MB Financial, Inc. Reports Strong Capital and Liquidity Position, Continued Growth in Core Pre-Tax, Pre-Provision Earnings

MB Financial, Inc. (NASDAQ: MBFI), the holding company for MB Financial Bank, N.A ("the Bank” or "MB Financial Bank”), announced today second quarter results for 2010. The words "MB Financial,” "the Company,” "we,” "our” and "us” refer to MB Financial, Inc. and its consolidated subsidiaries, unless indicated otherwise. We had net income of $12.1 million and net income available to common shareholders of $9.5 million for the second quarter of 2010 compared to net income of $4.3 million and net income available to common shareholders of $1.7 million in the second quarter of 2009, and net income of $947 thousand and a net loss available to common shareholders of $1.6 million for the first quarter of 2010. The results for the second quarter of 2010 include a pre-tax gain, based on preliminary estimates, of $51.0 million from the Broadway Bank FDIC-assisted transaction completed during the quarter, as described below.

Key items for the quarter were as follows:

Continued Growth in Core Pre-Tax, Pre-Provision Earnings Driven by an Increase in Net Interest Margin and Core Other Income:

• Core pre-tax, pre-provision earnings increased 61.3% to $48.4 million, compared to $30.0 million for the second quarter of 2009. Core pre-tax, pre-provision earnings increased $6.4 million, or 15.2%, compared to the first quarter of 2010.
• Net interest income on a fully tax equivalent basis increased to $90.3 million, or by 45.9%, compared to $61.9 million for the second quarter of 2009. Net interest income on a fully tax equivalent basis increased $6.9 million, or 8.3%, compared to the first quarter of 2010.
• The net interest margin on a fully tax equivalent basis increased from 3.21% in the second quarter of 2009 and 3.67% in the first quarter of 2010 to 3.99% in the second quarter of 2010.
• Core other income increased 30.6% to $27.0 million, compared to $20.7 million for the second quarter of 2009. Core other income increased $3.9 million, or 16.9%, compared to the first quarter of 2010.

Credit Quality – Increased Non-Performing Loans, Provision and Charge-offs:

• Our provision for loan losses was $85.0 million for the second quarter of 2010, while our net charge-offs were $67.2 million. For the first quarter of 2010, our provision for loan losses and net charge-offs were $47.2 million and $46.5 million, respectively. For the second quarter of 2009, our provision for loan losses and net charge-offs were $27.1 million and $25.0 million, respectively. Our provision for loan losses reflects deterioration in our loan portfolio primarily due to continued weakness in real estate market conditions, which has resulted in increases in our non-performing loans, net charge-offs and potential problem loans. The provision amount also reflects continuing economic uncertainty.
• Our non-performing loans were $343.8 million or 4.90% of total loans as of June 30, 2010, compared to $323.2 million or 5.04% as of March 31, 2010 and $271.3 million or 4.16% as of December 31, 2009. The percentage of the allowance for loan losses to non-performing loans was 56.89% as of June 30, 2010, 55.01% as of March 31, 2010 and 65.26% as of December 31, 2009.
• Our non-performing assets were $388.0 million or 3.65% of total assets as of June 30, 2010, compared to $365.0 million or 3.58% as of March 31, 2010, and $308.4 million or 2.84% as of December 31, 2009.
• Our allowance for loan losses to total loans was 2.79% as of June 30, 2010, compared to 2.77% as of March 31, 2010, and 2.71% as of December 31, 2009.

For purposes of the second and third bullet points above, non-performing loans exclude loans held for sale and certain purchased credit-impaired loans that we have acquired in FDIC-assisted transactions, a majority of which are subject to loss share arrangements with the FDIC. These purchased credit-impaired loans are accounted for on a pool basis, and the pools are considered to be performing. Additionally, non-performing assets exclude other real estate owned related to assets acquired in FDIC-assisted transactions.

Strong Capital Position:

• MB Financial Bank continues to significantly exceed the "Well-Capitalized” threshold established under the regulations of the Office of the Comptroller of the Currency. At June 30, 2010, MB Financial, Inc.’s total risk-based capital ratio was 16.66%, Tier 1 capital to risk-weighted assets ratio was 14.70%, Tier 1 capital to average asset ratio was 10.39% and Tier 1 common capital to risk-weighted assets was 9.85%, compared with 16.39%, 14.42%, 10.30% and 9.51%, respectively, as of March 31, 2010 and 15.45%, 13.51%, 8.71% and 8.76%, respectively, as of December 31, 2009. As of June 30, 2010, total capital was approximately $477.2 million in excess of the 10% "Well-Capitalized” threshold, compared with $451.7 million as of March 31, 2010.
• Our tangible common equity to tangible assets ratio was 7.16% at June 30, 2010, compared to 7.04%, 6.18% and 5.65% at March 31, 2010, December 31, 2009 and June 30, 2009, respectively. Our tangible common equity to risk-weighted assets ratio was 10.22% at June 30, 2010, compared to 9.73%, 8.83% and 6.79% at March 31, 2010, December 31, 2009 and June 30, 2009, respectively.

Strong Liquidity Position and Improved Deposit Mix:

• Our loan to deposit ratio was 82% as of June 30, 2010, compared to 103% as of June 30, 2009, 75% as of December 31, 2009 and 80% as of March 31, 2010.
• Our ratio of core funding to total funding was 89% at June 30, 2010, compared to 80% at June 30, 2009, 87% at December 31, 2009 and 88% at March 31, 2010.
• Our ratio of CDs to total deposits was 41% at June 30, 2010, compared to 50% at June 30, 2009, 43% at December 31, 2009 and 41% at March 31, 2010.

Broadway Bank and New Century Bank Transactions:

• On April 23, 2010, MB Financial Bank assumed $261 million of deposits of Chicago-based Broadway Bank ("Broadway”) at no premium, and acquired certain assets of Broadway totaling approximately $944 million at a discount of 19.6%, in a loss-sharing transaction facilitated by the FDIC. This transaction generated a pre-tax acquisition related gain of $51.0 million, based on preliminary estimates.
• On April 23, 2010, MB Financial Bank assumed $427 million of deposits of Chicago-based New Century Bank ("New Century”) at no premium, and acquired certain assets of New Century totaling approximately $451 million at a discount of 9.1%, in a loss-sharing transaction facilitated by the FDIC. This transaction generated $2.3 million of goodwill, based on preliminary estimates.

RESULTS OF OPERATIONS

Second Quarter Results

Net Interest Income

Net interest income on a tax equivalent basis increased $6.9 million from the first quarter of 2010 to the second quarter of 2010, and $28.4 million from the second quarter of 2009. Our net interest margin, on fully tax equivalent basis, was 3.99% for the second quarter of 2010 compared to 3.67% in the first quarter of 2010 and 3.21% in the second quarter of 2009, increases of 32 and 78 basis points, respectively. These margin increases were primarily due to a decrease in our average cost of funds caused by downward repricing of certificates of deposit, improved deposit mix and improved credit spreads on renewed loans. Additionally, the increase in the margin from the first quarter of 2010 was impacted by the change in the mix of average assets from investment securities to higher yielding loans. The increase in average loans from the first quarter of 2010 to the second quarter of 2010 was primarily due to our Broadway and New Century transactions.

Our non-performing loans negatively impacted our net interest margin during the second quarter of 2010, the first quarter of 2010 and the second quarter of 2009 by approximately 21 basis points, 18 basis points and 20 basis points, respectively.

See the supplemental net interest margin table for further detail.

Other Income (in thousands):

			Three Months Ended														Six Months Ended
			June 30,			March 31,			December 31,			September 30,		June 30,			June 30,			June 30,
			2010			2010			2009			2009		2009			2010			2009
Core other income:
	Loan service fees		$ 2,042			$ 1,284			$ 1,723			$ 1,565		$ 1,782			$ 3,326			$ 3,625
	Deposit service fees		9,461			8,848			9,311			7,912		6,978			18,309			13,377
	Lease financing, net		5,026			4,620			5,799			3,937		4,473			9,646			8,792
	Brokerage fees		1,129			1,245			1,272			1,004		1,252			2,374			2,330
	Trust and asset management fees		3,536			3,335			3,347			3,169		3,262			6,871			6,077
	Increase in cash surrender value of life insurance		706			671			669			664		670			1,377			1,126
	Other operating income		5,143			3,130			2,663			2,053		2,295			8,273			3,896
Total core other income			27,043			23,133			24,784			20,304		20,712			50,176			39,223
Non-core other income(1)
	Net gain on sale of investment securities		2,304			6,866			239			3		4,093			9,170			13,787
	Net gain (loss) on sale of other assets		(99	)		11			12			12		(38	)		(88	)		(37	)
	Net gain (loss) recognized on other real estate owned(A)		52			(3,299	)		(733	)		25		(444	)		(3,247	)		278
	Acquisition related gains		50,986			-			18,325			10,222		-			50,986			-
	Increase (decrease) in market value of assets held in
	trust for deferred compensation(A)		(39	)		7			300			334		602			(32	)		76
Total non-core other income			53,204			3,585			18,143			10,596		4,213			56,789			14,104
Total other income			$ 80,247			$ 26,718			$ 42,927			$ 30,900		$ 24,925			$ 106,965			$ 53,327

(1) Letters denote the corresponding line items where these non-core other income items reside in the consolidated statements of income as follows: A – Other operating income.

