or loss is amortized over the remaining life of the hedged asset or liability. For cash flow hedges, the gain or loss is amortized over the same period that the forecasted hedged transactions impact earnings. If the hedged item is disposed of, any fair value adjustments are included in the gain or loss from the disposition of the hedged item. If the forecasted transaction is no longer probable, the gain or loss is included in earnings immediately.

For effective fair value hedges, changes in the fair value of the derivative instruments, as well as changes in the fair value of the hedged item, are recognized in earnings. For cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of accumulated other comprehensive loss and is reclassified to earnings when the hedged transaction is reflected in earnings.

Ineffectiveness is calculated based on the change in fair value of the hedged item compared with the change in fair value of the hedging instrument. For all types of hedges, any ineffectiveness in the hedging relationship is recognized in earnings during the period the ineffectiveness occurs.

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Derivative Financial Instruments (Details) - Other Derivative Instruments (Other Derivative Instruments, USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Other Derivative Instruments
Derivative [Line Items]
Gross notional amount outstanding	$ 350,669		$ 256,638
Derivative asset fair value	5,019		2,235
Derivative liability fair value	(5,019)		(2,235)
Fair value of assets needed to settle derivative transactions	$ 5,089	[1]	$ 1,305	[1]

[1] This amount represents the fair value if credit risk related contingent features were triggered.

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Acquired Loans (Details) - Changes in Accretable Yield (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Changes in Accretable Yield [Roll Forward]
Beginning balance	$ 32,010		$ 45,532		$ 36,792		$ 51,498
Accretion	(3,421)		(4,456)		(6,931)		(8,342)
Other	6,563	[1]	6,028	[1]	5,291	[1]	3,948	[1]
Ending balance	$ 35,152		$ 47,104		$ 35,152		$ 47,104

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

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Commitments, Guarantees, and Contingent Liabilities (Tables)

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments Disclosure

Contractual or Notional Amounts of Financial Instruments

(Dollar amounts in thousands)

	June 30, 2014		December 31, 2013
Commitments to extend credit:
Commercial, industrial, and agricultural	$	1,140,571	$	1,077,201
Commercial real estate	125,437		133,867
Home equity	283,761		268,311
Other commitments (1)	179,969		181,702
Total commitments to extend credit	$	1,729,738	$	1,661,081
Standby letters of credit	$	110,715	$	110,453
Recourse on assets sold:
Unpaid principal balance of loans sold	$	179,981	$	170,330
Carrying value of recourse obligation (2)	163		162

⁽¹⁾  Other commitments includes installment and overdraft protection program commitments.

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

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Derivatives

Fair Value Hedges

(Dollar amounts in thousands)

	June 30, 2014			December 31, 2013
Gross notional amount outstanding	$	14,149		$	14,730
Derivative liability fair value	(1,291		)	(1,472		)
Weighted-average interest rate received	2.06		%	2.08		%
Weighted-average interest rate paid	6.38		%	6.39		%
Weighted-average maturity (in years)	3.27			3.76
Fair value of assets needed to settle derivative transactions (1)	$	1,319		$	1,502

⁽¹⁾  This amount represents the fair value if credit risk related contingent features were triggered.

Cash Flow Hedges

(Dollar amounts in thousands)

	June 30, 2014			December 31, 2013
Gross notional amount outstanding	$	250,000		$	—
Derivative asset fair value	4			—
Derivative liability fair value	(202		)	—
Weighted-average interest rate received	1.55		%	—
Weighted-average interest rate paid	0.15		%	—
Weighted-average maturity (in years)	4.90			—

Schedule of Derivative Instruments

Other Derivative Instruments

(Dollar amounts in thousands)

	June 30, 2014			December 31, 2013
Gross notional amount outstanding	$	350,669		$	256,638
Derivative asset fair value	5,019			2,235
Derivative liability fair value	(5,019		)	(2,235		)
Fair value of assets needed to settle derivative transactions (1)	5,089			1,305

⁽¹⁾  This amount represents the fair value if credit risk related contingent features were triggered.

Offsetting Assets

Offsetting Derivatives

(Dollar amounts in thousands)

	Derivative Assets						Derivative Liabilities
	Fair Value						Fair Value
	June 30, 2014			December 31, 2013			June 30, 2014			December 31, 2013
Gross amounts recognized	$	5,023		$	2,235		$	6,512		$	3,707
Less: Amounts offset in the Consolidated Statements of   Financial Condition	—			—			—			—
Net amount presented in the Consolidated Statements of   Financial Condition (1)	5,023			2,235			6,512			3,707
Gross amounts not offset in the Consolidated Statements of Financial Condition
Offsetting derivative positions	(79		)	(704		)	(79		)	(704		)
Cash collateral pledged	—			—			(6,433		)	(3,003		)
Net credit exposure	$	4,944		$	1,531		$	—		$	—

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

Offsetting Liabilities

Offsetting Derivatives

(Dollar amounts in thousands)

	Derivative Assets						Derivative Liabilities
	Fair Value						Fair Value
	June 30, 2014			December 31, 2013			June 30, 2014			December 31, 2013
Gross amounts recognized	$	5,023		$	2,235		$	6,512		$	3,707
Less: Amounts offset in the Consolidated Statements of   Financial Condition	—			—			—			—
Net amount presented in the Consolidated Statements of   Financial Condition (1)	5,023			2,235			6,512			3,707
Gross amounts not offset in the Consolidated Statements of Financial Condition
Offsetting derivative positions	(79		)	(704		)	(79		)	(704		)
Cash collateral pledged	—			—			(6,433		)	(3,003		)
Net credit exposure	$	4,944		$	1,531		$	—		$	—

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

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Earnings Per Common Share (Details) - Basic and Diluted Earnings Per Common Share (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Earnings Per Share, Basic and Diluted [Abstract]
Net income	$ 18,500		$ 16,176		$ 36,164		$ 30,818
Net income applicable to non-vested restricted shares	(230)		(219)		(455)		(431)
Net income applicable to common shares	$ 18,270		$ 15,957		$ 35,709		$ 30,387
Weighted-average common shares outstanding (in Shares)	74,322		74,017		74,235		73,942
Dilutive effect of common stock equivalents (in Shares)	11		7		12		8
Weighted-average diluted common shares outstanding (in Shares)	74,333		74,024		74,247		73,950
Basic earnings (loss) per common share (in Dollars per share)	$ 0.25		$ 0.22		$ 0.48		$ 0.41
Diluted earnings (loss) per common share (in Dollars per share)	$ 0.25		$ 0.22		$ 0.48		$ 0.41
Anti-dilutive shares not included in the computation of diluted earnings per common share (in thousands)	1,177	[1]	1,447	[1]	1,246	[1]	1,520	[1]

[1] This amount represents outstanding stock options for which the exercise price is greater than the average market price of the Company's common stock.

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Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Financing Receivable, Modifications [Line Items]
Accruing TDRs	$ 5,697,000		$ 23,770,000
Valuation Allowance On Troubled Debt Restructured Loans	0		2,000,000
TDRs Returned to Performing Status	18,800,000	5,000,000
Special Mention and Substandard Loans
Financing Receivable, Modifications [Line Items]
Accruing TDRs	$ 3,600,000		$ 2,800,000

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Fair Value (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis

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

Recurring Fair Value Measurements

(Dollar amounts in thousands)

	June 30, 2014						December 31, 2013
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Trading securities:
Money market funds	$	1,369	$	—	$	—	$	1,847	$	—	$	—
Mutual funds	16,862		—		—		15,470		—		—
Total trading securities	18,231		—		—		17,317		—		—
Securities available-for-sale:
U.S. Agency securities	—		501		—		—		500		—
CMOs	—		441,465		—		—		475,768		—
Other MBSs	—		127,492		—		—		136,164		—
Municipal securities	—		443,885		—		—		461,393		—
CDOs	—		—		18,436		—		—		18,309
Corporate debt securities	—		15,235		—		—		14,929		—
Hedge fund investment	—		816		—		—		3,179		—
Other equity securities	44		2,601		—		44		2,439		—
Total securities   available-for-sale	44		1,031,995		18,436		44		1,094,372		18,309
Mortgage servicing rights (1)	—		—		1,885		—		—		1,893
Derivative assets (1)	—		5,023		—		—		2,235		—
Liabilities:
Derivative liabilities (2)	$	—	$	6,512	$	—	$	—	$	3,707	$	—

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

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

Fair Value Inputs, Assets, Quantitative Information

Information for each CDO, as well as the significant unobservable assumptions, is presented in the following table.

Characteristics of CDOs and Significant Unobservable Inputs

Used in the Valuation of CDOs as of June 30, 2014

(Dollar amounts in thousands)

	CDO Number
	1			2			3			4			5
Characteristics:
Class	C-1			C-1			C-1			B1			C
Original par	$	17,500		$	15,000		$	15,000		$	15,000		$	6,500
Amortized cost	7,140			5,598			12,377			13,729			6,179
Fair value	4,849			662			4,641			5,838			2,446
Lowest credit rating (Moody’s)	Ca			Ca			Ca			Ca			Ca
Number of underlying Issuers	43			54			57			58			75
Percent of Issuers currently   performing	83.7		%	79.6		%	75.4		%	55.2		%	73.3		%
Current deferral and default percent (1)	8.7		%	11.4		%	11.8		%	29.8		%	22.5		%
Expected future deferral and   default percent (2)	12.3		%	12.0		%	15.2		%	22.3		%	9.8		%
Excess subordination percent (3)	—		%	—		%	—		%	1.5		%	11.4		%
Discount rate risk adjustment (4)	12.5		%	14.3		%	13.3		%	11.8		%	12.3		%
Significant unobservable inputs, weighted average of Issuers:
Probability of prepayment	15.2		%	7.6		%	4.4		%	6.1		%	3.5		%
Probability of default	18.5		%	23.1		%	21.2		%	28.3		%	28.8		%
Loss given default	88.2		%	83.4		%	89.4		%	92.9		%	96.2		%
Probability of deferral cure	23.2		%	17.7		%	31.3		%	41.1		%	27.6		%

⁽¹⁾  Represents actual deferrals and defaults, net of recoveries, as a percent of the original collateral.

⁽²⁾  Represents expected future deferrals and defaults, net of recoveries, as a percent of the remaining performing collateral. 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.

⁽³⁾  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.

⁽⁴⁾  Cash flows are discounted at LIBOR plus this adjustment to reflect the higher risk inherent in these securities.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

A rollforward of the carrying value of CDOs for the quarters and six months ended June 30, 2014 and 2013 is presented in the following table.

Rollforward of the Carrying Value of CDOs

(Dollar amounts in thousands)

	Quarters Ended   June 30,					Six Months Ended   June 30,
	2014			2013		2014			2013
Beginning balance	$	21,666		$	12,924	$	18,309		$	12,129
Change in other comprehensive income (loss) (1)	(1,721		)	1,993		1,636			2,788
Purchases, sales, issuances, settlements, and paydowns (2)	(1,509		)	—		(1,509		)	—
Ending balance	$	18,436		$	14,917	$	18,436		$	14,917
Change in unrealized losses recognized in earnings related to   securities still held at end of period	$	—		$	—	$	—		$	—

⁽¹⁾  Included in unrealized holding gains (losses) in the Consolidated Statements of Comprehensive Income.

⁽²⁾  During the second quarter of 2014, one CDO with a carrying value of $1.3 million was sold. In addition, one CDO with a carrying value of zero was sold during the second quarter of 2013

Fair Value Measurements, Nonrecurring

The following table provides the 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 by level in the fair value hierarchy.

Non-Recurring Fair Value Measurements

(Dollar amounts in thousands)

	June 30, 2014						December 31, 2013
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Collateral-dependent impaired loans (1)	$	—	$	—	$	23,111	$	—	$	—	$	13,103
OREO (2)	—		—		16,266		—		—		13,347
Loans held-for-sale (3)	—		—		21,125		—		—		4,739
Assets held-for-sale (4)	—		—		4,318		—		—		4,027

⁽¹⁾  Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented.

⁽²⁾  Includes OREO and covered OREO with fair value adjustments subsequent to initial transfer that occurred during the periods presented.

⁽³⁾  Included in other assets in the Consolidated Statements of Financial Condition.

⁽⁴⁾  Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition.

Fair Value, by Balance Sheet Grouping

For certain financial instruments that are not required to be measured at fair value in the Consolidated Statements of Financial Condition, the Company must disclose the estimated fair values and the level within the fair value hierarchy as shown in the following table.

Fair Value Measurements of Other Financial Instruments

(Dollar amounts in thousands)

		June 30, 2014				December 31, 2013
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and due from banks	1	$	155,099	$	155,099	$	110,417	$	110,417
Interest-bearing deposits in other banks	2	322,874		322,874		476,824		476,824
Securities held-to-maturity	2	26,471		27,076		44,322		43,387
FHLB and Federal Reserve Bank stock	2	35,588		35,588		35,161		35,161
Net loans	3	5,869,998		5,775,061		5,628,855		5,544,146
FDIC indemnification asset	3	10,276		2,464		16,585		7,829
Investment in BOLI	3	194,502		194,502		193,167		193,167
Accrued interest receivable	3	23,633		23,633		25,735		25,735
Other interest earning assets	3	5,117		5,297		6,550		6,809
Liabilities:
Deposits	2	$	6,895,250	$	6,892,876	$	6,766,101	$	6,765,404
Borrowed funds	2	104,201		104,201		224,342		226,839
Senior and subordinated debt	1	190,996		193,628		190,932		201,147
Accrued interest payable	2	2,164		2,164		2,400		2,400

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Recent Events Recent Events (Details) - Acquisition (Popular Community Bank, USD $) In Millions, unless otherwise specified	Apr. 22, 2014 retail_branch
Popular Community Bank
Business Acquisition [Line Items]
Branches to be acquired	12
Deposits to be acquired	$ 738
Loans to be acquired	$ 561

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Consolidated Statements Of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Statement of Cash Flows [Abstract]
Net cash provided by operating activities	$ 56,405	$ 70,414
Investing Activities
Proceeds from maturities, prepayments, and calls of securities available-for-sale	82,779	125,533
Proceeds from sales of securities available-for-sale	12,838	19,745
Purchases of securities available-for-sale	(11,115)	(289,666)
Proceeds from maturities, prepayments, and calls of securities held-to-maturity	3,151	5,803
Purchases of securities held-to-maturity	(1,030)	(1,881)
Net (purchases) redemption of FHLB stock	(427)	12,071
Net increase in loans	(251,586)	(85,210)
BOLI income, net of claims	(72)	(76)
Proceeds from sales of OREO	9,160	10,907
Proceeds from sales of premises, furniture, and equipment	158	1,425
Purchases of premises, furniture, and equipment	(4,074)	(3,286)
Net cash used in investing activities	(160,218)	(204,635)
Financing Activities
Net increase in deposit accounts	129,149	194,492
Net (decrease) increase in borrowed funds	(5,591)	10,619
Payment for the termination of FHLB advances	(116,609)	0
Cash dividends paid	(10,530)	(1,499)
Restricted stock activity	(2,699)	(1,588)
Excess tax benefit related to share-based compensation	825	36
Net cash (used in) provided by financing activities	(5,455)	202,060
Net (decrease) increase in cash and cash equivalents	(109,268)	67,839
Cash and cash equivalents at end of period	477,973	784,105
Cash and cash equivalents at beginning of period	587,241	716,266
Supplemental Disclosures of Cash Flow Information:
Income taxes paid (refunded)	4,734	(3,498)
Interest paid to depositors and creditors	11,927	14,281
Dividends declared, but unpaid	6,027	3,005
Non-cash transfers of loans to OREO	9,339	11,502
Non-cash transfer of loans held-for-investment to loans held-for-sale	64,881	1,275
Non-cash transfer of an investment from other assets to securities available-for-sale	$ 0	$ 2,787

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Recent Events Recent Events (Details) - Equity Matters (USD $)	0 Months Ended
	May 21, 2014	Jun. 30, 2014	May 21, 2014	Dec. 31, 2013
Recent Events [Abstract]
Common Stock Authorized During Period, Shares, Period Increase Decrease	50,000,000
Common And Preferred Stock Authorized			151,000,000
Shares authorized, preferred stock (in shares)		1,000,000	1,000,000	1,000,000
Shares authorized (in Shares)		150,000,000	150,000,000	100,000,000
Par Value (in Dollars per share)		$ 0.01	$ 0.01	$ 0.01

