MB Financial : EXHIBIT 99.1

EXHIBIT 99.1

	4Q18

MB FINANCIAL, INC. REPORTS FOURTH QUARTER 2018NET INCOME

CHICAGO, January 22, 2019- MB Financial, Inc. (the 'Company') (NASDAQ: MBFI), the holding company for MB Financial Bank, N.A., today announced fourth quarter 2018net income of $75.9 millioncompared to $42.7 millionlast quarter and $144.2 millionin the fourth quarter a year ago. Diluted earnings per common share were $0.85in the fourth quarter of 2018compared to $0.47last quarter and $1.67in the fourth quarter a year ago.

Annual net income for 2018was $213.9 millioncompared to $304.0 millionfor 2017. Diluted earnings per common share were $2.55for 2018compared to $3.49for 2017.

Net income and earnings per common share for the fourth quarter of 2017 and full year 2017 were positively impacted by a $104.2 million, or $1.23 per common share, tax benefit due to the enactment of the Tax Cuts and Jobs Act of 2017 (the 'TCJ Act'). Net income and earnings per common share for the fourth and third quarters of 2018 were also positively impacted by TCJ Act tax benefits of $8.2 million, or $0.10 per common share, and $2.2 million, or $0.03 per common share, respectively.

Operating Earnings (in thousands, except per share data)

The table below reconciles net income, as reported, to operating earnings excluding our Mortgage Banking Segment. As previously announced in April 2018, we have discontinued our national mortgage origination business (substantially all originations outside of the Company's consumer banking footprint in the Chicagoland area). Therefore, we believe operating earnings excluding our Mortgage Banking Segment better reflect our primary operations until the wind down of the segment is complete, as we are retaining the mortgage servicing asset and certain residential mortgage loans on our balance sheet and continue to originate residential mortgage loans in the Chicagoland area.

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Net income - as reported		$	75,911			$	42,714			$	38,533			$	56,757			$	144,194				$	213,915			$	304,040
Non-core items, net of tax(1)		(3,696		)		12,889				18,679				614				(96,814		)			28,486				(92,938		)
Operating earnings		72,215				55,603				57,212				57,371				47,380					242,401				211,102
Operating earnings (loss) - Mortgage Banking Segment		3,141				1,067				(3,359		)		(295		)		(815		)			554				5,494
Operating earnings, excluding Mortgage Banking Segment		69,074				54,536				60,571				57,666				48,195					241,847				205,608
Dividends on preferred shares		3,000				3,000				3,000				3,100				2,000					12,100				8,007
Operating earnings available to common stockholders, excluding Mortgage Banking Segment		$	66,074			$	51,536			$	57,571			$	54,566			$	46,195				$	229,747			$	197,601
Diluted earnings per common share - as reported(2)		$	0.85			$	0.47			$	0.42			$	0.81			$	1.67				$	2.55			$	3.49
Diluted operating earnings per common share, excluding Mortgage Banking Segment		$	0.77			$	0.60			$	0.68			$	0.64			$	0.54				$	2.70			$	2.33

(1)	Non-core items represent the difference between non-core non-interest income and non-core non-interest expense net of tax as well as other non-core tax items. See 'Non-GAAP Financial Information' section for details on non-core items starting on page 25.

(2)	The $0.81 diluted earnings per common share in the first quarter of 2018 were positively impacted by a $15.3 million, or $0.18 per common share, return from preferred stockholders due to the redemption of our 8% Series A non-cumulative perpetual preferred stock. The $15.3 million represents the excess carrying amount over the redemption price of the Series A preferred stock.

Key Items (4Q18 compared to 3Q18)

On May 20, 2018, we signed a definitive merger agreement with Fifth Third Bancorp ('Fifth Third'). We received the necessary stockholder approvals on September 18, 2018. The merger remains subject to regulatory approvals and other customary closing conditions.

•

Operating earnings, excluding the Mortgage Banking Segment, grew by $14.5 million, or 26.7%, to $69.1 millioncompared to the prior quarter. These results were attributable to the following items (net of income taxes): a $1.3 million increase in net interest income, a $4.7 million increase in lease financing revenue, a $7.0 million decrease in provision for credit losses, and a $5.2 million decrease in state income tax accruals, partly reduced by a $3.2 million increase in non-interest expenses.

•	Diluted operating earnings per common share, excluding the Mortgage Banking Segment, were $0.77compared to $0.60in the prior quarter.

•	Loan balances, excluding purchased credit-impaired loans, increased $107.2 million(+0.8%, or +3.1%annualized) to $14.0 billiondue to growth in commercial loan balances partly offset by decreases in construction and commercial real estate loan balances.

•	Average loan balances, excluding purchased credit-impaired loans, increased $44.5 million(+0.3%, or +1.3%annualized) to $13.8 billion.

•	Average yield on loans, excluding accretion on loans acquired in bank mergers, increased 14 basis points to 4.82% from 4.68% in the prior quarter as a result of increases in short-term interest rates.

•	Although the mix improved with an increase in non-interest bearing deposits offset by a decrease in money market account balances, low-cost deposits decreased $16.7 million(-0.1%, or -0.5%annualized) to $12.3 billion.

•	Average low-cost deposits decreased $109.5 million(-0.9%, or -3.4%annualized) to $12.5 billiondue to decreases in non-interest bearing and money market account balances.

•	Average cost of total deposits increased sixbasis points to 0.60%due to increases in interest rates paid on deposits.

•	Net interest margin on a fully tax equivalent basis, excluding accretion on loans acquired in bank mergers, increased 14basis points in the quarter to 3.84%. This increase was due to higher loan yields as a result of increases in short-term interest rates.

•	Average cost of funds increased twobasis points to 0.74%due to higher rates paid on deposits reduced by a decrease in the average cost of borrowings.

Operating Segments (4Q18 compared to 3Q18)

•	Operating earnings were $59.1 million, an increaseof $11.7 million, or 24.7%, compared to the prior quarter.

•	This increasewas due to a decrease in provision for credit losses and state income tax accruals partly offset by an increase in non-interest expenses.

•	Operating earnings were $10.0 million, an increaseof $2.8 million, or 39.8%, compared to the prior quarter.

•	This increasewas mostly due to higher residual gains and fees from the sale of third-party equipment maintenance contracts.

•	On April 12, 2018, we announced the discontinuation of our national mortgage origination business, which includes substantially all originations outside of the Company's consumer banking footprint in the Chicagoland area.

•	Operating earnings were $3.1 millioncompared to $1.1 millionin the prior quarter.

•	The wind down of our national mortgage origination business is proceeding as planned. We project that, excluding any impact of our pending merger with Fifth Third, our remaining mortgage operations will earn quarterly pretax income of approximately $7 million in 2019, consistent with prior projections.

Key Items - Full Year (2018 compared to 2017)

•	Operating earnings, excluding the Mortgage Banking Segment, increased $36.2 million, or 17.6%, to $241.8 millioncompared to the year ended December 31, 2017.

•

The growth in operating earnings, excluding the Mortgage Banking Segment, resulted from the following items (net of income tax): a $30.5 million increase in net interest income; a $14.7 million increase in our key fee initiatives revenue, mainly lease financing revenue; a $4.9 million increase in earnings from investments in Small Business Investment Companies; and an approximate $33 million decrease in income tax expense resulting from a lower effective tax rate. These items were partly offset by a $25.1 million increase in non-interest expense with more than half of the increase in salaries and benefits due to higher health insurance costs, annual salary increases, and higher bonus expense, and a $19.7 million increase in provision for credit losses, mostly due to higher charge-offs related to one loan relationship.

•	Diluted operating earnings per common share, excluding the Mortgage Banking Segment, were $2.70compared to $2.33in the year ended December 31, 2017.

Guidance on Selected Financial Items

In light of our pending merger with Fifth Third, we no longer provide forward-looking financial guidance or update previously provided financial guidance except as otherwise provided in this release with respect to our mortgage operations.

2

The Company currently 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. As a result of the discontinuation of our national mortgage origination business, we expect to stop operating the mortgage business as a defined segment with separate Mortgage Banking Segment reporting in 2019. 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 and non-core tax items.

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

																						Year Ended
																						December 31,
	4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Net interest income	$	153,426			$	152,003			$	146,614			$	140,471			$	140,180				$	592,514			$	550,499
Provision for credit losses	11,340				21,439				5,746				7,579				501					46,104				16,555
Net interest income after provision for credit losses	142,086				130,564				140,868				132,892				139,679					546,410				533,944
Non-interest income:
Lease financing revenue, net	2,400				3,420				2,165				1,535				1,795					9,520				5,763
Treasury management fees	14,287				15,226				15,066				15,156				15,234					59,735				58,930
Wealth management fees	9,204				9,089				8,969				9,121				9,024					36,383				34,744
Card fees	5,851				5,362				5,654				4,787				5,032					21,654				18,596
Capital markets and international banking fees	3,637				1,913				3,785				2,998				3,999					12,333				15,708
Other non-interest income	9,733				10,987				11,838				10,675				9,359					43,233				39,260
Total non-interest income	45,112				45,997				47,477				44,272				44,443					182,858				173,001
Non-interest expense:
Salaries and employee benefits expense:
Salaries	43,598				44,933				45,103				44,821				44,782					178,455				176,017
Commissions	790				1,097				941				953				1,119					3,781				4,224
Bonus and stock-based compensation	13,487				10,774				11,533				10,610				10,418					46,404				41,672
Other salaries and benefits(1)	17,576				17,339				15,721				15,207				14,119					65,843				55,126
Total salaries and employee benefits expense	75,451				74,143				73,298				71,591				70,438					294,483				277,039
Occupancy and equipment expense	13,153				13,400				13,308				14,089				13,769					53,950				50,556
Computer services and telecommunication expense	8,814				8,324				9,384				9,741				9,664					36,263				33,540
Professional and legal expense	2,570				1,347				4,846				1,359				1,967					10,122				6,261
Other operating expenses	18,399				18,479				18,665				16,745				18,817					72,288				72,622
Total non-interest expense	118,387				115,693				119,501				113,525				114,655					467,106				440,018
Income before income taxes	68,811				60,868				68,844				63,639				69,467					262,162				266,927
Income tax expense	9,715				13,468				15,237				14,539				25,734					52,959				81,881
Operating earnings	$	59,096			$	47,400			$	53,607			$	49,100			$	43,733				$	209,203			$	185,046
Total assets (period end)	$	17,070,713			$	16,677,552			$	16,581,205			$	16,582,585			$	16,448,960				$	17,070,713			$	16,448,960

(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 2018 increased $11.7 million, or 24.7%, compared to the prior quarter.

•	Net interest income increased due to higher yields on loans partly offset by a higher cost of deposits.

•	Provision for credit losses decreased as the prior quarter was unfavorably impacted by higher charge-offs on one loan relationship.

•	Non-interest income decreased $885 thousandcompared to the prior quarter.

•	Lease financing revenue decreased due to lower earnings from equity investments in leases and lower residual gains.

•	Treasury management fees declined as a result of an increasing earnings credit rate for our commercial customers and lower average non-interest bearing deposits.

•	Other non-interest income decreased as a result of lower earnings from investments in Small Business Investment Companies ('SBICs').

3

•	These decreases were partly offset by an increase in capital markets and international banking fees as a result of higher swap and international banking fees.

•	Non-interest expense increased $2.7 millioncompared to the prior quarter.

