MB Financial 8-K MB Financial, Inc. Reports Fourth Quarter 2017 Net Income of $144.2 Million

EXHIBIT 99.1

4Q17

MB FINANCIAL, INC. REPORTS FOURTH QUARTER 2017 NET INCOME OF $144.2 MILLION

CHICAGO, January 25, 2018 – MB Financial, Inc. (NASDAQ: MBFI), the holding company for MB Financial Bank, N.A., today announced fourth quarter 2017 net income of $144.2 million compared to $60.8 million last quarter and $47.2 million in the fourth quarter a year ago.  Diluted earnings per common share were $1.67 in the fourth quarter of 2017 compared to $0.69 last quarter and $0.53 in the fourth quarter a year ago. Annual net income for 2017 was $304.0 million compared to $174.1 million for 2016. Diluted earnings per common share were $3.49 for 2017 compared to $2.13 for 2016.

Fourth quarter 2017 operating earnings were $47.4 million compared to $62.8 million last quarter and $51.8 million in the fourth quarter a year ago.  Diluted operating earnings per common share were $0.53 in the fourth quarter of 2017 compared to $0.72 last quarter and $0.59 in the fourth quarter a year ago. Annual operating earnings for 2017 were $211.1 million compared to $190.5 million for 2016. Diluted operating earnings per common share were $2.39 for 2017 compared to $2.34 for 2016.

Capital Raise and Tax Reform Update

• In November 2017, we successfully issued $200 million in 6% fixed rate non-cumulative perpetual preferred stock, and our bank subsidiary issued $175 million in 4% fixed-to-floating rate subordinated notes. A portion of the net proceeds of the preferred stock offering will be used to redeem all $100 million of our 8% non-cumulative perpetual preferred stock on February 15, 2018 and $10 million was used to pre-pay our term note in January 2018.

• We recognized a $104.2 million tax benefit in the fourth quarter of 2017 due to the enactment of the Tax Cuts and Jobs Act of 2017 ("TCJ Act"). Approximately $6.5 million of the tax benefit was recognized at our Banking Segment, $65.3 million at our Leasing Segment, and $32.4 million at our Mortgage Banking Segment.

• Our company's capital position was strengthened by the capital we raised and the TCJ Act tax benefit. Our tangible common equity to tangible assets increased to 8.70% at December 31, 2017 compared to 8.07% at September 30, 2017 and our total capital to risk-weighted assets increased to 14.23% at December 31, 2017 compared to 11.67% at September 30, 2017.

• In the fourth quarter, we contributed $7.5 million to the MB Financial Charitable Foundation, raised our minimum wage to $15 per hour effective January 2018, and awarded approximately $2.7 million in one-time bonuses.

• We estimate that our effective tax rate in 2018 will be reduced by approximately 10%, due to the TCJ Act, to 24%.

"We had a very busy fourth quarter and 2017.  We raised $375 million of capital; increased our residential mortgage team with members transferred from Busey Bank; and as a result of a Tax Cuts and Jobs Act of 2017 tax benefit, we were able to give back to our employees and communities.  Our capital position meaningfully strengthened. We significantly grew our core banking business.  And, we did so while maintaining high credit quality," said Mitchell Feiger, President and Chief Executive Officer of MB Financial, Inc.  "In 2017, we had solid loan growth of 9.8%, low-cost deposit growth of 3.4%, and key fee growth, excluding mortgage banking revenue, of 15.1%.  I attribute our success to an unwavering focus on the four pillars of our long-term strategy:  high quality low-cost deposits; strong rapidly growing fee businesses; diversification across revenue and profit sources, loans and deposits; and close attention to balance sheet risk, especially credit quality."

Mr. Feiger continued, "Our operating earnings for the quarter were down as funding costs and other expenses increased and our Mortgage Banking segment recorded a loss.  While disappointing, many of the things we accomplished in 2017, particularly in the fourth quarter, set us up well for 2018. We had significant growth in low-cost deposits in the quarter (15.6% annualized) led by growth in noninterest bearing deposits of 18.2% on an annualized basis. Lease finance revenue grew 17.9% in the year as a result of investments we made in Leasing personnel and products. Our Wealth Management Department saw good growth and reorganized to be even more successful. Fourth quarter trust and asset management fees were 6.9% greater than the same period a year earlier. Our Cards and Payments businesses continues to grow at a rapid pace. Fourth quarter cards fees were 15.9% greater than the same period in 2016. MB Business Capital (our asset-based lending unit) and our Commercial Specialty businesses, among others, added significant numbers of new clients in the year. Our investment portfolio again had strong returns. And our growing investments in technology and infrastructure should provide a more reliable, safer, and more nimble operating environment for our company. These investments, new clients, increased revenues, and strong expense control, along with an expected improvement in our net interest margin in the first quarter of 2018 position us well for 2018.”

Operating Earnings (in thousands, except per share data)

													Year Ended
													December 31,
	4Q17			3Q17		2Q17		1Q17			4Q16		2017			2016
Net income - as reported	$	144,194		$	60,843	$	44,466	$	54,537		$	47,191	$	304,040		$	174,136
Non-core items, net of tax (1)	(96,814		)	1,942		3,292		(1,358		)	4,656		(92,938		)	16,361
Operating earnings	47,380			62,785		47,758		53,179			51,847		211,102			190,497
Dividends on preferred shares	2,000			2,002		2,002		2,003			2,005		8,007			8,009
Operating earnings available to common stockholders	$	45,380		$	60,783	$	45,756	$	51,176		$	49,842	$	203,095		$	182,488
Diluted earnings per common share - as reported	$	1.67		$	0.69	$	0.50	$	0.62		$	0.53	$	3.49		$	2.13
Diluted operating earnings per common share	$	0.53		$	0.72	$	0.54	$	0.60		$	0.59	$	2.39		$	2.34

⁽¹⁾  Non-core items represent the difference between non-core non-interest income and non-core non-interest expense net of tax. See "Non-GAAP Financial Information" section for details on non-core items.

Key Items - Full Year (compared to 2016)

Operating Earnings

• Operating earnings increased $20.6 million, or 10.8%, to $211.1 million compared to the prior year.

• The Banking Segment contributed $34.1 million to the increase in operating earnings partly offset by a $13.4 million decrease in the Mortgage Banking Segment. Leasing Segment operating earnings were consistent with the prior year.

• Banking Segment operating earnings were positively impacted by strong loan growth, improvements in nearly all key fee initiatives, as well as our merger with American Chartered Bancorp Inc. ("American Chartered") completed in third quarter 2016.

• Mortgage Banking Segment operating earnings, which declined from $18.9 million to $5.5 million, were impacted by lower origination and servicing fees.

• Diluted operating earnings per common share were $2.39 compared to $2.34 in the prior year.

Loans

• Loans, excluding purchased credit-impaired loans, increased $1.2 billion (+9.8%). Growth was driven by increases in commercial, commercial real estate, and residential real estate loan balances.

• Quarterly average loan balances, excluding purchased credit-impaired loans, increased $1.3 billion.

• Our average yield on loans, excluding accretion on loans acquired in bank mergers, was 4.09%, 20 basis points higher than in the prior year. This increase was driven by several Federal Reserve interest rate increases in 2016 and 2017.

Deposits

• Low-cost deposits increased $416.9 million (+3.4%) to $12.5 billion. Growth was driven by a $411.8 million increase in money market and NOW accounts.

• Quarterly average low-cost deposits increased $244.6 million.

• Average cost of total deposits increased eight basis points to 0.28%.

Net interest margin

• Our net interest margin on a fully tax equivalent basis, excluding accretion on loans acquired in bank mergers, increased three basis points to 3.52%. This increase was due to a favorable change in the mix of interest earning assets and higher loan yields partly offset by increased funding costs and an unfavorable shift in the mix of liabilities.

• Average cost of funds increased 16 basis points to 0.43%.

2

Key Items - Fourth Quarter (compared to third quarter of 2017)

Operating Earnings

• Operating earnings decreased $15.4 million, or 24.5%, to $47.4 million compared to the prior quarter. This decrease resulted from the following items, net of income taxes:

• a $2.1 million decrease in net interest income due to lower yields on interest earning assets and a higher cost of funds;

• a $3.4 million decrease in mortgage banking revenue due to lower origination and servicing fees;

• a $3.1 million increase in core non-interest expense due to higher occupancy and equipment expense, computer services and telecommunication, professional and legal, and other operating expenses; and

• a $2.1 million increase in state income tax accruals as a result of income allocation to high income tax rate jurisdictions. Prior quarter operating earnings included tax benefits of $4.0 million due to the impact of the Illinois state income tax rate increase and a reduction in tax accruals attributable to compensation.

• The $3.1 million after-tax increase in core non-interest expense includes $511 thousand of after-tax expenses from additional mortgage banking operations acquired in December 2017 (see the "Operating Segments - Mortgage Banking Segment" section for further information). In addition, it includes approximately $1.6 million of after-tax expenses that are not expected to repeat in the first quarter of 2018. See the Non-interest Expense section for further information on the run-rate of non-interest expense.

• Diluted operating earnings per common share were $0.53 compared to $0.72 in the prior quarter.

Loans

• Loans, excluding purchased credit-impaired loans, increased $92.9 million (+0.7%, or +2.7% annualized) to $13.8 billion due to growth in lease loan and commercial real estate loan balances.

• Average loan balances, excluding purchased credit-impaired loans, increased $177.8 million due to an increase in commercial real estate loans.

• Average yield on loans, excluding accretion on loans acquired in bank mergers, was 4.17%, unchanged from the prior quarter.

Deposits

• Low-cost deposits increased $472.6 million in the quarter (+3.9%, or +15.6% annualized) to $12.5 billion. Growth was driven by a $280.4 million increase (+4.6%, or +18.2% annualized) in non-interest bearing deposits as well as a $112.7 million increase (+2.3%, or +9.2% annualized) in money market and NOW accounts.

• Average low-cost deposits increased $295.4 million.

• Average cost of total deposits increased six basis points to 0.36% due to increases in interest rates paid on deposits and an unfavorable shift in the mix of deposits. Average low-cost deposits decreased to 83% of total deposits in the fourth quarter 2017 compared to 84% in the prior quarter.

Net interest margin

• Net interest margin on a fully tax equivalent basis, excluding accretion on loans acquired in bank mergers, decreased seven basis points in the quarter to 3.49%. Approximately three basis points of the decrease was due to the Company maintaining higher interest earning cash balances during the quarter in anticipation of redeeming our 8% non-cumulative perpetual preferred stock and pre-paying our term note. Two basis points of the decrease was due to increased deposit costs and an unfavorable shift in the mix of deposits, and two basis points related to the new subordinated debt issued in November 2017.

• Average cost of funds increased five basis points to 0.51%.

• The TCJ Act corporate tax rate, effective in 2018, is expected to decrease our taxable equivalent net interest margin by approximately six basis points.  The expected decrease is caused by a lower tax benefit on municipal securities and tax exempt loans.

Guidance for 2018 on selected financial items:

We expect:

• outstanding loans to grow in the mid to high single digits (percent) for the year.

• net interest margin for the first quarter of 2018, excluding accretion on bank merger loans and inclusive of the six basis point decrease due to the TJC Act, to moderately increase from the fourth quarter of 2017, which was 3.49%.

• non-interest expense, excluding commissions, to grow in the low single digits (percent) from the fourth quarter 2017 run-rate found on page 23.

• annual operating earnings for the Mortgage Banking Segment to be between $8 to $12 million. The first and fourth quarters of the year are typically the slowest for mortgage banking activity.

• our effective tax rate in 2018 to be approximately 24%.

3

Operating Segments

The Company has three reportable operating segments: Banking, Leasing, and Mortgage Banking. Our Banking Segment generates revenues primarily from its lending, deposit gathering, and fee business activities. Our Leasing Segment generates revenues through lease originations and related services. Our Mortgage Banking Segment originates residential mortgage loans for sale to investors through its retail and third-party origination channels as well as residential mortgage loans held in our loan portfolio. The Mortgage Banking Segment also services residential mortgage loans owned by investors and the Company. The financial information below was adjusted for funds transfer pricing and internal allocations of certain expenses and excludes non-core non-interest income and expense.