Core other income increased by $3.9 million from the first quarter of 2010 to the second quarter of 2010. Core loan service fees increased primarily due to increases in swap fees, consumer loan fees, and loan prepayment fees. Core deposit service fees increased primarily due to increases in NSF and overdraft fees. Net lease financing increased primarily due to an increase in the sales of third party equipment maintenance to customers. Other operating income increased primarily due to accretion on the FDIC indemnification asset, as a result of our Broadway and New Century transactions. Non-core other income was primarily impacted by a $51.0 million gain recorded on the Broadway transaction, based on preliminary estimates. Additionally, non-core other income was impacted to a lesser extent by a net gain on sale of investment securities of $2.3 million in the second quarter of 2010 compared to a net gain on sale of investment securities of $6.7 million in the first quarter of 2010 and a net gain recognized on other real estate owned ("OREO”) of $52 thousand in the second quarter of 2010 compared with a net loss recognized on OREO of $3.3 million in the first quarter of 2010.

Core other income increased by $11.0 million for the six months ended June 30, 2010 compared to the six months ended June 30, 2009. Core deposit service fees increased primarily due to an increase in commercial deposit fees related to the treasury management business acquired in the Corus transaction during the second half of 2009, and an increase in NSF and overdraft fees related to the FDIC-assisted transactions completed in 2009. Net lease financing increased primarily due to an increase in the sales of third party equipment maintenance to customers. Core trust and asset management fees increased primarily due to an increase in assets under management, as a result of organic growth and an increase in the market value of assets under management. Core other operating income increased primarily due to accretion on the FDIC indemnification asset, as a result of our Broadway and New Century transactions, and partially due to increases in ATM and debit card fees, and treasury management income related to our FDIC-assisted transactions completed during the second half of 2009. As noted above, non-core other income was primarily impacted by a $51.0 million gain recorded on the Broadway transaction, based on preliminary estimates. Additionally, non-core other income was impacted to a lesser extent by a net gain on sale of investment securities of $9.2 million for the six months ended June 30, 2010, compared with a net gain on sale of investment securities of $13.8 million for the six months ended June 30, 2009, and a net loss recognized on other real estate owned of $3.2 million for the six months ended June 30, 2010, compared with a net gain recognized on other real estate owned of $278 thousand for the six months ended June 30, 2009.

Other Expense (in thousands):

			Three Months Ended											Six Months Ended
			June 30,			March 31,		December 31,		September 30,		June 30,		June 30,			June 30,
			2010			2010		2009		2009		2009		2010			2009
Core other expense:
	Salaries and employee benefits		$ 37,143			$ 33,415		$ 33,091		$ 30,862		$ 28,586		$ 70,558			$ 55,991
	Occupancy and equipment expense		8,928			9,179		8,885		7,803		7,151		18,107			14,833
	Computer services expense		3,322			2,528		2,882		2,829		2,013		5,850			4,300
	Advertising and marketing expense		1,639			1,633		683		1,296		892		3,272			2,206
	Professional and legal expense		1,370			1,078		1,465		1,126		1,120		2,448			2,089
	Brokerage fee expense		420			462		553		478		575		882			968
	Telecommunication expense		964			908		1,127		812		744		1,872			1,494
	Other intangibles amortization expense		1,505			1,510		1,650		966		997		3,015			1,875
	FDIC insurance premiums		3,833			3,964		4,099		3,206		2,939		7,797			5,607
	Other operating expenses		7,141			7,228		6,337		5,446		5,039		14,369			10,231
Total core other expense			66,265			61,905		60,772		54,824		50,056		128,170			99,594
Non-core other expense (1)
	FDIC special assessment(A)		-			-		-		-		3,850		-			3,850
	Impairment charges		-			-		-		4,000		-		-			-
	Increase (decrease) in market value of assets held in
	trust for deferred compensation(B)		(39	)		7		300		334		602		(32	)		76
Total non-core other expense			(39	)		7		300		4,334		4,452		(32	)		3,926
Total other expense			$ 66,226			$ 61,912		$ 61,072		$ 59,158		$ 54,508		$ 128,138			$ 103,520

(1) Letters denote the corresponding line items where these non-core other expense items reside in the consolidated statements of income as follows: A – FDIC insurance premiums, B – Salaries and employee benefits.

Core other expense increased $4.4 million from the first quarter of 2010 to the second quarter of 2010. Our Broadway and New Century transactions increased salaries and employee benefits expense, and computer services expense by approximately $1.7 million, and $695 thousand, respectively. Our Broadway and New Century transactions increased total core other expense from the first quarter of 2010 to second quarter of 2010 by approximately $2.9 million. Additionally, salaries and employee benefits expense increased due to one additional day during the second quarter compared to the first quarter, an increase in healthcare expense and officer salary increases at the end of the first quarter.

Core other expense increased $28.6 million for the six months ended June 30, 2010 compared to the six months ended June 30, 2009. The Broadway and New Century FDIC-assisted transactions and the FDIC-assisted transactions completed in 2009 increased salaries and employee benefits expense, occupancy and equipment expense, computer services expense, other intangibles amortization expense, FDIC insurance premiums and other operating expenses by approximately $8.5 million, $3.0 million, $1.6 million, $1.1 million, $1.8 million and $1.2 million, respectively. The Broadway and New Century FDIC-assisted transactions and the FDIC-assisted transactions completed in 2009 increased total core other expense from the six months ended June 30, 2009 to the six months ended June 30, 2010 by approximately $18.6 million. Salaries and employee benefits expense also increased due to an increase in healthcare expense and additional loan workout staff added from June 30, 2009 to June 30, 2010. Additionally, core other operating expenses increased due to OREO and non-performing loan related expense.

LOAN PORTFOLIO

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

			June 30,						March 31,						December 31,						September 30,						June 30,
			2010						2010						2009						2009						2009
						% of						% of						% of						% of						% of
			Amount			Total			Amount			Total			Amount			Total			Amount			Total			Amount			Total
Commercial related credits:
	Commercial loans		$ 1,315,899			19	%		$ 1,378,873			21	%		$ 1,387,476			21	%		$ 1,422,989			22	%		$ 1,411,520			22	%
	Commercial loans collateralized by assign-
	ment of lease payments (lease loans)		992,301			14	%		960,470			15	%		953,452			15	%		881,963			13	%		853,981			13	%
	Commercial real estate		2,378,272			34	%		2,409,078			38	%		2,472,520			38	%		2,446,909			38	%		2,420,227			38	%
	Construction real estate		496,732			7	%		558,615			9	%		594,482			9	%		697,232			11	%		722,399			11	%
Total commercial related credits			5,183,204			74	%		5,307,036			83	%		5,407,930			83	%		5,449,093			84	%		5,408,127			84	%
Other loans:
	Residential real estate		321,665			5	%		302,308			5	%		291,022			4	%		291,889			4	%		273,196			4	%
	Indirect motorcycle		164,269			2	%		158,207			2	%		156,853			2	%		159,273			2	%		160,364			2	%
	Indirect automobile		17,914			0	%		20,437			1	%		23,414			1	%		26,226			1	%		29,341			1	%
	Home equity		389,298			6	%		401,570			6	%		405,439			6	%		408,184			7	%		409,147			6	%
	Consumer loans		73,436			1	%		70,247			1	%		66,293			1	%		66,600			1	%		61,385			1	%
Total other loans			966,582			14	%		952,769			15	%		943,021			14	%		952,172			15	%		933,433			14	%
Gross loans excluding covered loans			6,149,786			88	%		6,259,805			98	%		6,350,951			97	%		6,401,265			99	%		6,341,560			98	%
	Covered loans (1)		869,188			12	%		155,051			2	%		173,596			3	%		91,230			1	%		96,629			2	%
Gross loans			7,018,974			100	%		6,414,856			100	%		6,524,547			100	%		6,492,495			100	%		6,438,189			100	%
	Allowance for loan losses		(195,612	)					(177,787	)					(177,072	)					(189,232	)					(181,356	)
Net loans			$ 6,823,362						$ 6,237,069						$ 6,347,475						$ 6,303,263						$ 6,256,833

(1) Covered loans refer to loans we acquired in FDIC-assisted transactions that are subject to loss-sharing agreements with the FDIC.

The increase in covered loans from March 31, 2010 to June 30, 2010 was due to the Broadway and New Century transactions.

The following table sets forth the composition of commercial real estate loans, excluding covered loans and loans held for sale, as of the dates indicated (dollars in thousands):

					June 30, 2010				March 31, 2010
					Amount	% of Total Loans			Amount	% of Total Loans
Commercial real estate loans:
Owner occupied(1)					$ 523,182	7%			$ 543,359	8%
Multifamily					494,246	7%			493,428	8%
Retail					401,513	6%			408,268	6%
Industrial					342,534	5%			333,327	5%
Healthcare					231,233	3%			226,066	4%
Office					190,079	3%			178,627	3%
Church and school					19,637	1%			19,055	1%
Other					175,848	2%			206,948	3%
Total commercial real estate loans					$ 2,378,272	34%			$ 2,409,078	38%

(1) Includes owner occupied loans for all commercial real estate categories.