•	Salaries and employee benefits increased due to higher temporary help as a result of higher employee turnover and higher bonus expenses due to better than expected performance, reduced by decreases in salaries and health insurance expense as a result of fewer claims.

•	Professional and legal expenses increased as a result of higher consulting expense related to information technology security.

•	Fourth quarter income tax expense includes a $5.2 million decrease in state income tax accruals as a result of income allocation to lower income tax rate jurisdictions.

Banking Segment operating earnings for the year ended December 31, 2018 increased $24.2 million, or 13.1%, compared to the prior year.

•	Net interest income increased due to higher average loan yields and balances partly offset by a higher cost of funds. Our average yield on loans and cost of funds increased as a result of an increase in short-term interest rates.

•	Provision for credit losses increased as a result of higher charge-offs during the second half of 2018 related to one loan relationship.

•	Non-interest income increased $9.9 millioncompared to the prior year.

•	Lease financing revenue increased due to higher earnings from investments in leasing companies and higher residual gains.

•	Card fees increased as a result of increased sales and volume in prepaid cards and higher credit card usage.

•	Other non-interest income increased due to stronger earnings from investments in SBICs.

•	These increases were partly reduced by a decrease in capital markets and international banking fees due to decreases in swap and syndication fees.

•	Non-interest expense increased $27.1 millioncompared to the prior year.

•	Salaries and employee benefits expense increased due to higher health insurance costs as a result of an increase in claims, higher bonus and stock based compensation expense, annual salary increases, and higher 401(k) and profit sharing contributions expense.

•	Occupancy and equipment expense increased due to higher building and software depreciation.

•	Computer services and telecommunication expense increased due to previous investments in new technology.

•	Professional and legal fees increased as a result of case settlements, other legal fees, and consulting expense related to information technology security.

•	Income tax expense decreased as a result of a decline in the effective tax rate related to the TCJ Act.

4

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

																						Year Ended
																						December 31,
	4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Net interest income	$	2,572			$	2,160			$	2,349			$	2,482			$	2,602				$	9,563			$	9,902
Provision for credit losses	638				90				500				(24		)		3,184					1,204				3,858
Net interest income after provision for credit losses	1,934				2,070				1,849				2,506				(582		)			8,359				6,044
Non-interest income:
Lease financing revenue, net	29,263				21,810				21,435				23,938				22,576					96,446				82,837
Other non-interest income	328				1,304				1,160				899				1,168					3,691				3,043
Total non-interest income	29,591				23,114				22,595				24,837				23,744					100,137				85,880
Non-interest expense:
Salaries and employee benefits expense:
Salaries	7,112				5,926				6,021				5,917				5,361					24,976				19,823
Commissions	2,023				2,662				1,892				2,520				2,777					9,097				9,792
Bonus and stock-based compensation	1,661				1,207				1,205				974				1,761					5,047				4,989
Other salaries and benefits(1)	1,211				1,338				1,613				1,809				1,329					5,971				6,005
Total salaries and employee benefits expense	12,007				11,133				10,731				11,220				11,228					45,091				40,609
Occupancy and equipment expense	1,242				1,128				1,110				1,167				1,090					4,647				4,115
Computer services and telecommunication expense	693				474				492				505				595					2,164				1,940
Professional and legal expense	422				353				323				373				457					1,471				1,651
Other operating expenses	3,306				2,480				2,500				2,212				2,101					10,498				8,867
Total non-interest expense	17,670				15,568				15,156				15,477				15,471					63,871				57,182
Income before income taxes	13,855				9,616				9,288				11,866				7,691					44,625				34,742
Income tax expense	3,877				2,480				2,324				3,300				3,229					11,981				14,180
Operating earnings	$	9,978			$	7,136			$	6,964			$	8,566			$	4,462				$	32,644			$	20,562
Total assets (period end)	$	1,464,380			$	1,340,901			$	1,354,940			$	1,360,117			$	1,403,690				$	1,464,380			$	1,403,690

(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 2018 increased $2.8 millioncompared to the prior quarter.

•	Provision for credit losses increased as a result of the increase in loan balances during the quarter.

•	Lease financing revenue increased due to higher residual gains and fees from the sale of third-party equipment maintenance contracts.

•	Non-interest expense increased due to higher salaries and employee benefits expense related to the investment in sales and other revenue generating staff partly reduced by a decrease in commissions due to higher deferrals of indirect costs resulting from more deals during the quarter. In addition, non-interest expense increased due to higher marketing expense at promotional events.

•	Total assets increased mostly due to growth in lease investments.

Leasing Segment operating earnings for the year ended December 31, 2018 increased $12.1 million, or 58.8%, compared to the prior year.

•	Lease financing revenue increased as a result of higher residual gains, rental income due to an increase in operating leases, and promotional income attributable to our investment in sales and other revenue generating staff.

•	Provision for credit losses was lower due to decreased loan charge-offs.

•	Non-interest expense increased due to higher salaries and employee benefits expense as a result of increased salaries related to the investment in sales and other revenue generating staff and an increase in other operating expenses.

5

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

																						Year Ended
																						December 31,
	4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Net interest income	$	7,507			$	7,685			$	10,106			$	10,428			$	10,611				$	35,726			$	41,976
Provision for credit losses	(7		)		(26		)		(27		)		(47		)		(42		)			(107		)		1,180
Net interest income after provision for credit losses	7,514				7,711				10,133				10,475				10,653					35,833				40,796
Non-interest income:
Mortgage origination revenue	1,349				1,907				13,334				17,854				18,146					34,444				86,871
Mortgage servicing revenue	8,277				8,009				5,592				7,193				4,228					29,071				22,353
Other non-interest income	-				13				11				1				-					25				1
Total non-interest income	9,626				9,929				18,937				25,048				22,374					63,540				109,225
Non-interest expense:
Salaries and employee benefits expense:
Salaries	3,888				5,375				12,033				13,849				12,322					35,145				47,317
Commissions	753				1,189				4,790				3,962				4,407					10,694				21,834
Bonus and stock-based compensation	442				392				115				471				1,153					1,420				3,425
Other salaries and benefits(1)	1,739				2,149				4,539				4,924				4,705					13,351				19,381
Total salaries and employee benefits expense	6,822				9,105				21,477				23,206				22,587					60,610				91,957
Occupancy and equipment expense	927				1,273				2,032				2,138				1,868					6,370				7,756
Computer services and telecommunication expense	945				1,263				1,677				1,673				1,779					5,558				6,877
Professional and legal expense	632				174				266				162				490					1,234				2,152
Other operating expenses	3,527				4,368				8,159				8,749				7,673					24,803				32,170
Total non-interest expense	12,853				16,183				33,611				35,928				34,397					98,575				140,912
Income (loss) before income taxes	4,287				1,457				(4,541		)		(405		)		(1,370		)			798				9,109
Income tax (benefit) expense	1,146				390				(1,182		)		(110		)		(555		)			244				3,615
Operating (loss) earnings	$	3,141			$	1,067			$	(3,359	)		$	(295	)		$	(815	)			$	554			$	5,494
Total assets (period end)(2)	$	1,671,933			$	1,701,518			$	2,030,412			$	2,224,821			$	2,234,290				$	1,671,933			$	2,234,290

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

(2)	The decrease in total assets subsequent to the first quarter of 2018 was due to the decrease in loans held for sale as a result of the wind down of the national mortgage origination business.

On April 12, 2018, the Company announced that it will be discontinuing its national mortgage origination business, which includes substantially all originations outside of the Company's consumer banking footprint in the Chicagoland area.

As expected with the wind down, total non-interest income declined faster than expenses. The first phase of staff reductions was completed in early July 2018, and staff reductions continued through the remainder of 2018. The wind down is expected to be completed in the first quarter of 2019. We project that, excluding any impact of the pending Fifth Third merger, remaining operations will earn quarterly pre-tax income of approximately $7 million, consistent with prior projections. We also expect one-time exit expenses to be approximately $35 million, which is down from the previously announced range of $37 to $41 million. We recognized approximately $32 million of such expenses in the year ended December 31, 2018.

6

Additional Mortgage Banking Segment Data

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

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Mortgage origination revenue:
Gain on sale revenue, net		$	691			$	1,303			$	9,756			$	11,652			$	13,376				$	23,402			$	64,081
Origination fees(1)		658				604				3,578				6,202				4,770					11,042				22,790
Total mortgage origination revenue		$	1,349			$	1,907			$	13,334			$	17,854			$	18,146				$	34,444			$	86,871
Mortgage servicing revenue:
Servicing fees		$	16,314			$	15,953			$	15,707			$	16,068			$	14,802				$	64,042			$	57,133
Amortization/prepayment of mortgage servicing rights(2)		(7,377		)		(8,418		)		(8,894		)		(8,015		)		(9,037		)			(32,704		)		(32,001		)
Fair value changes of mortgage servicing rights		(4,285		)		2,521				1,193				10,890				7,231					10,319				9,594
Economic hedge activity, net		3,625				(2,047		)		(2,414		)		(11,750		)		(8,768		)			(12,586		)		(12,373		)
Fair value changes of mortgage servicing rights net of economic hedge activity(3)		(660		)		474				(1,221		)		(860		)		(1,537		)			(2,267		)		(2,779		)
Total mortgage servicing revenue		$	8,277			$	8,009			$	5,592			$	7,193			$	4,228				$	29,071			$	22,353
Mortgage servicing rights, at fair value:
Beginning balance		$	295,803			$	296,629			$	291,561			$	276,279			$	261,446				$	276,279			$	238,011
Originations/purchases		757				5,071				12,769				12,407				16,639					31,004				60,675
Amortization/prepayment(2)		(7,377		)		(8,418		)		(8,894		)		(8,015		)		(9,037		)			(32,704		)		(32,001		)
Fair value changes		(4,285		)		2,521				1,193				10,890				7,231					10,319				9,594
Ending balance		$	284,898			$	295,803			$	296,629			$	291,561			$	276,279				$	284,898			$	276,279
Mortgage servicing book (unpaid principal balance of loans serviced for others)		$	21,886,440			$	22,382,822			$	22,643,179			$	22,362,896			$	21,993,128				$	21,886,440			$	21,993,128
Mortgage servicing rights valuation		1.30		%		1.32		%		1.31		%		1.30		%		1.26		%			1.30		%		1.26		%

(1)	2017 amounts were revised as certain costs to originate mortgage loans were reclassified from mortgage origination revenue to other operating expenses.

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

(3)

Approximately $500 thousand of the second quarter 2018 fair value change was due to an increase in delinquencies in the quarter resulting in higher than anticipated collection costs and lower mortgage servicing rights asset value. In addition, approximately $300 thousand of the fair value change was due to higher than expected prepayments of mortgage servicing rights in the second quarter of 2018. Approximately $800 thousand of the fourth quarter 2017 fair value change was due to an increase in delinquencies in the quarter.