Banking Segment

The following table summarizes certain financial information for the Banking Segment for the periods presented (in thousands):

											Year Ended
											December 31,
	4Q17		3Q17		2Q17		1Q17		4Q16		2017		2016
Net interest income	$	140,180	$	142,888	$	135,982	$	131,449	$	133,688	$	550,499	$	475,133
Provision for credit losses	501		3,637		8,890		3,527		4,193		16,555		18,583
Net interest income after provision for credit losses	139,679		139,251		127,092		127,922		129,495		533,944		456,550
Non-interest income:
Lease financing revenue, net	1,795		1,097		1,326		1,545		1,050		5,763		3,408
Treasury management fees	15,234		14,508		14,499		14,689		14,237		58,930		50,620
Trust and asset management fees	9,024		8,702		8,498		8,520		8,442		34,744		32,872
Card fees	5,032		4,585		4,413		4,566		4,340		18,596		16,071
Capital markets and international banking fees	3,999		4,870		3,586		3,253		4,021		15,708		13,332
Other non-interest income	9,359		10,940		9,655		9,306		9,314		39,260		35,899
Total non-interest income	44,443		44,702		41,977		41,879		41,404		173,001		152,202
Non-interest expense:
Salaries and employee benefits expense:
Salaries	44,782		45,096		44,019		42,120		42,797		176,017		151,850
Commissions	1,119		877		1,121		1,107		1,090		4,224		5,082
Bonus and stock-based compensation	10,418		10,032		10,603		10,619		9,535		41,672		37,416
Other salaries and benefits (1)	14,119		14,604		12,698		13,705		13,920		55,126		50,567
Total salaries and employee benefits expense	70,438		70,609		68,441		67,551		67,342		277,039		244,915
Occupancy and equipment expense	13,769		12,372		12,298		12,117		12,765		50,556		45,480
Computer services and telecommunication expense	9,664		8,386		7,976		7,514		8,813		33,540		29,622
Professional and legal expense	1,967		1,239		1,455		1,600		1,281		6,261		6,718
Other operating expenses	18,817		16,757		18,793		18,255		17,430		72,622		66,054
Total non-interest expense	114,655		109,363		108,963		107,037		107,631		440,018		392,789
Income before income taxes	69,467		74,590		60,106		62,764		63,268		266,927		215,963
Income tax expense	25,734		20,064		18,915		17,168		19,422		81,881		64,989
Operating earnings	$	43,733	$	54,526	$	41,191	$	45,596	$	43,846	$	185,046	$	150,974
Total assets (period end)	$	16,448,960	$	16,406,714	$	16,320,111	$	16,009,339	$	16,368,881	$	16,448,960	$	16,368,881

⁽¹⁾  Includes health insurance, payroll taxes, 401(k) and profit sharing contributions, overtime, and temporary help expenses.

Banking Segment operating earnings for the fourth quarter of 2017 decreased $10.8 million compared to the prior quarter.

• Net interest income decreased due to lower yields on interest earning assets and a higher cost of funds. A $1.8 million decrease in accretion on loans acquired in bank mergers contributed to decreased yields on interest earning assets.

• Provision for credit losses decreased as a result of strong credit performance in 2017. Downward loan risk rating migrations in 2017 were below our historical average, and, as a result, reduced our estimated default probabilities.

• Non-interest income was relatively flat with lower capital markets and international banking fees (mainly swap fees) and a decrease in earnings from investments in Small Business Investment Companies ("SBICs") offset by increases in treasury management and card fees (prepaid and credit cards).

• Non-interest expense increased by $5.3 million compared to the prior quarter. Approximately $2.6 million of these expenses are not expected to repeat in the first quarter of 2018.

• Occupancy and equipment expense increased due to higher building expenses and depreciation related to an investment in infrastructure. Prior quarter expense was positively impacted by a favorable $500 thousand increase in subtenant rent.

4

• Computer services and telecommunication expense increased due to investments in new technology. Approximately $500 thousand of this expense during the quarter in not expected to repeat next quarter.

• Professional and legal expense increased due to greater risk management consulting expense. Approximately $400 thousand of this expense during the quarter in not expected to repeat next quarter.

• Other operating expenses increased due to higher travel, postage, and operating losses. Prior quarter expenses were positively impacted by lower advertising and audit expenses of about $800 thousand in the aggregate.

• Fourth quarter income tax expense includes a $2.1 million increase in state income tax accruals as a result of income allocation to high income tax rate jurisdictions. The prior quarter includes tax benefits of $4.0 million due to the impact of a State of Illinois income tax rate increase and a reduction in compensation related tax accruals.

Banking Segment operating earnings for the year ended December 31, 2017 increased $34.1 million compared to the prior year and were positively impacted by strong loan growth, improvements in nearly all key fee initiatives, as well as our merger with American Chartered completed in the third quarter of 2016.

Leasing Segment

The following table summarizes certain financial information for the Leasing Segment for the periods presented (in thousands):

														Year Ended
														December 31,
	4Q17			3Q17		2Q17		1Q17			4Q16			2017		2016
Net interest income	$	2,602		$	2,686	$	2,345	$	2,269		$	2,413		$	9,902	$	9,415
Provision for credit losses	3,184			399		410		(135		)	(1,750		)	3,858		295
Net interest income after provision for credit losses	(582		)	2,287		1,935		2,404			4,163			6,044		9,120
Non-interest income:
Lease financing revenue, net	22,576			22,534		17,474		20,253			19,005			82,837		70,265
Other non-interest income	1,168			26		676		1,173			754			3,043		3,164
Total non-interest income	23,744			22,560		18,150		21,426			19,759			85,880		73,429
Non-interest expense:
Salaries and employee benefits expense:
Salaries	5,361			5,029		4,623		4,810			4,811			19,823		17,413
Commissions	2,777			2,328		2,115		2,572			1,038			9,792		6,867
Bonus and stock-based compensation	1,761			1,228		1,045		955			1,516			4,989		4,167
Other salaries and benefits (1)	1,329			1,572		1,523		1,581			1,317			6,005		5,332
Total salaries and employee benefits expense	11,228			10,157		9,306		9,918			8,682			40,609		33,779
Occupancy and equipment expense	1,090			1,070		1,011		944			929			4,115		3,737
Computer services and telecommunication expense	595			456		431		458			483			1,940		1,709
Professional and legal expense	457			403		392		399			652			1,651		2,277
Other operating expenses	2,101			2,412		2,266		2,088			1,714			8,867		6,874
Total non-interest expense	15,471			14,498		13,406		13,807			12,460			57,182		48,376
Income before income taxes	7,691			10,349		6,679		10,023			11,462			34,742		34,173
Income tax expense	3,229			4,307		2,525		4,119			4,653			14,180		13,525
Operating earnings	$	4,462		$	6,042	$	4,154	$	5,904		$	6,809		$	20,562	$	20,648
Total assets (period end)	$	1,403,690		$	1,307,459	$	1,275,386	$	1,173,558		$	1,224,169		$	1,403,690	$	1,224,169

⁽¹⁾  Includes health insurance, payroll taxes, 401(k) and profit sharing contributions, overtime, and temporary help expenses.

Leasing Segment operating earnings for the fourth quarter of 2017 decreased $1.6 million compared to the prior quarter.

• Provision for credit losses increased due to greater loan charge-offs.

• Non-interest expense increased due to higher commission and bonus expense.

• Total assets increased due to growth in loans and lease investments.

Leasing Segment operating earnings for the year ended December 31, 2017 were about the same as the prior year. The increase in lease financing revenue was mostly offset by an increase in provision for credit losses as well as salaries and benefits expense.

• Lease financing revenue increased as a result of higher rental income due to increased operating leases, fees from the sale of third-party equipment maintenance contracts driven by contract renewals, consulting revenue, and promotional income.

• Provision for credit losses was higher due to increased loan charge-offs.

• Non-interest expense increased due to higher salaries and employee benefits expense (increased salaries related to the investment in sales and other revenue generating staff and increased commissions due to higher lease financing revenues) and an increase in other operating expenses.

5

Mortgage Banking Segment

In December 2017, we closed on an agreement with Champaign, Illinois-based Busey Bank ("Busey") to transfer approximately 165 residential mortgage team members from Busey to our company for approximately $3.6 million. This acquisition adds direct origination capabilities as well as 14 retail mortgage locations across Kansas, Missouri, Nebraska, Iowa and Colorado. The added retail and consumer direct staff supports our strategy to grow those channels and increase our purchase share of originations. Non-interest expenses include approximately $850 thousand during the fourth quarter of 2017 as a result of this acquisition, and additional revenue was negligible as the pipeline was being established.

The following table summarizes certain financial information for the Mortgage Banking Segment for the periods presented (in thousands):

												Year Ended
												December 31,
	4Q17			3Q17		2Q17		1Q17		4Q16		2017		2016
Net interest income	$	10,611		$	11,373	$	10,667	$	9,325	$	9,113	$	41,976	$	33,343
Provision for credit losses	(42		)	481		399		342		179		1,180		685
Net interest income after provision for credit losses	10,653			10,892		10,268		8,983		8,934		40,796		32,658
Non-interest income:
Mortgage origination fees	17,642			21,980		23,283		21,465		29,317		84,370		117,590
Mortgage servicing fees	4,228			5,595		6,216		6,314		2,960		22,353		30,879
Other non-interest income	—			1		—		—		—		1		(3		)
Total non-interest income	21,870			27,576		29,499		27,779		32,277		106,724		148,466
Non-interest expense:
Salaries and employee benefits expense:
Salaries	12,322			11,867		11,247		11,881		12,945		47,317		49,441
Commissions	4,407			6,001		6,494		4,932		8,178		21,834		28,974
Bonus and stock-based compensation	1,153			651		905		716		1,116		3,425		5,092
Other salaries and benefits (1)	4,705			4,746		4,952		4,978		5,786		19,381		23,633
Total salaries and employee benefits expense	22,587			23,265		23,598		22,507		28,025		91,957		107,140
Occupancy and equipment expense	1,868			1,940		1,969		1,979		1,900		7,756		7,706
Computer services and telecommunication expense	1,779			1,734		1,701		1,663		1,910		6,877		7,622
Professional and legal expense	490			467		600		595		418		2,152		1,847
Other operating expenses	7,169			7,376		7,886		7,238		6,971		29,669		25,351
Total non-interest expense	33,893			34,782		35,754		33,982		39,224		138,411		149,666
Income before income taxes	(1,370		)	3,686		4,013		2,780		1,987		9,109		31,458
Income tax (benefit) expense	(555		)	1,469		1,600		1,101		795		3,615		12,583
Operating (loss) earnings	$	(815	)	$	2,217	$	2,413	$	1,679	$	1,192	$	5,494	$	18,875
Total assets (period end)	$	2,234,290		$	2,402,362	$	2,369,560	$	1,963,165	$	1,709,267	$	2,234,290	$	1,709,267

⁽¹⁾  Includes health insurance, payroll taxes, 401(k) and profit sharing contributions, overtime, and temporary help expenses.

Mortgage Banking Segment operating earnings for the fourth quarter of 2017 decreased $3.0 million compared to the prior quarter.

• Net interest income decreased due to lower average balances and yields on loans held for sale.

• Mortgage origination fees decreased as a result of lower origination volume and lower gain on sale margin.

• Mortgage servicing fees declined due to an increase in amortization and prepayments of mortgage servicing rights and a loss on fair value changes of mortgage servicing rights net of the related economic hedge activity. Nearly $800 thousand of this loss was due to an increase in delinquencies in the fourth quarter of 2017 resulting in higher anticipated collection costs and lower mortgage servicing rights asset value.

• Salaries and employee benefits expense decreased due to lower commissions (lower origination volume and commission rates) partly offset by higher salaries as a result of the increase in staff from the Busey staff transfer.

Mortgage Banking Segment operating earnings for the year ended December 31, 2017 decreased $13.4 million compared to the prior year.

• Net interest income increased due to earnings on higher average balances of loans held for investment.

• Mortgage origination revenue decreased due to lower mortgage origination volume and lower gain on sale margin.

• Mortgage servicing revenue decreased as mortgage servicing revenue for the year ended December 31, 2016 was positively impacted by fair value changes of mortgage servicing rights net of the related economic hedge activity of $14.7 million.

• Non-interest expense decreased due to lower salaries and employee benefits expense as a result of lower commission and overtime expenses attributable to a decrease in origination volume, lower bonus expense, and a decline in the number of employees (excluding the staff transferred from Busey).