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Loans Loans Sold (Details) (One-to-Four Family Mortgage Loan, USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
One-to-Four Family Mortgage Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sales	$ 33,038	$ 29,084	$ 84,938	$ 85,007
Loans originated with intent to sell	20,477	322	35,935	322
Loans held-for-investment	11,713	27,722	47,082	81,679
Total book value of loans sold	32,190	28,044	83,017	82,001
Net gains on sales of 1-4 family mortgages	$ 848	$ 1,040	$ 1,921	$ 3,006

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Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs That Were Restructured (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2013 loan	Jun. 30, 2013 loan
Financing Receivable, Modifications [Line Items]
Number of Loans	16	22
Pre- Modification Recorded Investment	$ 15,704	$ 17,275
Funds Disbursed	0	30
Interest and Escrow Capitalized	57	63
Charge-offs	0	0
Post- Modification Recorded Investment	15,761	17,368
Commercial And Industrial
Financing Receivable, Modifications [Line Items]
Number of Loans	2	4
Pre- Modification Recorded Investment	13,354	14,070
Funds Disbursed	0	0
Interest and Escrow Capitalized	0	2
Charge-offs	0	0
Post- Modification Recorded Investment	13,354	14,072
Office Retail And Industrial
Financing Receivable, Modifications [Line Items]
Number of Loans	3	4
Pre- Modification Recorded Investment	386	601
Funds Disbursed	0	30
Interest and Escrow Capitalized	0	0
Charge-offs	0	0
Post- Modification Recorded Investment	386	631
Other Commercial Real Estate
Financing Receivable, Modifications [Line Items]
Number of Loans	5	5
Pre- Modification Recorded Investment	564	564
Funds Disbursed	0	0
Interest and Escrow Capitalized	0	0
Charge-offs	0	0
Post- Modification Recorded Investment	564	564
Home Equity Line of Credit
Financing Receivable, Modifications [Line Items]
Number of Loans	1	1
Pre- Modification Recorded Investment	125	125
Funds Disbursed	0	0
Interest and Escrow Capitalized	0	0
Charge-offs	0	0
Post- Modification Recorded Investment	125	125
1-4 family mortgages
Financing Receivable, Modifications [Line Items]
Number of Loans		1
Pre- Modification Recorded Investment		132
Funds Disbursed		0
Interest and Escrow Capitalized		4
Charge-offs		0
Post- Modification Recorded Investment		136
Multi-Family
Financing Receivable, Modifications [Line Items]
Number of Loans	5	5
Pre- Modification Recorded Investment	1,275	1,275
Funds Disbursed	0	0
Interest and Escrow Capitalized	57	57
Charge-offs	0	0
Post- Modification Recorded Investment	1,332	1,332
Construction
Financing Receivable, Modifications [Line Items]
Number of Loans		2
Pre- Modification Recorded Investment		508
Funds Disbursed		0
Interest and Escrow Capitalized		0
Charge-offs		0
Post- Modification Recorded Investment		$ 508

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Consolidated Statements of Financial Condition (Current Period Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Assets [Abstract]
Cash and due from banks	$ 155,099		$ 110,417
Interest-bearing deposits in other banks	322,874		476,824
Trading securities, at fair value	18,231		17,317
Securities available-for-sale, at fair value	1,050,475		1,112,725
Securities held-to-maturity, at amortized cost	26,471		44,322
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank stock, at cost	35,588		35,161
Loans, excluding covered loans	5,843,457		5,580,005
Covered loans	104,867	[1]	134,355	[1]
Allowance for loan and covered loan losses	(78,326)		(85,505)
Net loans	5,869,998		5,628,855
Other real estate owned (“OREO”), excluding covered OREO	30,331		32,473
Covered OREO	9,825		8,863
Federal Deposit Insurance Corporation (“FDIC”) indemnification asset	10,276		16,585
Premises, furniture, and equipment	118,305		120,204
Investment in bank-owned life insurance (“BOLI”)	194,502		193,167
Goodwill and other intangible assets	274,962		276,366
Accrued interest receivable and other assets	188,310		180,128
Total assets	8,305,247		8,253,407
Liabilities
Noninterest-bearing deposits	2,025,666		1,911,602
Interest-bearing deposits	4,869,584		4,854,499
Total deposits	6,895,250		6,766,101
Borrowed funds	104,201		224,342
Senior and subordinated debt	190,996		190,932
Accrued interest payable and other liabilities	75,362		70,590
Total liabilities	7,265,809		7,251,965
Stockholders’ Equity
Common stock	858		858
Additional paid-in capital	407,895		414,293
Retained earnings	878,607		853,740
Accumulated other comprehensive loss, net of tax	(15,271)		(26,792)
Treasury stock, at cost	(232,651)		(240,657)
Total stockholders’ equity	1,039,438		1,001,442
Total liabilities and stockholders’ equity	$ 8,305,247		$ 8,253,407
Per Common Share Data
Par Value (in Dollars per share)	$ 0.01		$ 0.01
Shares authorized, preferred stock (in shares)	1,000,000		1,000,000
Shares authorized (in Shares)	150,000,000		100,000,000
Shares issued (in Shares)	85,787,000		85,787,000
Shares outstanding (in Shares)	75,273,000		75,071,000
Treasury shares (in Shares)	10,514,000		10,716,000

[1] For information on covered loans, refer to Note 5, “Acquired Loans.”

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Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Aging Analysis of Past Due Loans and Non-Performing Loans by Class (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 5,852,540	$ 5,598,612
30-89 Days Past Due	32,867	24,770
90 Days or More Past Due	62,917	90,978
Total Past Due	95,784	115,748
Total Loans	5,948,324	5,714,360
Non- accrual Loans	79,788	80,740
90 Days Past Due Loans, Still Accruing Interest	11,997	21,789
Commercial And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,059,868	1,814,660
30-89 Days Past Due	8,003	6,872
90 Days or More Past Due	5,147	9,106
Total Past Due	13,150	15,978
Total Loans	2,073,018	1,830,638
Non- accrual Loans	22,629	11,767
90 Days Past Due Loans, Still Accruing Interest	2,207	393
Agricultural
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	330,207	321,156
30-89 Days Past Due	86	134
90 Days or More Past Due	333	412
Total Past Due	419	546
Total Loans	330,626	321,702
Non- accrual Loans	363	519
90 Days Past Due Loans, Still Accruing Interest	0	0
Office Retail And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,293,378	1,335,027
30-89 Days Past Due	5,459	2,620
90 Days or More Past Due	13,564	16,038
Total Past Due	19,023	18,658
Total Loans	1,312,401	1,353,685
Non- accrual Loans	16,423	17,076
90 Days Past Due Loans, Still Accruing Interest	0	1,315
Multi-Family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	348,353	330,960
30-89 Days Past Due	625	318
90 Days or More Past Due	1,452	1,595
Total Past Due	2,077	1,913
Total Loans	350,430	332,873
Non- accrual Loans	1,572	1,848
90 Days Past Due Loans, Still Accruing Interest	231	0
Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	187,761	180,083
30-89 Days Past Due	2,271	23
90 Days or More Past Due	5,077	6,091
Total Past Due	7,348	6,114
Total Loans	195,109	186,197
Non- accrual Loans	5,077	6,297
90 Days Past Due Loans, Still Accruing Interest	0	0
Other Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	787,292	795,462
30-89 Days Past Due	4,007	5,365
90 Days or More Past Due	7,025	6,244
Total Past Due	11,032	11,609
Total Loans	798,324	807,071
Non- accrual Loans	7,930	8,153
90 Days Past Due Loans, Still Accruing Interest	676	258
Total Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,616,784	2,641,532
30-89 Days Past Due	12,362	8,326
90 Days or More Past Due	27,118	29,968
Total Past Due	39,480	38,294
Total Loans	2,656,264	2,679,826
Non- accrual Loans	31,002	33,374
90 Days Past Due Loans, Still Accruing Interest	907	1,573
Total Corporate Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	5,006,859	4,777,348
30-89 Days Past Due	20,451	15,332
90 Days or More Past Due	32,598	39,486
Total Past Due	53,049	54,818
Total Loans	5,059,908	4,832,166
Non- accrual Loans	53,994	45,660
90 Days Past Due Loans, Still Accruing Interest	3,114	1,966
Home Equity Line of Credit
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	476,287	415,791
30-89 Days Past Due	3,646	4,830
90 Days or More Past Due	5,152	6,399
Total Past Due	8,798	11,229
Total Loans	485,085	427,020
Non- accrual Loans	6,580	6,864
90 Days Past Due Loans, Still Accruing Interest	91	1,102
1-4 family mortgages
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	235,829	268,912
30-89 Days Past Due	2,102	2,046
90 Days or More Past Due	3,225	5,034
Total Past Due	5,327	7,080
Total Loans	241,156	275,992
Non- accrual Loans	4,091	5,198
90 Days Past Due Loans, Still Accruing Interest	297	548
Installment Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	54,840	42,350
30-89 Days Past Due	382	330
90 Days or More Past Due	2,086	2,147
Total Past Due	2,468	2,477
Total Loans	57,308	44,827
Non- accrual Loans	2,063	2,076
90 Days Past Due Loans, Still Accruing Interest	31	92
Total Consumer Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	766,956	727,053
30-89 Days Past Due	6,130	7,206
90 Days or More Past Due	10,463	13,580
Total Past Due	16,593	20,786
Total Loans	783,549	747,839
Non- accrual Loans	12,734	14,138
90 Days Past Due Loans, Still Accruing Interest	419	1,742
Total Loans Excluding Covered Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	5,773,815	5,504,401
30-89 Days Past Due	26,581	22,538
90 Days or More Past Due	43,061	53,066
Total Past Due	69,642	75,604
Total Loans	5,843,457	5,580,005
Non- accrual Loans	66,728	59,798
90 Days Past Due Loans, Still Accruing Interest	3,533	3,708
Covered Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	78,725	94,211
30-89 Days Past Due	6,286	2,232
90 Days or More Past Due	19,856	37,912
Total Past Due	26,142	40,144
Total Loans	104,867	134,355
Non- accrual Loans	13,060	20,942
90 Days Past Due Loans, Still Accruing Interest	$ 8,464	$ 18,081

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Consolidated Statements Of Changes In Stockholders’ Equity (Unaudited) (USD $) In Thousands, unless otherwise specified	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance Beginning at Dec. 31, 2012	$ 940,893	$ 858	$ 418,318	$ 786,453	$ (15,660)	$ (249,076)
Balance Beginning (in Shares) at Dec. 31, 2012		74,840
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	36,179			30,818	5,361
Common dividends declared ($0.15 and $0.05 per common share)	(3,755)			(3,755)
Share-based compensation expense	2,854		2,854
Restricted stock activity	(1,522)		(9,648)			8,126
Restricted stock activity (in Shares)		224
Treasury stock (purchased for) issued to benefit plans	4		(54)			58
Treasury stock (purchased for) issued to benefit plans (in Shares)		(1)
Balance Ending at Jun. 30, 2013	974,653	858	411,470	813,516	(10,299)	(240,892)
Balance Ending (in Shares) at Jun. 30, 2013		75,063
Balance Beginning at Dec. 31, 2013	1,001,442	858	414,293	853,740	(26,792)	(240,657)
Balance Beginning (in Shares) at Dec. 31, 2013	75,071	75,071
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	47,685			36,164	11,521
Common dividends declared ($0.15 and $0.05 per common share)	(11,297)			(11,297)
Share-based compensation expense	3,226		3,226
Restricted stock activity	(1,876)		(9,501)			7,625
Restricted stock activity (in Shares)		194
Treasury stock (purchased for) issued to benefit plans	258		(123)			381
Treasury stock (purchased for) issued to benefit plans (in Shares)		8
Balance Ending at Jun. 30, 2014	$ 1,039,438	$ 858	$ 407,895	$ 878,607	$ (15,271)	$ (232,651)
Balance Ending (in Shares) at Jun. 30, 2014	75,273	75,273

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Derivative Financial Instruments (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative notional amount, cash flow hedge, received fixed pay variable interest rate swap	$ 125,000,000		$ 125,000,000
Derivative notional amount, cash flow hedge, forward starting interest rate swap	125,000,000		125,000,000
Interest rate cash flow hedge gain (loss) to be reclassified during the next 12 months, net	1,800,000		1,800,000
Derivative Transaction Fees	$ 258,000	$ 0	$ 462,000	$ 522,000

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Securities (Details) - Remaining Contractual Maturity of Securities (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Available-for-sale Securities, Amortized Cost Basis [Abstract]
One year or less	$ 32,269
After one year to five years	122,919
After five years to ten years	187,371
After ten years	148,146
Securities that do not have a single contractual maturity	575,028
Total	1,065,733	1,147,114
Available-for-sale Securities, Fair Value [Abstract]
One year or less	31,437
After one year to five years	119,752
After five years to ten years	182,541
After ten years	144,327
Securities that do not have a single contractual maturity	572,418
Total securities available-for-sale	1,050,475	1,112,725
Held-to-maturity Securities, Amortized Cost [Abstract]
One year or less	2,545
After one year to five years	8,748
After five years to ten years	5,917
After ten years	9,261
Securities that do not have a single contractual maturity	0
Total	26,471	44,322
Held-to-maturity Securities, Fair Value [Abstract]
One year or less	2,603
After one year to five years	8,948
After five years to ten years	6,052
After ten years	9,473
Securities that do not have a single contractual maturity	0
Total	$ 27,076	$ 43,387

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Fair Value (Details) (USD $)	3 Months Ended
	Jun. 30, 2014 obligation	Jun. 30, 2013 obligation	Dec. 31, 2013
Fair Value (Details) [Line Items]
Number Of CDOs Sold	1	1
Carrying Value Of CDO Sold	$ 1,300,000	$ 0
Assumed Loss Given Default Rate For Banks Thrifts And Other Depository Institutions (percent)	90.00%
Assumed Loss Given Default Rate for Insurance Co (percent)	85.00%
Assumed Loss Given Default Rate For Issuers That Defaulted (percent)	100.00%
Total Amount of Loans Being Serviced For The Benefit Of Others At the End of The Period (in Millions)	$ 219,300,000		$ 214,500,000
Minimum
Fair Value (Details) [Line Items]
Appraisal Adjustment (percent)	0.00%
Maximum
Fair Value (Details) [Line Items]
Appraisal Adjustment (percent)	20.00%

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Securities (Tables)

6 Months Ended

Jun. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

A summary of the Company's securities portfolio by category and maturity is presented in the following tables.

Securities Portfolio

(Dollar amounts in thousands)

	June 30, 2014									December 31, 2013
	Amortized Cost		Gross Unrealized					Fair  Value		Amortized Cost		Gross Unrealized					Fair  Value
			Gains		Losses							Gains		Losses
Securities Available-for-Sale
U.S. agency securities	$	500	$	1	$	—		$	501	$	500	$	—	$	—		$	500
Collateralized mortgage   obligations (“CMOs”)	448,337		1,919		(8,791		)	441,465		490,962		1,427		(16,621		)	475,768
Other mortgage-backed   securities (“MBSs”)	123,787		4,429		(724		)	127,492		135,097		3,349		(2,282		)	136,164
Municipal securities	432,187		13,319		(1,621		)	443,885		457,318		9,673		(5,598		)	461,393
Trust preferred   collateralized debt   obligations (“CDOs”)	45,023		—		(26,587		)	18,436		46,532		—		(28,223		)	18,309
Corporate debt securities	12,995		2,240		—			15,235		12,999		1,930		—			14,929
Equity securities:
Hedge fund investment	298		518		—			816		1,208		1,971		—			3,179
Other equity securities	2,606		87		(48		)	2,645		2,498		75		(90		)	2,483
Total equity securities	2,904		605		(48		)	3,461		3,706		2,046		(90		)	5,662
Total available-   for-sale securities	$	1,065,733	$	22,513	$	(37,771	)	$	1,050,475	$	1,147,114	$	18,425	$	(52,814	)	$	1,112,725
Securities Held-to-Maturity
Municipal securities	$	26,471	$	605	$	—		$	27,076	$	44,322	$	—	$	(935	)	$	43,387
Trading Securities								$	18,231								$	17,317

Investments Classified by Contractual Maturity Date

Remaining Contractual Maturity of Securities

(Dollar amounts in thousands)

	June 30, 2014
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	32,269	$	31,437	$	2,545	$	2,603
After one year to five years	122,919		119,752		8,748		8,948
After five years to ten years	187,371		182,541		5,917		6,052
After ten years	148,146		144,327		9,261		9,473
Securities that do not have a single contractual maturity date	575,028		572,418		—		—
Total	$	1,065,733	$	1,050,475	$	26,471	$	27,076

Realized Gain (Loss) on Investments

The following table presents net realized gains on securities.