The following table sets forth the composition of construction real estate loans by risk category, excluding covered loans and loans held for sale, as of June 30, 2010 (dollars in thousands):

			Risk Category
								Potential Problem and
			Non-Performing					and Other Watch
			Loans (NPLs)					List Loans					Pass Loans					Total
					% of Loan					% of Loan					% of Loan					% of Loan
					Balance					Balance					Balance					Balance
			Amount		Reserved(1)			Amount		Reserved			Amount		Reserved			Amount		Reserved(1)
Residential construction related credits
	Unimproved land		$ -		-			$ 3,156		45	%		$ 3,207		3	%		$ 6,363		23	%
	Improved lots and single family construction		49,924		44	%		14,934		27	%		28,731		3	%		93,589		31	%
	Condominiums		70,598		44	%		11,548		11	%		19,427		3	%		101,573		35	%
	Apartments		9,811		32	%		9,312		11	%		22,068		3	%		41,191		13	%
	Townhomes		5,065		67	%		2,613		19	%		7,074		2	%		14,752		41	%
Total residential construction related credits			135,398		45	%		41,563		20	%		80,507		3	%		257,468		31	%
Commercial construction related credits
	Unimproved land		$ -		-			$ -		-			$ 3,703		2	%		$ 3,703		2	%
	Improved lots and construction		23,997		42	%		6,853		10	%		8,526		2	%		39,376		30	%
	Industrial		1,095		51	%		3,475		5	%		12,116		4	%		16,686		9	%
	Office, retail and hotel		16,041		46	%		45,271		17	%		52,092		2	%		113,404		16	%
	Schools		-		-			-		-			37,284		5	%		37,284		5	%
	Medical		-		-			-		-			28,811		8	%		28,811		8	%
Total commercial construction related credits			41,133		44	%		55,599		15	%		142,532		4	%		239,264		15	%
	Total construction loans		$ 176,531		44	%		$ 97,162		17	%		$ 223,039		3	%		$ 496,732		24	%
	Total construction loans as of March 31, 2010		$ 177,292		39	%		$ 121,743		17	%		$ 259,580		4	%		$ 558,615		20	%

(1) To calculate the percentage of loan balances reserved, partial charge-offs taken on loans with balances outstanding have been added back to both reserves and outstanding balance.

ASSET QUALITY

The following table presents a summary of total performing loans greater than 30 days and less than 90 days past due, excluding loans held for sale and credit-impaired loans that were acquired as part of our FDIC-assisted transactions (see definition of "purchased credit-impaired loans” below), as of the dates indicated (dollar amounts in thousands):

		June 30,		March 31,		December 31,		September 30,		June 30,
		2010		2010		2009		2009		2009
30 - 59 Days Past Due		$ 26,491		$ 17,239		$ 25,331		$ 35,943		$ 15,574
60 - 89 Days Past Due		3,746		1,653		5,523		15,109		4,838
		$ 30,237		$ 18,892		$ 30,854		$ 51,052		$ 20,412

Approximately $13.6 million of performing loans past due are classified as potential problem loans (defined below) as of June 30, 2010, compared to $6.6 million as of March 31, 2010.

The following table presents a summary of non-performing assets, excluding loans held for sale, credit-impaired loans that were acquired as part of our FDIC-assisted transactions (see definition of "purchased credit-impaired loans” below), and OREO that is related to FDIC-assisted transactions, as of the dates indicated (dollar amounts in thousands):

			June 30,			March 31,			December 31,			September 30,			June 30,
			2010			2010			2009			2009			2009
Non-performing loans:
	Non-accrual loans(1)		$ 343,838			$ 323,017			$ 270,839			$ 286,623			$ 227,681
	Loans 90 days or more past due, still accruing interest		-			150			477			-			-
Total non-performing loans			343,838			323,167			271,316			286,623			227,681
OREO			43,987			41,589			36,711			22,612			17,111
Repossessed vehicles			191			250			333			271			203
Total non-performing assets			$ 388,016			$ 365,006			$ 308,360			$ 309,506			$ 244,995
	Total allowance for loan losses		195,612			177,787			177,072			189,232			181,356
Partial charge-offs taken on non-performing loans			142,872			95,960			69,359			46,258			30,995
	Allowance for loan losses, including partial charge-offs		$ 338,484			$ 273,747			$ 246,431			$ 235,490			$ 212,351
Accruing restructured loans			$ 10,940			$ -			$ -			$ -			$ -
Total non-performing loans to total loans			4.90	%		5.04	%		4.16	%		4.41	%		3.54	%
Total non-performing assets to total assets			3.65	%		3.58	%		2.84	%		2.19	%		2.92	%
Allowance for loan losses to non-performing loans			56.89	%		55.01	%		65.26	%		66.02	%		79.65	%
Allowance for loan losses to non-performing loans,
	including partial charge-offs taken		69.55	%		65.31	%		72.34	%		70.74	%		82.09	%

(1) Includes restructured loans on non-accrual status of approximately $6.0 million at June 30, 2010.

At June 30, 2010, the composition of other real estate owned was primarily improved lots and single family construction projects.

The following table represents a summary of OREO in thousands:

								June 30,
								2010
Balance at March 31, 2010								$ 41,589
Transfers in at fair value less estimated costs to sell								4,967
Fair value adjustments								123
Net losses on sales of OREO								52
Cash received upon disposition								(2,744	)
Balance at June 30, 2010								$ 43,987

The following table presents data related to non-performing loans, by dollar amount and category at June 30, 2010 (dollar amounts in thousands):

		Commercial and Lease					Construction Real Estate					Commercial Real Estate					Consumer
		Loans					Loans					Loans					Loans			Total Loans
		Number of					Number of					Number of
		Borrowers		Amount			Borrowers		Amount			Borrowers		Amount			Amount			Amount
$10.0 million or more		1		$ 11,292			3		$ 37,697			-		$ -			$ -			$ 48,989
$5.0 million to $9.9 million		1		8,254			10		68,469			3		17,168			-			93,891
$1.5 million to $4.9 million		6		12,707			14		49,717			14		36,152			1,575			100,151
Under $1.5 million		46		11,732			30		20,648			113		48,668			19,759			100,807
		54		$ 43,985			57		$ 176,531			130		$ 101,988			$ 21,334			$ 343,838
Percentage of individual loan category				1.91	%				35.54	%				4.29	%		2.21	%		4.90	%

The following table presents data related to non-performing loans, by dollar amount and category at March 31, 2010 (dollar amounts in thousands):

		Commercial and Lease					Construction Real Estate					Commercial Real Estate					Consumer
		Loans					Loans					Loans					Loans			Total Loans
		Number of					Number of					Number of
		Borrowers		Amount			Borrowers		Amount			Borrowers		Amount			Amount			Amount
$10.0 million or more		-		$ -			4		$ 59,992			-		$ -			$ -			$ 59,992
$5.0 million to $9.9 million		1		9,026			7		48,003			3		21,259			-			78,288
$1.5 million to $4.9 million		7		15,386			17		51,429			9		24,080			-			90,895
Under $1.5 million		46		13,787			29		17,868			97		41,365			20,972			93,992
		54		$ 38,199			57		$ 177,292			109		$ 86,704			$ 20,972			$ 323,167
Percentage of individual loan category				1.63	%				31.74	%				3.60	%		2.20	%		5.04	%

We define potential problem loans as performing loans rated substandard that do not meet the definition of a non-performing loan (See "Asset Quality” section above for non-performing loans). We recognize potential problem loans carry a higher probability of default and require additional attention by management. The aggregate principal amount of potential problem loans was $321.8 million, or 4.69% of total loans, as of June 30, 2010, compared to $296.4 million, or 4.62% of total loans, as of March 31, 2010 and $233.4 million or 3.58% of total loans, as of December 31, 2009.

"Purchased credit-impaired loans” refer to certain loans acquired in the FDIC-assisted transactions, for which deterioration in credit quality occurred before the Company’s acquisition date. Upon acquisition, these loans were recorded at fair value with interest income to be accreted over the estimated life of the loan when cash flows are reasonably estimable, even if the underlying loans are contractually past due. Acquisition fair value incorporates the Company’s estimate, as of the acquisition date, of credit losses over the remaining life of the portfolio. No allowance for loan losses has been recorded for these loans.