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Additional Mortgage Banking Segment Data

The following table presents additional information regarding the Mortgage Banking Segment (dollars in thousands):

																Year Ended
																December 31,
	4Q17			3Q17			2Q17			1Q17			4Q16			2017			2016
Mortgage origination revenue:
Gain on sale revenue, net (A)	$	13,376		$	17,098		$	18,000		$	15,607		$	23,576		$	64,081		$	100,097
Origination fees	4,266			4,882			5,283			5,858			5,741			20,289			17,493
Total mortgage origination revenue	$	17,642		$	21,980		$	23,283		$	21,465		$	29,317		$	84,370		$	117,590
Mortgage servicing revenue:
Servicing fees	$	14,802		$	14,531		$	14,065		$	13,735		$	12,610		$	57,133		$	46,575
Amortization/prepayment of mortgage servicing rights (1)	(9,037		)	(8,399		)	(7,822		)	(6,743		)	(8,777		)	(32,001		)	(30,431		)
Fair value changes of mortgage servicing rights	7,231			4,475			(6,195		)	4,083			65,006			9,594			26,646
Economic hedge activity, net	(8,768		)	(5,012		)	6,168			(4,761		)	(65,879		)	(12,373		)	(11,911		)
Fair value changes of mortgage servicing rights net of economic hedge activity (1)	(1,537		)	(537		)	(27		)	(678		)	(873		)	(2,779		)	14,735
Total mortgage servicing revenue	$	4,228		$	5,595		$	6,216		$	6,314		$	2,960		$	22,353		$	30,879
Mortgage servicing rights, at fair value:
Beginning balance	$	261,446		$	249,688		$	251,498		$	238,011		$	154,730		$	238,011		$	168,162
Originations/purchases	16,639			15,682			12,207			16,147			27,052			60,675			73,634
Amortization/prepayment (2)	(9,037		)	(8,399		)	(7,822		)	(6,743		)	(8,777		)	(32,001		)	(30,431		)
Fair value changes	7,231			4,475			(6,195		)	4,083			65,006			9,594			26,646
Ending balance	$	276,279		$	261,446		$	249,688		$	251,498		$	238,011		$	276,279		$	238,011
Mortgage servicing book (unpaid principal balance of loans serviced for others)	$	21,993,128		$	21,380,397		$	20,823,016		$	20,450,217		$	19,683,073		$	21,993,128		$	19,683,073
Mortgage servicing rights valuation	1.26		%	1.22		%	1.20		%	1.23		%	1.21		%	1.26		%	1.21		%
Loans funded:
For sale	$	1,200,460		$	1,307,329		$	1,248,544		$	1,073,357		$	1,933,208		$	4,829,690		$	6,625,971
For investment	33,766			95,495			233,314			212,745			121,198			575,320			442,657
Loans funded by purpose:
Refinance	39		%	30		%	30		%	41		%	56		%	35		%	49		%
Purchase	61			70			70			59			44			65			51
Loans funded by channel:
Retail	24		%	26		%	27		%	23		%	21		%	25		%	21		%
Third party	76			74			73			77			79			75			79
Originated for sale mortgage volume (3) (B)	$	1,074,775		$	1,265,240		$	1,299,706		$	1,061,173		$	1,419,871		$	4,700,894		$	6,553,261
Gain on sale margin (A)/(B)	1.24		%	1.35		%	1.38		%	1.47		%	1.66		%	1.36		%	1.53		%

⁽¹⁾  Approximately $800 thousand of the fourth quarter 2017 fair value change was due to an increase in delinquencies in the fourth quarter of 2017 resulting in higher anticipated collection costs and lower mortgage servicing rights asset value.

⁽²⁾  Changes due to collection or realization of expected cash flows.

⁽³⁾  Includes change in mortgage rate lock commitments expected to close, change in loans held for sale and loans sold to investors during the period.

7

FORWARD-LOOKING STATEMENTS

When used in this document and in reports filed with or furnished to the Securities and Exchange Commission (the "SEC"), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “guidance,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. These statements may relate to our future financial performance, strategic plans or objectives, revenues or earnings projections, or other financial items. By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements.

Important factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: (1) the possibility that the actual reduction in our effective tax rate expected to result from Tax Cut and Jobs Act of 2017 might be different from the estimated reduction set forth in this document; (2) the risk that funds obtained from capital raising activities will not be utilized efficiently or effectively; (3) expected revenues, cost savings, synergies, and other benefits from our merger and acquisition activities (including our merger with American Chartered Bancorp, Inc. in 2016) might not be realized within the expected time frames or at all and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected; (4) the credit risks of lending activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan and lease losses, which could necessitate additional provisions for loan losses, resulting both from originated loans and loans acquired from other financial institutions; (5) the quality and composition of our securities portfolio; (6) competitive pressures among depository institutions; (7) interest rate movements and their impact on customer behavior, net interest margin and the value of our mortgage servicing rights; (8) the possibility that our mortgage banking business may experience increased volatility in its revenues and earnings and the possibility that the profitability of our mortgage banking business could be significantly reduced if we are unable to originate and sell mortgage loans at profitable margins or if changes in interest rates negatively impact the value of our mortgage servicing rights; (9) the impact of repricing and competitors’ pricing initiatives on loan and deposit products; (10) fluctuations in real estate values; (11) results of examinations of us and our bank subsidiary by regulatory authorities and the possibility that any such regulatory authority may, among other things, limit our business activities, require us to change our business mix, increase our allowance for loan and lease losses, write-down asset values or increase our capital levels, or affect our ability to borrow funds or maintain or increase deposits, which could adversely affect our liquidity and earnings; (12) our ability to adapt successfully to technological changes to meet customers’ needs and developments in the market place; (13) the possibility that security measures implemented might not be sufficient to mitigate the risk of a cyber attack or cyber theft, and that such security measures might not protect against systems failures or interruptions; (14) our ability to realize the residual values of our direct finance, leveraged and operating leases; (15) our ability to access cost-effective funding; (16) changes in financial markets; (17) changes in economic conditions in general and in the Chicago metropolitan area in particular; (18) the costs, effects and outcomes of litigation; (19) new legislation or regulatory changes, including but not limited to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and regulations adopted thereunder, changes in capital requirements pursuant to the Dodd-Frank Act, changes in the interpretation and/or application of laws and regulations by regulatory authorities, other governmental initiatives affecting the financial services industry and changes in federal and/or state tax laws, including but not limited to the Tax Cut and Jobs Act of 2017, or interpretations thereof by taxing authorities; (20) changes in accounting principles, policies or guidelines; (21) our future acquisitions of other depository institutions or lines of business; and (22) future goodwill impairment due to changes in our business, changes in market conditions, or other factors.

We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

TABLES TO FOLLOW

8

CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands)	12/31/2017			9/30/2017			6/30/2017			3/31/2017			12/31/2016
ASSETS
Cash and due from banks	$	397,880		$	361,080		$	348,550		$	368,078		$	364,783
Interest earning deposits with banks	181,341			82,636			115,707			102,328			98,686
Total cash and cash equivalents	579,221			443,716			464,257			470,406			463,469
Investment securities:
Securities available for sale, at fair value	1,408,326			1,497,543			1,567,071			1,657,950			1,696,195
Securities held to maturity, at amortized cost	959,082			994,238			1,022,912			1,056,008			1,069,750
Non-marketable securities - FHLB and FRB Stock	114,111			152,345			160,204			144,427			143,276
Total investment securities	2,481,519			2,644,126			2,750,187			2,858,385			2,909,221
Loans held for sale	548,578			722,754			718,916			493,261			716,883
Loans:
Total loans, excluding purchased credit-impaired loans	13,846,318			13,753,459			13,465,064			12,789,667			12,605,726
Purchased credit-impaired loans	119,744			131,919			149,077			168,814			163,077
Total loans	13,966,062			13,885,378			13,614,141			12,958,481			12,768,803
Less: Allowance for loan and lease losses	157,710			159,128			154,033			144,170			139,366
Net loans	13,808,352			13,726,250			13,460,108			12,814,311			12,629,437
Lease investments, net	409,051			371,541			346,036			315,523			311,327
Premises and equipment, net	286,690			286,482			288,148			290,767			293,910
Cash surrender value of life insurance	203,602			204,855			203,534			202,233			200,945
Goodwill	1,003,548			999,925			999,925			999,925			1,001,038
Other intangibles	54,766			56,745			58,783			60,869			62,959
Mortgage servicing rights, at fair value	276,279			261,446			249,688			251,498			238,011
Other real estate owned, net	9,736			13,020			11,063			14,706			26,279
Other real estate owned related to FDIC transactions	4,788			4,817			4,849			3,864			5,006
Other assets	420,810			380,858			409,563			370,314			443,832
Total assets	$	20,086,940		$	20,116,535		$	19,965,057		$	19,146,062		$	19,302,317
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Non-interest bearing	$	6,381,512		$	6,101,159		$	6,388,292		$	6,211,173		$	6,408,169
Interest bearing	8,576,866			8,313,985			7,873,527			7,788,210			7,702,279
Total deposits	14,958,378			14,415,144			14,261,819			13,999,383			14,110,448
Short-term borrowings	861,039			1,865,415			1,993,358			1,550,628			1,569,288
Long-term borrowings	505,158			405,715			330,160			315,618			311,790
Junior subordinated notes issued to capital trusts	211,494			211,289			211,085			210,769			210,668
Accrued expenses and other liabilities	541,048			526,880			520,355			453,236			520,914
Total liabilities	17,077,117			17,424,443			17,316,777			16,529,634			16,723,108
Stockholders' Equity
Preferred stock	309,999			115,280			115,572			115,572			115,572
Common stock	858			858			857			857			856
Additional paid-in capital	1,691,007			1,685,971			1,681,252			1,675,956			1,678,826
Retained earnings	1,065,303			940,948			899,930			875,295			838,892
Accumulated other comprehensive income	3,584			9,772			10,520			8,415			5,190
Treasury stock	(60,928		)	(60,737		)	(59,851		)	(59,667		)	(60,384		)
Controlling interest stockholders' equity	3,009,823			2,692,092			2,648,280			2,616,428			2,578,952
Non-controlling interest	—			—			—			—			257
Total stockholders' equity	3,009,823			2,692,092			2,648,280			2,616,428			2,579,209
Total liabilities and stockholders' equity	$	20,086,940		$	20,116,535		$	19,965,057		$	19,146,062		$	19,302,317

9

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

																Year Ended
																December 31,
(Dollars in thousands, except per share data)	4Q17			3Q17			2Q17			1Q17			4Q16			2017			2016
Interest income:
Loans:
Taxable	$	154,631		$	155,440		$	143,426		$	133,737		$	134,048		$	587,234		$	467,877
Nontaxable	2,362			2,632			2,791			2,880			2,947			10,665			11,120
Investment securities:
Taxable	7,696			8,440			8,717			9,122			9,362			33,975			35,571
Nontaxable	9,677			9,731			9,837			9,973			10,220			39,218			42,022
Other interest earning accounts and Federal funds sold	600			327			228			199			157			1,354			587
Total interest income	174,966			176,570			164,999			155,911			156,734			672,446			557,177
Interest expense:
Deposits	13,552			10,865			8,793			7,475			7,324			40,685			25,579
Short-term borrowings	3,257			5,148			3,912			2,380			1,472			14,697			4,195
Long-term borrowings and junior subordinated notes	4,764			3,610			3,300			3,013			2,724			14,687			9,512
Total interest expense	21,573			19,623			16,005			12,868			11,520			70,069			39,286
Net interest income	153,393			156,947			148,994			143,043			145,214			602,377			517,891
Provision for credit losses	3,643			4,517			9,699			3,734			2,622			21,593			19,563
Net interest income after provision for credit losses	149,750			152,430			139,295			139,309			142,592			580,784			498,328
Non-interest income:
Mortgage banking revenue	21,870			27,575			29,499			27,779			32,277			106,723			148,469
Lease financing revenue, net	23,620			23,148			18,401			21,418			19,868			86,587			73,486
Treasury management fees	15,234			14,508			14,499			14,689			14,237			58,930			50,620
Trust and asset management fees	9,024			8,702			8,498			8,520			8,442			34,744			32,872
Card fees	5,032			4,585			4,413			4,566			4,340			18,596			16,071
Capital markets and international banking service fees	3,999			4,870			3,586			3,253			4,021			15,708			13,332
Consumer and other deposit service fees	3,261			3,424			3,285			3,363			3,563			13,333			13,308
Brokerage fees	942			1,004			1,250			1,125			887			4,321			4,654
Loan service fees	2,197			2,114			2,037			1,969			1,952			8,317			7,457
Increase in cash surrender value of life insurance	1,511			1,321			1,301			1,288			1,316			5,421			4,075
Net gain on investment securities	111			83			137			231			178			562			447
Net loss on disposal of other assets	(2,016		)	(180		)	(4		)	(123		)	(749		)	(2,323		)	(794		)
Other operating income	4,534			4,110			3,615			3,695			2,491			15,954			10,906
Total non-interest income	89,319			95,264			90,517			91,773			92,823			366,873			374,903
Non-interest expense:
Salaries and employee benefits expense	109,247			105,815			102,566			101,551			108,428			419,179			400,501
Occupancy and equipment expense	16,846			15,382			15,284			15,044			15,689			62,556			57,130
Computer services and telecommunication expense	11,304			10,062			9,785			9,440			11,800			40,591			43,468
Advertising and marketing expense	3,271			2,558			3,245			3,161			3,045			12,235			11,971
Professional and legal expense	2,957			2,109			2,450			2,691			2,509			10,207			12,879
Other intangible amortization expense	1,979			2,038			2,086			2,090			2,388			8,193			7,305
Branch exit and facilities impairment charges	(327		)	2,773			6,589			(682		)	—			8,353			(2,709		)
Net (gain) loss recognized on other real estate owned and other related expense	(104		)	(86		)	690			844			(790		)	1,344			(1,599		)
Other operating expenses	30,151			21,643			22,864			21,526			22,691			96,184			90,905
Total non-interest expense	175,324			162,294			165,559			155,665			165,760			658,842			619,851
Income before income taxes	63,745			85,400			64,253			75,417			69,655			288,815			253,380
Income tax (benefit) expense	(80,449		)	24,557			19,787			20,880			22,464			(15,225		)	79,244
Net income	144,194			60,843			44,466			54,537			47,191			304,040			174,136
Dividends on preferred shares	2,000			2,002			2,002			2,003			2,005			8,007			8,009
Net income available to common stockholders	$	142,194		$	58,841		$	42,464		$	52,534		$	45,186		$	296,033		$	166,127