Securities Gains (Losses)

(Dollar amounts in thousands)

	Quarters Ended   June 30,				Six Months Ended   June 30,
	2014		2013		2014			2013
Gains on sales of securities:
Gross realized gains	$	4,517	$	216	$	5,618		$	216
Gross realized losses	—		—		—			—
Net realized gains on sales of securities	4,517		216		5,618			216
Non-cash impairment charges:
Other-than-temporary securities impairment ("OTTI")	—		—		(28		)	—
Portion of OTTI recognized in other comprehensive   income (loss)	—		—		—			—
Net non-cash impairment charges	—		—		(28		)	—
Net realized gains	$	4,517	$	216	$	5,590		$	216
Net trading gains (1)	$	531	$	214	$	722		$	1,250

⁽¹⁾  All net trading gains relate to trading securities still held as of June 30, 2014 and June 30, 2013 and are included in other income in the Condensed Consolidated Statement of Income.

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The following table presents a rollforward of life-to-date OTTI recognized in earnings related to all available-for-sale securities held by the Company for the quarters and six months ended June 30, 2014 and 2013. The majority of the beginning and ending balance of OTTI relates to CDOs currently held by the Company.

Changes in OTTI Recognized in Earnings

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Beginning balance	$	32,450		$	38,803		$	32,422		$	38,803
OTTI included in earnings (1):
Losses on securities that previously had OTTI	—			—			28			—
Losses on securities that did not previously have OTTI	—			—			—			—
Reduction for sales of securities (2)	(8,570		)	(6,750		)	(8,570		)	(6,750		)
Ending balance	$	23,880		$	32,053		$	23,880		$	32,053

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

⁽²⁾  During the second quarter of 2014, one CDO with a carrying value of $1.3 million was sold. In addition, one CDO with a carrying value of zero was sold during the second quarter of 2013. These CDOs had OTTI of $8.6 million and $6.8 million, respectively, that were previously recognized in earnings.

Unrealized Gain (Loss) on Investments

The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of June 30, 2014 and December 31, 2013.

Securities in an Unrealized Loss Position

(Dollar amounts in thousands)

		Less Than 12 Months				Greater Than 12 Months				Total
	Number of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
As of June 30, 2014
CMOs	54	$	17,978	$	158	$	294,643	$	8,633	$	312,621	$	8,791
Other MBSs	13	383		5		40,986		719		41,369		724
Municipal securities	107	—		—		67,326		1,621		67,326		1,621
CDOs	5	—		—		18,436		26,587		18,436		26,587
Equity securities	1	—		—		2,232		48		2,232		48
Total	180	$	18,361	$	163	$	423,623	$	37,608	$	441,984	$	37,771
As of December 31, 2013
CMOs	67	$	338,064	$	14,288	$	57,269	$	2,333	$	395,333	$	16,621
Other MBSs	19	57,311		2,281		356		1		57,667		2,282
Municipal securities	154	65,370		3,245		27,565		2,353		92,935		5,598
CDOs	6	—		—		18,309		28,223		18,309		28,223
Equity securities	1	2,168		90		—		—		2,168		90
Total	247	$	462,913	$	19,904	$	103,499	$	32,910	$	566,412	$	52,814

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Securities (Details) - Securities Gains (Losses) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Gains on sales of securities:
Gross realized gains	$ 4,517		$ 216		$ 5,618		$ 216
Gross realized losses	0		0		0		0
Net realized gains on sales of securities	4,517		216		5,618		216
Non-cash impairment charges:
Other-than-temporary securities impairment (OTTI)	0		0		(28)		0
Portion of OTTI recognized in other comprehensive income (loss)	0		0		0		0
Net non-cash impairment charges	0		0		(28)		0
Net realized gains	4,517		216		5,590		216
Net trading gains (losses)	$ 531	[1]	$ 214	[1]	$ 722	[1]	$ 1,250	[1]

[1] All net trading gains relate to trading securities still held as of June 30, 2014 and June 30, 2013 and are included in other income in the Condensed Consolidated Statement of Income.

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Acquired Loans (Tables)

6 Months Ended

Jun. 30, 2014

Acquired Loans [Abstract]

Acquired Loans

Acquired Loans

(Dollar amounts in thousands)

	June 30, 2014						December 31, 2013
	Covered		Non-Covered		Total		Covered		Non-Covered		Total
Purchased impaired loans	$	75,864	$	13,914	$	89,778	$	103,525	$	15,608	$	119,133
Other loans (1)	29,003		14,075		43,078		30,830		17,024		47,854
Total acquired loans	$	104,867	$	27,989	$	132,856	$	134,355	$	32,632	$	166,987

⁽¹⁾  These loans did not meet the criteria to be accounted for as purchased impaired loans.

FDIC Indemnification Asset Roll Forward

Changes in the FDIC Indemnification Asset

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Beginning balance	$	15,537		$	28,958		$	16,585		$	37,051
Amortization	(818		)	(908		)	(2,134		)	(2,232		)
Change in expected reimbursements from the FDIC for changes   in expected credit losses	(629		)	(1,512		)	532			(2,454		)
Payments received from the FDIC	(3,814		)	(3,380		)	(4,707		)	(9,207		)
Ending balance	$	10,276		$	23,158		$	10,276		$	23,158

Schedule Of Changes In Accretable Yield For Purchased Credit Impaired Loans

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

Changes in Accretable Yield

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Beginning balance	$	32,010		$	45,532		$	36,792		$	51,498
Accretion	(3,421		)	(4,456		)	(6,931		)	(8,342		)
Other (1)	6,563			6,028			5,291			3,948
Ending balance	$	35,152		$	47,104		$	35,152		$	47,104

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

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Fair Value (Details) - Carrying Value of Level 3 Securities Available-for-Sale (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Rollforward of the Carrying Value of CDOs [Roll Forward]
Beginning balance	$ 21,666		$ 12,924		$ 18,309		$ 12,129
Change in other comprehensive income (loss)	(1,721)	[1]	1,993	[1]	1,636		2,788	[1]
Purchases, sales, issuances, settlements, and paydowns	(1,509)		0		(1,509)		0
Ending balance	18,436	[2]	14,917	[2]	18,436	[2]	14,917	[2]
Change in unrealized losses recognized in earnings related to securities still held at end of period	$ 0		$ 0		$ 0		$ 0

[1] Included in unrealized holding gains (losses) in the Consolidated Statements of Comprehensive Income.

[2] During the second quarter of 2014, one CDO with a carrying value of $1.3 million was sold. In addition, one CDO with a carrying value of zero was sold during the second quarter of 2013

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Consolidated Statements Of Changes In Stockholders’ Equity (Unaudited) (Parentheticals) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in Dollars per share)	$ 0.08	$ 0.04	$ 0.15	$ 0.05

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Consolidated Statements of Income (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Interest Income
Loans, excluding covered loans	$ 60,634	$ 59,111	$ 119,636	$ 118,542
Covered loans	2,605	4,151	4,543	7,600
Investment securities	8,019	7,657	16,024	15,013
Other short-term investments	745	834	1,490	1,643
Total interest income	72,003	71,753	141,693	142,798
Interest Expense
Deposits	2,511	3,003	5,108	6,323
Borrowed funds	169	385	552	827
Senior and subordinated debt	3,016	3,435	6,031	6,870
Total interest expense	5,696	6,823	11,691	14,020
Net interest income	66,307	64,930	130,002	128,778
Provision for loan and covered loan losses	5,341	5,813	6,782	11,487
Net interest income after provision for loan and covered loan losses	60,966	59,117	123,220	117,291
Noninterest Income
Service charges on deposit accounts	8,973	9,118	16,993	17,795
Wealth management fees	6,552	6,126	13,009	11,965
Card-based fees	5,969	5,547	11,304	10,623
Mortgage banking income	959	1,010	2,074	2,978
Other service charges, commissions, and fees	4,555	4,207	8,677	8,405
Net securities gains	4,517	216	5,590	216
Loss on extinguishment of debt	(2,059)	0	(2,059)	0
Other income	1,727	1,217	2,855	3,034
Total noninterest income	31,193	27,441	58,443	55,016
Noninterest Expense
Salaries and employee benefits	34,561	32,921	68,052	69,490
Net occupancy and equipment expense	7,672	7,793	17,063	15,940
Professional services	6,517	5,595	11,906	10,813
Technology and related costs	3,104	2,884	6,178	5,367
Net OREO expense	1,569	1,084	3,125	2,883
Other expenses	11,594	12,150	22,361	22,748
Total noninterest expense	65,017	62,427	128,685	127,241
Income before income tax expense	27,142	24,131	52,978	45,066
Income tax expense	8,642	7,955	16,814	14,248
Net income	$ 18,500	$ 16,176	$ 36,164	$ 30,818
Per Common Share Data
Basic earnings (loss) per common share (in Dollars per share)	$ 0.25	$ 0.22	$ 0.48	$ 0.41
Diluted earnings (loss) per common share (in Dollars per share)	$ 0.25	$ 0.22	$ 0.48	$ 0.41
Dividends declared per common share (in Dollars per share)	$ 0.08	$ 0.04	$ 0.15	$ 0.05
Weighted-average common shares outstanding (in Shares)	74,322	74,017	74,235	73,942
Weighted-average diluted common shares outstanding (in Shares)	74,333	74,024	74,247	73,950

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

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. The significant accounting policies related to derivative instruments and hedging activities are presented in Note 1, "Summary of Significant Accounting Policies."

Fair Value Hedges

The Company hedges the fair value of fixed rate commercial real estate loans using interest rate swaps through which the Company pays fixed amounts and receives variable amounts. These derivative contracts are designated as fair value hedges.

Fair Value Hedges

(Dollar amounts in thousands)

	June 30, 2014			December 31, 2013
Gross notional amount outstanding	$	14,149		$	14,730
Derivative liability fair value	(1,291		)	(1,472		)
Weighted-average interest rate received	2.06		%	2.08		%
Weighted-average interest rate paid	6.38		%	6.39		%
Weighted-average maturity (in years)	3.27			3.76
Fair value of assets needed to settle derivative transactions (1)	$	1,319		$	1,502

⁽¹⁾  This amount represents the fair value if credit risk related contingent features were triggered.

Hedge ineffectiveness is recognized in other noninterest income in the Condensed Consolidated Statements of Income. For the quarters and six months ended June 30, 2014 and 2013, fair value hedge ineffectiveness was not material.

Cash Flow Hedges

During the second quarter of 2014, the Company hedged $125.0 million of certain corporate variable rate loans using interest rate swaps through which the Company receives fixed amounts and pays variable amounts. The Company also hedged $125.0 million of borrowed funds using two forward starting interest rate swaps through which the Company receives variable amounts and pays fixed amounts. The two forward starting interest rate swaps begin on June 1, 2015 and June 1, 2016 and mature on June 1, 2019. These derivative contracts are designated as cash flow hedges.

Cash Flow Hedges

(Dollar amounts in thousands)

	June 30, 2014			December 31, 2013
Gross notional amount outstanding	$	250,000		$	—
Derivative asset fair value	4			—
Derivative liability fair value	(202		)	—
Weighted-average interest rate received	1.55		%	—
Weighted-average interest rate paid	0.15		%	—
Weighted-average maturity (in years)	4.90			—

The effective portion of gains or losses on cash flow hedges is recorded in accumulated other comprehensive income on an after-tax basis and is subsequently reclassified to interest income or expense in the period that the forecasted hedge impacts earnings. Hedge ineffectiveness is determined using a regressionanalysis at the inception of the hedge relationship and on an ongoing basis. For the quarter ended June 30, 2014, there were no gains or losses related to cash flow hedge ineffectiveness. As of June 30, 2014, the Company estimates that $1.8 million will be reclassified from accumulated other comprehensive income as an increase to interest income over the next twelve months.

Other Derivative Instruments

The Company also enters into derivative transactions with its commercial customers and simultaneously enters into an offsetting interest rate derivative transaction with a third party. This transaction allows the Company’s customers to effectively convert a variable rate loan into a fixed rate loan. Due to the offsetting nature of these transactions, the Company does not apply hedge accounting treatment. Transaction fees related to commercial customer derivative instruments of $258,000 and $462,000 were recorded in noninterest income for the quarter and six months ended June 30, 2014, respectively. There were no transaction fees recorded for the second quarter of 2013 and $522,000 was recorded for the six months ended June 30, 2013.

Other Derivative Instruments

(Dollar amounts in thousands)

	June 30, 2014			December 31, 2013
Gross notional amount outstanding	$	350,669		$	256,638
Derivative asset fair value	5,019			2,235
Derivative liability fair value	(5,019		)	(2,235		)
Fair value of assets needed to settle derivative transactions (1)	5,089			1,305

⁽¹⁾  This amount represents the fair value if credit risk related contingent features were triggered.

The Company’s derivative portfolio also includes other derivative instruments that do not receive hedge accounting treatment, such as commitments to originate 1-4 family mortgage loans and foreign exchange contracts. In addition, the Company occasionally enters into risk participation agreements with counterparty banks to transfer or assume a portion of the credit risk related to customer transactions. The amounts of these instruments were not material for any periods presented. The Company had no other derivative instruments as of June 30, 2014 or December 31, 2013. The Company does not enter into derivative transactions for purely speculative purposes.

Credit Risk

Derivative instruments are inherently subject to credit risk, which represents the Company’s risk of loss when the counterparty to a derivative contract fails to perform according to the terms of the agreement. Credit risk is managed by limiting and collateralizing the aggregate amount of net unrealized losses by transaction, monitoring the size and the maturity structure of the derivatives, and applying uniform credit standards. Company policy establishes limits on credit exposure to any single counterparty. In addition, the Company established bilateral collateral agreements with derivative counterparties that provide for exchanges of marketable securities or cash to collateralize either party’s net losses above a stated minimum threshold.

Certain derivative instruments are subject to master netting agreements with counterparties. The Company records these transactions at their gross fair values and does not offset derivative assets and liabilities on the Consolidated Statements of Condition. The following table presents the Company's derivatives and offsetting positions as of June 30, 2014 and December 31, 2013.

Offsetting Derivatives

(Dollar amounts in thousands)

	Derivative Assets						Derivative Liabilities
	Fair Value						Fair Value
	June 30, 2014			December 31, 2013			June 30, 2014			December 31, 2013
Gross amounts recognized	$	5,023		$	2,235		$	6,512		$	3,707
Less: Amounts offset in the Consolidated Statements of   Financial Condition	—			—			—			—
Net amount presented in the Consolidated Statements of   Financial Condition (1)	5,023			2,235			6,512			3,707
Gross amounts not offset in the Consolidated Statements of Financial Condition
Offsetting derivative positions	(79		)	(704		)	(79		)	(704		)
Cash collateral pledged	—			—			(6,433		)	(3,003		)
Net credit exposure	$	4,944		$	1,531		$	—		$	—

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

As of June 30, 2014 and December 31, 2013, the Company’s derivative instruments generally contained provisions that require the Company’s debt to remain above a certain credit rating by each of the major credit rating agencies or that the Company maintain certain capital levels. If the Company’s debt were to fall below that credit rating or the Company's capital were to fall below the required levels, it would be in violation of those provisions, and the counterparties to the derivative instruments could terminate the swap transaction and demand cash settlement of the derivative instrument in an amount equal to the derivative liability fair value. As of June 30, 2014 and December 31, 2013, the Company was not in violation of these provisions.