Below is a reconciliation of the activity in our allowance for loan losses for the periods indicated (dollar amounts in thousands):

			Three Months Ended															Six Months Ended
			June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
			2010			2010			2009			2009			2009			2010			2009
Balance at the beginning of period			$ 177,787			$ 177,072			$ 189,232			$ 181,356			$ 179,273			$ 177,072			$ 144,001
Provision for loan losses			85,000			47,200			70,000			45,000			27,100			132,200			116,800
Charge-offs:
	Commercial loans		(30,211	)		(7,363	)		(8,892	)		(20,037	)		(6,636	)		(37,574	)		(17,185	)
	Commercial loans collateralized by assignment
	of lease payments (lease loans)		(917	)		(333	)		(333	)		(269	)		(1,385	)		(1,250	)		(4,805	)
	Commercial real estate loans		(15,002	)		(12,201	)		(11,829	)		(2,006	)		(817	)		(27,203	)		(25,006	)
	Construction real estate		(22,992	)		(25,285	)		(59,435	)		(14,914	)		(14,743	)		(48,277	)		(29,440	)
	Residential real estate		(4	)		(459	)		(650	)		(290	)		(358	)		(463	)		(536	)
	Indirect vehicle		(611	)		(1,117	)		(1,324	)		(937	)		(759	)		(1,728	)		(1,824	)
	Home equity		(1,271	)		(628	)		(1,236	)		(650	)		(953	)		(1,899	)		(1,557	)
	Consumer loans		(202	)		(525	)		(479	)		(358	)		(132	)		(727	)		(287	)
	Total charge-offs		(71,210	)		(47,911	)		(84,178	)		(39,461	)		(25,783	)		(119,121	)		(80,640	)
Recoveries:
	Commercial loans		2,322			724			1,344			71			45			3,046			76
	Commercial loans collateralized by assignment
	of lease payments (lease loans)		96			-			-			-			-			96			-
	Commercial real estate loans		177			186			12			5			5			363			23
	Construction real estate		1,055			113			154			2,042			511			1,168			761
	Residential real estate		9			41			4			9			28			50			31
	Indirect vehicle		344			301			301			194			151			645			262
	Home equity		31			59			9			13			20			90			31
	Consumer loans		1			2			194			3			6			3			11
	Total recoveries		4,035			1,426			2,018			2,337			766			5,461			1,195
Total net charge-offs			(67,175	)		(46,485	)		(82,160	)		(37,124	)		(25,017	)		(113,660	)		(79,445	)
Balance			$ 195,612			$ 177,787			$ 177,072			$ 189,232			$ 181,356			$ 195,612			$ 181,356
Total loans, excluding loans held for sale			$ 7,018,974			$ 6,414,856			$ 6,524,547			$ 6,492,495			$ 6,438,189			$ 7,018,974			$ 6,438,189
Average loans, excluding loans held for sale			$ 6,842,722			$ 6,441,625			$ 6,460,195			$ 6,452,094			$ 6,441,050			$ 6,643,282			$ 6,374,642
Ratio of allowance for loan losses to total loans,
	excluding loans held for sale		2.79	%		2.77	%		2.71	%		2.91	%		2.82	%		2.79	%		2.82	%
Ratio of allowance for loan losses to total loans,
	including partial charge-offs, and excluding loans
	held for sale		4.73	%		4.20	%		3.74	%		3.60	%		3.28	%		4.73	%		3.28	%
Net loan charge-offs to average loans, excluding loans
	held for sale (annualized)		3.94	%		2.93	%		5.05	%		2.28	%		1.56	%		3.45	%		2.51	%

Although management believes that adequate specific and general loan loss allowances have been established, actual losses are dependent upon future events and, as such, further additions to the level of specific and general loan loss allowances may become necessary.

INVESTMENT SECURITIES AVAILABLE FOR SALE

The following table sets forth the fair value, amortized cost, and total unrealized gain (loss) of our investment securities available for sale, by type (in thousands):

		At June 30,		At March 31,		At December 31,			At September 30,			At June 30,
		2010		2010		2009			2009			2009
Fair Value
Government sponsored agencies and enterprises		49,142		55,716		70,239			323,969			51,088
Bank notes issued through the TLGP(1)		-		-		-			1,578,174			-
States and political subdivisions		377,105		375,523		380,234			396,124			394,343
Mortgage-backed securities		1,326,432		1,708,512		2,377,051			1,636,275			428,962
Corporate bonds		6,356		6,356		11,395			56,599			6,370
Equity securities		10,172		4,384		4,314			3,839			3,707
Debt securities issued by foreign governments		-		-		-			-			250
Total fair value		$ 1,769,207		$ 2,150,491		$ 2,843,233			$ 3,994,980			$ 884,720
Amortized cost
Government sponsored agencies and enterprises		48,138		54,672		69,120			322,620			49,753
Bank notes issued through the TLGP(1)		-		-		-			1,578,203			-
States and political subdivisions		359,556		362,453		366,845			372,772			389,041
Mortgage-backed securities		1,301,301		1,696,669		2,382,495			1,625,378			421,172
Corporate bonds		6,356		6,356		11,400			56,655			6,370
Equity securities		9,949		4,318		4,280			3,742			3,668
Debt securities issued by foreign governments		-		-		-			-			250
Total amortized cost		$ 1,725,300		$ 2,124,468		$ 2,834,140			$ 3,959,370			$ 870,254
Unrealized gain (loss)
Government sponsored agencies and enterprises		1,004		1,044		1,119			1,349			1,335
Bank notes issued through the TLGP(1)		-		-		-			(29	)		-
States and political subdivisions		17,549		13,070		13,389			23,352			5,302
Mortgage-backed securities		25,131		11,843		(5,444	)		10,897			7,790
Corporate bonds		-		-		(5	)		(56	)		-
Equity securities		223		66		34			97			39
Debt securities issued by foreign governments		-		-		-			-			-
Total unrealized gain		$ 43,907		$ 26,023		$ 9,093			$ 35,610			$ 14,466

(1) Represents bank notes that are guaranteed by the FDIC under the Temporary Liquidity Guarantee Program (TLGP).

We do not have any meaningful direct or indirect holdings of subprime residential mortgage loans, home equity lines of credit, or any Fannie Mae or Freddie Mac preferred or common equity securities in our investment portfolio. Additionally, more than 99% of our mortgage-backed securities are agency guaranteed.

FUNDING MIX AND LIQUIDITY

The following table shows the composition of our core and wholesale funding resources as of the dates indicated (dollars in thousands):

			June 30,					March 31,					December 31,					September 30,					June 30,
			2010					2010					2009					2009					2009
					% of					% of					% of					% of					% of
			Amount		Total			Amount		Total			Amount		Total			Amount		Total			Amount		Total
Core funding:
	Non-interest bearing deposits		$ 1,604,482		18	%		$ 1,424,746		16	%		$ 1,552,185		16	%		$ 2,925,714		24	%		$ 1,152,274		16	%
	Money market and NOW accounts		2,773,306		30	%		2,716,339		31	%		2,775,468		29	%		3,269,505		26	%		1,531,149		21	%
	Savings accounts		618,199		7	%		589,485		7	%		583,783		6	%		570,974		5	%		447,670		6	%
	Certificates of deposit		2,824,075		31	%		2,737,779		31	%		3,153,310		33	%		3,968,177		32	%		2,383,717		33	%
	Customer repurchase agreements		298,816		3	%		263,663		3	%		223,917		2	%		236,164		2	%		248,494		4	%
Total core funding			8,118,878		89	%		7,732,012		88	%		8,288,663		87	%		10,970,534		89	%		5,763,304		80	%
Wholesale funding:
	Public funds deposits		76,863		1	%		94,084		1	%		90,219		1	%		112,554		1	%		107,752		1	%
	Brokered deposit accounts		500,342		5	%		492,746		5	%		528,311		6	%		583,143		5	%		610,963		8	%
	Other short-term borrowings		3,271		-			-		-			100,000		1	%		200,842		2	%		251,773		4	%
	Long-term borrowings		256,569		3	%		270,090		3	%		281,349		3	%		291,315		2	%		301,691		4	%
	Subordinated debt		50,000		1	%		50,000		1	%		50,000		1	%		50,000		0	%		50,000		1	%
	Junior subordinated notes issued
	to capital trusts		158,605		2	%		158,641		2	%		158,677		2	%		158,712		1	%		158,748		2	%
Total wholesale funding			1,045,650		11	%		1,065,561		12	%		1,208,556		13	%		1,396,566		11	%		1,480,927		20	%
	Total funding		$ 9,164,528		100	%		$ 8,797,573		100	%		$ 9,497,219		100	%		$ 12,367,100		100	%		$ 7,244,231		100	%

Our liquidity position improved during the second quarter, primarily due to an increase in core funding. Core funding increased by $386.9 million compared to March 31, 2010, and $2.3 billion compared to June 30, 2009. These increases were primarily due to the Broadway and New Century FDIC-assisted transactions and FDIC-assisted transactions completed in the second half of 2009.