10

											Year Ended
											December 31,
	4Q17		3Q17		2Q17		1Q17		4Q16		2017		2016
Common share data:
Basic earnings per common share	$	1.69	$	0.70	$	0.51	$	0.63	$	0.54	$	3.53	$	2.16
Diluted earnings per common share	1.67		0.69		0.50		0.62		0.53		3.49		2.13
Weighted average common shares outstanding for basic earnings per common share	83,946,637		83,891,175		83,842,963		83,662,430		83,484,899		83,836,732		76,968,823
Weighted average common shares outstanding for diluted earnings per common share	84,964,759		84,779,797		84,767,414		84,778,130		84,674,181		84,823,456		77,976,121
Common shares outstanding (at end of period)	83,917,892		83,887,097		83,869,517		83,832,648		83,725,269		83,917,892		83,725,269

SELECTED FINANCIAL DATA

																Year Ended
																December 31,
	4Q17			3Q17			2Q17			1Q17			4Q16			2017			2016
Performance Ratios:
Annualized return on average assets	2.84		%	1.21		%	0.92		%	1.16		%	0.98		%	1.55		%	1.03		%
Annualized operating return on average assets (1)	0.93			1.25			0.99			1.13			1.07			1.08			1.13
Annualized return on average common equity	21.87			9.17			6.78			8.62			7.36			11.71			7.69
Annualized operating return on average common equity (1)	6.98			9.47			7.31			8.39			8.12			8.03			8.44
Annualized cash return on average tangible common equity (2)	36.90			15.81			11.94			15.27			13.22			20.23			13.06
Annualized cash operating return on average tangible common equity (3)	12.00			16.32			12.83			14.88			14.54			13.99			14.31
Efficiency ratio (4)	65.31			61.14			64.19			63.99			64.62			63.63			64.02
Annualized net non-interest expense to average assets (5)	1.44			1.25			1.40			1.35			1.35			1.36			1.27
Core non-interest income to revenues (6)	36.05			36.75			36.60			37.87			38.15			36.81			40.77
Net interest margin - fully tax equivalent basis (7)	3.63			3.76			3.71			3.69			3.65			3.70			3.70
Net interest margin - fully tax equivalent basis excluding acquisition accounting discount accretion on bank merger loans (8)	3.49			3.56			3.54			3.50			3.45			3.52			3.49
Cost of funds (9)	0.51			0.46			0.39			0.33			0.28			0.43			0.27
Loans to deposits	93.37			96.32			95.46			92.56			90.49			93.37			90.49
Asset Quality Ratios:
Non-performing loans (10) to total loans	0.55		%	0.36		%	0.38		%	0.38		%	0.46		%	0.55		%	0.46		%
Non-performing assets (10) to total assets	0.43			0.32			0.32			0.34			0.45			0.43			0.45
Allowance for loan and lease losses to non-performing loans (10)	205.33			314.39			295.07			293.02			234.81			205.33			234.81
Allowance for loan and lease losses to total loans	1.13			1.15			1.13			1.11			1.09			1.13			1.09
Net loan charge-offs (recoveries) to average loans, excluding loans held for sale (annualized)	0.16			(0.02		)	(0.00		)	(0.03		)	0.10			0.03			0.09
Capital Ratios:
Tangible equity to tangible assets (11)	10.32		%	8.68		%	8.51		%	8.71		%	8.42		%	10.32		%	8.42		%
Tangible common equity to tangible assets (12)	8.70			8.07			7.90			8.07			7.79			8.70			7.79
Tangible common equity to risk weighted assets (13)	9.71			8.99			8.90			9.07			8.80			9.71			8.80
Total capital to risk-weighted assets (14)	14.23			11.67			11.60			11.80			11.63			14.23			11.63
Tier 1 capital to risk-weighted assets (14)	11.20			9.46			9.37			9.54			9.40			11.20			9.40
Common equity tier 1 capital to risk-weighted assets (14)	9.40			8.80			8.70			8.84			8.72			9.40			8.72
Tier 1 capital to average assets (leverage ratio) (14)	10.02			8.59			8.60			8.58			8.38			10.02			8.38
Per Share Data:
Book value per common share (15)	$	32.17		$	30.72		$	30.20		$	29.83		$	29.43		$	32.17		$	29.43
Less: goodwill and other intangible assets, net of benefit, per common share	12.44			12.36			12.38			12.40			12.45			12.44			12.45
Tangible book value per common share (16)	$	19.73		$	18.36		$	17.82		$	17.43		$	16.98		$	19.73		$	16.98
Cash dividends per common share	$	0.21		$	0.21		$	0.21		$	0.19		$	0.19		$	0.82		$	0.74

⁽¹⁾  Annualized operating return on average assets is computed by dividing annualized operating earnings by average total assets. Annualized operating return on average common equity is computed by dividing annualized operating earnings by average common equity. Operating earnings is defined as net income as reported less non-core items, net of tax.

11

⁽²⁾  Annualized cash return on average tangible common equity is computed by dividing net cash flow available to common stockholders (net income available to common stockholders, plus other intangibles amortization expense, net of tax benefit) by average tangible common equity (average common stockholders' equity less average goodwill and average other intangibles, net of tax benefit).

⁽³⁾  Annualized cash operating return on average tangible common equity is computed by dividing annualized cash operating earnings (operating earnings plus other intangibles amortization expense, net of tax benefit, less dividends on preferred shares) by average tangible common equity. Operating earnings is defined as net income as reported less non-core items, net of tax.

⁽⁴⁾  Equals total non-interest expense excluding non-core items divided by the sum of net interest income on a fully tax equivalent basis, total non-interest income less non-core items, and tax equivalent adjustment on the increase in cash surrender value of life insurance.

⁽⁵⁾  Equals total non-interest expense excluding non-core items less total non-interest income excluding non-core items, and including tax equivalent adjustment on the increase in cash surrender value of life insurance divided by average assets.

⁽⁶⁾  Equals total non-interest income excluding non-core items and tax equivalent adjustment on the increase in cash surrender value of life insurance divided by the sum of net interest income on a fully tax equivalent basis, total non-interest income less non-core items, and tax equivalent adjustment on the increase in cash surrender value of life insurance.

⁽⁷⁾  Represents net interest income on a fully tax equivalent basis assuming a 35% tax rate, as a percentage of average interest earning assets.

⁽⁸⁾  Represents net interest income on a fully tax equivalent basis assuming a 35% tax rate, excluding acquisition accounting discount accretion on bank merger loans as a percentage of average interest earning assets.

⁽⁹⁾  Equals total interest expense divided by the sum of average interest bearing liabilities and non-interest bearing deposits.

⁽¹⁰⁾  Non-performing loans excludes purchased credit-impaired loans and loans held for sale.  Non-performing assets excludes purchased credit-impaired loans, loans held for sale, and other real estate owned related to FDIC transactions.

⁽¹¹⁾  Equals total ending stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by total assets less goodwill and other intangibles, net of tax benefit.

⁽¹²⁾  Equals total ending common stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by total assets less goodwill and other intangibles, net of tax benefit.

⁽¹³⁾  Equals total ending common stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by risk-weighted assets. Current quarter risk-weighted assets are estimated.

⁽¹⁴⁾  Current quarter ratios are estimated.

⁽¹⁵⁾  Equals total ending common stockholders’ equity divided by common shares outstanding.

⁽¹⁶⁾  Equals total ending common stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by common shares outstanding.

BALANCE SHEET DETAILS TO FOLLOW

12

INVESTMENT SECURITIES

The following table sets forth, by type, the carrying value of our investment securities, excluding FHLB and FRB stock, as well as the unrealized gain, net of our investment securities available for sale as of the dates indicated (in thousands):

	12/31/2017			9/30/2017			6/30/2017			3/31/2017			12/31/2016
Securities available for sale:
Fair value
Government sponsored agencies and enterprises	$	23,007		$	23,146		$	23,229		$	23,330		$	23,415
States and political subdivisions	379,325			385,829			387,351			389,109			391,365
Mortgage-backed securities	924,734			962,477			1,006,931			1,056,529			1,076,692
Corporate bonds	70,197			115,014			138,556			178,097			193,895
Equity securities	11,063			11,077			11,004			10,885			10,828
Total fair value	$	1,408,326		$	1,497,543		$	1,567,071		$	1,657,950		$	1,696,195
Unrealized gain (loss)
Government sponsored agencies and enterprises	$	(6	)	$	69		$	88		$	126		$	148
States and political subdivisions	15,512			19,642			19,966			17,780			14,824
Mortgage-backed securities	(8,414		)	(2,101		)	(1,233		)	(2,412		)	(4,001		)
Corporate bonds	42			433			608			762			731
Equity securities	(173		)	(100		)	(110		)	(172		)	(172		)
Total unrealized gain	$	6,961		$	17,943		$	19,319		$	16,084		$	11,530
Securities held to maturity, at cost:
States and political subdivisions	$	878,400		$	888,576		$	896,043		$	910,336		$	910,608
Mortgage-backed securities	80,682			105,662			126,869			145,672			159,142
Total amortized cost	$	959,082		$	994,238		$	1,022,912		$	1,056,008		$	1,069,750

The Company has no direct exposure to the State of Illinois, but approximately 20% of the state and political subdivisions portfolio consisted of securities issued by municipalities located in Illinois as of December 31, 2017.