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 ability to satisfy closing conditions to our pending merger with Fifth Third on the expected terms and schedule; (2) the ability to obtain regulatory approvals required to complete our pending merger with Fifth Third, and the timing and conditions for such approvals; (3) delays in closing our pending merger with Fifth Third; (4) disruptions to our business resulting from our pending merger with Fifth Third; (5) 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; (6) the quality and composition of our securities portfolio; (7) competitive pressures among depository institutions; (8) interest rate movements and their impact on customer behavior, net interest margin and the value of our mortgage servicing rights; (9) if changes in interest rates negatively impact the value of our mortgage servicing rights; (10) the impact of repricing and competitors' pricing initiatives on loan and deposit products; (11) fluctuations in real estate values; (12) 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; (13) our ability to adapt successfully to technological changes to meet customers' needs and developments in the market place; (14) 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; (15) our ability to realize the residual values of our direct finance, leveraged, and operating leases; (16) the risk that funds obtained from capital raising activities will not be utilized efficiently or effectively; (17) expected revenues, cost savings, synergies, and other benefits from our other merger and acquisition activities 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; (18) our ability to access cost-effective funding; (19) changes in financial markets; (20) changes in economic conditions in general and in the Chicago metropolitan area in particular; (21) the costs, effects, and outcomes of litigation; (22) 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 TCJ Act, or interpretations thereof by taxing authorities; (23) changes in accounting principles, policies or guidelines; and (24) 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)		12/31/2018				9/30/2018				6/30/2018				3/31/2018				12/31/2017
ASSETS
Cash and due from banks		$	503,153			$	342,933			$	373,448			$	332,234			$	397,880
Interest earning deposits with banks		147,254				87,740				119,672				50,624				181,341
Total cash and cash equivalents		650,407				430,673				493,120				382,858				579,221
Investment securities:
Securities available for sale, at fair value		1,855,682				1,710,636				1,647,260				1,679,011				1,408,326
Securities held to maturity, at amortized cost		901,684				923,082				923,036				933,319				959,082
Marketable equity securities, at fair value		11,075				10,901				10,922				11,124				-
Non-marketable securities - FHLB and FRB Stock		113,957				107,407				115,453				118,955				114,111
Total investment securities		2,882,398				2,752,026				2,696,671				2,742,409				2,481,519
Loans held for sale		45,550				51,834				423,367				561,549				548,578
Loans:
Total loans, excluding purchased credit-impaired loans		13,951,082				13,843,880				13,719,244				13,824,990				13,846,318
Purchased credit-impaired loans		84,101				91,072				101,001				109,990				119,744
Total loans		14,035,183				13,934,952				13,820,245				13,934,980				13,966,062
Less: Allowance for loan and lease losses		161,578				155,411				162,790				161,712				157,710
Net loans		13,873,605				13,779,541				13,657,455				13,773,268				13,808,352
Lease investments, net		487,776				429,843				433,505				408,798				409,051
Premises and equipment, net		270,614				274,006				281,458				281,791				286,690
Cash surrender value of life insurance		208,581				207,280				205,982				204,710				203,602
Goodwill		999,925				999,925				999,925				1,003,548				1,003,548
Other intangibles		46,914				49,114				50,968				52,864				54,766
Mortgage servicing rights, at fair value		284,898				295,803				296,629				291,561				276,279
Other real estate owned, net		9,182				10,933				10,869				10,528				9,736
Other real estate owned related to FDIC transactions		1,182				2,661				2,908				4,185				4,788
Other assets		445,994				436,332				413,700				449,454				420,810
Total assets		$	20,207,026			$	19,719,971			$	19,966,557			$	20,167,523			$	20,086,940
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Non-interest bearing		$	6,152,163			$	6,036,012			$	6,347,208			$	6,385,149			$	6,381,512
Interest bearing		8,502,050				8,672,781				8,575,455				8,585,444				8,576,866
Total deposits		14,654,213				14,708,793				14,922,663				14,970,593				14,958,378
Short-term borrowings		1,470,055				903,355				651,462				717,679				861,039
Long-term borrowings		349,681				451,677				730,292				851,221				505,158
Junior subordinated notes issued to capital trusts		121,118				133,995				194,450				194,304				211,494
Accrued expenses and other liabilities		577,111				556,822				518,997				499,379				541,048
Total liabilities		17,172,178				16,754,642				17,017,864				17,233,176				17,077,117
Stockholders' Equity
Preferred stock		194,719				194,719				194,719				194,719				309,999
Common stock		862				862				861				860				858
Additional paid-in capital		1,708,319				1,703,404				1,698,057				1,692,650				1,691,007
Retained earnings		1,199,485				1,147,060				1,127,814				1,112,323				1,065,303
Accumulated other comprehensive (loss) income		(4,864		)		(17,186		)		(9,818		)		(3,719		)		3,584
Treasury stock		(63,673		)		(63,530		)		(62,940		)		(62,486		)		(60,928		)
Total stockholders' equity		3,034,848				2,965,329				2,948,693				2,934,347				3,009,823
Total liabilities and stockholders' equity		$	20,207,026			$	19,719,971			$	19,966,557			$	20,167,523			$	20,086,940

9

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

																							Year Ended
																							December 31,
(Dollars in thousands, except per share data)		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Interest income:
Loans:
Taxable		$	170,283			$	168,190			$	164,401			$	157,119			$	154,631				$	659,993			$	587,234
Nontaxable		2,508				2,146				2,330				2,271				2,362					9,255				10,665
Investment securities:
Taxable		11,323				10,366				10,578				7,934				7,696					40,201				33,975
Nontaxable		9,474				9,387				9,439				9,476				9,677					37,776				39,218
Other interest earning accounts and Federal funds sold		356				1,650				244				131				600					2,381				1,354
Total interest income		193,944				191,739				186,992				176,931				174,966					749,606				672,446
Interest expense:
Deposits		22,367				20,485				17,386				15,032				13,552					75,270				40,685
Short-term borrowings		3,337				2,317				2,769				2,516				3,257					10,939				14,697
Long-term borrowings and junior subordinated notes		4,735				7,089				7,768				6,002				4,764					25,594				14,687
Total interest expense		30,439				29,891				27,923				23,550				21,573					111,803				70,069
Net interest income		163,505				161,848				159,069				153,381				153,393					637,803				602,377
Provision for credit losses		11,971				21,503				6,219				7,508				3,643					47,201				21,593
Net interest income after provision for credit losses		151,534				140,345				152,850				145,873				149,750					590,602				580,784
Non-interest income:
Mortgage banking revenue		9,626				9,916				18,926				25,047				22,374					63,515				109,224
Lease financing revenue, net		31,657				25,205				22,918				24,710				23,620					104,490				86,587
Treasury management fees		14,287				15,226				15,066				15,156				15,234					59,735				58,930
Wealth management fees		9,204				9,089				8,969				9,121				9,024					36,383				34,744
Card fees		5,851				5,362				5,654				4,787				5,032					21,654				18,596
Capital markets and international banking fees		3,637				1,913				3,785				2,998				3,999					12,333				15,708
Consumer and other deposit service fees		3,031				3,051				2,929				2,912				3,261					11,923				13,333
Brokerage fees		1,182				1,138				1,050				864				942					4,234				4,321
Loan service fees		2,252				2,103				2,148				2,245				2,197					8,748				8,317
Increase in cash surrender value of life insurance		1,301				1,298				1,272				1,108				1,511					4,979				5,421
Net gain (loss) on investment securities		89				(85		)		(86		)		(174		)		111					(256		)		562
Net loss on disposal of other assets		(10		)		(32		)		(397		)		(357		)		(2,016		)			(796		)		(2,323		)
Other operating income		(427		)		5,657				6,072				4,385				4,534					15,687				15,954
Total non-interest income		81,680				79,841				88,306				92,802				89,823					342,629				369,374
Non-interest expense:
Salaries and employee benefits expense		95,683				101,885				123,478				106,514				109,247					427,560				419,179
Occupancy and equipment expense		15,448				16,117				16,451				17,429				16,846					65,445				62,556
Computer services and telecommunication expense		10,745				12,684				10,871				11,156				11,304					45,456				40,591
Advertising and marketing expense		2,783				3,432				3,342				3,863				3,271					13,420				12,235
Professional and legal expense		4,162				2,586				8,887				1,898				2,957					17,533				10,207
Other intangible amortization expense		2,199				1,854				1,896				1,902				1,979					7,851				8,193
Branch exit and facilities impairment charges		613				3,292				340				-				(327		)			4,245				8,353
Net loss (gain) recognized on other real estate owned and other related expense		841				248				1,048				47				(104		)			2,184				1,344
Loss on extinguishment of debt		2,507				6,255				-				3,136				-					11,898				-
Goodwill impairment loss		-				-				3,623				-				-					3,623				-
Other operating expenses		16,657				20,191				23,056				21,941				30,655					81,845				98,685
Total non-interest expense		151,638				168,544				192,992				167,886				175,828					681,060				661,343
Income before income taxes		81,576				51,642				48,164				70,789				63,745					252,171				288,815
Income tax expense (benefit)		5,665				8,928				9,631				14,032				(80,449		)			38,256				(15,225		)
Net income		75,911				42,714				38,533				56,757				144,194					213,915				304,040
Dividends on preferred shares		3,000				3,000				3,000				3,100				2,000					12,100				8,007
Return from preferred stockholders due to redemption		-				-				-				(15,280		)		-					(15,280		)		-
Net income available to common stockholders		$	72,911			$	39,714			$	35,533			$	68,937			$	142,194				$	217,095			$	296,033

10

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Common share data:
Basic earnings per common share		$	0.86			$	0.47			$	0.42			$	0.82			$	1.69				$	2.58			$	3.53
Diluted earnings per common share		0.85				0.47				0.42				0.81				1.67					2.55				3.49
Diluted operating earnings per common share, excluding Mortgage Banking Segment		0.77				0.60				0.68				0.64				0.54					2.70				2.33
Weighted average common shares outstanding for basic earnings per common share		84,414,900				84,369,519				84,253,966				84,065,681				83,946,637					84,277,230				83,836,732
Weighted average common shares outstanding for diluted earnings per common share		85,337,028				85,335,109				85,251,810				84,896,401				84,964,759					85,206,300				84,823,456
Common shares outstanding (at end of period)		84,276,514				84,220,671				84,194,594				84,052,547				83,917,892					84,276,514				83,917,892