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Document And Entity Information	6 Months Ended
	Jun. 30, 2014	Jul. 31, 2014
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		75,276,660
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	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2

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Commitments, Guarantees, and Contingent Liabilities

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments, Guarantees, and Contingent Liabilities

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, including commitments to extend credit and standby and commercial letters of credit. These instruments involve 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)

	June 30, 2014		December 31, 2013
Commitments to extend credit:
Commercial, industrial, and agricultural	$	1,140,571	$	1,077,201
Commercial real estate	125,437		133,867
Home equity	283,761		268,311
Other commitments (1)	179,969		181,702
Total commitments to extend credit	$	1,729,738	$	1,661,081
Standby letters of credit	$	110,715	$	110,453
Recourse on assets sold:
Unpaid principal balance of loans sold	$	179,981	$	170,330
Carrying value of recourse obligation (2)	163		162

⁽¹⁾  Other commitments includes installment and overdraft protection program commitments.

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

Commitments to extend credit are agreements to lend funds to a customer, subject to contractual terms and covenants. Commitments generally have fixed expiration dates or other termination clauses, variable interest rates, and fee requirements, when applicable. Since many of the commitments are expected to expire without being drawn, the total commitment amounts do not necessarily represent future cash flow requirements.

In the event of a customer's non-performance, the Company's credit loss exposure is equal to the contractual amount of the commitments. The credit risk is essentially the same as extending loans to customers. The Company uses the same credit policies for credit commitments as its loans and minimizes exposure to credit loss through various collateral requirements.

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 on the failure of the customer to perform according to the terms of the contract with the third party and are 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.

As a result of the sale of certain 1-4 family mortgage loans, the Company is contractually obligated to repurchase any non-performing loans or loans that do not meet underwriting requirements at recorded value. In accordance with the sales agreements, there is no limitation to the maximum potential future payments or expiration of the Company's recourse obligation. There were no material loan repurchases during the quarters ended June 30, 2014 and 2013.

Legal Proceedings

In the ordinary course of business, there were certain legal proceedings pending against the Company and its subsidiaries at June 30, 2014. 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.

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Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 18,500	$ 16,176	$ 36,164	$ 30,818
Unrealized holding gains (losses):
Before tax	12,031	1,164	24,721	(852)
Tax effect	(4,743)	(945)	(9,779)	(158)
Net of tax	7,288	219	14,942	(1,010)
Reclassification of net gains included in net income:
Before tax	4,517	216	5,590	216
Tax effect	(1,847)	(88)	(2,286)	(88)
Net of tax	2,670	128	3,304	128
Net unrealized holding gains (losses)	4,618	91	11,638	(1,138)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax [Abstract]
Before tax	(198)	0	(198)	0
Tax effect	81	0	81	0
Net of tax	(117)	0	(117)	0
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, [Abstract]
Before tax	0	10,997	0	10,997
Tax effect	0	(4,498)	0	(4,498)
Net of tax	0	6,499	0	6,499
Total other comprehensive income	4,501	6,590	11,521	5,361
Total comprehensive income	$ 23,001	$ 22,766	$ 47,685	$ 36,179

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Loans

6 Months Ended

Jun. 30, 2014

Loans and Leases Receivable Disclosure [Abstract]

Loans

LOANS

Loans Held-for-Investment

The following table presents the Company's loans held-for-investment by class.

Loan Portfolio

(Dollar amounts in thousands)

	June 30, 2014		December 31, 2013
Commercial and industrial	$	2,073,018	$	1,830,638
Agricultural	330,626		321,702
Commercial real estate:
Office, retail, and industrial	1,312,401		1,353,685
Multi-family	350,430		332,873
Construction	195,109		186,197
Other commercial real estate	798,324		807,071
Total commercial real estate	2,656,264		2,679,826
Total corporate loans	5,059,908		4,832,166
Home equity	485,085		427,020
1-4 family mortgages	241,156		275,992
Installment	57,308		44,827
Total consumer loans	783,549		747,839
Total loans, excluding covered loans	5,843,457		5,580,005
Covered loans (1)	104,867		134,355
Total loans	$	5,948,324	$	5,714,360
Deferred loan fees included in total loans	$	4,051	$	4,656
Overdrawn demand deposits included in total loans	3,980		5,047

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

The Company primarily lends to community-based and mid-sized businesses, commercial real estate customers, and consumers in its markets. 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. A discussion of risk characteristics relevant to each portfolio segment is presented in Note 4, “Loans,” in the Company’s 2013 10-K.

Loan Sales

The table below summarizes the Company's loan sales for the quarter and six months ended June 30, 2014 and 2013.

Loan Sales

(Dollar amounts in thousands)

	Quarters Ended   June 30,				Six Months Ended   June 30,
	2014		2013		2014		2013
1-4 family mortgage loans
Proceeds from sales	$	33,038	$	29,084	$	84,938	$	85,007
Less book value of loans sold:
Loans originated with intent to sell	20,477		322		35,935		322
Loans held-for-investment	11,713		27,722		47,082		81,679
Total book value of loans sold	32,190		28,044		83,017		82,001
Net gains on sales of 1-4 family mortgages	$	848	$	1,040	$	1,921	$	3,006

The Company retained servicing responsibilities for a portion of the 1-4 family mortgage loans sold and collects servicing fees equal to a percentage of the outstanding principal balance. The Company also retained limited recourse for credit losses on the sold loans. A description of the recourse obligation is presented in Note 10, “Commitments, Guarantees, and Contingent Liabilities.”

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Securities

6 Months Ended

Jun. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Securities

SECURITIES

Securities are classified as held-to-maturity, trading, or available-for-sale at the time of purchase. Securities classified as held-to-maturity are securities for which management has the positive intent and ability to hold to maturity and are stated at cost.

The Company’s trading securities consist of diversified investment securities reported at fair value that are held in a grantor trust under deferred compensation arrangements that allow plan participants to direct amounts into a variety of securities, including Company stock. Net trading gains represent changes in the fair value of the trading securities portfolio and are included in other noninterest income in the Condensed Consolidated Statements of Income.

All other securities are classified as available-for-sale and 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.

A summary of the Company's securities portfolio by category and maturity is presented in the following tables.

Securities Portfolio

(Dollar amounts in thousands)

	June 30, 2014									December 31, 2013
	Amortized Cost		Gross Unrealized					Fair  Value		Amortized Cost		Gross Unrealized					Fair  Value
			Gains		Losses							Gains		Losses
Securities Available-for-Sale
U.S. agency securities	$	500	$	1	$	—		$	501	$	500	$	—	$	—		$	500
Collateralized mortgage   obligations (“CMOs”)	448,337		1,919		(8,791		)	441,465		490,962		1,427		(16,621		)	475,768
Other mortgage-backed   securities (“MBSs”)	123,787		4,429		(724		)	127,492		135,097		3,349		(2,282		)	136,164
Municipal securities	432,187		13,319		(1,621		)	443,885		457,318		9,673		(5,598		)	461,393
Trust preferred   collateralized debt   obligations (“CDOs”)	45,023		—		(26,587		)	18,436		46,532		—		(28,223		)	18,309
Corporate debt securities	12,995		2,240		—			15,235		12,999		1,930		—			14,929
Equity securities:
Hedge fund investment	298		518		—			816		1,208		1,971		—			3,179
Other equity securities	2,606		87		(48		)	2,645		2,498		75		(90		)	2,483
Total equity securities	2,904		605		(48		)	3,461		3,706		2,046		(90		)	5,662
Total available-   for-sale securities	$	1,065,733	$	22,513	$	(37,771	)	$	1,050,475	$	1,147,114	$	18,425	$	(52,814	)	$	1,112,725
Securities Held-to-Maturity
Municipal securities	$	26,471	$	605	$	—		$	27,076	$	44,322	$	—	$	(935	)	$	43,387
Trading Securities								$	18,231								$	17,317

Remaining Contractual Maturity of Securities

(Dollar amounts in thousands)

	June 30, 2014
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	32,269	$	31,437	$	2,545	$	2,603
After one year to five years	122,919		119,752		8,748		8,948
After five years to ten years	187,371		182,541		5,917		6,052
After ten years	148,146		144,327		9,261		9,473
Securities that do not have a single contractual maturity date	575,028		572,418		—		—
Total	$	1,065,733	$	1,050,475	$	26,471	$	27,076

The carrying value of securities available-for-sale that were pledged to secure deposits or for other purposes as permitted or required by law totaled $864.6 million at June 30, 2014 and $755.3 million at December 31, 2013. No securities held-to-maturity were pledged as of June 30, 2014 or December 31, 2013.

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 based on the specific identification method. The following table presents net realized gains on securities.

Securities Gains (Losses)

(Dollar amounts in thousands)

	Quarters Ended   June 30,				Six Months Ended   June 30,
	2014		2013		2014			2013
Gains on sales of securities:
Gross realized gains	$	4,517	$	216	$	5,618		$	216
Gross realized losses	—		—		—			—
Net realized gains on sales of securities	4,517		216		5,618			216
Non-cash impairment charges:
Other-than-temporary securities impairment ("OTTI")	—		—		(28		)	—
Portion of OTTI recognized in other comprehensive   income (loss)	—		—		—			—
Net non-cash impairment charges	—		—		(28		)	—
Net realized gains	$	4,517	$	216	$	5,590		$	216
Net trading gains (1)	$	531	$	214	$	722		$	1,250

⁽¹⁾  All net trading gains relate to trading securities still held as of June 30, 2014 and June 30, 2013 and are included in other income in the Condensed Consolidated Statement of Income.

Net realized gains on sales of securities for the second quarter and first six months of 2014 were $4.5 million and $5.6 million, respectively. During the second quarter of 2014, we sold a CDO at a gain of $3.5 million and several municipal securities at gains of $468,000. In addition, during the first and second quarters of 2014, we sold a portion of the Company's hedge fund investment at gains of $1.1 million and $518,000, respectively.

The non-cash impairment charges in the table above relate to OTTI charges on certain CMOs. Accounting guidance requires that the credit portion of an OTTI charge be recognized through income. If a decline in fair value below carrying value is not attributable to credit deterioration 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 non-credit related portion of the decline in fair value in other comprehensive income (loss).

The following table presents a rollforward of life-to-date OTTI recognized in earnings related to all available-for-sale securities held by the Company for the quarters and six months ended June 30, 2014 and 2013. The majority of the beginning and ending balance of OTTI relates to CDOs currently held by the Company.

Changes in OTTI Recognized in Earnings

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Beginning balance	$	32,450		$	38,803		$	32,422		$	38,803
OTTI included in earnings (1):
Losses on securities that previously had OTTI	—			—			28			—
Losses on securities that did not previously have OTTI	—			—			—			—
Reduction for sales of securities (2)	(8,570		)	(6,750		)	(8,570		)	(6,750		)
Ending balance	$	23,880		$	32,053		$	23,880		$	32,053

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

⁽²⁾  During the second quarter of 2014, one CDO with a carrying value of $1.3 million was sold. In addition, one CDO with a carrying value of zero was sold during the second quarter of 2013. These CDOs had OTTI of $8.6 million and $6.8 million, respectively, that were previously recognized in earnings.

The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of June 30, 2014 and December 31, 2013.

Securities in an Unrealized Loss Position

(Dollar amounts in thousands)

		Less Than 12 Months				Greater Than 12 Months				Total
	Number of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
As of June 30, 2014
CMOs	54	$	17,978	$	158	$	294,643	$	8,633	$	312,621	$	8,791
Other MBSs	13	383		5		40,986		719		41,369		724
Municipal securities	107	—		—		67,326		1,621		67,326		1,621
CDOs	5	—		—		18,436		26,587		18,436		26,587
Equity securities	1	—		—		2,232		48		2,232		48
Total	180	$	18,361	$	163	$	423,623	$	37,608	$	441,984	$	37,771
As of December 31, 2013
CMOs	67	$	338,064	$	14,288	$	57,269	$	2,333	$	395,333	$	16,621
Other MBSs	19	57,311		2,281		356		1		57,667		2,282
Municipal securities	154	65,370		3,245		27,565		2,353		92,935		5,598
CDOs	6	—		—		18,309		28,223		18,309		28,223
Equity securities	1	2,168		90		—		—		2,168		90
Total	247	$	462,913	$	19,904	$	103,499	$	32,910	$	566,412	$	52,814

Substantially all 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 are supported by third party insurance or some other form of credit enhancement. Management does not believe any individual unrealized loss as of June 30, 2014 represents an OTTI related to credit deterioration. 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 June 30, 2014 reflect the illiquidity of these structured investment vehicles. Management does not believe these unrealized losses represent OTTI related to credit deterioration. In addition, the Company does not intend to sell the CDOs with unrealized losses within a short period of time, 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. 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 11, “Fair Value."

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Loans (Tables)

6 Months Ended

Jun. 30, 2014

Loans and Leases Receivable Disclosure [Abstract]

Composition Of Loan Portfolio

The following table presents the Company's loans held-for-investment by class.

Loan Portfolio

(Dollar amounts in thousands)

	June 30, 2014		December 31, 2013
Commercial and industrial	$	2,073,018	$	1,830,638
Agricultural	330,626		321,702
Commercial real estate:
Office, retail, and industrial	1,312,401		1,353,685
Multi-family	350,430		332,873
Construction	195,109		186,197
Other commercial real estate	798,324		807,071
Total commercial real estate	2,656,264		2,679,826
Total corporate loans	5,059,908		4,832,166
Home equity	485,085		427,020
1-4 family mortgages	241,156		275,992
Installment	57,308		44,827
Total consumer loans	783,549		747,839
Total loans, excluding covered loans	5,843,457		5,580,005
Covered loans (1)	104,867		134,355
Total loans	$	5,948,324	$	5,714,360
Deferred loan fees included in total loans	$	4,051	$	4,656
Overdrawn demand deposits included in total loans	3,980		5,047

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

Schedule Of Loans Sold

The table below summarizes the Company's loan sales for the quarter and six months ended June 30, 2014 and 2013.

Loan Sales

(Dollar amounts in thousands)

	Quarters Ended   June 30,				Six Months Ended   June 30,
	2014		2013		2014		2013
1-4 family mortgage loans
Proceeds from sales	$	33,038	$	29,084	$	84,938	$	85,007
Less book value of loans sold:
Loans originated with intent to sell	20,477		322		35,935		322
Loans held-for-investment	11,713		27,722		47,082		81,679
Total book value of loans sold	32,190		28,044		83,017		82,001
Net gains on sales of 1-4 family mortgages	$	848	$	1,040	$	1,921	$	3,006

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Fair Value

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value

FAIR VALUE

Fair value represents the amount expected to 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, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Statements of Financial Condition. Those assets and liabilities are presented below in the sections titled "Assets and Liabilities Required to be Measured at Fair Value on a Recurring Basis" and "Assets and Liabilities Required to be Measured at Fair Value on a Non-Recurring Basis."

Other assets and liabilities are not required to be measured at fair value in the Consolidated Statements of Financial Condition, but must be disclosed at fair value. Refer to the "Fair Value Measurements of Other Financial Instruments" section of this footnote. Any aggregation of the estimated fair values presented in this footnote does not represent the 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 provides 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. Assets and liabilities may change levels within the fair value hierarchy due to market conditions or other circumstances. Those 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 fair value for assets and liabilities required to be measured at fair value on a recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy.

Recurring Fair Value Measurements

(Dollar amounts in thousands)

	June 30, 2014						December 31, 2013
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Trading securities:
Money market funds	$	1,369	$	—	$	—	$	1,847	$	—	$	—
Mutual funds	16,862		—		—		15,470		—		—
Total trading securities	18,231		—		—		17,317		—		—
Securities available-for-sale:
U.S. Agency securities	—		501		—		—		500		—
CMOs	—		441,465		—		—		475,768		—
Other MBSs	—		127,492		—		—		136,164		—
Municipal securities	—		443,885		—		—		461,393		—
CDOs	—		—		18,436		—		—		18,309
Corporate debt securities	—		15,235		—		—		14,929		—
Hedge fund investment	—		816		—		—		3,179		—
Other equity securities	44		2,601		—		44		2,439		—
Total securities   available-for-sale	44		1,031,995		18,436		44		1,094,372		18,309
Mortgage servicing rights (1)	—		—		1,885		—		—		1,893
Derivative assets (1)	—		5,023		—		—		2,235		—
Liabilities:
Derivative liabilities (2)	$	—	$	6,512	$	—	$	—	$	3,707	$	—

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

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

The following sections describe the specific valuation techniques and inputs used to measure financial assets and liabilities at fair value.