13

LOAN PORTFOLIO

The following table sets forth the composition of the loan portfolio (excluding loans held for sale) based on balances as of the dates indicated (dollars in thousands):

	12/31/2017					9/30/2017					6/30/2017					3/31/2017					12/31/2016
	Amount			% of Total		Amount			% of Total		Amount			% of Total		Amount			% of Total		Amount			% of Total
Commercial-related loans:
Commercial	$	4,786,180		34	%	$	4,793,838		35	%	$	4,703,328		35	%	$	4,364,122		34	%	$	4,346,506		34	%
Commercial loans collateralized by assignment of lease payments (lease loans)	2,113,135			15		2,074,215			15		2,076,911			15		2,008,601			16		2,002,976			16
Commercial real estate	4,147,529			30		4,094,706			29		3,882,754			29		3,734,171			29		3,788,016			29
Construction real estate	406,849			3		395,794			3		449,116			3		554,942			4		518,562			4
Total commercial-related loans	11,453,693			82		11,358,553			82		11,112,109			82		10,661,836			83		10,656,060			83
Other loans:
Residential real estate	1,432,458			10		1,433,595			10		1,411,259			10		1,227,218			9		1,060,828			8
Indirect vehicle	667,928			4		655,213			4		627,819			4		573,792			4		541,680			4
Home equity	219,098			2		228,726			2		238,952			2		246,805			2		266,377			2
Consumer	73,141			1		77,372			1		74,925			1		80,016			1		80,781			1
Total other loans	2,392,625			17		2,394,906			17		2,352,955			17		2,127,831			16		1,949,666			15
Total loans, excluding purchased credit-impaired loans	13,846,318			99		13,753,459			99		13,465,064			99		12,789,667			99		12,605,726			98
Purchased credit-impaired loans	119,744			1		131,919			1		149,077			1		168,814			1		163,077			2
Total loans	$	13,966,062		100	%	$	13,885,378		100	%	$	13,614,141		100	%	$	12,958,481		100	%	$	12,768,803		100	%
Change in total loans, excluding purchased credit-impaired loans:
From prior quarter	+0.7		%			+2.1		%			+5.3		%			+1.5		%			+1.8		%
From same quarter one year ago	+9.8		%			+11.1		%			+33.8		%			+30.2		%			+30.6		%

The following table sets forth the composition of the loan portfolio (excluding loans held for sale) based on average balances for the periods indicated (dollars in thousands):

	4Q17					3Q17					2Q17					1Q17					4Q16
	Amount			% of Total		Amount			% of Total		Amount			% of Total		Amount			% of Total		Amount			% of Total
Commercial-related loans:
Commercial	$	4,638,618		34	%	$	4,630,865		34	%	$	4,494,343		34	%	$	4,269,545		34	%	$	4,274,398		35	%
Commercial loans collateralized by assignment of lease payments (lease loans)	2,074,655			15		2,057,461			15		1,989,397			15		1,938,564			15		1,896,486			15
Commercial real estate	4,131,179			30		3,953,639			29		3,790,911			29		3,742,505			30		3,775,599			30
Construction real estate	410,416			3		442,197			3		512,385			4		554,612			4		486,861			4
Total commercial-related loans	11,254,868			82		11,084,162			81		10,787,036			82		10,505,226			83		10,433,344			84
Other loans:
Residential real estate	1,430,219			10		1,433,866			11		1,331,369			10		1,133,927			9		1,031,152			8
Indirect vehicle	663,474			4		641,328			4		601,394			4		552,669			4		532,782			4
Home equity	223,445			2		234,460			2		243,232			2		253,654			2		273,694			2
Consumer	76,249			1		76,591			1		81,164			1		81,564			1		80,113			1
Total other loans	2,393,387			17		2,386,245			18		2,257,159			17		2,021,814			16		1,917,741			15
Total loans, excluding purchased credit-impaired loans	13,648,255			99		13,470,407			99		13,044,195			99		12,527,040			99		12,351,085			99
Purchased credit-impaired loans	127,781			1		139,246			1		161,218			1		156,058			1		152,509			1
Total loans	$	13,776,036		100	%	$	13,609,653		100	%	$	13,205,413		100	%	$	12,683,098		100	%	$	12,503,594		100	%
Change in total loans, excluding purchased credit-impaired loans:
From prior quarter	+1.3		%			+3.3		%			+4.1		%			+1.4		%			+12.9		%
From same quarter one year ago	+10.5		%			+23.2		%			+31.4		%			+30.0		%			+31.6		%

14

ASSET QUALITY

The following table presents a summary of criticized assets (excluding loans held for sale and excluding other real estate owned acquired as part of our FDIC-assisted transactions) as of the dates indicated (dollars in thousands):

	12/31/2017			9/30/2017			6/30/2017			3/31/2017			12/31/2016
Non-performing loans:
Non-accrual loans (1)	$	71,238		$	49,926		$	51,013		$	47,042		$	48,974
Loans 90 days or more past due, still accruing interest	5,570			689			1,190			2,159			10,378
Total non-performing loans	76,808			50,615			52,203			49,201			59,352
Other real estate owned	9,736			13,020			11,063			14,706			26,279
Repossessed assets	589			497			484			477			322
Total non-performing assets	$	87,133		$	64,132		$	63,750		$	64,384		$	85,953
Potential problem loans (2)	$	173,266		$	160,840		$	134,509		$	153,779		$	144,544
Purchased credit-impaired loans (3)	$	119,744		$	131,919		$	149,077		$	168,814		$	163,077
Total non-performing, potential problem and purchased credit-impaired loans	$	369,818		$	343,374		$	335,789		$	371,794		$	366,973
Total allowance for loan and lease losses	$	157,710		$	159,128		$	154,033		$	144,170		$	139,366
Accruing restructured loans (4)	28,554			32,850			29,658			31,101			32,687
Total non-performing loans to total loans	0.55		%	0.36		%	0.38		%	0.38		%	0.46		%
Total non-performing assets to total assets	0.43			0.32			0.32			0.34			0.45
Allowance for loan and lease losses to non-performing loans	205.33			314.39			295.07			293.02			234.81

⁽¹⁾  Includes $30.8 million, $24.4 million, $23.7 million, $20.7 million and $27.1 million of restructured loans on non-accrual status at December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively.

⁽²⁾  We define potential problem loans as loans rated substandard that do not meet the definition of a non-performing loan.  Potential problem loans carry a higher probability of default and require additional attention by management.

⁽³⁾  Includes $54.9 million, $60.1 million, $65.7 million, $68.8 million and $66.1 million of Government National Mortgage Association ("GNMA") loans that have been repurchased at December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively.

⁽⁴⁾  Accruing restructured loans consist of loans that have been modified and are performing in accordance with those modified terms as of the dates indicated.

The following table presents data related to non-performing loans by category (excluding loans held for sale and purchased credit-impaired loans that were acquired as part of our FDIC-assisted transactions and bank mergers) as of the dates indicated (in thousands):

	12/31/2017		9/30/2017		6/30/2017		3/31/2017		12/31/2016
Commercial and lease	$	18,522	$	8,493	$	8,166	$	8,739	$	15,189
Commercial real estate	21,235		7,753		9,512		8,719		11,767
Consumer-related	37,051		34,369		34,525		31,743		32,396
Total non-performing loans	$	76,808	$	50,615	$	52,203	$	49,201	$	59,352

15

Below is a reconciliation of the activity in our allowance for credit and loan and lease losses for the periods indicated (dollars in thousands):

																	Year Ended
																	December 31,
		4Q17			3Q17			2Q17			1Q17			4Q16			2017			2016
Allowance for credit losses, balance at the beginning of period		$	161,404		$	156,297		$	146,498		$	141,842		$	142,399		$	141,842		$	131,508
Provision for credit losses		3,643			4,517			9,699			3,734			2,622			21,593			19,563
Charge-offs		7,448			2,830			2,921			3,373			6,442			16,572			20,611
Recoveries		1,809			3,420			3,021			4,295			3,263			12,545			11,382
Net charge-offs (recoveries)		5,639			(590		)	(100		)	(922		)	3,179			4,027			9,229
Allowance for credit losses, at end of period		159,408			161,404			156,297			146,498			141,842			159,408			141,842
Allowance for unfunded credit commitments	��	(1,698		)	(2,276		)	(2,264		)	(2,328		)	(2,476		)	(1,698		)	(2,476		)
Allowance for loan and lease losses, at end of period		$	157,710		$	159,128		$	154,033		$	144,170		$	139,366		$	157,710		$	139,366
Total loans, excluding loans held for sale		$	13,966,062		$	13,885,378		$	13,614,141		$	12,958,481		$	12,768,803		$	13,966,062		$	12,768,803
Average loans, excluding loans held for sale		13,776,036			13,609,653			13,205,413			12,683,098			12,503,594			13,322,342			10,857,460
Allowance for loan and lease losses to total loans, excluding loans held for sale		1.13		%	1.15		%	1.13		%	1.11		%	1.09		%	1.13		%	1.09		%
Net loan charge-offs (recoveries) to average loans, excluding loans held for sale (annualized)		0.16			(0.02		)	(0.00		)	(0.03		)	0.10			0.03			0.09

The following table presents the three elements of the Company's allowance for loan and lease losses as of the dates indicated (dollars in thousands):

	12/31/2017		9/30/2017		6/30/2017		3/31/2017		12/31/2016
Commercial related loans:
General reserve	$	132,787	$	137,617	$	133,869	$	125,370	$	120,221
Specific reserve	6,056		2,453		1,800		1,272		3,243
Consumer related reserve	18,867		19,058		18,364		17,528		15,902
Total allowance for loan and lease losses	$	157,710	$	159,128	$	154,033	$	144,170	$	139,366

Changes in the acquisition accounting discount for purchased credit-impaired ("PCI") and non-purchased credit-impaired ("Non-PCI") loans acquired in bank mergers were as follows for the three months ended December 31, 2017 (in thousands):

	Non-Accretable Discount - PCI Loans			Accretable Discount - PCI Loans			Accretable Discount - Non-PCI Loans			Total
Balance at beginning of period	$	13,640		$	11,824		$	23,970		$	49,434
Charge-offs	(2,553		)	—			—			(2,553		)
Accretion	—			(3,166		)	(2,914		)	(6,080		)
Transfer (1)	(3,411		)	3,411			—			—
Balance at end of period	$	7,676		$	12,069		$	21,056		$	40,801

⁽¹⁾  The transfer from non-accretable discount on purchased credit-impaired loans to accretable discount was due to better than expected cash flows on several pools of purchased credit-impaired loans.

16

DEPOSIT MIX

The following table shows the composition of deposits based on balances as of the dates indicated (dollars in thousands):

	12/31/2017					9/30/2017					6/30/2017					3/31/2017					12/31/2016
	Amount			% of Total		Amount			% of Total		Amount			% of Total		Amount			% of Total		Amount			% of Total
Low-cost deposits:
Non-interest bearing deposits	$	6,381,512		43	%	$	6,101,159		42	%	$	6,388,292		45	%	$	6,211,173		44	%	$	6,408,169		46	%
Money market, NOW, and interest bearing deposits	4,954,765			33		4,842,097			34		4,600,506			32		4,580,773			33		4,543,004			32
Savings deposits	1,167,810			8		1,088,194			7		1,109,155			8		1,126,879			8		1,135,992			8
Total low-cost deposits	12,504,087			84		12,031,450			83		12,097,953			85		11,918,825			85		12,087,165			86
Certificates of deposit:
Certificates of deposit	1,392,409			9		1,381,993			10		1,340,071			9		1,261,228			9		1,225,102			9
Brokered certificates of deposit	1,061,882			7		1,001,701			7		823,795			6		819,330			6		798,181			5
Total certificates of deposit	2,454,291			16		2,383,694			17		2,163,866			15		2,080,558			15		2,023,283			14
Total deposits	$	14,958,378		100	%	$	14,415,144		100	%	$	14,261,819		100	%	$	13,999,383		100	%	$	14,110,448		100	%
Change in total deposits:
From prior quarter	+3.8		%			+1.1		%			+1.9		%			-0.8		%			-1.2		%
From same quarter one year ago	+6.0		%			+1.0		%			+24.7		%			+21.4		%			+22.6		%

The following table shows the composition of deposits based on average balances for the periods indicated (dollars in thousands):

	4Q17					3Q17					2Q17					1Q17					4Q16
	Amount			% of Total		Amount			% of Total		Amount			% of Total		Amount			% of Total		Amount			% of Total
Low-cost deposits:
Non-interest bearing deposits	$	6,370,801		43	%	$	6,337,955		44	%	$	6,336,151		45	%	$	6,209,402		45	%	$	6,454,025		45	%
Money market, NOW, and interest bearing deposits	4,976,854			33		4,740,210			33		4,506,765			32		4,529,402			33		4,628,698			33
Savings deposits	1,120,550			7		1,094,625			7		1,113,159			8		1,131,757			8		1,140,926			8
Total low-cost deposits	12,468,205			83		12,172,790			84		11,956,075			85		11,870,561			86		12,223,649			86
Certificates of deposit:
Certificates of deposit	1,393,210			10		1,369,401			10		1,317,995			9		1,245,152			9		1,263,675			9
Brokered certificates of deposit	1,092,990			7		869,687			6		820,026			6		815,473			5		779,411			5
Total certificates of deposit	2,486,200			17		2,239,088			16		2,138,021			15		2,060,625			14		2,043,086			14
Total deposits	$	14,954,405		100	%	$	14,411,878		100	%	$	14,094,096		100	%	$	13,931,186		100	%	$	14,266,735		100	%
Change in total deposits:
From prior quarter	+3.8		%			+2.3		%			+1.2		%			-2.4		%			+12.1		%
From same quarter one year ago	+4.8		%			+13.2		%			+22.7		%			+21.4		%			+23.7		%

STATEMENT OF OPERATIONS DETAILS TO FOLLOW

17

NET INTEREST MARGIN

The following table presents, for the periods indicated, the total dollar amount of interest income from average interest earning assets and the resultant yields, as well as the interest expense on average interest bearing liabilities, and the resultant costs, expressed both in dollars and rates (dollars in thousands):