FORWARD-LOOKING STATEMENTS

When used in this press release and in reports filed with or furnished to the Securities and Exchange Commission, 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,” "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) expected cost savings, synergies and other benefits from our merger and acquisition activities might not be realized within the anticipated 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; (2) the possibility that the expected benefits of the Broadway Bank, New Century Bank and other FDIC-assisted transactions we previously completed will not be realized, and the possibility that the amount of the gains, if any, we ultimately realize on these transactions will differ materially from any recorded preliminary gains; (3) 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 losses, which could necessitate additional provisions for loan losses, resulting both from loans we originate and loans we acquire from other financial institutions; (4) results of examinations by the Office of Comptroller of Currency and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for loan losses or write-down assets; (5) competitive pressures among depository institutions; (6) interest rate movements and their impact on customer behavior and net interest margin; (7) the impact of repricing and competitors’ pricing initiatives on loan and deposit products; (8) fluctuations in real estate values; (9) the ability to adapt successfully to technological changes to meet customers’ needs and developments in the market place; (10) our ability to realize the residual values of our direct finance, leveraged, and operating leases; (11) our ability to access cost-effective funding; (12) changes in financial markets; (13) changes in economic conditions in general and in the Chicago metropolitan area in particular; (14) the costs, effects and outcomes of litigation; (15) new legislation or regulatory changes, including but not limited to the financial regulatory reform legislation, changes in federal and/or state tax laws or interpretations thereof by taxing authorities, changes in laws, rules or regulations applicable to companies that have participated in the TARP Capital Purchase Program of the U.S. Department of the Treasury and other governmental initiatives affecting the financial services industry; (16) changes in accounting principles, policies or guidelines; (17) our future acquisitions of other depository institutions or lines of business; and (18) 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

MB FINANCIAL, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
As of the dates indicated
(Amounts in thousands, except per share data)
				June 30,			March 31,			December 31,			September 30,			June 30,
				2010			2010			2009			2009			2009
ASSETS
Cash and due from banks				$ 115,450			$ 113,664			$ 136,763			$ 125,010			$ 103,276
Interest earning deposits with banks				262,828			430,366			265,257			2,549,562			13,440
		Total cash and cash equivalents		378,278			544,030			402,020			2,674,572			116,716
Investment securities:
	Securities available for sale, at fair value			1,769,207			2,150,491			2,843,233			3,994,980			884,720
	Non-marketable securities - FHLB and FRB Stock			78,807			70,361			70,361			70,031			66,994
		Total investment securities		1,848,014			2,220,852			2,913,594			4,065,011			951,714
Loans held for sale				-			-			-			6,250			4,008
Loans:
	Total loans excluding covered loans			6,149,786			6,259,805			6,350,951			6,401,265			6,341,560
	Covered loans(1)			869,188			155,051			173,596			91,230			96,629
	Total loans			7,018,974			6,414,856			6,524,547			6,492,495			6,438,189
	Less allowance for loan loss			195,612			177,787			177,072			189,232			181,356
		Net loans		6,823,362			6,237,069			6,347,475			6,303,263			6,256,833
Lease investments, net				143,144			138,929			144,966			135,201			114,570
Premises and equipment, net				180,714			181,394			179,641			178,586			184,129
Cash surrender value of life insurance				123,324			122,618			121,946			121,278			120,614
Goodwill, net				389,336			387,069			387,069			387,069			387,069
Other intangibles, net				34,693			36,198			37,708			39,357			25,996
Other real estate owned				43,987			41,589			36,711			22,612			17,111
Other real estate owned related to FDIC transactions				75,206			24,927			18,759			7,695			1,891
FDIC indemnification asset(1)				296,399			29,332			42,212			31,353			43,162
Other assets				297,339			221,233			233,292			162,965			178,252
		Total assets		$ 10,633,796			$ 10,185,240			$ 10,865,393			$ 14,135,212			$ 8,402,065
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
	Noninterest bearing			$ 1,604,482			$ 1,424,746			$ 1,552,185			$ 2,925,714			$ 1,152,274
	Interest bearing			6,792,785			6,630,433			7,131,091			8,504,353			5,081,251
		Total deposits		8,397,267			8,055,179			8,683,276			11,430,067			6,233,525
Short-term borrowings				302,087			263,663			323,917			437,004			500,267
Long-term borrowings				306,569			320,090			331,349			341,315			351,691
Junior subordinated notes issued to capital trusts				158,605			158,641			158,677			158,712			158,748
Investment securities purchased but not yet settled				-			-			-			348,632			-
Accrued expenses and other liabilities				131,460			95,189			116,994			147,605			108,451
		Total liabilities		9,295,988			8,892,762			9,614,213			12,863,335			7,352,682
Stockholders' Equity
Preferred stock				193,809			193,665			193,522			193,381			193,242
Common stock				538			527			511			507			375
Additional paid-in capital				714,882			689,353			656,595			648,230			447,770
Retained earnings				401,887			392,931			395,170			408,048			419,373
Accumulated other comprehensive income				26,782			15,874			5,546			21,723			8,824
Treasury stock				(2,632	)		(2,423	)		(2,715	)		(2,603	)		(22,795	)
		Controlling interest stockholders' equity		1,335,266			1,289,927			1,248,629			1,269,286			1,046,789
Noncontrolling interest				2,542			2,551			2,551			2,591			2,594
		Total stockholders' equity		1,337,808			1,292,478			1,251,180			1,271,877			1,049,383
Total liabilities and stockholders' equity				$ 10,633,796			$ 10,185,240			$ 10,865,393			$ 14,135,212			$ 8,402,065

(1) "Covered loans” and "FDIC indemnification asset” refer to assets MB Financial Bank acquired in loss-share transactions facilitated by the FDIC. The "FDIC indemnification asset” represents the present value of the amounts the Company expects MB Financial Bank to collect from the FDIC pursuant to the loss-share agreements.

MB FINANCIAL, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)(Unaudited)
				Three months ended															Six months ended
				June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
				2010			2010			2009			2009			2009			2010			2009
Interest income:
	Loans			$ 95,689			$ 82,387			$ 84,015			$ 82,820			$ 82,941			$ 178,076			$ 164,435
	Investment securities available for sale:
		Taxable		12,154			19,966			22,039			6,444			6,978			32,120			17,294
		Nontaxable		3,403			3,428			3,498			3,585			3,796			6,831			7,671
	Federal funds sold			-			2			-			-			-			2			-
	Other interest bearing accounts			185			91			698			760			149			276			279
		Total interest income		111,431			105,874			110,250			93,609			93,864			217,305			189,679
Interest expense:
	Deposits			20,283			21,372			31,396			27,662			28,977			41,655			62,556
	Short-term borrowings			264			345			1,142			1,222			1,256			609			2,802
	Long-term borrowings & junior subordinated notes			3,213			3,339			3,511			3,791			4,242			6,552			8,904
		Total interest expense		23,760			25,056			36,049			32,675			34,475			48,816			74,262
Net interest income				87,671			80,818			74,201			60,934			59,389			168,489			115,417
Provision for loan losses				85,000			47,200			70,000			45,000			27,100			132,200			116,800
Net interest income (loss) after provision for loan losses				2,671			33,618			4,201			15,934			32,289			36,289			(1,383	)
Other income:
	Loan service fees			2,042			1,284			1,723			1,565			1,782			3,326			3,625
	Deposit service fees			9,461			8,848			9,311			7,912			6,978			18,309			13,377
	Lease financing, net			5,026			4,620			5,799			3,937			4,473			9,646			8,792
	Brokerage fees			1,129			1,245			1,272			1,004			1,252			2,374			2,330
	Trust & asset management fees			3,536			3,335			3,347			3,169			3,262			6,871			6,077
	Net gain on sale of investment securities			2,304			6,866			239			3			4,093			9,170			13,787
	Increase in cash surrender value of life insurance			706			671			669			664			670			1,377			1,126
	Net gain (loss) on sale of other assets			(99	)		11			12			12			(38	)		(88	)		(37	)
	Acquisition related gains			50,986			-			18,325			10,222			-			50,986			-
	Other operating income			5,156			(162	)		2,230			2,412			2,453			4,994			4,250
	Total other income			80,247			26,718			42,927			30,900			24,925			106,965			53,327
Other expense:
	Salaries & employee benefits			37,104			33,422			33,391			31,196			29,188			70,526			56,067
	Occupancy & equipment expense			8,928			9,179			8,885			7,803			7,151			18,107			14,833
	Computer services expense			3,322			2,528			2,882			2,829			2,013			5,850			4,300
	Advertising & marketing expense			1,639			1,633			683			1,296			892			3,272			2,206
	Professional & legal expense			1,370			1,078			1,465			1,126			1,120			2,448			2,089
	Brokerage fee expense			420			462			553			478			575			882			968
	Telecommunication expense			964			908			1,127			812			744			1,872			1,494
	Other intangible amortization expense			1,505			1,510			1,650			966			997			3,015			1,875
	FDIC insurance premiums			3,833			3,964			4,099			3,206			6,789			7,797			9,457
	Impairment charges			-			-			-			4,000			-			-			-
	Other operating expenses			7,141			7,228			6,337			5,446			5,039			14,369			10,231
	Total other expense			66,226			61,912			61,072			59,158			54,508			128,138			103,520
Income (loss) before income taxes				16,692			(1,576	)		(13,944	)		(12,324	)		2,706			15,116			(51,576	)
Income tax expense (benefit)				4,600			(2,523	)		(4,164	)		(13,596	)		(1,480	)		2,077			(27,505	)
Income (loss) from continuing operations				12,092			947			(9,780	)		1,272			4,186			13,039			(24,071	)
Income from discontinued operations, net of tax				-			-			-			6,172			129			-			281
Net income (loss)				12,092			947			(9,780	)		7,444			4,315			13,039			(23,790	)
Preferred stock dividends and discount accretion				2,594			2,593			2,591			2,589			2,587			5,187			5,118
		Net income (loss) available to common shareholders		$ 9,498			$ (1,646	)		$ (12,371	)		$ 4,855			$ 1,728			$ 7,852			$ (28,908	)