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Performance Ratios:
Annualized return on average assets		1.53		%		0.85		%		0.77		%		1.15		%		2.84		%			1.07		%		1.55		%
Annualized operating return, excluding Mortgage Banking Segment, on average assets(1)		1.52				1.19				1.35				1.32				1.07					1.35				1.18
Annualized return on average common equity		10.38				5.71				5.20				10.32				21.87					7.90				11.71
Annualized operating return, excluding Mortgage Banking Segment, on average common equity(1)		9.40				7.41				8.42				8.17				7.10					8.36				7.82
Annualized cash return on average tangible common equity(2)		16.87				9.46				8.70				17.12				36.90					13.02				20.23
Annualized cash operating return, excluding Mortgage Banking Segment, on average tangible common equity(3)		15.32				12.18				13.89				13.62				12.21					13.76				13.62
Efficiency ratio(4)		59.24				60.35				66.80				65.62				65.38					63.02				63.72
Efficiency ratio, excluding Mortgage Banking Segment(4)		58.09				57.90				60.40				59.72				59.48					59.00				58.46
Annualized net non-interest expense to average assets(5)		1.29				1.35				1.57				1.43				1.44					1.41				1.36
Core non-interest income to revenues(6)		33.68				32.49				35.34				37.45				36.18					34.75				36.97
Core non-interest income to revenues, excluding Mortgage Banking Segment(6)		32.04				30.63				31.43				31.97				31.38					31.52				30.67
Net interest margin - fully tax equivalent basis(7)		3.91				3.81				3.73				3.67				3.63					3.78				3.70
Net interest margin - fully tax equivalent basis excluding acquisition accounting discount accretion on bank merger loans(8)		3.84				3.70				3.62				3.55				3.49					3.68				3.52
Cost of funds(9)		0.74				0.72				0.67				0.58				0.51					0.68				0.43
Loans to deposits		95.78				94.74				92.61				93.08				93.37					95.78				93.37
Asset Quality Ratios:
Non-performing loans(10)to total loans		0.50		%		0.53		%		0.50		%		0.44		%		0.55		%			0.50		%		0.55		%
Non-performing assets(10)to total assets		0.40				0.43				0.40				0.36				0.43					0.40				0.43
Allowance for loan and lease losses to non-performing loans(10)		229.61				210.78				237.56				263.72				205.33					229.61				205.33
Allowance for loan and lease losses to total loans		1.15				1.12				1.18				1.16				1.13					1.15				1.13
Net loan charge-offs (recoveries) to average loans, excluding loans held for sale (annualized)		0.21				0.82				0.15				0.10				0.16					0.32				0.03
Capital Ratios:
Tangible equity to tangible assets(11)		10.43		%		10.33		%		10.10		%		9.89		%		10.32		%			10.43		%		10.32		%
Tangible common equity to tangible assets(12)		9.42				9.28				9.07				8.87				8.70					9.42				8.70
Tangible common equity to risk weighted assets(13)		10.37				10.07				9.99				9.85				9.71					10.37				9.71
Total capital to risk-weighted assets(14)		13.67				13.48				13.75				13.57				14.23					13.67				14.23
Tier 1 capital to risk-weighted assets(14)		11.25				10.96				10.81				10.64				11.20					11.25				11.20
Common equity tier 1 capital to risk-weighted assets(14)		10.14				9.83				9.68				9.51				9.40					10.14				9.40
Tier 1 capital to average assets (leverage ratio)(14)		10.50				9.99				9.74				9.73				10.02					10.50				10.02

11

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Performance Ratios:
Per Share Data:
Book value per common share(15)		$	33.70			$	32.90			$	32.71			$	32.59			$	32.17				$	33.70			$	32.17
Less: goodwill and other intangible assets, net of benefit, per common share		12.27				12.30				12.32				12.40				12.44					12.27				12.44
Tangible book value per common share(16)		$	21.43			$	20.60			$	20.39			$	20.19			$	19.73				$	21.43			$	19.73
Cash dividends per common share		$	0.24			$	0.24			$	0.24			$	0.24			$	0.21				$	0.96			$	0.82

(1)

Annualized operating return, excluding Mortgage Banking Segment, on average assets is computed by dividing annualized operating earnings, excluding Mortgage Banking Segment, by average total assets. Annualized operating return, excluding Mortgage Banking Segment, on average common equity is computed by dividing annualized operating earnings, excluding Mortgage Banking Segment, less dividends on preferred shares by average common equity. Operating earnings, excluding Mortgage Banking Segment, is defined as net income as reported less non-core items, net of tax and less operating earnings (loss) from our Mortgage Banking Segment.

(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, excluding Mortgage Banking Segment, on average tangible common equity is computed by dividing annualized cash operating earnings, excluding Mortgage Banking Segment (operating earnings, excluding Mortgage Banking Segment, plus other intangibles amortization expense, net of tax benefit, less dividends on preferred shares) by average tangible common equity. Operating earnings, excluding Mortgage Banking Segment, is defined as net income as reported less non-core items, net of tax and less operating earnings (loss) from our Mortgage Banking Segment.

(4)

The efficiency ratio is calculated by dividing total non-interest expense excluding non-core items 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. The efficiency ratio, excluding Mortgage Banking Segment is calculated the same as the efficiency ratio but excludes the non-interest expense, net interest income on a fully tax equivalent basis, and non-interest income from the Mortgage Banking Segment.

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

(6)

Core non-interest income to revenues is calculated by dividing total non-interest income excluding non-core items and tax equivalent adjustment on the increase in cash surrender value of life insurance 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. Core non-interest income to revenues, excluding Mortgage Banking Segment is calculated the same as core non-interest income to revenues but excludes the non-interest income and net interest income on a fully tax equivalent basis from the Mortgage Banking Segment.

(7)	Represents net interest income on a fully tax equivalent basis assuming a Federal tax rate of 21% for 2018 and 35% for 2017, as a percentage of average interest earning assets.

(8)	Represents net interest income on a fully tax equivalent basis assuming a Federal tax rate of 21% for 2018 and 35% for 2017, 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 exclude purchased credit-impaired loans and loans held for sale. Non-performing assets exclude 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.

See 'Non-GAAP Financial Information' section for details on non-GAAP measures and reconciliations starting on page 25.

BALANCE SHEET DETAILS TO FOLLOW

12

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

		12/31/2018				9/30/2018				6/30/2018				3/31/2018				12/31/2017
Securities available for sale:
Fair value
U.S. Treasury securities		$	75,141			$	-			$	-			$	-			$	-
Government sponsored agencies and enterprises		5,024				5,002				5,026				22,885				23,007
States and political subdivisions		341,477				343,256				350,061				366,906				379,325
Mortgage-backed securities		1,434,040				1,357,314				1,269,003				1,251,229				924,734
Corporate bonds		-				5,064				23,170				37,991				70,197
Equity securities(1)		-				-				-				-				11,063
Total fair value		$	1,855,682			$	1,710,636			$	1,647,260			$	1,679,011			$	1,408,326
Unrealized gain (loss)
U.S. Treasury securities		$	2			$	-			$	-			$	-			$	-
Government sponsored agencies and enterprises		(52		)		(85		)		(72		)		(63		)		(6		)
States and political subdivisions		9,429				8,222				11,134				11,848				15,512
Mortgage-backed securities		(11,867		)		(28,026		)		(20,502		)		(15,166		)		(8,414		)
Corporate bonds		-				(1		)		(9		)		(29		)		42
Equity securities(1)		-				-				-				-				(173		)
Total unrealized gain		$	(2,488	)		$	(19,890	)		$	(9,449	)		$	(3,410	)		$	6,961
Securities held to maturity, at cost:
States and political subdivisions		$	887,028			$	899,865			$	884,576			$	874,306			$	878,400
Mortgage-backed securities		14,656				23,217				38,460				59,013				80,682
Total amortized cost		$	901,684			$	923,082			$	923,036			$	933,319			$	959,082

(1)	Reflected in marketable equity securities on the consolidated balance sheet following the adoption of the new investments in equity securities guidance on January 1, 2018.

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, 2018.

13

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):

		12/31/2018							9/30/2018							6/30/2018							3/31/2018							12/31/2017
		Amount				% of Total			Amount				% of Total			Amount				% of Total			Amount				% of Total			Amount				% of Total
Commercial-related loans:
Commercial		$	5,169,763			36	%		$	4,936,536			35	%		$	4,816,545			35	%		$	4,790,803			34	%		$	4,786,180			34	%
Commercial loans collateralized by assignment of lease payments (lease loans)		2,084,170				15			2,065,588				15			2,100,460				15			2,095,189				15			2,113,135				15
Commercial real estate		3,720,255				27			3,832,032				28			3,929,327				28			4,093,045				29			4,147,529				30
Construction real estate		506,837				4			548,882				4			495,805				4			479,638				4			406,849				3
Total commercial-related loans		11,481,025				82			11,383,038				82			11,342,137				82			11,458,675				82			11,453,693				82
Other loans:
Residential real estate(1)		1,397,598				10			1,403,087				10			1,352,625				10			1,391,900				10			1,432,458				10
Indirect vehicle		817,108				5			790,573				5			749,983				5			692,642				5			667,928				4
Home equity		172,890				1			181,477				1			192,785				1			202,920				1			219,098				2
Consumer		82,461				1			85,705				1			81,714				1			78,853				1			73,141				1
Total other loans		2,470,057				17			2,460,842				17			2,377,107				17			2,366,315				17			2,392,625				17
Total loans, excluding purchased credit-impaired loans		13,951,082				99			13,843,880				99			13,719,244				99			13,824,990				99			13,846,318				99
Purchased credit-impaired loans		84,101				1			91,072				1			101,001				1			109,990				1			119,744				1
Total loans		$	14,035,183			100	%		$	13,934,952			100	%		$	13,820,245			100	%		$	13,934,980			100	%		$	13,966,062			100	%
Change in total loans, excluding purchased credit-impaired loans:
From prior quarter		+0.8		%					+0.9		%					-0.8		%					-0.2		%					+0.7		%
From same quarter one year ago		+0.8		%					+0.7		%					+1.9		%					+8.1		%					+9.8		%

(1)	Reflects a $75.5 million transfer as of September 30, 2018 from loans held for sale of GNMA loans previously sold that were eligible for repurchase.

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):

		4Q18							3Q18							2Q18							1Q18							4Q17
		Amount				% of Total			Amount				% of Total			Amount				% of Total			Amount				% of Total			Amount				% of Total
Commercial-related loans:
Commercial		$	4,943,611			36	%		$	4,906,844			35	%		$	4,770,098			34	%		$	4,750,035			34	%		$	4,638,618			34	%
Commercial loans collateralized by assignment of lease payments (lease loans)		2,050,265				15			2,029,053				15			2,065,688				15			2,084,396				15			2,074,655				15
Commercial real estate		3,793,329				27			3,883,132				28			4,033,421				29			4,133,826				30			4,131,179				30
Construction real estate		516,238				4			511,193				4			491,440				4			443,329				3			410,416				3
Total commercial-related loans		11,303,443				82			11,330,222				82			11,360,647				82			11,411,586				82			11,254,868				82
Other loans:
Residential real estate		1,397,719				10			1,355,501				10			1,371,020				10			1,415,374				10			1,430,219				10
Indirect vehicle		806,139				5			770,047				5			720,052				5			676,590				5			663,474				4
Home equity		178,585				1			187,347				1			199,334				1			211,729				1			223,445				2
Consumer		85,414				1			83,677				1			82,189				1			76,606				1			76,249				1
Total other loans		2,467,857				17			2,396,572				17			2,372,595				17			2,380,299				17			2,393,387				17
Total loans, excluding purchased credit-impaired loans		13,771,300				99			13,726,794				99			13,733,242				99			13,791,885				99			13,648,255				99
Purchased credit-impaired loans		86,872				1			94,916				1			105,781				1			113,942				1			127,781				1
Total loans		$	13,858,172			100	%		$	13,821,710			100	%		$	13,839,023			100	%		$	13,905,827			100	%		$	13,776,036			100	%
Change in total loans, excluding purchased credit-impaired loans:
From prior quarter		+0.3		%					-0.1		%					-0.4		%					+1.1		%					+1.3		%
From same quarter one year ago		+0.9		%					+1.9		%					+5.3		%					+10.1		%					+10.5		%

14

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):

		12/31/2018				9/30/2018				6/30/2018				3/31/2018				12/31/2017
Non-performing loans:
Non-accrual loans(1)		$	67,616			$	72,437			$	64,515			$	60,151			$	71,238
Loans 90 days or more past due, still accruing interest		2,755				1,294				4,010				1,169				5,570
Total non-performing loans		70,371				73,731				68,525				61,320				76,808
Other real estate owned		9,182				10,933				10,869				10,528				9,736
Repossessed assets		990				870				643				661				589
Total non-performing assets		$	80,543			$	85,534			$	80,037			$	72,509			$	87,133
Potential problem loans(2)		$	328,705			$	245,131			$	243,684			$	208,201			$	173,266
Purchased credit-impaired loans(3)		$	84,101			$	91,072			$	101,001			$	109,990			$	119,744
Total non-performing, potential problem and purchased credit-impaired loans		$	483,177			$	409,934			$	413,210			$	379,511			$	369,818
Total allowance for loan and lease losses		$	161,578			$	155,411			$	162,790			$	161,712			$	157,710
Accruing restructured loans(4)		22,793				22,970				25,660				28,591				28,554
Total non-performing loans to total loans		0.50		%		0.53		%		0.50		%		0.44		%		0.55		%
Total non-performing assets to total assets		0.40				0.43				0.40				0.36				0.43
Allowance for loan and lease losses to non-performing loans		229.61				210.78				237.56				263.72				205.33

(1)	Includes $22.0 million, $24.0 million, $26.2 million, $28.5 millionand $30.8 millionof restructured loans on non-accrual status at December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018, and December 31, 2017, 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 $36.6 million, $40.2 million, $43.6 million, $49.5 millionand $54.9 millionof Government National Mortgage Association ('GNMA') loans that have been repurchased at December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018, and December 31, 2017, 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.