Trading Securities

The Company's trading securities consist of diversified investment securities held in a grantor 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 is classified in level 1 of the fair value hierarchy.

Securities Available-for-Sale

The Company’s available-for-sale 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.

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.

CDOs are classified in level 3 of the fair value hierarchy. The Company estimates the fair values for each CDO using discounted cash flow analyses with the assistance of a structured credit valuation firm. This methodology relies 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 inputs, including prepayment assumptions, default probabilities, loss given default assumptions, and deferral cure probabilities. The cash flows for each Issuer are then discounted to present values using LIBOR plus an adjustment to reflect the higher risk inherent in these securities given their complex structures and the impact of market factors. Finally, the discounted cash flows for each Issuer are aggregated to derive the estimated fair value for the specific CDO. Information for each CDO, as well as the significant unobservable assumptions, is presented in the following table.

Characteristics of CDOs and Significant Unobservable Inputs

Used in the Valuation of CDOs as of June 30, 2014

(Dollar amounts in thousands)

	CDO Number
	1			2			3			4			5
Characteristics:
Class	C-1			C-1			C-1			B1			C
Original par	$	17,500		$	15,000		$	15,000		$	15,000		$	6,500
Amortized cost	7,140			5,598			12,377			13,729			6,179
Fair value	4,849			662			4,641			5,838			2,446
Lowest credit rating (Moody’s)	Ca			Ca			Ca			Ca			Ca
Number of underlying Issuers	43			54			57			58			75
Percent of Issuers currently   performing	83.7		%	79.6		%	75.4		%	55.2		%	73.3		%
Current deferral and default percent (1)	8.7		%	11.4		%	11.8		%	29.8		%	22.5		%
Expected future deferral and   default percent (2)	12.3		%	12.0		%	15.2		%	22.3		%	9.8		%
Excess subordination percent (3)	—		%	—		%	—		%	1.5		%	11.4		%
Discount rate risk adjustment (4)	12.5		%	14.3		%	13.3		%	11.8		%	12.3		%
Significant unobservable inputs, weighted average of Issuers:
Probability of prepayment	15.2		%	7.6		%	4.4		%	6.1		%	3.5		%
Probability of default	18.5		%	23.1		%	21.2		%	28.3		%	28.8		%
Loss given default	88.2		%	83.4		%	89.4		%	92.9		%	96.2		%
Probability of deferral cure	23.2		%	17.7		%	31.3		%	41.1		%	27.6		%

⁽¹⁾  Represents actual deferrals and defaults, net of recoveries, as a percent of the original collateral.

⁽²⁾  Represents expected future deferrals and defaults, net of recoveries, as a percent of the remaining performing collateral. 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.

⁽³⁾  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.

⁽⁴⁾  Cash flows are discounted at LIBOR plus this adjustment to reflect the higher risk inherent in these securities.

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 estimate 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.

The likelihood that 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.

Management 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. Management also reviews market activity for the same or similar tranches of the CDOs, when available. Annually, management validates significant assumptions by reviewing detailed back-testing performed by the structured credit valuation firm.

A rollforward of the carrying value of CDOs for the quarters and six months ended June 30, 2014 and 2013 is presented in the following table.

Rollforward of the Carrying Value of CDOs

(Dollar amounts in thousands)

	Quarters Ended   June 30,					Six Months Ended   June 30,
	2014			2013		2014			2013
Beginning balance	$	21,666		$	12,924	$	18,309		$	12,129
Change in other comprehensive income (loss) (1)	(1,721		)	1,993		1,636			2,788
Purchases, sales, issuances, settlements, and paydowns (2)	(1,509		)	—		(1,509		)	—
Ending balance	$	18,436		$	14,917	$	18,436		$	14,917
Change in unrealized losses recognized in earnings related to   securities still held at end of period	$	—		$	—	$	—		$	—

⁽¹⁾  Included in unrealized holding gains (losses) in the Consolidated Statements of Comprehensive Income.

⁽²⁾  During the second quarter of 2014, one CDO with a carrying value of $1.3 million was sold. In addition, one CDO with a carrying value of zero was sold during the second quarter of 2013.

Mortgage Servicing Rights

The Company services loans for others totaling $219.3 million as of June 30, 2014 and $214.5 million as of December 31, 2013. 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 Note 21, “Fair Value,” in the Company’s 2013 10-K.

Derivative Assets and Derivative Liabilities

The Company enters into interest rate swaps and derivative transactions with commercial customers. These derivative transactions are executed in the dealer market, and pricing is based on market quotes obtained from the counterparties. 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 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 by level in the fair value hierarchy.

Non-Recurring Fair Value Measurements

(Dollar amounts in thousands)

	June 30, 2014						December 31, 2013
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Collateral-dependent impaired loans (1)	$	—	$	—	$	23,111	$	—	$	—	$	13,103
OREO (2)	—		—		16,266		—		—		13,347
Loans held-for-sale (3)	—		—		21,125		—		—		4,739
Assets held-for-sale (4)	—		—		4,318		—		—		4,027

⁽¹⁾  Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented.

⁽²⁾  Includes OREO and covered OREO with fair value adjustments subsequent to initial transfer that occurred during the periods presented.

⁽³⁾  Included in other assets in the Consolidated Statements of Financial Condition.

⁽⁴⁾  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 loan 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. Based on the age and/or type, appraisals may be adjusted in the range of 0% to 20%. 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.

OREO

The fair value of OREO is measured using the current appraised value of the properties. In certain circumstances, a current appraisal may not be available or 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) most recent 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.

Loans Held-for-Sale

As of June 30, 2014, loans held-for-sale consisted of 1-4 family mortgage loans, which were originated with the intent to sell, and one commercial real estate credit relationship, which was transferred to the held-for-sale category at the contract price. Accordingly, these loans are classified in level 3 of the fair value hierarchy. As of December 31, 2013, loans held-for-sale consists of 1-4 family mortgage loans and one commercial real estate loan.

Assets Held-for-Sale

Assets held-for-sale consist of former branches that are no longer in operation, which were transferred into the held-for-sale category at the lower of their fair value as determined by a current appraisal or their recorded investment. Based on these valuation methods, they are classified in level 3 of the fair value hierarchy.

Financial Instruments Not Required to be Measured at Fair Value

For certain financial instruments that are not required to be measured at fair value in the Consolidated Statements of Financial Condition, the Company must disclose the estimated fair values and the level within the fair value hierarchy as shown in the following table.

Fair Value Measurements of Other Financial Instruments

(Dollar amounts in thousands)

		June 30, 2014				December 31, 2013
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and due from banks	1	$	155,099	$	155,099	$	110,417	$	110,417
Interest-bearing deposits in other banks	2	322,874		322,874		476,824		476,824
Securities held-to-maturity	2	26,471		27,076		44,322		43,387
FHLB and Federal Reserve Bank stock	2	35,588		35,588		35,161		35,161
Net loans	3	5,869,998		5,775,061		5,628,855		5,544,146
FDIC indemnification asset	3	10,276		2,464		16,585		7,829
Investment in BOLI	3	194,502		194,502		193,167		193,167
Accrued interest receivable	3	23,633		23,633		25,735		25,735
Other interest earning assets	3	5,117		5,297		6,550		6,809
Liabilities:
Deposits	2	$	6,895,250	$	6,892,876	$	6,766,101	$	6,765,404
Borrowed funds	2	104,201		104,201		224,342		226,839
Senior and subordinated debt	1	190,996		193,628		190,932		201,147
Accrued interest payable	2	2,164		2,164		2,400		2,400

Management uses various methodologies and assumptions to determine the estimated fair values of the financial instruments in the table above. 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 specific 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, other short-term investments, accrued interest receivable, and accrued interest payable.

Securities Held-to-Maturity - The fair value of securities held-to-maturity is estimated using the present value of future cash flows of the remaining maturities of the securities.

FHLB and Federal Reserve Bank Stock - The carrying amounts approximate fair value.

Net Loans - 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. The primary impact of credit risk on the fair value of the loan portfolio was accommodated through the use of the allowance for loan and covered loan losses, which is believed to represent the current fair value of estimated inherent losses in the loan portfolio.

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 in the FDIC Agreements.

Investment in BOLI - The fair value of the investment in 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 from 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.

Other Interest-Earning Assets - The fair value of other interest-earning assets is estimated using the present value of the future cash flows of the remaining maturities of the assets.

Deposits - The fair values disclosed for deposits, savings deposits, NOW accounts, and money market deposits are 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 FHLB advances is estimated by discounting the agreements based on maturities using the rates currently offered for FHLB advances of similar remaining maturities adjusted for prepayment penalties that would be incurred if the borrowings were paid off on the measurement date. The carrying amounts of securities sold under agreements to repurchase approximate their fair value due to their short-term nature.

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

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

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Earnings Per Common Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Common Share

EARNINGS PER COMMON SHARE

The table below displays the calculation of basic and diluted earnings per share.

Basic and Diluted Earnings per Common Share

(Amounts in thousands, except per share data)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Net income	$	18,500		$	16,176		$	36,164		$	30,818
Net income applicable to non-vested restricted shares	(230		)	(219		)	(455		)	(431		)
Net income applicable to common shares	$	18,270		$	15,957		$	35,709		$	30,387
Weighted-average common shares outstanding:
Weighted-average common shares outstanding (basic)	74,322			74,017			74,235			73,942
Dilutive effect of common stock equivalents	11			7			12			8
Weighted-average diluted common shares outstanding	74,333			74,024			74,247			73,950
Basic earnings per common share	$	0.25		$	0.22		$	0.48		$	0.41
Diluted earnings per common share	$	0.25		$	0.22		$	0.48		$	0.41
Anti-dilutive shares not included in the computation of diluted earnings per common share (1)	1,177			1,447			1,246			1,520

⁽¹⁾  This amount represents outstanding stock options for which the exercise price is greater than the average market price of the Company's common stock.

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Derivative Financial Instruments (Details) - Interest Rate Derivatives Portfolio (Fair Value Hedging, USD $) In Thousands, unless otherwise specified	6 Months Ended		12 Months Ended
	Jun. 30, 2014		Dec. 31, 2013
Fair Value Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount outstanding	$ 14,149		$ 14,730
Derivative liability fair value	(1,291)		(1,472)
Weighted-average interest rate received (percent)	2.06%		2.08%
Weighted-average interest rate paid (percent)	6.38%		6.39%
Weighted-average maturity (in years)	3 years 3 months 7 days		3 years 9 months 5 days
Fair value of assets needed to settle derivative transactions	$ 1,319	[1]	$ 1,502	[1]

[1] This amount represents the fair value if credit risk related contingent features were triggered.

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Acquired Loans

6 Months Ended

Jun. 30, 2014

Acquired Loans [Abstract]

Acquired Loans

ACQUIRED LOANS

Since 2009, the Company acquired the majority of the assets and assumed the deposits of four financial institutions in FDIC-assisted transactions. In three of those transactions, most loans and OREO acquired are covered by the FDIC Agreements. The significant accounting policies related to purchased impaired loans and the related FDIC indemnification asset are presented in Note 1, “Summary of Significant Accounting Policies.”

Acquired Loans

(Dollar amounts in thousands)

	June 30, 2014						December 31, 2013
	Covered		Non-Covered		Total		Covered		Non-Covered		Total
Purchased impaired loans	$	75,864	$	13,914	$	89,778	$	103,525	$	15,608	$	119,133
Other loans (1)	29,003		14,075		43,078		30,830		17,024		47,854
Total acquired loans	$	104,867	$	27,989	$	132,856	$	134,355	$	32,632	$	166,987

⁽¹⁾  These loans did not meet the criteria to be accounted for as purchased impaired loans.

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 Company was in compliance with those requirements as of June 30, 2014 and December 31, 2013.

Changes in the FDIC Indemnification Asset

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Beginning balance	$	15,537		$	28,958		$	16,585		$	37,051
Amortization	(818		)	(908		)	(2,134		)	(2,232		)
Change in expected reimbursements from the FDIC for changes   in expected credit losses	(629		)	(1,512		)	532			(2,454		)
Payments received from the FDIC	(3,814		)	(3,380		)	(4,707		)	(9,207		)
Ending balance	$	10,276		$	23,158		$	10,276		$	23,158

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

Changes in Accretable Yield

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Beginning balance	$	32,010		$	45,532		$	36,792		$	51,498
Accretion	(3,421		)	(4,456		)	(6,931		)	(8,342		)
Other (1)	6,563			6,028			5,291			3,948
Ending balance	$	35,152		$	47,104		$	35,152		$	47,104

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

XML

Past Due Loans, Allowance For Credit Losses, and Impaired Loans

6 Months Ended

Jun. 30, 2014

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Past Due Loans, Allowance for Credit Losses, And Impaired Loans

PAST DUE LOANS, ALLOWANCE FOR CREDIT LOSSES, IMPAIRED LOANS, AND TDRS

Past Due and Non-accrual Loans

The following table presents an aging analysis of the Company’s past due loans as of June 30, 2014 and December 31, 2013. 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
June 30, 2014
Commercial and industrial	$	2,059,868	$	8,003	$	5,147	$	13,150	$	2,073,018	$	22,629	$	2,207
Agricultural	330,207		86		333		419		330,626		363		—
Commercial real estate:
Office, retail, and industrial	1,293,378		5,459		13,564		19,023		1,312,401		16,423		—
Multi-family	348,353		625		1,452		2,077		350,430		1,572		231
Construction	187,761		2,271		5,077		7,348		195,109		5,077		—
Other commercial real estate	787,292		4,007		7,025		11,032		798,324		7,930		676
Total commercial real   estate	2,616,784		12,362		27,118		39,480		2,656,264		31,002		907
Total corporate loans	5,006,859		20,451		32,598		53,049		5,059,908		53,994		3,114
Home equity	476,287		3,646		5,152		8,798		485,085		6,580		91
1-4 family mortgages	235,829		2,102		3,225		5,327		241,156		4,091		297
Installment	54,840		382		2,086		2,468		57,308		2,063		31
Total consumer loans	766,956		6,130		10,463		16,593		783,549		12,734		419
Total loans, excluding   covered loans	5,773,815		26,581		43,061		69,642		5,843,457		66,728		3,533
Covered loans	78,725		6,286		19,856		26,142		104,867		13,060		8,464
Total loans	$	5,852,540	$	32,867	$	62,917	$	95,784	$	5,948,324	$	79,788	$	11,997
December 31, 2013
Commercial and industrial	$	1,814,660	$	6,872	$	9,106	$	15,978	$	1,830,638	$	11,767	$	393
Agricultural	321,156		134		412		546		321,702		519		—
Commercial real estate:
Office, retail, and industrial	1,335,027		2,620		16,038		18,658		1,353,685		17,076		1,315
Multi-family	330,960		318		1,595		1,913		332,873		1,848		—
Construction	180,083		23		6,091		6,114		186,197		6,297		—
Other commercial real estate	795,462		5,365		6,244		11,609		807,071		8,153		258
Total commercial real   estate	2,641,532		8,326		29,968		38,294		2,679,826		33,374		1,573
Total corporate loans	4,777,348		15,332		39,486		54,818		4,832,166		45,660		1,966
Home equity	415,791		4,830		6,399		11,229		427,020		6,864		1,102
1-4 family mortgages	268,912		2,046		5,034		7,080		275,992		5,198		548
Installment	42,350		330		2,147		2,477		44,827		2,076		92
Total consumer loans	727,053		7,206		13,580		20,786		747,839		14,138		1,742
Total loans, excluding   covered loans	5,504,401		22,538		53,066		75,604		5,580,005		59,798		3,708
Covered loans	94,211		2,232		37,912		40,144		134,355		20,942		18,081
Total loans	$	5,598,612	$	24,770	$	90,978	$	115,748	$	5,714,360	$	80,740	$	21,789

Allowance for Credit Losses

The Company maintains an allowance for credit losses at a level deemed adequate by management to absorb probable losses inherent in the loan portfolio. Refer to Note 1, “Summary of Significant Accounting Policies,” for the accounting policy for the allowance for credit losses. A rollforward of the allowance for credit losses by portfolio segment for the quarters and six months ended June 30, 2014 and 2013 is presented in the table below.