		Three months ended															Six months ended
		June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
		2010			2010			2009			2009			2009			2010			2009
Common share data:
Basic earnings (loss) per common share from continuing operations		$ 0.23			$ 0.02			$ (0.19	)		$ 0.03			$ 0.12			$ 0.25			$ (0.68	)
Basic earnings per common share from discontinued operations		$ -			$ -			$ -			$ 0.16			$ 0.00			$ -			$ 0.01
Impact of preferred stock dividends on basic earnings (loss) per common share		$ (0.05	)		$ (0.05	)		$ (0.05	)		$ (0.07	)		$ (0.07	)		$ (0.10	)		$ (0.14	)
Basis earnings (loss) per common share		$ 0.18			$ (0.03	)		$ (0.25	)		$ 0.12			$ 0.05			$ 0.15			$ (0.81	)
Diluted earnings (loss) per common share from continuing operations		$ 0.23			$ 0.02			$ (0.19	)		$ 0.03			$ 0.12			$ 0.25			$ (0.68	)
Diluted earnings per common share from discontinued operations		$ -			$ -			$ -			$ 0.16			$ 0.00			$ -			$ 0.01
Impact of preferred stock dividends on diluted earnings (loss) per common share		$ (0.05	)		$ (0.05	)		$ (0.05	)		$ (0.07	)		$ (0.07	)		$ (0.10	)		$ (0.14	)
Diluted earnings (loss) per common share		$ 0.18			$ (0.03	)		$ (0.25	)		$ 0.12			$ 0.05			$ 0.15			$ (0.81	)
Weighted average common shares outstanding		52,702,779			51,264,727			50,279,008			39,104,894			35,726,879			51,987,725			35,316,289
Diluted weighted average common shares outstanding		53,034,426			51,264,727			50,279,008			39,299,168			35,876,483			52,332,142			35,316,289

			Three months ended															Six months ended
			June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
			2010			2010			2009			2009			2009			2010			2009
Performance Ratios:
	Annualized return on average assets		0.46	%		0.04	%		(0.33	%)		0.30	%		0.20	%		0.25	%		(0.55	%)
	Annualized return on average common equity		3.31			(0.61	)		(4.54	)		2.13			0.81			1.41			(6.70	)
	Annualized cash return on average tangible common equity(1)		5.68			(0.40	)		(6.69	)		4.33			2.12			2.79			(11.98	)
	Net interest rate spread		3.78			3.42			2.54			2.51			2.82			3.59			2.75
	Cost of funds(2)		1.04			1.13			1.38			1.50			1.83			1.09			1.97
	Efficiency ratio(3)		56.45			58.11			59.59			65.70			60.89			57.24			62.39
	Annualized net non-interest expense to average assets(4)		1.49			1.52			1.21			1.40			1.35			1.50			1.39
	Core pre-tax pre-provision earnings to risk-weighted assets(5)		2.71			2.41			2.07			1.46			1.81			2.55			1.67
	Net interest margin		3.87			3.55			2.74			2.74			3.08			3.71			2.98
	Tax equivalent effect		0.12			0.12			0.12			0.11			0.13			0.12			0.13
	Net interest margin - fully tax equivalent basis(6)		3.99			3.67			2.86			2.85			3.21			3.83			3.11
Asset Quality Ratios:
	Non-performing loans(7) to total loans		4.90	%		5.04	%		4.16	%		4.41	%		3.54	%		4.90	%		3.54	%
	Non-performing assets(7) to total assets		3.65			3.58			2.84			2.19			2.92			3.65			2.92
	Allowance for loan losses to non-performing loans(7)		56.89			55.01			65.26			66.02			79.65			56.89			79.65
	Allowance for loan losses to non-performing loans,(7)
	including partial charge-offs taken		69.55			65.31			72.34			70.74			82.09			69.55			82.09
	Allowance for loan losses to total loans		2.79			2.77			2.71			2.91			2.82			2.79			2.82
	Net loan charge-offs to average loans (annualized)		3.94			2.93			5.05			2.28			1.56			3.45			2.51
Capital Ratios:
	Tangible equity to tangible assets(8)		9.06	%		9.02	%		8.03	%		6.26	%		8.07	%		9.06	%		8.07	%
	Tangible common equity to risk weighted assets(9)		10.22			9.73			8.83			9.27			6.79			10.22			6.79
	Tangible common equity to tangible assets(10)		7.16			7.04			6.18			4.85			5.65			7.16			5.65
	Book value per common share(11)		$21.27			$20.85			$20.75			$21.48			$23.30			$21.27			$23.30
	Less: goodwill and other intangible assets, net of tax
	benefit, per common share		7.66			7.79			8.07			8.22			10.99			7.66			10.99
	Tangible book value per share(12)		13.61			13.06			12.68			13.26			12.30			13.61			12.30
	Total capital (to risk-weighted assets)		16.66	%		16.39	%		15.45	%		15.76	%		13.89	%		16.66	%		13.89	%
	Tier 1 capital (to risk-weighted assets)		14.70			14.42			13.51			13.80			11.88			14.70			11.88
	Tier 1 capital (to average assets)		10.39			10.30			8.71			10.60			9.55			10.39			9.55
	Tier 1 common capital (to risk-weighted assets)		9.85			9.51			8.76			8.72			6.66			9.85			6.66

(1)		Net cash flow available to common stockholders (net income available to common stockholders, plus other intangibles amortization expense, net of tax benefit) / Average tangible common equity (average common equity less average goodwill and average other intangibles, net of tax benefit).
(2)		Equals total interest expense divided by the sum of average interest bearing liabilities and noninterest bearing deposits.
(3)		Equals total other expense excluding FDIC special assessment and impairment charges divided by the sum of net interest income on a fully tax equivalent basis and total other income less net gains (losses) on securities available for sale, net gains (losses) on sale of other assets, net gains (losses) on other real estate owned, and acquisition related gains.
(4)		Equals total other expense excluding FDIC special assessment and impairment charges less total other income excluding net gains (losses) on securities available for sale, net gain (losses) on sale of other assets, net gains (losses) on other real estate owned, net gains (losses) on other real estate owned, and acquisition related gains divided by average assets.
(5)		Equal net income before taxes excluding loan loss provision expense, FDIC special assessment, impairment charges, net gains (losses) on securities available for sale, net gain (losses) on sale of other assets, and acquisition related gains divided by risk-weighted assets.
(6)		Represents net interest income, on a fully tax equivalent basis assuming a 35% tax rate, as a percentage of average interest earning assets.
(7)		Excludes purchased credit-impaired loans and loans held for sale. Non-performing assets excludes other real estate owned related to FDIC transactions.
(8)		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.
(9)		Equals total ending common stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by total risk weighted assets.
(10)		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.
(11)		Equals total ending common stockholders’ equity divided by common shares outstanding.
(12)		Equals total ending common stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by common shares outstanding.

NON-GAAP FINANCIAL INFORMATION

This press release 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 pre-tax, pre-provision earnings; core pre-tax, pre-provision earnings; net interest income on a fully tax equivalent basis, net interest margin on a fully tax equivalent basis; efficiency ratio, ratio of annualized net non-interest expense to average assets, and ratio of core pre-tax, pre-provision earnings to risk-weighted assets, with net gains and losses on securities available for sale, net gains and losses on sale of other assets, net gains and losses on other real estate owned, and acquisition related gains excluded from the non-interest income components and the FDIC special assessment expense and impairment charges excluded from the non-interest expense components of these ratios; ratios of tangible equity to tangible assets, tangible common equity to risk weighted assets, tangible common equity to tangible assets and Tier 1 common capital to risk-weighted assets; tangible book value per common share; and annualized cash return on average tangible common equity. Our management uses these non-GAAP measures in its analysis of our performance. Management believes that pre-tax, pre-provision earnings are a useful measure in assessing our core operating performance, particularly during times of economic stress. The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income and net interest margin on a fully tax equivalent basis, and accordingly believes that providing these measures may be useful for peer comparison purposes. Management also believes that by excluding net gains and losses on securities available for sale, net gains and losses on sale of other assets, net gains and losses on other real estate owned and acquisition-related gains from the non-interest income component and excluding the FDIC special assessment expense and impairment changes from other non-interest expense of the efficiency ratio, the ratio of annualized net non-interest expense to average assets and the ratio of core pre-tax, pre-provision earnings to risk-weighted assets, these ratios better reflect our core operating performance. In addition, management believes that presenting the ratio of Tier 1 common equity to risk weighted assets is useful for assessing our capital strength and for peer comparison purposes. The other measures exclude the ending balances of acquisition-related goodwill and other intangible assets, net of tax benefit, in determining tangible stockholders’ equity. 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. These disclosures 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.