	4Q17						3Q17						4Q16
	Average Balance		Interest		Yield/ Rate		Average Balance		Interest		Yield/ Rate		Average Balance		Interest		Yield/ Rate
Interest Earning Assets:
Loans held for sale	$	653,482	$	5,683	3.48	%	$	725,899	6,651		3.67	%	$	859,254	$	7,100	3.31	%
Loans (1) (2) (3):
Commercial-related loans
Commercial	4,638,618		53,505		4.51		4,630,865		53,567		4.53		4,274,398		45,255		4.14
Commercial loans collateralized by assignment of lease payments (lease loans)	2,074,655		19,314		3.72		2,057,461		19,381		3.77		1,896,486		17,275		3.64
Commercial real estate	4,131,179		47,763		4.52		3,953,639		46,587		4.61		3,775,599		41,508		4.30
Construction real estate	410,416		4,395		4.19		442,197		4,689		4.15		486,861		4,592		3.69
Total commercial related loans	11,254,868		124,977		4.36		11,084,162		124,224		4.40		10,433,344		108,630		4.09
Other loans:
Real estate residential	1,430,219		11,621		3.25		1,433,866		11,579		3.23		1,031,152		8,522		3.31
Indirect	663,474		7,810		4.67		641,328		7,528		4.66		532,782		6,198		4.63
Home equity	223,445		2,414		4.29		234,460		2,515		4.26		273,694		2,651		3.85
Consumer	76,249		796		4.14		76,591		831		4.31		80,113		776		3.86
Total other loans	2,393,387		22,641		3.77		2,386,245		22,453		3.75		1,917,741		18,147		3.77
Total loans, excluding purchased credit-impaired loans	13,648,255		147,618		4.26		13,470,407		146,677		4.29		12,351,085		126,777		4.04
Purchased credit-impaired loans	127,781		4,964		15.41		139,246		6,161		17.55		152,509		4,704		12.27
Total loans	13,776,036		152,582		4.36		13,609,653		152,838		4.42		12,503,594		131,481		4.14
Taxable investment securities	1,315,473		7,696		2.34		1,445,619		8,440		2.34		1,721,537		9,362		2.18
Investment securities exempt from federal income taxes (3)	1,249,181		14,888		4.77		1,255,025		14,971		4.77		1,304,931		15,724		4.82
Federal funds sold	37		0		1.73		38		0		1.74		36		0		1.00
Other interest earning deposits	363,273		600		0.66		147,065		327		0.88		107,311		157		0.58
Total interest earning assets	$	17,357,482	$	181,449	4.13	%	$	17,183,299	$	183,227	4.21	%	$	16,496,663	$	163,824	3.92	%
Non-interest earning assets	2,809,191						2,762,556						2,696,084
Total assets	$	20,166,673					$	19,945,855					$	19,192,747
Interest Bearing Liabilities:
Core funding:
Money market, NOW, and interest bearing deposits	$	4,976,854	$	5,617	0.45	%	$	4,740,210	$	4,485	0.38	%	$	4,628,698	$	2,593	0.22	%
Savings deposits	1,120,550		478		0.17		1,094,625		289		0.10		1,140,926		273		0.10
Certificates of deposit	1,393,210		3,143		0.90		1,369,401		2,757		0.80		1,263,675		1,728		0.54
Customer repurchase agreements	217,390		137		0.25		200,008		114		0.23		247,273		129		0.21
Total core funding	7,708,004		9,375		0.48		7,404,244		7,645		0.41		7,280,572		4,723		0.26
Wholesale funding:
Brokered certificates of deposit (includes fee expense)	1,092,990		4,314		1.57		869,687		3,334		1.52		779,411		2,730		1.39
Other borrowings	1,672,957		7,884		1.84		2,192,200		8,644		1.54		1,638,605		4,067		0.97
Total wholesale funding	2,765,947		12,198		1.73		3,061,887		11,978		1.54		2,418,016		6,797		1.11
Total interest bearing liabilities	$	10,473,951	$	21,573	0.81	%	$	10,466,131	$	19,623	0.74	%	$	9,698,588	$	11,520	0.47	%
Non-interest bearing deposits	6,370,801						6,337,955						6,454,025
Other non-interest bearing liabilities	541,823						479,488						482,449
Stockholders' equity	2,780,098						2,662,281						2,557,685
Total liabilities and stockholders' equity	$	20,166,673					$	19,945,855					$	19,192,747
Net interest income/interest rate spread (4)			$	159,876	3.32	%			$	163,604	3.47	%			$	152,304	3.45	%
Taxable equivalent adjustment			6,483						6,657						7,090
Net interest income, as reported			$	153,393					$	156,947					$	145,214
Net interest margin (5)					3.49	%					3.60	%					3.47	%
Tax equivalent effect					0.14	%					0.16	%					0.18	%
Net interest margin on a fully tax equivalent basis (5)					3.63	%					3.76	%					3.65	%

⁽¹⁾  Non-accrual loans are included in average loans.

⁽²⁾  Interest income includes amortization of deferred loan origination fees and costs.

⁽³⁾  Non-taxable loan and investment income is presented on a fully tax equivalent basis assuming a 35% tax rate.

⁽⁴⁾  Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.

⁽⁵⁾  Net interest margin represents net interest income as a percentage of average interest earning assets.

18

	Year Ended December 31,
	2017						2016
	Average Balance		Interest		Yield/ Rate		Average Balance		Interest		Yield/ Rate
Interest Earning Assets:
Loans held for sale	$	632,927	$	22,801	3.60	%	$	771,384	26,450		3.43	%
Loans (1) (2) (3):
Commercial-related loans
Commercial	4,509,690		202,446		4.43		3,796,230		162,710		4.22
Commercial loans collateralized by assignment of lease payments (lease loans)	2,015,508		74,870		3.71		1,813,837		67,376		3.71
Commercial real estate	3,905,758		176,969		4.47		3,130,516		132,748		4.17
Construction real estate	479,404		19,996		4.11		378,405		14,852		3.86
Total commercial related loans	10,910,360		474,281		4.30		9,118,988		377,686		4.09
Other loans:
Real estate residential	1,333,435		43,752		3.28		811,782		27,402		3.38
Indirect	615,093		28,385		4.61		477,008		22,128		4.64
Home equity	238,603		9,906		4.15		229,626		8,905		3.88
Consumer	78,871		3,243		4.11		79,059		3,158		3.99
Total other loans	2,266,002		85,286		3.76		1,597,475		61,593		3.86
Total loans, excluding purchased credit-impaired loans	13,176,362		559,567		4.21		10,716,463		439,279		4.05
Purchased credit-impaired loans	145,980		21,274		14.57		140,997		19,257		13.66
Total loans	13,322,342		580,841		4.32		10,857,460		458,536		4.18
Taxable investment securities	1,472,596		33,975		2.31		1,576,836		35,571		2.26
Investment securities exempt from federal income taxes (3)	1,261,295		60,336		4.78		1,331,323		64,649		4.86
Federal funds sold	64		1		1.45		37		0		1.00
Other interest earning deposits	182,651		1,353		0.74		106,075		587		0.55
Total interest earning assets	$	16,871,875	$	699,307	4.11	%	$	14,643,115	$	585,793	3.97	%
Non-interest earning assets	2,758,432						2,281,357
Total assets	$	19,630,307					$	16,924,472
Interest Bearing Liabilities:
Core funding:
Money market, NOW, and interest bearing deposits	$	4,689,676	$	16,008	0.34	%	$	4,185,129	$	9,027	0.22	%
Savings deposits	1,114,936		1,267		0.11		1,053,429		837		0.08
Certificates of deposit	1,331,949		9,826		0.74		1,249,264		6,248		0.50
Customer repurchase agreements	199,661		448		0.22		202,673		420		0.21
Total core funding	7,336,222		27,549		0.38		6,690,495		16,532		0.25
Wholesale funding:
Brokered certificates of deposit (includes fee expense)	900,222		13,584		1.51		654,238		9,467		1.45
Other borrowings	1,930,302		28,936		1.48		1,518,447		13,287		0.86
Total wholesale funding	2,830,524		42,520		1.49		2,172,685		22,754		1.04
Total interest bearing liabilities	$	10,166,746	$	70,069	0.69	%	$	8,863,180	$	39,286	0.44	%
Non-interest bearing deposits	6,314,086						5,351,197
Other non-interest bearing liabilities	484,564						433,202
Stockholders' equity	2,664,911						2,276,893
Total liabilities and stockholders' equity	$	19,630,307					$	16,924,472
Net interest income/interest rate spread (4)			$	629,238	3.42	%			$	546,507	3.53	%
Taxable equivalent adjustment			26,861						28,616
Net interest income, as reported			$	602,377					$	517,891
Net interest margin (5)					3.54	%					3.50	%
Tax equivalent effect					0.16	%					0.20	%
Net interest margin on a fully tax equivalent basis (5)					3.70	%					3.70	%

⁽¹⁾  Non-accrual loans are included in average loans.

⁽²⁾  Interest income includes amortization of deferred loan origination fees and costs.

⁽³⁾  Non-taxable loan and investment income is presented on a fully tax equivalent basis assuming a 35% tax rate.

⁽⁴⁾  Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.

⁽⁵⁾  Net interest margin represents net interest income as a percentage of average interest earning assets.

19

The tables below reflect the impact the acquisition accounting loan discount accretion on acquired loans had on the loan yield and net interest margin on a fully tax equivalent basis for the periods indicated (dollars in thousands):

	4Q17							3Q17							4Q16
	Average Balance			Interest		Yield		Average Balance			Interest		Yield		Average Balance			Interest		Yield
Loan yield excluding acquisition accounting discount accretion on bank merger loans:
Total loans, as reported	$	13,776,036		$	152,582	4.36	%	$	13,609,653		$	152,838	4.42	%	$	12,503,594		$	131,481	4.14	%
Less acquisition accounting discount accretion on non-PCI loans	(22,513		)	2,914				(25,764		)	3,587				(42,978		)	4,854
Less acquisition accounting discount accretion on PCI loans	(22,605		)	3,166				(28,347		)	4,315				(34,360		)	2,709
Total loans, excluding acquisition accounting discount accretion on bank merger loans	$	13,821,154		$	146,502	4.17	%	$	13,663,764		$	144,936	4.17	%	$	12,580,932		$	123,918	3.88	%
Net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on bank merger loans:
Total interest earning assets, as reported	$	17,357,482		$	159,876	3.63	%	$	17,183,299		$	163,604	3.76	%	$	16,496,663		$	152,304	3.65	%
Less acquisition accounting discount accretion on non-PCI loans	(22,513		)	2,914				(25,764		)	3,587				(42,978		)	4,854
Less acquisition accounting discount accretion on PCI loans	(22,605		)	3,166				(28,347		)	4,315				(34,360		)	2,709
Total interest earning assets/net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on bank merger loans	$	17,402,600		$	153,796	3.49	%	$	17,237,410		$	155,702	3.56	%	$	16,574,001		$	144,741	3.45	%

	Year Ended December 31,
	2017							2016
	Average Balance			Interest		Yield		Average Balance			Interest		Yield
Loan yield excluding acquisition accounting discount accretion on bank merger loans:
Total loans, as reported	$	13,322,342		$	580,841	4.32	%	$	10,857,460		$	458,536	4.18	%
Less acquisition accounting discount accretion on non-PCI loans	(28,626		)	15,340				(35,507		)	19,309
Less acquisition accounting discount accretion on PCI loans	(30,984		)	12,500				(26,856		)	9,470
Total loans, excluding acquisition accounting discount accretion on bank merger loans	$	13,381,952		$	553,001	4.09	%	$	10,919,823		$	429,757	3.89	%
Net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on bank merger loans:
Total interest earning assets, as reported	$	16,871,875		$	629,238	3.70	%	$	14,643,115		$	546,507	3.70	%
Less acquisition accounting discount accretion on non-PCI loans	(28,626		)	15,340				(35,507		)	19,309
Less acquisition accounting discount accretion on PCI loans	(30,984		)	12,500				(26,856		)	9,470
Total interest earning assets/net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on bank merger loans	$	16,931,485		$	601,398	3.52	%	$	14,705,478		$	517,728	3.49	%

20

NON-INTEREST INCOME

The following table presents non-interest income (in thousands):

																Year Ended
																December 31,
	4Q17			3Q17			2Q17			1Q17			4Q16			2017			2016
Core non-interest income:
Key fee initiatives:
Mortgage banking revenue	$	21,870		$	27,575		$	29,499		$	27,779		$	32,277		$	106,723		$	148,469
Lease financing revenue, net	23,620			23,148			18,401			21,418			19,868			86,587			73,486
Treasury management fees	15,234			14,508			14,499			14,689			14,237			58,930			50,620
Trust and asset management fees	9,024			8,702			8,498			8,520			8,442			34,744			32,872
Card fees	5,032			4,585			4,413			4,566			4,340			18,596			16,071
Capital markets and international banking service fees	3,999			4,870			3,586			3,253			4,021			15,708			13,332
Total key fee initiatives	78,779			83,388			78,896			80,225			83,185			321,288			334,850
Consumer and other deposit service fees	3,261			3,424			3,285			3,363			3,563			13,333			13,308
Brokerage fees	942			1,004			1,250			1,125			887			4,321			4,654
Loan service fees	2,197			2,114			2,037			1,969			1,952			8,317			7,457
Increase in cash surrender value of life insurance	1,511			1,321			1,301			1,288			1,316			5,421			4,075
Other operating income	2,616			3,104			2,458			2,734			2,350			10,912			9,566
Total core non-interest income	89,306			94,355			89,227			90,704			93,253			363,592			373,910
Non-core non-interest income:
Net gain on investment securities	111			83			137			231			178			562			447
Net loss on disposal of other assets	(2,016		)	(180		)	(4		)	(123		)	(749		)	(2,323		)	(794		)
Recovery of low to moderate income real estate investment (1)	1,006			210			488			—			—			1,704			—
Increase in market value of assets held in trust for deferred compensation (1)	912			796			669			961			141			3,338			1,340
Total non-core non-interest income	13			909			1,290			1,069			(430		)	3,281			993
Total non-interest income	$	89,319		$	95,264		$	90,517		$	91,773		$	92,823		$	366,873		$	374,903

⁽¹⁾  Resides in other operating income in the consolidated statements of operations.