Allowance for Credit Losses by Portfolio Segment

(Dollar amounts in thousands)

	Commercial, Industrial, and Agricultural			Office, Retail, and Industrial			Multi- Family			Construction			Other Commercial Real Estate			Consumer			Covered Loans			Reserve for Unfunded Commitments			Total Allowance
Quarter ended June 30, 2014
Beginning balance	$	27,292		$	13,106		$	1,968		$	5,656		$	9,236		$	11,945		$	11,429		$	1,616		$	82,248
Charge-offs	(2,099		)	(3,511		)	(267		)	(234		)	(561		)	(1,828		)	(279		)	—			(8,779		)
Recoveries	259			290			2			2			89			213			277			—			1,132
Net charge-offs	(1,840		)	(3,221		)	(265		)	(232		)	(472		)	(1,615		)	(2		)	—			(7,647		)
Provision for loan   and covered loan   losses and other	3,742			1,946			345			(539		)	(179		)	2,110			(2,084		)	—			5,341
Ending balance	$	29,194		$	11,831		$	2,048		$	4,885		$	8,585		$	12,440		$	9,343		$	1,616		$	79,942
Quarter ended June 30, 2013
Beginning balance	$	36,544		$	10,695		$	3,704		$	4,667		$	17,757		$	11,997		$	12,227		$	2,866		$	100,457
Charge-offs	(3,116		)	(1,453		)	(213		)	(850		)	(547		)	(2,523		)	(1,980		)	—			(10,682		)
Recoveries	573			35			30			5			329			413			3			—			1,388
Net charge-offs	(2,543		)	(1,418		)	(183		)	(845		)	(218		)	(2,110		)	(1,977		)	—			(9,294		)
Provision for loan   and covered loan   losses and other	(2,259		)	2,580			(97		)	348			(1,370		)	2,480			4,131			—			5,813
Ending balance	$	31,742		$	11,857		$	3,424		$	4,170		$	16,169		$	12,367		$	14,381		$	2,866		$	96,976
Six months ended June 30, 2014
Beginning balance	$	30,381		$	10,405		$	2,017		$	6,316		$	10,817		$	13,010		$	12,559		$	1,616		$	87,121
Charge-offs	(5,779		)	(4,594		)	(357		)	(895		)	(2,332		)	(3,856		)	(524		)	—			(18,337		)
Recoveries	2,419			348			3			160			233			351			862			—			4,376
Net charge-offs	(3,360		)	(4,246		)	(354		)	(735		)	(2,099		)	(3,505		)	338			—			(13,961		)
Provision for loan   and covered loan   losses and other	2,173			5,672			385			(696		)	(133		)	2,935			(3,554		)	—			6,782
Ending balance	$	29,194		$	11,831		$	2,048		$	4,885		$	8,585		$	12,440		$	9,343		$	1,616		$	79,942
Six months ended June 30, 2013
Beginning balance	$	36,761		$	11,432		$	3,575		$	5,242		$	17,512		$	12,862		$	12,062		$	3,366		$	102,812
Charge-offs	(6,291		)	(2,715		)	(378		)	(1,415		)	(3,082		)	(4,887		)	(2,686		)	—			(21,454		)
Recoveries	2,662			37			35			5			1,361			520			11			—			4,631
Net charge-offs	(3,629		)	(2,678		)	(343		)	(1,410		)	(1,721		)	(4,367		)	(2,675		)	—			(16,823		)
Provision for loan   and covered loan   losses and other	(1,390		)	3,103			192			338			378			3,872			4,994			(500		)	10,987
Ending balance	$	31,742		$	11,857		$	3,424		$	4,170		$	16,169		$	12,367		$	14,381		$	2,866		$	96,976

The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of June 30, 2014 and December 31, 2013.

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		Purchased Impaired		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Impaired		Total
June 30, 2014
Commercial, industrial, and   agricultural	$	21,726	$	2,380,505	$	1,413	$	2,403,644	$	2,539	$	26,655	$	—	$	29,194
Commercial real estate:
Office, retail, and industrial	15,605		1,296,796		—		1,312,401		1,576		10,255		—		11,831
Multi-family	1,169		349,129		132		350,430		176		1,857		15		2,048
Construction	4,725		190,384		—		195,109		373		4,512		—		4,885
Other commercial real estate	5,748		789,203		3,373		798,324		913		7,672		—		8,585
Total commercial   real estate	27,247		2,625,512		3,505		2,656,264		3,038		24,296		15		27,349
Total corporate loans	48,973		5,006,017		4,918		5,059,908		5,577		50,951		15		56,543
Consumer	—		774,553		8,996		783,549		—		11,887		553		12,440
Total loans, excluding   covered loans	48,973		5,780,570		13,914		5,843,457		5,577		62,838		568		68,983
Covered loans:
Purchased impaired loans	—		—		75,864		75,864		—		—		8,743		8,743
Other loans	—		29,003		—		29,003		—		600		—		600
Total covered loans	—		29,003		75,864		104,867		—		600		8,743		9,343
Reserve for unfunded   commitments	—		—		—		—		—		1,616		—		1,616
Total loans	$	48,973	$	5,809,573	$	89,778	$	5,948,324	$	5,577	$	65,054	$	9,311	$	79,942
December 31, 2013
Commercial, industrial, and   agricultural	$	13,178	$	2,137,440	$	1,722	$	2,152,340	$	4,046	$	26,335	$	—	$	30,381
Commercial real estate:
Office, retail, and industrial	26,348		1,327,337		—		1,353,685		214		10,191		—		10,405
Multi-family	1,296		331,445		132		332,873		18		1,999		—		2,017
Construction	5,712		180,485		—		186,197		178		6,138		—		6,316
Other commercial real estate	9,298		793,703		4,070		807,071		704		10,113		—		10,817
Total commercial   real estate	42,654		2,632,970		4,202		2,679,826		1,114		28,441		—		29,555
Total corporate loans	55,832		4,770,410		5,924		4,832,166		5,160		54,776		—		59,936
Consumer	—		738,155		9,684		747,839		—		13,010		—		13,010
Total loans, excluding   covered loans	55,832		5,508,565		15,608		5,580,005		5,160		67,786		—		72,946
Covered loans:
Purchased impaired loans	—		—		103,525		103,525		—		—		11,857		11,857
Other loans	—		30,830		—		30,830		—		702		—		702
Total covered loans	—		30,830		103,525		134,355		—		702		11,857		12,559
Reserve for unfunded   commitments	—		—		—		—		—		1,616		—		1,616
Total loans	$	55,832	$	5,539,395	$	119,133	$	5,714,360	$	5,160	$	70,104	$	11,857	$	87,121

Loans Individually Evaluated for Impairment

The following table presents loans individually evaluated for impairment by class of loan as of June 30, 2014 and December 31, 2013. Purchased impaired loans are excluded from this disclosure.

Impaired Loans Individually Evaluated by Class

(Dollar amounts in thousands)

	June 30, 2014								December 31, 2013
	Recorded Investment In								Recorded Investment In
	Loans with No Specific Reserve		Loans with a Specific Reserve		Unpaid Principal Balance		Specific Reserve		Loans with No Specific Reserve		Loans with a Specific Reserve		Unpaid Principal Balance		Specific Reserve
Commercial and industrial	$	3,381	$	18,345	$	38,524	$	2,539	$	10,047	$	3,131	$	25,887	$	4,046
Agricultural	—		—		—		—		—		—		—		—
Commercial real estate:
Office, retail, and industrial	12,943		2,662		24,416		1,576		23,872		2,476		35,868		214
Multi-family	668		501		1,270		176		1,098		198		1,621		18
Construction	3,552		1,173		6,121		373		4,586		1,126		10,037		178
Other commercial real estate	2,996		2,752		8,891		913		7,553		1,745		11,335		704
Total commercial real   estate	20,159		7,088		40,698		3,038		37,109		5,545		58,861		1,114
Total impaired loans    individually evaluated    for impairment	$	23,540	$	25,433	$	79,222	$	5,577	$	47,156	$	8,676	$	84,748	$	5,160

The average recorded investment and interest income recognized on impaired loans by class for the quarters and six months ended June 30, 2014 and 2013 is presented in the following table.

Average Recorded Investment and Interest Income Recognized on Impaired Loans by Class

(Dollar amounts in thousands)

	Quarters Ended June 30,
	2014				2013
	Average Recorded Investment		Interest Income Recognized (1)		Average Recorded Investment		Interest Income Recognized (1)
Commercial and industrial	$	14,581	$	29	$	25,757	$	1
Agricultural	—		—		—		—
Commercial real estate:
Office, retail, and industrial	20,098		6		23,662		6
Multi-family	1,424		2		1,009		—
Construction	4,788		—		6,397		—
Other commercial real estate	6,393		107		13,762		5
Total commercial real estate	32,703		115		44,830		11
Total impaired loans	$	47,284	$	144	$	70,587	$	12
	Six Months Ended June 30,
	2014				2013
	Average Recorded Investment		Interest Income Recognized (1)		Average Recorded Investment		Interest Income Recognized (1)
Commercial and industrial	$	14,113	$	147	$	24,429	$	3
Agricultural	—		—		—		—
Commercial real estate:
Office, retail, and industrial	22,181		147		22,316		10
Multi-family	1,381		2		845		—
Construction	5,096		—		5,850		—
Other commercial real estate	7,361		115		13,353		8
Total commercial real estate	36,019		264		42,364		18
Total impaired loans	$	50,132	$	411	$	66,793	$	21

⁽¹⁾  Recorded using the cash basis of accounting.

Credit Quality Indicators

Corporate loans and commitments are assessed for credit risk and assigned ratings based on various characteristics, such as the borrower's cash flow, leverage, and collateral. Ratings for commercial credits are reviewed periodically. The following tables present credit quality indicators by class for corporate and consumer loans, excluding covered loans, as of June 30, 2014 and December 31, 2013.

Corporate Credit Quality Indicators by Class, Excluding Covered Loans

(Dollar amounts in thousands)

	Pass		Special Mention (1) (4)		Substandard (2) (4)		Non-accrual (3)		Total
June 30, 2014
Commercial and industrial	$	1,980,523	$	50,036	$	19,830	$	22,629	$	2,073,018
Agricultural	329,965		298		—		363		330,626
Commercial real estate:
Office, retail, and industrial	1,250,914		24,233		20,831		16,423		1,312,401
Multi-family	344,279		3,862		717		1,572		350,430
Construction	164,789		8,790		16,453		5,077		195,109
Other commercial real estate	758,821		16,218		15,355		7,930		798,324
Total commercial real estate	2,518,803		53,103		53,356		31,002		2,656,264
Total corporate loans	$	4,829,291	$	103,437	$	73,186	$	53,994	$	5,059,908
December 31, 2013
Commercial and industrial	$	1,780,194	$	23,806	$	14,871	$	11,767	$	1,830,638
Agricultural	320,839		344		—		519		321,702
Commercial real estate:
Office, retail, and industrial	1,284,394		28,677		23,538		17,076		1,353,685
Multi-family	326,901		3,214		910		1,848		332,873
Construction	153,949		8,309		17,642		6,297		186,197
Other commercial real estate	761,465		14,877		22,576		8,153		807,071
Total commercial real estate	2,526,709		55,077		64,666		33,374		2,679,826
Total corporate loans	$	4,627,742	$	79,227	$	79,537	$	45,660	$	4,832,166

⁽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 in the future.

⁽²⁾  Loans categorized as substandard exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. These 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 or result in a loss if the deficiencies are not corrected.

⁽⁴⁾  Total special mention and substandard loans includes accruing TDRs of $3.6 million as of June 30, 2014 and $2.8 million as of December 31, 2013.

Consumer Credit Quality Indicators by Class, Excluding Covered Loans

(Dollar amounts in thousands)

	Performing		Non-accrual		Total
June 30, 2014
Home equity	$	478,505	$	6,580	$	485,085
1-4 family mortgages	237,065		4,091		241,156
Installment	55,245		2,063		57,308
Total consumer loans	$	770,815	$	12,734	$	783,549
December 31, 2013
Home equity	$	420,156	$	6,864	$	427,020
1-4 family mortgages	270,794		5,198		275,992
Installment	42,751		2,076		44,827
Total consumer loans	$	733,701	$	14,138	$	747,839

TDRs

TDRs are generally performed at the request of the individual borrower and may include forgiveness of principal, reduction in interest rates, changes in payments, and maturity date extensions. The table below presents TDRs by class as of June 30, 2014 and December 31, 2013. A discussion of our accounting policies for TDRs can be found in Note 1, “Summary of Significant Accounting Policies.”

TDRs by Class

(Dollar amounts in thousands)

	As of June 30, 2014						As of December 31, 2013
	Accruing		Non-accrual (1)		Total		Accruing		Non-accrual (1)		Total
Commercial and industrial	$	2,724	$	277	$	3,001	$	6,538	$	2,121	$	8,659
Agricultural	—		—		—		—		—		—
Commercial real estate:
Office, retail, and industrial	178		—		178		10,271		—		10,271
Multi-family	620		242		862		1,038		253		1,291
Construction	—		—		—		—		—		—
Other commercial real estate	448		188		636		4,326		291		4,617
Total commercial real estate	1,246		430		1,676		15,635		544		16,179
Total corporate loans	3,970		707		4,677		22,173		2,665		24,838
Home equity	836		517		1,353		787		512		1,299
1-4 family mortgages	891		476		1,367		810		906		1,716
Installment	—		—		—		—		—		—
Total consumer loans	1,727		993		2,720		1,597		1,418		3,015
Total loans	$	5,697	$	1,700	$	7,397	$	23,770	$	4,083	$	27,853

⁽¹⁾  These TDRs are included in non-accrual loans in the preceding tables.

TDRs are included in the calculation of the allowance for credit losses in the same manner as impaired loans. There were no specific reserves related to TDRs as of June 30, 2014 and there were $2.0 million in specific reserves related to TDRs as of December 31, 2013.

During the quarter and six months ended June 30, 2014, there were no material loans that were restructured. The following table presents a summary of loans that were restructured during the quarter and six months ended June 30, 2013.

Loans Restructured During the Period

(Dollar amounts in thousands)

	Number of Loans	Pre- Modification Recorded Investment		Funds Disbursed		Interest and Escrow Capitalized		Charge-offs		Post- Modification Recorded Investment
Quarter ended June 30, 2013
Commercial and industrial	2	$	13,354	$	—	$	—	$	—	$	13,354
Office, retail, and industrial	3	386		—		—		—		386
Multi-family	5	1,275		—		57		—		1,332
Other commercial real estate	5	564		—		—		—		564
Home equity	1	125		—		—		—		125
Total TDRs restructured during the period	16	$	15,704	$	—	$	57	$	—	$	15,761
Six months ended June 30, 2013
Commercial and industrial	4	$	14,070	$	—	$	2	$	—	$	14,072
Office, retail, and industrial	4	601		30		—		—		631
Multi-family	5	1,275		—		57		—		1,332
Construction	2	508		—		—		—		508
Other commercial real estate	5	564		—		—		—		564
Home equity	1	125		—		—		—		125
1-4 family mortgages	1	132		—		4		—		136
Total TDRs restructured during the period	22	$	17,275	$	30	$	63	$	—	$	17,368

Accruing TDRs that do not perform in accordance with their modified terms are transferred to non-accrual. The following table presents TDRs that had payment defaults during the quarters and six months ended June 30, 2014 and 2013 where the default occurred within twelve months of the restructure date.

TDRs That Defaulted Within Twelve Months of the Restructure Date

(Dollar amounts in thousands)

	Quarters Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Commercial and industrial	—	$	—	—	$	—	2	$	125	1	$	350
Other commercial real estate	—	—		1	198		—	—		3	354
Total	—	$	—	1	$	198	2	$	125	4	$	704

A rollforward of the carrying value of TDRs for the quarters and six months ended June 30, 2014 and 2013 is presented in the following table.