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

			June 30,		March 31,		December 31,		September 30,		June 30,
			2010		2010		2009		2009		2009
Stockholders' equity - as reported			$ 1,337,808		$ 1,292,478		$ 1,251,180		$ 1,271,877		$ 1,049,383
	Less: goodwill		389,336		387,069		387,069		387,069		387,069
	Less: other intangible, net of tax benefit		22,550		23,529		24,510		25,582		16,897
Tangible equity			$ 925,922		$ 881,880		$ 839,601		$ 859,226		$ 645,417

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

			June 30,		March 31,		December 31,		September 30,		June 30,
			2010		2010		2009		2009		2009
Total assets - as reported			$ 10,633,796		$ 10,185,240		$ 10,865,393		$ 14,135,212		$ 8,402,065
	Less: goodwill		389,336		387,069		387,069		387,069		387,069
	Less: other intangible, net of tax benefit		22,550		23,529		24,510		25,582		16,897
Tangible assets			$ 10,221,910		$ 9,774,642		$ 10,453,814		$ 13,722,561		$ 7,998,099

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

			June 30,		March 31,		December 31,		September 30,		June 30,
			2010		2010		2009		2009		2009
Common stockholders' equity - as reported			$ 1,143,999		$ 1,098,813		$ 1,057,658		$ 1,078,496		$ 856,141
	Less: goodwill		389,336		387,069		387,069		387,069		387,069
	Less: other intangible, net of tax benefit		22,550		23,529		24,510		25,582		16,897
Tangible common equity			$ 732,113		$ 688,215		$ 646,079		$ 665,845		$ 452,175

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

			Three months ended										Six months ended
			June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
			2010		2010		2009		2009		2009		2010		2009
Average common stockholders' equity - as reported			$ 1,150,440		$ 1,089,859		$ 1,081,794		$ 905,897		$ 853,782		$ 1,120,317		$ 870,155
	Less: average goodwill		387,816		387,069		387,069		387,069		387,069		387,445		387,069
	Less: average other intangible assets,
	net of tax benefit		22,905		23,892		25,128		16,630		17,186		23,396		17,032
Average tangible common equity			$ 739,719		$ 678,898		$ 669,597		$ 502,198		$ 449,527		$ 709,476		$ 466,054

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

		Three months ended												Six months ended
		June 30,		March 31,			December 31,			September 30,		June 30,		June 30,		June 30,
		2010		2010			2009			2009		2009		2010		2009
Net (loss) income available to common
shareholders - as reported		$ 9,498		$ (1,646	)		$ (12,371	)		$ 4,855		$ 1,728		$ 7,852		$ (28,908	)
Add: other intangible amortization
expense, net of tax benefit		978		982			1,073			628		648		1,960		1,219
Net cash flow available to common shareholders		$10,476		$ (664	)		$ (11,299	)		$ 5,483		$ 2,376		$ 9,812		$ (27,689	)

Efficiency Ratio Calculation (Dollars in Thousands)

		Three months ended															Six months ended
		June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
		2010			2010			2009			2009			2009			2010			2009
Non-interest expense		$ 66,226			$ 61,912			$ 61,072			$ 59,158			$ 54,508			$ 128,138			$ 103,520
Adjustment for FDIC special assessment		-			-			-			-			3,850			-			3,850
Adjustment for impairment charges		-			-			-			4,000			-			-			-
Non-interest expense - as adjusted		$ 66,226			$ 61,912			$ 61,072			$ 55,158			$ 50,658			$ 128,138			$ 99,670
Net interest income		$ 87,671			$ 80,818			$ 74,201			$ 60,934			$ 59,389			$ 168,489			$ 115,417
Tax equivalent adjustment		2,642			2,593			3,195			2,383			2,496			5,235			5,047
Net interest income on a fully tax equivalent basis		90,313			83,411			77,396			63,317			61,885			173,724			120,464
Plus other income		80,247			26,718			42,927			30,900			24,925			106,965			53,327
Less net gains (losses) on other real estate owned		52			(3,299	)		(733	)		25			(444	)		(3,247	)		278
Less net gains on securities available for sale		2,304			6,866			239			3			4,093			9,170			13,787
Less net gains (losses) on sale of other assets		(99	)		11			12			12			(38	)		(88	)		(37	)
Less acquisition related gains		50,986			-			18,325			10,222			-			50,986			-
Net interest income plus non-interest income -
as adjusted		$ 117,317			$ 106,551			$ 102,480			$ 83,955			$ 83,199			$ 223,868			$ 159,763
Efficiency ratio		56.45	%		58.11	%		59.59	%		65.70	%		60.89	%		57.24	%		62.39	%
Efficiency ratio (without adjustments)		39.44	%		57.57	%		52.14	%		64.42	%		64.65	%		46.52	%		61.35	%

Annualized Net Non-interest Expense to Average Assets Calculation (Dollars in Thousands)

		Three months ended															Six months ended
		June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
		2010			2010			2009			2009			2009			2010			2009
Non-interest expense		$ 66,226			$ 61,912			$ 61,072			$ 59,158			$ 54,508			$ 128,138			$ 103,520
Adjustment for FDIC special assessment		-			-			-			-			3,850			-			3,850
Adjustment for impairment charges		-			-			-			4,000			-			-			-
Non-interest expense - as adjusted		66,226			61,912			61,072			55,158			50,658			128,138			99,670
Other income		80,247			26,718			42,927			30,900			24,925			106,965			53,327
Less net gains on securities available for sale		2,304			6,866			239			3			4,093			9,170			13,787
Less net gains (loss) on sale of other assets		(99	)		11			12			12			(38	)		(88	)		(37	)
Less net gains (loss) on other real estate owned		52			(3,299	)		(733	)		25			(444	)		(3,247	)		278
Less acquisition related gains		50,986			-			18,325			10,222			-			50,986			-
Other income - as adjusted		27,004			23,140			25,084			20,638			21,314			50,144			39,299
Net non-interest expense		$ 39,222			$ 38,772			$ 35,988			$ 34,520			$ 29,344			$ 77,994			$ 60,371
Average assets		10,584,721			10,349,664			11,786,792			9,795,125			8,701,857			10,467,843			8,746,816
Annualized net non-interest expense to average assets		1.49	%		1.52	%		1.21	%		1.40	%		1.35	%		1.50	%		1.39	%
Annualized net non-interest expense to average assets
(without adjustments)		-0.53	%		1.38	%		0.61	%		1.14	%		1.36	%		0.41	%		1.16	%

Core Pre-Tax, Pre-Provision Earnings

		Three months ended															Six months ended
		June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
		2010			2010			2009			2009			2009			2010			2009
Income (loss) before income taxes		$ 16,692			$ (1,576	)		$ (13,944	)		$ (12,324	)		$ 2,706			$ 15,116			$ (51,576	)
Provision for loan losses		85,000			47,200			70,000			45,000			27,100			132,200			116,800
Pre-tax, pre-provision earnings		101,692			45,624			56,056			32,676			29,806			147,316			65,224
Non-core other income
Net gains on sale of investment securities		2,304			6,866			239			3			4,093			9,170			13,787
Net gain (loss) on sale of other assets		(99	)		11			12			12			(38	)		(88	)		(37	)
Net gain (loss) on other real estate owned		52			(3,299	)		(733	)		25			(444	)		(3,247	)		278
Acquisition related gains		50,986			-			18,325			10,222			-			50,986			-
Total non-core other income		53,243			3,578			17,843			10,262			3,611			56,821			14,028
Non-core other expense
FDIC special assessment		-			-			-			-			3,850			-			3,850
Impairment charges		-			-			-			4,000			-			-			-
Total non-core other expense		-			-			-			4,000			3,850			-			3,850
Core pre-tax, pre-provision earnings		$ 48,449			$ 42,046			$ 38,213			$ 26,414			$ 30,045			$ 90,495			$ 55,046
Risk-weighted assets		7,164,096			7,074,274			7,315,068			7,186,343			6,657,692			7,164,096			6,657,692
Annualized pre-tax, pre-provision earnings to risk-
weighted assets		2.71	%		2.41	%		2.07	%		1.46	%		1.81	%		2.55	%		1.67	%
Annualized pre-tax, pre-provision earnings to risk-
weighted assets (without adjustments)		5.69	%		2.62	%		3.04	%		1.80	%		1.80	%		4.15	%		1.98	%

A reconciliation of net interest margin on a fully tax equivalent basis to net interest margin is 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 Ratios” table.

