UPDATE: Sterne Agee Downgrades First Midwest Bancorp to Neutral on Expense Outlook

Sterne Agee downgraded First Midwest Bancorp

from Buy to Neutral. Sterne Agee said, "We are lowering our rating on FMBI to Neutral from Buy in conjunction with a reduced earnings outlook primarily driven by the company's expense forecast. The valuation has increased significantly over the past year as FMBI took more aggressive steps to improve credit quality; however, estimate trimming post 4Q and the resulting peer-level valuation likely will impede additional near-term upside." First Midwest Bancorp closed at $12.85 on Wednesday.