Potential problem loans increased by $83.6 million, or 34.1%, due to an increase in downgraded loans in our commercial and health care portfolios.

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):

		12/31/2018				9/30/2018				6/30/2018				3/31/2018				12/31/2017
Commercial and lease		$	20,458			$	25,378			$	19,788			$	13,843			$	18,522
Commercial real estate		11,205				10,556				11,400				10,986				21,235
Consumer-related		38,708				37,797				37,337				36,491				37,051
Total non-performing loans		$	70,371			$	73,731			$	68,525			$	61,320			$	76,808

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,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Allowance for credit losses, at the beginning of period		$	157,419			$	164,578			$	163,390			$	159,408			$	161,404				$	159,408			$	141,842
Provision for credit losses		11,971				21,503				6,219				7,508				3,643					47,201				21,593
Charge-offs		10,804				31,600				6,720				6,818				7,448					55,942				16,572
Recoveries		3,470				2,938				1,689				3,292				1,809					11,389				12,545
Net charge-offs		7,334				28,662				5,031				3,526				5,639					44,553				4,027
Allowance for credit losses, at end of period		162,056				157,419				164,578				163,390				159,408					162,056				159,408
Allowance for unfunded credit commitments		(478		)		(2,008		)		(1,788		)		(1,678		)		(1,698		)			(478		)		(1,698		)
Allowance for loan and lease losses, at end of period		$	161,578			$	155,411			$	162,790			$	161,712			$	157,710				$	161,578			$	157,710
Total loans, excluding loans held for sale		$	14,035,183			$	13,934,952			$	13,820,245			$	13,934,980			$	13,966,062				$	14,035,183			$	13,966,062
Average loans, excluding loans held for sale		13,858,172				13,821,710				13,839,023				13,905,827				13,776,036					13,855,958				13,322,342
Allowance for loan and lease losses to total loans, excluding loans held for sale		1.15		%		1.12		%		1.18		%		1.16		%		1.13		%			1.15		%		1.13		%
Net loan charge-offs to average loans, excluding loans held for sale (annualized)		0.21				0.82				0.15				0.10				0.16					0.32				0.03

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):

		12/31/2018				9/30/2018				6/30/2018				3/31/2018				12/31/2017
Commercial related loans:
General reserve		$	146,277			$	137,204			$	139,356			$	137,284			$	132,787
Specific reserve		2,025				1,235				6,544				7,290				6,056
Consumer related reserve		13,276				16,972				16,890				17,138				18,867
Total allowance for loan and lease losses		$	161,578			$	155,411			$	162,790			$	161,712			$	157,710

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, 2018(in thousands):

		Non-Accretable Discount - PCI Loans				Accretable Discount - PCI Loans				Accretable Discount - Non-PCI Loans				Total
Balance at beginning of period		$	6,185			$	5,898			$	14,480			$	26,563
Charge-offs		(140		)		-				-				(140		)
Accretion		-				(1,057		)		(1,739		)		(2,796		)
Transfer(1)		(1,083		)		1,083				-				-
Balance at end of period		$	4,962			$	5,924			$	12,741			$	23,627

(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

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

		12/31/2018							9/30/2018							6/30/2018							3/31/2018							12/31/2017
		Amount				% of Total			Amount				% of Total			Amount				% of Total			Amount				% of Total			Amount				% of Total
Low-cost deposits:
Non-interest bearing deposits		$	6,152,163			42	%		$	6,036,012			41	%		$	6,347,208			43	%		$	6,385,149			43	%		$	6,381,512			43	%
Money market, NOW, and interest bearing deposits		4,982,026				34			5,125,330				35			4,950,676				33			4,858,506				32			4,954,765				33
Savings deposits		1,191,498				8			1,180,997				8			1,181,078				8			1,229,968				8			1,167,810				8
Total low-cost deposits		12,325,687				84			12,342,339				84			12,478,962				84			12,473,623				83			12,504,087				84
Certificates of deposit:
Certificates of deposit		1,416,815				10			1,392,020				9			1,361,611				9			1,397,868				10			1,392,409				9
Brokered certificates of deposit		911,711				6			974,434				7			1,082,090				7			1,099,102				7			1,061,882				7
Total certificates of deposit		2,328,526				16			2,366,454				16			2,443,701				16			2,496,970				17			2,454,291				16
Total deposits		$	14,654,213			100	%		$	14,708,793			100	%		$	14,922,663			100	%		$	14,970,593			100	%		$	14,958,378			100	%
Change in total deposits:
From prior quarter		-0.4		%					-1.4		%					-0.3		%					+0.1		%					+3.8		%
From same quarter one year ago		-2.0		%					+2.0		%					+4.6		%					+6.9		%					+6.0		%

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

		4Q18							3Q18							2Q18							1Q18							4Q17
		Amount				% of Total			Amount				% of Total			Amount				% of Total			Amount				% of Total			Amount				% of Total
Low-cost deposits:
Non-interest bearing deposits		$	6,346,760			43	%		$	6,418,925			43	%		$	6,414,450			43	%		$	6,293,453			42	%		$	6,370,801			43	%
Money market, NOW, and interest bearing deposits		4,989,644				33			5,042,158				33			4,878,700				32			4,871,501				33			4,976,854				33
Savings deposits		1,187,808				8			1,172,627				8			1,209,360				8			1,208,843				8			1,120,550				7
Total low-cost deposits		12,524,212				84			12,633,710				84			12,502,510				83			12,373,797				83			12,468,205				83
Certificates of deposit:
Certificates of deposit		1,416,280				10			1,370,866				9			1,400,201				10			1,383,260				10			1,393,210				10
Brokered certificates of deposit		941,661				6			1,028,420				7			1,093,525				7			1,075,056				7			1,092,990				7
Total certificates of deposit		2,357,941				16			2,399,286				16			2,493,726				17			2,458,316				17			2,486,200				17
Total deposits		$	14,882,153			100	%		$	15,032,996			100	%		$	14,996,236			100	%		$	14,832,113			100	%		$	14,954,405			100	%
Change in total deposits:
From prior quarter		-1.0		%					+0.2		%					+1.1		%					-0.8		%					+3.8		%
From same quarter one year ago		-0.5		%					+4.3		%					+6.4		%					+6.5		%					+4.8		%

STATEMENT OF OPERATIONS DETAILS TO FOLLOW

17

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):

		4Q18											3Q18												4Q17
		Average Balance				Interest				Yield/ Rate			Average Balance				Interest				Yield/ Rate				Average Balance				Interest				Yield/ Rate
Interest Earning Assets:
Loans held for sale		$	52,275			$	537			4.11	%		$	196,180			1,608				3.28	%			$	653,482			$	5,683			3.48	%
Loans(1) (2) (3):
Commercial-related loans
Commercial		4,943,611				67,123				5.31			4,906,844				64,512				5.14				4,638,618				53,505				4.51
Commercial loans collateralized by assignment of lease payments (lease loans)		2,050,265				21,615				4.22			2,029,053				20,262				3.99				2,074,655				19,314				3.72
Commercial real estate		3,793,329				50,302				5.19			3,883,132				50,185				5.06				4,131,179				47,763				4.52
Construction real estate		516,238				6,931				5.25			511,193				6,521				4.99				410,416				4,395				4.19
Total commercial-related loans		11,303,443				145,971				5.07			11,330,222				141,480				4.90				11,254,868				124,977				4.36
Other loans:
Residential real estate		1,397,719				11,199				3.21			1,355,501				11,048				3.26				1,430,219				11,621				3.25
Indirect		806,139				10,319				5.08			770,047				9,541				4.92				663,474				7,810				4.67
Home equity		178,585				2,237				4.97			187,347				2,295				4.86				223,445				2,414				4.29
Consumer		85,414				817				3.79			83,677				856				4.06				76,249				796				4.14
Total other loans		2,467,857				24,572				3.96			2,396,572				23,740				3.95				2,393,387				22,641				3.77
Total loans, excluding purchased credit-impaired loans		13,771,300				170,543				4.87			13,726,794				165,220				4.73				13,648,255				147,618				4.26
Purchased credit-impaired loans		86,872				2,379				10.87			94,916				4,079				17.05				127,781				4,964				15.41
Total loans		13,858,172				172,922				4.91			13,821,710				169,299				4.82				13,776,036				152,582				4.36
Taxable investment securities		1,525,126				11,322				2.97			1,455,771				10,366				2.85				1,315,473				7,696				2.34
Investment securities exempt from federal income taxes(3)		1,228,820				11,992				3.90			1,220,193				11,882				3.90				1,249,181				14,888				4.77
Federal funds sold		74				0				2.50			383				2				2.21				37				0				1.73
Other interest earning deposits		121,401				356				1.16			375,961				1,648				1.74				363,273				600				0.66
Total interest earning assets		$	16,785,868			$	197,129			4.63	%		$	17,070,198			$	194,805			4.50	%			$	17,357,482			$	181,449			4.13	%
Non-interest earning assets		2,934,520											2,907,225												2,809,191
Total assets		$	19,720,388										$	19,977,423											$	20,166,673
Interest Bearing Liabilities:
Core funding:
Money market, NOW, and interest bearing deposits		$	4,989,644			$	11,389			0.91	%		$	5,042,158			$	10,183			0.80	%			$	4,976,854			$	5,617			0.45	%
Savings deposits		1,187,808				1,109				0.37			1,172,627				919				0.31				1,120,550				478				0.17
Certificates of deposit		1,416,280				5,079				1.42			1,370,866				4,300				1.24				1,393,210				3,143				0.90
Customer repurchase agreements		273,794				443				0.64			232,584				276				0.47				217,390				137				0.25
Total core funding		7,867,526				18,020				0.91			7,818,235				15,678				0.80				7,708,004				9,375				0.48
Wholesale funding:
Brokered certificates of deposit (includes fee expense)		941,661				4,790				2.02			1,028,420				5,083				1.96				1,092,990				4,314				1.57
Other borrowings		1,013,859				7,629				2.94			1,232,992				9,130				2.90				1,672,957				7,884				1.84
Total wholesale funding		1,955,520				12,419				2.50			2,261,412				14,213				2.47				2,765,947				12,198				1.73
Total interest bearing liabilities		$	9,823,046			$	30,439			1.23	%		$	10,079,647			$	29,891			1.17	%			$	10,473,951			$	21,573			0.81	%
Non-interest bearing deposits		6,346,760											6,418,925												6,370,801
Other non-interest bearing liabilities		568,520											524,447												541,823
Stockholders' equity		2,982,062											2,954,404												2,780,098
Total liabilities and stockholders' equity		$	19,720,388										$	19,977,423											$	20,166,673
Net interest income/interest rate spread(4)						$	166,690			3.40	%						$	164,914			3.33	%							$	159,876			3.32	%
Taxable equivalent adjustment						3,185											3,066												6,483
Net interest income, as reported						$	163,505										$	161,848											$	153,393
Net interest margin(5)										3.84	%										3.74	%											3.49	%
Tax equivalent effect										0.07	%										0.07	%											0.14	%
Net interest margin on a fully tax equivalent basis(5)										3.91	%										3.81	%											3.63	%

(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 Federal tax rate of 21% for 2018 and 35% for 2017.