21

NON-INTEREST EXPENSE

The following table presents non-interest expense (in thousands):

															Year Ended
															December 31,
	4Q17			3Q17			2Q17			1Q17		4Q16			2017		2016
Core non-interest expense: (1)
Salaries and employee benefits expense:
Salaries	$	62,465		$	61,992		$	59,889		$	58,811	$	60,553		$	243,157	$	218,704
Commissions	8,303			9,206			9,730			8,611		10,306			35,850		40,923
Bonus and stock-based compensation	13,332			11,911			12,553			12,290		12,167			50,086		46,675
Other salaries and benefits (2)	20,153			20,922			19,173			20,264		21,023			80,512		79,532
Total salaries and employee benefits expense	104,253			104,031			101,345			99,976		104,049			409,605		385,834
Occupancy and equipment expense	16,727			15,382			15,278			15,040		15,594			62,427		56,923
Computer services and telecommunication expense	11,287			10,093			9,709			9,255		11,019			40,344		38,766
Advertising and marketing expense	3,266			2,558			3,245			3,161		3,039			12,230		11,848
Professional and legal expense	2,914			2,109			2,447			2,594		2,351			10,064		10,842
Other intangible amortization expense	1,979			2,038			2,086			2,090		2,388			8,193		7,305
Net (gain) loss recognized on other real estate owned (A)	(151		)	84			706			607		(982		)	1,246		(2,358		)
Other real estate expense, net (A)	47			(170		)	(16		)	237		192			98		759
Other operating expenses	22,946			22,035			22,924			21,486		21,478			89,391		80,725
Total core non-interest expense	163,268			158,160			157,724			154,446		159,128			633,598		590,644
Non-core non-interest expense: (1)
Merger related and repositioning expenses (B)	136			1,579			7,166			258		6,491			9,139		23,712
Restructuring severance charges (C)	808			—			—			—		—			808		—
One-time bonuses (C)	2,700			—			—			—		—			2,700		—
Branch exit and facilities impairment charges	—			1,759			—			—		—			1,759		155
Contribution to MB Financial Charitable Foundation (D)	7,500			—			—			—		—			7,500		4,000
Increase in market value of assets held in trust for deferred compensation (C)	912			796			669			961		141			3,338		1,340
Total non-core non-interest expense	12,056			4,134			7,835			1,219		6,632			25,244		29,207
Total non-interest expense	$	175,324		$	162,294		$	165,559		$	155,665	$	165,760		$	658,842	$	619,851

⁽¹⁾  Letters denote the corresponding line items where these non-core non-interest expense items reside in the consolidated statements of operations as follows:  A – net loss (gain) recognized on other real estate owned and other expense, B – see merger related and repositioning expenses table below, C – salaries and employee benefits and D – other operating expenses.

⁽²⁾  Includes payroll taxes, 401(k) and profit sharing contributions, overtime and temporary help expenses.

22

The following table presents the detail of the merger related and repositioning expenses (in thousands):

															Year Ended
															December 31,
	4Q17			3Q17			2Q17			1Q17			4Q16		2017			2016
Merger related and repositioning expenses (1):
Salaries and employee benefits expense	$	574		$	988		$	552		$	614		$	4,238	$	2,728		$	13,327
Occupancy and equipment expense	119			—			6			4			95		129			207
Computer services and telecommunication expense	17			(31		)	76			185			781		247			4,702
Advertising and marketing expense	5			—			—			—			6		5			123
Professional and legal expense	43			—			3			97			158		143			2,037
Branch exit and facilities impairment charges (2)	(327		)	1,014			6,589			(682		)	—		6,594			(2,864		)
Contingent consideration expense (3)	(454		)	—			—			—			1,000		(454		)	3,703
Other operating expenses	159			(392		)	(60		)	40			213		(253		)	2,477
Total merger related and repositioning expenses	$	136		$	1,579		$	7,166		$	258		$	6,491	$	9,139		$	23,712

⁽¹⁾  Primarily includes costs incurred in connection with the American Chartered merger.

⁽²⁾  Includes gains on previously closed branch facilities, costs associated with office space reconfiguration in the third quarter of 2017, exit charges on branches closed in the second quarter of 2017 as a result of the American Chartered merger, a gain on the sale of a branch in the first quarter of 2017, and a reversal of an exit cost due to a favorable lease termination in the third quarter of 2016 on a branch acquired through the Taylor Capital merger.

⁽³⁾  Includes an increase in our contingent consideration accrual for our acquisition of Celtic Leasing Corp. as a result of stronger lease residual performance than previously estimated. Also includes a decrease in our contingent consideration accrual for our acquisition of MSA Holdings, LLC. Resides in other operating expenses in the consolidated statements of operations.

The following table presents an alternative view of non-interest expense for the periods presented (dollars in thousands):

																Year Ended
																December 31,
	4Q17			3Q17			2Q17			1Q17			4Q16			2017			2016
Core non-interest expense (1)	$	163,268		$	158,160		$	157,724		$	154,446		$	159,128		$	633,598		$	590,644
Less commissions (2)	8,303			9,206			9,730			8,611			10,306			35,850			40,923
Less net loss (gain) recognized on other real estate owned (3)	(151		)	84			706			607			(982		)	1,246			(2,358		)
Plus day count adjustment for constant 92 days of salary expense (4)	—			—			658			1,307			—			—			—
Less non-repeatable 4Q17 expenses	2,600
Run-rate of non-interest expense	$	152,516		$	148,870		$	147,946		$	146,535		$	149,804		$	596,502		$	552,079
Percent change from prior period	+2.4		%	+0.6		%	+1.0		%	-2.2		%				+8.0		%

⁽¹⁾  See "Non-interest Expense" section for reconciliation of core non-interest expense to total non-interest expense as reported.

⁽²⁾  Resides in salaries and employee benefits expense on the consolidated statements of operations.

⁽³⁾  Resides in net loss (gain) recognized on other real estate owned and other expense on the consolidated statements of operations.

⁽⁴⁾  Adjustment adds one extra day of salary expense to the second quarter of 2017 and two days to the first quarter of 2017 for comparability purposes. No adjustments made to full year.

The increase in run-rate of non-interest expense was $3.6 million in the fourth quarter of 2017 compared to the prior quarter. Non-interest expenses increased by approximately $850 thousand during the fourth quarter of 2017 as a result of the staff transferred from Busey in December 2017. This $850 thousand represents less than a full month of expense (a full quarter of expense would have been approximately $3.6 million, excluding commissions).

23

INCOME TAX EXPENSE

The following table presents information on our income tax rate (dollars in thousands):

																Year Ended
																December 31,
	4Q17			3Q17			2Q17			1Q17			4Q16			2017			2016
Income before income taxes - as reported	$	63,745		$	85,400		$	64,253		$	75,417		$	69,655		$	288,815		$	253,380
Tax at Federal statutory rate (35%)	22,310			29,890			22,489			26,396			24,379			101,085			88,683
Increase (decrease) due to:
Tax exempt income, net	(4,673		)	(4,665		)	(4,815		)	(4,900		)	(5,025		)	(19,053		)	(19,646		)
State tax expense (benefit), net of Federal impact	3,103			4,101			2,727			2,764			3,234			12,695			10,030
Other items, net	1,131			(802		)	261			807			320			1,397			1,631
Tax expense before discrete items	21,871			28,524			20,662			25,067			22,908			96,124			80,698
Income tax rate before discrete items (effective tax rate)	34.3		%	33.4		%	32.2		%	33.2		%	32.9		%	33.3		%	31.8		%
Discrete tax expense (benefit) items (1)	1,919			(1,643		)	(220		)	(2,738		)	(849		)	(2,682		)	(2,954		)
Discrete tax benefit corporate tax rate changes (2)	(104,239		)	(2,324		)	—			—			—			(106,563		)	—
Discrete tax expense (benefit) merger related items (3)	—			—			(655		)	(1,449		)	405			(2,104		)	1,500
Income tax (benefit) expense - as reported	$	(80,449	)	$	24,557		$	19,787		$	20,880		$	22,464		$	(15,225	)	$	79,244
Income tax rate	(126.2		)%	28.8		%	30.8		%	27.7		%	32.3		%	(5.3		)%	31.3		%

⁽¹⁾  Includes tax benefits on the vesting of restricted shares, exercise of options and other compensation as well as the $2.1 million increase in state income tax accruals as a result of income allocation to high income tax rate jurisdictions for the fourth quarter of 2017.

⁽²⁾  Includes tax benefit due to the impact of the Illinois state income tax rate increase (effective July 1, 2017) on our deferred tax assets and the impact of the Federal income tax rate decrease due to the Tax Cuts and Jobs Act of 2017 (enacted on December 22, 2017) on our net deferred tax liabilities.

⁽³⁾  Includes reversals of a tax liability no longer needed specifically related to two entities we acquired and certain non-deductible merger related items.

We estimate that our effective tax rate in 2018 will be reduced by approximately 10%, due to the TCJ Act, to 24%.

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NON-GAAP FINANCIAL INFORMATION

This document contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). These measures include operating earnings, core non-interest income, core non-interest income to revenues (with non-core items excluded from both core non-interest income and revenues), core non-interest expense, non-core non-interest income, and non-core non-interest expense, net interest income on a fully tax equivalent basis, net interest margin on a fully tax equivalent basis, net interest margin on a fully tax equivalent basis excluding acquisition accounting discount accretion on bank merger loans, efficiency ratio, and the ratio of annualized net non-interest expense to average assets with net gains on investment securities, net losses on disposal of other assets, recovery of low to moderate income real estate investment and increase in market value of assets held in trust for deferred compensation excluded from the non-interest income components of these ratios and branch exit and facilities impairment charges, merger related and repositioning expenses, restructuring severance charges, one-time bonuses, increase in market value of assets held in trust for deferred compensation, and contribution to MB Financial Charitable Foundation excluded from the non-interest expense components of these ratios, with tax equivalent adjustment for tax-exempt interest income and increase in cash surrender value of life insurance, as applicable; ratios of tangible equity to tangible assets, tangible common equity to tangible assets, and tangible common equity to risk-weighted assets; tangible book value per common share; annualized operating return on average assets, annualized operating return on average common equity, annualized cash return on average tangible common equity, and annualized cash operating return on average tangible common equity. Our management uses these non-GAAP measures, together with the related GAAP measures, in its analysis of our performance and in making business decisions. Management also uses these measures for peer comparisons.

Management believes that operating earnings, core and non-core non-interest income, and core and non-core non-interest expense are useful in assessing our core operating performance and in understanding the primary drivers of our non-interest income and non-interest expense when comparing periods.

Management believes that operating earnings adjusted for merger related and repositioning expenses is a useful measure because it excludes expenses that can significantly fluctuate from acquisition to acquisition. In addition, management believes that excluding these expenses provides investors and analysts a measure to better understand the Company's primary operations when comparing the periods presented in the earnings release.

