CONDENSED PARENT COMPANY FINANCIAL STATEMENTS

The following represents the condensed financial statements of First Midwest Bancorp, Inc., the Parent Company.

Statements of Financial Condition

(Parent Company only)

(Dollar amounts in thousands)



	As of December 31,
	2018		2017
Assets
Cash and due from banks	$	158,026	$	120,812
Investments in and advances to subsidiaries	2,091,158		1,952,414
Other assets	55,782		43,606
Total assets	$	2,304,966	$	2,116,832
Liabilities and Stockholders' Equity
Senior and subordinated debt	$	203,808	$	195,170
Accrued interest payable and other liabilities	46,160		56,788
Stockholders' equity	2,054,998		1,864,874
Total liabilities and stockholders' equity	$	2,304,966	$	2,116,832

Statements of Income

(Parent Company only)

(Dollar amounts in thousands)



	Years Ended December 31,
	2018			2017			2016
Income
Dividends from subsidiaries	$	86,095		$	74,091		$	86,791
Interest income	453			2,211			2,188
Securities transactions and other	280			(1,372		)	215
Total income	86,828			74,930			89,194
Expenses
Interest expense	12,708			12,428			12,477
Salaries and employee benefits	22,430			20,978			16,104
Other expenses	9,440			9,126			7,110
Total expenses	44,578			42,532			35,691
Income before income tax benefit and equity in undistributed income of subsidiaries	42,250			32,398			53,503
Income tax benefit	13,299			14,851			12,878
Income before equity in undistributed income of subsidiaries	55,549			47,249			66,381
Equity in undistributed income of subsidiaries	102,321			51,138			25,968
Net income	157,870			98,387			92,349
Net income applicable to non-vested restricted shares	(1,312		)	(916		)	(1,043		)
Net income applicable to common shares	$	156,558		$	97,471		$	91,306

Statements of Cash Flows

(Parent Company only)

(Dollar amounts in thousands)



	Years Ended December 31,
	2018			2017			2016
Operating Activities
Net income	$	157,870		$	98,387		$	92,349
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiaries	(102,321		)	(51,138		)	(25,968		)
Depreciation of premises, furniture, and equipment	42			9			2
Net securities losses	—			1,523			—
Share-based compensation expense	12,062			11,223			7,879
Tax benefit (expense) related to share-based compensation	258			349			(197		)
Net decrease (increase) in other assets	35,981			18,667			(75,104		)
Net (decrease) increase in other liabilities	(17,942		)	(52,377		)	74,571
Net cash provided by operating activities	85,950			26,643			73,532
Investing Activities
Purchases of securities available-for-sale	—			—			(14		)
Proceeds from sales and maturities of securities available-for-sale	—			42,516			601
Purchase of premises, furniture, and equipment	(61		)	(119		)	—
Net cash received (paid) for acquisitions	39			(47,364		)	(14,905		)
Net cash used in investing activities	(22		)	(4,967		)	(14,318		)
Financing Activities
Net proceeds from the issuance of subordinated debt	—			—			146,484
Payments for the retirement of senior and subordinated debt	—			—			(153,500		)
Cash dividends paid	(44,293		)	(37,129		)	(29,198		)
Restricted stock activity	(4,421		)	(3,952		)	(2,476		)
Net cash used in financing activities	(48,714		)	(41,081		)	(38,690		)
Net increase in cash and cash equivalents	37,214			(19,405		)	20,524
Cash and cash equivalents at beginning of year	120,812			140,217			119,693
Cash and cash equivalents at end of year	$	158,026		$	120,812		$	140,217
Supplemental Disclosures of Cash Flow Information:
Common stock issued for acquisitions, net of issuance costs	$	83,303		$	534,090		$	54,896