TDR Rollforward

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Accruing
Beginning balance	$	6,301		$	2,587		$	23,770		$	6,867
Additions	75			2,091			75			3,526
Net payments received	(650		)	(185		)	(1,110		)	(214		)
Returned to performing status	—			—			(18,821		)	(5,037		)
Net transfers from non-accrual	(29		)	3,794			1,783			3,145
Ending balance	5,697			8,287			5,697			8,287
Non-accrual
Beginning balance	1,920			10,405			4,083			10,924
Additions	—			13,670			—			13,842
Net payments received	(23		)	(40		)	(157		)	(535		)
Charge-offs	(152		)	(985		)	(186		)	(1,788		)
Transfers to OREO	(74		)	—			(257		)	(42		)
Loans sold	—			(806		)	—			(806		)
Net transfers to accruing	29			(3,794		)	(1,783		)	(3,145		)
Ending balance	1,700			18,450			1,700			18,450
Total TDRs	$	7,397		$	26,737		$	7,397		$	26,737

For TDRs to be removed from TDR status in the calendar year after the restructuring, the loans must (i) have an interest rate and terms that reflect market conditions at the time of restructuring, and (ii) be in compliance with the modified terms. TDRs that were returned to performing status totaled $18.8 million and $5.0 million for the six months ended June 30, 2014 and 2013, respectively. Loans that were not restructured at market rates and terms, that are not in compliance with the modified terms, or for which there is a concern about the future ability of the borrower to meet its obligations under the modified terms, continue to be separately reported as restructured until paid in full or charged-off.

There were no material commitments to lend additional funds to borrowers with TDRs as of June 30, 2014 and December 31, 2013.

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Income Taxes

6 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The following table presents income tax expense and the effective income tax rate for the quarters ended June 30, 2014 and 2013.

Income Tax Expense

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Income before income tax expense	$	27,142		$	24,131		$	52,978		$	45,066
Income tax expense:
Federal income tax expense	$	6,727		$	5,553		$	13,005		$	9,913
State income tax expense	1,915			2,402			3,809			4,335
Total income tax expense	$	8,642		$	7,955		$	16,814		$	14,248
Effective income tax rate	31.8		%	33.0		%	31.7		%	31.6		%

Federal income tax expense and the related effective income tax rate are influenced primarily by the amount of tax-exempt income derived from investment securities and BOLI in relation to pre-tax income and state income taxes. State income tax expense and the related effective income tax rate are driven by the amount of state tax-exempt income in relation to pre-tax income and state tax rules related to consolidated/combined reporting and sourcing of income and expense.

The decrease in the effective income tax rate of 31.8% for the second quarter of 2014 compared to 33.0% for the same period in 2013 was due primarily to a decrease in state income tax expense resulting from an increase in income exempt from state taxes and a decrease in statutory rates.

The Company’s accounting policies for income taxes are included in Note 1, “Summary of Significant Accounting Policies,” and Note 14, “Income Taxes,” in the Company’s 2013 10-K.

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Commitments, Guarantees, and Contingent Liabilities (Details) - Contractual or Notional Amounts of Financial Instruments (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Recourse on assets sold: [Abstract]
Unpaid principal balance of loans sold	$ 179,981		$ 170,330
Carrying value of recourse obligation	163	[1]	162	[1]
Letter of Credit
Commitments, Guarantees, and Contingent Liabilities (Details) - Contractual or Notional Amounts of Financial Instruments [Line Items]
Letters of Credit Outstanding, Amount	110,715		110,453
Commitments to Extend Credit
Commitments, Guarantees, and Contingent Liabilities (Details) - Contractual or Notional Amounts of Financial Instruments [Line Items]
Commercial, industrial, and agricultural	1,140,571		1,077,201
Commercial real estate	125,437		133,867
Home equity	283,761		268,311
Other commitments	179,969	[2]	181,702	[2]
Total commitments to extend credit	$ 1,729,738		$ 1,661,081

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

[2] This amount represents the fair value if credit risk related contingent features were triggered.

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Fair Value (Details) - Fair Value Measurements (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Mar. 31, 2014	Dec. 31, 2013		Jun. 30, 2013		Mar. 31, 2013	Dec. 31, 2012
Trading securities:
Total trading securities	$ 18,231			$ 17,317
Securities available-for-sale:
CDOs	18,436	[1]	21,666	18,309		14,917	[1]	12,924	12,129
Total securities available-for-sale	1,050,475			1,112,725
Level 1
Trading securities:
Money market funds	1,369			1,847
Mutual funds	16,862			15,470
Total trading securities	18,231			17,317
Securities available-for-sale:
U.S. Agency securities	0			0
CMOs	0			0
Other MBSs	0			0
Municipal securities	0			0
CDOs	0			0
Corporate debt securities	0			0
Hedge fund investment	0			0
Other equity securities	44			44
Total securities available-for-sale	44			44
Mortgage servicing rights	0	[2]		0	[2]
Derivative assets	0	[2]		0	[2]
Liabilities:
Derivative liabilities	0	[3]		0	[3]
Level 2
Trading securities:
Money market funds	0			0
Mutual funds	0			0
Total trading securities	0			0
Securities available-for-sale:
U.S. Agency securities	501			500
CMOs	441,465			475,768
Other MBSs	127,492			136,164
Municipal securities	443,885			461,393
CDOs	0			0
Corporate debt securities	15,235			14,929
Hedge fund investment	816			3,179
Other equity securities	2,601			2,439
Total securities available-for-sale	1,031,995			1,094,372
Mortgage servicing rights	0	[2]		0	[2]
Derivative assets	5,023	[2]		2,235	[2]
Liabilities:
Derivative liabilities	6,512	[3]		3,707	[3]
Level 3
Trading securities:
Money market funds	0			0
Mutual funds	0			0
Total trading securities	0			0
Securities available-for-sale:
U.S. Agency securities	0			0
CMOs	0			0
Other MBSs	0			0
Municipal securities	0			0
CDOs	18,436			18,309
Corporate debt securities	0			0
Hedge fund investment	0			0
Other equity securities	0			0
Total securities available-for-sale	18,436			18,309
Mortgage servicing rights	1,885	[2]		1,893	[2]
Derivative assets	0	[2]		0	[2]
Liabilities:
Derivative liabilities	$ 0	[3]		$ 0	[3]

[1] During the second quarter of 2014, one CDO with a carrying value of $1.3 million was sold. In addition, one CDO with a carrying value of zero was sold during the second quarter of 2013

[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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Derivative Financial Instruments (Details) - Offsetting Derivatives (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Offsetting Derivative Assets [Abstract]
Gross amounts recognized	$ 5,023		$ 2,235
Less: Amounts offset in the Consolidated Statements of Financial Condition	0		0
Net amount presented in the Consolidated Statements of Financial Condition	5,023	[1]	2,235	[1]
Derivative, Gross Amounts Not Offset in Consolidated Statements of Financial Condition, Offsetting derivative positions	(79)		(704)
Derivative, Gross Amounts Not Offset in Consolidated Statements of Financial Condition, Cash collateral pledged	0		0
Derivative Asset, Net credit exposure	4,944		1,531
Offsetting Derivative Liabilities [Abstract]
Gross amounts recognized	6,512		3,707
Less: Amounts offset in the Consolidated Statements of Financial Condition	0		0
Net amount presented in the Consolidated Statements of Financial Condition	6,512	[1]	3,707	[1]
Derivative, Gross Amounts Not Offset in Consolidated Statements of Financial Condition, Offsetting derivative positions	(79)		(704)
Derivative, Gross Amounts Not Offset in Consolidated Statements of Financial Condition, Cash collateral pledged	(6,433)		(3,003)
Derivative Liability, Net credit exposure	$ 0		$ 0

[1] Included in other assets or other liabilities in the Consolidated Statements of Financial Condition.

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Securities (Details) - Securities Portfolio (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Securities Available-for-Sale
Cost	$ 1,065,733	$ 1,147,114
Gross Unrealized Gains	22,513	18,425
Gross Unrealized Losses	(37,771)	(52,814)
Value	1,050,475	1,112,725
Securities Held-to-Maturity
Municipal securities, at amortized cost	26,471	44,322
Municipal securities, Gross Unrealized Gains	605	0
Municipal securities, Gross Unrealized Losses	0	(935)
Municipal securities, Fair Value	27,076	43,387
Trading Securities	18,231	17,317
U.S. Agency Securities
Securities Available-for-Sale
Cost	500	500
Gross Unrealized Gains	1	0
Gross Unrealized Losses	0	0
Value	501	500
Collateralized Mortgage Obligations
Securities Available-for-Sale
Cost	448,337	490,962
Gross Unrealized Gains	1,919	1,427
Gross Unrealized Losses	(8,791)	(16,621)
Value	441,465	475,768
Other Mortgage Backed Securities
Securities Available-for-Sale
Cost	123,787	135,097
Gross Unrealized Gains	4,429	3,349
Gross Unrealized Losses	(724)	(2,282)
Value	127,492	136,164
Municipal Securities
Securities Available-for-Sale
Cost	432,187	457,318
Gross Unrealized Gains	13,319	9,673
Gross Unrealized Losses	(1,621)	(5,598)
Value	443,885	461,393
Trust-preferred collateralized debt obligations
Securities Available-for-Sale
Cost	45,023	46,532
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(26,587)	(28,223)
Value	18,436	18,309
Corporate Debt Securities
Securities Available-for-Sale
Cost	12,995	12,999
Gross Unrealized Gains	2,240	1,930
Gross Unrealized Losses	0	0
Value	15,235	14,929
Hedge Fund Investment
Securities Available-for-Sale
Cost	298	1,208
Gross Unrealized Gains	518	1,971
Gross Unrealized Losses	0	0
Value	816	3,179
Other Equity Securities
Securities Available-for-Sale
Cost	2,606	2,498
Gross Unrealized Gains	87	75
Gross Unrealized Losses	(48)	(90)
Value	2,645	2,483
Equity Securities
Securities Available-for-Sale
Cost	2,904	3,706
Gross Unrealized Gains	605	2,046
Gross Unrealized Losses	(48)	(90)
Value	$ 3,461	$ 5,662

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Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items]
Credit Quality Indicators by Class	$ 783,549	$ 747,839
Performing
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items]
Credit Quality Indicators by Class	770,815	733,701
Non-accrual
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items]
Credit Quality Indicators by Class	12,734	14,138
Home Equity Line of Credit
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items]
Credit Quality Indicators by Class	485,085	427,020
Home Equity Line of Credit | Performing
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items]
Credit Quality Indicators by Class	478,505	420,156
Home Equity Line of Credit | Non-accrual
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items]
Credit Quality Indicators by Class	6,580	6,864
1-4 family mortgages
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items]
Credit Quality Indicators by Class	241,156	275,992
1-4 family mortgages | Performing
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items]
Credit Quality Indicators by Class	237,065	270,794
1-4 family mortgages | Non-accrual
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items]
Credit Quality Indicators by Class	4,091	5,198
Installment Loans
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items]
Credit Quality Indicators by Class	57,308	44,827
Installment Loans | Performing
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items]
Credit Quality Indicators by Class	55,245	42,751
Installment Loans | Non-accrual
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items]
Credit Quality Indicators by Class	$ 2,063	$ 2,076

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Accounting Policies, by Policy (Policies)

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation – The accompanying unaudited condensed consolidated interim financial statements of First Midwest Bancorp, Inc. (the “Company”), a Delaware corporation, were prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") for quarterly reports on Form 10-Q and reflect all adjustments that management deems necessary for the fair presentation of the financial position and results of operations for the periods presented. The results of operations for the quarter and six month period ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.

The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles (“GAAP”) and general practices within the banking industry. The accompanying quarterly statements do not include certain information and footnote disclosures required by GAAP for complete annual financial statements. Therefore, these financial statements should be read in conjunction with the Company’s 2013 Annual Report on Form 10-K (“2013 10-K”). 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

Principles of Consolidation

Principles of Consolidation – The accompanying condensed consolidated financial statements include the financial position 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 condensed consolidated financial statements.

Use of Estimates

Use of Estimates – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed 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.

The accounting policies related to loans, the allowance for credit losses, the FDIC indemnification asset, and derivative financial instruments are presented below. For a summary of all other significant accounting policies, please refer to Note 1, “Summary of Significant Accounting Policies,” in the Company’s 2013 10-K.

Loans

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

Purchased Impaired Loans

Purchased Impaired Loans– Purchased impaired loans include acquired loans that had evidence of credit deterioration since origination and it was probable at acquisition that the Company would not collect all contractually required principal and interest payments. Evidence of credit deterioration was evaluated using various indicators, such as past due and non-accrual status. Other key considerations included past performance of the institutions' credit underwriting standards, completeness and accuracy of credit files, maintenance of risk ratings, and age of appraisals. Lease and revolving loans do not qualify to be accounted for as purchased impaired loans. No allowance for credit losses is recorded on these loans at the acquisition date. Purchased impaired loans are recorded at fair value, and are accounted for prospectively based on estimates of expected cash flows. To estimate the fair value, 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. The fair values of larger balance commercial loans are estimated 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 the difference between contractually required payments and the cash flows expected to be collected at acquisition.

Subsequent increases in cash flows are recognized as interest income prospectively. The present value of any decreases in expected cash flows is recognized by recording a charge-off through the allowance for loan and covered loan losses or establishing an allowance for loan and covered loan losses.

Non-accrual Loans

Non-accrual Loans– Generally, corporate loans are placed on non-accrual status (i) when either principal or interest payments become 90 days or more past due 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 warrants a downgrade to non-accrual regardless of past due status. 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 that the Company will collect all principal and interest.

Commercial loans and loans secured by real estate are charged-off when deemed uncollectible. A loss is recorded if the net realizable value of the underlying collateral is less than the outstanding principal and interest. 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 usually charged-off no later than the end of the month in which the loan becomes 120 days past due.

Purchased impaired loans are generally 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 is not recognized on those loans until the timing and amount of the future cash flows can be reasonably determined.

Troubled Debt Restructurings (“TDRs”)

Troubled Debt Restructurings (“TDRs”) – A restructuring is considered a TDR when (i) the borrower is experiencing financial difficulties and (ii) the creditor grants a concession, such as forgiveness of principal, reduction of the interest rate, changes in payments, or extension of the maturity date. Loans are not classified as TDRs when the modification is short-term or results in an insignificant delay in payments. The Company’s TDRs are determined on a case-by-case basis.

The Company does not accrue interest on a TDR 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 future capacity to perform under the modified terms. Generally, six months of consecutive payment performance 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 the borrower’s 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. For TDRs to be removed from TDR status in the calendar year after the restructuring, the loans must (i) have an interest rate and terms that reflect market conditions at the time of restructuring, and (ii) be in compliance with the modified terms. If the loan was restructured at below market rates and terms, it continues to be separately reported as restructured until it is paid in full or charged-off.

Impaired Loans

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

A loan is considered impaired when it is probable that the Company will not collect all contractual principal and interest. With the exception of accruing TDRs, impaired loans are classified as non-accrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and installment loans. 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 collateral-dependent loans is based on the fair value of the underlying collateral, less costs to sell. The value of other loans is measured using the present value of expected future cash flows discounted at the loan’s initial effective interest rate. 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 Past Due Loans –The Company’s accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is sufficiently collateralized and in the process of renewal or collection.

Allowance for Credit Losses

Allowance for Credit Losses – The allowance for credit losses is comprised of the allowance for loan losses, the allowance for covered 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 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.

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

Allowance for Loan Losses– The allowance for loan losses consists of (i) specific reserves for individual loans where the recorded investment exceeds the value, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) and allowance based on 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. If the value of an impaired loan is less than the recorded book value, the Company either establishes a valuation allowance (i.e., a specific reserve) equal to the excess of the book value over the value of the loan as a component of the allowance for loan losses or charges off the amount if it is a confirmed loss.

The general reserve component is based on a loss migration analysis, which examines actual loss experience by loan category for a rolling 8-quarter period and the related internal risk rating for corporate loans. The loss migration analysis is updated quarterly using actual loss experience. This component is then adjusted based on management’s consideration of many internal and external qualitative factors, including:

• Changes in the composition of the loan portfolio, trends in the volume of loans, and trends in delinquent and non-accrual loans that could indicate that 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 effect of any concentration of credit and changes in the level of concentrations, such as 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.

• The effect of other external factors, such as competition and legal and regulatory requirements, on the Company’s loan portfolio.