(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,
		2018											2017
		Average Balance				Interest				Yield/ Rate			Average Balance				Interest				Yield/ Rate
Interest Earning Assets:
Loans held for sale		$	340,073			$	12,006			3.53	%		$	632,927			22,801				3.60	%
Loans(1) (2) (3):
Commercial-related loans
Commercial		4,843,353				246,379				5.02			4,509,690				202,446				4.43
Commercial loans collateralized by assignment of lease payments (lease loans)		2,057,180				81,479				3.96			2,015,508				74,870				3.71
Commercial real estate		3,959,781				199,351				4.97			3,905,758				176,969				4.47
Construction real estate		490,806				24,260				4.88			479,404				19,996				4.11
Total commercial-related loans		11,351,120				551,469				4.80			10,910,360				474,281				4.30
Other loans:
Residential real estate		1,384,774				45,135				3.26			1,333,435				43,752				3.28
Indirect		743,636				36,434				4.90			615,093				28,385				4.61
Home equity		194,139				9,181				4.73			238,603				9,906				4.15
Consumer		82,000				3,300				4.02			78,871				3,243				4.11
Total other loans		2,404,549				94,050				3.91			2,266,002				85,286				3.76
Total loans, excluding purchased credit-impaired loans		13,755,669				645,519				4.65			13,176,362				559,567				4.21
Purchased credit-impaired loans		100,289				14,183				14.14			145,980				21,274				14.57
Total loans		13,855,958				659,702				4.71			13,322,342				580,841				4.32
Taxable investment securities		1,439,627				40,201				2.79			1,472,596				33,975				2.31
Investment securities exempt from federal income taxes(3)		1,224,461				47,818				3.91			1,261,295				60,336				4.78
Federal funds sold		199				4				2.19			64				1				1.45
Other interest earning deposits		188,501				2,377				1.26			182,651				1,353				0.74
Total interest earning assets		$	17,048,819			$	762,108			4.43	%		$	16,871,875			$	699,307			4.11	%
Non-interest earning assets		2,899,052											2,758,432
Total assets		$	19,947,871										$	19,630,307
Interest Bearing Liabilities:
Core funding:
Money market, NOW, and interest bearing deposits		$	4,946,089			$	35,539			0.72	%		$	4,689,676			$	16,008			0.34	%
Savings deposits		1,194,541				3,730				0.31			1,114,936				1,267				0.11
Certificates of deposit		1,392,683				16,539				1.19			1,331,949				9,826				0.74
Customer repurchase agreements		236,381				1,135				0.48			199,661				448				0.22
Total core funding		7,769,694				56,943				0.73			7,336,222				27,549				0.38
Wholesale funding:
Brokered certificates of deposit (includes fee expense)		1,034,283				19,462				1.88			900,222				13,584				1.51
Other borrowings		1,296,546				35,398				2.69			1,930,302				28,936				1.48
Total wholesale funding		2,330,829				54,860				2.33			2,830,524				42,520				1.49
Total interest bearing liabilities		$	10,100,523			$	111,803			1.10	%		$	10,166,746			$	70,069			0.69	%
Non-interest bearing deposits		6,368,681											6,314,086
Other non-interest bearing liabilities		520,258											484,564
Stockholders' equity		2,958,409											2,664,911
Total liabilities and stockholders' equity		$	19,947,871										$	19,630,307
Net interest income/interest rate spread(4)						$	650,305			3.33	%						$	629,238			3.42	%
Taxable equivalent adjustment						12,502											26,861
Net interest income, as reported						$	637,803										$	602,377
Net interest margin(5)										3.71	%										3.54	%
Tax equivalent effect										0.07	%										0.16	%
Net interest margin on a fully tax equivalent basis(5)										3.78	%										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 Federal tax rate of 21% for 2018 and 35% for 2017.

(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 that 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):

		4Q18											3Q18											4Q17
		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		$	13,858,172			$	172,922			4.91	%		$	13,821,710			$	169,299			4.82	%		$	13,776,036			$	152,582			4.36	%
Less acquisition accounting discount on non-PCI loans		(13,611		)		1,739							(15,467		)		1,971							(22,513		)		2,914
Less acquisition accounting discount on PCI loans		(11,484		)		1,057							(13,315		)		2,579							(22,605		)		3,166
Total loans, excluding acquisition accounting discount on bank merger loans		$	13,883,267			$	170,126			4.82	%		$	13,850,492			$	164,749			4.68	%		$	13,821,154			$	146,502			4.17	%
Net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on bank merger loans:
Total interest earning assets, as reported		$	16,785,868			$	166,690			3.91	%		$	17,070,198			$	164,914			3.81	%		$	17,357,482			$	159,876			3.63	%
Less acquisition accounting discount on non-PCI loans		(13,611		)		1,739							(15,467		)		1,971							(22,513		)		2,914
Less acquisition accounting discount on PCI loans		(11,484		)		1,057							(13,315		)		2,579							(22,605		)		3,166
Total interest earning assets/net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount on bank merger loans		$	16,810,963			$	163,894			3.84	%		$	17,098,980			$	160,364			3.70	%		$	17,402,600			$	153,796			3.49	%

		Year Ended December 31,
		2018											2017
		Average Balance				Interest				Yield			Average Balance				Interest				Yield
Loan yield excluding acquisition accounting discount accretion on bank merger loans:
Total loans, as reported		$	13,855,958			$	659,702			4.71	%		$	13,322,342			$	580,841			4.32	%
Less acquisition accounting discount on non-PCI loans		(16,899		)		8,315							(28,626		)		15,340
Less acquisition accounting discount on PCI loans		(15,316		)		8,270							(30,984		)		12,500
Total loans, excluding acquisition accounting discount on bank merger loans		$	13,888,173			$	643,117			4.58	%		$	13,381,952			$	553,001			4.09	%
Net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on bank merger loans:
Total interest earning assets, as reported		$	17,048,819			$	650,305			3.78	%		$	16,871,875			$	629,238			3.70	%
Less acquisition accounting discount on non-PCI loans		(16,899		)		8,315							(28,626		)		15,340
Less acquisition accounting discount on PCI loans		(15,316		)		8,270							(30,984		)		12,500
Total interest earning assets/net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount on bank merger loans		$	17,081,034			$	633,720			3.68	%		$	16,931,485			$	601,398			3.52	%

20

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

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Core non-interest income:
Key fee initiatives:
Lease financing revenue, net		$	31,657			$	25,205			$	22,918			$	24,710			$	23,620				$	104,490			$	86,587
Treasury management fees		14,287				15,226				15,066				15,156				15,234					59,735				58,930
Wealth management fees		9,204				9,089				8,969				9,121				9,024					36,383				34,744
Card fees		5,851				5,362				5,654				4,787				5,032					21,654				18,596
Capital markets and international banking fees		3,637				1,913				3,785				2,998				3,999					12,333				15,708
Total key fee initiatives		64,636				56,795				56,392				56,772				56,909					234,595				214,565
Mortgage banking revenue		9,626				9,916				18,926				25,047				22,374					63,515				109,224
Consumer and other deposit service fees		3,031				3,051				2,929				2,912				3,261					11,923				13,333
Brokerage fees		1,182				1,138				1,050				864				942					4,234				4,321
Loan service fees		2,252				2,103				2,148				2,245				2,197					8,748				8,317
Increase in cash surrender value of life insurance		1,301				1,298				1,272				1,108				1,511					4,979				5,421
Other operating income		2,295				4,714				5,610				4,445				2,616					17,064				10,912
Total core non-interest income		84,323				79,015				88,327				93,393				89,810					345,058				366,093
Non-core non-interest income:
Net gain (loss) on investment securities		89				(85		)		(86		)		(174		)		111					(256		)		562
Net loss on disposal of other assets		(10		)		(32		)		(397		)		(357		)		(2,016		)			(796		)		(2,323		)
Recovery of low to moderate income real estate investment(1)		-				-				-				-				1,006					-				1,704
(Decrease) increase in market value of assets held in trust for deferred compensation(1)		(2,722		)		943				462				(60		)		912					(1,377		)		3,338
Total non-core non-interest income		(2,643		)		826				(21		)		(591		)		13					(2,429		)		3,281
Total non-interest income		$	81,680			$	79,841			$	88,306			$	92,802			$	89,823				$	342,629			$	369,374

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

21

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

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Core non-interest expense:(1)
Salaries and employee benefits expense:
Salaries		$	54,598			$	56,234			$	63,157			$	64,587			$	62,465				$	238,576			$	243,157
Commissions		3,566				4,948				7,623				7,435				8,303					23,572				35,850
Bonus and stock-based compensation		15,590				12,373				12,853				12,055				13,332					52,871				50,086
Other salaries and benefits(2)		20,526				20,826				21,873				21,940				20,153					85,165				80,512
Total salaries and employee benefits expense		94,280				94,381				105,506				106,017				104,253					400,184				409,605
Occupancy and equipment expense		15,322				15,801				16,450				17,394				16,727					64,967				62,427
Computer services and telecommunication expense		10,446				10,036				10,871				11,156				11,287					42,509				40,344
Advertising and marketing expense		2,749				3,154				3,342				3,837				3,266					13,082				12,230
Professional and legal expense		3,624				1,874				5,434				1,894				2,914					12,826				10,064
Other intangible amortization expense		2,199				1,854				1,896				1,902				1,979					7,851				8,193
Net loss (gain) recognized on other real estate owned (A)		476				62				879				(143		)		(151		)			1,274				1,246
Other real estate expense, net (A)		365				186				169				190				47					910				98
Other operating expenses		19,443				20,071				23,039				21,919				23,450					84,472				91,892
Total core non-interest expense		148,904				147,419				167,586				164,166				163,772					628,075				636,099
Non-core non-interest expense:(1)
Merger related and repositioning expenses (B)		7,958				13,927				24,944				644				944					47,473				9,947
Restructuring severance charges (C)		-				-				-				-				-					-				-
One-time bonuses (C)		-				-				-				-				2,700					-				2,700
Branch exit and facilities impairment charges		-				-				-				-				-					-				1,759
Loss on extinguishment of debt(3)		2,507				6,255				-				3,136				-					11,898				-
Reduction in clawback liability(4)		(5,009		)		-				-				-				-					(5,009		)		-
Contribution to MB Financial Charitable Foundation (D)		-				-				-				-				7,500					-				7,500
(Decrease) increase in market value of assets held in trust for deferred compensation (C)		(2,722		)		943				462				(60		)		912					(1,377		)		3,338
Total non-core non-interest expense		2,734				21,125				25,406				3,720				12,056					52,985				25,244
Total non-interest expense		$	151,638			$	168,544			$	192,992			$	167,886			$	175,828				$	681,060			$	661,343

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

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

(3)	Includes losses on the extinguishment of junior subordinated notes issued to capital trusts in the first, third, and fourth quarters of 2018.