The tax equivalent adjustment to net interest income, net interest margin, tax-exempt interest income, and increase in cash surrender value of life insurance recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income and net interest margin on a fully tax equivalent basis, and accordingly believes that providing these measures may be useful for peer comparison purposes. For the same reasons, management believes that the tax equivalent adjustments to tax-exempt interest income and increase in cash surrender value of life insurance are useful.

Management also believes that by excluding net gains on investment securities, net losses on disposal of other assets, recovery of low to moderate income real estate investment, and increase in market value of assets held in trust for deferred compensation from the non-interest income components, and excluding branch exit and facilities impairment charges, merger related and repositioning expenses, restructuring severance charges, one-time bonuses, increase in market value of assets held in trust for deferred compensation, and contribution to MB Financial Charitable Foundation from the non-interest expense components, of the efficiency ratio and the ratio of annualized net non-interest expense to average assets, these ratios better reflect our core operating performance, as the excluded items do not pertain to our core business operations and their exclusion makes these ratios more meaningful when comparing our operating results from period to period.

The other measures exclude the acquisition-related goodwill and other intangible assets, net of tax benefit, in determining tangible assets, tangible equity, tangible common equity and average tangible common equity and exclude other intangible amortization expense, net of tax benefit, in determining net cash flow available to common stockholders. Management believes the presentation of these other financial measures, excluding the impact of such items, provides useful supplemental information that is helpful in understanding our financial results, as they provide a method to assess management’s success in utilizing our tangible capital, as well as our capital strength. Management also believes that providing measures that exclude balances of acquisition-related goodwill and other intangible assets, which are subjective components of valuation, facilitates the comparison of our performance with the performance of our peers. In addition, management believes that these are standard financial measures used in the banking industry to evaluate performance.

The non-GAAP disclosures contained herein should not be viewed as substitutes for the results determined to be in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Reconciliations of net interest margin on a fully tax equivalent basis to net interest margin and net interest margin on a fully tax equivalent basis excluding acquisition accounting discount accretion on bank merger loans to net interest margin are contained in the tables under “Net Interest Margin.” A reconciliation of tangible book value per common share to book value per common share is contained in the

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“Selected Financial Data” table. Reconciliations of core and non-core non-interest income and non-interest expense to non-interest income and non-interest expense are contained in the tables under “Non-interest Income” and “Non-interest Expense.”

The following table presents a reconciliation of tangible equity to stockholders' equity (in thousands):

	12/31/2017		9/30/2017		6/30/2017		3/31/2017		12/31/2016
Stockholders' equity - as reported	$	3,009,823	$	2,692,092	$	2,648,280	$	2,616,428	$	2,579,209
Less: goodwill	1,003,548		999,925		999,925		999,925		1,001,038
Less: other intangible assets, net of tax benefit	40,116		36,884		38,209		39,565		40,923
Tangible equity	$	1,966,159	$	1,655,283	$	1,610,146	$	1,576,938	$	1,537,248

The following table presents a reconciliation of tangible assets to total assets (in thousands):

	12/31/2017		9/30/2017		6/30/2017		3/31/2017		12/31/2016
Total assets - as reported	$	20,086,940	$	20,116,535	$	19,965,057	$	19,146,062	$	19,302,317
Less: goodwill	1,003,548		999,925		999,925		999,925		1,001,038
Less: other intangible assets, net of tax benefit	40,116		36,884		38,209		39,565		40,923
Tangible assets	$	19,043,276	$	19,079,726	$	18,926,923	$	18,106,572	$	18,260,356

The following table presents a reconciliation of tangible common equity to common stockholders' equity (in thousands):

	12/31/2017		9/30/2017		6/30/2017		3/31/2017		12/31/2016
Common stockholders' equity - as reported	$	2,699,824	$	2,576,812	$	2,532,708	$	2,500,856	$	2,463,637
Less: goodwill	1,003,548		999,925		999,925		999,925		1,001,038
Less: other intangible assets, net of tax benefit	40,116		36,884		38,209		39,565		40,923
Tangible common equity	$	1,656,160	$	1,540,003	$	1,494,574	$	1,461,366	$	1,421,676

The following table presents a reconciliation of average tangible common equity to average common stockholders’ equity (in thousands):

											Year Ended
											December 31,
	4Q17		3Q17		2Q17		1Q17		4Q16		2017		2016
Average common stockholders' equity	$	2,579,896	$	2,546,744	$	2,511,271	$	2,472,771	$	2,441,809	$	2,528,015	$	2,161,405
Less: average goodwill	1,001,027		999,925		999,925		1,001,005		994,053		1,000,469		820,526
Less: average other intangible assets, net of tax benefit	36,049		37,346		38,836		40,052		41,471		38,058		32,566
Average tangible common equity	$	1,542,820	$	1,509,473	$	1,472,510	$	1,431,714	$	1,406,285	$	1,489,488	$	1,308,313

The following table presents a reconciliation of net cash flow available to common stockholders to net income available to common stockholders (in thousands):

											Year Ended
											December 31,
	4Q17		3Q17		2Q17		1Q17		4Q16		2017		2016
Net income available to common stockholders - as reported	$	142,194	$	58,841	$	42,464	$	52,534	$	45,186	$	296,033	$	166,127
Add: other intangible amortization expense, net of tax benefit	1,286		1,325		1,356		1,359		1,552		5,325		4,748
Net cash flow available to common stockholders	$	143,480	$	60,166	$	43,820	$	53,893	$	46,738	$	301,358	$	170,875

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The following table presents a reconciliation of net income to operating earnings (dollars in thousands, except per share data):

																Year Ended
																December 31,
	4Q17			3Q17			2Q17			1Q17			4Q16			2017			2016
Net income - as reported	$	144,194		$	60,843		$	44,466		$	54,537		$	47,191		$	304,040		$	174,136
Less non-core items:
Net gain on investment securities	111			83			137			231			178			562			447
Net loss on disposal of other assets	(2,016		)	(180		)	(4		)	(123		)	(749		)	(2,323		)	(794		)
Recovery of low to moderate income real estate investment	1,006			210			488			—			—			1,704			—
Increase in market value of assets held in trust for deferred compensation - other operating income	912			796			669			961			141			3,338			1,340
Merger related and repositioning expenses	(136		)	(1,579		)	(7,166		)	(258		)	(6,491		)	(9,139		)	(23,712		)
Restructuring severance charges	(808		)	—			—			—			—			(808		)	—
One-time bonuses	(2,700		)	—			—			—			—			(2,700		)	—
Branch exit and facilities impairment charges	—			(1,759		)	—			—			—			(1,759		)	(155		)
Contribution to MB Financial Charitable Foundation	(7,500		)	—			—			—			—			(7,500		)	(4,000		)
Increase in market value of assets held in trust for deferred compensation - other operating expense	(912		)	(796		)	(669		)	(961		)	(141		)	(3,338		)	(1,340		)
Total non-core items	(12,043		)	(3,225		)	(6,545		)	(150		)	(7,062		)	(21,963		)	(28,214		)
Income tax expense on non-core items	(4,618		)	(1,283		)	(2,598		)	(59		)	(2,406		)	(8,558		)	(10,060		)
Income tax expense - other (1)	(104,239		)	—			(655		)	(1,449		)	—			(106,343		)	—
Income tax benefit resulting from early adoption of new stock-based compensation guidance	—			—			—			—			—			—			(1,793		)
Non-core items, net of tax	96,814			(1,942		)	(3,292		)	1,358			(4,656		)	92,938			(16,361		)
Operating earnings	47,380			62,785			47,758			53,179			51,847			211,102			190,497
Dividends on preferred shares	2,000			2,002			2,002			2,003			2,005			8,007			8,009
Operating earnings available to common stockholders	$	45,380		$	60,783		$	45,756		$	51,176		$	49,842		$	203,095		$	182,488
Diluted operating earnings per common share	$	0.53		$	0.72		$	0.54		$	0.60		$	0.59		$	2.39		$	2.34
Weighted average common shares outstanding for diluted operating earnings per common share	84,964,759			84,779,797			84,767,414			84,778,130			84,674,181			84,823,456			77,976,121

⁽¹⁾  The fourth quarter of 2017 includes the reversal of deferred tax liability as a result of the decrease in Federal income tax rate effective January 1, 2018 due to the Tax Cuts and Jobs Act of 2017. The first and second quarters of 2017 include reversals of a tax liability no longer needed specifically related to two entities we acquired.

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The following table presents the efficiency ratio calculation (dollars in thousands):

																Year Ended
																December 31,
	4Q17			3Q17			2Q17			1Q17			4Q16			2017			2016
Non-interest expense	$	175,324		$	162,294		$	165,559		$	155,665		$	165,760		$	658,842		$	619,851
Less merger related and repositioning expenses	136			1,579			7,166			258			6,491			9,139			23,712
Less restructuring severance charges	808			—			—			—			—			808			—
Less one-time bonuses	2,700			—			—			—			—			2,700			—
Less branch exit and facilities impairment charges	—			1,759			—			—			—			1,759			155
Less contribution to MB Financial Charitable Foundation	7,500			—			—			—			—			7,500			4,000
Less increase in market value of assets held in trust for deferred compensation	912			796			669			961			141			3,338			1,340
Non-interest expense - as adjusted	$	163,268		$	158,160		$	157,724		$	154,446		$	159,128		$	633,598		$	590,644
Net interest income	$	153,393		$	156,947		$	148,994		$	143,043		$	145,214		$	602,377		$	517,891
Tax equivalent adjustment	6,483			6,657			6,800			6,921			7,090			26,861			28,616
Net interest income on a fully tax equivalent basis	159,876			163,604			155,794			149,964			152,304			629,238			546,507
Plus non-interest income	89,319			95,264			90,517			91,773			92,823			366,873			374,903
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance	814			711			701			694			709			2,919			2,194
Less net gain on investment securities	111			83			137			231			178			562			447
Less net loss on disposal of other assets	(2,016		)	(180		)	(4		)	(123		)	(749		)	(2,323		)	(794		)
Less recovery of low to moderate income real estate investment	1,006			210			488			—			—			1,704			—
Less increase in market value of assets held in trust for deferred compensation	912			796			669			961			141			3,338			1,340
Non-interest income - as adjusted	90,120			95,066			89,928			91,398			93,962			366,511			376,104
Total revenue - as adjusted and on a fully tax equivalent basis	$	249,996		$	258,670		$	245,722		$	241,362		$	246,266		$	995,749		$	922,611
Efficiency ratio	65.31		%	61.14		%	64.19		%	63.99		%	64.62		%	63.63		%	64.02		%
Efficiency ratio (without adjustments)	72.24		%	64.35		%	69.12		%	66.29		%	69.64		%	67.97		%	69.43		%

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The following table presents the annualized net non-interest expense to average assets ratio calculation (dollars in thousands):

																Year Ended
																December 31,
	4Q17			3Q17			2Q17			1Q17			4Q16			2017			2016
Non-interest expense - as adjusted (1)	$	163,268		$	158,160		$	157,724		$	154,446		$	159,128		$	633,598		$	590,644
Less non-interest income - as adjusted (1)	90,120			95,066			89,928			91,398			93,962			366,511			376,104
Net non-interest expense - as adjusted	$	73,148		$	63,094		$	67,796		$	63,048		$	65,166		$	267,087		$	214,540
Average assets	$	20,166,673		$	19,945,855		$	19,389,463		$	19,002,982		$	19,192,747		$	19,630,307		$	16,924,472
Annualized net non-interest expense to average assets	1.44		%	1.25		%	1.40		%	1.35		%	1.35		%	1.36		%	1.27		%
Annualized net non-interest expense to average assets (without adjustments)	1.70		%	1.34		%	1.56		%	1.35		%	1.51		%	1.49		%	1.45		%

⁽¹⁾  See "Efficiency Ratio Calculation" table for reconciliation of this item.

The following table presents the core non-interest income to revenues ratio calculation (dollars in thousands):

																Year Ended
																December 31,
	4Q17			3Q17			2Q17			1Q17			4Q16			2017			2016
Non-interest income - as adjusted (1)	$	90,120		$	95,066		$	89,928		$	91,398		$	93,962		$	366,511		$	376,104
Total revenue - as adjusted and on a fully tax equivalent basis (1)	$	249,996		$	258,670		$	245,722		$	241,362		$	246,266		$	995,749		$	922,611
Core non-interest income to revenues ratio	36.05		%	36.75		%	36.60		%	37.87		%	38.15		%	36.81		%	40.77		%
Non-interest income to revenues  ratio (without adjustments)	36.80		%	37.77		%	37.79		%	39.08		%	39.00		%	37.85		%	41.99		%

⁽¹⁾  See "Efficiency Ratio Calculation" table for reconciliation of this item.

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