NET INTEREST MARGIN

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

				Three Months Ended June 30,														Three Months Ended March 31,
				2010							2009							2010
				Average				Yield/			Average				Yield/			Average				Yield/
				Balance		Interest		Rate			Balance		Interest		Rate			Balance		Interest		Rate
Interest Earning Assets:
Loans (1) (2) (3):
Commercial related credits
	Commercial			$ 1,381,828		$ 17,185		4.99	%		$ 1,454,599		$ 17,158		4.73	%		$ 1,365,969		$ 16,950		5.03	%
	Commercial loans collateralized by assignment
		of lease payments		980,959		15,207		6.20			812,494		12,661		6.23			936,150		14,232		6.08
	Real estate commercial			2,392,791		31,993		5.29			2,373,304		32,028		5.34			2,439,104		32,563		5.34
	Real estate construction			549,545		4,366		3.14			771,269		7,100		3.64			596,076		4,798		3.22
Total commercial related credits				5,305,123		68,751		5.13			5,411,666		68,947		5.04			5,337,299		68,543		5.14
Other loans
	Real estate residential			307,864		4,343		5.64			279,863		3,938		5.63			296,037		3,886		5.25
	Home equity			398,028		4,467		4.50			410,626		4,508		4.40			403,673		4,332		4.35
	Indirect			181,140		3,288		7.28			190,010		3,210		6.78			178,981		3,052		6.92
	Consumer loans			60,439		526		3.49			56,246		576		4.11			59,046		550		3.78
Total other loans				947,471		12,624		5.34			936,745		12,232		5.24			937,737		11,820		5.11
	Total loans, excluding covered loans			6,252,594		81,375		5.22			6,348,411		81,179		5.13			6,275,036		80,363		5.19
	Covered loans			590,128		15,123		10.28			92,639		2,213		9.58			166,589		2,771		6.75
	Total loans			6,842,722		96,498		5.66			6,441,050		83,392		5.19			6,441,625		83,134		5.23
Taxable investment securities				1,633,167		12,154		2.98			695,449		6,978		4.01			2,300,072		19,966		3.47
Investment securities exempt from federal income taxes (3)				358,192		5,236		5.78			405,748		5,840		5.69			360,658		5,274		5.85
Federal funds sold				-		-		0.00			-		-		-			1,428		2		0.56
Other interest bearing deposits				252,262		185		0.29			197,218		149		0.30			124,301		91		0.30
	Total interest earning assets			$ 9,086,343		$ 114,073		5.04			$ 7,739,465		$ 96,359		4.99			$ 9,228,084		$ 108,467		4.77
Non-interest earning assets				1,498,378							961,501							1,121,580
	Total assets			$ 10,584,721							$ 8,700,966							$ 10,349,664
Interest Bearing Liabilities:
Core funding:
	Money market and NOW accounts			$ 2,745,286		$ 3,905		0.57	%		$ 1,691,868		$ 3,841		0.91	%		$ 2,708,718		$ 3,629		0.54	%
	Savings accounts			609,378		487		0.32			447,392		461		0.41			585,628		450		0.31
	Certificate of deposit			2,870,090		11,012		1.54			2,488,905		17,333		2.79			2,881,819		12,441		1.75
	Customer repurchase agreements			270,506		253		0.38			277,896		337		0.49			231,900		245		0.43
Total core funding				6,495,260		15,657		0.97			4,906,061		21,972		1.80			6,408,065		16,765		1.06
Whole sale funding:
	Public funds			103,282		157		0.61			133,362		513		1.54			102,249		187		0.74
	Brokered accounts (includes fee expense)			502,638		4,723		3.77			727,487		6,829		3.77			495,726		4,665		3.82
	Other short-term borrowings			2,152		10		1.86			202,137		919		1.82			21,538		100		1.88
	Long-term borrowings			471,316		3,213		2.70			514,810		4,242		3.26			483,937		3,339		2.76
Total wholesale funding				1,079,388		8,103		3.01			1,577,796		12,503		3.18			1,103,450		8,291		3.05
Total interest bearing liabilities				$ 7,574,648		$ 23,760		1.26			$ 6,483,857		$ 34,475		2.13			$ 7,511,515		$ 25,056		1.35
Non-interest bearing deposits				1,552,813							1,074,567							1,454,263
Other non-interest bearing liabilities				113,097							95,592							100,454
Stockholders' equity				1,344,163							1,046,950							1,283,432
		Total liabilities and stockholders' equity		$ 10,584,721							$ 8,700,966							$ 10,349,664
		Net interest income/interest rate spread (4)				$ 90,313		3.78	%				$ 61,884		2.86	%				$ 83,411		3.42	%
		Taxable equivalent adjustment				2,642							2,495							2,593
		Net interest income, as reported				$ 87,671							$ 59,389							$ 80,818
		Net interest margin (5)						3.87	%						3.08	%						3.55	%
		Tax equivalent effect						0.12	%						0.13	%						0.12	%
		Net interest margin on a fully equivalent basis (5)						3.99	%						3.21	%						3.67	%

(1)		Non-accrual loans are included in average loans.
(2)		Interest income includes amortization of deferred loan origination fees of $1.5 million, $1.4 million and $1.0 million for the three months ended June 30, 2010, June 30, 2009, and March 31, 2010, respectively.
(3)		Non-taxable loan and investment income is presented on a fully tax equivalent basis assuming a 35% tax rate.
(4)		Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
(5)		Net interest margin represents net interest income as a percentage of average interest earning assets.

The following table represents, for the period 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):

				Six Months Ended June 30,
				2010									2009
				Average						Yield/			Average						Yield/
				Balance			Interest			Rate			Balance			Interest			Rate
Interest Earning Assets:
Loans (1) (2) (3):
Commercial related credits
	Commercial			$	1,373,943		$	34,135		5.01	%		$	1,485,446		$	35,444		4.81	%
	Commercial loans collateralized by assignment
		of lease payments			958,678			29,439		6.14				746,272			23,536		6.31
	Real estate commercial				2,415,820			64,556		5.31				2,367,838			63,988		5.37
	Real estate construction				572,682			9,164		3.18				770,636			15,036		3.88
Total commercial related credits					5,321,123			137,294		5.13				5,370,192			138,004		5.11
Other loans
	Real estate residential				301,983			8,229		5.45				286,202			8,059		5.63
	Home equity				400,835			8,799		4.43				408,207			8,925		4.41
	Indirect				180,067			6,340		7.10				189,493			6,337		6.74
	Consumer loans				59,746			1,076		3.63				58,168			1,184		4.10
Total other loans					942,631			24,444		5.23				942,070			24,505		5.25
	Total loans, excluding covered loans				6,263,754			161,738		5.21				6,312,262			162,509		5.19
	Covered loans				379,528			17,894		9.51				62,380			2,842		9.19
	Total loans				6,643,282			179,632		5.45				6,374,642			165,351		5.23
Taxable investment securities					1,964,777			32,120		3.27				819,338			17,294		4.22
Investment securities exempt from federal income taxes (3)					359,418			10,510		5.82				408,981			11,802		5.74
Federal funds sold					710			2		0.56				-			-		-
Other interest bearing deposits					188,636			276		0.30				196,167			279		0.29
	Total interest earning assets			$	9,156,823		$	222,540		4.90			$	7,799,128		$	194,726		5.03
Non-interest earning assets					1,311,020									946,738
	Total assets			$	10,467,843								$	8,745,866
Interest Bearing Liabilities:
Core funding:
	Money market and NOW accounts			$	2,727,104		$	7,534		0.56	%		$	1,606,161		$	7,789		0.98	%
	Savings accounts				597,569			937		0.32				420,678			775		0.37
	Certificate of deposit				2,875,922			23,453		1.64				2,567,778			37,769		2.97
	Customer repurchase agreements				251,310			498		0.40				272,697			586		0.43
Total core funding					6,451,905			32,422		1.01				4,867,314			46,919		1.94
Whole sale funding:
	Public funds				102,768			344		0.68				166,448			1,456		1.76
	Brokered accounts (includes fee expense)				499,201			9,388		3.79				779,750			14,767		3.82
	Other short-term borrowings				11,792			110		1.88				233,611			2,216		1.91
	Long-term borrowings				477,592			6,552		2.73				525,440			8,904		3.37
Total wholesale funding					1,091,353			16,394		3.03				1,705,249			27,343		3.23
Total interest bearing liabilities				$	7,543,258		$	48,816		1.31			$	6,572,563		$	74,262		2.28
Non-interest bearing deposits					1,503,810									1,017,683
Other non-interest bearing liabilities					106,810									93,419
Stockholders' equity					1,313,965									1,062,201
		Total liabilities and stockholders' equity		$	10,467,843								$	8,745,866
		Net interest income/interest rate spread (4)					$	173,724		3.59	%					$	120,464		2.75	%
		Taxable equivalent adjustment						5,235									5,047
		Net interest income, as reported					$	168,489								$	115,417
		Net interest margin (5)								3.71	%								2.98	%
		Tax equivalent effect								0.12	%								0.13	%
		Net interest margin on a fully equivalent basis (5)								3.83	%								3.11	%

(1)		Non-accrual loans are included in average loans.
(2)		Interest income includes amortization of deferred loan origination fees of $2.6 million and $2.7 million for the six months ended June 30, 2010, and June 30, 2009, respectively.
(3)		Non-taxable loan and investment income is presented on a fully tax equivalent basis assuming a 35% tax rate.
(4)		Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
(5)		Net interest margin represents net interest income as a percentage of average interest earning assets.