Allowance for Covered Loan Losses– The Company’s allowance for covered loan losses reflects the difference between the carrying value and the discounted present value of the estimated cash flows of the covered purchased impaired loans. On a periodic basis, the adequacy of this allowance is determined through a re-estimation of cash flows on all of the outstanding covered purchased impaired loans using either a probability of default/loss given default (“PD/LGD”) methodology or a specific review methodology. The PD/LGD model is an expected loss model that estimates future cash flows using a probability of default curve and loss given default estimates.

Reserve for Unfunded Commitments– The Company also maintains a reserve for unfunded commitments, including letters of credit, for the risk of loss inherent in these arrangements. The reserve for unfunded commitments is estimated using the loss migration analysis from the allowance for loan losses, adjusted for 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 given the difficulty of assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the 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.

FDIC Indemnification Asset

FDIC Indemnification Asset – The majority of loans and OREO acquired through FDIC-assisted transactions are covered by loss share agreements with the FDIC (the “FDIC Agreements”), under which the FDIC reimburses the Company for the majority of the losses and eligible expenses related to these assets. The FDIC indemnification asset represents the present value of future expected reimbursements from the FDIC. Since the indemnified items are covered loans and covered OREO, which are initially measured at fair value, the FDIC indemnification asset is also initially measured at fair value by discounting the cash flows expected to be received from the FDIC. These cash flows are estimated by multiplying estimated losses on purchased impaired loans and OREO by the reimbursement rates in the FDIC Agreements.

The balance of the FDIC indemnification asset is adjusted periodically to reflect changes in estimated cash flows. Decreases in estimated reimbursements from the FDIC are recorded prospectively through amortization and increases in estimated reimbursements from the FDIC are recognized by an increase in the carrying value of the indemnification asset. Payments from the FDIC for reimbursement of losses result in a reduction of the FDIC indemnification asset.

Derivative Financial Instruments

Derivative Financial Instruments – 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. All derivative instruments are recorded at fair value as either other assets or other liabilities in the Consolidated Statements of Financial Condition. Subsequent changes in a derivative’s fair value are recognized in earnings unless specific hedge accounting criteria are met.

On the date the Company enters into a derivative contract, the derivative is designated as a fair value hedge, a cash flow hedge, or a non-hedge derivative instrument. Fair value hedges are designed to mitigate exposure to changes in the fair value of an asset or liability attributable to a particular risk, such as interest rate risk. Cash flow hedges are designed to mitigate exposure to variability in expected future cash flows to be received or paid related to an asset, liability, or other type of forecasted transaction. The Company formally documents all relationships between hedging instruments and hedged items, including its risk management objective and strategy.

At the hedge’s inception and quarterly thereafter, a formal assessment is performed to determine the effectiveness of the derivative in offsetting changes in the fair values or cash flows of the hedged items in the current period and prospectively. If a derivative instrument designated as a hedge is terminated or ceases to be highly effective, hedge accounting is discontinued prospectively, and the gain or loss is amortized into earnings. For fair value hedges, the gain or loss is amortized over the remaining life of the hedged asset or liability. For cash flow hedges, the gain or loss is amortized over the same period that the forecasted hedged transactions impact earnings. If the hedged item is disposed of, any fair value adjustments are included in the gain or loss from the disposition of the hedged item. If the forecasted transaction is no longer probable, the gain or loss is included in earnings immediately.

For effective fair value hedges, changes in the fair value of the derivative instruments, as well as changes in the fair value of the hedged item, are recognized in earnings. For cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of accumulated other comprehensive loss and is reclassified to earnings when the hedged transaction is reflected in earnings.

Ineffectiveness is calculated based on the change in fair value of the hedged item compared with the change in fair value of the hedging instrument. For all types of hedges, any ineffectiveness in the hedging relationship is recognized in earnings during the period the ineffectiveness occurs.

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Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The table below displays the calculation of basic and diluted earnings per share.

Basic and Diluted Earnings per Common Share

(Amounts in thousands, except per share data)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Net income	$	18,500		$	16,176		$	36,164		$	30,818
Net income applicable to non-vested restricted shares	(230		)	(219		)	(455		)	(431		)
Net income applicable to common shares	$	18,270		$	15,957		$	35,709		$	30,387
Weighted-average common shares outstanding:
Weighted-average common shares outstanding (basic)	74,322			74,017			74,235			73,942
Dilutive effect of common stock equivalents	11			7			12			8
Weighted-average diluted common shares outstanding	74,333			74,024			74,247			73,950
Basic earnings per common share	$	0.25		$	0.22		$	0.48		$	0.41
Diluted earnings per common share	$	0.25		$	0.22		$	0.48		$	0.41
Anti-dilutive shares not included in the computation of diluted earnings per common share (1)	1,177			1,447			1,246			1,520

⁽¹⁾  This amount represents outstanding stock options for which the exercise price is greater than the average market price of the Company's common stock.

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Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items]
Average Recorded Investment	$ 47,284		$ 70,587		$ 50,132		$ 66,793
Interest Income Recognized	144	[1]	12	[1]	411	[1]	21	[1]
Commercial And Industrial
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items]
Average Recorded Investment	14,581		25,757		14,113		24,429
Interest Income Recognized	29	[1]	1	[1]	147	[1]	3	[1]
Agricultural
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items]
Average Recorded Investment	0		0		0		0
Interest Income Recognized	0	[1]	0	[1]	0	[1]	0	[1]
Office Retail And Industrial
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items]
Average Recorded Investment	20,098		23,662		22,181		22,316
Interest Income Recognized	6	[1]	6	[1]	147	[1]	10	[1]
Multi-Family
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items]
Average Recorded Investment	1,424		1,009		1,381		845
Interest Income Recognized	2	[1]	0	[1]	2	[1]	0	[1]
Construction
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items]
Average Recorded Investment	4,788		6,397		5,096		5,850
Interest Income Recognized	0	[1]	0	[1]	0	[1]	0	[1]
Other Commercial Real Estate
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items]
Average Recorded Investment	6,393		13,762		7,361		13,353
Interest Income Recognized	107	[1]	5	[1]	115	[1]	8	[1]
Total Commercial Real Estate
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items]
Average Recorded Investment	32,703		44,830		36,019		42,364
Interest Income Recognized	$ 115	[1]	$ 11	[1]	$ 264	[1]	$ 18	[1]

[1] Recorded using the cash basis of accounting.

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Acquired Loans (Details) - Acquired Loans (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Note 5 - Acquired Loans (Details) - Acquired Loans [Line Items]
Purchased impaired loans	$ 89,778		$ 119,133
Other loans	43,078	[1]	47,854	[1]
Total acquired loans	132,856		166,987
Covered Loan
Note 5 - Acquired Loans (Details) - Acquired Loans [Line Items]
Purchased impaired loans	75,864		103,525
Other loans	29,003	[1]	30,830	[1]
Total acquired loans	104,867		134,355
Non-Covered Loan
Note 5 - Acquired Loans (Details) - Acquired Loans [Line Items]
Purchased impaired loans	13,914		15,608
Other loans	14,075	[1]	17,024	[1]
Total acquired loans	$ 27,989		$ 32,632

[1] These loans did not meet the criteria to be accounted for as purchased impaired loans.

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Consolidated Statements Of Comprehensive Income (Loss) (Unaudited)-AOCI (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			$ (26,792)	$ (15,660)
Other comprehensive income (loss)	4,501	6,590	11,521	5,361
Ending Balance	(15,271)	(10,299)	(15,271)	(10,299)
Accumulated Unrealized Gain (Loss) on Securities Available- for-Sale
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			(20,419)	1,115
Other comprehensive income (loss)			11,638	(1,138)
Ending Balance	(8,781)	(23)	(8,781)	(23)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			0	0
Other comprehensive income (loss)			(117)	0
Ending Balance	(117)	0	(117)	0
Unrecognized Net Pension Costs
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			(6,373)	(16,775)
Other comprehensive income (loss)			0	6,499
Ending Balance	$ (6,373)	$ (10,276)	$ (6,373)	$ (10,276)

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Recent Events

6 Months Ended

Jun. 30, 2014

Recent Events [Abstract]

Recent Events

RECENT EVENTS

Acquisitions

On April 22, 2014, First Midwest Bank (the "Bank") entered into a definitive agreement to acquire the Chicago area banking operations of Banco Popular North America (doing business as Popular Community Bank), which is a subsidiary of Popular, Inc. The acquisition includes Popular Community Bank's retail banking offices and its small business and middle market commercial lending activities in the Chicago metropolitan area. As part of the transaction, the Bank will acquire twelve full-service retail branches, approximately $738 million in deposits, and approximately $561 million in loans. The Bank received regulatory approval for this acquisition from the Federal Reserve; however, the acquisition is subject to certain closing conditions and is expected to close in the third quarter of 2014.

Equity Matters

On May 21, 2014, the stockholders of the Company approved an amendment to our Restated Certificate of Incorporation. The amendment increased the Company's authorized common stock by 50,000,000 shares. Following this amendment, the Company is now authorized to issue a total of 151,000,000 shares, including 1,000,000 shares of Preferred Stock, without a par value, and 150,000,000 shares of Common Stock, $0.01 par value per share.

Recent Accounting Pronouncements

Income Taxes: In January of 2014, the Financial Accounting Standards Board ("FASB") issued guidance that requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date or, if the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The guidance is effective for annual and interim reporting periods beginning on or after December 15, 2013, and must be applied prospectively. The adoption of this guidance on January 1, 2014 did not impact the Company's financial condition, results of operations, or liquidity.

Receivables - Troubled Debt Restructurings by Creditors: In January of 2014, the FASB issued guidance to clarify when an in substance repossession or foreclosure occurs and an entity is considered to have received physical possession of the residential real estate property such that a loan receivable should be derecognized and the real estate property recognized. Additionally, the guidance requires interim and annual disclosure of the amount of foreclosed residential real estate property held by the entity and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The guidance is effective for annual and interim periods beginning after December 15, 2014 and can be applied retrospectively or prospectively. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity.

Reporting Discontinued Operations: In April of 2014, the FASB issued guidance that requires an entity to report a disposal of a component of an entity or a group of components of an entity in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component of an entity or group of components of an entity (1) meets the criteria to be classified as held for sale, (2) is disposed of by sale, or (3) is disposed of other than by sale. The guidance is effective for annual and interim reporting periods beginning on or after December 15, 2014, and must be applied prospectively. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity.

Revenue from Contracts with Customers: In May of 2014, the FASB issued guidance that requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for annual and interim reporting periods beginning on or after December 15, 2016, and must be applied either retrospectively or using the modified retrospective approach. Management is evaluating the new guidance, but does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity.

Transfers and Servicing: In June of 2014, the FASB issued guidance that requires repurchase-to-maturity transactions to be accounted for as secured borrowings. The guidance also requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty. If the derecognition criteria are met, the initial transfer will generally be accounted for as a sale and the repurchase agreement will generally be accounted for as a secured borrowing. The guidance is effective for annual and interim reporting periods beginning after December 15, 2014. Management is evaluating the new guidance, but does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity.

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Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Tax Disclosure [Abstract]
Effective income tax rate (percent)	31.80%	33.00%	31.70%	31.60%

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Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Level 1
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis [Line Items]
Collateral-dependent impaired loans	$ 0	[1]	$ 0	[1]
OREO	0	[2]	0	[2]
Loans held-for-sale	0	[3]	0	[3]
Assets held-for-sale	0	[4]	0	[4]
Level 2
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis [Line Items]
Collateral-dependent impaired loans	0	[1]	0	[1]
OREO	0	[2]	0	[2]
Loans held-for-sale	0	[3]	0	[3]
Assets held-for-sale	0	[4]	0	[4]
Level 3
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis [Line Items]
Collateral-dependent impaired loans	23,111	[1]	13,103	[1]
OREO	16,266	[2]	13,347	[2]
Loans held-for-sale	21,125	[3]	4,739	[3]
Assets held-for-sale	$ 4,318	[4]	$ 4,027	[4]

[1] Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented.

[2] Includes OREO and covered OREO with fair value adjustments subsequent to initial transfer that occurred during the periods presented.

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

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

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The following table presents income tax expense and the effective income tax rate for the quarters ended June 30, 2014 and 2013.

Income Tax Expense

(Dollar amounts in thousands)

	Quarters Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Income before income tax expense	$	27,142		$	24,131		$	52,978		$	45,066
Income tax expense:
Federal income tax expense	$	6,727		$	5,553		$	13,005		$	9,913
State income tax expense	1,915			2,402			3,809			4,335
Total income tax expense	$	8,642		$	7,955		$	16,814		$	14,248
Effective income tax rate	31.8		%	33.0		%	31.7		%	31.6		%

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Securities (Details) - Securities In An Unrealized Loss Position (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014 security	Dec. 31, 2013 security
Collateralized Mortgage Obligations
Securities (Details) - Securities In An Unrealized Loss Position [Line Items]
Number of Securities (securities)	54	67
Fair Value - Less Than 12 Months	$ 17,978	$ 338,064
Unrealized Losses - Less Than 12 Months	158	14,288
Fair Value - 12 Months or Longer	294,643	57,269
Unrealized Losses - 12 Months or Longer	8,633	2,333
Fair Value - Total	312,621	395,333
Unrealized Losses - Total	8,791	16,621
Other Mortgage Backed Securities
Securities (Details) - Securities In An Unrealized Loss Position [Line Items]
Number of Securities (securities)	13	19
Fair Value - Less Than 12 Months	383	57,311
Unrealized Losses - Less Than 12 Months	5	2,281
Fair Value - 12 Months or Longer	40,986	356
Unrealized Losses - 12 Months or Longer	719	1
Fair Value - Total	41,369	57,667
Unrealized Losses - Total	724	2,282
Municipal Securities
Securities (Details) - Securities In An Unrealized Loss Position [Line Items]
Number of Securities (securities)	107	154
Fair Value - Less Than 12 Months	0	65,370
Unrealized Losses - Less Than 12 Months	0	3,245
Fair Value - 12 Months or Longer	67,326	27,565
Unrealized Losses - 12 Months or Longer	1,621	2,353
Fair Value - Total	67,326	92,935
Unrealized Losses - Total	1,621	5,598
Trust-preferred collateralized debt obligations
Securities (Details) - Securities In An Unrealized Loss Position [Line Items]
Number of Securities (securities)	5	6
Fair Value - Less Than 12 Months	0	0
Unrealized Losses - Less Than 12 Months	0	0
Fair Value - 12 Months or Longer	18,436	18,309
Unrealized Losses - 12 Months or Longer	26,587	28,223
Fair Value - Total	18,436	18,309
Unrealized Losses - Total	26,587	28,223
Equity Securities
Securities (Details) - Securities In An Unrealized Loss Position [Line Items]
Number of Securities (securities)	1	1
Fair Value - Less Than 12 Months	0	2,168
Unrealized Losses - Less Than 12 Months	0	90
Fair Value - 12 Months or Longer	2,232	0
Unrealized Losses - 12 Months or Longer	48	0
Fair Value - Total	2,232	2,168
Unrealized Losses - Total	48	90
Unrealized Loss Position [Member]
Securities (Details) - Securities In An Unrealized Loss Position [Line Items]
Number of Securities (securities)	180	247
Fair Value - Less Than 12 Months	18,361	462,913
Unrealized Losses - Less Than 12 Months	163	19,904
Fair Value - 12 Months or Longer	423,623	103,499
Unrealized Losses - 12 Months or Longer	37,608	32,910
Fair Value - Total	441,984	566,412
Unrealized Losses - Total	$ 37,771	$ 52,814

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Subsequent Events (Notes)

6 Months Ended

Jun. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

On July 7, 2014, the Company entered into a definitive agreement to acquire the south suburban Chicago-based Great Lakes Financial Resources, Inc., the holding company for Great Lakes Bank, National Association. As part of the acquisition, the Company will acquire eight locations, approximately $490 million in deposits, and $234 million in loans. The merger consideration will be a combination of Company stock and cash, with an overall transaction value of approximately $58.0 million, subject to certain adjustments based on the stock price of the Company prior to closing. The acquisition is subject to approval by the stockholders of Great Lakes Financial Resources, Inc., customary regulatory approvals, and certain closing conditions, and is expected to close before the end of 2014.