(4)	Includes a decrease in expense related to FDIC loss share agreements.

22

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

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Merger related and repositioning expenses(1):
Salaries and employee benefits expense		$	4,125			$	6,561			$	17,510			$	557			$	1,382				$	28,753			$	3,536
Occupancy and equipment expense		126				316				1				35				119					478				129
Computer services and telecommunication expense		299				2,648				-				-				17					2,947				247
Advertising and marketing expense		34				278				-				26				5					338				5
Professional and legal expense		538				712				3,453				4				43					4,707				143
Branch exit and facilities impairment charges(2)		613				3,292				340				-				(327		)			4,245				6,594
Contingent consideration expense(3)		2,000				-				-				-				(454		)			2,000				(454		)
Goodwill impairment loss(4)		-				-				3,623				-				-					3,623				-
Other operating expenses		223				120				17				22				159					382				(253		)
Total merger related and repositioning expenses		$	7,958			$	13,927			$	24,944			$	644			$	944				$	47,473			$	9,947

(1)

Includes costs incurred in connection with the pending merger with Fifth Third, the discontinuation of our national mortgage origination business, the mortgage banking acquisition (completed in the fourth quarter of 2017), and the American Chartered merger (completed in 2016). For the fourth quarter of 2018, approximately $2 million relates to the discontinuation of our national mortgage origination business and approximately $3 million relates to the pending merger with Fifth Third. For the third quarter of 2018, approximately $10 million relates to the discontinuation of our national mortgage origination business and approximately $4 million relates to the pending merger with Fifth Third. For the second quarter of 2018, approximately $19 million relates to the discontinuation of our national mortgage origination business and approximately $6 million relates to the pending merger with Fifth Third.

(2)

Includes the following items: exit charges related to our mortgage wind down in the fourth quarter of 2018; exit charges related to the closing of 34 of our mortgage retail offices in the third quarter of 2018; exit charges related to the closing of five of our mortgage retail offices in the second quarter of 2018; gains on previously closed branch facilities in the fourth quarter of 2017; costs associated with office space reconfiguration in the third quarter of 2017; and exit charges on branches closed in the second quarter of 2017 due to the American Chartered 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.

(4)	Reflects the goodwill impairment charge at the Mortgage Banking Segment in the second quarter of 2018.

23

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

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Income before income taxes - as reported		$	81,576			$	51,642			$	48,164			$	70,789			$	63,745				$	252,171			$	288,815
Tax at Federal statutory rate (21% for 2018 and 35% for 2017)		17,131				10,845				10,114				14,866				22,310					52,956				101,085
Increase (decrease) due to:
Tax exempt income, net		(2,781		)		(2,653		)		(2,681		)		(2,639		)		(4,673		)			(10,754		)		(19,053		)
State tax expense, net of Federal impact		3,651				2,846				2,593				3,964				3,103					13,054				12,695
Other items, net		642				198				931				586				1,131					2,357				1,397
Tax expense before discrete items		18,643				11,236				10,957				16,777				21,871					57,613				96,124
Income tax rate before discrete items (effective tax rate)		22.9		%		21.8		%		22.7		%		23.7		%		34.3		%			22.8		%		33.3		%
Discrete tax expense (benefit) items(1)		(4,778		)		(154		)		(483		)		(201		)		1,919					(5,616		)		(2,682		)
Discrete tax benefit corporate Federal tax rate changes(2)		(8,200		)		(2,154		)		(843		)		(2,544		)		(104,239		)			(13,741		)		(104,239		)
Discrete tax benefit corporate state tax rate changes(3)		-				-				-				-				-					-				(2,324		)
Discrete tax expense (benefit) merger related items(4)		-				-				-				-				-					-				(2,104		)
Income tax expense - as reported		$	5,665			$	8,928			$	9,631			$	14,032			$	(80,449	)			$	38,256			$	(15,225	)
Income tax rate		6.9		%		17.3		%		20.0		%		19.8		%		(126.2		)%			15.2		%		(5.3		)%

(1)

Includes tax benefits on the vesting of restricted shares, exercise of options, and other compensation as well as non-deductible merger expenses, the $5.2 million decrease in state income tax accruals due to income allocation to low income tax rate jurisdictions for the fourth quarter of 2018, and $2.1 million increase in state income tax accruals due to income allocation to high income tax rate jurisdictions for the fourth quarter of 2017.

(2)	Includes the impact of the Federal income tax rate decrease due to the TCJ Act (enacted on December 22, 2017) on our net deferred tax liabilities. Amounts for 2018 represent re-measurement adjustments of our net deferred tax liabilities.

(3)	Includes tax benefit due to the impact of the Illinois state income tax rate increase (effective July 1, 2017) on our deferred tax assets.

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

24

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, operating earnings excluding the Mortgage Banking Segment, core non-interest income, core non-interest income to revenues (including and excluding Mortgage Banking Segment) (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 (including and excluding Mortgage Banking Segment), and the ratio of annualized net non-interest expense to average assets with net gains and losses on investment securities, net losses on disposal of other assets, recovery of low to moderate income real estate investment, and increase and decrease 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, one-time bonuses, loss on extinguishment of debt, increase and decrease in market value of assets held in trust for deferred compensation, reduction in clawback liability, 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, excluding Mortgage Banking Segment, on average assets, annualized operating return on average common equity, annualized cash return, excluding Mortgage Banking Segment, on average tangible common equity, and annualized cash operating return, excluding Mortgage Banking Segment, 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, operating earnings excluding Mortgage Banking Segment, 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 Federal tax rate of 21% for 2018 and 35% for 2017. 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 and losses on investment securities, net losses on disposal of other assets, recovery of low to moderate income real estate investment, and increase and decrease 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, one-time bonuses, loss on extinguishment of debt, increase and decrease 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.

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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 '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):

		12/31/2018				9/30/2018				6/30/2018				3/31/2018				12/31/2017
Stockholders' equity - as reported		$	3,034,848			$	2,965,329			$	2,948,693			$	2,934,347			$	3,009,823
Less: goodwill		999,925				999,925				999,925				1,003,548				1,003,548
Less: other intangible assets, net of tax benefit		34,365				35,976				37,334				38,723				40,116
Tangible equity		$	2,000,558			$	1,929,428			$	1,911,434			$	1,892,076			$	1,966,159

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

		12/31/2018				9/30/2018				6/30/2018				3/31/2018				12/31/2017
Total assets - as reported		$	20,207,026			$	19,719,971			$	19,966,557			$	20,167,523			$	20,086,940
Less: goodwill		999,925				999,925				999,925				1,003,548				1,003,548
Less: other intangible assets, net of tax benefit		34,365				35,976				37,334				38,723				40,116
Tangible assets		$	19,172,736			$	18,684,070			$	18,929,298			$	19,125,252			$	19,043,276

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

		12/31/2018				9/30/2018				6/30/2018				3/31/2018				12/31/2017
Common stockholders' equity - as reported		$	2,840,129			$	2,770,610			$	2,753,974			$	2,739,628			$	2,699,824
Less: goodwill		999,925				999,925				999,925				1,003,548				1,003,548
Less: other intangible assets, net of tax benefit		34,365				35,976				37,334				38,723				40,116
Tangible common equity		$	1,805,839			$	1,734,709			$	1,716,715			$	1,697,357			$	1,656,160

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

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Average common stockholders' equity - as reported		$	2,787,343			$	2,759,685			$	2,740,997			$	2,708,911			$	2,579,896				$	2,749,478			$	2,528,015
Less: average goodwill		999,925				999,925				1,001,119				1,003,548				1,001,027					1,001,116				1,000,469
Less: average other intangible assets, net of tax benefit		35,024				36,433				37,804				39,212				36,049					37,105				38,058
Average tangible common equity		$	1,752,394			$	1,723,327			$	1,702,074			$	1,666,151			$	1,542,820				$	1,711,257			$	1,489,488

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,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Net income available to common stockholders - as reported		$	72,911			$	39,714			$	35,533			$	68,937			$	142,194				$	217,095			$	296,033
Add: other intangible amortization expense, net of tax benefit		1,611				1,358				1,389				1,393				1,286					5,751				5,325
Net cash flow available to common stockholders		$	74,522			$	41,072			$	36,922			$	70,330			$	143,480				$	222,846			$	301,358

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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,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Net income - as reported		$	75,911			$	42,714			$	38,533			$	56,757			$	144,194				$	213,915			$	304,040
Less non-core items:
Net gain (loss) on investment securities		89				(85		)		(86		)		(174		)		111					(256		)		562
Net loss on disposal of other assets		(10		)		(32		)		(397		)		(357		)		(2,016		)			(796		)		(2,323		)
Recovery of low to moderate income real estate investment		-				-				-				-				1,006					-				1,704
(Decrease) increase in market value of assets held in trust for deferred compensation - other operating income		(2,722		)		943				462				(60		)		912					(1,377		)		3,338
Merger related and repositioning expenses(1)		(7,958		)		(13,927		)		(24,944		)		(644		)		(944		)			(47,473		)		(9,947		)
One-time bonuses		-				-				-				-				(2,700		)			-				(2,700		)
Branch exit and facilities impairment charges		-				-				-				-				-					-				(1,759		)
Loss on extinguishment of debt		(2,507		)		(6,255		)		-				(3,136		)		-					(11,898		)		-
Reduction in clawback liability		5,009				-				-				-				-					5,009				-
Contribution to MB Financial Charitable Foundation		-				-				-				-				(7,500		)			-				(7,500		)
Decrease (increase) in market value of assets held in trust for deferred compensation - other operating expense		2,722				(943		)		(462		)		60				(912		)			1,377				(3,338		)
Total non-core items		(5,377		)		(20,299		)		(25,427		)		(4,311		)		(12,043		)			(55,414		)		(21,963		)
Income tax expense on non-core items		(873		)		(5,256		)		(5,905		)		(1,153		)		(4,618		)			(13,187		)		(8,558		)
Income tax expense - other(2)		(8,200		)		(2,154		)		(843		)		(2,544		)		(104,239		)			(13,741		)		(106,343		)
Non-core items, net of tax		3,696				(12,889		)		(18,679		)		(614		)		96,814					(28,486		)		92,938
Operating earnings		72,215				55,603				57,212				57,371				47,380					242,401				211,102
Operating earnings (loss) - Mortgage Banking Segment		3,141				1,067				(3,359		)		(295		)		(815		)			554				5,494
Operating earnings, excluding Mortgage Banking Segment		69,074				54,536				60,571				57,666				48,195					241,847				205,608
Dividends on preferred shares		3,000				3,000				3,000				3,100				2,000					12,100				8,007
Operating earnings available to common stockholders, excluding Mortgage Banking Segment		$	66,074			$	51,536			$	57,571			$	54,566			$	46,195				$	229,747			$	197,601
Diluted earnings per common share - as reported		$	0.85			$	0.47			$	0.42			$	0.81			$	1.67				$	2.55			$	3.49
Impact of return from preferred stockholders due to redemption(3)		-				-				-				(0.18		)		-					(0.18		)		-
Impact of non-core items, net of tax		(0.04		)		0.14				0.22				0.01				(1.14		)			0.34				(1.10		)
Impact of excluding operating (earnings) loss - Mortgage Banking Segment		(0.04		)		(0.01		)		0.04				-				0.01					(0.01		)		(0.06		)
Diluted operating earnings per common share, excluding Mortgage Banking Segment		$	0.77			$	0.60			$	0.68			$	0.64			$	0.54				$	2.70			$	2.33
Weighted average common shares outstanding for diluted operating earnings per common share		85,337,028				85,335,109				85,251,810				84,896,401				84,964,759					85,206,300				84,823,456

(1)	Non-core items for the fourth quarter of 2018 include approximately $2 million, net of tax, related to the discontinuation of our national mortgage origination business and approximately $3 million, net of tax, related to the pending merger with Fifth Third. Non-core items for the third quarter of

27

2018 include approximately $7 million, net of tax, related to the discontinuation of our national mortgage origination business and approximately $3 million, net of tax, related to the pending merger with Fifth Third. Non-core items for the second quarter of 2018 include approximately $14 million, net of tax, related to the discontinuation of our national mortgage origination business and approximately $5 million, net of tax, related to the pending merger with Fifth Third.

(2)

The four quarters of 2018 and fourth quarter of 2017 include the reversal of deferred tax liabilities as a result of the decrease in Federal income tax rate effective January 1, 2018 due to the TCJ Act. The fourth quarter reversal of $8.2 million was recognized at the Banking Segment. The third quarter of 2018 reversal of $2.2 million was recognized at the Banking Segment. The second quarter of 2018 reversal of $843 thousand was recognized as follows: $429 thousand of expense at the Banking Segment and $1.3 million reversal at the Leasing Segment. The first quarter 2018 reversal of $2.5 million was recognized at the Leasing Segment. The fourth quarter 2017 reversal of $104.2 million was recognized as follows: $6.5 million at our Banking Segment, $65.3 million at our Leasing Segment, and $32.4 million at our Mortgage Banking Segment. The year ended December 31, 2017 includes reversals of tax liabilities no longer needed specifically related to two entities we acquired.

(3)	The $0.81 diluted earnings per common share in the first quarter of 2018 were positively impacted by a $15.3 million, or $0.18 per common share, return from preferred stockholders due to the redemption of our 8% Series A non-cumulative perpetual preferred stock. The $15.3 million represents the excess carrying amount over the redemption price of the Series A preferred stock.

The following table presents a reconciliation of net income to operating earnings for our operating segments (in thousands):

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Banking Segment:
Net income - as reported		$	64,628			$	41,662			$	47,893			$	46,550			$	43,435				$	200,733			$	180,872
Non-core items, net of tax		(5,532		)		5,738				5,714				2,550				298					8,470				4,174
Operating earnings		$	59,096			$	47,400			$	53,607			$	49,100			$	43,733				$	209,203			$	185,046
Leasing Segment:
Net income - as reported		$	9,961			$	7,136			$	8,236			$	11,110			$	69,783				$	36,443			$	85,883
Non-core items, net of tax		17				-				(1,272		)		(2,544		)		(65,321		)			(3,799		)		(65,321		)
Operating earnings		$	9,978			$	7,136			$	6,964			$	8,566			$	4,462				$	32,644			$	20,562
Mortgage Banking Segment:
Net income (loss) - as reported		$	1,322			$	(6,084	)		$	(17,596	)		$	(903	)		$	30,976				$	(23,261	)		$	37,285
Non-core items, net of tax		1,819				7,151				14,237				608				(31,791		)			23,815				(31,791		)
Operating earnings (loss)		$	3,141			$	1,067			$	(3,359	)		$	(295	)		$	(815	)			$	554			$	5,494

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

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Non-interest expense		$	151,638			$	168,544			$	192,992			$	167,886			$	175,828				$	681,060			$	661,343
Less merger related and repositioning expenses		7,958				13,927				24,944				644				944					47,473				9,947
Less loss on extinguishment of debt		2,507				6,255				-				3,136				-					11,898				-
Less one-time bonuses		-				-				-				-				2,700					-				2,700
Less branch exit and facilities impairment charges		-				-				-				-				-					-				1,759
Less reduction in clawback liability		(5,009		)		-				-				-				-					(5,009		)		-
Less contribution to MB Financial Charitable Foundation		-				-				-				-				7,500					-				7,500
Less (decrease) increase in market value of assets held in trust for deferred compensation		(2,722		)		943				462				(60		)		912					(1,377		)		3,338
Non-interest expense - as adjusted		$	148,904			$	147,419			$	167,586			$	164,166			$	163,772				$	628,075			$	636,099
Net interest income		$	163,505			$	161,848			$	159,069			$	153,381			$	153,393				$	637,803			$	602,377
Tax equivalent adjustment		3,185				3,066				3,129				3,122				6,483					12,502				26,861
Net interest income on a fully tax equivalent basis		166,690				164,914				162,198				156,503				159,876					650,305				629,238
Plus non-interest income		81,680				79,841				88,306				92,802				89,823					342,629				369,374
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance		346				345				338				295				814					1,324				2,919
Less net gain (loss) on investment securities		89				(85		)		(86		)		(174		)		111					(256		)		562
Less net loss on disposal of other assets		(10		)		(32		)		(397		)		(357		)		(2,016		)			(796		)		(2,323		)
Less recovery of low to moderate income real estate investment		-				-				-				-				1,006					-				1,704
Less (decrease) increase in market value of assets held in trust for deferred compensation		(2,722		)		943				462				(60		)		912					(1,377		)		3,338
Non-interest income - as adjusted		84,669				79,360				88,665				93,688				90,624					346,382				369,012
Total revenue - as adjusted and on a fully tax equivalent basis		$	251,359			$	244,274			$	250,863			$	250,191			$	250,500				$	996,687			$	998,250
Efficiency ratio		59.24		%		60.35		%		66.80		%		65.62		%		65.38		%			63.02		%		63.72		%
Efficiency ratio (without adjustments)		61.85		%		69.74		%		78.02		%		68.20		%		72.29		%			69.47		%		68.06		%

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The following table presents the efficiency ratio, excluding the Mortgage Banking Segment calculation (dollars in thousands):

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Non-interest expense - as adjusted(1)		$	148,904			$	147,419			$	167,586			$	164,166			$	163,772				$	628,075			$	636,099
Less Mortgage Banking Segment non-interest expense		12,853				16,183				33,611				35,928				34,397					98,575				140,912
Non-interest expense - as adjusted, less Mortgage Banking Segment		$	136,051			$	131,236			$	133,975			$	128,238			$	129,375				$	529,500			$	495,187
Total revenue - as adjusted and on a fully tax equivalent basis(1)		$	251,359			$	244,274			$	250,863			$	250,191			$	250,500				$	996,687			$	998,250
Less Mortgage Banking Segment net interest income		7,507				7,685				10,106				10,428				10,611					35,726				41,976
Less Mortgage Banking Segment non-interest income		9,626				9,929				18,937				25,048				22,374					63,540				109,225
Net interest income plus non-interest income - as adjusted, less Mortgage Banking Segment		$	234,226			$	226,660			$	221,820			$	214,715			$	217,515				$	897,421			$	847,049
Efficiency ratio, excluding Mortgage Banking Segment		58.09		%		57.90		%		60.40		%		59.72		%		59.48		%			59.00		%		58.46		%

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

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

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Non-interest expense		$	151,638			$	168,544			$	192,992			$	167,886			$	175,828				$	681,060			$	661,343
Less merger related and repositioning expenses		7,958				13,927				24,944				644				944					47,473				9,947
Less one-time bonuses		-				-				-				-				2,700					-				2,700
Less loss on extinguishment of debt		2,507				6,255				-				3,136				-					11,898				-
Less branch exit and facilities impairment charges		-				-				-				-				-					-				1,759
Less reduction in clawback liability		(5,009		)		-				-				-				-					(5,009		)		-
Less contribution to MB Financial Charitable Foundation		-				-				-				-				7,500					-				7,500
Less increase in market value of assets held in trust for deferred compensation		(2,722		)		943				462				(60		)		912					(1,377		)		3,338
Non-interest expense - as adjusted(1)		$	148,904			$	147,419			$	167,586			$	164,166			$	163,772				$	628,075			$	636,099
Less non-interest income - as adjusted(1)		84,669				79,360				88,665				93,688				90,624					346,382				369,012
Net non-interest expense - as adjusted		$	64,235			$	68,059			$	78,921			$	70,478			$	73,148				$	281,693			$	267,087
Average assets		$	19,720,388			$	19,977,423			$	20,157,187			$	19,938,557			$	20,166,673				$	19,947,871			$	19,630,307
Annualized net non-interest expense to average assets		1.29		%		1.35		%		1.57		%		1.43		%		1.44		%			1.41		%		1.36		%
Annualized net non-interest expense to average assets (without adjustments)		1.41		%		1.76		%		2.08		%		1.53		%		1.69		%			1.70		%		1.49		%

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

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

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Non-interest income - as adjusted(1)		$	84,669			$	79,360			$	88,665			$	93,688			$	90,624				$	346,382			$	369,012
Total revenue - as adjusted and on a fully tax equivalent basis(1)		$	251,359			$	244,274			$	250,863			$	250,191			$	250,500				$	996,687			$	998,250
Core non-interest income to revenues ratio		33.68		%		32.49		%		35.34		%		37.45		%		36.18		%			34.75		%		36.97		%
Non-interest income to revenues ratio (without adjustments)		33.31		%		33.03		%		35.70		%		37.70		%		36.93		%			34.95		%		38.01		%

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

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

																							Year Ended
																							December 31,
		4Q18				3Q18				2Q18				1Q18				4Q17					2018				2017
Non-interest income - as adjusted(1)		$	84,669			$	79,360			$	88,665			$	93,688			$	90,624				$	346,382			$	369,012
Less Mortgage Banking Segment non-interest income		9,626				9,929				18,937				25,048				22,374					63,540				109,225
Non-interest income - as adjusted, less Mortgage Banking Segment		$	75,043			$	69,431			$	69,728			$	68,640			$	68,250				$	282,842			$	259,787
Total revenue - as adjusted and on a fully tax equivalent basis(1)		$	251,359			$	244,274			$	250,863			$	250,191			$	250,500				$	996,687			$	998,250
Less Mortgage Banking Segment net interest income		7,507				7,685				10,106				10,428				10,611					35,726				41,976
Less Mortgage Banking Segment non-interest income		9,626				9,929				18,937				25,048				22,374					63,540				109,225
Total revenue - as adjusted and on a fully tax equivalent basis, less Mortgage Banking Segment		$	234,226			$	226,660			$	221,820			$	214,715			$	217,515				$	897,421			$	847,049
Core non-interest income to revenues ratio, excluding Mortgage Banking Segment		32.04		%		30.63		%		31.43		%		31.97		%		31.38		%			31.52		%		30.67		%

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

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